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Meeting of 2000 -09 -14 City Council Minutes
Mayor Pro Tem Anne Monaghan called the September 14, 2000 meeting to order at 7 P.M. with
the following members of Council present: James G. Burke, Jr., Jack Youmans, Shirley Sessions,
Pamela 0' Brien and Mallory Pearce. City Attorney Edward Hughes and City Manager Thomas Cannon,
Jr. were present. Mayor Walter Parker was out of town on city business.
The Pledge of Allegiance was recited after the invocation given by the Reverend Lee Bennett.
Chere Peterson gave a slide presentation on pervious concrete that would help with the
stormwater drainage problem that we have on Tybee. Peterson said that this is considered thirsty
concrete and Petrus is the only company east of the Mississippi that is certified in this area.
Jeffrey Schroeder handed out information on the drainage problems from Silver Avenue to 17th
Street on the Strand. Schroeder said that the run off is doing severe damage to the property. Schroeder
said that at an earlier meeting that he challenged Council to see if the drainage was correct according to
the plans for the South Beach Condos, stating that he does not blame the developers but the City. Burke
asked if there was not a new storm drain going through his property on the westside. Schroeder said that
all new construction is at a higher elevation than the older homes in the area. 0' Brien asked if this area
is on the priority list for drainage. Bill Lovett of Hussey, Gay, Bell and DeYoung said that the City
Manager has asked them to study the area and it was not on the original list.
Cullen Chambers announced that the 4h Annual Tybee Days will be October 14 from 10 am until
sunset. Chambers said that there will be new groups, local artists and James Adams will be present with
his newly released book on the history of Tybee, and the Lighthouse cookbook will be on sale.
Chambers said that this will be low impact and asked permission to use the stage owned by Tybee.
Monaghan told Chambers to talk with the City Manager about their needs.
Sam Adams addressed Council on the issue of the lawsuit by Penn Myrick because the City
would not grant him a minor subdivision on his property at 18th Place. Adams stated that Myrick' s
petition has been denied twice by Council and is before Council again for the third time tonight. Adams
said that the suit named the City, 4 Councilmembers and about 7 citizens who spoke against the
subdivision. Adams read parts of the Georgia Law concerning slap suits. Adams also stated that it is a
persons constitutional right to speak his mind according to the 1St amendment.
Henry Levy presented Council with a proposal for a tollbooth east of the turn off for DAV and
Spanish Hammock.
Kathryn Williams said that the third Saturday in October has been set aside by the Tybee Skaters
Association to work on the ramps for the park. Williams said that they will meet with Bargeron and
Cannon on this issue. Burke said that in February or March Council approved having a survey of
Memorial Park done. Williams said that has been completed, Ro Fripp had it contracted out and Raamy
Brown has the survey. Youmans said that if it has come in that nobody has decided what to so with it.
0' Brien stated that Council did approve the location at the May meeting. Cannon said that a variety of
other buildings need to be considered and placed on the plan. 0' Brien asked that Cannon follow up on
concerns. Dennis stated that this is phase one and that the half pike can be moved, not the slab of
concrete. Levy said that this did not come before the Planning Commission for recommendations but
that the drainage and parking need to be considered. Pearce asked Cannon for suggestions. Cannon
replied that this is a ghost of Christmas past. Cannon said that this is about the only open space the City
has and that a comprehensive plan is needed before we start filling in the park. Cannon said that he has a
rough outline of the half pike and slab that Council approved and since it has been approved then he as a
staff member will carry it out. Youmans said as long as it does not cost the City any money. 0' Brien
said that the City and the YMCA have both allotted $10,000 each and that the children have gathered
about 2 thousand dollars themselves. Williams said that the material will cost between 8 to 10 thousand
dollars. Williams announced the Beach Sweep is on October 7th at 10 AM at the pier.
Richard Kautzman addressed Council on his drainage /flooding problem because of the Jacob and
the Solomon projects in his area. Kautzman said that he has been flooded twice since the last Council
meeting. Kautzman asked why the ordinances can not be enforced? Kautzman stated that the Planning
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department could not find the drainage plans when he asked to see them. Kautzman said that thanks to
Tom Cannon he is finally making headway. Cannon said a stop work order has been placed on the job
and that the only work that can be done is drainage. Kautzman also told Council that he has no water
pressure at his home. Youmans said that the fire department checks plugs and that the pressure was 62 so
there might be a blockage further along in the line. Sister Mercedes asked if Jacobs is being made to
follow what Council approved and if so who inspects the work in progress? Cannon answered that the
City contracts with Chatham County Inspections Department. Monaghan said that the research done by
Cannon is excellent. Cannon said that the storm event was worse because of the 4 to 5 inches in rainfall,
the Northeasterner came during the full tide. Cannon said that the environment works against the older
houses. Cannon said that staff not doing their job, being overlooked at the time could have caused the
problem, but City Council approved the project. Cannon said that the population is expected to be
estimated at 4 thousand with the 2000 Census, new construction has impact, FEMA allows reduction on
insurance if base level is over elevation, the land on Tybee has skyrocketed, the island has been
discovered, ditches have been filled in all over the island, bulkheads on certain properties have changed
the flow of the water runoff. Cannon said that the infrastructure is not adequate for the development and
growth. Cannon told Council that he has been interviewing for a professional zoning administrator and
that this will be one of his most important appointments. Cannon stated that the citizens can help by not
filling in ditches on their property, put in maintenance swells, and see how you can divert the water to the
City drains. Cannon said that you can also bag grass and leaves so that they will not end up clogging the
drains. Cannon stated that water creates fear and he understands the situations are stressful. Working
together we can deal with the problems.
Mayor Pro Tem Monaghan read a proclamation for Undoing Racism Day for September 20th.
Monaghan opened the public hearing for a minor subdivision of one lot into two by Penn
Myrick for Lot 3 18th Place PIN 4- 9 -9 -31. Hughes said that this is the third public hearing on this
petition and rather than have us repeat all that has been said before we can incorporate from earlier
meeting. Hughes also stated that the City is still in litigation so this is a little peculiar. Attorney Thomas
Mahoney said he concurs and agrees with the City Attorney. Mahoney said that the city has a copy of
the transcript from the last meeting. Mahoney gave a short history on the petition for the subdivision that
is before Council. Mahoney asked that only Council address the minor subdivision of the lot tonight.
Mahoney stated that the drainage has been addressed. Mahoney requested that Council approve this
petition. Bill Nicholson gave the history of the drainage plan from the engineering side. The original
plan did not meet requirements. Came down Monday after the Council meeting and met with Public
Works Director Pye on location and determined that the drainage plans met the ordinance requirements.
It has on site retention. Mahoney quoted LDC Section 5 -150 a and c. Mahoney said that the square feet
needed for the minor subdivision is adequate. Citizens speaking against the project were Sam Adams,
Todd Lanier, Jeffrey Schroeder, Amy Lanier, Jeanne Hutton, and Ed Demarjian.
Mayor Pro Tem Monaghan opened the meeting for business legally presented. Youmans said the
only issue before Council is the petition for a minor subdivision for Myrick and he moves for
approval. Burke seconded. Vote by Council was 2 in favor (Youmans and Burke); 4 opposed
(Sessions, Monaghan, 0' Brien and Pearce). Sessions moved to deny the petition. 0' Brien seconded.
Vote by Council was 4 in favor of denial (Sessions, Monaghan, 0' Brien and Pearce); 2 opposed
(Youmans and Burke).
In a unanimous vote by Council the August 8 and 14 minutes were accepted as presented.
Motioned by Pearce and seconded by 0' Brien.
Pearce moved to approve the skatepark start up date of October 7the with the city contributing
a portion of the funds allotted for this project. 0' Brien seconded. Vote by Council was unanimous.
After discussion on the American Legions request for an alcohol beverage license Youmans
moved to approve the license and to waive the normal fee. 0' Brien seconded. Sessions asked Cannon
to look into other non - profit organizations. Pearce said it would be nice to have a yearly finance
statement turned in to the City. Gene Kendrick said that would be no problem. Kendrick' s will get with
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Cannon to fill in the blank spaces on the application, as he did not know how to answer some of them.
Vote by Council was unanimous.
Pearce moved to adopt the resolution on Tybee having a Community Greenspace Program.
Sessions seconded. Youmans asked if this would enable Tybee to get money form the State. Pearce
answered yes. Youmans stated no money from Tybee. Pearce answered it would depend on the action of
Council, but that this resolution would allow Tybee to get money from the State. Vote by Council was 5
in favor (Burke, Sessions, Monaghan, 0' Brien and Pearce); 1 opposed (Youmans).
Pearce moved to adopt the Intergovernmental Revenue Exchanges to Further the Goals of
the Countywide Community Greenspace Program resolution. Sessions seconded for discussion.
Burke said that the county is looking at the Demure tract and will this mean that the other municipalities
have to contribute. Pearce answered no; this resolution just supports the county. Youmans asked who
made the decision of what city gets the money? Pearce answered that the government committee, Tybee
will be part of the package if approved. Sessions questioned to be considered we must pass the
resolution? Pearce said yes, and Tybee is ahead of the game. Youmans asked where Demure land is
located. Pearce said off Johnny Mercer on Turner' s Rock. Vote by Council was 5 in favor (Burke,
Sessions, Monaghan, 0' Brien and Pearce); 1 opposed (Youmans).
Jean McDowell informed Council that Phase I of the Greenspace Plan is completed.
Monaghan said the information is the Council mailboxes today. Rachel Perkins stated that Chatham has
reserved 20% for greenspace and that Tybee Island has less than that to reserve. Perkins told Council
that there are many ways to maintain greenspace, one option is a maritime forest. Perkins said Tybee is
down to about 6 to 8 acres. A full presentation will be made to Council at the October Council meeting.
Monaghan said that after reading the information that it has opened her eyes to a lot of things. Pearce
moved to approve the report from the Greenspace Committee. Perkins said that it is a working document
for Tybee. Youmans said that this information just came in this afternoon. 0' Brien also agreed about
getting information to Council earlier and she also asked about the Phase II. McDowell answered that
Phase I was to identify property by inventory and then Phase II the planner will design. Perkins the next
phase will rate the property and that a walking tour for Council is being planned for October 10th. Pearce
said that several planners have been interviewed. Monaghan stated that a more detailed report will be
held at the October meeting.
Session moved to appoint William Fricks to a 3 -year term on the Tybee Island Historic
Review Board. Pearce seconded. Vote was unanimous by Council. Session moved and Pearce seconded
the appointment of Jane Coslick to fill the unexpired term of John 0' Neill who resigned. Council
vote was unanimous.
Mayor Pro Tem Monaghan called a ten - minute break. Monaghan reconvened the meeting at 9:12
P.M.
A discussion was held on the Internal Control Audit. Cannon said that he has spoken to
Finance Director Tanya Pye concerning the issues and will speak to Parking Director Frankie Conaway
about the parking recommendations. The purpose of this report is not to say that everybody who touches
money is a crook, just to institute a control system Cannon stated. Some recommendation will be easy to
implement and others could take six months or more. Youmans said that he was not for this report but
now that he has seen it that it is very good information not just for Council but for the City Manager.
Monaghan asked that Cannon give Council updates on how the recommendations are being followed.
The proper communication channel is through the City Manager Monaghan told Council. Youmans said
that the Charter deals with the City Manager and that the City Manager deals with the department heads
and employees. Sessions said that situations that need to be looked into I give to Cannon who in turn
passes along to department heads. What is the next procedure? Cannon answered if a pot hole I pass on
to DPW, expect answer back within 2 to 3 days, but if you happen to run in to a department head you can
ask them for an update on the issue. Sessions said that she would like a 1 page quick review of the
finance statement on a monthly basis. Cannon said that he would ask Ms. Pye for that information, that
we could use a green yellow system. It could be not only for Council but also for any citizen that
inquires about finances. Monaghan said it should be readable and easy to understand. Youmans asked if
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this would be different form what we get now. Cannon said it the headings would be budget, spent,
percentages can review summary in 45 seconds. 0' Brien that she gets and was under the impression that
Council receives a 2 -page summary of the revenues and expenditures. 0' Brien said she would like
Cannon to find out why the water sewer and the general fund do not balance. Burke replied that it could
be that we need to raise the rates. 0' Brien asked why the water sewer revenue was so low. Cannon
stated he would procure this with Ms. Pye.
Mayor Pro Tem Monaghan announced that Senior Accountant Eleanor Barber has achieved
the Level I certification in Finance through the University of Georgia Continuing Education
programs. Monaghan stated that Barber has had to conquer a lot of things and still has accomplished
the training so if you should see her please congratulate her.
Bill Lovett of Hussey, Gay, Bell and DeYoung said that with the four laning of the Tybee Road
from Bull River to Lazaretto that the City should consider requesting DOT to place pipes in the
ground, so that when in the future Tybee has to dispose of their waste water in Savannah the pipes will
already be in place. This could save the City millions of dollars. Lovett said that Tybee runs the risk of
salt -water infiltration. Sessions asked would this mean that Tybee would approve the widening of the
road to 4 lanes. 0' Brien asked what the costs would be to lay the pipes. Lovett answered to get DOT to
include the 3 pipes for Tybee future use. Youmans moved to authorize Lovett to draft a letter
requesting DOT to lay the pipes. Pearce seconded. Vote by Council was 4 in favor (Burke, Youmans,
Monaghan and Pearce); 2 opposed (Sessions and 0' Brien).
Pearce moved to approve the first reading on Section 6 -1 -3 Wellhead Protection. Burke
seconded. Vote by Council was unanimous.
Youmans moved to approve Title 4, Chapter 3 Emergency Management Section 1, 4, 5, 6, 7,
8, 9 and 14 on their first readings. 0' Brien seconded. Vote by Council was unanimous.
Youmans moved to adopt Section 4 -2 -12 Subscription Process on its first reading. Pearce
seconded. Vote by Council was unanimous.
Youmans moved to adopt Section 4-2 -13 Non Subscribers not under agreement on its first
reading. Pearce seconded. Vote by Council was unanimous.
Youmans moved for a budget adjustment by moving $10,800 from 106060.6000 salaries to
106064.6160 contingency to cover the contract for Rowena Fripp as Acting City Manager. Burke
seconded. Vote by Council was unanimous.
Pearce requested that Council hold a work shop with Peter Mayes of DNR EPD, Hussey, Gay,
Bell & DeYoung to assess the nature of the water sewer treatment plant problems and then decide
on action. Lovett said that H, G, B, & DeY will host a dinner at their office with the workshop on
September 28th at 6 P.M.
0' Brien gave an update on the Post Theater, at the present time it is a group of 6 but will get up
to 9 people. A public forum has been scheduled for September 27 at 7 PM in City Hall. 0' Brien read
the mission statement. Youmans asked where the money is coming from for the post office box rent?
0' Brien answered from contributions. Burke asked about ideas for getting money for the purchase. 0'
Brien said that they are looking at uses for the building. Sessions stated that the funding committee won'
t be the same people.
Burke questioned Farmer still serving on the stakeholders committee for the harbor
deepening stating that he was to serve until we had a new manager. It was stated that Farmer chairs the
beach erosion committee. 0' Brien said that Farmer' s agreement has a term limit. Tom Cannon agreed
to speak to Mayor about participation of the Beach Erosion Committee of the SEG. Sessions asked when
it was over. Hughes answered that he thinks some time in October.
Cannon told Council that he has had complaints about cable and has talked with GMA to start
the process. Monaghan said that the franchise expires in 2005.
Pearce moved to authorize Cannon to negotiate the lease with Incode for the software
financial package. Youmans seconded. 0' Brien amended the motion to include Sessions concerns be
addressed and that Hughes review and approves the lease. Youmans seconded. Vote by Council was
unanimous.
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Pearce moved to approve the GMA Master Lease. Youmans seconded. Vote by Council was
unanimous.
After a lengthy discussion on the second reading of the Dune Protection ordinance motioned
for approval by Pearce and seconded for discussion by Session the motion failed. Sallie Keller and
Dennis McNeely both said that DNR oversees this and they have a checklist that is unbelievable. Hughes
again stated that he does not like changes in the ordinances between the first and second readings
especially in the Land Development Codes. 0' Brien said a short-term suggestion is for one line saying "
no building seaward of the DNR jurisdiction line." Monaghan said that Hughes should take language
and form a new ordinance. Hughes said get something on the book where somebody else says where line
is located. Monaghan said there are enough people here to work on a committee. Sessions said she
wants the ordinance to be unanimous by Council. Youmans asked Hughes whether or not this ordinance
is passed if a dune is in the middle of the property it make the property useless. Hughes said the area of
operation changes line and that we need to take one at a time. Pearce said that an ecologist is needed and
that Council should pass and then work on concerns. Sessions said that Pearce has done a lot of work but
once it is passed she agrees that it usually fall by the way side. Pearce said pass on condition that a
committee be set up to work on the ordinance and tweak it. Sessions gain stated that it scares her to
adopt and then change and maybe Council should have a first reading again. Sessions called for the vote.
Council vote was 1 in favor (Pearce); 5 opposed (Burke, Youmans, Sessions, Monaghan and 0' Brien.
0' Brien moved to have the first reading on the simple one line ordinance on Coastal Protection " no
building seaward of the DNR jurisdiction line." , with Hughes and Cannon to recommend a method to
establish a long -term ordinance at the next meeting. Hughes said that it can not be at the next meeting
because of the new procedures that you adopted concerning the Planning Commission. Monaghan said
to do correctly and work out with Hughes. Hughes said that the new version will be to City Hall by
Monday. Vote by Council was 4 in favor (Sessions, Monaghan, 0' Brien and Pearce); 2 opposed
(Burke and Youmans).
Pearce moved to adopt the Land Development ordinance on " as Builts" on its second reading.
Youmans seconded. Vote by Council was unanimous.
0' Brien moved to adopt Section 11 -1 -10 Sleeping on the streets beaches, parks, parking lots
and other public areas on it second reading. Sessions seconded for discussion. Vote by Council was 4
in favor (Sessions, Monaghan, 0' Brien and Pearce); 2 opposed (Burke and Youmans).
Pearce moved to adopt Section 2 -4 -21 Use of City Vehicles (C) by employees on its second
reading. Youmans seconded. Vote by Council was unanimous.
0' Brien moved to adopt Section 3 -1 -11 Levy; Tax Rate (5) Deadline on it second reading.
Pearce seconded. Vote by Council was 4 in favor (Sessions, Monaghan, 0' Brien and Pearce); 2
opposed (Burke and Youmans).
Pearce moved to adjourn the meeting, as there was no further business to come before Council.
Clerk of Council
Mayor ProTem Anne Monaghan
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9.1.14 Proclamation
PROCLAMATION
Undoing Racism Day
Whereas, by Act of Congress of the United States dated July 2, 1964, the Civil Rights Act of 1964 was
adopted banning discrimination because of a person's color, race, national origin, religion or sex; and
Whereas, by Act of Congress of the United States dated December 6, 1865, the 13th Amendment of the
Constitution of the United States was adopted abolishing slavery; and
Whereas, by Act of Congress of the United States dated July 9, 1868, the 14th Amendment of the
constitution of the Unites States was adopted giving all persons born or naturalized in the United States
the right to due process and equal protection under the law; and
Whereas, by resolution of the National Leagues of Cities, we declare racism unjust and advocate equal
rights for all;
Now, Therefore, I Walter W. Parker, Mayor of the City of Tybee Island on behalf of the entire City
Council, do hereby proclaim
September 20, 2000 as "Undoing Racism Day"
in the City of Tybee Island and urge all citizens to join together for the first annual UNDOING RACISM
DAY to reaffirm our commitment to ensure equality and freedom for all people regardless of race,
religion, sexual preference, or gender.
Signed this 14th day of September, 2000.
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9.1.13 Greenspace Resolution
Resolution Adopting the Tybee Island
Community Greenspace Program
Whereas, the State of Georgia has created a Georgia Greenspace Program that provides for the
development and funding of Community Greenspace Programs, and
Whereas, Chatham County has been determined by the Georgia Greenspace Commission to be an eligible
city for participation in the program, and
Whereas, the Georgia Greenspace Program provides for municipal participation through a coordinated
and consolidated program, and
Whereas, the attached Community Greenspace Program document will provide future greenspace for
residents throughout the County and in all Municipalities,
Now, therefore, be it resolved that the City of Tybee Island hereby elects to participate in the Chatham
County Community Greenspace Program and establishes a Community Greenspace Trust Fund to
manage program revenues in accordance with State requirements.
Furthermore, The Tybee Island City Council hereby certifies that the City of Tybee Island has adopted
the Community Greenspace Program described in the report attached to this resolution and by reference
incorporated herein, and that said report sets forth Tybee Island's greenspace protection goal and the
methods and schedule this body intends to use to achieve this goal. The Tybee Island City Council
further certifies that it will diligently pursue the implementation of the program as described therein.
Adopted this 14th Day of September, 2000.
ayor
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Resolution 9.1.15
Resolution
Interngovernmental Revenue Exchanges to Further the Goals of the Countywide Community Greenspace
Program
This agreement is made and entered into this 14th day of September 2000, by and among Chatham
County and all municipalities therein.
WHEREAS, Chatham County is eligible o receive grant funds form the Georgia Greenspace Program and
will submit an application for all such funding and
WHEREAS, Greenspace funds will be available to all jurisdictions within the county that elect to
participate in the consolidated countywide program (in the amount estimated in Table 1 on Page 3 of the
Chatham County Community Greenspace Report); and
WHEREAS, Greenspace funds may be used more effectively when consolidated for targeted
acquisitions;
WHEREAS, the Managers and Administrators have met to review the COmmunity Greenspace Program
and have reviewed and endorsed this process and recommend that their respective governments adopt the
following resolution;
NOW, THEREFORE, be it resolved that Chatham COunty and the Municipalities therein agree as
follows:
1. That the Community Greenspace Program shall permit intergovernmental exchanges of
greenspace program revenues.
2. That such revenues shall be tracked through a five -year Community Greenspace Program budget
that clearly records such debits and credits.
3. That debits for revenue exchanges may be repaid for the current or future SPLOST accounts or
other funds that are designated for greenspace.
4. That FY2001 funds allocated to Chatham County and all participating municipalities shall be
applied to the acquisition of the Demere Tract, which has been identified as the county's highest priority
need and to those municipalities that have submitted a greenspace plan.
5. That Chatham County and all municipalities participating in the Community Greenspace
program hereby agree to request that the Department of Natural Resources disburse all FY2001
greenspace funds designated for Chatham County to the County and to the approved municipalities.
6. That the County shall hold such funds for up to six months from the time they are received,
during which time all municipalities shall submit a prioritized list of sites for acquisition under the
Community Greenspace Program.
7. That prioritized acquisitions shall be incorporated into the five -year Community Greenspace
Program budget so that each participating jurisdiction may see its opportunity to implement its program
objectives.
8. That Chatham County will hold harmless for its share of FY2001 funds any municipality that
becomes a party to this agreement.
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Adopted this 14th day of September, 2000.
Mayor
se
Resolution 9.1.15
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City of Tybee Island, Georgia
Review of Financial Accounting
and
Reporting Internal Controls
June 30, 2000 through July 15, 2000
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Background
Tybee Island, Georgia is a small barrier island located 18 miles east of Savannah,
Georgia. As a small city, Tybee Island suffers from some of the following
characteristics that are common to most small cities across the nation:
A. Administrators and employees who are not aware of the importance of adhering
to specified procedures or who are inclined to take "shortcuts."
B. Accounting personnel with minimal education or experience in accounting.
C. Too few employees to permit an adequate segregation of duties.
The City operates under a council — administrator form of government and provides
the following services as authorized by its charter: general administrative services,
public safety, highways and streets, sanitation, health and social services, culture and
recreation, education, public improvements, and planning and zoning.
City personnel, employing standard governmental accounting and record keeping
techniques, perform financial accounting and reporting functions. Financial
statements are prepared in accordance with generally accepted accounting principles.
The following table represents a five -year historical presentation of five revenue
sources representing approximately 70% of the City's general fund revenue.
Revenue Source
Property Taxes
Parking Services
Hotel — Motel Taxes
Sales Tax Rebate
Fine and Forfeitures
1995 1996 1997 1998 1999
$ 849,476 S 822,278 $ 897,421 $ 926,608 $ 963,952
482,929 502,975 605,171 752,605 813,325
289,161 316,484 423,665 574,649 654,393
514,174 539,787 492,995 571,039 588,804
156,633 157,825 169,488 157,658 182,567
II. Objective
Our objective was to perform a review of the general controls employed in the
execution of financial accounting and reporting functions, to evaluate the adequacy
of these controls, to recommend opportunities for improvement and to communicate
these opportunities to management.
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III. Scope
Our work included a review of the general controls over:
Assets
• Cash
• Taxes Receivable
Liabilities
• Accounts Payable
Revenues
• Real Estate Taxes
• Parking Revenue
• Hotel — Motel Taxes
• Fines and Forfeitures
• Water and Sewer Charges
Expenditures
• Payroll
• Capital Outlay
• Operating
IV. Review Steps
A. Determine major areas of concern with regards to efficiency and exposure.
B. Determine critical responsibilities and the procedures employed in carrying out
duties in' each of the main areas through interviews with client personnel and
observation of performance of procedures.
C. Evaluate major inefficiencies and exposures and determine adequacy of existing
internal control procedures.
D. Document results and communicate them to management with appropriate
recommendations for improvement.
V. Summary of Findings / Recommendations
It appeared that the system of controls exercised over the execution of financial
accounting and reporting functions were well conceived and functioning in an overall
efficient manner. Opportunities for improvement were, nonetheless, identified in
several areas and communicated to management along with recommendations for
improvement. A majority of the corrective actions can be implemented immediately.
Some will involve further evaluation by management and will take several months to
a year to fully complete and implement.
Our review was not designed to express an opinion on the operations and controls
over financial accounting and reporting functions taken as a whole, and we do not
express such an opinion. As you know, because of inherent limitations of any
internal control, errors or fraud may occur and not be prevented or detected by
internal controls. Also, projections of any evaluation of the accounting system and
controls to future periods are subject to the risk that procedures may become
inadequate because of changed conditions.
This report is intended solely for the information and use of city management and
should not be used for any other purpose. •
VI. Detailed Findings / Recommendations
A. General Computer Controls
Finding
An effective password system is not being utilized.
Exposure
Data is not secure and is susceptible to modification by anyone having access to a
computer terminal.
Recommendation
The rise of paperless processing and remote access to computer systems has
made increased computer security imperative. We recommend that management
implement an effective password system to restrict access to information to those
individuals that have a logical need for such access.
B. Property Tax Receivable
Finding
The property tax billing is not recorded in the accounting records of the City at
the time of billing.
Exposure
The amount of uncollected property taxes cannot be monitored and appropriate
collection efforts made to collect unpaid taxes.
Recommendation
We recommend the following entries be recorded at the appropriate time:
When taxes are billed:
Property taxes receivable — current year SSS,S$S.$S
Deferred taxes SSS,SSS.SS
When taxes are collected:
Cash S,SSS.SS
Property taxes receivable — current year S,SSS.SS
Deferred taxes S,SSS.SS
Property tax revenue S,SSS.SS
C. Parking Decal Revenue
Findine
Customers obtain parking decals at the walk -up window at the parking services
building. Tybee Island residents with appropriate documentation are not charged
a fee for the decal. All other customers pay a fee. The attendant conducting the
transaction obtains information from the customer and completes a handwritten
receipt. Once the transaction is complete and the customer has left the window
the attendant then enters information from the handwritten receipt into the
computer.
Exposure
Once the customer has left the window, the attendant could unintentionally, or
intentionally, convert a paying customer:into a non - paying customer and the error
would not be detected in a timely manner.
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Recommendation
We could not identify a critical reason for exclusively selling parking decals at
the parking services building. We recommend that parking decals be sold from
City Hall on the weekdays and sold from the parking services only on holidays
and weekends. Controls should be implemented to ensure that all parking decals
made available for sale at parking services are accounted for. Centralizing the
selling of parking decals within City Hall provides a mitigating control over a
revenue source that is inherently difficult to implement sound and adequate
controls over.
D. Parking Citation Revenue
Finding
Parking services is responsible for issuing citations for violations of City parking
ordinances. Violators receiving citations are provided a pre - addressed envelope
to mail the fine to the City, or the violator can pay the fine at the walk -up
window at the parking services building. The violator paying the fine at the
window does not receive a receipt demonstrating payment of the fine.
Exposure
Once the violator has left the window, the attendant could unintentionally, or
intentionally, not record the receipt of the fine payment and the error would not
be detected in a timely manner.
Recommendation
We could not identify any reason for collecting parking fines at the parking
services building. We recommend that as fine payments are received in the mail
that a list of fines received be prepared. Once the list has been prepared the
receipts should be turned over to the cashier at City Hall for recording and the list
should be forwarded to the accounting department for subsequent comparison to
the amount recorded as revenue and deposited. Violators wishing to immediately
pay their fine should be directed to City Hall to make payment. Centralizing the
collection of parking fines within City Hall provides a mitigating control over a
revenue source that is inherently difficult to implement sound and adequate
controls over.
E. Parking Meters
Finding
Parking meter money is generally collected once a week. The money is collected
from the meters by a team consisting of two parking services employees. Of the
approximately 850 parking meters on the island, 625 are "old style" meters that
do not provide for the ability to count the number of quarters passing through the
meter. The city does not own the hardware required to read the Duncan meters
for the number of quarters passing through the meter since the last reading.
Exposure
Without the ability to count the number of quarters passing through the meter,
parking services cannot reasonably assure that all the money passing through the
meter is being recorded as revenue on the books of the City.
Recommendation
We recommend that management consider developing a aggressive plan to
modify or replace the 625 "old style" meters in addition to 26 POM so that
parking services has the ability to count the number of quarters passing through
the meter. Management should also invest in the equipment required to read the
Duncan meters in order to determine the number of quarters passing through the
meter since the last reading.
F. Uncounted Revenues
Finding
Parking services collect money from parking meters and measure the amount
collected by using a coffee can. One coffee can represents approximately $500.
The quarters are turned over to an armored care service for counting and
transportation to the bank.
Exposure
Without counting the money collected from the meters, parking services cannot
be certain that the amount collected was actually deposited.
Recommendation
We recommend that management invest in a coin counting machine to count the
money collected from the meters prior to the money being taken to the bank.
Amounts counted by parking services should be subsequently compared to
amounts appearing as deposits on the bank statement and in the general ledger
accounts for the period.
G. Untimely Recording of Parking Meter Revenue
Findin,
When parking services receives notification that a parking meter is not working
properly an employee of the department is sent to investigate the meter. The
meter is opened and the quarters are removed. The uncounted quarters are taken
to parking services and put in a coffee can. The quarters in the coffee can are
used to provided change to customers at the walk -up window.
Exposure
While the quarters, representing uncounted revenue, are sitting in the coffee can
they are susceptible to petty pilfering.
Recommendation
We recommend that the revenue be turned in to City Hall for recording in a
timelier manner, preferably as soon as it is collected.
H. Reports of Excused and Voided Citations
Findinji
Persons who have been issued a parking citation can have their citation excused
by walking up to the window at parking services and pleading their case. Tickets
are voided if the parker walks up while the parking service employee is writing
the ticket, if the parking service employee has already written the ticket and
notices that there is a ticket already on the vehicle or for various other reasons.
While the software used in parking services has the ability to print predefined
reports on excused and voided citations, these reports are not being printed and
reviewed routinely.
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Exposure
Predefined reports, when utilized correctly, could be used to identify patterns and
provide controls over the process of excusing and voiding citations. When those
reports are not utilized unintentional, or intentional, errors could be made and not
be detected timely.
Recommendation
We recommend that management routinely run and review reports on excused
and voided citations as a control over this process. We also recommend that
management develop policies and procedures for excusing and voiding citations.
I. Parking Services Computer Program Outdated
Finding
The software currently utilized by parking services was written over 10 years
ago, and is not compatible with advances in technology related to issuing
citations. Also, access to certain information is not protected by a password
system.
Exposure
By not utilizing current technology (handheld ticket writers) parking service
employees must hand write citations and then those handwritten citations are
keyed into the computer by other employees of parking services. This process is
more costly than a process that utilizes handheld ticket writers since it requires
significant amounts of valuable personnel time. In addition, the risk of error,
whether unintentional or intentional, is greatest when redundant procedures are
required in order to complete a transaction. Also, parking services data is not
secure and is susceptible to modification by anyone having access to a computer
terminal.
Recommendation
We recommend that the current software be upgraded to provide the following:
1. Password system to limit access to areas that attendants have a logical
need to access.
2. Enhance reporting features to provide the flexibility to design reports
that would provide useful information to more effectively manage
parking services.
3. Interface with handheld ticket writers to reduce costs involved with
keying in information from handwritten citations and reduce the
opportunity for errors.
4. Print numerically sequenced receipts.
J. Physical Controls of Blank Parking Citations
Finding
Blank parking citations are stored at parking services in an unsecured location.
Exposure
Blank parking citations obtained and issued by unauthorized individuals would
not be detected timely.
Recommendation
We recommend that blank parking citations are stored in a secure location to
limit access to those individuals authorized to issue citations.
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K. Hotel — Motel Tax
Finding
The• City collects Hotel — Motel taxes from lodging providers. The tax is based
on the amount that the lodging provider reports as revenue for the month. The
Hotel — Motel tax is the third largest revenue source for the City representing
about 14% of general fund revenue in 1999. The City does not conduct surprise
audits of lodging providers to insure that the lodging providers are accurately
complying with the Hotel — Motel Tax ordinance and paying the City correctly.
Exposure
If the lodging providers become comfortable knowing that the City is not going
to audit amounts reported, lodging providers may have a tendency to under-
report to the City.
Recommendation
Management should conduct surprise audits to insure that lodging providers are
accurately complying with the Hotel — Motel Tax ordinance and paying the City
correctly.
L. Redundancy in Processing Transactions
Finding
The manual process to record amounts collected in the police department
requires duplication, and in one instance triplication, of procedures within the
process.
Exposure
The risk of error, whether unintentional or intentional, is greatest when redundant
procedures are required in order to complete a transaction. Processes requiring
redundant procedures are not an efficient use of valuable personnel time.
Recommendation
We recommend that management automate the cash receipting process utilizing
public safety software.
M. Water and Sewer "Cut -Off / Cut -On" Fee
Finding
A "cut -off / cut -on" fee is assessed when your water and sewer payment has not
been received by the tad day of the odd month. The fee imposed depends upon
the time of day that your water service is restored. The customer must pay the
fee at the cashier's office inside City Hall. The customer can pay the amount due
right up to the time that the "cut off' list is prepared. This policy prevents the
customer's account from being updated timely enough to reflect the additional
amount due before the customer arrives to pay to get their water service restored.
Exposure
When the customer's account is not updated timely to reflect the appropriate
amount due there is the risk that the customer will not pay the proper amount and
the result is lost revenue to the City. On the other hand, if the customer pays the
additional amount due and the system is not looking for the additional fee there is
the risk that the cashier could misappropriate the fee.
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Recommendation
We recommend that management re- evaluate the current ordinance on late
charges. By requiring payments to be received by a specific time (close of
business on the first day of the odd month) the accounting department would
have time to update the appropriate accounts. "Cut off' lists should be compared
to late payments received by someone independent of the receipting function and
appropriate action taken on exceptions noted.
N. Purchasing Procedures
Findinr
The city's appropriation ordinance does not require the use of purchase orders.
The ordinance does require the completion of a requisition in advance of the
purchase. In most cases, these requisitions are completed as a formality
subsequent to the purchase.
Exposure
The current ordinance does not adequately ensure that all purchases are made in
accordance with applicable legal requirements or the budget.
Recommendation
We recommend that management re- evaluate the current appropriations
ordinance and consider requiring that purchase orders be utilized in the process
of acquiring goods and services. Purchase orders should be
1. Prenumbered and used in sequence.
2. Prepared on the basis of a purchase requisition approved by a
responsible employee, usually a department head.
3. Limited to purchases less than a certain amount (to be
determined by the governing body) on their face without prior
approval of the governing body.
Purchase orders should require independent approval that:
1. An appropriation exists for the purchase
2. A sufficient amount is available in the appropriation account to
which the purchase is chargeable.
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September 7, 2000
Tom, here is a list of ALL quotes from the Vendors that demonstrated their products. I thought this
might help in negotiations.
VENDOR
QUOTE
POINTS (FROM
QUESTIONNAIRE)
SMITH DATA
$40,000.
155
MAIN STREET
$57,000.
185
INCODE*
$65,000.
172
*STAFF CHOICE
MANATRON /SDS
$68,000
166
SAS
$70,000.
165
COMPUTER
SYSTEMS
$71,818.
115
RDS
$74,000.
187
USL
$135.000.
175
See ya Monday,
Vivian
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Financial and Administrative
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1. INCODE does not recommend training at the Lubbock Training Center for Utility Billing Systems when an electronic conversion is being performed.
1
1
1
Res 9.1.15 Master Lease GMA
Resolution
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF TYBEE ISLAND:
Section 1. The City fmds that the leasing of certain property pursuant to the Master Lease with the
Georgia Municipal Association, Inc. is essential to operation of the governmental functions of the City.
The execution and delivery of such documents as may be necessary to effectuate these purposes is
authorized.
Section 2. The Mayor of the City is hereby authorized and directed in the name and on behalf of the
City to execute and deliver the Master Lease in substantially the form presented to this meeting, with
such changes and additions as shall be approved by the officer to be necessary or desirable to effect the
purposes hereof; and such execution shall constitute conclusive evidence that the executed document has
been authorized to do all things necessary or appropriate to effectuate the purposes hereof.
Section 3. The leases contemplated by the Master Lease are hereby designated "qualified tax -
exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended.
Section 4. This action shall be effective immediately.
Resolved this 14t • ay of Sept - O.
Officer:
Title: Ma — or
Attes
Title:
Clerk's Certificate
The undersigned hereby certifies that I am the Clerk of Tybee Island, Georgia; that the attached
hereto is a true copy of the Resolution duly and finally enacted or adopted by the governing body of the
City Council at a meeting duly held on September 14, 2000at which a quorum was present and acting
throughout, and that it has not been rescinded or modified and is now of full force and effect.
Given under the seal of the City of Tybee Island, this 14th day of September, 2000.
Seal C\\`\ I �� O • , . �� �r--J
it
Page 1 of 2
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689721
MASTER LEASE
by and between
GEORGIA MUNICIPAL ASSOCIATION, INC.
as Lessor
and
THE CITY OF TYBEE ISLAND, GEORGIA
as Lessee
Date
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MASTER LEASE
THIS MASTER LEASE, is made by and between GEORGIA MUNICIPAL ASSOCIATION, INC., a
Georgia nonprofit corporation, and its successors and assigns ( "Lessor "), and the municipal corporation of the State
of Georgia signing below ( "Lessee ").
RECITALS:
A. Lessee desires to lease certain real or personal property from Lessor pursuant to the provisions hereof
and pursuant to the authority of O.C.G.A. Section 36- 60 -13.
B. The real or personal property to be leased and the terms of the particular leases are to be set forth in
Lease Supplements to this Master Lease from time to time.
THE PARTIES HERETO AGREE AS FOLLOWS:
ARTICLE I
DEFINITIONS
1.1 Definitions. The following terms shall have the meanings set forth below for all purposes of this
Master Lease:
"Additional Rentals" shall have the meaning ascribed to that term in Section 4.8 hereof.
"Appropriation Certificate" means an Appropriation Certificate attached as Schedule C to the form of
Lease Supplement, completed and delivered to Lessee.
"Bank- Qualified Lease" means a Lease designated as a "qualified tax- exempt" obligation under Section
265(b)(3) of the Code. Each Lease hereunder shall be a Bank - Qualified Lease unless it is designated as a Non -
Bank- Qualified Lease on a Lease Supplement.
"Code" means the Internal Revenue Code of 1986, as amended, and any applicable regulations thereunder.
"Event of Default" means one of the events described in Section 9.1 hereof.
"Event of Nonappropriation" means a nonrenewal of a Lease by the Lessee, determined by (i) Lessee's
failure to appropriate in Lessee's annual budget for any of Lessee's fiscal years, within 30 days after the
commencement of the fiscal year, with respect to each of the Leases, moneys sufficient to pay the Rentals and the
Termination Payment for such fiscal year as provided herein, or (ii) receipt by Lessor of a Nonrenewal Notice. The
Lessor at its option, with the consent of the Lessee (and a subsequent appropriation as described in (i) above shall be
such a consent) can waive the effects of an Event of Nonappropriation.
"GMA" means Georgia Municipal Association, Inc., regardless of any assignment by it of its rights
hereunder.
"Interest Portion" means that portion of Rentals attributed to interest on a Rental Schedule.
"Lease" means the leasing of any Property pursuant to a particular Lease Supplement.
"Lease Amount" means the costs associated with the Property described in the Property Schedule to the
pertinent Lease Supplement.
689721
1
1
"Lease Supplement" means a Lease Supplement hereto, in the form attached as Exhibit "E" hereto, entered
into by Lessor and Lessee with respect to particular Property leased hereunder.
"Master Lease" means this Master Lease, and any amendments and Lease Supplements hereto.
"Non- Bank - Qualified Lease" means a Lease which is designated as a Non - Bank - Qualified Lease on the
pertinent Lease Supplement.
"Nonrenewal Notice" means a notice delivered to Lessor pursuant to Section 3.1 hereof evidencing
Lessee's intention not to renew a Lease for the subsequent Renewal Term or Ending Term.
"Permitted Encumbrances" shall mean, as of any particular time, (i) liens for taxes and assessments not
then delinquent; (ii) utility, access, and other easements and rights -of -way, restrictions, and exceptions that will not
interfere with the enjoyment of the Property, in the opinion of the Servicer; or (iii) such minor defects, irregularities,
encumbrances and clouds on title as normally exist with respect to property similar in character to the Property as
may be consented to by the Servicer.
"Property" means the land, building, structures, machinery, equipment, vehicles or other personal property
leased by any Lease Supplement, together with all additions, accessories, accessions, modifications, attachments,
repairs, replacements and replacement parts thereto and therefor.
"Property Schedule" means the Property Schedule attached as Schedule A to a Lease Supplement.
"Purchase Price" means the price to be paid for Lessee's purchase of the Property set forth in the Rental
Schedule.
"Rental Schedule" means the Rental Schedule attached as Schedule B to a Lease Supplement, as same may
be modified or amended.
"Rentals" means the amounts payable by Lessee for any Lease, described in the Rental Schedule.
"Servicer" means, individually, the entity from time to time named by Lessor as Servicer for a Lease under
this Master Lease, and, collectively, all of the Servicers, as the context may require. In the event that at any time
there shall be no Servicer for a Lease, Lessor shall be deemed to be Servicer.
"Site" means any portion of Property consisting of Land.
"Termination Payment" means, for each Lease, the aggregate of the Rentals due for the next succeeding
Renewal Term or Ending Term, as the case may be, or the amounts shown as the Termination Payment on the
Rental Schedule if the Propertyis real property.
The terms "Starting Date," "Ending Date," "Starting Term," "Renewal Term," "Ending Term," and "Lease
Term" for any Lease are defined in the pertinent Lease Supplement.
• ARTICLE II
LEASING: PURCHASE OPTION
2.1 Lease Supplements.
(a) Lessor and Lessee may enter into Lease Supplements hereto with respect to the Lease of
particular Property, subject to the approval of Servicer and to all of the other terms and conditions of this
Master Lease, and for so long as no Event of Default or Event of Nonappropriation has occurred
hereunder.
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(b) GMA will send the proposed Servicer a Notice of Intent to Lease, in the form attached hereto as Exhibit
"B ", when GMA becomes aware that Lessee intends the execution and delivery of a Lease Supplement.
(c) Each Lease shall be entered into only for Property of the types shown on Exhibit "A" hereto and shall
have a Lease Term not exceeding the maximum leasing period for such type of Property as shown on
Exhibit "A" hereto, unless Servicer should approve a variance in writing for a particular Lease.
(d) Following submission of the fully completed and executed materials described in paragraph (b) above,
and provided that the conditions set forth in paragraph (a) above are satisfied, Lessor, or Servicer on its
behalf, will prepare a Lease Supplement and the proposed Rental Schedule and Property Schedule thereto,
and forward same to Lessee, together with forms for the additional schedules to the Lease Supplement (or
any current versions thereof). Lessee must then execute the Lease Supplement and provide it, together with
fully completed and executed copies of the additional schedules to the Lease Supplement to Lessor.
(e) Following receipt of the completed and executed Lease Supplement and schedules as described in
paragraph (d) above, Lessor will execute the Lease Supplement, whereupon same shall constitute an
effective Lease of the Property described in the Property Schedule thereto, and governed by the terms of
this Master Lease.
(f) In no event will Lease Supplements having Lease Amounts aggregating in excess of any pre- approved
limit of the applicable Servicer be entered into without the consent of Servicer.
2.2 Title to the Property. (a) Title to the Property initially shall be in Lessor. Lessor shall hold title to the
Property during the Lease Term, to the extent required by O.C.G.A. § 36- 60 -13, as modified by O.C.G.A.
§ 36- 60 -15. To the extent permitted by O.C.G.A. § 36- 60 -13, and as authorized by O.C.G.A. § 36- 60 -15,
at the Starting Date of each Lease pursuant to the Lease Supplement the Lessee shall be transferred title to
the Property pertaining to such Lease, and Lessee shall accept such title subject to an obligation to transfer
title back to the Lessor or its assignee in the event the Lease is not fully consummated. In order to best
reflect the status of legal title and subject to the foregoing, Department of Motor Vehicles Certificates of
Title for vehicles constituting Property shall be applied for showing the Lessee as "owner" and Lessor or
the person to whom GMA assigns the Lease as the "lienholder."
(b) Should the Property constitute real property, Lessee will cause to be conveyed good and marketable
title thereto to Lessor. Lessor will convey Property constituting real property by Deed to Secure Debt, and
will grant a security interest in Property constituting personal property, to Servicer, as security for the
Lease. The Lease shall be subject and subordinate to any such Deed to Secure Debt or security interest.
(c) The Lessee shall take any and all actions reasonably required to maintain and evidence Lessor's interest
in the Property at all times during the Lease Term.
(d) Lessee hereby grants to GMA and its assigns first and prior lien and security interest in any and all
rights, title and interest of Lessee in and to the Property and in all additions, attachments, accessions,
accessories, repairs, replacements, improvements and substitutions, now or hereafter acquired together with
the proceeds thereof.
(e) Upon the exercise of a purchase option in accordance with Sections 2.4 or 3.4 hereof, any and all right,
title and interest of Lessor in and to the Property shall be transferred to and vest in Lessee, and, on request,
Lessor will provide a quitclaim bill of sale to such Property. Such transfer shall be without warranty,
express or implied. Lessee will accept any such purchased Property "as is" and at its current location.
2.3 Personal Property. If the Property consists of personal property, the Property is and will remain
personal property and will not be deemed to be affixed to or a part of the real estate on which it may be situated,
notwithstanding that the Property or any part thereof may be in any manner physically attached to real estate. If
requested by Lessor or Servicer, Lessee will furnish a satisfactory landlord's or mortgagee's waiver with respect to
the Property.
689721
1
2.4 Purchase Option. Upon thirty (30) days' prior written notice from Lessee to Lessor and Servicer (and,
unless all Property subject to Lease Supplements serviced by that Servicer is to be purchased, provided that there is
then existing no Event of Default or event which with notice or lapse of time, or both, could become an Event of
Default), Lessee will have the option to purchase any item of Property on the date specified by paying to Lessor the
then applicable Purchase Price. If the item of Property is less than all of the Property covered by a Lease
Supplement, the Purchase Price payable is that portion of the Purchase Price shown on the Rental Schedule
corresponding to the ratio of the cost of the item of Property to be purchased to the Lease Amount. If less than all of
the Property covered by a Lease Supplement is purchased, Servicer will prepare and send to Lessor and Lessee a
revised Rental Schedule to reflect the removal of the purchased Property from the Lease.
ARTICLE III
TERM OF LEASES
3.1 Renewal, Expiration or Termination of a Lease Term. The current Starting Term or Renewal Term of
each Lease will renew automatically on January 1 of each year for a Renewal Term or Ending Term, until the
Ending Date, unless Lessee provides Lessor and Servicer by October 1 of the year preceding such January 1 a
Nonrenewal Notice. Notwithstanding the foregoing, the Lease Term of a Lease will expire or terminate, as
appropriate, prior to its stated term as of the first to occur of the following: (a) December 31 of the last year for
which such Lease has been renewed pursuant to the terms hereof, or (b) the date of termination of the Lease by
Lessor, if there occurs an Event of Default. Notwithstanding anything in this Master Lease or any Lease to the
contrary, each Lease shall terminate absolutely and without further obligation on the part of the Lessee at the close
of the Starting Term or last Renewal Term for which such Lease has been renewed. The parties intend that each
Lease operate in conformity with and not in contravention of O.C.G.A. § 36- 60 -13, and in the event that any Lease
would conflict therewith, the Lease and this Master Lease shall be interpreted and implemented in a manner
consistent with such statute.
3.2 Effect of Nonappropriation on other Leases. Should an Event of Nonappropriation occur with respect
to any Lease, Lessor may by notice to Lessee deem such event to be the exercise of Lessee's purchase option
pursuant to Section 2.4 hereof with respect to any or all other Leases that the pertinent Lessor holds. In connection
with any such purchase, that Lessor, upon payment of amounts owing to it hereunder, will cooperate with Lessee at
the request and expense of Lessee, in transferring that Lessor's interest in such Lease and the Property to a new
lessor in lieu of transferring title on purchase to Lessee.
3.3 Delivery of Property Following Expiration or Termination. If an Event of Default or an Event of
Nonappropriation with respect to a Lease occurs hereunder, Lessee will then (or, in the case of an Event of
Nonappropriation only, on December 31 of the last year for which such Lease has been renewed pursuant to the
terms hereof) surrender peaceably possession of the Property to the pertinent Lessor in good condition and repair,
normal wear and tear excepted. Property constituting personal property shall be prepared by Lessee for shipment in
accordance with Lessor's or its assignee's specifications and freight prepaid and insured to any location in the
continental United States designated by that Lessor; provided further, however, until the Property is actually
delivered to that Lessor, the risk of loss shall remain with Lessee or its assignee. Property that is real property shall
be vacated by the Lessee on demand. That Lessor will have all legal and equitable rights and remedies to enforce its
rights, including but not limited to, the right to take possession of the Property. On request, Lessee shall execute and
deliver to that Lessor such deeds, bills of sale, assignments, releases or other instruments as necessary or desirable to
vest or confirm in Lessor or its assignee all right, title and interest of Lessee in the Property.
3.4 Purchase Upon Ending Date. Should a Lease continue to be renewed throughout the Lease Term and
should there exist no Event of Default, Lessee shall have the option to purchase the Property on the Ending Date for
the sum of $1, and shall be deemed to have exercised such option unless it shall have provided notice of the non-
exercise of such option to Lessor at least 30 days prior to the Ending Date.
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ARTICLE IV
PAYMENT OBLIGATIONS
4.1 Rentals Payable. The Lessee shall pay the Rentals in the amounts, at the times, and in the manner set
forth in the Rental Schedule attached as Exhibit B to the Lease Supplement.
4.2 Termination Payment. The Lessee shall pay to the Lessor the Termination Payment upon expiration or
termination of the Lease Term of a Lease pursuant to Section 3.1 hereof, except upon expiration on the Ending
Date. Furthermore, if Lessee has not made an appropriation with respect to the Lease of moneys sufficient to pay the
Rentals and Termination Payment payable in the fiscal year of Lessee in which the following January 1 falls, on or
prior to the last business day of each calendar year, Lessee shall pay the Termination Payment to Lessor; provided,
however, that if Lessee makes such appropriation by the following February 1, the obligation to make the
Termination Payment pursuant to the second sentence of this Section 4.2 shall be null and void, and the Termination
Payment, if received by Lessor, shall be returned to Lessee.
4.3 Covenants Regarding Appropriations.
(a) Lessee will cause its budget officer (i) to include in its annual budget proposal a request or requests for
the amounts necessary to pay the Rentals and the Termination Payment for each Lease during the fiscal year of
Lessee that is the subject of such budget, and (ii) to take such further action (or cause the same to be taken) as may
be necessary or desirable to assure the availability of moneys actually appropriated to pay such Rentals and the
Termination Payment.
(b) The Lessee will provide to Lessor an Appropriation Certificate for each Lease, with respect to the
current fiscal year, within 15 days of the adoption of each annual budget.
(c) Lessee shall notify Lessor in writing promptly, and prior to February 1 of each Renewal Term or
Ending Term, of the amount of any deficiency in appropriations for the Leases and whether or not Lessee believes
such deficiency will cause it to be unable to pay Rentals coming due hereunder during the current Renewal Term or
Ending Term.
4.4 Limitations on Liability. The provisions of this Section 4.4 shall apply notwithstanding anything herein
to the contrary.
(a) Nothing in this Master Lease shall be construed to require the governing body of Lessee to make any
future appropriation of money to pay any Rentals, the Termination Payment, the Purchase Price or other amounts
owing hereunder.
(b) All payments required to be made by Lessee hereunder constitute current expenses of Lessee, and
Lessee's obligations hereunder are from year to year only and do not constitute a mandatory payment obligation of
Lessee in any ensuing calendar year beyond the current calendar year in contravention of O.C.G.A. Section 36 -60-
13, as amended. No provision hereof shall be construed or interpreted as creating a general obligation or other
indebtedness of Lessee or the State of Georgia, within the meaning of any constitutional or statutory debt limitation.
This Master Lease does not directly or indirectly obligate Lessee to make any payments hereunder beyond those
appropriated for Lessee's then current calendar year.
4.5 Payment; Late Payments. All payments required to be made by Lessee hereunder shall be paid in
lawful money of the United States of America, by check drawn against funds of Lessee, at the office of Servicer or
in such other manner or at such other place as may be agreed to by Servicer and Lessee. All payments required to be
made by Lessee hereunder not paid within 10 days of the due date shall, unless waived by the Lessor, bear
additional interest equal to five percent (5 %) of the delinquent amount.
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4.6 Tax Treatment of Rentals.
(a) Each Lease is entered into on the basis that the Interest Portion of the Rentals is not includable in the
gross income of the pertinent Lessor for Federal income tax purposes and, unless it is a Non - Bank - Qualified Lease,
that Lessor's assignee's may deduct at least 80% of its interest costs with respect to the Lease under Section
265(b)(3) of the Code.
(b) For the purposes of this Section 4.7, the following terms are defined as follows:
"Adjusted Rate" means that rate of interest that must be applied to a Lease Amount so as to preserve the
same after -tax economic yield with respect to the corresponding Interest Portion of Rentals on a Lease as that
Lessor (including specifically any assignee of the Interest Portion) would have had if the Interest Portion had been
excludable from gross income for Federal income tax purposes, and if such Lessor's interest expense allocable to the
Lease had been deductible from gross income.
"Event of Taxability" means a determination by the Internal Revenue Service, any court of competent
jurisdiction, or bond counsel acceptable to Lessor that the Interest Portion of Rentals on a Lease is includable in
gross income for Federal income tax purposes.
"Federal Tax Rate" means the maximum marginal Federal income tax rate applicable to corporations.
(c) Following the occurrence of an Event of Taxability: (i) Lessee shall pay to that Lessor within thirty
days of billing a sum equal to (A) the increase in the Interest Portion when computed at the Adjusted Rate for the
period from the effective date of the Event of Taxability to the effective date of the modification described in (ii)
below, and (B) all interest, penalties and other similar charges payable by that Lessor to the Internal Revenue
Service as a result of the Event of Taxability; and (ii) Servicer shall modify the Interest Portion of the Rentals under
the Rental Schedule for the Lease Supplement for all future periods to reflect the Adjusted Rate, and provide notice
thereof to that Lessor and Lessee, which adjusted Rentals Lessee shall thereafter pay.
(d) Should the Federal Tax Rate change from time to time following any Starting Date, Servicer shall
modify the Interest Portion of the Rentals under the Rental Schedule for the Lease Supplement for all future periods
by a fraction the numerator of which is 100% minus the Federal Tax Rate as so changed and the denominator of
which is 100% minus the previous Federal Tax Rate, which adjusted Rentals Lessee shall thereafter pay.
(e) Should the deduction for interest expense for obligations described in Section 265(b)(3) or any
successor provision of the Code be reduced after the Starting Date of any Lease, Servicer shall modify the Interest
Portion of the Rentals under the Rental Schedule for the Lease Supplement pertaining to all Leases (other than Non -
Bank- Qualified Leases) for all future periods so as to preserve the same after -tax economic yield with respect to the
Interest Portion as Lessor (including specifically any assignee of the Interest Portion) had prior to such reduction,
which adjusted Rentals Lessee shall thereafter pay.
(f) Lessee specifically designates each Lease (other than a Non - Bank - Qualified Lease) under this Master
Lease as a "qualified tax- exempt obligation" as provided by Code Section 265(b)(3) ( "Qualified Obligation "). Upon
determination by bond counsel acceptable to Lessor that a Lease (other than a Non - Bank - Qualified Lease) is not a
Qualified Obligation, Servicer will: (A) adjust the Interest Portion of the Rental Schedule to preserve that Lessor's
after -tax economic yield with respect to interest, taking into account the interest expense deduction unavailable for
that reason, which adjusted Rentals Lessee will thereafter pay, and (B) will invoice Lessee for the amount necessary
to preserve that Lessor's after -tax economic yield with respect to the Interest Portion of Rentals previously paid on
such Lease, taking into account the interest expense deduction unavailable for that reason, which amount Lessee
will pay within ten days. Lessee will take no action which will directly or indirectly affect the deductibility of that
portion of Lessor's interest expense allocable to a Lease (other than a Non - Bank - Qualified Lease).
(g) Servicer's determinations of adjustments or amounts under this Section 4.7 shall be conclusive.
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4.8 Additional Rentals. In addition to the Rentals, Lessee shall pay on a timely basis, but only from legally
available funds appropriated for such purposes, to the parties entitled thereto an amount or amounts (the "Additional
Rentals ") for the calendar year to which the following items apply or relate, equivalent to the sum of the following:
(i) the out -of- pocket expenses of the Lessor relating to the Property not otherwise required to be paid by the Lessee
under the terms of this Lease, (ii) the costs of taxes and charges as required under Section 5.4 hereof; (iii) any other
fees, costs, levies, charges, taxes, assessments or expenses that the Lessor is required to pay in connection with this
Lease or the Property.
ARTICLE V
MAINTENANCE; TAXES; INSURANCE;
AND OTHER MA 1 -1 hRS
5.1 Use: Repairs. Lessee will use, maintain and operate the Property in good order, condition and repair,
ordinary wear and tear excepted, and in a safe and a careful manner for the use contemplated, and shall comply with
all laws, ordinances, insurance policies and regulations relating thereto, and will pay all costs, claims, damages, fees
and charges arising out of its possession, use or maintenance. Lessor shall have no responsibility for the condition of
the Property, which Lessee accepts "as -is," or for the maintenance or repair of the Property. Lessee shall not attach
or incorporate the Property constituting personal property to or in any other item of equipment in such a manner that
the Property becomes or may be deemed to have become an accession to or a part of such other property. Lessee, at
its expense, will keep the Property in good repair and operating condition and fumish all parts, mechanisms and
devices required thereto. If the Property is such as is customarily covered by a maintenance agreement, Lessee will
furnish Lessor with a maintenance agreement. In addition, if any parts or accessories forming part of the Property
shall from time to time become worn out, lost, destroyed, damaged beyond repair or otherwise permanently
rendered unfit for use, Lessee, at its own expense, will within a reasonable time replace such parts or accessories, or
cause the same to be replaced, by replacement parts or accessories which are free and clear of all liens,
encumbrances or rights of others and having a value and utility at least equal to the part or accessories replaced
(assuming such replaced parts or accessories were in the condition and repair required to be maintained by the terms
hereof). All property, accessories, parts and replacements for or which are added to or become attached to the
Property which are essential to the operation of the Property or which cannot be detached from the Property without
materially interfering with the operation of the Property or adversely affecting the value and utility which the
Property would have had without the addition thereof, shall immediately be deemed incorporated in the Property
and subject to the terms of the Lease as if originally leased thereunder, and title thereto shall vest in Lessor. Each
Lease shall be deemed and construed to be a "net- net -net lease," and Lessee hereby agrees that the Rentals provided
for therein shall be an absolute net return to the Lessor free and clear of any expenses, charges or setoffs
whatsoever, except as otherwise specifically provided hereon.
5.2 Alterations. Lessee will not make any alterations, additions or improvements to the Property without
Lessor's prior written consent, unless such alterations, additions or improvements shall not diminish the value or
utility of the Property or impair the utility or condition thereof. Title to all parts or improvements incorporated or
installed in, on or attached to or added to the Property constituting personal property as the result of such alteration,
addition or improvement shall, without further act, be with the Property, and Lessee shall execute and deliver to
Servicer such further assurances as may be required to assure that the pertinent Lessor shall have a perfected
security interest therein; provided, however, that Lessee may, at any time, remove and not replace a part of Property
constituting personal property, if no Event of Default has occurred and is continuing and such part (i) is in addition
to, and not in replacement of or substitution for, any part originally incorporated or installed in or attached to the
Property or any part in replacement of, or substitution for, any such part, (ii) is not required to be incorporated or
installed in or attached or added to the Property pursuant to this Section 5.2, and (iii) can be removed from the
Property without diminishing or impairing the value, utility or condition which the Property would have had at such
time had such alteration. addition or improvement not occurred.
5.3 Location: Inspection. Property constituting personal property will not be removed from. or if the
Property consists of vehicles, its permanent base will not be changed from, the Lessee, without Lessor's prior
written consent. Lessor and the Servicer and their agents will be entitled to enter upon the Property location or
elsewhere during reasonable business hours to inspect the Property or observe its use and operation.
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5.4 Liens and Taxes. Lessee shall keep the Property free and clear of all levies, liens and encumbrances
except those created under this Master Lease and Permitted Encumbrances. Lessee shall pay, when due, and, to the
extent permitted by law, hold Lessor and the Servicer harmless against, all charges and taxes (local, state and
federal) which may now or hereafter be imposed upon the leasing, rental, sale, purchase, ownership, possession or
use of the Property, whether imposed upon Lessor, Servicer or Lessee, excluding, however, all taxes on or measured
by Lessor's income. If Lessee fails to pay said charges and taxes when due, Lessor or Servicer shall have the right,
but shall not be obligated, to pay said charges and taxes. If Lessor or Servicer pays any charge or tax for which
Lessee is responsible or liable under this Master Lease, Lessee shall reimburse Lessor or Servicer therefor plus
interest on any unreimbursed amounts from the date of payment by Lessor at the Servicer's Prime Rate until the date
of reimbursement.
5.5 Cooperation. The Lessor shall cooperate fully with Lessee at the expense of Lessee in filing any proof
of loss with respect to any insurance policy maintained pursuant to this article.
5.6 Insurance. Unless Servicer otherwise should consent in writing, Lessee will, at its expense, maintain at
all times during the Lease Term, fire and extended coverage and property damage insurance with respect to the
Property in customary amounts. In lieu of such insurance, Lessee may cover the Property under the programs of the
Georgia Interlocal Risk Management Agency, authorized by O.C.G.A. Section 36 -85 -1 et seq. Each such insurance
policy or coverage agreement will name Lessee as an insured and the pertinent Lessor as loss payee, and will
contain a clause requiring the insurer to give the loss payee at least thirty (30) days prior written notice of any
alteration in the terms of such policy or agreement or the cancellation thereof. The proceeds of any such insurance
policies or coverage agreement will be payable to Lessee, Lessor or their respective assigns as their interests may
appear. In the event of any loss, theft, destruction, damage, injury, accident or condemnation involving the
Property, Lessee will (a) promptly provide Servicer with written notice thereof and make available to Lessor all
information and documentation relating thereto, and (b) at the option of Lessor, (i) exercise its purchase option
under Section 2.4 hereof or (ii) promptly and fully replace or restore the Property or repair the Property to its
condition prior to such loss, theft, damage, vandalism, destruction or condemnation, and cause such repaired,
restored or replaced Property to be conveyed to Lessor or its assigns and leased hereunder. Lessor will provide any
net proceeds of such insurance or coverage agreement or of condemnation for such purpose, but Lessee shall satisfy
any further obligation from its own funds. Lessee shall be obligated to pay to Lessor an amount equal to the
difference of the value of the Property immediately before the casualty or taking occurred (assuming the Property
was then of the value or utility and in the condition and repair required to be maintained by the terms hereof) and
the value of the Property after any such replacement, restoration and repair; any such payment shall reduce the
Rentals for the Property and the Servicer shall send an appropriate modification to the rental Schedule to Lessor and
Lessee. Any such repaired or replaced Property shall be owned by Lessor and be leased hereunder, and Lessee shall
execute such further assurances as may be required to place such title in Lessor. No loss, theft, destruction, damage,
injury, accident or condemnation involving the Property shall obviate or diminish the obligation of Lessee to pay
Rentals hereunder. All of the Lessee's property of any kind that may be on or about the Property or placed in the
custody of any of the Lessee's employees or agents shall be held at the sole risk of the Lessee, and the Lessor shall
have no liability to the Lessee for any theft or loss thereof or damage thereto from any cause whatsoever.
ARTICLE VI
DISCLAIMER OF WARRANTIES: INDEMNIFICATION
6.1 Disclaimer of Warranties. THE LESSOR MAKES NO WARRANTY OR REPRESENTATION,
EITHER EXPRESS OR IMPLIED, AS TO THE PROPERTY, INCLUDING THE VALUE, DESIGN,
CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR
THE USE CONTEMPLATED BY THE LESSEE OF THE PROPERTY OR WITH RESPECT TO PATENT
INFRINGEMENT. THE LESSEE ACKNOWLEDGES THAT THE LESSOR IS NOT A MANUFACTURER OF
THE PROPERTY OR A DEALER THEREOF, AND THAT THE LESSEE IS LEASING THE PROPERTY AS -IS.
In no event shall Lessor be liable for incidental, indirect, special or consequential damages, in connection with or
arising out of this Master Lease or for the existence, furnishing, functioning or Lessee's use and possession of the
Property.
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6.2 Unconditional Obligation. Lessee's payment obligations under this Master Lease are unconditional,
notwithstanding any claim, defense, set -off or counterclaim against Lessor or otherwise. Lessee's sole remedy for
the breach of any vendor's or manufacturer's warranty or representation shall be against the vendor or manufacturer,
and not against Lessor, nor shall such matter have any effect whatsoever on the rights and obligations of Lessor with
respect to this Master Lease, including the right to receive full and timely payments hereunder.
6.3 Additional payments Covenants. To the extent permitted by law, and as part of the consideration for
the use of the Property, Lessee shall and hereby agrees to pay to Lessor, the Servicer, and any successors or assigns
the amounts of any and all claims, losses, damages, actions, proceedings, expenses, or liabilities, including legal
fees and expenses and court costs, arising in connection with the Property (but not due to the negligence or
wrongful acts of such parties or the breach of their obligations hereunder), including but not limited to claims,
losses, damages, actions, proceedings, expenses, or liabilities arising out of (i) the use, maintenance, condition or
management of the Property by Lessee, (ii) any breach or default on the part of Lessee in the performance of any of
its obligations under this Master Lease, (iii) any act or negligence of Lessee or of any of its agents, contractors,
servants, employees or licensees with respect to the Property, (iv) any act or negligence of any assignee or sublessee
of Lessee with respect to the Property, or (v) the acquisition of the Property or the authorization of payment of the
costs thereof by Lessee.
6.4 Assurance Against Invalidity. To the extent permitted by law, and as part of the consideration for the
use of the Property, in the event that any court of competent jurisdiction should finally determine that a Lease is
invalid for any reason, any interest of Lessee in the Property shall terminate and title thereto shall be in Lessor, and
Lessee shall pay to Lessor the amount of all loss and expense as a result of such invalidity; provided, that funds for
the satisfaction of such obligation shall be limited to amounts as may be appropriated for the payment of amounts
due under the Lease or other funds lawfully available for the payment thereof.
ARTICLE VII
ASSIGNMENTS; SERVICERS
7.1 Assignments by Lessee. Neither this Master Lease, any Lease Supplements, nor any interest of Lessee
herein or in the Property shall be mortgaged, pledged, assigned, subleased or transferred by Lessee, except with the
express written consent of Lessor and Servicer.
7.2 Assignments by Lessor. Any Leases, the related Lease Supplements, the Lessor's interests in the
pertinent Property, any related documents, and the Lessor's rights, powers and remedies under this Master Lease
with respect to such Leases may be assigned and reassigned in whole or in part by Lessor to one or more assignees,
and Lessee agrees upon receipt of notice of such assignment to fully recognize any such assignee as Lessor to the
extent provided by such assignments. Lessee agrees to execute and deliver any further assurances requested by such
an assignee to confirm the interests of the assignee. Following any such assignment, the term "Lessor" hereunder
shall refer to the assignee with respect to the pertinent Lease, or to all such assignees, as the context shall require.
Any assignment or reassignment of rights under Leases must be registered by filing same with Lessee, and GMA
will keep a complete and accurate record of such assignments and reassignments as necessary to comply with
Section 149(a) of the Code.
7.3 Servicers. Lessor may appoint one or more Servicers of Leases, and each such appointee shall be the
"Servicer" hereunder with respect to the Leases to which the appointment applies. Unless Lessor appoints a
different Servicer with respect to a Lease, the assignee of the Lease shall be the Servicer for such Lease.
ARTICLE VIII
REPRESENTATIONS. COVENANTS AND WARRANTIES
8.1 Representations, Covenants, and Warranties of the Lessee. The Lessee hereby represents, covenants,
and warrants on a continuing basis as follows:
(a) Lessee is a municipal corporation duly created and existing under a charter enacted by the General
Assembly of Georgia. The Lessee has the power and authority to enter into the transactions contemplated
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by this Master Lease and each Lease in effect, and to carry out such obligations. The Lessee has been duly
authorized to execute and deliver this Master Lease and each Lease in effect.
(b) The Master Lease and each Lease Supplement have been duly authorized, executed and delivered by
the Lessee and constitute its legal, valid, binding obligations, enforceable in accordance with their terms.
The Lessee is not subject to any legal or contractual limitation or provision of any nature whatsoever which
in any way limits, restricts or prevents Lessee from entering into this Master Lease and each Lease in effect
or performing any of such obligations. There exists no default or "Event of Default ", under the Master
Lease and each Lease Supplement, and each is in full force and effect.
(c) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court,
public board or body, pending or known to be threatened against or affecting Lessee or any of the Leases,
nor to the best knowledge of Lessee is there any basis therefor, wherein an unfavorable decision, ruling or
fording would materially adversely affect any of the Leases, the transactions contemplated by this Master
Lease or any of the Leases, or any other agreement or instrument to which Lessee is a party and which is
used or contemplated for use in the consummation of the transactions contemplated by this Master Lease
and each Lease Supplement.
(d) The entering into and performance of this Master Lease and each Lease in effect will not violate any
judgment, order, law, charter or regulation applicable to Lessee or result in any breach of, or constitute a
default under, or result in the creation of any lien, charge, security interest or other encumbrance upon any
assets of Lessee or on the Property pursuant to, any indenture, mortgage, deed of trust, bank loan or credit
agreement or other instrument to which Lessee is a party or by which it or its assets may be bound.
(e) All requirements have been met and proceeds have occurred in order to ensue the enforceability of this
Master Lease and each Lease in effect, and Lessee has complied or will comply with such public bidding
requirements as may be applicable to this Master Lease and each Lease in effect and the acquisition of the
Property and the conveyance of Property to Lessor. No officer or employee of the Lessee has violated
O.C.G.A. §§ 45 -10 -3 or 45 -10 -23 in connection with the transactions contemplated by the Master Lease.
(f) The payment of the amounts due hereunder or any portion thereof will not be (i) secured by any interest
in property used or to be used in a trade or business or in payments in respect of such property or (ii)
derived from payments in respect of property, or borrowed money, used or to be used in a trade or
business, within the meaning of Section 141(a) of the Code. None of the Property will be used in any such
trade or business.
(g) The Property is essential to the proper, efficient and economic operation of Lessee, and during the term
hereof, the Property will be used by Lessee, or by other departments and agencies of Lessee consistent with
the permissible scope of Lessee's authority for the purpose of performing one or more essential
governmental or proprietary functions.
(h) The Property that is subject to each Lease has not been and is not expected to be sold or otherwise
disposed of in whole or in part prior to the Ending Date under the pertinent Lease.
(i) Lessee has not been notified of any listing of it by the Internal Revenue Service as an issuer that may
not certify its obligations.
(j) The proceeds of each Lease will not be used in a manner and no other action will be taken or omitted
that would cause such Lease to be an "arbitrage bond" under Section 148 or a "private activity bond" under
Section 142 of the Internal Revenue Code of 1986, as amended and regulations promulgated under that
Section.
(k) Lessee shall furnish to Servicer Lessee's annual financial statements as soon as available, and shall
permit Servicer, Lessor or their agents and representatives to inspect Lessee's books and records and make
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extracts therefrom. Lessee will furnish such other or more current financial information as the Servicer
may request from time to time;
(1) All fmancial statements delivered to Lessor or Servicer fairly and accurately reflect Lessee's fmancial
condition as of the date thereof. There has been no material adverse change in Lessee's fmancial condition
since the date of the last financial statements submitted to Lessor or the Servicer.
ARTICLE IX
EVENTS OF DEFAULT AND REMEDIES
9.1 Events of Default Defined. The following shall be "Events of Default" under this Master Lease:
(a) Failure by Lessee to pay any payment required to be paid hereunder within 10 days of the due date;
provided, however, that Lessee shall have until the following February 1 to cure any failure to pay the
Termination Payment required pursuant to the second sentence of Section 4.2 hereof;
(b) Failure by Lessee to observe and perform any other covenant, condition or agreement on its part to be
observed or performed herein, in a Lease Supplement or otherwise with respect hereto, other than as
referred to in clause (a) of this Section, for a period of 30 days after written notice specifying such failure
and requesting that it be remedied has been given to Lessee by the Servicer or Lessor,
(c) The subjection of any right or interest of Lessee under this Master Lease to any execution, garnishment
or attachment, or assignment by Lessee for the benefit of creditors, or the entry by Lessee into an
agreement of composition with creditors, or the filing of a receivership or similar proceeding with respect
to Lessee or the imposition of a lien or encumbrance on the Property other than a Permitted Encumbrance;
or
(d) Any representation or warranty of Lessee in this Master Lease or in a Lease Supplement shall be untrue
in a material respect.
9.2 Remedies on Default.
(a) Whenever any Event of Default shall have occurred, Lessor or its assigns may take any one or more of
the following remedial steps: Terminate any or all of the Leases in which it has an interest and declare all
installments of Rentals for such Leases payable for the remainder of the then current calendar year (if an
appropriation has been made therefor) to be immediately due and payable; take possession of any or all of
the Property in which it has an interest with or without terminating the pertinent Leases and without any
liability to Lessee for such repossession, and lease or sell or relet all or any portion of such Property; take
whatever action at law or in equity which may appear necessary or desirable to collect the amounts then
due and thereafter to become due to it, or to enforce performance and observance of any obligation,
agreement or covenant of Lessee under this Master Lease; take such other actions or remedies permitted by
law or the tenns of this Master Lease.
(b) Following an Event of Default, with respect to any item of Property or Lease, Lessor or its assigns may
exercise the rights and remedies with respect to an Event of Default set forth in this Master Lease,
including without limiting the generality of the foregoing, termination of Leases in which it has an interest
and acceleration of the related Rentals to the extent provided in (a) above, as to any or all Property in
which it has an interest or any or all Leases in which it has an interest whether or not otherwise in default.
All remedies hereunder are cumulative. No exercise of a remedy hereunder shall be deemed an election or
preclude the use of another remedy.
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ARTICLE X
MISCELLANEOUS
10.1 Notices. All notices, statements, demands, requests, consents, approvals, authorizations, offers,
agreements, appointments or designations hereunder by either party to the other shall be in writing and
shall be sufficiently given and served upon the other party, if sent by United States registered mail, return
receipt requested, postage prepaid and addressed as follows: If to GMA: Georgia Municipal Association,
Inc., 201 Pryor Street, S.W., Atlanta, Georgia 30303, Attention: Lease Program Manager. If to the Servicer
or a Lessor: at the addresses provided from time to time to the Lessee. If to the Lessee: at the address set
forth by its signature below. Any such person may by notice indicate another address.
10.2 Miscellaneous. This Master Lease is made under the Constitution and laws of the State of Georgia
and is to be so construed. This Master Lease may be simultaneously executed in any number of
counterparts. If any one or more of the terms, provisions, promises, covenants or conditions of this Master
Lease, or the application thereof to any person or circumstance, shall to any extent be adjudged invalid,
unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and
all of the remaining terms, provisions, promises, covenants and conditions of this Master Lease shall not be
affected thereby and shall be valid and enforceable to the fullest extent permitted by law. This Master
Lease and the covenants, conditions and agreements herein contained shall be binding upon and inure to
the benefit of the permitted successors and assigns of the parties hereto. The captions and headings used
throughout this Master Lease are for convenience of reference only, and the words contained herein shall
not be deemed to affect the meaning of any provision or the scope or intent of this Master Lease, nor in any
way affect this Master Lease. This Master Lease shall not be construed against the drafting party, but shall
be construed to accomplish its purposes and its intended meaning. This Master Lease and the Exhibits
hereto, which are incorporated herein by this reference, constitute the entire agreement of the parties. No
agreement shall be effective to amend this Master Lease unless such agreement is in writing and signed by
the parties hereto. Time is of the essence to this Master Lease Agreement and to each and all of the
provisions hereof.
10.3 Survival. All representations, warranties, covenants and agreements of Lessee made herein or in any
other document or certificate referred to herein or contemplated hereby are material, shall be deemed to
have been relied upon by Lessor and shall survive the execution and delivery of this Master Lease and any
Lease Supplement and the expiration of the Lease Terms.
10.4 Term of Agreement. This Master Lease may be terminated by either Lessee or GMA by written
notice to the other and to the Servicer when no Leases are outstanding hereunder. Otherwise, this Master
Lease will continue for a term of thirty (30) years, subject to renewal by mutual consent of Lessor and
Lessee.
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IN WITNESS WHEREOF, GMA AND LESSEE HAVE CAUSED THIS MASTER LEASE TO
BE EXECUTED UNDER SEAL BY THEIR DULY AUTHORIZED OFFICERS, AS OF
, 2000.
LESSOR: GEORGIA MUNICIPAL ASSOCIATION, INC.
(SEAL)
By:
Executive Director
Attest:
Lease Program Administrator
Date of Execution:
LESSEE: CITY OF TYBEE I LAND
(SEAL)
Signed by: 1 c
Print Name: WRUTELt�Prz 6r
Address:
Attn:
Title: 01)K1GIbr'
Attested
Print Na ' Ac._qtAlf
Title: 'Counc L
Date: ci • „. a - a co o
EXHIBITS
A. Property Types and Maximum Leasing Periods
B. Notice of Intent to Lease
C. Master Lease Ordinance/Resolution
D. City Attorney Opinion (Master Lease)
E. Form of Lease Supplement
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TYPES
EXHIBIT "A"
PROPERTY TYPES AND MAXIMUM LEASING PERIODS
MAXIMUM LEASING PERIOD
Police Cars 36 Months
Staff Vehicles 48 Months
Pickup Trucks 48 Months
School Buses 48 Months
Fire Trucks 120 Months
Bulldozers 60 Months
Motor Graders 60 Months
Ambulances 48 Months
Paving Equipment 60 Months
Dump Trucks 60 Months
Garbage Trucks 60 Months
Street Sweepers 60 Months
Modular Buildings 60 Months
Street Lighting and Traffic Control Equipment 36 Months
Telecommunication Systems,
911 Systems, Voice or Voice -Data Systems 36 Months ,
Computer Systems (software & other
soft costs not to exceed 20 %) 36 Months
* Servicer may in particular instances permit different maximum leasing periods or may
permit addition types of equipment and the leasing of real estate for such terms as
Servicer may allow.
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This page is for reference only. The city may keep this for future use.
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5 -156 As Builts Drawing Req
ORDINANCE NO. 2000-23
It is hereby ordained by the governing authority of the City of Tybee Island, in open meeting
assembled, that the Tybee island Code of Ordinances, Title 8 Land Development Code, Article 5
Procedures for Administration and Enforcement, Section 156 As Built Drawing Requirement, be
amended by the addition of the following paragraph to read as follows:
Section 1. A new Section 5-156 is hereby added to read as follows
5 -156 AS BUILT DRAWING REQUIREMENTS
On a project which site plan approval, special review, engineering or a drainage plan is required
by the Code of Ordinances, the owner, contractor or applicant shall file an "as built" plan certified by an
engineer or architect demonstrating compliance with the previously approved plans and identifying any
deviations therefrom. If there are deviations identified, the engineer or architect must certify that the
deviations will not materially adversely alter the storm water controls or drainage characteristics of the
original plan or that the deviations are within acceptable levels of tolerance recognized by the profession.
Until such certified "as built" plans are files, no certificates of occupancy may be issued. (ORD. 2000-
23; 9/14/2000)
Any ordinances in conflict herewith are repealed to the extent of the conflict and this Ordinance
shall have application to any violation of the Tybee Island Land Development Code of Ordinance
of the City of Tybee Island, Georgia.
Mayor Walter W. Parker
Jacquelyn R. Brown, Clerk of Council
1st Reading: 8/10/2000
2nd Reading: 9/14/2000
Enacted: 9/14/2000
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11 -1 -10 Sleeping on the streets
ORDINANCE NO. 2000-24
It is hereby ordained by the governing authority of the City of Tybee Island, in open
meeting assembled, that the Tybee Island Code of Ordinances, Title 11 General Offenses, Chapter
1 Personal Conduct, Section11 Sleeping on the streets, beaches, parks, parking lots and other
public areas, be amended by the addition of the following paragraph to read as follows:
Section 1. A new Section 11 -1 -10 is hereby added to read as follows
11 -1 -10 Speeling on streets, beaches, parks, parking lots and other public areas
It shall be unlawful for any person to camp or sleep on the streets, beaches, parks, parking lots or other
public areas, whether in automobiles, trucks, campers, recreational vehicles or other vehicle, or in
equipment designed and intended for the purpose of camping. Such activity may be permitted in public
areas specifically set aside and designated for that purpose. Any Person suspected of such activity may
be charged with a misdemeanor and fined in accordance with Section 1 -1 -8. (ORD. 2000 -24; 9/14/2000)
Any ordinances in conflict herewith are repealed to the extent of the conflict and this
Ordinance shall have application to any violation of the Tybee Island Code of Ordinance of
the City of Tybee Island, Georgia.
Adopted this 14th day of September, 2000
Mayor Walter W. Parker
City Clerk
1st Reading: 8/10 -2000
2nd Reading: 9/14/2000
Enacted: 9/14/2000
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2-4 -21 Use of City Vehicles
ORDINANCE NO.
It is hereby ordained by the governing authority of the City of Tybee Island, in open
meeting assembled, that the Tybee Island Code of Ordinances, Title 2 Government and
Administration, Chapter 4 Personnel, Section 21 Use of City Vehicles, be amended to read as
follows:
Section 1. Section 2 -4-21 is hereby amended to read as follows
2 -4-21 Use of City Vehicles
(a) License requirements. Employees driving city vehicles are required to
have such driver's licenses for the vehicles being driven as is required by
the Georgia state law, irrespective of whether the employee drives the
vehicle on a regular, occasional, or other basis, and whether or not this
requirement is included or omitted in the description of the class to
which the employee was appointed. Violation citations, fines or other
actions taken by any police jurisdiction against any employee while
driving a city vehicle in violation of this rule shall be the responsibility
of the employee and may be cause for disciplinary action.
(b)Abuse of vehicles. Anyone misusing or abusing city vehicles, using a city
vehicle for other than approved purposes, or taking a vehicle home when not
approved, shall be subject to appropriate disciplinary action, including dismissal
if deemed appropriate.
(Ord. of 8- 12 -81, Sec. 21)
c) Use of City vehicles by employees. City employees, pia - r
hose -obs include the use of a City vehicle are authorized to drive
er- residence.(ORD.1996 -05; 4/11/96)(Ord. 2000 -25; 9/14/2000)
Any ordinances in conflict herewith are repealed to the extent of the conflict and this
Ordinance shall have application to any violation of the Tybee Island Code of Ordinance of
the City of Tybee Island, Georgia.
Adopted this 14th day of September, 2000
Mayor Walter W. Parker
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2-4 -21 Use of City Vehicles
City Clerk
1st Reading: Aug 10, 2000
2nd Reading: September 14, 2000
Enacted: September 14, 2000
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3 -2 -11
ORDINANCE NO.
It is hereby ordained by the governing authority of the City of Tybee Island, in open
meeting assembled, that the Tybee Island Code of Ordinances, Title3 Finance and Taxaation,
Chapter 2 Taxation and Revenue, Section 11 Levy; Tax Rate, be amended by the addition of (b)(5)
Deadline for Filing to read as follows:
Section 1. Section 3 -2 -11 is hereby amended to read as follows
3 -2 -11 LEVY; TAX RATE
a) An annual ad valorem tax upon all real and personal property within the city is
hereby levied. The millage rate therefor shall be established each year by
resolution of the mayor and council. The rate shall be a total of the rates
authorized by law for general, recreation, education and debt retirement needs of
the city.
b) Individuals qualifying for the City of Tybee Island Homestead Exemption shall be granted
such exemption as follows.
1. Each resident of the City of Tybee Island who is a senior citizen is granted an
exemption on that person's homestead from all ad valorem taxes for city purposes in an
amount equal to the amount of assessed value of that homestead which exceeds the
assessed value of that homestead for the taxable year immediately preceding the taxable
year in which this exemption is first granted to such resident if that person's income,
together with the income of the spouse of such person and any other person who resides
within such homestead, does not exceed $30,000 for the immediately preceding taxable
year. This exemption shall not apply to taxes assessed on improvements to the homestead
or additional land that is added to the homestead after January 1 of the base year. If any
real property is removed from the homestead, the assessment in the base year shall be
recalculated accordingly.
2) "Income" means federal adjusted gross income, as defined in the Internal Revenue
Code of 1986,as amended, from all sources.
3) "Senior Citizen" means a person who is 62 years of age or over on or before January 1
of the year in which application for the exemption under this code section is made.
4) "Base year" means the taxable year immediately preceding the taxable year in which
the exemption under this Act is granted. (ORD.1997 -9; 5/1/97)
(Ord. 2000 -26; 9/14/2000)
Any ordinances in conflict herewith are repealed to the extent of the conflict and this
Ordinance shall have application to any violation of the Tybee Island Code of Ordinance of
the City of Tybee Island, Georgia.
Adopted this 14th day of September , 2000
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Mayor Walter W. Parker
City Clerk
1st Reading: 8/10/2000
2nd Reading: 9/14/2000
Enacted: 9/14/2000
3 -2 -11
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