HB 1862 - City of Grantville Utilities Authority; create
Georgia House of Representatives - 1995/1996 Sessions
HB 1862 - City of Grantville Utilities Authority; create
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12/ 13/ 14/ 15
1. Brooks 103rd 2. Westmoreland 104th 3. Yates 106th
4. Epps 131st
House Comm: LLeg / Senate Comm: SLGO /
House Vote: Yeas 129 Nays 0 Senate Vote: Yeas 47 Nays 0
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House Action Senate
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3/5/96 Read 1st Time 3/8/96
3/6/96 Read 2nd Time
3/7/96 Favorably Reported 3/13/96
3/7/96 Read 3rd Time
3/7/96 Passed/Adopted 3/13/96
3/28/96 Sent to Governor
4/1/96 Signed by Governor
689 Act/Veto Number
4/1/96 Effective Date
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Immediately Transmitted to the House
Code Sections amended:
HB 1862 LC 22 2274ER
A BILL TO BE ENTITLED
AN ACT
1- 1 To create the City of Grantville Utilities Authority; to
1- 2 provide definitions; to provide for directors and their
1- 3 appointment, terms of office, vacancies, powers,
1- 4 compensation, and qualifications; to provide for powers of
1- 5 such authority; to provide for the issuance of negotiable
1- 6 revenue bonds; to provide for the form, denominations,
1- 7 registration, and place of payment of such bonds; to provide
1- 8 for signatures and seals on such bonds; to provide for
1- 9 negotiability and exemption from taxation; to provide for
1-10 the sale and price of such bonds; to provide for the use of
1-11 the proceeds of such bonds; to provide for interim receipts
1-12 and certificates and temporary bonds; to provide for
1-13 replacement of lost, mutilated, or destroyed bonds; to
1-14 provide for conditions precedent to issuance of bonds; to
1-15 provide that such bonds are not a debt of the city; to
1-16 provide for trust indentures, trustees, and a sinking fund;
1-17 to provide for remedies of bondholders; to provide for
1-18 refunding bonds; to provide for venue and jurisdiction; to
1-19 provide for validation of bonds; to provide that the powers
1-20 and duties of the authority shall not be diminished or
1-21 impaired while bonds are outstanding; to provide for trust
1-22 funds; to provide for the purpose of the authority; to
1-23 provide for rates, charges, and revenues; to provide for
1-24 rules and regulations; to provide for tort immunity for the
1-25 authority and its officers, agents, and employees; to
1-26 provide that no obligation of the authority shall be an
1-27 obligation of the city; to provide for oversight by the city
1-28 governing authority; to provide for dissolution of the
1-29 authority and its assets, revenues, and liabilities; to
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1-31 provide for effect on the powers of the City of Grantville;
1-32 to repeal conflicting laws; and for other purposes.
1-33 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
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LC 22 2274ER
SECTION 1.
2- 1 (1) "Authority" shall mean the City of Grantville
2- 2 Utilities Authority created by Section 2 of this Act.
2- 3 (2) "Cost of the project" shall embrace the cost of
2- 4 construction; the cost of all lands, properties, rights,
2- 5 easements, and franchises acquired; the cost of all
2- 6 machinery and equipment; financing charges; interest
2- 7 prior to and during construction and for one year after
2- 8 completion of construction; the cost of engineering,
2- 9 architectural, and legal expenses; the cost of plans and
2-10 specifications, and other expenses necessary or incident
2-11 to determining the feasibility or practicability of the
2-12 project; administrative expense; and such other expenses
2-13 as may be necessary or incident to the financing
2-14 authorized in this Act, the construction of any project,
2-15 the placing of the same in operation, and the
2-16 condemnation of property necessary for such construction
2-17 and operation. Any obligation or expense incurred for
2-18 any of the foregoing purposes shall be regarded as a
2-19 part of the cost of the project and may be paid or
2-20 reimbursed as such out of the proceeds of revenue bonds
2-21 issued under the provisions of this Act for such
2-22 project.
2-23 (3) "Project" shall mean and include the acquisition and
2-24 construction of all necessary and usual water facilities
2-25 useful and necessary for the obtaining of one or more
2-26 sources of water supply; the treatment of water and the
2-27 distribution and sale of water to users and consumers
2-28 including counties and municipalities for the purpose of
2-29 resale inside and outside the territorial boundaries of
2-30 the City of Grantville; and the operation, maintenance,
2-31 additions, improvements, and extensions of such
2-32 facilities so as to assure an adequate water utility
2-33 system deemed by the authority necessary or convenient
2-34 for the efficient operation of such type of undertaking;
2-35 the acquisition, construction, equipping, operation, and
2-36 maintenance of sewerage facilities useful and necessary
2-37 for the gathering of waste matter and the treatment of
2-38 sewage of any and every type, including but not limited
2-39 to the acquisition and construction of treatment ponds,
2-40 plans, and lagoons and additions and improvements to and
2-41 extensions of such facilities inside and outside the
2-42 territorial boundaries of the City of Grantville so as
2-43 to assure an adequate sewerage system, the distribution
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LC 22 2274ER
3- 1 and sale of cable television services and natural gas to
3- 2 individuals, private concerns, and municipal
3- 3 corporations.
3- 4 (4) "Revenue bonds" and "bonds" shall mean revenue bonds
3- 5 as defined and provided for in Article 3 of Chapter 82
3- 6 of Title 36 of the O.C.G.A., as now or hereafter
3- 7 amended, known as the "Revenue Bond Law," and such
3- 8 obligations may be issued by the authority as authorized
3- 9 under said "Revenue Bond Law" and any amendments thereto
3-10 and, in addition, shall mean obligations of the
3-11 authority the issuance of which are specifically
3-12 provided for in this Act.
3-13 (5) Any project shall be deemed "self-liquidating" if,
3-14 in the judgment of the authority, the revenues and
3-15 earnings to be derived by the authority therefrom will
3-16 be sufficient to pay the cost of operating, maintaining,
3-17 repairing, improving, and extending the project and to
3-18 pay the principal and interest of the revenue bonds
3-19 which may be issued for the cost of such project or
3-20 projects.
SECTION 2.
3-21 At the first regular meeting of the mayor and council of the
3-22 City of Grantville following the enactment of this Act, that
3-23 body may elect three utility directors. The term of office
3-24 of the directors elected under this Act shall be as follows:
3-25 one shall be elected for two years; one for four years; and
3-26 one for six years; the term of office of the directors first
3-27 elected by the mayor and council shall be fixed in the
3-28 discretion of said mayor and council, provided, that they
3-29 comply with this Act. At the expiration of any director's
3-30 term of office, the mayor and council shall elect a
3-31 successor for a term of six years; provided, however, that
3-32 vacancies caused by death, resignation, or removal shall be
3-33 filled by said mayor and council for the unexpired term of
3-34 the director withdrawing.
SECTION 3.
3-35 The three directors elected in accordance with the
3-36 provisions of Section 2 of this Act shall constitute the
3-37 utility authority.
SECTION 4.
3-38 Immediately after the election of the directors, it shall be
3-39 their duty to enter upon their duties as directors of
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LC 22 2274ER
4- 1 utilities of the City of Grantville. The authority shall
4- 2 have complete control and management of all utilities of the
4- 3 City of Grantville. The authority is empowered to charge
4- 4 the citizens of Grantville and all persons, firms, or
4- 5 corporations such sums as they may deem just and proper for
4- 6 the use of said utilities. The authority shall have power
4- 7 to make all rules and regulations as in their discretion are
4- 8 necessary for the proper management and control of all
4- 9 utilities, as designated by the mayor and city council of
4-10 said city, and shall have power to enforce said rules and
4-11 regulations by refusing to supply or discontinuing the
4-12 supply to any person, firm, or corporation who fails or
4-13 refuses to comply with said rules and regulations.
SECTION 5.
4-14 Each of said directors shall receive $100.00 per month for
4-15 his or her services.
SECTION 6.
4-16 No person holding a commission as an officer of the city
4-17 shall be eligible to election as director of utilities of
4-18 the City of Grantville.
SECTION 7.
4-19 The authority shall have the power:
4-20 (1) To have a seal and alter the same at pleasure;
4-21 (2) To acquire by purchase, lease, or otherwise and to
4-22 hold, lease, and dispose of real and personal property
4-23 of every kind and character for its corporate purposes;
4-24 (3) To acquire in its own name by purchase on such terms
4-25 and conditions and in such manner as it may deem proper
4-26 or by condemnation in accordance with the provisions of
4-27 any and all existing laws applicable to the condemnation
4-28 of property for public use real property or rights of
4-29 easements therein or franchises necessary or convenient
4-30 for its corporate purposes and to use the same so long
4-31 as its corporate existence shall continue and to lease
4-32 or make contracts with respect to the use of or dispose
4-33 of the same in any manner it deems to the best advantage
4-34 of the authority. The authority shall be under no
4-35 obligation to accept and pay for any property condemned
4-36 under this Act except from the fund provided under this
4-37 Act, and in any proceedings to condemn, such orders may
4-38 be made by the court having jurisdiction of the suit,
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LC 22 2274ER
5- 1 action, or proceedings as may be just to the authority
5- 2 and to the owners of the property to be condemned. No
5- 3 property shall be acquired under the provisions of this
5- 4 Act upon which any lien or other encumbrance exists
5- 5 unless, at the time such property is so acquired, a
5- 6 sufficient sum of money is deposited in trust to pay and
5- 7 redeem the fair value of such lien or encumbrance. If
5- 8 the authority shall deem it expedient to construct any
5- 9 project on any other lands the title to which shall then
5-10 be in the State of Georgia, the Governor is authorized
5-11 to convey, for and in behalf of the state, title to such
5-12 lands to the authority upon payment to the state
5-13 treasurer for the credit of the general fund of the
5-14 state of the reasonable value of such lands, such value
5-15 to be determined by three appraisers to be agreed upon
5-16 by the Governor and the chairperson of the authority;
5-17 (4) To appoint, select, and employ officers, agents, and
5-18 employees, including engineering, architectural, and
5-19 construction experts, fiscal agents, and attorneys, and
5-20 to fix their respective compensations;
5-21 (5) To make contracts and leases and to execute all
5-22 instruments necessary or convenient, including contracts
5-23 for construction and leases of projects or contracts
5-24 with respect to the use of projects which it causes to
5-25 be erected or acquired. Any and all persons, firms, and
5-26 corporations and any and all political subdivisions,
5-27 departments, institutions, or agencies of the state are
5-28 authorized to enter into contracts, leases, or
5-29 agreements with the authority upon such terms and for
5-30 such purposes as they deem advisable; and without
5-31 limiting the generality of the above, authority is
5-32 specifically granted to municipal corporations and
5-33 counties and to the authority to enter into contracts,
5-34 lease agreements, or other undertakings relative to the
5-35 furnishing of water, sewer, cable television, and
5-36 natural gas and related services and facilities by the
5-37 authority to such municipal corporations and counties
5-38 for a term not exceeding 50 years;
5-39 (6) To construct, erect, acquire, own, repair, remodel,
5-40 maintain, add to, extend, improve, equip, operate, and
5-41 manage projects as defined in this Act, the cost of any
5-42 such projects to be paid in whole or in part from the
5-43 proceeds of revenue bonds of the authority or from such
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LC 22 2274ER
6- 1 proceeds and any grant from the United States or any
6- 2 agency or instrumentality thereof;
6- 3 (7) To accept loans or grants of money or materials or
6- 4 property of any kind from the United States or any
6- 5 agency or instrumentality thereof, including the
6- 6 Reconstruction Finance Corporation, upon such terms and
6- 7 conditions as the United States or such agency or
6- 8 instrumentality, including the Reconstruction Finance
6- 9 Corporation, may impose;
6-10 (8) To borrow money for any of its corporate purposes
6-11 and to issue negotiable revenue bonds payable solely
6-12 from funds pledged for that purpose and to provide for
6-13 the payment of the same and for the rights of the
6-14 holders thereof;
6-15 (9) To exercise any power usually possessed by private
6-16 corporations performing similar functions which is not
6-17 in conflict with the Constitution and laws of this
6-18 state; and
6-19 (10) To do all things necessary or convenient to carry
6-20 out the powers expressly given in this Act.
SECTION 8.
6-21 The authority, or any authority or body which has or which
6-22 may in the future succeed to the powers, duties, and
6-23 liabilities vested in the authority created by this Act,
6-24 shall have power and is authorized at one time, or from time
6-25 to time, to provide by resolution for the issuance of
6-26 negotiable revenue bonds of the authority for the purpose of
6-27 paying all or any part of the cost as defined in this Act of
6-28 any one or more projects. The principal and interest of
6-29 such revenue bonds shall be payable solely from the special
6-30 fund provided in this Act for such payment. The bonds of
6-31 each such issue shall be dated, shall bear interest at such
6-32 rate or rates per annum, payable at such time or times,
6-33 shall mature at such time or times not exceeding 40 years
6-34 from their date or dates, shall be payable in such medium of
6-35 payment as to both principal and interest was payable before
6-36 maturity at the option of the authority, at such price or
6-37 prices and under such terms and conditions as may be fixed
6-38 by the authority in the resolution providing for the
6-39 issuance of bonds.
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SECTION 9.
7- 1 The authority shall determine the form of the bonds,
7- 2 including any interest coupons to be attached thereto, and
7- 3 shall fix the denomination or denominations of the bonds and
7- 4 the place or places of payment of principal and interest
7- 5 thereof, which may be at any bank or trust company inside or
7- 6 outside the state. The bonds may be issued in coupon or
7- 7 registered form, or both, as the authority may determine,
7- 8 and provision may be made for the registration of any coupon
7- 9 bond as to principal alone and also as to both the principal
7-10 and interest.
SECTION 10.
7-11 In case any officer whose signature shall appear on any bond
7-12 or whose facsimile signature shall appear on any coupon
7-13 shall cease to be such officer before the delivery of such
7-14 bond, such signature shall nevertheless be valid and
7-15 sufficient for all purposes the same as if such officer had
7-16 remained in office until such delivery. All such bonds
7-17 shall be signed by the chairperson of the authority and the
7-18 official seal of the authority shall be affixed thereto and
7-19 attested by the secretary of the authority and any coupons
7-20 attached thereto shall bear the signature or facsimile
7-21 signature of the chairperson of the authority. Any coupon
7-22 may be signed, sealed, and attested on behalf of the
7-23 authority by such persons as at the actual time of the
7-24 execution of such bonds shall be duly authorized or hold the
7-25 proper office, although at the delivery date of such bonds
7-26 such persons may not be so authorized or shall not hold such
7-27 office.
SECTION 11.
7-28 All revenue bonds issued under the provisions of this Act
7-29 shall have and are declared to have all the qualities and
7-30 incidents of negotiable instruments under the negotiable
7-31 instruments law of the state. Such bonds and the income
7-32 thereof shall be exempt from all taxation within the state.
SECTION 12.
7-33 The authority may sell such bonds in such manner and for
7-34 such price as it may determine to be for the best interests
7-35 of the authority.
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SECTION 13.
8- 1 The proceeds of such bonds shall be used solely for the
8- 2 payment of the cost of the project or projects, and unless
8- 3 otherwise provided in the resolution authorizing the
8- 4 issuance of the bonds or in the trust indenture, additional
8- 5 bonds may in like manner be issued to provide the amount of
8- 6 any deficit, which unless otherwise provided in the
8- 7 resolution authorizing the issuance of the bonds or in the
8- 8 trust indenture, shall be deemed to be of the same issue and
8- 9 shall be entitled to payment from the same fund without
8-10 preference or priority of the bonds first issued for the
8-11 same purpose. If the proceeds of the bonds of any issue
8-12 shall exceed the amount required for the purpose for which
8-13 said bonds are issued, the surplus shall be paid into the
8-14 fund provided in this Act for the payment of principal and
8-15 interest of such bonds.
SECTION 14.
8-16 Prior to the preparation of definitive bonds, the authority
8-17 may under like restrictions issue interim receipts, interim
8-18 certificates, or temporary bonds with or without coupons
8-19 exchangeable for definitive bonds upon the issuance of the
8-20 latter.
SECTION 15.
8-21 The authority may also provide for the replacement of any
8-22 bond which shall be mutilated, destroyed, or lost.
SECTION 16.
8-23 Revenue bonds may be issued without any other proceedings or
8-24 the happening of any other conditions or things than those
8-25 proceedings, conditions, and things which are specified or
8-26 required by this Act. In the discretion of the authority,
8-27 revenue bonds of a single issue may be issued for the
8-28 purpose of any particular project. Any resolution providing
8-29 for the issuance of revenue bonds under the provisions of
8-30 this Act shall become effective immediately upon its passage
8-31 and need not be published or posted, and any such resolution
8-32 may be passed at any regular, special, or adjourned meeting
8-33 of the authority by a majority of its members.
SECTION 17.
8-34 Revenue bonds issued under the provisions of this Act shall
8-35 not be deemed to constitute a debt of the City of Grantville
8-36 or a pledge of the faith and credit of the City of
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9- 1 Grantville, but such bonds shall be payable solely from the
9- 2 fund provided for in this Act and the issuance of such
9- 3 revenue bonds shall not directly, indirectly, or
9- 4 contingently obligate the city to levy or to pledge any form
9- 5 of taxation whatever therefor or to make any appropriation
9- 6 for the payment thereof, and all such bonds shall contain
9- 7 recitals on their face covering substantially the foregoing
9- 8 provisions of this section.
SECTION 18.
9- 9 In the discretion of the authority, any issue of such
9-10 revenue bonds may be secured by a trust indenture by and
9-11 between the authority and a corporate trustee, which may be
9-12 any trust company or bank having the powers of a trust
9-13 company inside or outside the state. Such trust indenture
9-14 may pledge or assign fees, tolls, revenues, and earnings to
9-15 be received by the authority. Either the resolution
9-16 providing for the issuance of revenue bonds or such trust
9-17 indenture may contain such provisions for protecting and
9-18 enforcing the rights and remedies of the bondholders as may
9-19 be reasonable and proper and not in violation of law,
9-20 including covenants setting forth the duties of the
9-21 authority in relation to the acquisition of property, the
9-22 construction of the project, the maintenance, operation,
9-23 repair, and insurance of the project, and the custody,
9-24 safeguarding, and application of all moneys and may further
9-25 provide that any project shall be constructed and paid for
9-26 under the supervision and approval of consulting engineers
9-27 or architects employed or designated by the authority and
9-28 satisfactory to the original purchasers of the bonds issued
9-29 therefor and may further require that the security given by
9-30 contractors and by any depositary of the proceeds of the
9-31 bonds or revenues or other moneys be satisfactory to such
9-32 purchasers and may also contain provisions concerning the
9-33 conditions, if any, upon which additional revenue bonds may
9-34 be issued. It shall be lawful for any bank or trust company
9-35 incorporated under the laws of this state to act as such
9-36 depositary and to furnish such indemnifying bonds or pledge
9-37 such securities as may be required by the authority. Such
9-38 indenture may set forth the rights and remedies of the
9-39 bondholders and of the trustee and may restrict the
9-40 individual right of action of bondholders as is customary in
9-41 trust indentures securing bonds and debentures of
9-42 corporations. In addition to the foregoing, such trust
9-43 indenture may be treated as a part of the cost of
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10- 1 maintenance, operation, and repair of the project affected
10- 2 by such indenture.
SECTION 19.
10- 3 The authority shall, in the resolution providing for the
10- 4 issuance of revenue bonds or in the trust indenture, provide
10- 5 for the payment of the proceeds of the sale of the bonds to
10- 6 any officer or person who or any agency, bank, or trust
10- 7 company which shall act as trustee of such funds and shall
10- 8 hold and apply the same to the purposes of this Act, subject
10- 9 to such regulations as this Act and such resolution or trust
10-10 indenture may provide.
SECTION 20.
10-11 The revenues, fees, tolls, and earnings derived from any
10-12 particular project or projects, regardless of whether or not
10-13 such fees, earnings, and revenues were produced by a
10-14 particular project for which bonds have been issued unless
10-15 otherwise pledged and allocated may be pledged and allocated
10-16 by the authority to the payment of the principal and
10-17 interest on revenue bonds of the authority as the resolution
10-18 authorizing the issuance of the bonds or in the trust
10-19 instrument may provide, and such funds so pledged from
10-20 whatever source received, which said pledge may include
10-21 funds received from one or more or all sources, shall be set
10-22 aside at regular intervals as may be provided in the
10-23 resolution or trust indenture into a sinking fund, which
10-24 sinking fund shall be pledged to and charged with the
10-25 payments of:
10-26 (1) The interest upon such revenue bonds as such
10-27 interest shall fall due;
10-28 (2) The principal of the bonds as the same shall fall
10-29 due;
10-30 (3) The necessary charges of paying agents for paying
10-31 principal and interest; and
10-32 (4) Any premium upon bonds retired by call or purchase
10-33 as provided in this Act.
10-34 The use and disposition of such sinking fund shall be
10-35 subject to such regulations as may be provided in the
10-36 resolution authorizing the issuance of the revenue bonds or
10-37 in the trust indenture, but, except as may otherwise be
10-38 provided in such resolution or trust indenture, such sinking
10-39 fund shall be a fund for the benefit of all revenue bonds
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11- 1 without distinction or priority of one over another.
11- 2 Subject to the provisions of the resolution authorizing the
11- 3 issuance of the bonds or the trust indenture, surplus moneys
11- 4 in the sinking fund may be applied to the purchase or
11- 5 redemption of bonds and any such bonds so purchased or
11- 6 redeemed shall forthwith be canceled and shall not again be
11- 7 issued.
SECTION 21.
11- 8 Except to the extent of the rights provided in this Act, any
11- 9 holder of revenue bonds or any of the coupons appertaining
11-10 thereto issued under the provisions of this Act and the
11-11 trustee under the trust indenture, if any, may be restricted
11-12 by resolution passed before the issuance of the bonds or by
11-13 the trust indenture and may either at law or in equity or by
11-14 suit, action, mandamus, or other proceedings protect and
11-15 enforce any and all rights under the laws of the State of
11-16 Georgia or granted by this Act or under such resolution or
11-17 trust indenture and may enforce and compel performance of
11-18 all duties required by this Act or by such resolution or
11-19 trust indenture to be performed by the authority or any
11-20 officer thereof, including the fixing, charging, and
11-21 collecting of revenues, fees, tolls, and other charges for
11-22 the use of the facilities and services furnished.
SECTION 22.
11-23 The authority is authorized to provide by resolution for the
11-24 issue of revenue refunding bonds of the authority for the
11-25 purpose of refunding any revenue bonds issued under the
11-26 provisions of this Act and then outstanding, together with
11-27 accrued interest thereon. The issuance of such revenue
11-28 refunding bonds, the maturities and all other details
11-29 thereof, the rights of the holders thereof, and the duties
11-30 of the authority in respect to the same shall be governed by
11-31 the foregoing provisions of this Act insofar as the same may
11-32 be applicable.
SECTION 23.
11-33 Any action to protect or enforce any rights under the
11-34 provisions of this Act or any suit or action against such
11-35 authority shall be brought in the Superior Court of Coweta
11-36 County, Georgia, and any action pertaining to validation of
11-37 any bonds issued under the provisions of this Act shall
11-38 likewise be brought in said court which shall have
11-39 exclusive, original jurisdiction of such actions.
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SECTION 24.
12- 1 Bonds of the authority shall be confirmed and validated in
12- 2 accordance with the procedure of Article 3 of Chapter 82 of
12- 3 Title 36 of the O.C.G.A, the "Revenue Bond Law." The
12- 4 petition for validation shall also make a party defendant to
12- 5 such action any municipality, county, authority,
12- 6 subdivision, or instrumentality of the State of Georgia
12- 7 which has contracted with the authority for the services and
12- 8 facilities of the water system or other utilities for which
12- 9 bonds are to be issued and sought to be validated and such
12-10 municipality, county, authority, subdivision, or
12-11 instrumentality shall be required to show cause, if any, why
12-12 such contract or contracts and the terms and conditions
12-13 thereof should not be inquired into by the court and the
12-14 validity of the terms thereof be determined and the contract
12-15 or contracts adjudicated as security for the payment of any
12-16 such bonds of the authority. The bonds, when validated, and
12-17 the judgment of validation shall be final and conclusive
12-18 with respect to such bonds against the authority issuing the
12-19 same, and any municipality, county, authority, subdivision,
12-20 or instrumentality contracting with authority.
SECTION 25.
12-21 While any of the bonds issued by the authority remain
12-22 outstanding, the powers, duties, or existence of the
12-23 authority or of its officers, employees, or agents shall not
12-24 be diminished or impaired in any manner that will affect
12-25 adversely the interests and rights of the holders of such
12-26 bonds, and no other entity, department, agency, or authority
12-27 will be created which will compete with the authority to
12-28 such an extent as to affect adversely the interests and
12-29 rights of the holders of such bonds, nor will the state
12-30 itself so compete with the authority. The provisions of
12-31 this Act shall be for the benefit of the authority and the
12-32 holders of any such bonds and, upon the issuance of bonds
12-33 under the provisions of this Act, shall constitute a
12-34 contract with the holders of such bonds.
SECTION 26.
12-35 All moneys received pursuant to the authority of this Act,
12-36 whether as proceeds from the sale of revenue bonds, as
12-37 grants or other contributions, or as revenues, fees, and
12-38 earnings, shall be deemed to be trust funds to be held and
12-39 applied solely as provided in this Act.
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SECTION 27.
13- 1 Without limiting the generality of any provisions of this
13- 2 Act, the general purpose of the authority is declared to be
13- 3 that of acquiring, constructing, operating, and maintaining
13- 4 self-liquidating projects embracing sources of water supply
13- 5 and the distribution and sale of water and related
13- 6 facilities to individuals, private concerns, and municipal
13- 7 corporations; the acquisition, construction, equipping,
13- 8 operation, and maintenance of sewerage facilities useful and
13- 9 necessary for the gathering of waste matter and the
13-10 treatment of sewage of any and every type, including but not
13-11 limited to the acquisition and construction of treatment
13-12 ponds, plants, and lagoons and additions and improvements to
13-13 and extensions of such facilities inside and outside the
13-14 territorial boundaries of the City of Grantville so as to
13-15 assure an adequate sewerage system; and to operate and
13-16 maintain the distribution and sale of cable television
13-17 services, natural gas, and any other utility so identified
13-18 by the governing authority of the City of Grantville to
13-19 individuals, private concerns, and municipal corporations,
13-20 provided that such general purpose shall not restrict the
13-21 authority from selling and delivering such utilities
13-22 directly to consumers in the unincorporated areas of Coweta
13-23 County.
SECTION 28.
13-24 The authority is authorized to prescribe, fix, and collect
13-25 rates, fees, tolls, or charges and to revise from time to
13-26 time the same for the services, facilities, or commodities
13-27 furnished and, in anticipation of the collection of the
13-28 revenues of such undertaking or project, to issue revenue
13-29 bonds as provided in this Act to finance in whole or in part
13-30 the cost of the acquisition, construction, reconstruction,
13-31 improvements, betterment, or extension of the water utility
13-32 system and other utilities and to pledge to the punctual
13-33 payment of said bonds and interest thereon all or any part
13-34 of the revenues of such undertaking or project, including
13-35 the revenues of improvements, betterments, or extensions
13-36 thereto thereafter made.
SECTION 29.
13-37 It shall be the duty of the authority to prescribe rules and
13-38 regulations for the operation of the project or projects
13-39 constructed under the provisions of this Act, including the
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14- 1 basis on which water service and other utilities and
14- 2 facilities shall be furnished.
SECTION 30.
14- 3 The authority shall have the same immunity and exemption
14- 4 from liability for torts and negligence as the City of
14- 5 Grantville; and the officers, agents, and employees of the
14- 6 authority when in the performance of the work of the
14- 7 authority shall have the same immunity and exemption from
14- 8 liability for torts and negligence as the officers, agents,
14- 9 and employees of the City of Grantville when in the
14-10 performance of their public duties or the work of the
14-11 authority.
SECTION 31.
14-12 The foregoing sections of this Act shall be deemed to
14-13 provide an additional and alternative method for the doing
14-14 of the things authorized by this Act and shall be regarded
14-15 as supplemental and additional to powers conferred by other
14-16 laws and shall not be regarded as in derogation of any
14-17 powers now existing.
SECTION 32.
14-18 The authority shall have no power or authority to bind the
14-19 city by any contract, agreement, financial obligation or
14-20 indebtedness, or otherwise, and no contract, agreement,
14-21 financial obligation or indebtedness incurred by the
14-22 authority shall ever be a claim or charge against the city
14-23 provided that both the authority and the city shall be bound
14-24 to each other by contracts, agreements, financial
14-25 obligations, or indebtedness between themselves.
SECTION 33.
14-26 The city council shall be authorized by and through a
14-27 committee of their own number, or by any one or more persons
14-28 they may select, to investigate the state and condition of
14-29 the authority and to inspect its properties and all books
14-30 and records pertaining to the authority and its affairs, and
14-31 the authority shall cooperate and assist in such
14-32 investigations and inspections.
SECTION 34.
14-33 The authority may be dissolved only by local Act of the
14-34 General Assembly. Unless otherwise provided in such local
14-35 Act, all assets, revenues, and liabilities of the authority
14-36 shall become, by operation of this provision and without the
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15- 1 need for separate conveyances or instruments of assumption,
15- 2 the assets, revenues, and liabilities of the city subject to
15- 3 any liens, leases, pledges, or other encumbrances
15- 4 outstanding against or in respect to such assets and
15- 5 revenues at the time of such dissolution, provided that the
15- 6 liabilities of the authority which become liabilities of the
15- 7 city shall be payable by the city only from the same moneys
15- 8 and investment securities, pledged funds, and accounts and
15- 9 sources of revenues from which they were payable by the
15-10 authority prior to such dissolution.
SECTION 35.
15-11 This Act, being for the welfare of various political
15-12 subdivisions of the state and its inhabitants, shall be
15-13 liberally constructed to effect the purposes of this Act.
SECTION 36.
15-14 The provisions of this Act are severable and, if any of its
15-15 provisions shall be held unconstitutional by any court of
15-16 competent jurisdiction, the decisions of such court shall
15-17 not affect or impair any of the remaining provisions.
SECTION 37.
15-18 This Act does not in any way take from the City of
15-19 Grantville the authority to own, operate, and maintain
15-20 utility systems or issue revenue certificates as is provided
15-21 by Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the
15-22 "Revenue Bond Law."
SECTION 38.
15-23 All laws and parts of laws in conflict with this Act are
15-24 repealed.
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97