House Bill 398
By: Representatives Channell of the 111th, Parham of the 122nd and
Hudson of the 120th
A BILL TO BE ENTITLED
AN ACT
To create the Sinclair Water Authority to provide for water projects in
Baldwin and Putnam counties; to provide for a short title, legislative
intent, and purpose; to provide for definitions; to provide for a
governing board and its membership, terms, organization,
compensation, bylaws, vacancies, and meetings; to provide for the
powers and duties of the authority; to provide for services,
procurement, bonding, and conflicts of interest; to provide for
revenue bonds and their form, interest rates, denominations, payment,
signatures, negotiability, exemption from taxation, sale, proceeds,
interim bonds, and replacement; to provide for conditions for issuance
of bonds and that they will not constitute certain debts; to provide for
trust indentures, sinking fund and payment of proceeds; to provide
for bondholder remedies and interests, refunding bonds, venue and
jurisdiction, and bond validation; to provide for trust funds, charges,
rules and regulations, financial statements, audits, and other reports;
to provide for tax exemptions; to provide for supplemental powers,
liberal construction, and powers of other governmental entities; to
repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Short title.
This Act shall be known and may be cited as the "Sinclair Water
Authority Act."
SECTION 2.
Legislative intent.
The General Assembly of Georgia recognizes, supports, and
encourages comprehensive regional planning in anticipation of growth
in the utilization of regional water resources. It supports the concept
that each county should be free to plan and determine its own growth
in the utilization of its share of regional water resources as well as to
plan for other infrastructure growth in conjunction with community
needs and standards. It intends that the Sinclair Water Authority
created by this Act assist in the planning, implementation, and
management on a regional basis of the production of potable water
and distribution of same within the Counties of Baldwin and Putnam
and to the surrounding area.
SECTION 3.
Sinclair Water Authority created.
There is created a body corporate and politic, to be known as the
Sinclair Water Authority (hereinafter SWA), which shall be a public
corporation and by that name, style, and title said body may contract
and be contracted with, bring and defend actions, sue and be sued,
implead and be impleaded, and complain and defend in all courts.
SWA shall make rules and regulations for its own government and
shall have perpetual existence.
SECTION 4.
Purpose of SWA.
Without limiting the generality of any provisions of this Act, the
general purpose of SWA shall be that of acquiring and developing
adequate sources of water supply, including but not limited to the
construction of reservoirs and the treatment of such water, and
thereafter the transmission of such water to the governing authorities
of Baldwin and Putnam counties. It is recognized that water resources
are finite, and that water conservation shall be encouraged by this
Authority, the member counties, and all water users within the area. It
is a further objective of SWA to fulfill its purposes and perform its
projects in an environmentally sensitive manner and to strictly limit
interbasin transfers of water.
SECTION 5.
Definitions.
(a) As used in this Act, the term:
(1) "Authority" shall mean the Sinclair Water Authority created by
Section 3 of this Act. SWA shall act through its board.
(2) "Board" shall mean the governing body of SWA created in Section
6 of this Act.
(3) "Cost of the project" means the cost of planning, design, and
construction, the cost of all lands, properties, rights, easements, and
franchises acquired, the cost of all buildings, machinery and
equipment, financing charges, interest prior to and during
construction, cost of compliance with environmental regulations and
environmental protection, cost of engineering, architectural and legal
expenses, cost of plans and specifications, cost of water conservation
programs and activities, and other costs necessary or incident to
determining the feasibility or practicability of any project,
administrative costs, and such other costs as may be necessary or
incident to the financing authorized in this Act, the construction of
any project, the placing of the same in operation, and the
condemnation of property necessary for such construction and
operation. Any obligation or cost incurred for any of the foregoing
purposes shall be regarded as a part of the cost of the project and may
be paid or reimbursed as such out of the proceeds of revenue bonds,
certificates, or other obligations issued under the provisions of this Act
for such project.
(4) "Interbasin transfers" means the delivery by whatever means of
any treated or untreated water outside the drainage basins which exist
within the boundaries of Baldwin and Putnam counties.
(5) "Member county" means Baldwin County and Putnam County,
unless the governing authority of any such county has adopted a
resolution, at any time, declaring that such county shall not be a
member county under this Act. Such withdrawal by any member
county from SWA shall not affect any previously incurred obligations
with respect to the issuance of or payment of any bonds, certificates,
or other obligations of SWA. Another county may become a member
county upon election as such by the governing authorities of Baldwin
and Putnam counties.
(6) "Project" means and includes the planning, design, acquisition,
construction, and management of reservoirs; the acquisition of real
property surrounding the reservoirs including watershed areas and all
necessary and usual water facilities useful for obtaining one or more
sources of water supply including ground-water sources; the treatment
of water and the transmission and sale of water to member counties;
water conservation and environmental mitigation; and the
management, operation, maintenance, additions, improvements, and
extensions of such facilities so as to assure adequate water utility
systems deemed by SWA to be necessary or convenient for the efficient
operation of such undertaking.
(7) "Public authority" means any entity which is created by the laws
of the State of Georgia, which is designated as an authority, and which
provides services or facilities to the public.
(8) "Revenue bonds" and "bonds" shall mean revenue bonds,
certificates, and other obligations of SWA, as defined and provided
for in Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the
"Revenue Bond Law," and such type of obligations may be issued by
SWA as authorized under said article. In addition, such terms shall
also mean obligations of SWA, the issuance of which is specifically
provided for in this Act.
(9) "Site county" shall mean any county within which SWA causes to
be located a reservoir or any facility or improvement for which
property is acquired, by condemnation or purchase, in fee simple.
(10) "Transmission" means the conveying of raw or treated water
from any facility of SWA to any member county for the purpose of
resale to end users of such water or wholesale purchasers of such
water and does not include conveyance of water to ultimate users.
(b) Any project shall be deemed self-liquidating if, in the judgment of
SWA, the revenues and earnings to be derived by SWA therefrom will
be sufficient to pay the costs of operating, maintaining, repairing,
improving, and extending the project and to pay the principal and
interest of the revenue bonds which may be issued for the cost of such
project or projects.
SECTION 6.
Board.
(a) SWA shall be governed by a board which shall exercise all powers
and duties of SWA. The board shall manage the operations of SWA
and shall perform such other functions that may be provided for or
authorized by law.
(b) The board of SWA shall be comprised of the following members,
each of whom shall have one vote. Each board member must reside
within a member county or have a principal place of business within
the boundary of a member county.
(1) One board member shall be the chairman of the Board of
Commissioners of each member county, unless such official notifies
the governing authority of that county that such official does not wish
to serve on the board, in which event that governing authority shall
appoint one of its members to serve on the board in place of that
chairman. The regular term of these members shall be concurrent
with their terms of office.
(2) One board member shall be appointed by the governing authority
of each member county. The member appointed pursuant to this
paragraph may not be an elected official or employee of a member
county or of a municipality located in a member county but must be a
resident of the county whose governing authority appoints that
member. The regular and initial terms of these members shall be four
years, except that the initial term of the member appointed by the
governing authority of Putnam County shall be two years.
(3) One board member shall be elected by the members specified in
paragraphs (1) and (2) of this subsection. This member shall be the
chairperson and shall serve a regular term of four years. The initial
term of this member shall be two years. In the event that a majority of
those members are unable to agree as to this appointment, those
members shall each submit to the Chief Judge of the Ocmulgee
Judicial Circuit the name of a person recommended for this position
and the chief judge shall appoint the chairman from those persons
whose names have been so submitted to that judge.
(c) Members of the board shall serve for the terms specified in this
section and until the selection and qualification of their respective
successors. In the event a vacancy occurs on the board, it shall be filled
in the same manner as that vacated position was originally filled but
for the remainder of the unexpired term and until a successor is
selected and qualified. No member, except those selected pursuant to
paragraph (1) of subsection (b) of this section, shall serve more than
two consecutive terms.
(d) A majority of the members of the board shall constitute the
quorum necessary for a meeting of the board, provided that no
quorum shall be present unless there is present a board member
resident in and selected by the governing authority of each member
county. It shall require a majority of the quorum present to approve
matters coming before the board, except that the following matters
shall require a majority of the total votes of the board plus one
additional vote: purchases or contracts in excess of an amount
established by the board of SWA; authorization for the issuance of
bonds; acquisition of property by condemnation; and the employment
or removal of the water plant superintendent. The board members
shall elect a secretary-treasurer who need not be a member of the
board.
(e) Members of the board shall serve on the board with compensation
to be recommended by them and approved by the governing
authorities of the member counties and shall be reimbursed by SWA
for their ordinary and usual expenses properly incurred in the
performance of their duties.
(f) The board is authorized to enact bylaws to govern its meetings,
attendance and the removal of members for nonattendance, voting,
quorum and voting requirements, and other matters relating to the
conduct of its affairs not inconsistent with the provisions of this Act.
The governing authorities of the member counties shall approve said
bylaws and any amendments thereto before said bylaws or
amendments shall have effect.
(g) The board shall meet on a least a quarterly basis. Notice of regular
meetings shall be published at least one week prior to the scheduled
date in the legal organ of each member county and said meetings shall
be otherwise subject to the provisions of Chapter 14 of Title 50 of the
O.C.G.A.
SECTION 7.
Powers.
SWA is authorized:
(1) To have a seal and alter the seal at pleasure;
(2) To acquire by purchase, lease, or otherwise and to hold, lease, and
dispose of real and personal property of every kind and character for
its corporate purposes;
(3) To acquire in its own name by purchase on such terms and
conditions and in such manner as it may deem proper, or by
condemnation in accordance with the provisions of any and all
existing laws applicable to the condemnation of property for public
use, real property, rights, or easements therein or franchises necessary
or convenient for its corporate purposes, to use the same so long as its
corporate existence shall continue, and to lease or make contracts with
respect to the use of or to dispose of the same in any manner deemed
by the board to be to the best advantage of SWA, SWA being under no
obligation to accept and pay for any property condemned under this
Act except from the funds provided to SWA under this Act; and in any
proceedings to condemn, such orders may be made by the court
having jurisdiction of the suit, action, or proceedings as may be just to
SWA and to the owners of the property to be condemned; and no
property shall be acquired under the provisions of this Act upon which
any lien or other encumbrance exists, unless at the time such property
is so acquired a sufficient sum of money is deposited in trust to pay
and redeem the fair value of such lien or encumbrance;
(4) To appoint, select, and employ a water plant superintendent and
other officers, agents, and employees, including engineering,
architectural, construction, and lake management experts, fiscal
agents, attorneys, and other professionals and fix their respective
compensation;
(5) To make contracts and leases and to execute all instruments
necessary or convenient to carry out the purposes of this Act,
including contracts for construction of projects and leases of projects
or contracts with respect to the use of projects which it causes to be
constructed or acquired, and any and all persons, firms, and
corporations and any and all political subdivisions, departments,
institutions, or agencies of the state are authorized to enter into
contracts, leases, or agreements with SWA upon such terms and for
such purposes as they deem advisable; and without limiting the
generality of the above, authority is specifically granted to the SWA to
enter into contracts, lease agreements, or other undertakings relative
to the furnishing and sale of wholesale water, water facilities, and
related services by SWA to member counties, or relative to the
furnishing of water facilities and services by municipal corporations,
counties, corporations, or individuals to SWA for a term not exceeding
50 years;
(6) To plan, design, construct, erect, acquire, own, lease, repair,
remodel, maintain, add to, extend, improve, equip, operate, and
manage projects as defined in paragraph (6) of subsection (a) of
Section 5 of this Act, the cost of any such project to be paid in whole
or in part from the proceeds of revenue bonds of SWA, from revenues
available from contracting for services, or from such proceeds and any
grant from the United States of America, the State of Georgia, or any
agency or instrumentality thereof;
(7) To accept loans and grants of money, materials, or property of any
kind from the United States of America, the State of Georgia, or any
political subdivision, agency, or instrumentality thereof upon such
terms and conditions as the United States of America, the State of
Georgia, or such political subdivision, agency, or instrumentality may
impose;
(8) To borrow money for any of its corporate purposes, to issue
revenue bonds payable solely from funds pledged for that purpose;
and to provide for the payment of the same and for the rights of the
holders thereof;
(9) To exercise any power which is usually possessed by private
corporations performing similar functions and which is not in conflict
with the Constitution and laws of this state;
(10) To purchase policies of insurance as may be deemed appropriate
for its corporate purposes;
(11) To apply for and accept any and all local, state, or federal permits
necessary and convenient for its corporate purposes;
(12) To appoint a technical advisory group or such other committees
as circumstances might require; and
(13) To do all things necessary or convenient to carry out the powers
expressly given in this Act.
SECTION 8.
Limitations of power.
(a) SWA:
(1) Shall not obligate any member county to issue or guarantee
revenue bonds, nor shall SWA bind the member county to any capital
indebtedness contract unless that member county has approved such
issuance or guarantee of an indebtedness contract or revenue bonds by
official action or vote as may be required by law;
(2) Shall not give preferential rate treatment to any member county
and shall maintain uniform rates for comparable service for each
member county. This provision shall not impair the ability of member
counties to reduce or increase the uniform rate between and among
themselves in the event one member provides an enhancement to the
water supply including, but not limited to, treatment or transmission
of such water;
(3) Consistent with and subject to all state and federal laws and
regulations, shall provide for stream withdrawal rights among
member counties prior to the funding of any reservoir project;
and
(4) Shall, consistent with and subject to all state and federal laws and
regulations, strictly limit interbasin transfers of water and shall
provide that except in the event of a bona fide water emergency, any
proposed interbasin transfer of water resources shall be offered to all
member counties in proportion to their respective rights to the water
pursuant to intergovernmental agreements. Upon such an offer, the
member counties shall have 90 days to consider said offer and if
accepted, an additional 90 days to commence the acquisition of the
water before it may be transferred outside the basin. The sale from
one member county to another shall be at the uniform rate established
for the sale of water to member counties by SWA. Member counties
shall have the right to waive their right of first refusal. Interbasin
transfers in a bona fide water emergency shall be allowed provided
they are limited to 60 days in any calendar year and are approved by
the member counties.
(b) The member counties shall not sell or transmit the water resources
of SWA outside of the geographical boundaries of the member
counties unless such water resource capacity is first offered to all
member counties. Upon such an offer, the member counties shall have
90 days to consider said offer and if accepted, an additional 90 days to
commence the acquisition of the water before it is sold outside the
geographical boundaries of the member counties. The sale from one
member county to another shall be at the uniform rate established for
the sale of water to member counties by SWA. Member counties shall
have the right to waive their right of first refusal. The provisions of
paragraph (4) of subsection (a) of this section and of this subsection
shall not apply to water lines and water customers of the member
counties in existence as of the effective date of this Act.
SECTION 9.
Services to member counties.
SWA is authorized to provide water services and facilities to each
member county so long as such county remains a member county in
accordance with policies of SWA and agreements among the member
counties. Such services and the costs for same shall be delineated in
intergovernmental agreements between SWA and member counties.
SECTION 10.
Procurement of goods and services.
SWA shall adopt regulations and requirements for the procurement of
goods and services as are reasonable and necessary and consistent with
requirements of state law.
SECTION 11.
Contractors to give bond.
SWA shall adopt regulations and requirement to bonds from
contractors who are awarded contracts by SWA as are reasonable and
necessary and consistent with requirements of state law.
SECTION 12.
Authority and member county governing authority
members not to be interested in contracts.
SWA is prohibited from entering into a contract for the purchase of
goods, property, or services with any individual who serves on the
board of SWA or the governing authority of a member county, or is
that individual employer, partner, principal, agent,
servant, or employee, nor shall SWA enter into any contract in which
such individual is financially interested, directly or indirectly. No
individual who serves on the board of SWA or the governing authority
of a member county, nor that individual partner,
employer, principal, agent, servant, or employee shall enter into any
contract with SWA or sell to SWA any goods, property, or service;
provided, however, this section shall not apply to goods or services
purchased from any public utility which is regulated by the Georgia
Public Service Commission, nor to goods or services purchased from
any county, municipal corporation, public authority, or the state. Any
contract made in violation of this section shall be void.
SECTION 13.
Revenue bonds.
SWA, or any public authority or body which had or which may in the
future succeed to the powers, duties, and liabilities vested in SWA
created by this Act, is authorized, at one time or from time to time, to
provide by resolution for the issuance of revenue bonds of SWA for the
purpose of paying all or any part of the cost of any one or more
projects. The principal and interest of such revenue bonds shall be
payable solely from the special fund provided in Section 25 of this Act
for such payment. The bonds of each issue shall be dated, shall bear
interest at such rate or rates, shall be payable, shall mature at such
time or times not to exceed 50 years from their date or dates, shall be
payable in such medium of payment as to both principal and interest,
and may be made redeemable before maturity, at such price or prices,
and under such terms and conditions as may be determined by SWA
in the resolution providing for the issuance of the bonds.
SECTION 14.
Revenue bonds; form; denominations; registration; place of
payment.
SWA shall determine the form of the bonds and shall fix the interest
rates, denomination or denominations of the bonds, and the place or
places of payment of principal and interest thereof, which may be at
any bank or trust company inside or outside the state. The bonds may
be issued in bearer or registered form, or both, as SWA may
determine, and provision may be made for the registration of any
bond as to principal alone or also as to both the principal and interest.
SECTION 15.
Revenue bonds; signatures; seal.
In case any officer whose signature or facsimile signature shall appear
on any bonds or on any coupons shall cease to be such officer before
the delivery of such bonds, such signature shall nevertheless be valid
and sufficient for all purposes the same as if such officer had
remained in office until such delivery. All such bonds shall be signed
by the chairperson of the board and the official seal of SWA shall be
fixed thereto or imprinted thereon and attested by the secretary of the
board and any coupons attached thereto shall bear the signature or
facsimile signature of the chairperson of the board. Any coupon may
bear the facsimile signature of such person and any bond may be
signed, sealed, and attested on behalf of SWA by such persons as at
this actual time of the execution of such bonds shall be duly
authorized or hold the proper office, although at the date of such
bonds such persons may not have been so authorized or shall not have
held such office.
SECTION 16.
Revenue bonds; negotiability; exemption from
taxation.
All revenue bonds issued under this Act shall have and are declared to
have all the qualities and incidents of negotiable instruments under
the negotiable instruments law of the state. Such bonds and the
income thereof shall be exempt from all taxation within this state.
SECTION 17.
Revenue bonds; sale; price.
SWA may sell such bonds in such a manner and for such price as it
may determine to be for the best interest of SWA, but no such sale
shall be made at a price so low as to require the payment of interest on
the money received therefor at a greater rate than the interest allowed
by Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue
Bond Law," computed with relation to the absolute maturity of the
bonds in accordance with standard tables of bond values, excluding,
however, from such computation the amount of any premium to be
paid on redemption of any bond prior to maturity.
SECTION 18.
Revenue bonds; proceeds of bonds.
The proceeds of such bonds shall be used solely for the payment of the
cost of the project or projects and, unless otherwise provided in the
resolution authorizing the issuance of the bonds or in the trust
indenture, additional bonds may be issued in like manner to provide
the amount of such deficit, which, unless otherwise provided in the
resolution authorizing the issuance of the bonds or in the trust
indenture, shall be deemed to be of the same fund without preference
or priority of the bonds first issued for the same purpose.
SECTION 19.
Revenue bonds; interest receipts and certificates or
temporary bonds.
Prior to the preparation of definitive bonds, SWA may issue interim
receipts, interim certificates, or temporary bonds, with or without
coupons exchangeable for definitive bonds upon the issuance of the
later.
SECTION 20.
Revenue bonds; replacement of lost or mutated
bonds.
SWA may also provide for the replacement of any bond which shall
become mutilated or be destroyed or lost.
SECTION 21.
Revenue bonds; conditions precedent to issuance; object of
issuance.
Such revenue bonds may be issued without any other proceedings or
the happening of any other conditions or things than those
proceedings, conditions, and things which are specified or required by
this Act. In the discretion of SWA, revenue bonds of a single issue may
be issued for the purpose of any particular project. Any resolution
providing for the issuance of revenue bonds under this Act shall
become effective immediately upon its passage and need not be
published or posted, and any such resolution may be passed at any
regular or special or adjourned meeting of SWA by its board member
at any meeting where a quorum is present and voting requirements
are met.
SECTION 22.
Revenue bonds; credit not pledged.
Revenue bonds issued under the provisions of this Act shall not be
deemed to constitute a debt of this state, or any county or municipality
thereof, or any public authority except SWA created by this Act, nor
shall such bonds be deemed a pledge of the faith and credit of this
state, any county or municipality thereof, or any public authority
except SWA created by this Act, but such bonds shall be payable solely
from the fund provided for in this Act; and the issuance of such
revenue bonds shall not directly, indirectly, or contingently obligate
this state, or any county or municipality thereof, to levy or to pledge
any form of taxation whatever therefor or to make any appropriation
for the payment of such bonds; and all such bonds shall contain
recitals on their face covering substantially the foregoing provisions of
this section.
SECTION 23.
Revenue bonds; trust indenture as security.
In the discretion of SWA, any issue of such revenue bonds may be
secured by a resolution or a trust indenture by and between SWA and
a corporate trustee, which may be any foreign or domestic trust
company or bank having the powers of a trust company. Such
resolution or trust indenture may pledge or assign fees, tolls, revenues,
and earnings to be received by SWA. Either the resolution providing
for the issuance of revenue bonds or such trust indenture may contain
such provisions for protecting and enforcing the rights and remedies
of the bondholders as may be reasonable and proper and not in
violation of law, including covenants setting forth the duties of SWA
in relation to the acquisition of property, the construction of the
project, the maintenance, operation, repair, and insurance of the
project, and the custody, safeguarding, and application of all moneys
and may also provide that any project shall be constructed and paid
for under the supervision and approval of registered professional
consulting engineers of the State of Georgia or architects employed or
designated by SWA and satisfactory to the original purchasers of the
bonds issued therefor and may also require that the security given by
contractors and by any depository of the proceeds of the bonds or
revenues or other moneys be satisfactory to such purchasers and may
also contain provisions concerning the conditions, if any, upon which
additional revenue bonds may be issued. It shall be lawful for any
bank or trust company incorporated under the laws of this state to act
as such depository and to furnish such indemnifying bonds or pledge
such securities as may be required by the board. Such resolution or
trust indenture may set forth the rights and remedies of the
bondholders and of the trustee and may restrict the individual right
of action of bondholders as is customary in resolution or trust
indentures securing bonds and debentures of corporations. In addition
to the foregoing, such resolution or trust indenture may contain such
other provisions as the board may deem reasonable and proper for the
security of the bondholders. All expenses incurred in carrying out such
resolution or trust indenture may be treated as a part of the cost of
maintenance, operation, and repair of the project affected by such
indenture.
SECTION 24.
Revenue bonds; to whom proceeds of bonds shall be
paid.
In the resolution providing for the issuance of revenue bonds or in the
trust indenture, SWA shall provide for the payment of the proceeds of
the sale of the bonds to any officer or person who, or any agency,
bank, or trust company which, shall act as trustee, custodian, or
depository of such funds and shall hold and apply the same to the
purposes for which such bonds were issued, subject to such
regulations as this Act and such resolution or trust indenture may
provide.
SECTION 25.
Revenue bonds; sinking fund.
The revenues, fees, and earnings derived from any particular project
or projects, regardless of whether or not such fees, earnings, and
revenues were produced by a particular project for which bonds have
been issued unless otherwise pledged and allocated, may be pledged
and allocated by SWA to the payment of the principal and interest on
revenue bonds of SWA as the resolution authorizing the issuance of
the bonds or the trust instrument may provide; and such funds so
pledged from whatever source received, which said pledge may
include funds received from one or more or all sources, shall be set
aside at regular intervals, as may be provided in the resolution or trust
indenture, into a sinking fund, which sinking fund shall be pledged to
and charged with the payment of:
(1) The interest upon such revenue bonds as such interest shall fall
due;
(2) The principal of the bonds as the same shall fall due;
(3) The necessary charges of paying agents for paying principal and
interest; and
(4) Any premium upon bonds retired by call or purchase as provided
in this Act.
The use and disposition of such sinking fund shall be subject to such
regulations as may be provided in the resolution authorizing the
issuance of the revenue bonds or in the trust indenture, except as may
otherwise be provided in such resolution or trust indenture. Such
sinking fund shall be a fund for the benefit of all revenue bonds
without distinction or priority of one over another. Subject to the
provisions of the resolution authorizing the issuance of the bonds or
the trust indenture, surplus moneys in the sinking fund may be
applied to the purchase or redemption of bonds. Any such bonds so
purchased or redeemed shall forthwith be canceled and shall not
again be issued.
SECTION 26.
Revenue bonds; remedies of bondholders.
Any holder of revenue bonds issued under this Act or any coupons
appertaining thereto and the trustee under the trust indenture, if any,
except to the extent the rights given in this Act may be restricted by
the resolution passed before the issuance of the bonds or by the trust
indenture, may, either at law or in equity, by suit, action, mandamus,
or other proceedings, protect and enforce any and all rights under the
laws of the State of Georgia or granted under this Act or under such
resolution or trust indenture and may enforce and compel
performance of all duties required by this Act or by such resolution or
trust indenture, and may enforce and compel performance of all
duties required by this Act or by such resolution or trust indenture to
be performed by SWA or any officer thereof, including the fixing,
charging, and collecting of revenues, fees, tolls, and other charges for
the use of the facilities and services furnished.
SECTION 27.
Revenue bonds; refunding bonds.
SWA is authorized to provide by resolution of its board for the
issuance of revenue refunding bonds of SWA for the purpose of
refunding any revenue bonds issued under this Act and then
outstanding, together with accrued interest thereon. The issuance of
such revenue refunding bonds, the maturities, all other details thereof,
and the duties of SWA with respect to the same shall be governed by
the foregoing provisions of this Act insofar as the same may be
applicable.
SECTION 28.
Revenue bonds; venue and jurisdiction.
Any action to protect or enforce any rights under this Act or any suit
or action against SWA shall be brought in the Superior Court of the
site county for the first facility constructed by SWA, and any action
pertaining to validation of any bonds issued under this Act shall
likewise be brought in said court, which shall have exclusive
jurisdiction of such actions.
SECTION 29.
Revenue bonds; validation.
Bonds of SWA shall be confirmed and validated in accordance with
the procedure of Article 3 of Chapter 82 of Title 36 of the O.C.G.A.,
the "Revenue Bond Law." The petition for validation shall also make
a party defendant to such action any municipality, county, public
authority, subdivision, or instrumentality of the State of Georgia
which has contracted with SWA for furnishing or receiving the
services and facilities of the water systems for which bonds are to be
issued and sought to be validated, and such municipality, county,
public authority, subdivision, or instrumentality shall be required to
show cause, if any, why such contract or contracts and the terms and
conditions thereof should not be inquired into by the court, the
validity of the terms thereof be determined, and the contract or
contracts adjudicated as security for the payment of any such bonds
of SWA. The bonds, when validated, and the judgement of validation,
shall be final and conclusive with respect to such bonds against SWA
issuing the same and any municipality, county, public authority,
subdivision, or instrumentality contracting with SWA.
SECTION 30.
Revenue bonds; interest of bondholders protected.
While any of the bonds issued by SWA remain outstanding, the
powers, duties, or existence of SWA or of its officers, employees, or
agents shall not be diminished or impaired in any manner that will
affect adversely the interests and right of the holders of such bonds,
and no other entity, department, agency, or public authority will be
created which will compete with SWA to such an extent as to affect
adversely the interests and rights of the holders of such bonds nor will
the state itself so compete with SWA. The provisions of this Act shall
be for the benefit of SWA and the holders of any such bonds and,
upon the issuance of bonds under the provisions of this Act, shall
constitute a contract with the holders of such bonds.
SECTION 31.
Moneys received considered trust funds.
All moneys received by SWA pursuant to this Act, whether as proceeds
from the sale of revenue bonds, as grants, or other contributions, or as
revenues, fees, and earnings, shall be deemed to be trust funds to be
held and applied solely as provided in this Act.
SECTION 32.
Rates, charges, and revenues; use.
SWA is authorized to prescribe, fix, and collect rates, fees, or charges
and to revise from time to time and collect such rates, fees, or charges
for the services, facilities, or commodities furnished and, in
anticipation of the collection of the revenues of such undertaking or
project, to pay from current revenues and issue revenue bonds as
provided in this Act to finance in whole or in part the cost of the
acquisition, construction, reconstruction, improvement, betterment,
or extension of the water systems and to pledge to the punctual
payment of said bonds and interest thereon all or any part of the
revenues of such undertakings or projects, including the revenues of
improvements, betterments, or extensions subsequently made to the
systems.
SECTION 33.
Rules and regulations for operation of projects.
It shall be the duty of the board to prescribe rules and regulations for
the operation of the project or projects constructed under the
provisions of this Act, including the basis on which water transmission
services and facilities shall be furnished.
SECTION 34.
Financial statements and audit reports.
(a) SWA shall establish a fiscal year, which may be a calendar year, for
its operation and, as soon as practicable after the end of each fiscal
year, SWA shall cause to be prepared and printed a report and
financial statement of SWA operations for the fiscal year just ended
and of its assets and liabilities. A copy of such report shall be sent to
the governing authority of each member county and additional copies
shall be made available for distribution to the general public on
written requests thereof.
(b) SWA shall appoint in due time each year a firm of independent
certified public accountants as auditors who shall examine the books,
records, and accounts of SWA for the purpose of auditing and
reporting upon its financial statements for such year. The report of
such auditors shall be appended to such financial statement.
(c) Whenever SWA deems it necessary or advisable, it shall be
authorized to employ a firm or firms of qualified engineers or other
such professionals to survey condition of SWA
facilities and operation from the engineering, operational, or
environmental standpoint and make a report therefor together with
its recommendation for improvement in its physical facilities and
operating procedures. A copy of such report shall be sent to the
governing authority of each member county and additional copies
shall be made available for distribution to the general public on
written requests therefor.
SECTION 35.
Exemption from taxes.
It is found, determined, and declared that the creation of SWA and the
carrying out of its corporate purposes are in all respects for the
benefit of the people of this state and constitute a public purpose and
that SWA will be performing an essential governmental function in
the exercise of the powers conferred upon it by this Act. SWA
therefore shall be required to pay no taxes or assessment upon any of
the property acquired by it or under its jurisdiction, control,
possession, or supervision or upon its activities in the operation or
maintenance of the facilities erected, maintained, or acquired by it or
any fees, rentals, or other charges for the use of such facilities or other
income received by SWA.
SECTION 36.
Powers declared supplemental and additional.
The foregoing sections of this Act shall be deemed to provide an
additional and alternative method for doing the things authorized
thereby, shall be regarded as supplemental and additional to powers
conferred by other laws, and shall not be regarded as being in
derogation of any powers now existing.
SECTION 37.
Liberal construction of Act.
This Act, being for the welfare of various political subdivisions of the
state and its inhabitants, shall be liberally construed to effect the
purposes hereof.
SECTION 38.
Powers of counties and municipalities.
This Act does not in any way take from member counties,
municipalities, or public authorities located within such member
counties or any adjoining county the power to own, operate, and
maintain water or waste-water systems, or issue revenue certificates as
is provided by Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the
"Revenue Bond Law."