GLYNN COUNTY, GEORGIA
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1 STATE OF GEORGIA COUNTY OF GLYNN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN GLYNN COUNTY, GEORGIA, AND THE CITY OF BRUNSWICK, GEORGIA, FOR THE USE AND DISTRIBUTION OF PROCEEDS FROM THE 2016 SPECIAL PURPOSE LOCAL OPTION SALES TAX (SPLOST 2016) THIS INTERGOVERNMENTAL AGREEMENT (hereinafter referred to as the Agreement ), is made and entered into as of the day of, 2016 (the Effective Date ), by and between GLYNN COUNTY, GEORGIA, a political subdivision of the State to Georgia, acting by and through its duly elected Board of Commissioners (hereinafter referred to as the County ) and the CITY OF BRUNSWICK, GEORGIA, a municipal corporation of the State of Georgia, acting by and through its duly elected Mayor and Board of Commissioners (hereinafter referred to as City ). WITNESSETH: WHEREAS, the Constitution of the State of Georgia provides, in Article IX, Section III, Paragraph I, subparagraph (a), that any county or municipality of the State of Georgia may contract for any period not exceeding 50 years, with each other or with any other public agency, public corporation, or public authority for the provision of services, or for the joint or separate use of facilities or equipment when such contracts deal with activities, services, or facilities which the contracting parties are authorized by law to undertake or provide; and WHEREAS, O.C.G.A et seq. (the Act ), authorizes the levy of a one percent county Special Purpose Local Option Sales Tax (the SPLOST ) for the purpose of financing capital outlay projects for the use and benefit of the county and qualified municipalities within the county; and WHEREAS, on March 15, 2016, the County and City met to discuss possible projects for inclusion in a SPLOST referendum to be held on November 8, 2016, (hereinafter sometimes referred to as SPLOST 2016 ), in conformance with the requirements of O.C.G.A (a), and on April 19, 2016, the County and City met again to discuss possible projects for inclusion in the SPLOST referendum; and WHEREAS, the Act authorizes the County and City to enter into an intergovernmental agreement in order to, among other things, identify the capital outlay projects that will be funded with proceeds from the SPLOST; and WHEREAS, the County and the City have negotiated a division of the SPLOST proceeds as authorized by the Act in the event that a majority of the votes cast in the election for SPLOST 2016 are in favor of imposing the SPLOST; and Page 1 of 8
2 WHEREAS, the County and City desire to enter into this Intergovernmental Agreement for the use and distribution of the proceeds from SPLOST 2016; NOW, THEREFORE, in consideration of the mutual promises and understandings made in this Agreement, and for other good and valuable consideration, the County and the City consent and agree as follows: SECTION 1. REPRESENTATIONS AND MUTUAL CONSENTS (a) The County makes the following representations and warranties which may be specifically relied upon by the City as a basis for entering this Agreement: (i) The County is a political subdivision duly created and organized under the Constitution of the State of Georgia; (ii) The governing authority of the County is duly authorized to execute, deliver and perform this Agreement; (iii) County; and This Agreement is a valid, binding, and enforceable obligation of the (iv) The County will take all actions necessary to call an election to be held in all voting precincts in the County on November 8, 2016, for the purpose of submitting to the voters of the County for their approval, the question of whether or not a SPLOST shall be imposed on all sales and uses within the special district of Glynn County for a period of fourteen (14) calendar quarters, commencing on April 1, 2017, and ending on September 30, 2020, to raise an estimated $71,595,000 to be used for funding the Projects specified in Exhibit A attached hereto and incorporated herein by reference. (b) The City makes the following representations and warranties which may be specifically relied upon by the County as a basis for entering this Agreement: (i) The City is a municipal corporation duly created and organized under the Laws of the State of Georgia; (ii) The governing authority of the City is duly authorized to execute, deliver and perform this Agreement; (iii) This Agreement is a valid, binding, and enforceable obligation of the City; and (iv) The City is a qualified municipality as defined in O.C.G.A (4); (v) The City is located entirely within the geographic boundaries of the special tax district created in the County. Page 2 of 8
3 (vi) To the extent that the County deems that its project described in Exhibit A as College Park Drainage Outfall Improvements requires any approval, consent, and/or access from the City to complete due to the project s location and proximity to the City boundary and the potential that improvements may need to be made on City property and/or easements in order to properly complete the project, City agrees to fully cooperate with County in providing any such those approval, consent, and/or access, as this project will benefit both County and City. (c) It is the intention of the County and City to comply in all respects with O.C.G.A et seq., and all provisions of this Agreement shall be construed in light of O.C.G.A et seq. (d) The County and City agree that each approved SPLOST project associated with this Agreement shall be maintained as a public facility and in public ownership. If ownership of a project financed pursuant to this Agreement is transferred to private ownership, the proceeds of the sale shall, for the purposes of this Agreement, be deemed excess funds and disposed of as provided under O.C.G.A (g)(2). (e) The County and City agree to maintain thorough and accurate records concerning receipt of SPLOST proceeds and expenditures for each project undertaken by the respective county or municipality as required in fulfilling the terms of this Agreement. SECTION 2. CONDITIONS PRECEDENT (a) The obligations of the County and City pursuant to this Agreement are conditioned upon the adoption of a resolution of the County calling for the imposition of the SPLOST in accordance with the provisions of O.C.G.A (a). (b) This Agreement is further conditioned upon the approval of the proposed imposition of the SPLOST by the voters of the County in a referendum to be held in accordance with the provisions of O.C.G.A (b) through (e). (c) This Agreement is further conditioned upon the collecting of the SPLOST revenues by the state revenue commissioner and transferring same to the County. SECTION 3. EFFECTIVE DATE AND TERM OF TAX The SPLOST, subject to approval in an election to be held on November 8, 2016, shall continue for a period of fourteen (14) calendar quarters with collections beginning on April 1, 2017, and ending on September 30, Page 3 of 8
4 SECTION 4. EFFECTIVE DATE AND TERM OF AGREEMENT This Agreement shall commence upon the date of its execution and shall terminate upon the later of: (a) The official declaration of the failure of the election described in this Agreement; (b) The expenditure by the County and the City of the last dollar of money collected from the SPLOST after its expiration; or (c) The completion of all projects described in Exhibit A. SECTION 5. SEPARATE ACCOUNTS (a) A special fund or account shall be created by the County and designated as the 2016 Glynn County Special Purpose Local Option Sales Tax Fund ( County SPLOST Fund ). The County shall select a local bank which shall act as a depository and custodian of the SPLOST Fund upon such terms and conditions as may be acceptable to the County. (b) The City shall create a special fund to be designated as the 2016 City of Brunswick Special Purpose Local Option Sales Tax Fund ( City SPLOST Fund ). The City shall select a local bank which shall act as a depository and custodian of the SPLOST proceeds received by the City upon such terms and conditions as may be acceptable to the City. (c) All SPLOST proceeds shall be maintained by the County and the City in the separate accounts or funds established pursuant to this Section. Except as provided in Section 6, SPLOST proceeds shall not be commingled with other funds of the County or the City and shall be used exclusively for the purposes detailed in this Agreement. No funds other than SPLOST proceeds shall be placed in such funds or accounts. (d) The parties acknowledge that SPLOST funds are not guaranteed. Proceeds under the amount estimated in the Referendum question shall be allocated in accordance with the percentages set forth in this Agreement. SECTION 6. PROCEDURE FOR DISBURSEMENT OF SPLOST PROCEEDS (a) All proceeds of SPLOST 2016 shall be disbursed in accordance with O.C.G.A , which provides that one percent of the amount collected shall be paid into the general fund of the state treasury in order to defray the costs of administration, and the remainder of the proceeds of the tax shall be distributed to the governing authority of Glynn County. Upon receipt by the County of SPLOST proceeds collected by the state revenue commissioner each month, the County shall immediately deposit said proceeds into the County SPLOST Fund. The monies in the SPLOST Fund shall be held and applied to the cost of acquiring, constructing and equipping Page 4 of 8
5 the County capital outlay projects listed in Exhibit A and as provided in Paragraph (b) of this Section. (b) The County, within ten (10) business days following deposit of the SPLOST proceeds into the County SPLOST Fund each month, shall distribute 22.34% of such SPLOST 2016 proceeds to the City, up to a maximum of $15,995,000, according to the schedule in Exhibit A. The proceeds shall be deposited in the separate fund established by the City in accordance with Section 5 of this Agreement. (c) Should the City cease to exist as a legal entity before all funds are distributed under this Agreement, the City s share of the funds subsequent to dissolution shall be paid to the County as part of the County s share unless an Act of the Georgia General Assembly makes the defunct City part of another successor municipality. If such an act is passed, the defunct City s share shall be paid to the successor municipality in addition to all other funds to which the successor municipality would otherwise be entitled. SECTION 7. PROJECTS All capital outlay projects to be funded in whole or in part from SPLOST 2016 proceeds are listed in Exhibit A. SECTION 8. PRIORITY AND ORDER OF PROJECT FUNDING Projects shall be fully or partially funded and constructed in accordance with the schedule for the distribution of proceeds set forth in Exhibit A of this Agreement. The priority and order in which the SPLOST 2016 projects will be fully or partially funded is as follows: All projects shall be funded concurrently. The County and City agree to promptly proceed with the acquisition, construction, and equipping of the projects specified in Exhibit A, subject to the availability of funds. SECTION 9. COMPLETION OF PROJECTS (a) The County and City acknowledge that the costs shown for each project described in Exhibit A are estimated amounts. (a) If a County project has been satisfactorily completed at a cost less than the estimated cost listed for that project in Exhibit A, the County may apply the remaining unexpended funds to any other county project in Exhibit A. (c) If a City project has been satisfactorily completed at a cost less than the estimated cost listed for that project in Exhibit A, the City may apply the remaining unexpended funds to any other project included for the City in Exhibit A. Page 5 of 8
6 (d) The County and City agree that each approved SPLOST project associated with this Agreement shall be completed or substantially completed within five (5) years after the termination of the SPLOST on September 30, Any SPLOST proceeds held by the County or the City at the end of the five (5) year period shall, for the purposes of this Agreement, be deemed excess funds and disposed of as provided under O.C.G.A (g)(2). SECTION 10. CERTIFICATE OF COMPLETION Within thirty (30) days after the acquisition, construction or equipping of a municipal project listed in Exhibit A is completed, the City shall file with the County a Certificate of Completion signed by the Mayor or City Manager, setting forth the date on which the project was completed, and the final cost of the project. SECTION 11. AUDITS (a) During the term of this Agreement, the distribution and use of all SPLOST proceeds deposited in the County SPLOST Fund and the City SPLOST fund shall be audited annually by an independent certified public accounting firm in accordance with O.C.G.A (a)(2). The County and the City shall be responsible for the cost of their respective audits. The County and the City agree to cooperate with the independent certified public accounting firm in any audit by providing all necessary information. (b) The City shall provide the County a copy of the audit of the distribution and use of the SPLOST proceeds by the City. SECTION 12. NOTICES All notices, consents, waivers, directions, requests or other instruments or communications provided for under this Agreement shall be deemed properly given when delivered personally or sent by registered or certified United States mail, postage prepaid, as follows: If to City of Brunswick, Georgia: If to Glynn County, Georgia: City of Brunswick, Georgia Glynn County, Georgia Attn: City Manager Attn: County Manager City Hall 1725 Reynolds Street, Suite Gloucester Street Brunswick, Georgia Brunswick, Georgia Page 6 of 8
7 SECTION 13. ENTIRE AGREEMENT This Agreement, including any attachments or exhibits, constitutes all of the understandings and agreements existing between the County and the City with respect to distribution and use of the proceeds from the SPLOST Furthermore, this Agreement supersedes all prior agreements, negotiations and communications of whatever type, whether written or oral, between the parties hereto with respect to distribution and use of said SPLOST. SECTION 14. AMENDMENTS This Agreement shall not be amended or modified except by agreement in writing executed by the governing authorities of the County and the City. SECTION 15. GOVERNING LAW This Agreement shall be deemed to have been made and shall be construed and enforced in accordance with the laws of the State of Georgia. SECTION 16. SEVERABILITY Should any phrase, clause, sentence, or paragraph of this Agreement be held invalid or unconstitutional, the remainder of the Agreement shall remain in full force and effect as if such invalid or unconstitutional provision were not contained in the Agreement unless the elimination of such provision detrimentally reduces the consideration that any party is to receive under this Agreement or materially affects the operation of this Agreement. SECTION 17. COMPLIANCE WITH LAW The County and the City shall comply with all applicable local, state, and federal statutes, ordinances, rules and regulations. SECTION 18. NO CONSENT TO BREACH No consent or waiver, express or implied, by any party to this Agreement, to any breach of any covenant, condition or duty of another party shall be construed as a consent to or waiver of any future breach of the same. Page 7 of 8
8 SECTION 19. COUNTERPARTS This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 20. MEDIATION The County and the City agree to submit any controversy arising under this Agreement to mediation for a resolution. The parties to the mediation shall mutually select a neutral party to serve as mediator. Costs of mediation shall be shared equally among the parties to the mediation. IN WITNESS WHEREOF, Glynn County, Georgia, and City of Brunswick, Georgia, have caused this Agreement to be executed in their respective names and their respective official seals to be hereunto affixed and attested by their duly authorized officials, all as of the date first above written. GLYNN COUNTY, GEORGIA: (SEAL) By: Richard Strickland, Chairman Glynn County Board of Commissioners Attest: Cindee Overstreet, County Clerk CITY OF BRUNSWICK, GEORGIA: (SEAL) By: Cornell L. Harvey, Mayor City of Brunswick Attest: Naomi Atkinson, City Clerk Page 8 of 8
9 EXHIBIT A PROJECTS AND DISTRIBUTION SCHEDULE FOR SPLOST 2016 PROCEEDS 1. SPLOST Projects. The distribution schedule below lists the SPLOST 2016 projects for the County and City and the pro-rata share of the SPLOST 2016 monthly distribution. 2. Distribution of SPLOST Proceeds. All proceeds of SPLOST 2016 shall be disbursed in accordance with O.C.G.A , which provides that one percent of the amount collected shall be paid into the general fund of the state treasury in order to defray the costs of administration, and the remainder of the proceeds of the tax shall be distributed to the governing authority of Glynn County. All such remaining SPLOST proceeds up to the estimated $71,595,000 received by Glynn County from the state revenue commissioner shall be distributed to Glynn County and the City of Brunswick on a monthly basis based upon each entity s pro-rata percentage of the project totals according to the Distribution Table below. The City of Brunswick shall receive 22.34% of the SPLOST 2016 proceeds distributed by the state revenue commissioner to Glynn County each month until such time as the total of all distributions to the City of Brunswick total $15,995,000, or until such time as the last SPLOST 2016 proceeds are disbursed to the County by the state revenue commissioner, whichever comes first. The parties acknowledge that Special Local Option Sales Tax funds are not guaranteed and that the actual SPLOST 2016 proceeds received from the state revenue commissioner may be less than estimated, in which case both County and City shall receive a proportionally lower amount than projected. In the event that the total SPLOST 2016 proceeds distributed to Glynn County from the state revenue commissioner exceed the estimated amount of $71,595,000 during the fourteen (14) calendar quarter collection cycle, then 100% of any such amount over $71,595,000 shall be allocated and distributed to Glynn County to be used by the County as permitted and provided for by law. *DISTRIBUTION SCHEDULE FOR $71,595,000 IN SPLOST PROCEEDS Entity Capital Outlay Projects Projected SPLOST Allocation Pro Rata Share (%) Glynn County Glynn County Capital Outlay Projects set forth in this Exhibit A $55,600, % City of Brunswick City of Brunswick Capital Outlay Projects set forth in this Exhibit A $15,995, % Total: $71,595, % *The distribution schedule and pro rata share distribution percentage (%) governs distributions up to $71,595,000. Page 1 of 4
10 EXHIBIT A The capital outlay projects of Glynn County and the City of Brunswick to be funded from the proceeds of the Special Purpose Local Option Sales Tax pursuant to this Agreement and the estimated dollar amounts allocated for each project are as follows: GLYNN COUNTY PROJECTS ESTIMATED COSTS Facilities Animal Control Facility $ 1,500,000 Drainage St. Simons Island Village Drainage Improvements $ 600,000 Arnold Road Tide Gates Replacement $ 100,000 College Park Drainage Outfall Improvements $ 1,000,000 Chapel Crossing Road Drainage Improvements $ 350,000 Somersby Point to Martin Palmer Drive Drainage Improvements $ 75,000 Golden Isles Parkway Extension Drainage Improvements $ 2,100,000 Box Culvert Replacement on Old Jesup Road near Lillie Way $ 350,000 North Harrington Road Drainage Outfall Improvements $ 400,000 Hornet Drive Drainage Outfall Improvements $ 800,000 Sea Island Road Ditch Piping Improvements $ 300,000 Bridge Construction Project over South Palm Drainage Ditch on U.S. Highway 17 $ 1,725,000 Roads and Sidewalks Road Resurfacing and Road Shoulder Widening $ 10,000,000 Road Reconstruction and Resurfacing on Old Jesup Road near Everett City $ 850,000 Canal Road Project Improvements $ 4,000,000 Extension of Dungeness Drive $ 400,000 Dirt Road Paving $ 3,000,000 Intersection Improvements at Sea Island Road and Hamilton Drive Intersection $ 73,200 Intersection Improvements at Frederica Road and Demere Road Intersection $ 33,200 Intersection Improvements at Frederica Road and Riverview Drive Intersection $ 31,400 Intersection Improvements at Frederica Road and Sea Island Road Intersection $ 286,800 Intersection Improvements at Ocean Boulevard and Mallery Street Intersection $ 277,200 Intersection Improvements at Sea Island Road and Hamilton Landing Drive Intersection $ 101,400 Intersection Improvements at East Beach Causeway and Ocean Boulevard Intersection $ 1,354,700 Roundabout at East Beach Causeway and Demere Road Intersection $ 850,900 Intersection Improvements at Sea Island Road and Demere Road Intersection $ 124,200 Roundabout at Kings Way and Frederica Road Intersection $ 1,291,000 Intersection Improvements at GA SR 25 Spur and Altama Connector Intersection $ 3,250,000 Frederica Road Traffic Flow go around Lane Improvements $ 76,000 Sidewalk along Gateway Center Boulevard $ 200,000 Sidewalk Project along Harry Driggers Boulevard $ 1,100,000 Sidewalk Improvements along Ocean Boulevard $ 150,000 Sidewalk Improvements along Frederica Road $ 490,000 Page 2 of 4
11 EXHIBIT A GLYNN COUNTY PROJECTS (continued) ESTIMATED COSTS Sidewalk along U.S. Highway 341 $ 270,000 Sidewalk in Harrington area on Saint Simons Island $ 250,000 Sidewalk along Chapel Crossing Road $ 540,000 Total: $ 38,300,000 Brunswick-Glynn County Water and Sewer Commission Projects Rehabilitation and Rerouting North Mainland District Sewer Collection Lines, Basins and Lift Stations $ 11,700,000 Replacement of City of Brunswick Deteriorated Collection System Sewer Lines and Lift Stations $ 3,300,000 Total Brunswick-Glynn County Water and Sewer Commission: $ 15,000,000 Jekyll Island Authority Projects Road and Public Parking Lot Resurfacing $ 2,300,000 Total Jekyll Island Authority: $ 2,300,000 TOTAL ESTIMATED COSTS OF ALL GLYNN COUNTY PROJECTS $ 55,600,000 Page 3 of 4
12 EXHIBIT A CITY OF BRUNSWICK PROJECTS ESTIMATED COSTS Engineering and Public Works Mill and pave various streets $ 5,350,000 Sidewalk replacement and upgrade $ 500,000 Storm Drainage Improvements $ 3,750,000 Mary Ross Park Development Project $ 950,000 Highway 17 Infrastructure Improvements $ 250,000 Wayfinding & Gateways Improvements $ 400,000 Trails $ 500,000 Cemetery Restoration / Renovations - All $ 300,000 Public Safety Replacement of (10) BPD Vehicles $ 425,000 Addition of (1) Fire/Rescue Vehicle - BFD $ 75,000 Subscriber Radios for 911 Compatibility all PS $ 500,000 New Pumper Trucks - Fire (2) $ 650,000 Fire Station 1 Improvements $ 400,000 Neighborhood and Community Services Historic Squares Improvements $ 100,000 Rehabilitation at Palmetto & Orange Square & other Parks $ 450,000 Sidney Lanier Park Improvements $ 600,000 Overlook Park Improvements $ 120,000 Howard Coffin Park Improvements $ 500,000 Roosevelt Harris Senior Center Improvements $ 175,000 TOTAL ESTIMATED COSTS OF ALL CITY OF BRUNSWICK PROJECTS $ 15,995,000 TOTAL ESTIMATED COSTS OF ALL SPLOST 2016 PROJECTS $ 71,595,000 Page 4 of 4
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