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HomeMy Public PortalAboutDNR 7-22-14 INTERGOVERNMENTAL AGREEMENT BETWEEN THE DEPARTMENT OF NATURAL RESOURCES AND THE CITY OF TYBEE ISLAND THIS INTERGOVERNMENTAL AGREEMENT (the "Agreement"). effective as of the day of - 2014 (the "Effective Date"). is made by and between the DEPARTMENT OF NATURAL RESOURCES(" )NR--)and the CITY OF TYBEE ISLAND.a municipal corporation of the State of Georgia(the"City")(DNR and the City arc sometimes referred to herein individually as a "Party",and collectively as the"Parties"). DEPARTMENT OF NATURAL RESOURCES A. WHEREAS, the DNR is an agency of the State of Georgia (the "State"). created and established in accordance with 0.C.G.A. § I 2-2-1: B. WHEREAS FURTHER, the State is the owner of a certain portion of real property located along the cast shoreline of Tybee Island.Chatham County.Georgia. beginning at the north terminal groin and extending to an area just south of the southern end of Tybee Island ("Tybee Island Beach"): C. WHEREAS FURTHER,the DNR is authorized to contract with any county. municipality, or other political subdivision of the State in accordance with the provisions Article IX. Section III, Paragraph I of the Constitution of the State of Georgia (the"'Georgia Constitution"): D. WHEREAS FURTHER,in 1993 the State granted to the City a permanent and nonexclusive easement for the planning. construction. installation, operation. maintenance, repair and renourishment of Tybce Island Beach: II. CITY OF TYBEE ISLAND A. WHEREAS FURTHER, the City is a party to a Project Cooperation Agreement dated as of . `,7 with the United States of America acting by and through the U.S. Army Corps of Engineers (the "Corps"). for the planning. construction.installation.operation.maintenance,repair and renourishment of Tybee Island Beach(the"Project Cooperation Agreement"): B. WHEREAS FURTHER, pursuant to the terms of the Project Cooperation Agreement.the City is designated as the non-federal sponsor for the renourishment of Tybee Island Beach and is required to contribute a cash contribution,to be calculated in accordance with the Project Cooperation Agreement. to the costs required to renourish Tybee Island Beach over the project period stated in the Project Cooperation Agreement. and such cash contribution shall include the "State Bond Funds"(as defined in Article IV.B. below): III. STATE OF GEORGIA GENERAL OBLIGATION BOND APPROPRIATION A. WHEREAS FURTHER,pursuant to Article VII.Section IV of the Georgia Constitution.the State may finance certain capital needs of the State directly through the issuance of general obligation debt: B. WHEREAS FURTHER, pursuant to Article VII. Section IV. Paragraph VH(a)of the Georgia Constitution.and the"Georgia State Financing and Investment Commission Act". O.C.G.A. § § 50-17-20 through 50-17-30 (the "Commission Act"). the Georgia State Financing and Investment Commission ("GSFIC")is the agency and instrumentality of the State charged with issuing debt of the State and ensuring the proper application,as provided by law,of the proceeds of' such debt to the purposes for%vhich the debt is incurred; C. WHEREAS FURTHER, Article VII, Section IV. Paragraph I (c of the Georgia Constitution, and the Commission Act provide that certain general obligation debt (as defined by 0.C.G.A. § 50-17-21 (5) and hereinafter "General Obligation Debt")may be incurred to acquire,construct.develop,extend,enlarge.or improve land, waters, property. highways. buildings. structures. equipment. or facilities of the State. its agencies. departments. institutions, and of those State authorities which were created and activated prior to November 8. 1960: D. WHEREAS FURTHER,pursuant to Paragraphs I through HI of Section IV of Article VII of the Georgia Constitution.the General Appropriations Act for State Fiscal Year 2014-2015 (Ga. L. 2014, Volume One Appendix, commencing at p. I of 139. Act No. 632, 2014 Regular Session. H.B. 744) was passed by the General Assembly and signed by the Governor on April 28. 2014.so as to make the following appropriation to the State of Georgia General Obligation Debt Sinking Fund for the purpose of financing certain capital projects through the issuance of General Obligation Debt: [Bond 4 124] FEDERALLY TAXABLE From State General Funds.S1.342.120 is specifically appropriated for the purpose of financing projects and facilities for the Department of Natural Resources by means of the acquisition. construction. development, extension, enlargement, or improvement of land, waters. property, highways, buildings. structures. equipment or facilities. both real and personal. necessary or useful in connection therewith, through the issuance of not more than 55.800,000 in principal amount of General Obligation Debt. the instruments of which shall have maturities not in excess of sixty months: E. WHEREAS FURTHER, the legislative history for the appropriation set forth in Article III.D.above(such appropriation hereinafter referred to as the"DNR Bond Authorization") reflects that the intended purpose for the DNR Bond Authorization was to fund,in part,the restoration ofTvbee Beach the"Tybee Beach Project"): F. WHEREAS FURTHER, in accordance with a certain resolution of the Board of Natural Resources(the"Board"),dated as of May 20.2014(the"DNR GO Bond Resolution"),the Board requested that GSFIC issue the general obligation debt authorized in the DNR Bond Authorization for the purpose of financing some or all of the Tybee Beach Project: G. WHEREAS FURTHER,with respect to the DNR Bond Authorization.on July 10. 2014. the State issued 55.800.000 in State of Georgia General Obligation Bonds Series 201413(Federally Taxable)(the"Bonds")for the purpose of financing some or all of the Tybee Beach Project; IV. COOPERATION A. WHEREAS FURTHER,the mutual cooperation and assistance between the State and Georgia's local and municipal governments is beneficial to achieving those State purposes and objectives: B. 'WHEREAS FURTHER,in accordance with the terms and conditions of this Agreement.the DNR shall cause the City to he paid the proceeds from the sale of the Bonds(the"State Bond Funds")to be used by the City in connection with the Tybee Beach Project on behalf of DNR in accordance with the Project Cooperation Agreement: NOW, THEREFORE, in consideration of the foregoing. and in consideration of the mutual promises. public purposes. and acknowledgments and agreements contained herein, together with other good and adequate consideration. the receipt of which is hereby acknowledged, the Parties agree as follows: 1. THE DEPARTMENT OF NATURAL RESOURCES 1.1 The DNR shall. upon the City's request. cause the City to be paid the State Bond Funds for use by the City in connection with the Tybee Beach Project on behalf of the DNR. 3 1.2 Notwithstanding anything in this Agreement to the contrary,the assumption by the City of any rights.responsibilities,and undertakings of the DNR.as described herein, shall in no way discharge or otherwise affect the responsibilities and undertakings of the DNR associated with general bond proceeds, including, but not limited to, those undertakings stated in the DNR GO Bond Resolution. 1.3 In the event that any amount of the State Bond Funds is returned or any other amount is paid to DNR pursuant to Sections 2.3 or 2.4 below, or an event Occurs which requires the return of any State Bond Funds or the payment of any other amount to DNR pursuant to such Sections 2.3 or 2.4. DNR shall provide prompt written notice of such return, or event requiring such return, to the Director of the Financing and Investment Division of GSFIC. 2. CITY OF TYBEE ISLAND 2.1 The City hereby agrees to act as DNR's agent for the Tybee Beach Project in accordance with the terms and conditions of this Agreement and the Project Cooperation Agreement. 2.2 USE OF STATE BOND FUNDS The City hereby agrees that: (a) all of the State Bond Funds received from DNR will be used solely in connection with the Tybee Beach Project on behalf of DNR and for no other purpose: (h) the State Bond Funds shall be used first during the initial construction phase of the Thee Beach Project: (c) in no event shall the City deposit the State Bond Funds in any escrow account established between the City and the Corps: (d) the City will make all records regarding expenditures for the Tybee Beach Project available for auditing purposes to DNR or to such other parties as may be as directed by DNR: (e) the City will provide DNR with monthly progress reports on the expenditure of the State Bond Funds and on the progress of the Tybee Beach Project: 2.3 In the event that the Tybee Beach Project is canceled or not completed. the City shall return to DNR any balance remaining from the State Bond Funds within three(3)business days after return by the Corps to the City of any unused State Bond Funds pursuant to the terms of the Project Cooperation Agreement. 4 2.4 The City agrees that any use of the State Bond Funds other than as specifically provided herein will constitute a material breach of this Agreement and that. upon the occurrence of such a material breach. the City shall pay to DNR an amount equal to the improperly used portion of the State Bond Funds. 3. PROJECT COOPERATION AGREEMENT 3.1 it is understood and agreed between the Parties that DNR shall not be liable fir or responsible to ascertain the terms or conditions of any provision of the aforementioned Project Cooperation Agreement between the City as the non-federal sponsor of the Tvbee Beach Project and the Corps. 3.2 The parties arc executing this Agreement solely for the purposes set forth herein and it is expressly understood by the City that neither the State of Georgia nor GSFIC are obligated by any of the provisions. terms. or conditions of the Project Cooperation Agreement between the City. as the non-federal sponsor. and the Corps. 4. TERM OF THE AGREEMENT 4.1 This Agreement shall commence as of the Effective Date as defined above. for a term of five (5) years ending at 1 1:59 P.M., prevailing legal time in Atlanta. Georgia.on the day immediately preceding the fifth(5th)anniversary of the Effective Date, 4.2 This Agreement may he modified from time to time with the written consent of the Parties. 5. OTHER 5.1 Each Party will comply with all law.guidelines,policies and regulations laws. rule applicable to the activities under this Agreement. 5.2 This Agreement is executed in two (2) counterparts which are separately numbered but each of which is deemed an original of equal dignity with the other and which is deemed one and the same instrument as the other. [Remainder of page intentionally left blank j 5 IN WITNESS WHEREOF,the parties have caused this Agreement to be duly executed in duplicate counterparts.each of which shall he deemed to be an orivinal, the day and year first above written. DEPARTMENT OF NATURAL RESOURCES Mark Williams Commissioner of Natural Resources CITY OF TYREE ISLAND • ,.- kr 7. [Signature page to Intergovernmental Agreement