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Home My WebLink About2014-04-28-Meeting Agenda Finance Committee Meeting Commission Chamber- 4/28/2014- 1:05 PM FINANCE 1. Approve the acquisition of two field mowers for the Augusta Recreation Department – Operations Division. Attachments 2. Approve the replacement of 39 Public Safety Vehicles for the Sheriff’s Office for 2014. Attachments 3. Request approval for the replacement of one (1) aerial bucket truck for Traffic Engineering – Signals Division. Attachments 4. Approve the acquisition of two field mowers for the Augusta Recreation Department – Operations Division. Attachments 5. Motion to approve exercising additional year option in the city's agreement with MAXIMUS to perform Augusta's 2013 Indirect Cost Allocation Study. Attachments 6. Approve development agreement with Cabela's Wholesale Inc. in the Village at Riverwatch Tax Allocation District (TAD 2). Attachments 7. Discussion regarding the implementation of an excise tax on the purchase of energy by manufacturers as authorized by the Georgia General Assembly in 2012 with the passage of HB 386. Attachments 8. Review of approved guidelines for the distribution of SPLOST funds to outside agencies. Attachments 9. Motion to approve the minutes of the Finance Committee held on March 24, 2014. Attachments 10. Motion to approve budget amendment to reflect savings in Public Defender's office realized by converting positions from State of Georgia to City of Augusta. Attachments www.augustaga.gov 11. Discuss public safety exempt employees not being paid for services provided under the inclement weather policy during the ice storm. Attachments 12. Receive as information financial reports for the period ended March 31, 2014. Attachments 13. Consider a request from Mr. Virgil Wimbush regarding a waiver of taxes and penalties for the house located at 2035 Old Savannah Road. Attachments Finance Committee Meeting 4/28/2014 1:05 PM 2014 - Recreation Mower Department:Finance Department - Fleet Management Caption:Approve the acquisition of two field mowers for the Augusta Recreation Department – Operations Division. Background:The Augusta Recreation Department-Operations Division is responsible for the grass mowing and maintenance of all parks, recreation centers, and ball fields in the Augusta area. This requires tremendous amount of grass cutting during the year. The department is currently using the smaller 48 inch and 60 inch mowers for this task which requires more mowers and operators to accomplish this task. This process also creates many mower hours and wear and tear on the smaller units. The acquisition of the new larger field mowers would greatly enhance job efficiency and performance as well as operator’s safety in their ongoing efforts to maintain a stable grass cutting program. Analysis:Fleet Management would like to utilize the Georgia State Contract program to purchase the two field mowers. The State Contract for these type mowers was awarded to the Jerry Pate Turf and Irrigation Company of Atlanta, Georgia. The state bid award number is 99999-SPD-SPD0000043-0006 as indicated by the paperwork which we have attached for your review. Financial Impact:This equipment will be purchased through the use of 2014 capital funds. The total cost of the two field mowers is $144,409.90. Alternatives:(1) Approve the request; (2) Do not approve the request Recommendation:Approve the request to purchase two field mowers from the Jerry Pate Turf and Irrigation Company, Inc, of Atlanta, Georgia. Funds are Available in the Following Accounts: 272-06-1110-54-21120 - Capital Outlay - Recreation Department Cover Memo Item # 1 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 1 Attachment number 1 \nPage 1 of 6 Item # 1 Attachment number 1 \nPage 2 of 6 Item # 1 Attachment number 1 \nPage 3 of 6 Item # 1 Attachment number 1 \nPage 4 of 6 Item # 1 Attachment number 1 \nPage 5 of 6 Item # 1 Attachment number 1 \nPage 6 of 6 Item # 1 Finance Committee Meeting 4/28/2014 1:05 PM 2014 - Sheriff's Vehicles Department:Finance Department - Fleet Management Division Caption:Approve the replacement of 39 Public Safety Vehicles for the Sheriff’s Office for 2014. Background:In December of 2008, Fleet Management submitted a request to replace public safety vehicles as part of the 2011 Sales Tax Referendum. This referendum was passed which will provide 1.5 million dollars for replacement vehicles for Public Safety each year for 5 years. The items listed below are from funds available for Phase VI of the Sales Tax – fourth year. The initial plan of 2008 (when preparing the Sales Tax Referendum) called for the replacement of approximately 42 patrol/pursuit vehicles per year, however with the production curtailment of the Crown Victoria coupled with the increase in pricing, the number of vehicles being requested has been adjusted/reduced to meet the funds available through the Sales Tax. The following vehicles are being requested for 2014; 1). Road Patrol Division – 30 pursuit vehicles (Dodge Chargers) at $29,240.00 each or $877,200.00 total. 2). Traffic Division – 4 pursuit vehicles (Dodge Chargers) at $29,423.00 each or $117,692.00 3). Criminal Investigation Division (CID) – 5 Chevrolet Impalas at $22,627.00 each or $113,135.00 total. One motorcycle will be requested at a later date. Fleet Management is in the process of submitting a request for bids to obtain pricing. Vehicles will be replaced on a one for one basis see attached assessment sheet. Analysis:The Procurement Department published a competitive bid using the Demand Star application for the police pursuit vehicles (Dodge Chargers) , Bid 14-120. Bids were received from five venders; Akins Ford Corp, Butler Dodge, Thomson Chrysler and Carl Gregory Dodge (incomplete bid) and Emergency Equipment Specialist (non compliant).. Akins Ford Corp was the low bidder and in fact, has the State Contract. See attached “tab sheet’s for bid results. For the Patrol package, Akins Ford Corp was low bidder at $29,2540.00 each. For the Traffic package Thomson Chrysler was low bid at $$29,423.00 each. Fleet Management recommends the State Contract for pricing on the Chevrolet Impala’s used by CID at a cost of $22,627.00 each from Hardy Cover Memo Item # 2 Chevrolet. Financial Impact:: 1). Road Patrol Division – 30 pursuit type vehicles (Dodge Chargers) at $ 877,200.00; (2). Traffic Division – 4 pursuit type vehicles (Dodge Chargers) at $117,692.00 and (3) CID – 5 Impala’s for investigators at $113,135.00. The total for all 3 divisions is $1,108,027.00. The planned allocation of the 1.5 million approved in the Sales Tax for the Sheriff’s Office (per year) is $1.2 million with the remaining $300,000 for Animal Services, ARCCI, Coroner, Marshal and District Attorney. Alternatives:1.) Approve the request, 2.) Approve the request in part 3.) Disapprove the request, Recommendation:Approve the request to purchase 39 public safety vehicles of the Sheriff’s Office and declare the replacement vehicles excess and available for auction. Funds are Available in the Following Accounts: Sales Tax Phase VI - 4th Year 328-03-1310/54.22110 211-03- 6001/54.22110 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 2 Attachment number 1 \nPage 1 of 1 Item # 2 Attachment number 2 \nPage 1 of 1 Item # 2 Attachment number 3 \nPage 1 of 6 Item # 2 Attachment number 3 \nPage 2 of 6 Item # 2 Attachment number 3 \nPage 3 of 6 Item # 2 Attachment number 3 \nPage 4 of 6 Item # 2 Attachment number 3 \nPage 5 of 6 Item # 2 Attachment number 3 \nPage 6 of 6 Item # 2 Invitation to Bid Sealed bids will be received at this office on Wednesday, February 19, 2014 @ 11:00 a.m. for furnishing: Bid Item 14-120 Dodge Police Automobile for Fleet Management Bid Item 14-124 Hydraulic Excavator w/Transport Trailer for Fleet Management Bids will be received by Augusta, GA Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams Procurement Department 530 Greene Street - Room 605 Augusta, Georgia 30901 706-821-2422 Bid documents may be viewed on the Augusta, Georgia web site under the Procurement Department ARCbid. Bid documents may be obtained at the office of the Augusta, GA Procurement Department, 530 Greene Street – Room 605, Augusta, GA 30901. Documents may be examined during regular business hours at the offices of Augusta, GA Procurement Department. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Friday, February 7, 2014 @ 5:00 P.M. No bid will be accepted by fax, all must be received by mail or hand delivered. The local bidder preference program is applicable to this project. To be approved as a local bidder and receive bid preference an eligible bidder must submit a completed and signed written application to become a local bidder at least thirty (30) days prior to the date bids are received on an eligible local project. An eligible bidder who fails to submit an application for approval as a local bidder at least thirty (30) days prior to the date bids are received on an eligible local project, and who otherwise meets the requirements for approval as a local bidder, will not be qualified for a bid preference on such eligible local project. No Bid may be withdrawn for a period of 90 days after time has been called on the date of opening. Invitation for bids and specifications. An invitation for bids shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the invitation to bid including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark BID number on the outside of the envelope. Bidders are cautioned that acquisition of BID documents through any source other than the office of the Procurement Department is not advisable. Acquisition of BID documents from unauthorized sources places the bidder at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. GERI A. SAMS, Procurement Director Augusta Chronicle January 16, 23, 30, February 6, 2014 Metro Courier January 22, 2014 Revised: 3/7/2013 Attachment number 4 \nPage 1 of 1 Item # 2 UNOFFICIAL Vendors THOMSON CHRYSLER DODGE JEEP 2158 WASHINGTON ROAD THOMSON, GA 30824 AKINS FORD CORP 220 WESY MAY STREET WINDER, GA 30680 BUTLER CHRYSLER DODGE JEEP 1555 SALEM ROAD BEAUFORT, SC 29902 CARL GREGORY DODGE 2201 VICTORY DRIVE COLUMBUS, GA 31901 EMERGENCY EQUIPMENT SPECIALISTS 737 HARRY MCMARTHY RD SUITE 104, BETHLEHEM, GA 30620 Attachment B YES YES YES YES YES E-Verify Number 369935 388164 NO/ NON-COMPLIANT 511388 702763 SAVE Form YES YES YES YES YES 5.01 - Adminis Package $24,640.00 $24,615.00 NO BID $24,637.00 5.03 - Marshal Package $27,616.00 $27,591.00 NO BID $26,966.00 5.04 - Patrol Package $29,262.00 $29,240.00 $21,275.00 $29,141.00 5.05 Traffic Package $29,423.00 $29,425.00 $21,275.00 $28,918.00 6.01 - HEMI 5.7 Liter Engine $2,230.00 $410.00 NO BID $1,985.00 6.02 - Rear Mounted Backup Sensor System $300.00 $267.00 NO BID $259.00 6.03 - Rear View Backup Camera System NA $500.00 NO BID $450.00 6.04 - Special Exterior Paint Colors Each $500.00 $445.00 NO BID $500.00 6.05 - Police Charger "Conven Group"$495.00 $427.00 NO BID $480.00 6.06 - Police Charger "Connec Group"$495.00 $441.00 NO BID $495.00 7.01 - Whelen SX8BBBB LED Light Bar $1,650.00 $1,650.00 NO BID $1,085.00 7.02 - Jotto Desk 425- 6175 console $465.00 $465.00 NO BID $456.00 7.03 - Jotto Desk 425- 6260 armrest $55.00 $55.00 NO BID $55.00 7.04 - Jotto Desk 425- 3704 cup holder $45.00 $45.00 NO BID $42.00 6.00 Optional Items 7.00 Outfitter's Specialty Items $25,780.00 $25,642.00 5.00 Vehicle/Options Required NO BID Bid Item #14-120 Dodge Police Automobile for Augusta, Georgia - Fleet Management Department Bid Opening Date: Wednesday, February 19, 2014 @ 11:00 a.m. $25,755.005.02 - Civil Package Page 1 of 3 Attachment number 5 \nPage 1 of 3 Item # 2 UNOFFICIAL Vendors THOMSON CHRYSLER DODGE JEEP 2158 WASHINGTON ROAD THOMSON, GA 30824 AKINS FORD CORP 220 WESY MAY STREET WINDER, GA 30680 BUTLER CHRYSLER DODGE JEEP 1555 SALEM ROAD BEAUFORT, SC 29902 CARL GREGORY DODGE 2201 VICTORY DRIVE COLUMBUS, GA 31901 EMERGENCY EQUIPMENT SPECIALISTS 737 HARRY MCMARTHY RD SUITE 104, BETHLEHEM, GA 30620 7.05 - Havis Shields PKG-PSM-144 Lapstd $293.00 $293.00 NO BID $342.00 7.06 - Sho-Me 05.6000 six control switch $120.00 $120.00 NO BID $146.00 7.07 - Outlet Receptacle $20.00 $20.00 NO BID $21.00 7.08 - 2 each Talon rocker switches $10.00 $10.00 NO BID $43.00 7.09 - Jumper cable connection $178.00 $178.00 NO BID $190.00 7.10 - Corner Lighting $532.00 $532.00 NO BID $437.00 7.11 - Whelen SLPMMBB Blue/Blue fl light $285.00 $285.00 NO BID $155.00 7.12 - Whelen SLPMMBA dual LED flasher light $285.00 $285.00 NO BID $155.00 7.13 - Whelen Alpha 12R siren controller $233.00 $233.00 NO BID $297.00 7.14 - Whelen SA315P In-Grille Speaker/Siren $248.00 $248.00 NO BID $175.00 7.15 - Setina #10S-C security partition $570.00 $570.00 NO BID $628.00 7.16 - Full lower extension plate w/toe kick $100.00 $100.00 NO BID $62.00 7.17 - Rear Door Panels-Pro Guard DP56C11 $145.00 $145.00 NO BID $171.00 7.18 - Rear side Windows barriers $220.00 $220.00 NO BID $223.00 7.19 - Rear seat-Pro Guard F56C06 $445.00 $445.00 NO BID $410.00 7.20 - Floor Pan-Pro Guard F56C06 $180.00 $180.00 NO BID $192.00 7.21 - Shotgun mount and lock ELS210 $300.00 $300.00 NO BID $360.00 Page 2 of 3 Attachment number 5 \nPage 2 of 3 Item # 2 UNOFFICIAL Vendors THOMSON CHRYSLER DODGE JEEP 2158 WASHINGTON ROAD THOMSON, GA 30824 AKINS FORD CORP 220 WESY MAY STREET WINDER, GA 30680 BUTLER CHRYSLER DODGE JEEP 1555 SALEM ROAD BEAUFORT, SC 29902 CARL GREGORY DODGE 2201 VICTORY DRIVE COLUMBUS, GA 31901 EMERGENCY EQUIPMENT SPECIALISTS 737 HARRY MCMARTHY RD SUITE 104, BETHLEHEM, GA 30620 7.22 - Shotgun Mount- GEE MFG FT - 2 Lid $90.00 $90.00 NO BID $72.00 7.23 - Push Bumper- Go Rhino 5076 $300.00 $300.00 NO BID $305.00 7.24 - Headlight guard- Go Rhino 5076WHD $370.00 $370.00 NO BID $383.00 7.25 - #35 window tint film application $140.00 $140.00 NO BID $210.00 7.26 - Fire Extinguisher $50.00 $50.00 NO BID $98.00 Approximate Delivery Schedule 8 TO 10 WEEKS 8 TO 10 WEEKS ARO AS REQUESTED BY AGENCY Page 3 of 3 Attachment number 5 \nPage 3 of 3 Item # 2 Attachment number 6 \nPage 1 of 1 Item # 2 Attachment number 7 \nPage 1 of 1 Item # 2 Attachment number 8 \nPage 1 of 1 Item # 2 Attachment number 9 \nPage 1 of 3 Item # 2 Attachment number 9 \nPage 2 of 3 Item # 2 Attachment number 9 \nPage 3 of 3 Item # 2 Finance Committee Meeting 4/28/2014 1:05 PM 2014 - Traffic Engineering Bucket Truck Department:Finance Department - Fleet Management Caption:Request approval for the replacement of one (1) aerial bucket truck for Traffic Engineering – Signals Division. Background:Traffic Engineering – Signals Division would like to request the replacement of one (1) older bucket truck, asset number 994118, a 1998 model with excessive idle time and wear and tear. The division also now requires a unit with a higher reach capability due to lights being placed at higher elevations. The new proposed truck will be able to reach the extended heights and in addition, will have a material handling capability creating a much wider range of job diversity. This will also enable the employees to complete the jobs at a safer and faster pace. Therefore, the new proposed truck will greatly enhance safety and job performance capabilities Analysis:: The Procurement Department published a competitive bid using the Demand Star application for the proposed bucket truck - Bid 13-235. Bids were received from two venders; Time Versalift which did not meet required specifications; and Altec Industries, Inc, = $147,225.00 which was the only compliant bidder. See attached documents Financial Impact:The aerial bucket truck will be purchased with 2014 capital fund account for $147,255.00. Alternatives:1, Approve the request; 2. Do not approve the request Recommendation:Approve the replacement of one (1) aerial bucket truck and declare the replaced truck as excess and available for auction. Funds are Available in the Following Accounts: 272-01-6440/54.22210 - Capital Outlay for 2014 Cover Memo Item # 3 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Attachment number 1 \nPage 1 of 1 Item # 3 Attachment number 2 \nPage 1 of 1 Item # 3 Invitation to Bid Sealed bids will be received at this office on Friday, December 13, 2013 @ 11:00 a.m. for furnishing: Bid Item 13-233 Forklift for Fleet Management Bid Item 13-235 Aerial Bucket Truck for Fleet Management Bids will be received by Augusta, GA Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams Procurement Department 530 Greene Street - Room 605 Augusta, Georgia 30901 706-821-2422 Bid documents may be viewed on the Augusta, Georgia web site under the Procurement Department ARCbid. Bid documents may be obtained at the office of the Augusta, GA Procurement Department, 530 Greene Street – Room 605, Augusta, GA 30901. Documents may be examined during regular business hours at the offices of Augusta, GA Procurement Department. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Friday, December 6, 2013 @ 5:00 P.M. No bid will be accepted by fax, all must be received by mail or hand delivered. The local bidder preference program is applicable to this project. To be approved as a local bidder and receive bid preference an eligible bidder must submit a completed and signed written application to become a local bidder at least thirty (30) days prior to the date bids are received on an eligible local project. An eligible bidder who fails to submit an application for approval as a local bidder at least thirty (30) days prior to the date bids are received on an eligible local project, and who otherwise meets the requirements for approval as a local bidder, will not be qualified for a bid preference on such eligible local project. No Bid may be withdrawn for a period of 90 days after time has been called on the date of opening. Invitation for bids and specifications. An invitation for bids shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the invitation to bid including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark BID number on the outside of the envelope. Bidders are cautioned that acquisition of BID documents through any source other than the office of the Procurement Department is not advisable. Acquisition of BID documents from unauthorized sources places the bidder at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. GERI A. SAMS, Procurement Director Augusta Chronicle November 14, 21, 28, December 5, 2013 Metro Courier November 20, 2013 Revised: 3/7/2013 Attachment number 3 \nPage 1 of 1 Item # 3 UNOFFICIAL Vendors Altec Industries 2106 S Riverside Road ST Joseph, MO 64507 O.G. Hughes & Sons 4816 Rutledge Pike Knoxville, TN 37914 ATTACHMENT B Yes Yes E-VERIFY NUMBER 192933 267499 SAVE FORM Yes Yes YEAR 2015 2015 MAKE Ford Ford MODEL F750 F750 UTILITY BODY: YEAR 2014 2014 MAKE Altec Knapheide MODEL ASLS 6137HC AERIAL DEVICE: YEAR 2014 2014 MAKE Altec Time/Versalift MODEL TA45M VST-47 SI BID PRICE $140,640.00 $136,853.00 DELIVERY SCHEDULE 260-280 Days ARO 210-240 Days ARO 11.00 OPTIONAL ITEMS 11.01 EXT CAB CHASSIS $1,538.00 $1,900.00 11.02 WINCH $2,973.00 $2,053.00 11.03 INVERTER $2,074.00 $900.00 The following vendors did not respond: ASC Construction Equipment / 2303 Edmund Highway / Cayce, SC - 28269 Allan Vigil Ford / 6790 Mt Zion Blvd / Morrow, GA 30260 Bobby Jones Ford / 3480 Wrightsboro Rd / Augusta, GA 30909 Bid Opening Date: Friday, December 13, 2013 @ 11:00 a.m. AERIAL BUCKET TRUCK WITH MATERIAL HANDLER CHASSIS: Bid Item #13-235 Aerial Bucket Truck for the City of Augusta - Fleet Management Department Page 1 of 1 Attachment number 4 \nPage 1 of 1 Item # 3 Attachment number 5 \nPage 1 of 2 Item # 3 Attachment number 5 \nPage 2 of 2 Item # 3 Attachment number 6 \nPage 1 of 3 Item # 3 Attachment number 6 \nPage 2 of 3 Item # 3 Attachment number 6 \nPage 3 of 3 Item # 3 Finance Committee Meeting 4/28/2014 1:05 PM 2014-Recreation Field Mowers Department:Finance-Fleet Management Division Caption:Approve the acquisition of two field mowers for the Augusta Recreation Department – Operations Division. Background:The Augusta Recreation Department-Operations Division is responsible for the grass mowing and maintenance of all parks, recreation centers, and ball fields in the Augusta area. This requires tremendous amount of grass cutting during the year. The department is currently using the smaller 48 inch and 60 inch mowers for this task which requires more mowers and operators to accomplish this task. This process also creates many mower hours and wear and tear on the smaller units. The acquisition of the new larger field mowers would greatly enhance job efficiency and performance as well as operator’s safety in their ongoing efforts to maintain a stable grass cutting program. Analysis:Fleet Management would like to utilize the Georgia State Contract program to purchase the two field mowers. The State Contract for these type mowers was awarded to the Jerry Pate Turf and Irrigation Company of Atlanta, Georgia. The state bid award number is 99999-SPD-SPD0000043-0006 as indicated by the paperwork which we have attached for your review. Financial Impact:This equipment will be purchased through the use of 2014 capital funds. The total cost of the two field mowers is $144,409.90. Alternatives:(1) Approve the request; (2) Do not approve the request. Recommendation:Approve the request to purchase two field mowers from the Jerry Pate Turf and Irrigation Company, Inc, of Atlanta, Georgia. Funds are Available in the Following Accounts: 2014 Capital outlay 272-06-1110-54-21120 Cover Memo Item # 4 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 4 Attachment number 1 \nPage 1 of 6 Item # 4 Attachment number 1 \nPage 2 of 6 Item # 4 Attachment number 1 \nPage 3 of 6 Item # 4 Attachment number 1 \nPage 4 of 6 Item # 4 Attachment number 1 \nPage 5 of 6 Item # 4 Attachment number 1 \nPage 6 of 6 Item # 4 Finance Committee Meeting 4/28/2014 1:05 PM Approve 2013 Indirect Cost Allocation Study Department:Finance Caption:Motion to approve exercising additional year option in the city's agreement with MAXIMUS to perform Augusta's 2013 Indirect Cost Allocation Study. Background:The Georgia General Assembly House Bill 491 mandates Indirect Cost Studies be performed for local governments with expenditures totaling $10 million or more. This study provides the basis of the budget for the allocation of costs to all funds receiving services from the General Fund. Analysis:After a Request for Proposals (RFP) solicited qualified vendors, MAXIMUS was selected and approved to perform the city's 2010 Indirect Cost Allocation Study with the option for four additional years. This will be the 3rd year of the 4 year option. MAXIMUS will develop and prepare the city's Full Cost Allocation Plan, OMB Circular A-87 Cost Plan and Augusta Public Transit's Plan. Financial Impact:MAXIMUS will prepare the city's aforementioned 2013 cost plans, and as necessary, submit and negotiate approval with HUD for the total professional fee of $21,330. Alternatives:Do not exercise additional year option on current approved agreement. Recommendation:Approve exercising additional year option on current agreement between Augusta Georgia and MAXIMUS for the required 2013 Indirect Cost Allocation Plans. Funds are Available in the Following Accounts: Funds are available 101-01-5120/52-11110 REVIEWED AND APPROVED BY: Cover Memo Item # 5 Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 5 Attachment number 1 \nPage 1 of 9 Item # 5 Attachment number 1 \nPage 2 of 9 Item # 5 Attachment number 1 \nPage 3 of 9 Item # 5 Attachment number 1 \nPage 4 of 9 Item # 5 Attachment number 1 \nPage 5 of 9 Item # 5 Attachment number 1 \nPage 6 of 9 Item # 5 Attachment number 1 \nPage 7 of 9 Item # 5 Attachment number 1 \nPage 8 of 9 Item # 5 Attachment number 1 \nPage 9 of 9 Item # 5 Finance Committee Meeting 4/28/2014 1:05 PM Development Agreement with Cabela's Wholesale, Inc. Department:Finance / Administrator Caption:Approve development agreement with Cabela's Wholesale Inc. in the Village at Riverwatch Tax Allocation District (TAD 2). Background:In 2010 the Augusta Commission created the Village at Riverwatch Tax Allocation District (TAD 2) using the Redevelopment Powers Law (O.C.G.A 36-44-1). The purpose of a Tax Allocation Districts is to offer economic incentives to enhance the redevelopment within the district. The first development agreement approved for TAD 2 was with the MG Herring Group, which brought CostCo to Augusta. The creation of the TAD has increased interest in businesses locating in Augusta including Cabela's. Analysis:The development of a retail center is dependent on attacting key businesses to locate in a center so that other large and small businesses will locate in or near the center. The use of a TAD has allowed Augusta to offer ecomonic incentives funded by the incremental growth in the tax base of the TAD. The first key business to locate in TAD 2 was CostCo and now Cabela's has located in phase two of the Village at Riverwatch development due to the TAD. The attached development agreement reimburses Cabela's for its investment in infrastructure redevelopment costs from the Special Fund as ad valorem taxes are collected. Financial Impact:Funds for the reimbursement of the redevelopment costs will come from the incremental growth in phase two of TAD 2. No sales tax will be used for the reimbursement of Cabela's redevelopment costs. All sales tax generated by Cabela's will go to Augusta. Alternatives:n/a Recommendation:approve development agreeement. Cover Memo Item # 6 Funds are Available in the Following Accounts: Fund 292 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 6 DEVELOPMENT AGREEMENT Between Augusta, Georgia and Cabela’s Wholesale, Inc. In the Village at Riverwatch Tax Allocation District As of _________________, 2014 Attachment number 1 \nPage 1 of 42 Item # 6 ARTICLE I RECITALS .................................................................................................................. 1 ARTICLE II GENERAL TERMS .................................................................................................... 2 Section 2.1 Definitions ...................................................................................................... 2 Section 2.2 Singular and Plural ......................................................................................... 6 ARTICLE III REPRESENTATIONS AND WARRANTIES ........................................................... 6 Section 3.1 Representations and Warranties of Developer ............................................... 6 Section 3.2 Representations and Warranties of Augusta .................................................. 8 Section 3.3 Parties to Cooperate ....................................................................................... 8 Section 3.4 Payment of Administrative Fee ...................................................................... 9 ARTICLE IV DEVELOPMENT AND CONSTRUCTION .............................................................. 9 Section 4.1 Construction of the TAD Project and the Cabela’s Project .......................... 10 Section 4.2 Approvals Required for the Project .............................................................. 10 Section 4.3 Unreasonable Delay or Abandonment; Cessation of Work ......................... 10 Section 4.4 Material Modifications ................................................................................. 10 Section 4.5 Project Modifications. Developer shall provide notice to Augusta immediately upon the occurrence of a Project Modification ....................... 10 ARTICLE V DUTIES, RESPONSIBILITIES and special covenants OF Developer .................... 10 Section 5.1 Completion of the Project ............................................................................ 10 Section 5.2 Compliance with Documents ....................................................................... 11 Section 5.3 Litigation ...................................................................................................... 11 Section 5.4 Maintenance of the Project ........................................................................... 11 Section 5.5 Records and Accounts .................................................................................. 11 Section 5.6 Liens and Other Charges .............................................................................. 11 Section 5.7 Compliance with Laws, Contracts, Licenses, and Permits ........................... 11 Section 5.8 Laborers, Subcontractors and Materialmen .................................................. 11 Section 5.9 Taxes ............................................................................................................ 12 Section 5.10 Insurance ...................................................................................................... 12 Section 5.11 Further Assurances and Corrective Instruments........................................... 12 Section 5.12 Performance by Developer ........................................................................... 12 Section 5.13 Restrictions on Easements and Covenants ................................................... 12 Section 5.14 Access to the Site ......................................................................................... 12 Section 5.15 Delivery of Documents ................................................................................ 12 Section 5.16 Scope of Developer Commitments............................................................... 13 Attachment number 1 \nPage 2 of 42 Item # 6 ARTICLE VI ADVANCES; DISBURSEMENT; REIMBURSEMENT FUND; FINANCING ALTERNATIVES .............................................................................. 13 Section 6.1 Advances ...................................................................................................... 13 Section 6.2 Disbursements .............................................................................................. 13 Section 6.3 Limited Liability .......................................................................................... 14 Section 6.4 Reimbursement (Special) Fund .................................................................... 15 Section 6.5 Alternative Financing ................................................................................... 15 ARTICLE VII INDEMNIFICATION ............................................................................................... 15 Section 7.1 Indemnification ............................................................................................ 15 Section 7.2 Notice of Claim ............................................................................................ 15 Section 7.3 Defense ......................................................................................................... 16 Section 7.4 Separate Counsel .......................................................................................... 16 Section 7.5 Survival ........................................................................................................ 16 ARTICLE VIII DEFAULT ................................................................................................................. 16 Section 8.1 Default by Developer ................................................................................... 16 Section 8.2 Remedies ...................................................................................................... 17 Section 8.3 Remedies Cumulative .................................................................................. 17 Section 8.4 Agreement to Pay Attorneys’ Fees and Expenses ........................................ 17 Section 8.5 Default by Augusta ....................................................................................... 17 Section 8.6 Remedies Against Augusta .......................................................................... 17 ARTICLE IX MISCELLANEOUS .................................................................................................. 17 Section 9.1 Term of Agreement ...................................................................................... 17 Section 9.2 Notices .......................................................................................................... 18 Section 9.3 Amendments and Waivers............................................................................ 18 Section 9.4 Invalidity ...................................................................................................... 18 Section 9.5 Successors and Assigns ................................................................................ 18 Section 9.6 Schedules; Titles of Articles and Sections ................................................... 19 Section 9.7 Applicable Law ............................................................................................ 19 Section 9.8 Entire Agreement ......................................................................................... 19 Section 9.9 Approval by the Parties ................................................................................ 19 Section 9.10 Additional Actions ....................................................................................... 19 Attachment number 1 \nPage 3 of 42 Item # 6 1 DEVELOPMENT AGREEMENT This Development Agreement (the “Agreement”), dated as of the _______ day of ________, 2014, is made by and between Augusta, Georgia, a political subdivision of the State of Georgia (“Augusta”), and Cabela’s Wholesale, Inc., a Nebraska corporation, authorized to do business in Georgia, as Developer. Capitalized terms used herein and not otherwise defined have the meanings given to them in Article II. ARTICLE I RECITALS WHEREAS, Augusta is duly authorized to exercise the redevelopment powers granted to cities and counties in the State pursuant to the Redevelopment Powers Law and in accordance with House Bill 773 enacted by the General Assembly in 2006 (2006 GA. LAWS p. 4507, et seq.) and approved in a referendum on November 6, 2006; and WHEREAS, by a Resolution duly adopted on December 7, 2010 (the “TAD Resolution”), following a public hearing as required by law, the Augusta-Richmond County Commission approved the Village at Riverwatch Redevelopment Plan and created Tax Allocation District Number Two -- Village at Riverwatch (the “Village at Riverwatch TAD”); and WHEREAS, the Redevelopment Powers Law provides that Augusta may enter into public-private partnerships to effect the redevelopment projects contemplated in the Redevelopment Plan; and WHEREAS, the TAD Resolution expressed the intent of Augusta, as set forth in the Redevelopment Plan, to provide funds to induce and stimulate redevelopment in the Village at Riverwatch TAD; and WHEREAS, the undertakings contemplated by the Redevelopment Plan include, among other renewal activity, redevelopment of the “Village at Riverwatch Project” including the 115-acre commercial redevelopment along Riverwatch Parkway at Interstate 20 within Augusta; and WHEREAS, Developer is the owner of the Cabela’s Tract which is located within the Village at Riverwatch TAD; and WHEREAS, Developer seeks to undertake the redevelopment of its property into a Cabela’s Outpost store and other related commercial uses; and WHEREAS, in order to induce and further facilitate the successful accomplishment of this portion of the Redevelopment Plan, Augusta has indicated its intent to exercise its authority under the Redevelopment Powers Law and in accordance with State law to enter into this Development Agreement with Developer, pursuant to which, subject to the conditions described herein, a portion of the Tax Allocation Increment collected in the Village at Riverwatch TAD will be used to reimburse Developer for certain Redevelopment Costs advanced by Developer in connection with the TAD Project; and WHEREAS, Developer agrees, pursuant to the terms of this Agreement, to undertake this critical revitalization in Augusta and to pursue the Cabela’s Project consistent with the Village at Riverwatch Redevelopment Plan. Attachment number 1 \nPage 4 of 42 Item # 6 2 AGREEMENT OW THEREFORE , Augusta and Developer, for and in consideration of the mutual promises, covenants, obligations and benefits of this Agreement, hereby agree as follows: ARTICLE II GEERAL TERMS Section 2.1 Definitions. Unless the context clearly requires a different meaning, the following terms are used herein with the following meanings: “Act of Bankruptcy” means the making of an assignment for the benefit of creditors, the filing of a petition in bankruptcy, the petitioning or application to any tribunal for any receiver or any trustee of the applicable Person or any substantial part of its property, the commencement of any proceeding relating to the applicable Person under any reorganization, arrangement, readjustments of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, or if, within 60 days after the filing of a bankruptcy petition or the commencement of any proceeding against the applicable Person seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, the proceedings have not been dismissed, or, if, within 60 days after the appointment, without the consent or acquiescence of the applicable Person, of any trustee, receiver or liquidator of the applicable Person or of the land owned by the applicable Person, the appointment has not been vacated. “Administrative Fee” means (i) Augusta’s reasonable and necessary initial expenditures for legal and professional fees incurred in connection with the drafting, negotiation and approval of this Agreement, (ii) Augusta’s annual administrative fee not to exceed $5,000.00 per year and (iii) Augusta’s reasonable and necessary annual expenditures for legal and professional fees incurred in connection with the Cabela’s Project after the execution of this Agreement not to exceed $5,000.00 per year, all of which shall be paid to Augusta from the Reimbursement Fund and shall have the highest priority of payment from the Reimbursement Fund, as provided in Section 3.4. “Advances” means advances by Developer or any other Person or entity to pay any costs that constitute Reimbursement Costs associated with the TAD Project or for which Developer may be entitled to reimbursement pursuant to Section 6.2(f). “Affiliate” means, with respect to any Person, (a) a parent, partner, member or owner of such Person or of any Person identified in clause (b) below, and (b) any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise. “Augusta” means Augusta, Georgia, a political subdivision of the State of Georgia. “Cabela’s” means Cabela’s Wholesale, Inc., a Nebraska corporation, and its successors and assigns. “Cabela’s Project” means the approximately 5.842 acre portion of the 115 acre Village at Riverwatch commercial redevelopment along Riverwatch Parkway at Interstate 20 within Augusta, as more fully described in Schedule B-1 hereto, as such Schedule may be amended or modified from time to time, and including the Cabela’s Vertical Development and the TAD Project. Attachment number 1 \nPage 5 of 42 Item # 6 3 “Cabela’s Project Completion Date” means December 31, 2014, the anticipated date of substantial completion of the Cabela’s Project which includes a schedule contingency for unanticipated delays. “Cabela’s Tract” means the parcel within the Site Plan identified on Schedule A-2 on which Developer will construct or cause to be constructed the Cabela’s Project. “Cabela’s Vertical Development” means construction of a retail store by or on behalf of Cabela’s on the Cabela’s Tract. “Developer” means Cabela’s Wholesale, Inc., a Nebraska corporation, developer of the Cabela’s Project. “Development Team” means Developer and development partners, in any. “Effective Date” means ______________________, the effective date of this Agreement. “Environmental Laws” means, including but without limitation, the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., as amended, the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986, and as further amended, the Clean Water Act, 33 U.S.C. § 1251 et seq., as amended, the Clean Air Act, 42 U.S.C. § 7401 et seq., as amended, the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., as amended, and any other applicable federal law relating to health, safety or the environment. “Environmental Report” means the Environmental Site Assessment Phase I, Village at Riverwatch, Alexander Drive, Augusta, Georgia report number H-019.13 dated June 11, 2013 prepared by CSRA Testing and Engineering Co., Inc. “Force Majeure” means the actual period of any delay in the final completion date of the TAD Project, or the Cabela’s Project, as applicable, caused by fire, unavailability of manufactured materials, earthquake, flood, explosion, war, acts of terrorism, invasion, insurrection, mob violence, sabotage, lockouts, litigation, condemnation, riots or other civil disorder, national or local emergency, act of God, unusual delays in transportation, unusual delay in obtaining lawful permits or consents to which the applicant is legally entitled, strike or labor dispute, severe weather conditions, or delays caused by Augusta in excess of 30 days in responding to proposals for Material Modifications pursuant to Section 4.4, in any such case entitling Developer a commensurate extension of time to perform and complete its obligations delayed thereby under this Agreement. Developer will give written notice in accordance with Section 9.2 as soon as reasonably practical after the start of the Force Majeure event or occurrence giving rise to the delay, specifically identifying the occurrence or event and the anticipated resulting delays to the TAD Project or the Cabela’s Project, as applicable. “General Contractor” means an experienced, licensed, bondable and reputable general contractor selected by Developer. “Hazardous Substances” means any hazardous waste, as defined by 42 U.S.C. § 6903(5), any hazardous substances as defined by 42 U.S.C. § 9601(14), any pollutant or contaminant as defined by 42 U.S.C. § 9601(33), and any toxic substances, oil or hazardous materials or other chemicals or substances regulated by any Environmental Laws. “Legal Requirements” means any legal requirements (including, without limitation, Environmental Laws), including any local, state or federal statute, law, ordinance, rule or regulation, now Attachment number 1 \nPage 6 of 42 Item # 6 4 or hereafter in effect, or order, judgment, decree, injunction, permit, license, authorization, certificate, franchise, approval, notice, demand, direction or determination of any governmental authority. “Material Modification” means (i) any modification, change or alteration in the description of the TAD Project or the Cabela’s Project, as applicable, that would add uses other than the following uses that are currently contemplated: retail shops and restaurants, hotels, banks, office space, and other related commercial uses; or (ii) any extension of the TAD Project Schedule beyond the TAD Project Completion Date. “Permitted Exceptions” means all of the following: (i) any reasonable and customary exceptions that serve or enhance the use or utility of the TAD Project or the Cabela’s Project arising in the course of and necessary in connection with the construction, or ultimate operation, of the TAD Project or the Cabela’s Project, including by way of example and not of limitation, easements granted to public utility companies or governmental bodies (for public rights-of-way or otherwise), (ii) any other exceptions expressly approved in writing by Augusta; (iii) real property taxes, bonds and assessments (including assessments for public improvements) not yet due and payable; and (iv) any exceptions approved by Developer’s lender. “Person” includes a corporation, a trust, an association, a partnership (including a limited liability partnership), a joint venture, an unincorporated organization, a business, an individual or natural person, a joint stock company, a limited liability company, or any other entity. “Phase II” means the portion of the site plan as shown on schedule A-2 of the Development Agreement between Augusta, Georgia and Augusta Village at Riverwatch, LLC dated as of April 19, 2011, which site plan and schedule are attached to this Agreement as Schedule J and made a part hereof. “Plans” means the Site Plan and the construction plans for the TAD Project as the same may be modified from time to time, including any Material Modifications. “Project Approvals” means all approvals, consents, waivers, orders, agreements, authorizations, permits and licenses required under applicable Legal Requirements or under the terms of any restriction, covenant or easement affecting the TAD Project or the Cabela’s Project, as applicable, or otherwise necessary or desirable for the ownership, acquisition, construction, equipping, use or operation thereof, whether obtained from a governmental authority or any other person. “Project Financing” means any loans, financing, equity investment, or other agreement (other than this Agreement) provided to or for the benefit of Developer to finance, directly or indirectly, any portion of the TAD Project. “Project Modification” means (i) any aggregate change in the TAD Project Budget in excess of fifteen percent (15%); or (ii) any delay in or cessation of work on the TAD Project for over 120 days cumulative (but not beyond the TAD Project Completion Date). “Redevelopment Costs” has the meaning given that term by O.C.G.A. § 36-44-3(8) and as used in this Agreement, means Redevelopment Costs of the TAD Project and any other Redevelopment Costs (as defined in the Redevelopment Powers Law) contemplated by this Agreement. “Redevelopment Plan” means the Village at Riverwatch Redevelopment Plan for Augusta Tax Allocation District Number Two approved by Augusta pursuant to the TAD Resolution on December 7, 2010, following a public hearing as required by law, as may be amended from time to time. Attachment number 1 \nPage 7 of 42 Item # 6 5 “Redevelopment Powers Law” means the Redevelopment Powers Law, O.C.G.A. §36-44-1, et seq., as may be amended from time to time. “Reimbursement Costs” means categories of Redevelopment Costs for which Augusta has agreed to reimburse Advances from the Reimbursement Fund as shown on Schedule D attached hereto. “Reimbursement Fund” means that account within the Special Fund that is established by Augusta in accordance with Section 6.4 for reimbursement of Advances. “Requisition” means a requisition in substantially the form attached as Schedule E hereto (or such other form approved by Augusta). “School Board” means the Board of Education of Richmond County, Georgia. “Site” means the real property on which the Cabela’s Project will be located within the Village at Riverwatch TAD, as more specifically identified in Schedule A-1 hereto. “Site Plan” means the plan for development of the Cabela’s Project as more specifically identified in Schedule A-2 hereto. “Special Fund” means the bank account established by Augusta for the collection of Tax Allocation Increment and payment of Disbursements as permitted under this Agreement. “State” means the State of Georgia. “TAD Bonds” means tax allocation bonds, notes or other obligations that may be issued by Augusta to finance the acquisition, construction and equipping of improvements related to the Cabela’s Project and related Redevelopment Costs, secured by all or a defined portion of the Tax Allocation Increment, as contemplated by and provided in O.C.G.A. § 36-44-3(12). “TAD Project” means those improvements identified and more fully described in Schedule B-2 hereto as such Schedule may be amended or modified from time to time, including the Cabela’s Project (but not including Cabela’s Vertical Development), a portion of the costs of which are to be advanced by Developer and reimbursed to Developer from the Reimbursement Fund as contemplated by this Agreement. “TAD Project Budget” means the projected cost for acquisition, financing, and construction of the TAD Project as set forth in Schedule D hereto, as such Schedule may be amended or modified from time to time, including any Project Modifications. “TAD Project Completion Date” means December 31, 2014, the anticipated date of substantial completion of the TAD Project (as evidenced by delivery by Developer to Augusta of the certificate contemplated in Section 4.1(e)). “TAD Project Construction Schedule” means the estimated schedule for construction of the TAD Project as set forth in Schedule C-1, as such Schedule may be amended or modified from time to time, including any Project Modifications or Material Modifications. “TAD Resolution” means the Resolution duly adopted by the Augusta-Richmond County Commission on December 7, 2010, following a public hearing as required by law, pursuant to which Augusta approved the Redevelopment Plan and created the Village at Riverwatch Village TAD. Attachment number 1 \nPage 8 of 42 Item # 6 6 “Tax Allocation Increment” means the positive tax allocation increment (within the meaning of the Redevelopment Powers Law) levied and collected on real property within the Village at Riverwatch TAD attributable to the ad valorem millage rate levied annually by Augusta (which was 8.056 mils in 2010) and the positive tax allocation increment attributable to the School Board’s ad valorem millage rate (which was 19.11 mils in 2010). “Title Policy” means the title insurance policy issued by a nationally recognized title company when Developer acquired the Site which insures Developer’s title with respect to the Site. “Village at Riverwatch TAD” means that Tax Allocation District Number Two created by Augusta effective December 31, 2010, pursuant to the Redevelopment Powers Law and the TAD Resolution and as further described in the Redevelopment Plan. Section 2.2 Singular and Plural. Words used herein in the singular, where the context so permits, also include the plural and vice versa. The definitions of words in the singular herein also apply to such words when used in the plural where the context so permits and vice versa. ARTICLE III REPRESETATIOS AD WARRATIES Section 3.1 Representations and Warranties of Developer. Developer hereby represents and warrants to Augusta that: (a) Organization and Authority. Cabela’s Wholesale, Inc., a Nebraska corporation, is in good standing and authorized to transact business in Nebraska and the State of Georgia. Developer’s officers have the requisite power and authority to execute and deliver this Agreement, to incur and perform its obligations hereunder, and to carry out the transactions contemplated by this Agreement. (b) Due Authorization, Execution and Delivery. The execution, delivery, and performance of this Agreement has been duly authorized by all necessary action and proceedings by or on behalf of Developer, and no further approvals or filings of any kind, including any approval of or filing with any governmental authority, are required by or on behalf of Developer as a condition to the valid execution, delivery, and performance by it of this Agreement. This Agreement, when duly executed and delivered by each party hereto, will be the valid and binding obligation of Developer in accordance with its terms, subject to matters and laws affecting creditors’ right generally and to general principles of equity. (c) Organizational Documents. Developer’s organizational documents are in full force and effect and have not been modified or supplemented from those submitted to Augusta, and no fact or circumstance has occurred that, by itself or with the giving of notice or the passage of time or both, would constitute a default thereunder. (d) Financial Statements. All financial statements to be furnished to Augusta by Developer with respect to Developer will, to Developer’s actual knowledge, fairly present the financial condition of Developer as of the dates thereof, and all other written information furnished to Augusta by Developer will be accurate, complete and correct in all material respects and will not contain any material misstatement of fact or omit to state any fact necessary to make the statements contained therein not misleading. Attachment number 1 \nPage 9 of 42 Item # 6 7 (e) Environmental. Developer has no actual knowledge except as disclosed in the Environmental Report: (i) of the presence of any Hazardous Substances on the Site, or any portion thereof, or of any spills, releases, discharges, or disposal of Hazardous Substances that have occurred or are presently occurring on or onto the Site , or any portion thereof, or (ii) of the presence of any PCB transformers serving, or stored on, the Site, or any portion thereof, and Developer has no knowledge of any failure to comply with any applicable Environmental Laws relating to the generation, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous Substances. (f) Bankruptcy. No Act of Bankruptcy has occurred with respect to Developer. (g) No Litigation. There is no action, suit or proceeding pending or, to the actual knowledge of Developer, threatened against or affecting Developer in any court, before any arbitrator or before or by any governmental body which (i) in any manner raises any question affecting the validity or enforceability of this Agreement or (ii) could materially and adversely affect the ability of Developer to perform its obligations hereunder. (h) No Undisclosed Liabilities. Neither Developer nor the Site is subject to any material liability or obligation, including contingent liabilities, which would have a material adverse effect on the ability of Developer to perform its obligations under this Agreement. Developer is not in default under or in breach of any material contract or agreement with respect to the Site, and no event has occurred with respect to the Site which, with the passage of time or giving of notice (or both) would constitute such a default, which has a material adverse effect on the ability of Developer to perform its obligations under this Agreement. (i) Tax Matters. Developer has, to its actual knowledge, prepared and filed in a substantially correct manner all federal, state, local, and foreign tax returns and reports heretofore required to be filed by them and have paid all taxes shown as due thereon. No governmental body has asserted any deficiency in the payment of any tax or informed Developer that such governmental body intends to assert any such deficiency or to make any audit or other investigation of Developer for the purpose of determining whether such a deficiency should be asserted against Developer. (j) ERISA and Related Matters. Developer does not maintain any retirement or deferred compensation plan, savings, incentive, stock option or stock purchase plan, unemployment compensation plan, vacation pay, severance pay, bonus or benefit arrangement, insurance or hospitalization program or any other fringe benefit arrangement for any employee, consultant or agent of Developer, whether pursuant to contract, arrangement, custom or informal understanding, which does not constitute an “Employee Benefit Plan” (as defined in §3(3) of ERISA). Developer does not maintain nor has Developer ever contributed to any Multiemployer Plan (as defined in §3(37) of ERISA). Developer does not currently maintain any Employee Pension Benefit Plan subject to Title IV of ERISA. There have been no “prohibited transactions” (as described in §406 of ERISA or §4975 of the Internal Revenue Code) with respect to any Employee Pension Benefit Plan or Employee Welfare Benefit Plan maintained by Developer as to which Developer has been a party. (k) Principal Office. The address of Developer’s principal place of business is One Cabela Drive, Sidney, NE 69160. (l) Licenses and Permits. Developer will at all appropriate times possess all franchises, patents, copyrights, trademarks, trade names, licenses and permits, and rights in respect of the foregoing, adequate for the conduct of its business substantially as now conducted or as it is intended to be conducted with respect to the Cabela’s Project, without known conflict with any rights of others. Attachment number 1 \nPage 10 of 42 Item # 6 8 (m) Project Location. The Cabela’s Project is located wholly within Augusta and further, wholly within the Village at Riverwatch TAD. (n) Utilities. All utility services necessary and sufficient for the construction and operation of the Cabela’s Project will at all appropriate times be available through dedicated public rights of way or through perpetual private easements. (o) Plans. Developer will furnish to Augusta true and complete sets of the Plans. The Plans so furnished to Augusta will comply with all applicable governmental requirements, all Project Approvals, and all restrictions, covenants and easements affecting the TAD Project. (p) Funding Sources for Project Financing. Schedule G contains a true, correct, and completed list of all sources and uses of funds, including all Project Financing, all of which has been committed to Developer. (q) Liens. Other than as disclosed in writing to Augusta or Augusta, there are no material liens of laborers, subcontractors or materialmen on or respecting the TAD Project on the Effective Date. (r) Construction Schedule. The TAD Project Construction Schedule accurately reflects the currently estimated schedule for construction of the TAD Project. (s) Budget. The TAD Project Budget accurately reflects the currently estimated costs of the TAD Project. (t) Title. As of the Effective Date, Developer holds fee simple title to the Site. Section 3.2 Representations and Warranties of Augusta. Augusta hereby represents and warrants to Developer that: (a) Organization and Authority. Augusta is a consolidated government duly created and existing under the laws of the State. Augusta has the requisite power and authority to execute and deliver this Agreement, to incur and perform its obligations hereunder, and to carry out the transactions contemplated by this Agreement. (b) Due Authorization, Execution and Delivery. The execution, delivery, and performance of this Agreement has been duly authorized by all necessary action and proceedings by or on behalf of Augusta, and no further approvals or filings of any kind, including any approval of or filing with any governmental authority, are required by or on behalf of Augusta as a condition to the valid execution, delivery, and performance by Augusta of this Agreement. This Agreement, when duly executed and delivered by each party hereto, will be the valid, binding and enforceable obligation of Augusta in accordance with its terms, subject to matters and laws affecting creditors’ right generally as to political bodies and to general principles of equity. (c) No Litigation. There are no actions, suits, proceedings or investigations of any kind pending or threatened against Augusta before any court, tribunal or administrative agency or board or any mediator or arbitrator that questions the validity of this Agreement or any action taken or to be taken pursuant hereto. Attachment number 1 \nPage 11 of 42 Item # 6 9 (d) TAD Resolution. The TAD Resolution has been validly adopted, remains in full force and effect, and has not been amended or supplemented since its date of adoption. No amendment of or supplement to the TAD Resolution is contemplated by Augusta. (e) Redevelopment Agent. Augusta has been duly designated as Redevelopment Agent for the Village at Riverwatch TAD as contemplated by the Redevelopment Powers Law. Section 3.3 Parties to Cooperate. The parties hereto acknowledge that they are entering into this Agreement based on projections that Phase II will generate Tax Allocation Increment in at least the amount of Two Million Five Hundred Thousand Dollars ($2,500,000) within sixteen (16) years, which is the maximum sum to be paid to Developer as provided herein. Augusta and Developer will cooperate as provided in this Agreement in order to ensure that Tax Allocation Increment generated by Phase II in the Village at Riverwatch TAD are collected and deposited into the Reimbursement Fund in accordance with the terms of this Agreement, thereby permitting reimbursement of Reimbursement Costs advanced by Developer in connection with the TAD Project as contemplated by this Agreement. Section 3.4 Payment of Administrative Fee and Expenses. Developer acknowledges and agrees that Augusta shall be entitled to an Administrative Fee and to be reimbursed its professional, legal and administrative expenses (including Augusta’s costs of negotiating, drafting and reviewing this Agreement) from the Reimbursement Fund and such payments shall have the first priority of payment from the Reimbursement Fund, subject to the caps on such fees and expenses set forth herein. In the event that in any year there are insufficient funds in the Reimbursement Fund to pay such fees and expenses, the unpaid amounts shall accrue and be payable from the first available future deposits into the Reimbursement Fund. ARTICLE IV DEVELOPMET AD COSTRUCTIO Section 4.1 Construction of the TAD Project and Cabela’s Project. (a) Developer will develop and construct, or cause the development and construction of, the TAD Project in substantial conformance with the Plans and the descriptions thereof set forth in Schedules A-2 and B-2 and in accordance with the TAD Project Construction Schedule, subject to Force Majeure. Augusta acknowledges that during the term of this Agreement modifications to the TAD Project as contemplated on the Effective Date may occur. To the extent that such modifications are not Material Modifications, Developer will provide a revised version of Schedule A-2 or B-2 to Augusta, which will be used as the basis for reimbursement of Advances under Section 6.2. To the extent that any such modification is a Material Modification, Developer will comply with the procedures set forth in Section 4.4. Augusta agrees to use commercially reasonable efforts to assist Developer with the TAD Project on the terms set forth in this Agreement to further the public purposes of the Redevelopment Plan and the Redevelopment Powers Law. (b) Developer will construct, or cause the construction of, the TAD Project and the Cabela’s Project in accordance with all applicable Legal Requirements. (c) Developer will develop and construct, or cause the development and construction of, the Cabela’s Project in substantial conformance with the Plans and the descriptions thereof set forth in Schedules A-2 and B-2 and in accordance with the Cabela’s Project Construction Schedule, subject to Force Majeure. Augusta acknowledges that during the term of this Agreement modifications to the Cabela’s Project as contemplated on the Effective Date may occur. To the extent that such modifications are not Material Modifications, Developer will provide a revised version of Schedule A-2 or B-2 to Attachment number 1 \nPage 12 of 42 Item # 6 10 Augusta, which will be used as the basis for reimbursement of Advances under Section 6.2. To the extent that any such modification is a Material Modification, Developer will comply with the procedures set forth in Section 4.4. Augusta agrees to use commercially reasonable efforts to assist Developer with the Cabela’s Project on the terms set forth in this Agreement to further the public purposes of the Redevelopment Plan and the Redevelopment Powers Law. (d) Beginning on the Effective Date and continuing until the Cabela’s Project Completion Date, on a monthly basis Developer will provide to Augusta on or before the last business day of every reporting month a written update on the status and progress of the construction of the Cabela’s Project and the costs and expenses incurred in connection with the Cabela’s Project to date. Said updates shall be provided by Developer in the form of a written report in a format determined by Cabela’s. Additionally, if requested by Augusta, any such monthly update shall also be given in a telephone conference between the Cabela’s Project manager or other appropriate representative and a representative of Augusta to be designated by the City Administrator. These reports and telephone conferences shall be in addition to and not as a substitute for any customary inspections or documents required by Augusta in the usual course of issuing permits and inspecting construction of the Cabela’s Project. (e) Upon completion of the construction of the Cabela’s Project, Developer will provide Augusta with a final cost summary of all costs and expenses associated with the Cabela’s Project, a certification that the Cabela’s Project has been completed, and evidence that all amounts owing to contractors and subcontractors have been paid in full evidenced by customary affidavits executed by such contractors. Section 4.2 Approvals Required for the Project. Developer will obtain or cause to be obtained all necessary Project Approvals for the TAD Project, and the Cabela’s Project and will comply with all Legal Requirements of any governmental body regarding the use or condition of the TAD Project and the Cabela’s Project. Developer may, however, contest any such Legal Requirement or Project Approval by an appropriate proceeding diligently prosecuted. Augusta agrees to process zoning and permit applications in a prompt and timely manner in accordance with its normal rules and procedures. Section 4.3 Unreasonable Delay or Abandonment; Cessation of Work. If Augusta determines in its reasonable discretion that (i) the TAD Project is delayed for reasons other than Force Majeure or market forces such that the TAD Project will not be completed within 210 days of the TAD Project Completion Date as amended, then Augusta may terminate this Agreement by giving written notice thereof to Developer. Prior to any such termination, Augusta must give 60 days advance written notice to Developer and Developer must have failed to effect a cure within said 60-day notice period or, if the cure cannot reasonably be effected within such 60-day period, then Developer must have failed to commence and diligently pursue a cure within such 60-day period. Upon termination of this Agreement as provided in this Section, none of the parties hereto will have any further rights, duties or obligations hereunder. Section 4.4 Material Modifications. Prior to Developer making a Material Modification to the TAD Project, or the Cabela’s Project, Developer will submit the proposed modifications to the City Administrator in writing for review. Any such submission must clearly identify all changes, omissions and additions as compared to the previously approved description of the TAD Project or the Cabela’s Project, as applicable. The City Administrator, as soon as reasonably possible, will put the request for modification on a meeting agenda for Augusta’s consideration. Augusta will act on the requested modification within an amount of time that is reasonably required to consider the request. In addition, to Attachment number 1 \nPage 13 of 42 Item # 6 11 the extent any Material Modification requires an amendment to any portion of the Redevelopment Plan, Augusta will have such amount of time as reasonably required to pursue any such amendment (including required approvals, if any). Section 4.5 Project Modifications. Developer shall provide notice to Augusta immediately upon the occurrence of a Project Modification. If the Project Modification results in an increase in the TAD Project Budget, Developer will provide evidence of sufficient Project Financing to complete the TAD Project. If the Project Modification results in a cessation of work on the TAD Project, Developer shall provide Augusta with an explanation for the delay and the estimated time for resumption of work. ARTICLE V DUTIES, RESPOSIBILITIES AD SPECIAL COVEATS OF D EVELOPER Section 5.1 Completion of the Project. Except as contemplated in Section 4.1(f) and subject to any delays for Force Majeure, notwithstanding any other provision of this Agreement, Developer will commence and complete construction of the TAD Project substantially in accordance with Schedules C- 1 and C-2 with diligence and in a good and workmanlike manner, free and clear of all liens and claims for materials supplied or for labor or services performed, subject to any lawful protest in accordance with Section 5.6. Section 5.2 Compliance with Documents. Prior to its compliance with the Performance Commitments set forth in Schedule I, Developer will remain in compliance with its obligations and covenants in the Loan Documents, if any, pursuant to which amounts were loaned or otherwise made available to Developer to finance construction of the TAD Project and the Cabela’s Project. Section 5.3 Litigation. Developer will notify Augusta in writing, within fifteen (15) business days of its having knowledge thereof, of any actual or pending litigation or adversarial proceeding in which a claim is made against Developer or against the Site or the TAD Project, in any case which Developer reasonably considers may materially impair Developer’s ability to perform its obligations under this Agreement, and of any judgment rendered against Developer in any such litigation or proceeding. Developer will notify Augusta in writing and within fifteen (15) business days of any matter that Developer reasonably considers may result or does result in a material adverse change in the financial condition or operation of Developer or the TAD Project. Section 5.4 Maintenance of the Project. Developer agrees that, to the extent it has an interest in the TAD Project, it will at its own expense (i) keep the TAD Project, or cause the TAD Project to be kept in as reasonably safe condition as its operations permit, (ii) make or cause to be made from time to time all necessary repairs thereto and renewals and replacements thereof and otherwise keep the TAD Project in good repair and in good operating condition and (iii) not permit or suffer others to commit a nuisance or waste on or about the TAD Project. Developer, at its own expense and from time to time, may make any additions, modifications or improvements to the TAD Project that it may deem desirable for its business purposes and that do not constitute Material Modifications. Section 5.5 Records and Accounts. Developer will keep true and accurate records and books of account in connection with the TAD Project in which full, true and correct entries will be made on a consistent basis, in accordance with generally accepted accounting principles. Section 5.6 Liens and Other Charges. Developer will duly pay and discharge, or cause to be paid and discharged, before the same become overdue all claims for labor, materials, or supplies that if unpaid might by law become a lien or charge upon the TAD Project unless Developer is lawfully Attachment number 1 \nPage 14 of 42 Item # 6 12 protesting the same, in which case Developer will provide a reasonably suitable “mechanics lien bond” to discharge such lien from the TAD Project. Section 5.7 Compliance with Laws, Contracts, Licenses, and Permits. Developer will comply in all material respects with (a) all applicable laws, (b) all agreements and instruments by which it or the Site may be bound, and all restrictions, covenants and easements affecting the TAD Project, (c) all applicable decrees, orders and judgments, and (d) all licenses and permits required by applicable laws and regulations for the conduct of its business or the ownership, use or operation of the Site. Section 5.8 Laborers, Subcontractors and Materialmen. Prior to the TAD Project Completion Date, Developer will furnish to Augusta, upon written request at any time and from time to time (but not more often than once every sixty (60) days), affidavits listing all laborers, subcontractors, materialmen, and any other Persons who might or could claim statutory or common law liens and are furnishing or have furnished labor or material to the TAD Project or any part thereof, together with affidavits, or other evidence satisfactory to Augusta, showing that such parties have been paid all amounts then due for labor and materials furnished to the TAD Project. Upon certification of completion of the TAD Project, Developer shall furnish to Augusta final lien waivers it has obtained from the General Contractor and all subcontractors and materialmen who provided goods or services in excess of $50,000.00 each to said project. Section 5.9 Taxes. To the extent of its interest therein, Developer will pay when due all taxes imposed upon or assessed against the Site, the Cabela’s Project, and the TAD Project, or upon the revenues, rents, issues, income and profits of the Cabela’s Project and the TAD Project, or arising in respect of the occupancy, use or possession thereof, and will provide to Augusta, within ten days after a written request therefor, validated receipts showing the payment of such taxes when due. Developer will have the right to appeal an assessment for ad valorem tax purposes. Section 5.10 Insurance. To the extent of its interest therein, Developer will keep the TAD Project and the Cabela’s Project continuously insured (a reasonable part of which insurance may be self- insurance) against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar operations. Section 5.11 Further Assurances and Corrective Instruments. Augusta and Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements and amendments hereto and such further instruments as may reasonably be required for carrying out the intention or facilitating the performance of this Agreement; provided that the rights of Augusta and Developer hereunder and the ability of Developer to construct the TAD Project and the Cabela’s Project are not impaired thereby. Section 5.12 Performance by Developer. Developer will perform all acts to be performed by it hereunder and will refrain from taking or omitting to take any action that would materially violate Developer’s representations and warranties hereunder or render the same materially inaccurate as of the Effective Date and subsequent Requisition dates or that in any material way would prevent the consummation of the transactions contemplated hereby in accordance with the terms and conditions hereof. Section 5.13 Restrictions on Easements and Covenants. Except for Permitted Exceptions, Developer will not create or suffer to be created or to exist any easement, right of way, restriction, covenant, condition, license or other right in favor of any Person (other than an Affiliate of Developer) which materially and adversely affects or might materially and adversely affect title to the TAD Project or the Cabela’s Project or the use and occupancy thereof or any part thereof without obtaining the prior Attachment number 1 \nPage 15 of 42 Item # 6 13 approval of Augusta (such approval not to be unreasonably withheld), other than easements and rights of ways customary for utilities, drainage, vehicular and pedestrian access, signage and similar matters and temporary construction easements which do not materially and adversely affect the use of the TAD Project or the Cabela’s Project for its intended purposes. Section 5.14 Access to the Site. Upon a minimum of five (5) days prior written notice from Augusta, Developer will permit persons designated by Augusta to access the Site and to discuss the progress and status of the TAD Project and the Cabela’s Project with representatives of Developer, all in such detail and at such times as Augusta may reasonably request. All such access must be during normal business hours and in a manner that will not unreasonably interfere with construction activities of the TAD Project, or the Cabela’s Project or with Developer’s business operations generally. Augusta must be accompanied by a representative of Developer during any access contemplated by this Section. To the extent allowed by law, Augusta shall indemnify and hold Developer harmless from and against any and all claims, actions, damages, liabilities, costs and expenses including, without limitation, reasonable attorneys’ fees and expenses, relating to any personal injury (or death), property damage or other loss caused in connection with such access. Section 5.15 Delivery of Documents. Prior to the Effective Date, Developer shall deliver to Augusta the following: (a) Most recent plat of the Site; (b) Environmental Report; (c) Title Policy, including any Permitted Exceptions; (d) Corporate Resolutions authorizing Developer to enter into this Agreement or other reasonable documentation evidencing such authorization (see Section 3.1(b)); (e) Certification of the good standing of Developer from the Georgia Secretary of State; and (f) Developer’s most recent financial statements. Prior to commencement of construction of the TAD Project , Developer shall deliver to Augusta documents evidencing that Developer has obtained Project Financing. Section 5.16 Scope of Developer Commitments. All representations, warranties and obligations of Developer hereunder shall be personal to Developer, and in no event shall Developer be deemed to be in default of any representation, warranty, or other obligation under this Agreement as a result solely of the noncompliance by any other property owner or occupant of a portion of the Village at Riverwatch Project with the terms of this Agreement; provided, however, if this Agreement is assigned pursuant to Section 9.5, any successor in interest to Developer shall be bound by all of the obligations of Developer set forth herein. Attachment number 1 \nPage 16 of 42 Item # 6 14 ARTICLE VI ADVACES; DISBURSEMET; REIMBURSEMET FUD; FIACI G ALTERATIVES Section 6.1 Advances. (a) Developer, in its sole discretion as to timing and amount, may make or cause to be made Advances in connection with the TAD Project. (b) Developer may submit Requisitions to Augusta for its review and approval for reimbursement for any such Advances as described in Section 6.2. Section 6.2 Disbursements. Subject to material compliance by Developer with all of the terms and conditions of this Agreement, the funds deposited into the Reimbursement Fund and certain other funds appropriated by Augusta will be available for disbursement to Developer for reimbursement of Advances in connection with the TAD Project at such times and in such amounts as determined (each a “Disbursement”) in accordance with the following procedures: (a) Upon completion of the TAD Project and delivery of the certification required by Section 4.1(e), Developer will submit a Requisition to Augusta. The Requisition will include (i) the TAD Project Budget and the itemized schedule of values prepared by the General Contractor or Developer of the total Reimbursement Costs for which amounts on deposit in the Reimbursement Fund are requested (the “Schedule of Values”), (ii) all costs incurred for construction and non-construction expenses for the Reimbursement Costs to the date of the Requisition, which Reimbursement Costs have been itemized under the applicable line items of the TAD Project Budget and the Schedule of Values, and (iii) the percentage of completion of each line item on the TAD Project Budget and the Schedule of Values. The accuracy of the cost breakdown and percentage completion in the Requisition must be certified by Developer, and hard construction costs must be certified by the General Contractor. The amount of the Requisition shall not exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00). (b) The Requisition must be accompanied by evidence in form and content reasonably satisfactory to Augusta (including, but not limited to, certificates and affidavits of Developer) showing: (i) Copies of all bills or statements or canceled checks for any indirect or non-construction expense for which the Disbursement is requested (other than land valuation as set forth on Schedule D and construction interest); (ii) If the Requisition includes amounts to be paid to any contractor, a contractor’s application for payment showing the amount paid by Developer with respect to each such line item and copies of all bills or statements or canceled checks for expenses incurred by Developer for which the Disbursement is requested and a copy of a reasonably satisfactory “Interim Waiver and Release upon Payment” pursuant to O.C.G.A. § 44-14-366 from the General Contractor which received payment from the proceeds of the immediately preceding Requisition; (iii) That all construction has been conducted substantially in accordance with the Plans (and all changes thereto approved by Augusta or otherwise permitted pursuant to the terms hereof); and (iv) That there are no liens outstanding against the TAD Project except for (A) those set forth in the Title Policy, (B) inchoate liens for property taxes not yet due and payable, (C) liens being contested in accordance with the terms and conditions set forth in applicable law, and (D) loans for the construction of the TAD Project. Attachment number 1 \nPage 17 of 42 Item # 6 15 (c) The construction for which Reimbursement Costs are included in any Requisition must be reviewed and approved by Augusta or its appointed consultant to verify the approval of the construction, the cost of completed construction, and compliance with the Plans, which approval shall not be unreasonably withheld, conditioned or delayed. (d) So long as there is any unreimbursed balance with respect to the Requisition, on the first business day of each calendar quarter Augusta will direct that available funds in the Reimbursement Fund be promptly disbursed in order to satisfy these outstanding amounts, subject first to the payment of the Administrative fee or Augusta’s expenditures for legal and professional fees incurred in connection with the Cabela’s Project. Provided however, that no reimbursement will be made to Developer for any ad valorem property taxes paid into the Special Fund for parcels of land under tax appeal until such time as such appeals are ultimately resolved. (e) Notwithstanding anything to the contrary herein, in no event will Tax Allocation Increment applicable to periods beyond sixteen (16) years after opening of the Cabela’s retail store on the Cabela’s Tract be used to satisfy outstanding balances due Developer, if any. Obligations due Developer under this Agreement will terminate upon the earlier to occur of (i) the satisfaction of all amounts due Developer including the aggregate of all Requisitions in a principal amount not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00) or (ii) sixteen (16) years after opening of the Cabela’s retail store on the Cabela’s Tract. Notwithstanding the time limitation contained herein, in the event that Developer has not been fully reimbursed its Redevelopment Costs prior to the expiration of sixteen (16) years from the opening of the Cabela’s retail store on the Cabela’s Tract and Administrative Fees have been deducted from the Reimbursement Fund during such period, then the term of this Agreement shall be extended for such period of time as necessary for Developer to be reimbursed any unreimbursed Redevelopment Costs in amount up to the total Administrative Fees paid from the Reimbursement Fund. Section 6.3 Limited Liability. (a) Except as provided in Section 6.5, the payment of all obligations required to be paid by Augusta under this Agreement shall be special or limited obligations of Augusta payable only from the Reimbursement Fund. Augusta will have no liability to honor any Requisition except from amounts on deposit in the Reimbursement Fund. (b) To the extent permitted by State law, no director, officer, employee or agent of Augusta will be personally responsible for any liability arising under or growing out of the Agreement. (c) Augusta will not be obligated to disburse any funds to any person under this Agreement other than to Cabela’s or as otherwise permitted under this Agreement or as agreed to by the Parties. Section 6.4 Reimbursement Fund. Provided that there is positive Tax Allocation Increment in the Village at Riverwatch TAD, the following amounts will be deposited into the Reimbursement Fund from the Special Fund by Augusta: 1) One hundred percent (100%) of any positive Tax Allocation Increment within the Village at Riverwatch TAD attributable to Phase II, which includes the Cabela’s Site and other sites as depicted on Schedule J attached hereto. Section 6.5 Alternative Financing. Nothing in this Agreement will limit the right of Augusta to consider alternative methods of financing or refinancing Reimbursement Costs of the TAD Project, including, without limitation, the issuance of TAD Bonds, so long as such financing does not have a detrimental effect on the TAD Project or the Village at Riverwatch Project. In lieu of Attachment number 1 \nPage 18 of 42 Item # 6 16 reimbursement from the Reimbursement Fund pursuant to Requisitions as contemplated herein, Augusta, in its sole discretion, may choose to issue TAD Bonds to finance all or a portion of the TAD Project contemplated herein. If Augusta chooses to issue TAD Bonds, Developer will cooperate and assist Augusta in this regard at no expense to Developer and comply with any conditions precedent established by Augusta, including, without limitation, any additional customary covenants and representations associated with issuance of TAD Bonds. If TAD Bonds are issued and proceeds thereof are paid to Developer in an amount sufficient to pay the unpaid Reimbursement Costs of the TAD Project as contemplated by this Agreement and the proceeds of any such TAD Bonds paid to Developer together with the principal sum paid by the Reimbursements contemplated herein are not less than the amounts contemplated in Section 6.2(e) of this Agreement (i.e., $2,500,000.00), this Agreement will terminate. ARTICLE VII IDEMIFICATIO Section 7.1 Indemnification. Developer will defend, indemnify, and hold Augusta and its agents, employees, officers, and legal representatives (collectively, the “Indemnified Persons”) harmless for all claims, causes of action, liabilities, fines, and expenses (including, without limitation, reasonable attorneys’ fees, court costs, and all other defense costs and interest) (collectively, the “Losses”) for injury, death, damage, or loss to persons or property sustained in connection with or incidental to the construction of the TAD Project. Notwithstanding anything to the contrary in this Article, (1) the total cost and expense Developer’s indemnification and defense obligations under this Article is limited to the greater of $3,000,000.00 or the policy limits available under the insurance policies required under Section 5.10; (2) Developer will not be obligated to indemnify or defend any Indemnified Person for the Indemnified Person’s own negligence, recklessness or intentional act or omission; and (3) Developer will not be obligated to indemnify or defend any Indemnified Persons to the extent that any claims that might otherwise be subject to indemnification or defense hereunder resulted, in whole or in part, from the gross negligence, recklessness or intentional act or omission of any other Indemnified Person or Persons. Section 7.2 otice of Claim . If an Indemnified Person receives notice of any claim or circumstance which could give rise to indemnified Losses, the receiving party must give written notice to Developer within ten (10) business days. The notice must include a description of the indemnification event in reasonable detail, the basis on which indemnification may be due, and the anticipated amount of the indemnified Losses. Such notice will not stop or prevent an Indemnified Person from later asserting a different basis for indemnification or a different amount of indemnified Losses than that indicated in the initial notice. If an Indemnified Person does not provide this notice within the ten business-day period, it does not waive any right to indemnification except to the extent that Developer is prejudiced, suffers loss, or incurs expense because of the delay. Section 7.3 Defense. Developer may assume and control the defense of the claim based on the indemnified Losses at its own expense with counsel chosen by Developer with the concurrence of the Indemnified Person, which concurrence shall not be unreasonably withheld, conditioned or delayed. Developer will also control any negotiations to settle the claim. Within ten (10) business days after receiving written notice of the indemnification request, Developer will advise the Indemnified Person as to whether or not it will defend the claim. If Developer does not assume the defense, the Indemnified Person will assume and control the defense and all defense expenses actually incurred by it will constitute Losses. Section 7.4 Separate Counsel. If Developer elects to defend a claim, the Indemnified Person may retain separate counsel, at the sole cost and expense of such Indemnified Person, to participate in (but not control or impair) the defense and to participate in (but not control or impair) any settlement Attachment number 1 \nPage 19 of 42 Item # 6 17 negotiations. Developer may settle the claim without the consent or agreement of the Indemnified Person, unless the settlement (i) would result in injunctive relief or other equitable remedies or otherwise require the Indemnified Person to comply with restrictions or limitations that adversely affect the Indemnified Person, (ii) would require the Indemnified Person to pay amounts that Developer does not fund in full, or (iii) would not result in the Indemnified Person’s full and complete release from all liability to the plaintiffs or claimants who are parties to or otherwise bound by the settlement. Section 7.5 Survival. The provisions of Article VII will remain in effect until the expiration of four (4) years after certification of completion of the TAD Project, whichever last occurs. ARTICLE VIII DEFAULT Section 8.1 Default by Developer. (a) Until delivery of the certificates of completion for the TAD Project contemplated in Section 4.1, the following will constitute a Default by Developer: (i) Failure of Developer to materially and timely comply with and perform any of its covenants, conditions or obligations set forth in this Agreement; (ii) The declaration of an “event of default” by any lender under any loan agreement with respect to Project Financing or a breach of Section 5.2; (iii) An Act of Bankruptcy of Developer. (b) Until two (2) years after delivery of the certificates of completion for the TAD Project contemplated in Section 4.1, the following will constitute a Default by Developer: (i) Any material representation or warranty made by Developer in this Agreement or subsequently made by it in any written statement or document furnished to Augusta and related to the transactions contemplated by this Agreement is false, incomplete, inaccurate or misleading in any material respect as of the date such representation or warranty is made; (ii) Any material report, certificate or other document or instrument furnished to Augusta by Developer in relation to the transactions contemplated by this Agreement is false, inaccurate or misleading in any material respect; or if any report, certificate or other document furnished to Augusta on behalf of Developer, to the extent that Developer knows such document is false, inaccurate or misleading and fails to promptly report such discrepancy to Augusta. Section 8.2 Remedies. If a default by Developer occurs and is continuing 30 days after receipt of written notice to Developer from Augusta specifying the existence of such default (or within a reasonable time thereafter if such default cannot reasonably be cured within such 30-day period and Developer begins to diligently pursue the cure of such default within such 30-day period), the default will become an “Event of Default,” and Augusta will be entitled to elect any or all of the following remedies: (i) subject to the final sentence in this Section, terminate this Agreement and discontinue further funding hereunder, (ii) seek any remedy at law or in equity that may be available as a consequence of Developer’s default; (iii) pursue specific performance of this Agreement or injunctive relief; or (iv) waive such Event of Default. Upon termination of this Agreement as provided in this Section, none of the parties hereto will have any further rights, duties or obligations hereunder except Attachment number 1 \nPage 20 of 42 Item # 6 18 that all amounts due to Developer for unreimbursed Advances and interest accrued thereon will continue to be payable to Developer under the terms of this Agreement. Section 8.3 Remedies Cumulative. Except as otherwise specifically provided, all remedies of the parties provided for herein are cumulative and will be in addition to any and all other rights and remedies provided for or available hereunder, at law or in equity. Section 8.4 Agreement to Pay Attorneys’ Fees and Expenses. In the event of an Event of Default by Developer, if Augusta employs attorneys or incurs other expenses for the collection of amounts due hereunder or for the enforcement of the performance or observance of any covenants or agreements on the part of Developer contained herein, Developer agrees that it will on demand therefor pay to Augusta, as applicable, the reasonable fees of such attorneys and such other reasonable expenses so incurred by Augusta, the amount of such fees of attorneys to be without regard to any statutory presumption. Section 8.5 Default by Augusta. The following will constitute a default by Augusta: Any material breach by it of any representation made in this Agreement or any material failure by it to observe and perform any covenant, condition or agreement on its part to be observed or performed hereunder, for a period of 30 days after written notice specifying such breach or failure and requesting that it be remedied, given to it by Developer; provided that in the event such breach or failure can be corrected but cannot be corrected within said 30-day period, the same will not constitute a default hereunder if corrective action is instituted by the defaulting party or on behalf of the defaulting party within said 30-day period and is being diligently pursued. Section 8.6 Remedies Against Augusta. Upon the occurrence and continuance of a default by Augusta hereunder for a period of 30 days after its receipt of written notice thereof from Developer, Developer may seek specific performance of this Agreement or pursue any other remedies available at law or in equity. ARTICLE IX MISCELLAEOUS Section 9.1 Term of Agreement. This Agreement will commence on the Effective Date and will expire on the earlier to occur of the date on which all Reimbursement Costs for the TAD Project have been fully reimbursed to Developer from the Reimbursement Fund or sixteen (16) years after opening of the Cabela’s retail store on the Cabela’s Tract. Section 9.2 otices . Any notice sent under this Agreement (except as otherwise expressly required) must be written and mailed or sent by overnight courier or personally delivered to an officer of the receiving party at the following addresses: If to Developer: Cabela’s Wholesale, Inc. One Cabela Drive Sidney, Nebraska 69160 Attn: Mr. Mark Nienhueser With a copy to: Cabela’s Incorporated Attachment number 1 \nPage 21 of 42 Item # 6 19 One Cabela Drive Sidney, Nebraska 69160 Attn: Mr. Edward L. Ball If to Augusta: City Administrator 530 Greene Street Suite 801 Augusta, GA 30911 With a copy to: General Counsel 531Greene Street Augusta, Georgia 30901 Each party may change its address by written notice in accordance with this Section. Any communication addressed and mailed in accordance with this Section will be deemed to be given when so mailed, and any communication so delivered in person will be deemed to be given when receipted for by, or actually received by the party identified above. Section 9.3 Amendments and Waivers. Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing and is signed by the parties hereto. No course of dealing on the part of any party to this Agreement, nor any failure or delay by any party to this Agreement with respect to exercising any right, power or privilege hereunder will operate as a waiver thereof. Section 9.4 Invalidity. In the event that any provision of this Agreement is held unenforceable in any respect, such unenforceability will not affect any other provision of this Agreement. Section 9.5 Successors and Assigns. Developer may not assign this Agreement or any of its rights hereunder or any interest herein without the prior written consent of Augusta, which consent may not be unreasonably withheld, conditioned or delayed; provided that Developer may, without the prior consent of Augusta, assign this Agreement and all or any portion of its rights hereunder and interests herein (i) to any Affiliate of it or to any entity which controls, is controlled by or under common control with it; (ii) to any purchaser of more than 60% of the total acreage of the Cabela’s Project; or (iii) to any lender providing financing for all or any part of the Cabela’s Project. Developer will provide written notice to Augusta of any such assignment. Upon any such assignment of the obligations of Developer hereunder, Developer will be deemed released from such obligations. Notwithstanding the above, Developer may collaterally assign this Agreement and its rights hereunder and interest herein, without the consent of Augusta, to a lender to secure any acquisition, development or construction loan for the TAD Project or the Cabela’s Project. Section 9.6 Schedules; Titles of Articles and Sections. The Schedules attached to this Agreement are incorporated herein and will be considered a part of this Agreement for the purposes stated herein, except that in the event of any conflict between any of the provisions of such Schedules and the provisions of this Agreement, the provisions of this Agreement will prevail. All titles or headings are only for the convenience of the parties and may not be construed to have any effect or meaning as to the agreement between the parties hereto. Any reference herein to a Section or subsection Attachment number 1 \nPage 22 of 42 Item # 6 20 will be considered a reference to such Section or subsection of this Agreement unless otherwise stated. Any reference herein to a Schedule will be considered a reference to the applicable Schedule attached hereto unless otherwise stated. Section 9.7 Applicable Law. This Agreement is a contract made under and will be construed in accordance with and governed by the laws of the United States of America and the State of Georgia. Venue shall be in Augusta, Georgia. Section 9.8 Entire Agreement. This written agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. Section 9.9 Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be hereafter given by any of the parties, the parties agree that such approval or consent may not be unreasonably withheld, conditioned or delayed, and will be deemed given if no written objection is delivered to the requesting party within ten (10) business days after delivery of the request to the approving party. Section 9.10 Additional Actions. The parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions and intent. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of the ____ day of ________, 2014. (Signatures on following pages) Attachment number 1 \nPage 23 of 42 Item # 6 21 AUGUSTA, GEORGIA By: __________________________________ Its: Mayor Attest: __________________________________ Its: Clerk of Commission CABELA’S WHOLESALE, INC. By: __________________________________________ Its: President Attest: __________________________________________ Its: Secretary Attachment number 1 \nPage 24 of 42 Item # 6 22 SCHEDULES A A-1 Site Description A-2 Site Plan B B-1 Cabela’s Project Description B-2 TAD Project Description C C-1 TAD Project Construction Schedule C-2 Cabela’s Project Construction Schedule D D-1 TAD Project Budget D-2 Cabela’s Project Budget E Form of Requisition F G Intentionally Omitted Source and Uses Statement H Intentionally Omitted I J Performance Commitments Phase II Attachment number 1 \nPage 25 of 42 Item # 6 SCHEDULE A-1 SITE DESCRIPTION All that tract or parcel of land lying and being in the City of Augusta, Georgia, in the 90th G.M.D. of Richmond County and being more particularly described as follows: To find the 5/8-inch rebar of Beginning commence at the southwest side if the mitered intersection of the south side of Alexander Drive having a 100' right of way and the eastern right of way line of Riverwalk Parkway having a variable right of way and thence run along said southerly right of way 2017.04 feet to a 5/8-inch rebar located at the intersection of said southerly right of way with the proposed western right of way line of Comcast Lane, Thence run North 55 degrees 16 minutes 49 seconds East a distance of 70.00 feet to said proposed eastern right of way line of Comcast Lane; Thence leaving said proposed eastern right of way ling and continue along said southerly right of way line North 55 degrees 16 minutes 49 seconds East a distance of 97.58 feet to a 5/8-inch rebar found at the end of said southerly right of way; Thence run along said end of right of way north 34 degrees 43 minutes 06 seconds West a distance of 100.00 feet to a 5/8-inch rebar found on the northern right of way line of Alexander Drive with said 5/8- inch rebar being the 5/8-inch rebar of beginning; Thence from said 5/8-inch rebar of Beginning and leaving said northern right of way and run North 34 degrees 49 minutes 24 seconds West a distance of 409.90 feet to a 5/8-inch rebar set; thence North 55 degrees 10 minutes 46 seconds East a distance of 127.61 feet to a 5/8-inch rebar set; thence North 04 degrees 36 minutes 29 seconds West a distance of 221.27 feet to a 5/8-inch rebar set; thence North 04 degrees 36 minutes 29 seconds West a distance of 24.86 feet to a 5/8-inch rebar set; thence North 10 degrees 59 minutes 25 seconds East a distance of 25.34 feet to a 5/8-inch rebar found; thence South 09 degrees 55 minutes 11 seconds East a distance of 11.31 feet to a 5/8-inch rebar found; thence South 53 degrees 50 minutes 33 seconds East a distance of 11.76 feet to a 5/8-inch rebar found; thence North 87 degrees 07 minutes 43 seconds East a distance of 11.54 feet to a 5/8-inch rebar found; thence North 61 degrees 36 minutes 43 seconds East a distance of 23.62 feet to a 5/8-inch rebar found; thence North 51 degrees 46 minutes 20 seconds East a distance of 113.79 feet to a 5/8-inch rebar found; thence North 77 degrees 30 minutes 04 seconds East a distance of 13.77 feet to a 5/8-inch rebar found; thence South 86 degrees 18 minutes 02 seconds East a distance of 21.40 feet to a 5/8-inch rebar found; thence South 69 degrees 58 minutes 59 seconds East a distance of 71.56 feet to a 5/8-inch rebar found; thence South 58 degrees 13 minutes 32 seconds East a distance of 51.51 feet to a 5/8-inch rebar found; thence South 53 degrees 59 minutes 29 seconds East a distance of 151.15 feet to a 5/8-inch rebar found; thence South 85 degrees 01 minutes 01 seconds East a distance of 10.70 feet to a 5/8-inch rebar found; thence South 00 degrees 00 minutes 00 seconds West a distance of 276.13 feet to a 5/8-inch rebar set; thence South 13 degrees 01 minutes 58 seconds East a distance of 13.30 feet to a 5/8-inch rebar set; thence South 02 degrees 21 minutes 27 seconds West a distance of 139.70 feet to a 5/8-inch rebar set; thence along the arc of a curve to the right having a radius of 60.00 feet a distance of 49.74 feet to a 5/8-inch rebar set, with said arc being subtended by a chord bearing of South 34 degrees 45 minutes 02 seconds West and a chord length of 48.33 feet; thence South 58 degrees 29 minutes 55 seconds West a distance of 65.33 feet to a 5/8-inch rebar set; thence North 79 degrees 37 minutes 46 seconds West a distance of 28.32 feet to a 5/8-inch rebar set; thence South 55 degrees 18 minutes 01 seconds West a distance of 187.06 feet to a 5/8-inch rebar found and the Point of Beginning. Said tract or parcel to contain 5.846 Acres. Attachment number 1 \nPage 26 of 42 Item # 6 SCHEDULE A-2 SITE PLAN [TO BE ATTACHED] Attachment number 1 \nPage 27 of 42 Item # 6 SCHEDULE B-1 CABELA’S PROJECT DESCRIPTIO A freestanding Cabela’s Outpost retail store containing approximately 42,000 square feet of space with parking for 244 vehicles situated on approximately 5.8 acres of land in the Village of Riverwatch shopping center in Augusta, Georgia. Attachment number 1 \nPage 28 of 42 Item # 6 SCHEDULE B-2 TAD PROJECT DESCRIPTIO Land acquisition, plan approval, grading, retaining walls, utilities, concrete and paving, landscaping, site lighting, permitting and professional fees relating thereto for the new Cabela’s Outpost retail store to be located in the Village at Riverwatch shopping center in Augusta, Georgia. Attachment number 1 \nPage 29 of 42 Item # 6 SCHEDULE C-1 TAD PROJECT CONSTRUCTION SCHEDULE ITEM: ACTUAL OR ESTIMATED COMPLETIO DATE: Land acquisition August 30, 2013 Retaining Walls February 28, 2014 Concrete and Paving March 31, 2014 Landscaping March 31, 2014 Sitework April 30, 2014 Site Lighting April 30, 2014 Utilities April 30, 3014 Contingency for Delays December 31, 2014 Attachment number 1 \nPage 30 of 42 Item # 6 SCHEDULE C-2 CABELA’S PROJECT CONSTRUCTION SCHEDULE ITEM: ACTUAL OR ESTIMATED COMPLETIO DATE: Land, grading, infrastructure and other horizontal items April 30, 2014 Building Foundations October 31, 2013 Building Exterior Walls, Structural Steel, Roof December 15, 2013 Building Interior Slab-on-Grade January 31, 2013 Building Interior MEP Install February 28, 2014 Building Interior Finishes February 28, 2014 Building Exterior Finishes February 28, 2014 Furniture, Fixtures, and Equipment April 30, 2014 Contingency for Delays December 31, 2014 Attachment number 1 \nPage 31 of 42 Item # 6 D-1-1 CI-#9396169-v2-Cabela_s__Augusta_Development_Agreement.doc SCHEDULE D-1 TAD PROJECT BUDGET ITEM: ACTUAL OR ESTIMATED COST: Land acquisition and related costs $1,200,000 Sitework $ 400,000 Retaining Walls $ 150,000 Utilities $ 300,000 Concrete and Paving $ 500,000 Landscaping $ 100,000 Site Lighting $ 150,000 Professional Services $ 250,000 Environmental and permitting $ 25,000 TOTAL $3,075,000 Note: Amounts may be adjusted within each category. The total budget may be adjusted or increased or decreased in accordance with the terms of this Agreement. Attachment number 1 \nPage 32 of 42 Item # 6 SCHEDULE D-2 CABELA’S PROJECT BUDGET ITEM: ACTUAL OR ESTIMATED COST: Land, grading, infrastructure and other horizontal costs $ 3,075,000 Building and other vertical costs $ 7,050,000 Furniture, fixtures and equipment $ 2,500,000 TOTAL $12,625,000 Note: Amounts may be adjusted within each category. The total budget may be adjusted or increased or decreased in accordance with the terms of this Agreement. Attachment number 1 \nPage 33 of 42 Item # 6 SCHEDULE E FORM OF REQUISITION VILLAGE AT RIVERWATCH TAX ALLOCATION DISTRICT Requisition No. __ Date of Requisition: __________ ___, 20__. TO: Attention: Facsimile: PROJECT: TAD Project DEVELOPER: Cabela’s Wholesale, Inc. Application is made for payment of amounts on deposit in the Special Fund to pay for Reimbursement Costs in the amount, for the purposes and on the terms set forth below, all in accordance with the provisions of that certain Development Agreement between Augusta and the Developer named above, dated as of ________________, 2013 All capitalized terms used herein not otherwise defined shall have the meaning given them in the Development Agreement. As of the date of this Requisition No. ___, outstanding Requisition amounts and accrued interest thereon is $__________ (the “Outstanding Balance”) as detailed below: Requisition o. Date Approved Amount of Requisition Amounts Paid to Date Balance Unpaid Total Amount Due AIA Form G-702 and its Continuation Sheet, AIA Document G-703, are attached as Exhibit A and are made a part of this Requisition. Architect’s and Contractor’s Certificates for Payment are attached as part of the attached AIA Form G-702. 1. The TAD Project Budget is $___________ and the TAD Project costs, Schedule of Values and Percentages of Completion are as set forth on Forms G-702 and G-703 attached. Attachment number 1 \nPage 34 of 42 Item # 6 2. Total amount requested: $_____________________. 3. Attached hereto as Exhibit B are: (a) Copies of all bills or statements or cancelled checks for any indirect or soft-cost expense for which this Requisition is requested; (b) Copies of all bills or statements or cancelled checks for any such hard cost expenses incurred by the Developer for which this Requisition is requested; (c) To the extent applicable, a copy of a satisfactory “Interim Waiver and Release Upon Payment” pursuant to O.C.G.A. § 44-14-366 from the General Contractor which received payment from the proceeds of the immediately preceding Requisition; and (d) Certificate of Occupancy issued for the Cabela’s Project. DEVELOPER’S CERTIFICATIOS In accordance with the Development Agreement, Developer certifies to Augusta that: (a) all of its representations and warranties made in and as of the date of the Development Agreement are true and correct in all material respects as of the date hereof; (b) the construction of the TAD Project is in accordance with the Plans and the Development Agreement; (c) the Project Cost breakdown referenced in this Requisition is accurate; (d) all amounts being reimbursed for stored materials are and will be stored in either (a) a bonded warehouse approved by Augusta and accessible to inspection by representatives of Augusta, or (b) stored in a locked and otherwise secure storage arrangement acceptable to Augusta and insured in an amount acceptable to Augusta; (e) intentionally omitted; (f) no payment under this Requisition exceeds the maximum allowable non-construction expenses actually incurred within the amounts set forth in the TAD Project Budget, plus the actual cost of the completed portion of the TAD Project; (g) all payments requested under this Requisition are for TAD Project items (i) which are of a quality and construction acceptable under this Agreement and (ii) which have not been previously paid; (h) there are no liens outstanding against the site of the TAD Project except (i) inchoate liens for property taxes not yet due and payable, (ii) liens being contested in accordance with the terms and conditions set forth in applicable law and (iii) liens consented to by Augusta or otherwise permitted by the Development Agreement; (i) Developer is not in default under the Development Agreement; and (j) no governmental body has lawfully issued the equivalent of a stop order with respect to any portion of the TAD Project. Attachment number 1 \nPage 35 of 42 Item # 6 Submitted by: CABELA’S WHOLESALE, INC. By: Its: Approved: AUGUSTA, GEORGIA By: Its: Attachment number 1 \nPage 36 of 42 Item # 6 SCHEDULE F ITETIOALLY OMITTED Attachment number 1 \nPage 37 of 42 Item # 6 SCHEDULE G SOURCES AD USES STATEMET Sources of financing: internal and external sources of Developer; debt or equity financing. Uses are as described in the Development Agreement. Attachment number 1 \nPage 38 of 42 Item # 6 CI-#9396169-v2-Cabela_s__Augusta_Development_Agreement.doc SCHEDULE H INTENTIONALLY OMITTED Attachment number 1 \nPage 39 of 42 Item # 6 CI-#9396169-v2-Cabela_s__Augusta_Development_Agreement.doc SCHEDULE I PERFORMANCE COMMITMENTS For purposes of Section 5.2 of this Agreement, the following performance commitments shall apply: Investment: Subsequent to a Certificate of Occupancy being granted for the Cabela’s Outpost Store, upon the submission of the initial Requisition, Augusta shall reasonably determine the total investment made by Developer in the Cabela’s Project which shall include, without limitation, the costs identified in the TAD Project Budget and the Cabela’s Project Budget attached to this Agreement. In the event that Developer has expended or otherwise invested an amount equal to or greater than $11,500,000, then in such event all sums deposited into the Reimbursement Fund (less any Administrative Fees due and payable) beginning December 31, 2014 shall be disbursed to Developer in accordance with the provisions of Article IV of this Agreement. In the event that Developer has invested less than $11,500,000 but more than $8,500,000 in the Cabela’s Project, then the maximum amount of reimbursement from the Reimbursement Funds shall be $2,000,000, and such sum shall be disbursed to Developer. Job Creation: To determine whether the job creation performance commitment has been met, the total number of full-time equivalent jobs (defined below as “FTE Jobs”) at the Cabela’s Outpost Store shall be determined as of the end of twelve (12) months after the opening of the store (the “Job Count Date”), subject to the two-year rolling average provisions set forth below. In the event that the total number of FTE Jobs is equal to or greater than sixty (60) as of the Job Count Date, then all sums then and thereafter deposited into the Reimbursement Fund (less any Administrative Fees due and payable) shall be disbursed to Developer in accordance with the provisions of Article VI of this Agreement. In the event that Developer has created fewer than sixty (60) FTE Jobs as of the Job Count Date, a fractional amount of the sum then deposited into the Reimbursement Fund shall be disbursed to Developer for the first year of its operation, with the numerator of such fraction being the total number of FTE Jobs created and the denominator being one hundred (100). Thereafter, a determination shall be made annually on the anniversary of the Job Count Date as to the average number of FTE Jobs existing at the Cabela’s Project during the then-most recent year and the year preceding it (a two-year rolling average). In the event that the total average number of FTE Jobs existing at the Cabela’s Project is equal to or greater than sixty (60) for such two-year period, then (i) the job creation performance commitment shall be deemed fully satisfied, (ii) no additional determinations of the number of FTE Jobs shall thereafter be required, (iii) all sums then and thereafter deposited into the Reimbursement Fund (less any Administrative Fees due and payable) shall be disbursed to Developer in accordance with the provisions of Article VI of this Agreement and (iv) Developer shall retain the right to receive the maximum amount of reimbursement from the Reimbursement Fund during the term of the Agreement (collectively, the “Job Count Achievement Provisions”). In the event that the average total number of FTE Jobs is fewer than sixty (60) for such two-year period, then Developer shall be paid a fractional amount of the then-most recent year’s deposits into the Reimbursement Fund (less Administrative Fees due and payable) as described above, and the annual review shall continue on each anniversary of the Job Count Date until such time as the then-current two-year average number of FTE Jobs equals or exceeds sixty (60). If and when the then-current two-year average number of FTE Jobs equals or exceeds sixty (60), the Job Count Achievement Provisions shall apply. “FTE Jobs” defined: For purposes of this Schedule I, the number of new full-time equivalent jobs (referred to herein as “FTE Jobs”) shall be defined and determined, from time to time, as follows. Attachment number 1 \nPage 40 of 42 Item # 6 CI-#9396169-v2-Cabela_s__Augusta_Development_Agreement.doc (a) Only direct employees of Developer shall be counted as FTE Jobs, subject to the contract employee provisions set forth below. (b) In determining the number of FTE Jobs, a portion of the definition of “full-time job” from the job tax credit regulations of the Georgia Department of Community Affairs (which portion is set forth below) shall be used, but shall be modified as follows: “In no event shall any leased employee be counted as occupying an FTE Job, regardless of whether or not such person is employed by Developer or any other person or entity, provided, that, subject to the limitation set forth below, a contract employee of Developer, in a position that otherwise meets the definition of an FTE Job may be counted as such, if Developer provides benefits to such employee comparable to those provided by Developer to its permanent employees for purposes of this Agreement (each such worker, a “qualified contract worker”).” The parties agree, however, that if at any time the number of contract workers at the Cabela’s Project (whether or not they are qualified contract workers) amounts to more than 20% of Developer’s permanent employees at the Cabela’s Project, then any qualified contract workers in excess of 20% of Developer’s permanent employees shall not be counted as occupying FTE Jobs for purposes of this Agreement. In no event will contract workers who are not qualified contract workers (qualified contract workers having benefits comparable to those of permanent employees) be counted as FTE Jobs. (c) Subject to the foregoing restriction on contract employees, one (1) FTE Job means the following: a job with no predetermined end date (other than a retirement date), with a regular work week of 37.50 hours or more on average for the entire normal year of local Developer operations, and with benefits comparable to those provided to other regular employees of Developer locally, but does not mean a job classified for federal tax purposes as an independent contractor; provided, that two (2) or more part-time or seasonal jobs which equal or exceed a regular work week of 37.50 hours or more on average for the entire normal year of local Developer operations shall be counted as one (1) FTE Job. (d) The employees counted toward the number of FTE Jobs must be subject to Georgia income tax withholding for the taxable year. Transferred jobs and replacement jobs may not be included as FTE Jobs. Attachment number 1 \nPage 41 of 42 Item # 6 CI-#9396169-v2-Cabela_s__Augusta_Development_Agreement.doc SCHEDULE J PHASE II SITE PLAN FOR VILLAGE AT RIVERWATCH Attachment number 1 \nPage 42 of 42 Item # 6 Finance Committee Meeting 4/28/2014 1:05 PM Energy Excise Tax Implementation Department:Finance Caption:Discussion regarding the implementation of an excise tax on the purchase of energy by manufacturers as authorized by the Georgia General Assembly in 2012 with the passage of HB 386. Background:In 2012 the Georgia General Assembly passed House Bill 386 which dealt with tax reform. One of the provisions in this bill was to exempt energy sold to manufacturers of personal tangible property from sales tax. The law exempts such purchases from the 4% state sales tax, the county 1% Local Option Sales Tax (LOST) and the county 1% Special Purpose Local Option Sales Tax (SPLOST). The law did not exempt the purchases from the 1% Education Special Purpose Lost Option Sales Tax (ESPLOST). This exemption is being phase in over 4 years beginning in 2013 and will be full implemented in 2016. The law also provided that the county can impose an excise tax on energy purchases exempted by the state in order to recoup this lost revenue. Analysis:The Georgia Department of Revnue has not provided any data to assess the financial impact. Based on the revenue data collected during 2013 the estimated increase in revenue for 2014 will be $625,000, the estimated revneue for 2015 will be $3 Million and the estimated for 2016 and beyond will be $4 Million. Financial Impact:Increase in projected revenue: 2014 - $625,000 2015 - $3,000,000 2016 - $4,000,000 Alternatives:do not approve excise tax. Recommendation:Authorize the Mayor, Interim Administrator and Finance Department to begin the process to implement the excise tax. Funds are Available in the Following n/a Cover Memo Item # 7 Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 7 5 1 Energy Excise Tax Attachment number 1 \nPage 1 of 6 Item # 7 Energy Excise Tax 2 HB 386 eliminated sales tax charged on energy purchased made by manufacturing companies. Implemented starting in 2013, 25% per year until fully implemented in 2016. Savings to Companies Revenue Millage Increase Year 6% reduction 4% reduction Lost to ARC Needed 2013 3,000,000 2,000,000 1,000,000 0.25 2014 6,000,000 4,000,000 2,000,000 0.50 2015 9,000,000 6,000,000 3,000,000 0.75 2016 12,000,000 8,000,000 4,000,000 1.00 Attachment number 1 \nPage 2 of 6 Item # 7 Effect of millage increase on top 25 tax payers 3 Owner Name Appraised Value Assessed Value .4 mill -2014 increase 1 mill GEORGIA POWER CO 201,275,620 80,510,239 32,204 80,510 PCS NITROGEN FERTILIZER 244,207,562 92,989,007 37,196 92,989 INTERNATIONAL PAPER CO PAPERMILL 356,958,048 69,477,492 27,791 69,477 AUGUSTA NATIONAL INC 103,695,468 41,478,192 16,591 41,478 DSM CHEMICALS NORTH AMERICA 138,911,224 52,247,644 20,899 52,248 DOCTORS HOSPITAL OF AUG I 80,449,484 32,179,794 12,872 32,180 AUGUSTA NEWSPRINT 88,699,304 28,643,642 11,457 28,644 NATL LIFE & ACC INSUR CO 51,032,583 20,413,034 8,165 20,413 AUGUSTA RIVERFRONT LIMITED 39,389,336 15,755,737 6,302 15,756 COMCAST CABLEVISION OF GA/SC INC 41,034,038 16,413,616 6,565 16,414 NUTRASWEET COMPANY 67,196,201 25,352,469 10,141 25,352 BELLSOUTH TELECOM/ AT&T GEORGIA 34,218,658 13,687,463 5,475 13,687 PROCTER & GAMBLE MANUFACTURING CO THE 90,980,458 22,830,203 9,132 22,830 COVIDIEN LP 55,095,923 22,038,369 8,815 22,038 ATLANTA GAS LIGHT COMPANY 30,219,974 12,087,989 4,835 12,088 DOCTORS HOSPITAL OF AUGUSTA 31003 HCA 32,514,474 13,005,790 5,202 13,006 SOLVAY SPECIALTY PRODUCTS USA LLC 91,997,184 20,489,309 8,196 20,489 AUGUSTA MALL LLC 30,465,669 12,186,266 4,875 12,186 THERMAL CERAMICS INC 42,148,591 16,175,233 6,470 16,175 E Z GO CAR DIVISION OF TEXTRON 47,568,470 17,538,773 7,016 17,539 BERCKMAN RESIDENTIAL PROPERTIES LLC 27,330,975 10,932,392 4,373 10,932 KNOLOGY OF AUGUSTA INC 31,424,341 12,569,736 5,028 12,570 KIR AUGUSTA I 044 LLC 26,382,578 10,553,032 4,221 10,553 KIR AUGUSTA II L P 26,259,556 10,503,825 4,202 10,504 ELI LILLY AND COMPANY 97,827,022 29,350,865 11,740 29,351 Attachment number 1 \nPage 3 of 6 Item # 7 Energy Excise Tax 4 Authorized by HB 386 If approved implemented over 4 years (2013 to 2016) 25% per year Can be rescinded by commission action NOT A NEW REVENUE– replaces sales tax eliminated Manufacturing companies will still enjoy a net 4% reduction of sales tax on energy purchased. Attachment number 1 \nPage 4 of 6 Item # 7 October 1st implementation of Excise Tax - Timeline •May 30, 2014 – Meeting Notice sent to Blythe and Hephzibah •June 10, 2014 – Meet with Blythe and Hephzibah to discuss implementation of Energy Excise Tax •July 10, 2014 – Deadline for Hephzibah and Blythe to opt in •July 11, 2014 – Augusta adopts Energy Excise Tax •October 1, 2014 – Collections Start 5 Attachment number 1 \nPage 5 of 6 Item # 7 Discussion/Comments 6 Attachment number 1 \nPage 6 of 6 Item # 7 ACCG AUGUST 2013 1 ENERGY EXCISE TAX MODEL INTERGOVERNMENTAL AGREEMENT STATE OF GEORGIA _________ COUNTY INTERGOVERNMENTAL AGREEMENT FOR THE ALLOCATION AND DISTRIBUTION OF PROCEEDS FROM THE ENERGY EXCISE TAX THIS INTERGOVERNMENTAL AGREEMENT, made and entered into as of the ____ day of _______________________, 20__, by and between ________ COUNTY, GEORGIA, a political subdivision of the State of Georgia, (the “County”), and the CITY OF ______________, the CITY OF ______________, and the CITY OF ______________, municipal corporations of the State of Georgia, (the “Participating Municipalities”, individually and collectively). W I T N E S S E T H: WHEREAS, Article IX, Section III, Paragraph I(a) of the Constitution of Georgia (the “Intergovernmental Contracts Clause”) authorizes the County and the Participating Municipalities to contract, for a period not exceeding 50 years; WHEREAS, the County is authorized pursuant to O.C.G.A. § 48-13-110 et seq., (the “Energy Excise Tax Act”) to levy and collect an excise tax on the sale, use, storage, or consumption of energy (“Energy Excise Tax”) when such sale, use, storage, or consumption of energy would have constituted a taxable event for Attachment number 2 \nPage 1 of 9 Item # 7 ACCG AUGUST 2013 2 purposes of the sales and use tax under O.C.G.A. § 48-8-1 et seq., but for the exemption in O.C.G.A. § 48-8-3.2; WHEREAS, pursuant to O.C.G.A. § 48-13-113, the County and the municipalities of the County have met together and conferred to discuss whether or not the Energy Excise Tax should be levied within the special district within ________ County; and WHEREAS, pursuant to O.C.G.A. § 48-13-114, the County and the Participating Municipalities have determined that an Energy Excise Tax should be levied; and WHEREAS, O.C.G.A. § 48-13-114(a)(1) requires the County and the Participating Municipalities within the County to execute an intergovernmental agreement which provides for the distribution of proceeds in accordance with O.C.G.A. § 48-13-114(c) prior to the adoption of an ordinance by the County levying and imposing the Energy Excise Tax. NOW, THEREFORE, in consideration of the mutual promises and undertakings made in this Agreement, the benefits flowing to the parties hereto and to the citizens of each under this Agreement, and for good and valuable consideration the County and the Participating Municipalities consent and agree as follows: SECTION 1 REPRESENTATIONS & MUTUAL COVENANTS (A) The County makes the following representations and warranties which may be specifically relied upon by all parties as a basis for entering this Agreement: Attachment number 2 \nPage 2 of 9 Item # 7 ACCG AUGUST 2013 3 (i) The County is a political subdivision duly created and organized under the Constitution of Georgia; (ii) The governing authority of the County is duly authorized to execute, deliver, and perform this Agreement; and (iii) This Agreement is a valid, binding, and enforceable obligation of the County. (B) Each Participating Municipality makes the following representations and warranties which may be specifically relied upon by all parties as a basis for entering this Agreement: (i) Each Participating Municipality is a municipal corporation duly created and organized under the Laws of the State of Georgia; (ii) The governing authority of each Participating Municipality is duly authorized to execute, deliver, and perform this Agreement; (iii) This Agreement is a valid, binding, and enforceable obligation of each Participating Municipality; and (iv) Each Participating Municipality is located wholly or partially within the geographic boundaries of the special district created in the County. (C) It is the intention of the County and each Participating Municipality to comply in all respects the provisions of the Energy Excise Tax Act and all provisions of this Agreement shall be construed in light of the provisions of the Energy Excise Tax Act. (D) The County and each Participating Municipality agree to maintain thorough and accurate records concerning the receipt of proceeds under this Agreement. Attachment number 2 \nPage 3 of 9 Item # 7 ACCG AUGUST 2013 4 SECTION 2 CONDITIONS PRECEDENT (A) The obligations of the County and each Participating Municipality pursuant to this Agreement are conditioned upon the adoption of an ordinance by the County levying and imposing the Energy Excise Tax in accordance with the provisions of the Energy Excise Tax Act. (B) This Agreement is further conditioned upon the collecting of Energy Excise Tax revenues by the County and the transferring of those revenues to the general fund of the County and the general fund of each Participating Municipality. SECTION 3 ADMINISTRATION AND COLLECTION COSTS In accordance with O.C.G.A. § 48-13-114(b), the proceeds of the Energy Excise Tax shall be allocated and distributed by the governing authority of the County at the end of each calendar month, and, of such proceeds, an amount equal to 1 percent of such proceeds collected by the county shall be paid into the general fund of the County to defray the costs of collection and administration. SECTION 4 ALLOCATION AND DISTRIBUTION OF REMAINDER PROCEEDS (A) In accordance with O.C.G.A. § 48-13-114 (b) and (c), the remainder of the proceeds following the subtraction of costs of collection and administration under Section 3 of this Agreement shall be allocated and distributed by the Attachment number 2 \nPage 4 of 9 Item # 7 ACCG AUGUST 2013 5 governing authority of the County pursuant to this Agreement as provided in this Section. (B) Such remaining proceeds shall be allocated and distributed by the governing authority of the County within 30 days following the end of each calendar month to the general fund of the County and to the general fund of each Participating Municipality in accordance with the applicable provisions of O.C.G.A. § 48-13-114 (c)(1) or (2) as follows: (1) If two local sales and use taxes are in effect in the special district, an amount equal to one-half of the proceeds shall be distributed to the County general fund and the general fund of each Participating Municipality located in the County according to the same proportionate share as specified under the distribution provisions of the first local sales and use tax and an amount equal to one-half of the proceeds of the excise tax shall be distributed to the County general fund and the general fund of each Participating Municipality located in such County according to the same proportionate share as specified under the distribution provisions of the second local sales and use tax; or (2) If only one such local sales and use tax is in effect in the special district, then the proceeds of the excise tax shall be distributed to the County general fund and the general fund of each Participating Municipality located in the County according to the same proportionate share as specified under the distribution provisions of the local sales and use tax. (C) Such remaining proceeds shall not be subject to any use or expenditure requirements provided for under the provisions of law of the local sales and use taxes which are now subject to exemption under O.C.G.A. § 48-8-3.2 and are authorized to be expended in the same manner as would have otherwise required under such local sales and use tax provisions of law or to be expended for any lawful purpose. Attachment number 2 \nPage 5 of 9 Item # 7 ACCG AUGUST 2013 6 SECTION 5 COUNTY ORDINANCE ADOPTION In accordance with O.C.G.A. § 48-13-114 (a)(1), following the execution of this Agreement by the County and each Participating Municipality, the County agrees to adopt timely an ordinance levying the Energy Excise Tax pursuant to O.C.G.A. § 48-13-110 et seq. SECTION 6 ENTIRE AGREEMENT This Agreement, including any attachments or exhibits, constitutes all of the understandings and agreements between the County and the Participating Municipalities with respect to all matters relating to the imposition, levy, collection, administration, allocation, and distribution of proceeds of the Energy Excise Tax. Furthermore, this Agreement supersedes all prior agreements, negotiations, and communications of whatever type, whether written or oral, between the parties hereto with respect to such matters. SECTION 7 AMENDMENT OR MODIFICATION OF AGREEMENT This Agreement shall not be amended or modified except by agreement in writing executed by the governing authorities of the County and the Participating Municipalities. Attachment number 2 \nPage 6 of 9 Item # 7 ACCG AUGUST 2013 7 SECTION 8 GOVERNING LAW This Agreement shall be deemed to have been made and shall be construed and enforced in accordance with the Constitution and laws of the State of Georgia. SECTION 9 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 10 COMPLIANCE WITH LAW The County and each Participating Municipality shall comply with all applicable local, state, and federal statutes, ordinances, rule, and regulations. SECTION 11 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. Attachment number 2 \nPage 7 of 9 Item # 7 ACCG AUGUST 2013 8 SECTION 12 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. (OPTIONAL) SECTION 13 EFFECTIVE DATE OF ENERGY EXCISE TAX The County and each Participating Municipality agree that the Energy Excise Tax shall become effective on _________________, 20__.1 (OPTIONAL) SECTION 14 MEDIATION The County and each Participating Municipality 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, the County and the Participating Municipalities, acting by and through their duly authorized agents, have caused this Agreement to be executed in multiple counterparts under seals on the date indicated herein. 1 O.C.G.A. § 48-13-116 (a)(1) provides that the energy excise tax becomes effective date of the tax is the first day of the next succeeding calendar quarter which begins more than 80 days after the adoption of an ordinance levying the excise tax. (For services billed on a monthly basis, the tax applies to those services billed on or after that effective date.). NOTE: be certain that the date used here corresponds exactly to the effective date set forth in the ordinance. Attachment number 2 \nPage 8 of 9 Item # 7 ACCG AUGUST 2013 9 __________________ COUNTY, GEORGIA BY: ________________________________ Chairperson, Board of Commissioners (SEAL) ATTEST: ________________________________ Clerk CITY OF ________________________, GEORGIA BY: ________________________________ Mayor (SEAL) ATTEST: ________________________________ Clerk CITY OF ________________________, GEORGIA BY: ________________________________ Mayor (SEAL) ATTEST: ________________________________ Clerk CITY OF ________________________, GEORGIA BY: ________________________________ Mayor (SEAL) ATTEST: ________________________________ Clerk Attachment number 2 \nPage 9 of 9 Item # 7 ACCG AUGUST 2013 1 MODEL ORDINANCE IMPOSING AN EXCISE TAX ON THE SALE, USE, STORAGE, OR CONSUMPTION OF ENERGY WHEREAS, O.C.G.A. § 48-13-110 et seq., authorizes counties and municipalities to impose an excise tax on the sale, use, storage, or consumption of energy; and WHEREAS, imposition of the excise tax on the sale, use, storage, or consumption of energy is contingent upon the enactment of an ordinance of the county or municipality; and WHEREAS, _________________ County desires to impose such excise tax and pursuant to O.C.G.A. § 48-13-113 has met and conferred with each municipality in the county and no such municipality desires to participate in such excise tax.1 OR WHEREAS, _________________ County desires to impose such excise tax and pursuant to O.C.G.A. § 48-13-113 has met and conferred with each municipality in the county and has executed an intergovernmental agreement with the following jurisdictions: the City of __________________________, the City of_________________________________, the City of __________________________, and the City of_______________________________________ which desire to participate in such excise tax. 2 NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of ____________________ County does hereby ordain as follows: Section 1. Energy Excise Tax Definitions As used in this ordinance, the terms: “dealer;” “energy;” “local sales and use tax;” and “purchaser” shall have the same meanings as provided in O.C.G.A. § 48-13-110. 1 Use this if the county will be imposing the tax without the city or cities. 2NOTE: If the county will be imposing the tax and one or more municipalities are to participate, then an intergovernmental agreement is required under O.C.G.A. § 48-13-114 to provide for the distribution of proceeds. Attachment number 3 \nPage 1 of 7 Item # 7 ACCG AUGUST 2013 2 Section 2. Imposition; Rate; Remitting; Recovery; Liabilities (a) In accordance with the provisions of O.C.G.A. § 48-13-110 et seq., there is imposed within the territorial limits of the special district created pursuant to O.C.G.A. § 48-13- 111, an excise tax on the sale, use, storage, or consumption of energy when such sale, use, storage, or consumption would have constituted a taxable event for purposes of sales and use tax under O.C.G.A. § 48-8-1 et seq. but for the exemption in O.C.G.A. § 48- 8-3.2.3 Section 3. Excise tax rate; phase-in. 4 (a) Such excise tax shall be levied and collected by the governing authority of ____________ County pursuant to O.C.G.A. §§ 48-13-112 and 48-13-114 and as provided in this section. (b) Except as otherwise provided in this section, the rate of such excise tax shall be phased in over a four-year period as follows: (1) For the period commencing January 1, 2013, and concluding at the last moment of December 31, 2013, such excise tax shall be at a rate equivalent to 25 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2; (2) For the period commencing January 1, 2014, and concluding at the last moment of December 31, 2014, such excise tax shall be at a rate equivalent to 50 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2; (3) For the period commencing January 1, 2015, and concluding at the last moment of December 31, 2015, such excise tax shall be at a rate equivalent to 75 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2; and 3 NOTE: The excise tax is tied to O.C.G.A. § 48-8-3.2. There is no authorization under O.C.G.A. § 48-13- 110 et seq. to levy this tax on bona fide energy used in agriculture. Please review carefully the definitions and scope of O.C.G.A. §§ 48-8-3.2 & 48-8-3.3 to determine the proper scope of the agricultural provisions. 4 Under O.C.G.A. § 48-13-112(a)(3), if the tax is imposed before January 1, 2016, the rate will gradually phase in as the rate of local sales and use tax phases out. Under O.C.G.A. § 48-13-114, after the actual rate imposed follows the rate of local sales and use tax (defined in O.C.G.A.A § 48-13-110(3). It will be either 1% or 2 %, with the exception of a city which levies municipal option water and sewer tax, in which case the rate would be 3%. Attachment number 3 \nPage 2 of 7 Item # 7 ACCG AUGUST 2013 3 (4) On or after January 1, 2016, such excise tax shall be at a rate equivalent to 100 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2. (c) In accordance with O.C.G.A. § 48-8-3.2 (c)(4), if a project of regional significance under O.C.G.A. § 48-8-3(92) is started in the special district, it shall not be subject to the phase-in period contained in paragraphs (1), (2), and (3) of subsection (b) of this section, and the sale, use, storage, or consumption of energy in connection therewith shall be subject to the rate specified in paragraph (4) of subsection (b) of this section notwithstanding the January 1, 2016 limitation in that paragraph (4). (d)(1) Following such initial imposition during the phase-in time period, on or after January 1, 2016, the rate of the excise tax levied and collected by the governing authority of __________ county shall be directed by O.C.G.A. § 48-13-112(d). Such rate shall be controlled by the maximum amount of local sales and use tax in effect in the special district, but in no event more than 2 percent (except in the case where the municipal option water and sewer tax is levied where that rate will be 3%. See FN 4 below). (2) In the event the total rate of local sales and use taxes in effect in the special district decreases from 2 percent to 1 percent, the rate of the excise tax under this ordinance shall likewise be reduced at the same time such local sales and use tax rate reduction becomes effective. (3) In the event the total rate of local sales and use taxes in effect in the special district increases from 1 percent to 2 percent, the rate of the excise tax under this ordinance shall likewise be increased at the same time such local sales and use tax rate increase becomes effective. Section 4. Imposition; Remittance; Recovery In accordance with O.C.G.A. §48-13-112(c), such excise tax shall be: (1) Imposed only at the time sales and use tax on the sale or use of such energy would have been due and payable under O.C.G.A. § 48-8-30 but for the exemption under O.C.G.A. § 48-8-3.2; (2) Due and payable in the same manner as would be required under O.C.G.A. § 48-8-1 et seq., except as other provided in O.C.G.A. § 48-8-110 et seq.; (3) A debt of the purchaser of energy until it is paid and shall be recoverable at law in the same manner as authorized for the recovery of other debts; (4) Remitted to the governing authority of ____________ County by the dealer collecting such excise tax; and Attachment number 3 \nPage 3 of 7 Item # 7 ACCG AUGUST 2013 4 (5) A liability of the dealer at the applicable rate on the charges actually collected or the amount of excise taxes collected from purchasers, whichever is greater. Section 5. Exemption Certificates (a) The governing authority of ___________ County, or the collecting officer appointed under Section 8 of this ordinance, shall make diligent efforts to identify all energy providers and purchasers in the special district and to ascertain whether such a purchaser has completed a uniform exemption certificate provided from the website of the Georgia Department of Revenue seeking to qualify such purchaser for the exemption under O.C.G.A. § 48-8-3.2. Such certificate shall be utilized by such governing authority or collecting officer for the purpose of determining the applicability of the excise tax under this ordinance. (b) An energy provider shall be authorized to rely upon such uniform exemption certificates. An energy provider shall not be liable for failing to collect and remit the excise tax imposed pursuant to this ordinance if the purchaser has failed to submit such uniform exemption certificate to the energy provider. Section 6. Commencement of Collections The excise tax imposed pursuant to this ordinance shall become effective on ___________,5 and shall be due and payable to the governing authority of ________________ County monthly on or before the twentieth day of every month and each respective month in which such taxes are collected, and payment shall be accompanied by a return for the preceding monthly period showing the gross sales and purchases arising from all sales and purchases taxable under this ordinance during the preceding calendar month. Section 7. Distribution and expenditure of proceeds 6 Pursuant to O.C.G.A. § 48-13-114, the excise tax proceeds shall be paid into the general fund of ____________ County and shall not be subject to any use or expenditure 5 Under O.C.G.A. § 48-13-116 (a)(1), the effective date of the tax is the first day of the next succeeding calendar quarter which begins more than 80 days after the adoption of an ordinance levying the excise tax. (For services billed on a monthly basis, the tax applies to those services billed on or after that effective date.) 6 This option should be used only when no municipalities are participating in the tax. Attachment number 3 \nPage 4 of 7 Item # 7 ACCG AUGUST 2013 5 requirements provided for under any of the local sales and use taxes but shall be authorized to be expended in the same manner as otherwise would have been required under such local sales and use taxes or may be expended for any lawful purpose as determined by the governing authority of ________________ County. OR Section 7. Allocation, distribution, and expenditure of proceeds7 (a) Pursuant to O.C.G.A. § 48-13-114 (b), the excise tax proceeds shall be allocated and distributed by the governing authority of ______________ County at the end of each calendar month. An amount equal to 1 percent of such proceeds collected by _____________ County shall be paid into the general fund of ___________ County to defray the costs of collection and administration. (b) The remainder shall be distributed in accordance with the intergovernmental agreement as required under O.C.G.A. § 48-13-114 (b) and (c). Within 30 days following the end of each calendar month, the remainder shall be distributed to the general fund of _____________ County and the general fund of each participating municipality in accordance with the applicable provisions of O.C.G.A. § 48-13-114 (c)(1) or (2) as follows: (1) If two local sales and use taxes are in effect in the special district, an amount equal to one-half of the proceeds shall be distributed to the general fund of ________________ County and the general fund of each participating municipality located in the county according to the same proportionate share as specified under the distribution provisions of the first local sales and use tax and an amount equal to one- half of the proceeds of the excise tax shall be distributed to the general fund of _____________ County and the general fund of each participating municipality located in such county according to the same proportionate share as specified under the distribution provisions of the second local sales and use tax; or (2) If only one such local sales and use tax is in effect in the special district, then the proceeds of the excise tax shall be distributed to the general fund of ______________ County and the general fund of each participating municipality located in the county according to the same proportionate share as specified under the distribution provisions of the local sales and use tax. (c) Except as provided in subsection (a) of this section, proceeds of the excise tax deposited in the general fund of _______________ County may be expended for any lawful purpose as determined by the governing authority of _______________ County. 7 This option should be used when an intergovernmental agreement has been executed with one or more participating municipalities. Attachment number 3 \nPage 5 of 7 Item # 7 ACCG AUGUST 2013 6 Section 8. Administrative Provisions; Audits; Examinations; Collecting Officer (a) The governing authority of _____________ County shall be authorized to designate a collecting officer8 for collection and administration of the excise tax under this ordinance. (b) The collecting officer shall be authorized to provide for procedures necessary to the proper implementation of this ordinance, including, but not limited to, periodic auditing of dealers collecting and remitting the excise tax. The collecting officer, or the designee of the collecting officer, is specifically authorized to examine the books , papers, records, financial reports, equipment, , or other facilities of any purchaser which is required to remit the excise tax under this ordinance. (c) In accordance with O.C.G.A. § 48-13-118, as part of the audit report required under O.C.G.A. § 36-81-7, the auditor shall include, in a separate schedule, a report of the revenues pertaining to the excise tax under this ordinance. Section 9. Repealer All ordinances and parts of ordinances in conflict with this ordinance are hereby repealed. Section 10. Effective Date The ordinance shall become effective ___________, ________.9 BE IT ORDAINED this ____ day of __________________, ________, by the Board of Commissioners of ______________________ County, Georgia. __________________________ Chairperson 8 The collecting officer could be any appropriate person as determined by the governing authority. The tax commissioner could be designated if the tax commissioner consents to the designation. 9 Under O.C.G.A. § 48-13-116 (a)(1), the effective date of the tax is the first day of the next succeeding calendar quarter which begins more than 80 days after the adoption of an ordinance levying the excise tax. (For services billed on a monthly basis, the tax applies to those services billed on or after that effective date.) Attachment number 3 \nPage 6 of 7 Item # 7 ACCG AUGUST 2013 7 CERTIFICATION I hereby certify that the foregoing is a true and correct copy of an original ordinance duly adopted by the Board of Commissioners of ___________ County on the ____ day of ___________, _________. In witness whereof, I hereunto set my hand and affix the seal of the County, this ____ day of ___________, _________. __________________________ County Clerk [Affix Seal] Attachment number 3 \nPage 7 of 7 Item # 7 ACCG AUGUST 2013 1 MODEL RESOLUTION APPROVING ENERGY EXCISE TAX INTERGOVERNMENTAL AGREEMENT AND AUTHORIZING THE CHAIR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT ON BEHALF OF THE COUNTY A RESOLUTION OF THE BOARD OF COMMISSIONERS OF _________ COUNTY, GEORGIA APPROVING AND AUTHORIZING EXECUTION, BY THE CHAIR OF THE _______________ COUNTY BOARD OF COMMISSIONERS, OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY AND CERTAIN MUNICIPALITIES OF ___________________ COUNTY CONCERNING AN ENERGY EXCISE TAX ENACTED PURSUANT TO O.C.G.A. § 48-13-110 ET SEQ.; REPEALING PRIOR RESOLUTIONS IN CONFLICT; AND FOR OTHER PURPOSES. WHEREAS, the County is authorized pursuant to O.C.G.A. § 48-13-110 et seq., (the “Energy Excise Tax Act”) to levy and collect an excise tax on the sale, use, storage, or consumption of energy (“Energy Excise Tax”) when such sale, use, storage, or consumption would have constituted a taxable event for purposes of the sales and use tax under O.C.G.A. § 48-8-1 et seq., but for the exemption in O.C.G.A. § 48-8-3.2; WHEREAS, pursuant to O.C.G.A. § 48-13-113, the County and the municipalities of the County have met together and conferred to discuss whether or not the Energy Excise Tax should be levied within the special district within ________ County; Attachment number 4 \nPage 1 of 4 Item # 7 ACCG AUGUST 2013 2 WHEREAS, pursuant to O.C.G.A. § 48-13-114, the County and the Participating Municipalities have determined that an Energy Excise Tax should be levied; and WHEREAS, O.C.G.A. § 48-13-114(a)(1) requires the County and the Participating Municipalities within the County to execute an intergovernmental agreement which provides for the distribution of proceeds in accordance with O.C.G.A. § 48-13-114(c) prior to the adoption of an ordinance by the County levying and imposing the Energy Excise Tax. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF ______________________ COUNTY, GEORGIA as follows: SECTION 1 The attached intergovernmental agreement addressing the imposition, levy, collection, administration, allocation, and distribution of proceeds of the Energy Excise Tax between ____________County and the City of _____________, the City of __________________, and the City of __________________, is hereby approved. SECTION 2 The chair of the Board of Commissioners of _____________ County is authorized to execute such intergovernmental agreement on behalf of such board of Commissioners and affix the seal of the County thereto. SECTION 3 All resolutions or parts of resolutions in conflict herewith are repealed. Attachment number 4 \nPage 2 of 4 Item # 7 ACCG AUGUST 2013 3 This _____________________ day of _________________, 20__. _____________________ County, Georgia. BY: ________________________________ Chair, Board of Commissioners (SEAL) ATTEST: ________________________________ Clerk BY: ________________________________ Commissioner, District _____ (SEAL) ATTEST: ________________________________ Clerk BY: ________________________________ Commissioner, District _____ (SEAL) ATTEST: ________________________________ Clerk BY: ________________________________ Commissioner, District _____ (SEAL) ATTEST: ________________________________ Clerk Attachment number 4 \nPage 3 of 4 Item # 7 ACCG AUGUST 2013 4 BY: ________________________________ Commissioner, District _____ (SEAL) ATTEST: ________________________________ Clerk BY: ________________________________ Commissioner, District _____ (SEAL) ATTEST: ________________________________ Clerk Attachment number 4 \nPage 4 of 4 Item # 7 Local Excise Tax on Energy Used in Manufacturing The local excise tax on energy used in manufacturing is an optional local tax designed to replace the local sales tax revenues lost to the new statewide sales tax exemption on energy used in manufacturing beginning January 1, 2013. It should not be considered a new tax but a method of replacing local sales tax revenues. The new sales tax exemption and the imposition of the new excise tax are proportionately phased in over a four year period. Counties should decide before January 1, 2013 if they will impose the new excise tax and if their cities will participate. What is the tax rate? The local excise tax is levied at the same rate as the local county/city sales taxes. Future increases or decreases to the local sales tax rate will trigger an automatic rate adjustment to the excise tax. How are tax revenues distributed between the county and its cities? They are shared between the county and the cities based upon the same proportional share each receives from local sales taxes. How is energy used in manufacturing defined? Any natural or artificial gas, oil, gasoline, electricity, solid fuel, wood, waste, ice, steam, water and other materials necessary and integral for heat, light, power, refrigeration, climate control, processing or any other use in any phase of the manufacture of tangible personal property. It does not include energy purchased by a manufacturer that is primarily engaged in producing electricity for resale, such as energy manufactured for resale by Georgia Power or an EMC. How is the tax enacted? The tax is enacted through the adoption of an ordinance by the board of commissioners; no referendum is required. If one or more cities want to be included they must sign an intergovernmental agreement with the county. If the county fails to adopt the ordinance before the end of 2013, any city can adopt their own ordinance and collect the tax within their jurisdiction. What is the deadline for adopting the ordinance with a January 1, 2013 effective date? The law states that the effective date will be the first day of the next succeeding month after the adoption of the ordinance. However, it is recommended that counties adopt the ordinance at least 3 weeks prior to the first day of the next succeeding month in order to allow enough time to submit the necessary documents to the energy providers prior to the effective date. We adopted the ordinance, now what do we do? Once you have adopted the ordinance, the next step is to submit your ordinance along with the energy provider information form (Can be found on our website) to all the energy providers that service your jurisdiction. Due to the customer uncertainty of gas providers, it is recommended that you submit an Attachment number 5 \nPage 1 of 3 Item # 7 ordinance to all of the natural gas providers approved to sell in Georgia. The list can be found on our website. Where can I get a list of energy providers for Georgia? There is no exhaustive list of energy providers for Georgia. However, the Public Service Commissioner’s website does have a list of all the natural gas providers approved to sell in Georgia. You can find a link to this page on our website. Outside of Georgia Power, the most of the electricity is provided by an EMC or a city run utility. We are currently working with Georgia EMC and Electric Cities of Georgia on a contact list of those who service Georgia. This list will be posted on our website once it is completed. How is the tax collected? The tax is collected by the county from companies that sell energy (e.g., electricity, gas, oil, or other types of fuel) to manufactures within the county. The county retains a one percent administrative fee for collecting the tax and distributes to the participating cities their share of the revenue. The county is also given the authority to conduct audits. What if the county refuses to enact the tax but a city wants to impose the tax? After January 1, 2013, if a county has failed to impose the tax, then any city can impose the tax at the same rate but only on energy sold to manufacturers within their If the county does not impose the tax beginning January 1, 2013, can it impose the tax at a later date? Yes, the tax can be imposed at anytime. If the county imposes the tax after a city has imposed the tax, the tax will revert back to the countywide collection and distribution formula. How can this tax be used? Unlike the restricted sales tax revenues that this tax is intended to replace, these revenues are unrestricted and can be used in the general fund for any purpose. A county may choose to use a portion of these revenues in their SPLOST account, but is not required to do so. How is the tax terminated? The tax can be terminated at any time by ordinance of the county governing authority. The effective date will be the first day of the following quarter that is at least 80 days after the adoption of the ordinance terminating the tax. What is the fiscal impact to counties? Unfortunately, the fiscal impact to counties cannot be accurately determined because the data does not exist. The most accurate way to assess the fiscal impact is to levy the tax initially and monitor the revenue for a year. Your first year’s revenue will be approximately 1/4 of your revenue once the exemption is fully phased in. Attachment number 5 \nPage 2 of 3 Item # 7 Can we levy the excise tax on one of our local taxes but not the other? No, the law requires the excise tax to be levied on all of your eligible local taxes or none at all. Are the ESPLOST, ELOST, and TSPLOST subject to the excise tax? No, the ESPLOST and ELOST are not subject to the energy exemption. As for TSPLOST, energy used in manufacturing was exempted from the tax in the TIA bill, HB 277. Can we exempt a prospect from the excise tax? No, a county levied excise tax must be levied or repealed in whole. Will the excise tax be collected against all manufacturers regardless of whether they claim the exemption? No, the law provides that the excise tax shall be levied against the sale or use of energy in manufacturing that would have been a taxable event but for the exemption. This language has been interpreted to mean that only those claiming the exemption will be charged the excise tax. Can the excise tax be collected to offset the Ag exemption? No, those businesses claiming the Ag exemption are not subject to the excise tax. Who determines if a business should be exempt? It is a self-selection process, meaning that a business who believes they qualify for the exemption may do so by downloading the exemption certificate from DOR, completing it, and submitting it to the energy providers. Energy providers are not responsible for determining the validity of the exemption. How do counties know the tax is being collected properly? The law provides audit authority to those counties who levy the excise tax. Counties can audit the energy providers to ensure they are collecting the tax at the proper rate. Attachment number 5 \nPage 3 of 3 Item # 7 Finance Committee Meeting 4/28/2014 1:05 PM Guidelines for distributions to outside agencies Department:Finance Caption:Review of approved guidelines for the distribution of SPLOST funds to outside agencies. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 8 CHALLENGE GRANT REQUIREMENTS FOR AGENCIES REQUESTING SPLOST FUNDS 1. Requesting agencies will be required to acknowledge in writing that grant requests are subject to these guidelines. 2. Agencies are required to raise 25% of SPLOST funding amount as a match. 3. Matching funds must be raised and verified before the release of any SPLOST funds will be eligible for disbursement. 4. Funds must be new donations/grants and designated for the specific project described in the SPLOST application. 5. Matching Funds maybe: a) Cash b) Verified Grant Commitments c) Verified in-kind donations (tangible property, Stocks/Bonds, Cash Equivalents) d) Pledges will not used in matching fund calculation. 6. Matching funds must be shown as designated or reserved on agencies audited financial statements 7. Funds will be eligible for disbursements according to the disbursements schedule in the SPLOST Intergovernmental agreement. 8. The release of funds will be subject to the “Guidelines for Dispersal of SPLOST Funds to Outside Agencies” that were approved by the Augusta Richmond County Commission on June 6, 2006. 9. Agencies will be required to enter into a contractual agreement for SPLOST projects setting forth project purposes, descriptions, and budgets and funding. 10. Any fund not disbursed after two years following the termination of the SPLOST Phase VI collections will forfeited and revert to a SPLOST Recapture account. These funds will be reallocated by the Augusta Richmond County Commission as provided by SPLOST Law. Agencies that have forfeited funds will not be eligible for any reallocations. Attachment number 1 \nPage 1 of 1 Item # 8 SPLOST funding request from outside agencies Agency:_________________________________________ Project Name:___________________________________ Budget Time Frame:______________________________ Submitted by:___________________________________ Approved by: Finance Department:__________________ Administrator:_______________________ *Approved by Augusta Richmond County Commission on June 6, 2006, agenda item 6 Attachment number 2 \nPage 1 of 6 Item # 8 Guidelines for Dispersal of SPLOST Funds to Outside Agencies Outside agencies that are requesting SPLOST funds are subject to the following guidelines. The agency requesting the funds is required to provide the following initial information (see examples): A description of the project A project timeline, A detailed project budget – contingency amount cannot be more than 10% of total funding amount. Funding will be made available on the following basis: 25% of the budget will be granted upon approval of project by the Administrator Funding will then be granted to agencies on a quarterly basis as a reimbursement of expenses. Agencies will be required to provide a progress report on a quarterly basis. Funds will be disbursed once the report has been approved by the Administrator. 5% of total project will be held until final project completion report has been submitted and approved by the Administrator. Funding requests for lump sum payments will be reviewed on a case by case basis and are required to be approved by the Administrator. Projects that make no funding requests for more that one year after initial funding or interim funding has been provided will be required to submit updated documentation including: A description of the project A project timeline, A detailed project budget If the scope of the project changes updated documentation is required to be submitted. If the total cost of the project changes updated budget information is required to be submitted. Attachment number 2 \nPage 2 of 6 Item # 8 EXAMPLES Project Description: ABC agency is requesting $500,000 in funds from Splost phase V for the purpose for remodeling the XYZ museum. The museum is in need of repairs and upgrades to enhance the enjoyment by our patrons and the general public. We will be improving the audio visual equipment, installing a wireless network, and upgrading the HVAC capacity. We will also be purchasing land to increase our parking area. Project timeline: July 2006 – Publish RFP September 2006 – Award Contracts October 2006 – Begin remodeling projects November 20006 - Purchase land June 2007 – Complete remodeling projects July 2007 – Grand reopening Project Budget Agency:ABC Agency Project Name:XYZ Museum Date:7/18/2006 Professional Fees 7,500.00 Building Construction 250,000.00 Building Remodeling 50,000.00 Supplies 10,000.00 Equipment 125,000.00 Land 10,000.00 Other Expense(specify)- Other Expense(specify)- Other Expense(specify)- Contingency **47,500.00 Total 500,000.00 ** Can be no more than 10% of total Budget Attachment number 2 \nPage 3 of 6 Item # 8 Augusta Richmond County Splost Funding Requests Initial Budget Agency: Project Name: Date: Professional Fees Building Construction Building Remodeling Supplies Equipment Land Other Expense(specify) Other Expense(specify) Other Expense(specify) Contingency ** Total ** Can be no more than 10% of total Budget Signatures Requesting Agency Date Finance Department Date Finance Director Date Administrator Date Attachment number 2 \nPage 4 of 6 Item # 8 Augusta Richmond County SPLOST Funding Request Reimburement Request EXAMPLE Agency:ABC Agency Project Name:XYZ Museum Budget Period:9/1/06 to 12/31/06 Budget Period Initial Budget Expenses Professional Fees 5,000.00 25,000.00 Building Construction 250,000.00 - Building Remodeling 50,000.00 - Supplies 10,000.00 2,500.00 Equipment 125,000.00 50,000.00 Land 10,000.00 10,000.00 Other Expense(specify)- - Other Expense(specify)- - Other Expense(specify)- - Contingency **50,000.00 10,000.00 Total 500,000.00 97,500.00 Total Project Budget 500,000.00 Prior Funds Recievied Total Funds Available 500,000.00 Amount Requested 97,500.00 Signatures Requesting Agency Date Finance Department Date Finance Director Date Administrator Date Attachment number 2 \nPage 5 of 6 Item # 8 Augusta Richmond County SPLOST Funding Request Reimbursement Request Agency: Project Name: Budget Period: Budget Period Initial Budget Expenses Professional Fees Building Construction Building Remodeling Supplies Equipment Land Other Expense(specify) Other Expense(specify) Other Expense(specify) Contingency ** Total Total Project Budget Prior Funds Recievied Total Funds Available Amount Requested Signatures Requesting Agency Date Finance Department Date Finance Director Date Administrator Date Attachment number 2 \nPage 6 of 6 Item # 8 Finance Committee Meeting 4/28/2014 1:05 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Finance Committee held on March 24, 2014. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 9 Attachment number 1 \nPage 1 of 3 Item # 9 Attachment number 1 \nPage 2 of 3 Item # 9 Attachment number 1 \nPage 3 of 3 Item # 9 Finance Committee Meeting 4/28/2014 1:05 PM Motion to Approve Budget Amendment to Reflect Savings in Public Defender's Office Department:Finance Caption:Motion to approve budget amendment to reflect savings in Public Defender's office realized by converting positions from State of Georgia to City of Augusta. Background:Augusta pays the State of Georgia Office of Public Defender under a contract for the salaries and benefies of personnel in the Public Defender's office. For the reasons cited below it is more cost effective to pay those employees thru the City of Augusta. Because the approved budget is in an expenditure line item for contract expenses, but will need to be moved to a salary and benefit expenditure item, the Commission must authorize the budget amendment. The number of positions remains unchanged but Augusta realizes savings of 22% of the cost of these positions. Analysis:Due to the benefit rate structure charged by the state and the administrative fee for handling payroll, it is more cost effective for those positions to be paid thru the Augusta payroll process with the benefits offered by Augusta. Financial Impact:Savings realized by converting the 5 positions listed on the attachment from the state payroll to Augusta's payroll would be 22% or $68,152.80 annually. Alternatives:forego the savings which would be over $68,000 of the required $79,000 for the Public Defender's office as the 2.4% 2014 budget reduction. Recommendation:approve the requested budget amendment Funds are Available in the Following Accounts: none required - this amendment will reflect the savings of $68,000 annually for Augusta Cover Memo Item # 10 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 10 In order to save the funding counties the expense of State benefits, the following full time positions are requested to be changed from County Funded State Paid positions to County funded County paid positions for the Office of the Public Defender: Position: Base Salary Salary plus benefits Salary plus benefits State Local Administrative Assistant $28,805.04 $48,013.98 $37,446.55 Clerk $27,450.00 $45,756.85 $35,685.00 Clerk $25,500,00 $42,508.68 $33,150.00 Assistant Public Defender $52,101.12 $86,818.87 $67,731.45 Assistant Public Defender $52,101.12 $86,818,87 $67,731.45 Totals: $309,917.25 $241,764.45 Total Savings for changing from County funded State Paid to County funded County paid for these five positions: $68,152.80 Attachment number 1 \nPage 1 of 1 Item # 10 Finance Committee Meeting 4/28/2014 1:05 PM Public Safety Exempt Employees' Pay During Ice Storm Department:Administrator Caption:Discuss public safety exempt employees not being paid for services provided under the inclement weather policy during the ice storm. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 11 Finance Committee Meeting 4/28/2014 1:05 PM Receive as information 1st qtr 2014 Financial Reports Department:Finance Caption:Receive as information financial reports for the period ended March 31, 2014. Background:Periodic financial reports are presented to keep the commission apprised of the financial status of the organization. Analysis: Financial Impact: Alternatives: Recommendation:Receive as information Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 12 Finance Committee Meeting 4/28/2014 1:05 PM Virgil Winbush Department:Clerk of Commission Caption:Consider a request from Mr. Virgil Wimbush regarding a waiver of taxes and penalties for the house located at 2035 Old Savannah Road. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 13 Attachment number 1 \nPage 1 of 1 Item # 13