To

Mayor and Council

Subject

GMA Lease Pool Annual Certification

Initiator

Finance Department

Recommendation

Approve a Resolution authorizing the annual appropriation of all amounts \n \n required pursuant to Columbus? participation in the pooled lease program \n \n sponsored by Georgia Municipal Association.

Approval

Approved

Background

In 1990 the City entered into a master lease agreement with GMA pursuant to

which GMA may lease operating equipment to the City. Each sub-lease for

specific equipment is executed after Council approval. At present, the City

effectively has a line of credit equal to $4,453,164 through this program. The

provisions of the master lease require annual certification of certain facts by

the city. The attached resolution is prepared by GMA, and we are required to

adopt it at the start of each calendar year. In the FY 02 budget, the City has

appropriated the maximum amount we legally could be required to pay in the 2002

calendar year for debt service on the bonds sold by GMA to fund the lease

pool. This action merely complies with the technical requirements of the 1990

lease agreement and has no impact on our current year?s financial activity.

Analysis

This action is a routine requirement of the 1990 GMA lease pool. In

actuality, GMA?s bonds sold to fund the pool are repaid with the lease payments

of pool participants and interest earned on unused bond proceeds. As a pool

participant, we have a legal obligation to pay a share of GMA?s debt service

and administrative fees if the interest earnings prove to be insufficient. We

are required to adopt this provision as if the pool was not earning interest on

investments.

Financial Considerations

This action will have no actual impact on our financial activity.

Projected Annual Fiscal Impact Statement

Legal Considerations

Pursuant to the Lease Agreement, Lessee is required to appropriate annually the

Minimum Annual Appropriated Amount set forth on Schedule A.

Recommendations/ Actions

Approve the attached Resolution authorizing the annual appropriation of all

amounts required pursuant to the City?s participation in the pooled lease

program sponsored by Georgia Municipal Association.





RESOLUTION



NO.______





A RESOLUTION OF THE COLUMBUS CONSOLIDATED GOVERNMENT (THE "LESSEE")

AUTHORIZING, INTER ALIA, THE ANNUAL APPROPRIATION OF ALL AMOUNTS REQUIRED

PURSUANT TO LESSEE'S PARTICIPATION IN THE POOLED LEASE PROGRAM SPONSORED BY

GEORGIA MUNICIPAL ASSOCIATION.





WHEREAS, Lessee is participating in the Georgia Municipal Association,

Inc. ("GMA") sponsored pooled lease program (the "Program") for the acquisition

of equipment to be used by participating political subdivisions of the State of

Georgia (the"Equipment"); and





WHEREAS, pursuant to the Program, Lessee entered into (i) a Lease

Agreement dated as of December 1, 1990 by and between GMA and Lessee (the

"Lease") pursuant to which GMA leases the Equipment to the Lessee and (ii) an

Administration and Servicing Agreement initially dated as of December 1, 1990

(the "Servicing Agreement"), and subsequently amended, among First Union

National Bank of Georgia, Atlanta, Georgia, as servicer (the "Servicer"), First

Union National Bank of Georgia, as Trustee, GMA and each lessee participating

in the program (including Lessee), pursuant to which Servicer services the

collection and transmittal of payment for the Leases for GMA and transfers the

moneys collected pursuant to the Servicing Agreement; and





WHEREAS, certificates of participation ("Certificates") have been

issued pursuant to a Trust Agreement dated as of December 1, 1990, by and

between First Union National Bank of Georgia, as trustee ("Trustee"), and GMA

evidencing undivided interests in the Lease payments; and





WHEREAS, in connection with the issuance of the Certificates and the

creation of the Program, (i) Municipal Bond Investors Assurance Corporation

(the "Credit Facility Issuer") issued its financial guaranty insurance policy

(the"Policy") and entered into the Reimbursement and Indemnity Agreement by and

between the Credit Facility Issuer, the Trustee, the Servicer and GMA (the

"Credit Facility Reimbursement Agreement"); (ii) Wachovia Bank ("Bank"), has

agreed to purchase Certificates tendered pursuant to tender rights under the

Trust Agreement in accordance with the terms of a Standby Purchase Agreement

dated as of December 1, 1990, and subsequently amended by and among the Trust,

GMA, the Bank, the Servicer and the Tender Agent (the "Standby Purchase

Agreement"); (iii) Chemical Bank serves as tender agent (the "Tender Agent")

pursuant to a tender agent agreement dated as of December 1, 1990, and

subsequently amended, by and among the GMA, the Trust, the Servicer, and the

Tender Agent (the "Tender Agent Agreement"); (iv) BT Securities Corporation and

at such time as specified in the Trust Agreement, Chemical Securities, Inc.,

will serve as remarketing agents (referred to collectively hereafter as the

"Remarketing Agent"), pursuant to a remarketing agreement dated as of December

1, 1990 by and among the Remarketing Agent, the GMA, the Tender Agent, the

Trustee and the Servicer (the "Remarketing Agreement"); and





WHEREAS, pursuant to the Lease Agreement, Lessee is required to

appropriate annually the Minimum Annual Appropriated Amount set forth on

Schedule A hereof; and





WHEREAS, in order to give effect to, and comply with, the foregoing

agreements and instruments, and in order to authorize payment of its

obligations incurred thereunder (collectively, the "Program Obligations"),

either (i) the Lessee has available to satisfy Program Obligations uncommitted

and unappropriated funds in its current operating budget in an amount not less

than the Minimum Annual Appropriated Amount as set forth in Schedule A or (ii)

the Lessee must amend its current operating budget in accordance with Title 36,

Chapter 36-81-5 of the Official Code of Georgia Annotated (the "Code") to

authorize the payment of the Program Obligations; and





WHEREAS, if required, in order to amend its current operating budget,

the Mayor and Council of Lessee have heretofore taken the following actions,

all in accordance with Title 36, Chapter 81 of the Code; (i) through the

Lessee's budget officer, prepared a proposed amended budget providing for

payment of Lessee's Program Obligations in accordance with the requirements of

Code Section 36-81-5(b) (the "Amended Budget", a copy of which is attached

hereto as Schedule B) which was previously submitted to the Mayor and Council

of the Lessee, (ii) at the time of receipt of the Amended Budget from the

Lessee's budget officer, placed a copy of the Amended Budget in a public place

in the Lessee, which place is convenient to the resident's of the Lessee, (iii)

published a notice in the official organ of the Lessee advising residents of

the Lessee that the Amended Budget is available for inspection; (iv) conducted

a public hearing on the Amended Budget at least one week prior to the date

hereof; and (v) taken all other action necessary to effect the foregoing;







NOW, THEREFORE, BE IT RESOLVED, as follows:



Section I. Confirmation and Reaffirmance of Program Obligations. The

Lessee does hereby confirm, ratify and reaffirm all the Program Obligations,

including, expressly, the Lease and the Servicing Agreement.





Section II. Appropriation: Amendment of Budget. In order to give

effect to, comply with, and assume the liabilities associated with, the

foregoing approvals, and authorize the expenditure of the amounts required to

be expended pursuant to the Lease Agreement and the Servicing Agreement the

Lessee does hereby adopt, ratify and approve the Amended Budget attached hereto

as Schedule B or commit those portions of the current budget set forth on

Schedule B to the payment of the Program Obligations and does hereby

appropriate and commit moneys in an amount not less than the Minimum Annual

Appropriated Amount to payment of Program Obligations for the current calendar

year.





Section III. No Personal Liability. No stipulation, obligation or

agreement herein contained or contained in the Lease, the Trust Agreement, the

Servicing Agreement, the Standby Purchase Agreement, The Tender Agent

Agreement, the Remarketing Agreement, or the Credit Facility Reimbursement

Agreement shall be deemed to be a stipulation, obligation or agreement of any

councilman, chairman, officer, agent or employee of the Lessee in his or her

individual capacity, and no such councilmember, chairman, officer, agent or

employee of the Lessee shall be personally liable on the Certificates or be

subject to personal liability or accountability by reason of the issuance

thereof.





Section IV. General Authority. From and after the execution and

delivery of the documents hereinabove authorized, the Mayor and the Clerk are

hereby authorized, empowered and directed to do all such acts and things and to

execute all such documents as may be necessary to carry out and comply with the

provisions of said documents as executed and are further authorized to take any

and all further actions and execute and deliver any and all other documents and

certificates as may be necessary or desirable to document compliance with the

Code.





Section V. Actions Approved and Confirmed. All acts and doings of the

officers of the Lessee which are in conformity with the purpose and intents of

this Resolution shall be, and the same hereby are, in all respects approved and

confirmed.





Section VI. Severability of Invalid Provisions. If any one or more of

the agreements or provisions herein shall be held contrary to any express

provision of law or contrary to the policy of express law, though no expressly

prohibited, or against public policy, or shall for any reason whatsoever be

held invalid, then such covenants, agreements or provisions shall be null and

void and shall be deemed separable from the remaining agreements and provisions

and shall in no way affect the validity of any of the other agreements and

provisions hereof or of the Certificates authorized hereunder.



Section VII. Repealing Clause. All Resolutions or parts thereof the

Columbus Consolidated Government in conflict with the provisions herein

contained are, to the extend of such conflict, hereby superseded and repealed.





Section VIII. Effective Date. This Resolution shall take effect

immediately upon its adoption.







Introduced at a regular meeting of the Council of Columbus, Georgia,

held on the ______ day of ___________, 2002, and adopted at said meeting by the

affirmative vote of _____ members of said Council.





Councilor Allen voting _________.



Councilor Henderson voting _________.



Councilor Hunter voting _________.



Councilor McDaniel voting _________.



Councilor Poydasheff voting _________.



Councilor Rodgers voting _________.



Councilor Smith voting _________.



Councilor Suber voting _________.



Councilor Turner Pugh voting _________.



Councilor Woodson voting _________.







__________________________________ __________________________

Tiny B. Washington, Clerk of Council Bobby G. Peters, Mayor



Schedule A





1. Columbus Consolidated Government's pro-rata share of the principal amount of

the Georgia Municipal Association Pool is $4,453,164.



2. Columbus Consolidated Government's Minimum Annual Appropriated Amount for

the year ending December 31, 2002 is $1,012,118.09 to wit:







Interest and Administrative Expenses @ 11.25% $ 102,349.02



Basic Lease Payments due November 30, 2002 $ 909,769.07



Total $1,012,118.09





CLERK?S CERTIFICATE





The undersigned Clerk of the Columbus Consolidated Government, DOES

HEREBY CERTIFY that the foregoing pages of typewritten matter pertaining to the

issuance of Certificates of Participation in the Georgia Municipal Association

Pool in the aggregate principal amount of $127,635,000, constitute a true and

correct copy of the Resolution adopted on February 12, 2002, by the City

Council on behalf of Lessee in a meeting duly called and assembled, which was

open to the public, and that the original of said Resolution appears of record

in the Minute Book of the Lessee which is in the undersigned?s custody and

control.



WITNESS my hand and the official seal of the Lessee, this _____ day of

__________________ 2002.











_______________________________________________

Clerk of Council, Columbus Consolidated Government







[City Seal]

No attachments for this document.