Agenda Item # 1
Columbus Consolidated Government
Council Meeting
January 12, 2010
Agenda Report # 457
TO: Mayor and Councilors
SUBJECT: Columbus Building Authority Lease Revenue Bonds, Series 2010
INITIATED BY: Finance Department
_____________________________________________________________________________
Recommendation: Approve a resolution approving action taken by the Columbus
Building Authority (CBA) to issue Lease Revenue Bonds in the accordance with
Resolution No. 343-09, approve the Preliminary Official Statement (POS),
authorize the execution of the Final Official Statement (OS), authorize the
Finance Director to approve the best bid for the bonds, confirm the transfer of
property to the CBA, and authorizing the Mayor, City Manager, Finance Director,
City Attorney, and other officials to take such further actions as is necessary
to provide for the issuance and delivery of the bonds and the refunding bonds.
Background: The 2009 Other Local Option Sales Tax was effective January 1,
2009. The Council of Columbus, Georgia has expressed their intent to utilize
70% of the new LOST revenue for enhancements to Public Safety and 30% of the
LOST revenue for roads and infrastructure improvements pursuant to Resolution
No. 226-08. Projects were identified to be funded from this LOST. The list of
projects was presented to the Council of Columbus on September 28, 2009.
Resolution No 343-09 authorized the issuance of $131,500,000 in CBA bonds. The
funding source for the lease payments of these Columbus Building Authority
Lease Revenue Bonds will be the 2009 Other Local Option Sales Tax. The Series
2010 CBA bonds totals $97,330,000 which includes the 2010 projects listed plus
the refunding of the Series 1997A CBA Lease Revenue Bonds.
2010 PROJECTS
Fire / EMS Station $ 2,000,000
Road Projects 23,600,000
Flood Abatement / Stormwater 23,200,000
City Service Center 9,500,000
Parking Garage 9,500,000
Natatorium 7,500,000
Recycling / Sustainability Center 8,500,000
Ice Rink 7,700,000
TOTAL $ 91,500,000
FUTURE BOND PROJECTS
Road Projects $ 7,500,000
Correctional Facilities 31,000,000
Cooper Creek Tennis Center 1,500,000
TOTAL $ 40,000,000
Analysis: The Preliminary Official Statement (POS) have been completed and
published. The review process with the rating agencies has been completed.
Moody?s has upgraded our bond rating to Aa2 from Aa3. The rating from Standard
& Poor?s has not been received. The Notice of Sale has been completed and
published on December 29, 2009. The bids will be received on January 12,
2010. The bond validation process and the Official Statement (OS) will take
place over the next 2 weeks with the anticipated closing date on the bonds to
be January 28, 2010.
Alternatives: The alternative to funding these projects through the issuance of
Columbus Building Authority Lease Revenue Bonds is pay-as-you-go. By utilizing
the pay-as-you-go method, the City would not be able to complete these projects
in a short period of time or take advantage of the current favorable
construction market.
Financial Considerations: The estimated annual revenue from the 2009 Other
Local Option Sales Tax for FY2010 is $28,800,000; $7,800,000 reserved for the
2011 rollback requirement, $14,700,000 allocated to Public Safety, and
$6,300,000 allocated to Infrastructure/Roads. After the rollback requirement
is met, future revenue allocations beginning in FY2012 is estimated to be $20.6
million for Public Safety and $8.8 million to Infrastructure/Roads. The annual
lease payments (debt service requirement) for the $131,500,000 is estimated to
be $2,310,000 from the Public Safety allocation and $6,895,000 from the
Infrastructure/Roads allocation. The Refunding of the 1997A Columbus Building
Authority Lease Revenue Bonds is anticipated to save approximately $400,000 to
$500,000 in the remaining debt service payments. The 1997A Bonds mature April
1, 2017.
Legal Considerations: Resolution requires council approval.
Recommendations/Actions: Approve a resolution approving action taken by the
Columbus Building Authority (CBA) to issue Lease Revenue Bonds in the
accordance with Resolution No. 343-09, approve the Preliminary Official
Statement (POS), authorize the execution of the Final Official Statement (OS),
authorize the Finance Director to approve the best bid for the bonds, confirm
the transfer of property to the CBA, and authorizing the Mayor, City Manager,
Finance Director, City Attorney, and other officials to take such further
actions as is necessary to provide for the issuance and delivery of the bonds
and the refunding bonds.
A RESOLUTION
NO. _______
A RESOLUTION OF THE COUNCIL OF COLUMBUS, GEORGIA (THE ?COUNCIL?), APPROVING
ACTIONS TAKEN BY THE COLUMBUS BUILDING AUTHORITY (THE ?AUTHORITY?) TO ISSUE ITS
LEASE REVENUE BONDS IN ACCORDANCE WITH THE REQUEST OF THE COUNCIL CONTAINED IN
RESOLUTION NO. 343-09; TO PROVIDE THAT THE FINANCE DIRECTOR OF COLUMBUS SHALL
APPROVE THE BEST BIDS FOR THE BONDS; TO AUTHORIZE ACTIONS RELATING TO
VALIDATION OF THE BONDS; TO APPROVE A PRELIMINARY OFFICIAL STATEMENT AND TO
AUTHORIZE THE EXECUTION OF A FINAL OFFICIAL STATEMENT CONTAINING INFORMATION ON
THE GOVERNMENTAL AND FINANCIAL AFFAIRS OF COLUMBUS; TO CONFIRM AUTHORIZATION
FOR THE MAYOR TO TRANSFER PROPERTY TO THE AUTHORITY AND TO EXECUTE THE LEASE;
TO REAFFIRM THE PROVISIONS OF RESOLUTION 343-09 WHICH ARE NOT IN CONFLICT
HEREWITH; TO AUTHORIZE THE MAYOR AND OTHER OFFICIALS OF COLUMBUS TO TAKE SUCH
FURTHER ACTIONS AS ARE NECESSARY TO PROVIDE FOR THE ISSUANCE AND DELIVERY OF
THE BONDS; AND FOR OTHER PURPOSES.
WHEREAS, the Council as the governing body for Columbus, Georgia
(?Columbus?), requested, by Resolution No. 343-09, adopted on October 13,
2009, that the Authority issue revenue bonds to provide funds to acquire,
construct, install, and develop certain projects and facilities to be used for
governmental, proprietary, and administrative functions of Columbus, including
specifically (i) a new fire station (the ?Fire Station/EMS Project?) (ii)
construction, reconstruction and resurfacing of local roads, streets and/or
bridges (the ?Road Projects?), (iii) enhancements to stormwater infrastructure
(the ?Stormwater Enhancements/Flood Abatement Projects?), (iv) a city service
center (the ?City Service Center Project?), (v) a city service center parking
garage to be used by the general public to support the city service center and
the natatorium (the ?City Service Center Parking Garage Project?), (vi) a
natatorium swimming facility (the ?Natatorium Project?), (vii) a recycling and
environmental sustainability center (the ?Recycling/Sustainability Center
Project?), and (viii) an ice rink (the ?Ice Rink Project?) (collectively, the
?2010 Projects?); and
WHEREAS, Resolution No. 343-09 also requested that the Authority issue
revenue bonds to currently refund and redeem all outstanding Columbus Building
Authority Lease Revenue Bonds, Series 1997A (the ?Series 1997A Bonds?); and
WHEREAS, Resolution No. 343-09 requested that the Authority issue
revenue bonds of approximately $131,500,000 to fund the 2010 Projects, the
refunding of the Series 1997A Bonds, and three additional projects, (i)
construction, reconstruction, and resurfacing of local roads, streets and/or
bridges, in addition to the Roads Projects, (ii) a Correctional Facilities
Expansion and (iii) the Cooper Creek Tennis Center Expansion, which Columbus
has determined not to finance at the present time, but which Columbus may
request that the Authority finance with future revenue bonds; and
WHEREAS, the Authority and Columbus have determined that the most
feasible manner of acquiring, constructing, and equipping the 2010 Projects and
financing the refunding of the Series 1997A Bonds is to issue approximately
$97,330,000 in aggregate principal amount of Columbus Building Authority Lease
Revenue Bonds in two series, currently designated as the Columbus Building
Authority Capital Improvement and Refunding Lease Revenue Bonds, Series 2010A
(the ?Series 2010A Bonds?) and the Columbus Building Authority Capital
Improvement Lease Revenue Bonds, Taxable-Build America Bonds?Direct Payment,
Series 2010B (the ?Series 2010B Bonds?) (the Series 2010A Bonds and the Series
2010B Bonds being collectively referred to as the ?Bonds?); and
WHEREAS, payment of the Bonds and any bonds issued on a parity
therewith and the interest thereon shall be secured by a first and prior pledge
of and charge or lien on the Basic Rent to be paid henceforth by Columbus for
the use of the 2010 Projects and continued use of the projects financed with
proceeds from the Series 1997A Bonds pursuant to the provisions of a lease
contract to be entered into as of the date of issuance of the Bonds (the ?Lease
?), a draft of which is on file with Columbus; and
WHEREAS, the Lease shall provide for the payment by Columbus, as
Lessee, to the Authority or to its assignee for the account of the Authority,
of the amounts to be set forth in the Lease sufficient to pay the principal of
and interest due on the Bonds authorized as the same shall become due and
payable; and
WHEREAS, in order to market and sell the Bonds, it has been necessary
to cause to be prepared a preliminary official statement (the ?Preliminary
Official Statement?) for the Bonds, and the Authority and Columbus have caused
to be published in The Bond Buyer, a financial journal of general circulation
published daily in the city and state of New York, a summary notice of sale and
have caused to be distributed to potential bidders an official notice of sale
(the ?Notice of Sale?) in which bidders have been requested to submit bids to
the Authority on January 12, 2010 for purchase of the Bonds; and
WHEREAS, the Authority adopted a resolution on December 16, 2009,
authorizing its officers, attorneys, and agents to (i) print and distribute the
Preliminary Official Statement and to ?deem final? the Preliminary Official
Statement within the meaning of Securities Exchange Act Rule 15c2-12, (ii)
prepare and publish the appropriate notices of sale and the award and sale of
the Bonds to the bidder(s) submitting the highest and best bids with the lowest
true interest cost to the Authority, (iii) prepare a bond resolution for
adoption by the Authority to include the form of the Lease, and (iv) to take
such further actions as may be necessary or desirable in accordance with the
intents and purposes of said resolution adopted on December 16, 2009; and
WHEREAS, the Authority has scheduled a meeting on January 13, 2010, to
adopt the bond resolution (the ?Bond Resolution?), which Bond Resolution,
together with the Lease, will be placed in final form after the receipt of
bids; and
WHEREAS, upon adoption of the Bond Resolution, notice will be given to
the District Attorney of the Chattahoochee Judicial Circuit seeking the
validation of the Bonds and as security therefore, the obligations of Columbus
under the provisions of the Lease; and
WHEREAS, it is proper that the Council approve the actions of the
Authority in accordance with the requests of the Council; and
WHEREAS, the Council anticipates that the Lease in final form to be
executed between Columbus and the Authority will be submitted to the Council
for review at its regular meeting scheduled for January 26, 2010.
NOW, THEREFORE, BE IT RESOLVED by the Council as follows:
The Council desires that the Authority proceed with financing for the 2010
Projects through the issuance of the Bonds and hereby approves the actions
taken by the Authority and officials of Columbus, as described in the Preamble
to this resolution.
2. The Finance Director is authorized to receive, approve, and award
the sale of the Bonds to the bidders submitting the best bids therefore, as
contemplated in the Notice of Sale.
3. The Council requests that the Authority give notice to the District
Attorney of the Chattahoochee Judicial Circuit and seek validation of the Bonds
at the earliest possible time in accordance with the laws of the State of
Georgia. The City Attorney is authorized and directed to cause to be prepared
an answer to be filed in said validation proceedings requesting that the Bonds
and the security therefore be declared valid in all respects, and the Mayor or
City Manager is authorized to sign a verification to be attached to said answer.
4. The Council ratifies the actions heretofore taken by the Finance
Director to ?deem final? the Preliminary Official Statement within the meaning
of Securities Exchange Act Rule 15c2-12. The Preliminary Official Statement
shall be used as the basis for preparing an Official Statement (the ?Official
Statement?) after bids are received. The Mayor is authorized to execute the
final Official Statement on behalf of Columbus, and such other officers and
agents of Columbus are authorized to take such actions and make such
certifications as may be required relating to the issuance and delivery of the
Bonds.
5. The authorizations contained in Resolution 343-09 for the Mayor to
execute the Lease and such deeds and other documents described in the
Resolution 343-09 are hereby confirmed.
6. The Mayor, City Manager, Finance Director, City Attorney and such
other officers or agents of Columbus as may be required are directed to take
such actions as are necessary to provide security for payment of the Bonds and
to fulfill the obligations of Columbus pursuant to the Lease, as the same shall
be delivered, supplemented, or amended, and to take such other actions as may
be required in accordance with the intents and purposes of this resolution.
7. All provisions of Resolution No. 343-09, which are not in conflict
herewith, are hereby restated, ratified, and confirmed, as fully as if set
forth herein verbatim.
Introduced at a regular meeting of the Council of Columbus, Georgia, held
January 12, 2010, and adopted at said meeting by the affirmative vote of
members of said Council.
Councilor Barnes voting _____
Councilor Davis voting _____
Councilor Hunter voting _____
Councilor Pugh voting _____
Councilor Baker voting _____
Councilor Allen voting _____
Councilor Woodson voting _____
Councilor McDaniel voting _____
Councilor Anthony voting _____
Councilor Henderson voting _____
___________________________ ___________________________
Tiny B. Washington, Clerk of Council Jim Wetherington, Mayor
CERTIFICATE OF CLERK OF COUNCIL
I, the undersigned Clerk of Council of Columbus, Georgia, keeper of the
records and the seal thereof, hereby certify that the foregoing is a true and
correct copy of a resolution of the Council of Columbus, Georgia, adopted
January 12, 2010, a duplicate original of which resolution has been entered in
the official records of Columbus, Georgia, under my supervision and is in my
official possession, custody, and control.
I further certify that the meeting was held in conformity with the
requirements of Title 50, Chapter 14 of the Official Code of Georgia Annotated.
(S E A L) _______________________________
Clerk of Council
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