E OF G NSTITUTI E O S TAT CO RGIA ON GSFIC Fiscal Year 2011 Annual Report Georgia State Financing and Investment Commission Cover photograph: Chattahoochee Technical College's new Canton Campus Georgia State Financing & Investment Commission Table of Contents GSFIC team members, from left, Regional Quality Assurance Manager Rick Dockrey, Senior Contract Compliance Specialist Charles Abney and Project Manager Wes Berry review plans at Kennesaw State University. Commission Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Mission, Vision & Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Construction Division Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 ARRA Stimulus Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Construction Feature Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 State ADA Coordinator's Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Financing and Investment Division Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Strategic Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Pag e 1 Georgia State Financing & Investment Commission Commission Members Governor Nathan Deal Chairman Casey Cagle Lt. Governor Vice-Chairman Russell W. Hinton State Auditor Secretary and Treasurer David Ralston Speaker of the House of Representatives Samuel S. Olens Attorney General Gary W. Black Commissioner, Department of Agriculture Thomas D. Hills State Treasurer Steve Stancil Director, Construction Division Executive Secretary Susan H. Ridley Director, Financing and Investment Division Pag e 2 Georgia State Financing & Investment Commission Introduction The Georgia State Financing and Investment Commission (GSFIC), created by Constitutional Amendment in 1972, is responsible for the proper application of proceeds from general obligation debt and the issuance of all public debt by the State. No agency or authority can incur debt or employ other financial or investment advisory counsel without Commission approval. The Commission consists of the Financing and Investment Division and the Construction Division. The Financing and Investment Division is responsible for the issuance of general obligation bonds, the review of state authority debt financing, and the investment and accounting of all general obligation bond proceeds. Investment earnings support the operations of the Commission and enable the Division to retire state debt prior to maturity. The Division also prepares the State's Debt Management Plan and monitors agency expenditures of bond proceeds for compliance with federal tax regulations. In 2006, the legislature created the Georgia Higher Education Facilities Authority (GHEFA). GHEFA is attached to GSFIC for administration purposes and staffed by the Financing and Investment Division. The Construction Division provides all of the support services for the Commission and is responsible for disbursing bond proceeds and for managing capital outlay projects funded, all or in part, with bond proceeds. The Construction Division also provides the following services for State Agencies: ADA Compliance Assistance Procurement Services Construction Services Mission, Vision & Core Values The Georgia State Financing and Investment Commission core values are dedicated to continuous quality improvement in all of its activities. The GSFIC staff reviewed its Mission and Value Statements in FY2011 and has adopted the following: Mission Building Georgia's future by providing financial and construction management with the highest level of customer service, integrity, fairness and efficiency. Vision To be the State's premier resource for financial and construction management services. Core Values Excellence Leadership Fairness Stewardship Pag e 3 Georgia State Financing & Investment Commission Year-In-Review Core functions of the Georgia State Financing and Investment Commission include the issuance and management of state general obligation debt and state authority debt, and providing construction management services for capital improvement projects. Financing and Investment Division GSFIC, on behalf of the State of Georgia, issued general obligation bonds totaling $653,925,000 during FY2011. Nearly $835 million in revenue bonds were ap- proved by GSFIC and issued by state authorities. Georgia earned AAA credit ratings on its general obligation debt from Moody's, Standard & Poor's and Fitch, as it has every year since 1997. Georgia is one of only eight states with the coveted AAA rating from the three major credit rating agencies - the others are Dela- ware, Iowa, Maryland, Missouri, North Carolina, Utah, and Virginia. The AAA ratings result in lower interest rates for the state and savings to the taxpayers. The State's debt management plan, developed and execut- ed by GSFIC, is a critical component of demonstrating Georgia's conservative fiscal management to the invest- ment community. A major accomplishment for Financing and Invest- ment Division staff during FY2011 was assisting the State Road and Georgia earned AAA Tollway Authority (SRTA) in credit ratings from Moody's, Standard developing a bond issue to refund substantial & Poor's, and Fitch, portions of the SRTA's outstand- as it has every year ing Series 2001 and Series 2003 since 1997. Guaranteed Revenue Bonds. In March 2011, the Commission approved the issuance of $344,420,000 State Road and Tollway Authority State of Georgia (Full Faith and Credit) Guaranteed Revenue Refunding Bonds. The refunding bonds will provide debt service savings of $34,591,019 in FY2011 through FY2020 by lowering the debt service payments from the original debt service schedule of the refunded bonds; present value savings relative to the par amount of the refunded bonds was 8.68 percent. The refunding bonds, with a weighted av- erage life of seven years, were sold via competitive sale; eight bids were received and the winning bid was a true interest cost of 2.57 percent. Construction Division Technology Highlights GSFIC's team of information technology specialists and construction professionals is dedicated to leveraging today's technology to improve the state's construction program. A number of new initiatives were researched and launched during FY2011, all with the goal of improving GSFIC's procedures and processes with the end result enhancing the agency's ability to manage the state's construction projects. Internet Billing System In FY2011, GSFIC began using an internet-based billing system known as GCPay to replace paper-based methods used to review, approve and process construction applications for payments and change orders. The GCPay system allows project teams with multiple approvers throughout the state to exchange construction project information electronically, eliminating paper and reducing postage and delivery time for the approval and billing process. The system allows GSFIC to streamline and reduce processing times while ensuring the accuracy and integrity of the information received. Currently, 21 projects valued in excess of $180 million are utilizing the GCPay system. Forty design and construction professional firms have been trained by GSFIC and are actively using the system. The average payment application processing time was reduced from 20 to 16 days and the change order execution processing time from 45 to 10 days both exceeding the target goals. Consistency in the management of GSFIC projects and processes has increased. In a customer satisfaction survey sent to all industry partners utilizing GCPay, the responses regarding the training and support, features and operations, benefits and overall impression of the system were consistently ranked in the "satisfied" and "very satisfied" categories. Training for all new project teams and further enhancements of the system's functionality continues, including development of modules for the design professional and testing/inspection consultants' invoicing. Pag e 4 Georgia State Financing & Investment Commission Building Information Modeling GSFIC's construction division identified Building Information Modeling (BIM) as an emerging technology that can improve the construction process from early design work through facility operations. BIM covers geometry, spatial relationships, light analysis, geographic information, quantities and properties of building components and can be used to demonstrate the entire building life cycle. The three-dimensional technology provides the potential for a virtual information model to be handed from the design team to the contractor and subcontractors and, at the end of the project, to the owner. The result greatly reduces the information loss that occurs when a new team takes "ownership" of the project, as well as delivering extensive information to owners of complex structures. While the technology is still relatively new and the computer requirements to run the software very demanding, GSFIC is preparing itself for this next generation in construction management. BIM Guidelines were published in FY2011 and a pilot project to be managed with BIM was selected. The classroom building at Southern Crescent Technical College in McDonough is being designed by Lord, Aeck and Sargent, a design firm with experience in building modeling. GSFIC will focus first on the architectural and structural elements of design and construction and then phase in mechanical, electrical and plumbing elements. Phone Technology A team of 28 Contract Compliance Specialists (CCSs) are on job sites throughout Georgia everyday, working with contractors, designers and project managers. It is the responsibility of the CCS to ensure the project meets all specifications and stays on schedule and within budget. To assist this important GSFIC team, all CCSs have been equipped with `virtual offices,' including cell phones, laptops, printers and digital cameras. Remote access allows the CCS to retrieve information from the GSFIC database, project updates and reports. In FY2011, after surveying members of the field staff, GSFIC changed phone services and upgraded devices from cell phones to smart phones. The smart phones have enabled field staff, as well as project managers, to review emails, view technical attachments, photograph and video project progress, as well as utilize the internet for research. Additionally, the GPS functionality of these phones is a valuable tool for traveling staff. In order to offset the cost of this initiative, project management staff went from two devices (desk phone and cell phone) to the single smart phone. Additional savings are realized by the elimination of a separate camera, which is required by the specialists for project documentation. Electronic Payment Program As part of its financial initiatives for the year, GSFIC continued to increase participation of construction vendors - both private contractors and public systems receiving reimbursement - in its electronic payment program. GSFIC established a strategic goal for FY2011 to have at least 40 private contractors receiving payment through Automated Clearinghouse (ACH), an electronic network for paperless financial transactions. ACH transfer is less costly to process than paper check, and ensures more timely payment as well. At year's end, 44 contractors were receiving ACH payment and more than 175 customers had enrolled in ACH, up 22 percent over the previous year. (See table below) Expanded Vision Over the past several years, GSFIC has been moving from a paper to a digital environment. GSFIC staff are required to review documents that can exceed 200 pages and to manage construction pay applications, change orders and reports, as well as review full-sized drawings that are 36 inches by 24 inches when printed. As technology for computer monitors improved and the increased requirement to utilize computers during the review process is greater now than ever, GSFIC determined that larger screens would reduce the need to print these files for review and would improve staff productivity. Total Vendors Enrolled in ACH Checks Processed ACH Processed Total Amount Paid Automated Clearinghouse FY 2010 147 1719 958 $ 838,126,761 FY 2011 % Change 180 22% 1402 -18% 1495 56% $ 939,193,432 12% Pag e 5 Georgia State Financing & Investment Commission GSFIC invested in 27-inch monitors for the project Method. Once approved by the Board of Regents, that management staff and 42-inch touch screen monitors for standard contract will be utilized by both agencies. The the design review staff. Now project managers are able next contract to be standardized is the Construction to open and clearly view multiple documents on the Contract for the Design-Bid-Build Delivery Method. screen. This has reduced the need to print documents, To further reinforce the cooperative effort to standard- improved the speed of reviews and reduced eye fa- ize contracts, GSFIC and the Board of Regents created tigue. To help design reviewers more easily access their a Contracts Alliance Committee to focus on improving oversized drawings, the touch monitors enable them to form contracts. The Contracts Alliance Committee is view the full sized drawings without running a print chaired by representatives from BOR and GSFIC and set. Also, with the touch functionality, the reviewer can consists of members from the construction, architecture move around in the file as well as mark the document up and engineering fields. The Contracts Alliance Commit- for review commentary. tee will advise GSFIC and BOR on contract matters to ensure that contracts fairly meet the needs of both the Financial Update In an effort to ensure more timely spend down of construction funds, GSFIC's accounting division revised its policy for reimbursing agency managed projects. The policy establishes a time frame for submission owner and the industry. The Contracts Alliance Committee also will work closely with the State Construction Manual Editorial Review Board to suggest revisions and updates to the State Construction Manual. of reimbursement requests. GSFIC receives an audit of its operating and Davis Bacon Compliance construction funds each Several GSFIC-man- fiscal year. For FY2010, aged projects received GSFIC's auditors issued federal funding in FY2011, their unqualified opinion resulting in a require- on the financial statements. ment to comply with the This means the financial Davis Bacon regulations. statements were presented The federal compliance fairly, in all material re- requires all tradesmen spects, and did not contain on a construction job to any deficiencies in inter- be paid prevailing wage nal controls or compliance rates issued by the Depart- matters. ment of Labor. GSFIC is utilizing a web-based Labor Contract Standardization Athens Technical College's Elbert County Campus Compliance Management (LCM) function designed to streamline the reporting and In response to construction industry requests, monitoring process of state and federal prevailing-wage GSFIC is working with the Board of Regents to develop laws, including the Davis Bacon Act. The LCM functional- standard form contracts to be used by both agencies. ity collects electronic certified payroll data and automati- GSFIC and the Board of Regents procure and manage cally verifies it against applicable prevailing wage rates. the bulk of Georgia state-funded construction projects. The unique feature of the LCM functionality enables it to Differences in standard contract terms between the two collect certified payroll data directly from the output file agencies have caused confusion for industry partners. from a contractor's payroll system. It also provides web- GSFIC and the Board of Regents have developed, and based reporting forms for those contractors who currently are using, a common Design Professional Contract for may not use an electronic payroll system in-house. This use with the CM/GC Delivery Method. GSFIC has software helps GSFIC ensure contractors are compli- developed a draft standardized Design Professional ant with Davis Bacon regulations and funding is not Contract for use with the Design-Bid-Build Delivery jeopardized. Pag e 6 Georgia State Financing & Investment Commission Human Resources Career Management Institute The Human Resources division completed Phase III College Prep School in Milledgeville also received the of the Career Management Institute, resulting in the se- Award of Excellence in the category of Secondary Edu- lection of a Learning Management System (LMS). This cation. software is an application for the administration, docu- The Petit Science Building also received the 2011 mentation, tracking and reporting of training programs, Build Georgia Award, given by the Georgia Branch of including classroom training, external events and e- Associated General Contractors of America for out- learning programs. The LMS allows GSFIC to centralize standing performance on one of Georgia's most remark- and automate administration of training, identify career able construction projects. paths for each position at GSFIC, and allows employees The Kennesaw State University Health Sciences to use self-service and self-guided services. Implementa- Building also received the Award for Outstanding tion of CMI is slated for FY2012. Achievement from the Georgia Chapter of the Ameri- can Concrete Institute and the Project Leadership Training Roll-out Human Resources implemented a Leadership Training initiative in FY2011. In conjunction with the graduation of six GSFIC managers from Three construction projects were recognized "Best Achievement Award and Best Project Overall Winner Award from the Construction Managers Association of America. Georgia Military College Prep the State of Georgia Leadership Boot Camp, a monthly Leadership Curriculum was implemented. Topics covered included "Documentation for Performance Issues," "Positive Feed- of 2010" winners by Southeast Construction School received the Project Achievement Award from the Construction Managers Association of America. The Southern Polytechnic State University Design Studio II received back and Documentation," "Difficult Discussions: Providing Feedback for Improvement," "Painless Performance magazine. the Gold Award for Design Excellence by the Brick Industry Association and the Engineering Technology Center re- Management" and "Developing and Setting Effective ceived an Award of Excellence from the Georgia Chap- Performance Goals." All supervisors participated in the program, which continues next year. ter of the American Concrete Institute. The Georgia Gwinnett College Library received the Honors Award from the Construction Managers Asso- Employee Development ciation of America. Education and growth for staff included the accomplishment of nationally recognized certifications. Eight members of Project Management earned the Project Management Institute's (PMI) Project Management Professional accreditation and one member of Human Resources earned both the Professional in Human Resources and the Senior Professional in Human Resources certifications. Project Recognition While many employees were recognized for their accomplishments, so were several GSFIC-managed projects. Three construction projects were recognized "Best of 2010" winners by Southeast Construction magazine. Receiving top honors in the category of Best Higher Education/Research Building was Georgia State University's Parker H. Petit Science Center. Receiving an Award of Excellence in the same category was Kennesaw State University Health Sciences Building. Georgia Military Customer Service Exceeding customer expectations when it comes to customer service remains a top priority for GSFIC. During FY2011, the Customer Service Committee launched a new initiative the "E" Award for Excellence in Exceeding Expectations. The committee sponsors quarterly meetings for the entire staff, including those working in the field. The meetings include training opportunities for staff as well as an awards ceremony. Staff members and teams can be nominated by anyone in the organization. Recipients, selected by executive committee, are recognized for outstanding customer service to both internal and external customers. The committee also assisted with several employee engagement projects, including Employee Appreciation Week, the "12 Days of GSFIC" holiday celebration and an "Adopt-a-Family" gift and clothing drive during the holiday season. Pag e 7 Georgia State Financing & Investment Commission Construction Division FY 2011 Project Overview Delivery Method CM/GC Design-Bid-Build Design-Build Project Totals No. Projects 41 71 4 116 Design Contract $ 70,580,041.28 29,320,335.60 1,469,722.54 $ 101,370,099.42 Construction Contract $ 588,605,676.58 203,585,457.72 17,969,158.39 $ 810,160,292.69 Total Budget $ 889,640,991.83 351,231,112.21 29,578,800.33 $ 1,270,450,904.37 Project Phase Planning, Programming, Pre-Design Design Construction Close-out Project Phase Total No. Projects 14 24 25 54 116 Technical College TSeychsntiecaml CoolflegGe eSyosrtegmia 37 GSFIC Managed Projects 9% B o ard o f Regents o f the UniveBrsoitay rdSyostfemRegents of the GUenorigviae, 3r0sity System of Georgia 30 State BoSartdaotef EBduocaatriodn, 8 of Education 8 October 2011 Other 23 Department of Education 8 Department o f Educatio n, 8 9% Geo rgGiaeBourildginigaA utho rit y, Bu10ilding Authority 10 Pag e 8 Georgia State Financing & Investment Commission GSFIC Managed Construction Projects Completed in FY 2011 The CCoonnssttrruuccttiioonnDDivivisiisoionnofcGomeoprlgeitaedSta3t6e FpirnoajencctisnginanFdYI2n0v1e1s,tminecnlutdCionmg ma istsaioten-ocof-mthpel-eatretda3ll6iepdrohjeactlsthinbFuYil2d0i1n1g,, cinlacslsurdoionmg sa asntadtea-uofd-itthoer-iaurmt asl,literadinhienaglthfabciuliitlideisn, gp,ucblaliscsrloibormarsieasn, dcoaluledgietolriiburmarsie, stranindinlgivfeasctoilcitkiefsa,cpiluitbielisc. lTibhreartioetsa,l bcouldleggeet fliobrrtahreiessea3n6dcolimvepslteotcekdfpacroiljieticets.wToastanl ebaurdlyge$t50fo0rmthilelsioen3.6 completed projects was nearly $500 million. Project J-050 Undergraduate Learning Center Georgia Tech Board of Regents J-117 Classroom Building Whitfield Academy Board of Regents DTAE-210 Industrial Training Building Southern Crescent Technical College System of Georgia (TCSG) J-135 Alpharetta Academic Facility Georgia State University Georgia Perimeter College Board of Regents J-131 Library Georgia Gwinnett College Board of Regents GPSTC-006 Burn Building Georgia Public Safety Training Center DTAE-144 Allied Health Building Atlanta Technical College TCSG J-133 Engineering Technology Center Southern Polytechnic State Univ. Board of Regents GAE-015 Livestock and Equine Facility Georgia Fairgrounds Georgia Agricultural Exposition Authority DTAE-204 Canton Campus Building Chattahoochee Technical College TCSG Description Clough Commons is a student-oriented facility outside the traditional classroom where students can take advantage of hands-on, collaborative, and technologically enhanced teaching and learning opportunities. Educational building that houses classrooms, laboratory space and faculty offices. Industrial Training facility for the Flint River campus of Southern Crescent Technical College housing programs in automotive, electronics and HVAC technologies. Academic building with classrooms, instructional labs, offices and library space. Library and Learning Center with a capacity for 300,000 volumes. The facility houses the Academic Enhancement Center, the Heritage Lecture Room and Center for Teaching Excellence. State of the art Burn Building for public safety training classes, including structural fire control, smoke diver, interior search and rescue and basic firefighter. Allied Health Building with classrooms and supporting ancillary spaces. The center is home to both the engineering and architectural programs at the university. Expansion of the existing livestock and equine facility to include a security office building, security booth, ticket booth, restroom building, conditioned arena, practice ring and covered walkway. The new campus offers courses in adult education, medical assisting, respiratory technician training, marketing, business and machine tool technology. Size 220,000 sq ft 18,350 sq ft 31,702 sq ft 44,989 sq ft 90,883 sq ft 4600 sq ft 70,341 sq ft 137,121 sq ft n/a 62,838 sq ft Cost $85.327M $4.200M $6.288M $12.700M $28.450M $1.240M $15.539M $39.995M $8.720M $14.495M PPaaggee 99 Georgia State Financing & Investment Commission Project Description Size DTAE-213A Career Academy West Central Technical College TCSG Construction of a Career Academy addition and modification. 8085 sq ft GDC-082 Headquarters Campus Department of Corrections Renovation of the historic Tift College Campus to serve as headquarters for the Department of Corrections. 254,000 sq ft TCSG-234 Industrial Technology Building Athens Technical College TCSG Classrooms and lab spaces for existing and new technical and industrial programs of study, including commercial truck driving, electrical construction, maintenance and industrial systems technology. 26,500 sq ft GBA-173 Structural repairs and to 90 Central Parking n/a Parking Deck Renovations Deck, which extends its useful life by Georgia Building Authority approximately 20 years. J-139 Nursing/Health Building Gordon College Board of Regents Nursing and Allied Health Sciences Building is designed to function much like a teaching hospital. 55,000 sq ft DTAE-205 Academic Building Albany Technical College TCSG The new Logistics Education Center includes classrooms for distribution and materials management training as well as a state-of-the-art culinary arts lab, student center and library. 41,878 sq ft DOL-021 Career Center Roosevelt Warm Springs Inst. Department of Labor New Career Center and renovation of Georgia Hall in Warm Springs. 5853 sq ft TCSG-231 Library Renovation Atlanta Technical College TCSG Renovation of the Atlanta Building, formerly the Georgia Public Broadcasting Television Building, to expand library facilities. 56,090 sq ft TCSG-237 Automotive Technology Building Southern Technical College TCSG Automotive Technology Center and a career academy for four local boards of education. The career academy learning spaces consist of classrooms, offices and labs for cosmetology, IT, welding and health sciences. 35,200 sq ft J-153 Library Renovation University of West Georgia Board of Regents The renovation of the historic Ingram Library is a tribute to late Speaker of the House Tom Murphy. On the ground floor, the renovation includes a re-creation of Speaker Murphy's House office and interpretive exhibits. 101,500 sq ft GBA-171 Installation of occupancy sensors, light fixtures, n/a Energy Conservation re-lamping, installation of variable frequency Capitol Hill drives, domestic water decentralization, Georgia Building Authority optimization and re-commissioning and chiller plant improvements. DTAE-111 Classroom Building Northwestern Technical College TCSG Classroom and lab space for new and existing programs, as well as a large multipurpose conference facility for industry-related training classes. 46,300 sq ft GDA-025 Fuel Oil Laboratory Tifton Department of Agriculture Renovation of and addition to the existing Agricultural Laboratories facility. The addition houses a seed lab, new chemistry labs, disaster recovery/business continuity/IT, common spaces and multi-purpose areas. 78,439 sq ft Cost $1.110M $46.300M $4.395M $2.870M $14.460M $7.595M $1.198M $4.469M $6.778M $8.187M $5.400M $11.679M $23.600M PPaaggee 1100 Georgia State Financing & Investment Commission Project DOL-019 Residence Hall and Training Ctr. Warm Springs Vocational Rehabilitation Unit Department of Labor J-143 Health Sciences Building Coastal College of Georgia Board of Regents DTAE-223A Student Enrichment Center Savannah Technical College TCSG DTAE-201 Health Sciences Center Columbus Technical College TCSG J-126 Health Sciences Complex Kennesaw State University Board of Regents DHR-139 Emergency Operations Center Department of Human Resources DTAE-149 Educational Facility Augusta Technical College TCSG GPL-034 Library Jeff Davis County Georgia Public Library DTAE-143 Crisp Co. Campus Expansion TCSG SBE-015 Renovations Georgia Academy for the Blind Department of Education SBE-012C Mechanical Renovations School for the Deaf Department of Education SBE-020A Roofing Georgia School for the Deaf Deparment of Education GAE-15A/16A Storm Drainage Georgia Fairgrounds Georgia Agricultural Exposition Authority Description Living and learning center that features 175 beds and 15,000 square feet of area of learning and support spaces. Three-story health science building housing the nursing program. Single-story academic center including classroom and administrative support space. Located next to the existing school campus, the new building houses classrooms, laboratories and administrative facilities. The WellStar Health Science Building houses the nursing education program, labs, classrooms and an auditorium. Provide emergency power and HVAC for emergency generator for the DHR headquarters in Atlanta. Classrooms, technical teaching labs and administrative space at the Columbia County Center. Single-story library. New wing with Quick Start labs, classrooms and a culinary arts facility. Replacement of campus fire alarm systems, installation of a campus wide communications loop and improvements to cottages and the Hendricks educational building. Replace fan coil units and kitchen exhaust fans. Re-roof three buildings at the Cave Spring campus. Improvements to stormwater drainage and the facility retention pond. Size 72,760 sq ft 48,408 sq ft 16,007 sq ft 78,263 sq ft 196,000 sq ft 588 sq ft 26,665 sq ft 9695 sq ft 23,915 sq ft n\a n\a n\a n\a Cost $20.568M $15.800M $3.405M $22.700M $55.600M $568K $5.500M $1.345M $4.376M $1.852M $744K $1.560M $228K PPaaggee 1111 Georgia State Financing & Investment Commission ARRA Stimulus Projects Aspecial task group within the GSFIC Construction Services Division was created to provide project administration services for over 50 energy efficiency projects in the State Facilities Retrofit Program. The Georgia Environmental Finance Authority (GEFA) received more than $63 million in federal grants for the program. GSFIC's ARRA Project Management team is managing projects valued at more than $36.4 million for 15 different state agencies. The remaining 50 projects are assigned to the Board of Regents (BOR). The energy efficiency projects for state facilities include lighting system retrofits, HVAC system upgrades, replacement of inefficient chillers and boilers, advanced control systems, utility sub-metering and building retro-commissioning (a form of "tune up" of older systems). These projects, along with the BOR projects, are estimated to save the state approximately $15.1 million a year in avoided energy costs, resulting in a projected four-year payback on the investment. The projects represent an energy savings of 976,692 million BTUs, which is equivalent to the amount of energy consumed by approximately 4,544 housing units in one year. GSFIC assigned the team of project managers to the special task force in FY2010. The projects were programmed, designed and construction/installation contracts awarded during FY2011. A number of the projects are retro-commissioning studies, which require identification of still further energy projects to construct after the studies conclude. Work is being performed at over 200 individual facility sites across the state. All construction and installation work is scheduled to be completed by December 31, 2011. Following construction and installation, there will be a brief period of measurement and verification to document the performance. Energy conservation project for the Georgia Ports Authority Some of the more challenging projects in this program include: An $8 million project for Georgia Department of Corrections (DOC) requires installation of utility metering at all state prisons. The information is then communicated back to an Energy Management System at DOC's Headquarters in Forsyth, Ga. The metering project is designed to provide valuable data to DOC to identify future energy projects and to better manage energy budgets. Chiller Optimization Projects for the Georgia Building Authority and the Georgia Bureau of Investigation involve installation of sensors, valves and other devices in the HVAC systems to then read back to a computer program to increase energy efficiency of the chillers. A $2.5 million project for the Georgia World Congress Center Authority includes retrofitting the main exhibition hall lighting and providing enhanced control systems. A $1.5 million project for the Georgia Ports Authority will improve its lighting and control systems. The Department of Natural Resources received $1.3 million for weatherization and energy improvements to state parks and recreational sites. $2.8 million was awarded to the Georgia Building Authority for lighting retro-fit projects. There are numerous smaller lighting retro-fit and retro-commissioning projects at facilities for Department of Juvenile Justice, Technical College System of Georgia, and other state agencies. The GSFIC ARRA Project Team is proud of its accomplishments, including meeting stringent Federal and State requirements and constant monitoring and review by Federal inspectors. A report by the Federal Department of Energy Inspector in May reported: "The Grantee has implemented an exceptional project management structure for the projects under the State Facilities Retrofit market title. It was explained during the meeting with officials that a full-fledged construction project management methodology is being implemented along with a rigorous project inspection regime. This serves as a model of how to implement major retrofit projects." - Jose Benitez, U.S. Department of Energy The GSFIC interagency agreement with GEFA for project administration of these grants will conclude on March 31, 2012. Pag e 1 2 Georgia State Financing & Investment Commission Historic College Now Serving State After four years of research, planning, infrastructure upgrades and a lot of hard work, the doors of the State Offices South at Tift College opened in Forsyth in FY2011. The new State Offices South at Tift College in Forsyth houses the Department of Corrections Tift College, a once dormant 40-acre campus, now serves as headquarters for the Department of Corrections (DOC). It also is home to the Georgia Corrections Academy, which provides training for the state's probation and correctional officers, as well as staff development training for all non-security staff, including counselors, food services and administrative. The massive renovation and adaptive reuse project, encompassing 225,000-square-feet, began in 2006 and included 13 buildings. The project was a collaboration with Lord, Aeck & Sargent serving as the architects, Gilbane Building Co. managing the onsite construction, DOC providing an inmate work force and GSFIC managing the project on behalf of the state. "It would not have been possible to do this project without the labor force that the Department of Corrections had," said DOC Commissioner Brian Owens. The inmate work force independently renovated more than 50 percent of the site's gross square feet and built much of the furniture for the new headquarters. "Moving our headquarters to Forsyth will position the Department to better protect the citizens of Georgia by effectively managing offenders," said Commissioner Owens. Because the majority of facilities are located south of the Metro Atlanta area, the DOC will gain efficiencies through consolidation and reduced travel time and costs. The $46 million project, funded by the Georgia General Assembly, not only provided DOC with a more centrally located headquarters, but also preserved a former college campus with deep roots in Georgia. Located 65 miles south of Atlanta, the Forsyth Female Collegiate Institute was founded in 1849 as a private liberal arts women's college. Better known as Tift College, the institution merged with Mercer University in 1986 and was left vacant. The State of Georgia acquired the property in 2000. Preserving and enhancing the historic character of the campus, while making it functional and practical as an office and training facility, was a top priority for the architects. No buildings were demolished during the renovation. The oldest building, Ponder Hall, dates back to 1883 and now serves as open office space for the agency. DOC is the fifth largest prison system in the United States and is responsible for supervising nearly 60,000 state prisoners and over 150,000 probationers. It is the largest law enforcement agency in the state with approximately 13,000 employees. Pag e 1 3 Georgia State Financing & Investment Commission Chattahoochee Technical College Builds Canton Campus Almost two years after ground was broken on what would become the eighth campus for Georgia's largest technical college, a huge crowd gathered to see the doors officially open on Chattahoochee Technical College's Canton Campus in April. The celebration, which was attended by local and state elected officials, community leaders, administrators, faculty, staff and students, was the official kickoff for the college's newest campus. An aerial view of construction of the new Canton Campus "We are so proud of this building and what it represents to Chattahoochee Technical College and the Cherokee County community," CTC President Dr. Sanford Chandler said. "Our goal now is to see the seats in every classroom filled with students working toward their educational and career goals. We hope to see the campus develop into a center for workforce development and training for the many companies and industries here in Canton and the surrounding communities." The 62,500-square-foot building took 16 months to complete after ground was initially broken in 2008. At a total cost of nearly $12 million, the campus is now fully operational with more than 500 students enrolling during its first full quarter. More than 64 percent of those students are attending class close to home, as they are Cherokee County residents. In addition to traditional classroom space, the new campus houses a library, four computer labs, medical and science labs, a bookstore, student center and tiered lecture hall. Faculty and staff offices are also located in the new facility, including a business office and a student/financial aid center. Initial offerings for the campus include English, sociology, math, history, biology and psychology. Ultimately, course offerings will include HVAC, drafting technology and select classes in accounting, business administrative technology, management, supervisory development and marketing management. "This beautiful new Canton Campus building is another important step in the growth of Chattahoochee Technical College and its mission of providing exceptional workforce development programs throughout its service delivery area," said Technical College System of Georgia Commissioner Ron Jackson. "The college worked closely with government and business leaders in Canton and Cherokee County who were highly committed to making this facility available to the citizens of their community. Now, local students will enjoy easy access to the world-class technical education programs and outstanding new career opportunities that are offered by the largest technical college in Georgia." The building was designed by BRPH, Inc. and the construction professional was Brasfield & Gorrie. Pag e 1 4 Georgia State Financing & Investment Commission State ADA Coordinator's Office The State ADA Coordinator's Office provides comprehensive educational and technical support for state agencies so that those programs, services and activities operated by the State of Georgia are usable and accessible to everyone, to the greatest extent feasible. The office serves as a technical resource to state agencies for the Americans with Disabilities Act (ADA); operates the Statewide ADA Facility Improvements Program; conducts general and customized training on ADA topics for state agencies; and increases the visibility of the ADA to help citizens understand the spirit and the letter of the law. Outreach During FY2011 the 20th Anniversary of the Americans with Disabilities Act - the Coordinator's Office was very proactive in partnering with other agencies and organizations to train, educate and provide resources to state agencies and the public. The ADA Coordinator's Office, as a member of the Georgia Emergency Preparedness Coalition for Individuals with Disabilities and Older Adults, was interviewed by the Georgia Radio Reading Service, the state's only radio reading service. Its mission is to improve the quality of life for every Georgian who is blind, visually-impaired or has difficulty with access to the printed word. The halfhour segment "At Your Service", which aired in January, highlighted the ADA Coordinator's Office and the services it provides. The coalition also produced public service announcements featuring emergency preparedness tips and information for individuals with disabilities. Two quarterly electronic newsletters also debuted in FY2011. Published by the State ADA Coordinator's Office, the newsletters "Human Resources ADA Update" and "Georgia ADA Update" provide resources and information to human resources professionals and ADA coordinators who work for the State of Georgia. Both the radio broadcasts and the latest newsletters are available on the ADA Coordinator's Website found at www.ada.ga.gov. Facilities Improvement Program The State ADA Coordinator's Office operates the Statewide ADA Facilities Improvement Program. This program was established to ensure that state-owned facilities meet the Americans with Disabilities Act Title II "program access" mandate to provide equal access to these facilities for persons with disabilities. The ADA Coordinator's Office works with state agencies to develop budget requests and undertake ADArelated construction projects. These projects concern accessible entrances, primary function areas, restroom alterations, site modifications, automatic doors, curb cuts, ramps, pathway renovation, door modification, and other accessibility elements and features. During FY2011, the ADA Coordinator's Office closed out all projects funded by Bond Series 2006F & 2007A allocated in FY2008, meeting the state-mandated require- ment to complete projects within five years. Totaling $2.6 million, the early 40 projects for six state agencies were completed. Additionally, a special project for the Department of Corrections at Johnson State Prison, totaling $140,782, was completed. Required to meet Department of Justice compliance, the project included the alteration of 20 cells for access, accessible routing to areas inside the prison, accessible walks to outdoor areas and to the dining hall of the prison and accessible entrance access. Projects funded by Bond Series 2009F, totaling $1.2 million, included 37 projects for six state agencies. These projects were completed and four additional projects identified to complete with the remaining $221,132.81. Those projects include: Wiregrass Georgia Technical College - $7,450.00 Okefenokee Tech - $4,988.88 Abraham Baldwin Agricultural College - $7,515.10 Southern Crescent Technical College - $4,891.64 Training Highlights The State ADA Coordinator's Office conducts general and customized training on ADA topics for state agencies and other targeted audiences to ensure familiarity with the Act's requirements. Training in FY2011 included: Interacting with Persons with Disabilities Customer Service training provided to over 300 state employees. Understanding and Applying the Revised ADA Requirements: 2011 and Beyond was conducted by the U.S. Department of Justice and it provided the latest information on the new ADA regulations, accessibility standards, implementation strategies and best practices. This event brought together state agency facility administrators, state agency ADA coordinators, disability service providers and architects. EEOC's New Regulations: Implementing the ADA Amendments Act of 2008 was presented by the United States Equal Employment Opportunity Commission. This two-hour training provided the latest information on the new ADA regulations, implementation strategies and best practices. The training was made available to state agency personnel administrators and state agency ADA coordinators. Additionally, the ADA fulfilled publication requests from state agencies and disseminated 3287 "TIPS Guide for First Responders," 1382 "Best Practices when Interacting with Persons with Disabilities" and 3654 "Emergency Preparedness for Individuals brochures. Pag e 1 5 Georgia State Financing & Investment Commission Financing and Investment Division Annual Operations Summary During FY2011, the Commission issued $653,925,000 in general obligation bonds to fund new K-12 schools, higher education facilities, public safety projects and other crucial infrastructure projects. The low interest rates received on the October 6, 2010 competitive bond sale translated into annual debt service savings of over $15 million compared to budgeted amounts. Net interest costs on the Series 2010B and 2010C Series bonds ranged from 0.97 percent for fiveyear tax exempt bonds to 2.14 percent for 20-year tax exempt bonds. The 2010C bond series utilized a unique structure of $125.5 million when compared to traditional tax-exempt traditional tax-exempt bonds and several taxable bond bonds. While BABs and RZEDBs expired at the end of designations created by the American Recovery and Re- calendar year 2010, the State retains unused allocation investment Act (ARRA). $233,515,000 of QSCBs for K-12 education projects of the bonds were sold as Build America Bonds ("BABs"), $136,535,000 of the The federal and unused Qualified Energy Conservations Bonds allocation which allows bonds were designated as Recovery Zone Economic Development Bonds ("RZEDBs"), and $28,755,000 of the government pays the State a subsidy for a 70 percent direct interest subsidy to the State for energy projects in state buildings. bonds were designated as Qualified School Construction Bonds ("QSCBs"). from 35 percent The unique characteristic of ARRA Bonds is that, although the interest paid Pursuant to the ARRA provisions, the United States Treasury will remit to the State, on or before each interest to 100 percent of the interest payable to bond owners is treated as federally taxable income rather than tax-exempt income, the federal government pays payment date, an interest rate subsidy payment of 35 percent of the interest on the bonds. the State a subsidy from 35 percent to 100 percent of the interest payable on owed for the BABs, 45 percent of the the bonds. The result is lower net inter- interest owed for the RZEDBs, and 100 percent of the est payments that will be paid by the State than if the interest owed for the QSCBs. The subsidy payments bonds had been issued as traditional tax-exempt bonds. for the 2010C bonds, combined with subsidies received Also, the interest remains tax-exempt to residents of from the State's 2009 BAB issue, result in estimated Georgia for State income tax purposes. interest cost savings for the life of the bond issues of General Obligation Bond Issuances - $653,925,000 Date Sold True True Interest Interest Cost Cost Final (before (reflecting Series Maturity subsidy) subsidy) 10/6/2010 2010B 10/1/2020 1.37% 1.37% 10/6/2010 2010C-1 10/1/2016 3.66% * 2.44% * 10/6/2010 2010C-2 10/1/2030 3.66% * 2.44% * 10/6/2010 2010C-3 10/1/2030 3.85% 2.12% 10/6/2010 2010C-4 10/1/2029 4.63% 0.0% Issue Amount Winning Bid $ 170,165,000 Citigroup Global Markets 84,955,000 Citigroup Global Markets 233,515,000 Citigroup Global Markets 136,535,000 Citigroup Global Markets 28,755,000 Barclays Capital * Series 2010C-1 and 2010C-2 were bid in combination. Pag e 1 6 Georgia State Financing & Investment Commission State of Georgia General Obligation Bonds Fiscal Year 2011 Agency Board of Regents, University System of Georgia Department of Agriculture Department of Behavioral Health and Developmental Disabilities Department of Community Health Department of Corrections Department of Defense Department of Juvenile Justice Department of Natural Resources Department of Public Safety Department of Revenue Department of Veterans Service Georgia Bureau of Investigation Georgia Environmental Finance Authority Georgia Ports Authority Georgia Public Safety Training Center Georgia State Financing and Investment Commission State Accounting Office State Board of Education State Forestry Commission Technical College System of Georgia Total 2010 B/C Amounts $ 160,555,000 1,500,000 18,1000,000 3,800,000 12,230,000 3,750,000 8,770,000 40,880,000 2,380,000 7,550,000 600,000 6,125,000 34,000,000 4,000,000 3,5000,000 15,000,000 2,000,000 222,955,000 8,090,000 98,140,000 $ 653,925,000 Authority Financings The following authorities issued long-term debt during FY2011: Authority Amount Description Georgia Environmental Loan Acquisition Corporation $ 232,010,000 Local Government Loan Securitization Bonds Georgia Higher Education Facilities Authority 94,210,000 Revenue bonds (USG Real Estate Foundation III, LLC Project) Georgia Housing and Finance Authority 134,235,000 Single Family Mortgage Revenue and Refunding Mortgage Revenue Bonds State Road and Tollway Authority 40,000,000 Toll Revenue Bonds State Road and Tollway Authority 334,420,000 Guaranteed Revenue Refunding Bonds Total $ 834,875,000 Guaranteed Revenue Debt Both the State Road and Tollway Authority and the Georgia Environmental Facilities Authority retired outstanding series of Guaranteed Revenue bonds in FY 2011 returning over $16 million in debt services reserves to the Treasury. Pag e 1 7 Georgia State Financing & Investment Commission Georgia Higher Education Facilities Authority For the third consecutive year, GSFIC assisted the Georgia Higher Education Facilities Authority ("GHEFA") with an issue of revenue bonds. GHEFA, created in 2006 by Senate Bill 562, is administratively attached to GSFIC and is authorized to issue and have outstanding at any one point in time a maximum of $300,000,000 in revenue bonds to finance capital projects for units of the University System of Georgia and the Technical College System of Georgia. In FY2011 (August 2010), GHEFA issued $94,210,000 in revenue bonds to finance seven projects for five institutions, all at units of the University System of Georgia (see chart below). Three of the projects had been completed as of June 30, 2011. The remaining projects are scheduled to be completed and put into service during FY2012. GHEFA Revenue Bonds (USG Real Estate Foundation III, LLC Projects), Series 2010A Projects College of Coastal Georgia - Student Housing College of Coastal Georgia - Student Center East Georgia College - Student Housing Georgia College & State University - Wellness & Recreation Center Savannah State University - Stadium & Student Center University of West Georgia - Bookstore Total Budgeted Anticipated Amounts Completion Date $ 15,590,000 Completed 13,365,000 August 2011 8,910,000 Completed 31,400,000 October 2011 18,930,000 September 2011 6,015,000 Completed $ 94,210,000 Students moving into the new dormitory at College of Coastal Georgia In FY2010, GHEFA issued $100,850,000 in revenue bonds to finance four projects for three institutions, all units of the University System of Georgia. The projects included a student center at Bainbridge College, a student center at Columbus State University, and student housing and a dining facility at Southern Polytechnic State University. All projects have been completed. In FY2009, GHEFA issued $99,855,000 in revenue bonds to finance eight projects for seven institutions, all units of the University System of Georgia. The projects included a parking deck at Dalton College, a student activity center at Darton College, a stadium and student center at Fort Valley State University, a parking deck at Gainesville College, student housing at Georgia College & State University, and a parking deck at Southern Polytechnic State University. All projects have been completed. Pag e 1 8 Georgia State Financing & Investment Commission ARRA Bond Allocations In addition to Build America Bonds, ARRA provided for allocations of several types of tax credit and direct-pay taxable bonds to finance K-12 school construction, economic development and energy projects. Issuers of direct-pay taxable bonds receive interest rate subsidies from the US Treasury for qualified projects. GSFIC, in cooperation with the Department of Education, the Department of Community Affairs and the Georgia Environmental Finance Authority (GEFA), allocates the volume cap to state and local issuers for the following ARRA bond programs: K-12 School Construction Qualified School Construction Bonds (QSCBs) Qualified Zone Academy Bonds (QZABs) Economic Development Energy Recovery Zone Economic Development Bonds (RZEDBs) Qualified Energy Conservation Bonds (QECBs) Recovery Zone Facility Bonds (RZFBs) ARRA bonds helped finance school construction projects throughout the state QSCBs provide a 100 percent direct interest rate subsidy to the issuer and are used to finance land acquisition, construction and renovation of K-12 school facilities. To date, 23 school districts and the State of Georgia have issued over $450 million in QSCBs for K-12 school facilities. QZABs also provide a 100 percent interest rate subsidy, but contain provisions regarding private sector participation and curriculum development that have proven challenging for local school districts. RZEDBs provide a 45 percent direct interest rate subsidy to the issuer and are used to finance public projects in economically distressed areas designated by the issuer as "Recovery Zones." RZFBs are similar to tax- exempt private activity bonds and are used to finance private business developments in designated Recovery Zones. These two bond programs expired December 31, 2010. 32 issuers and the State of Georgia issued over $560 million of Recovery Zone bonds. QECBs provide a 70 percent direct interest rate subsidy to the issuer and can be used to finance a variety of energy projects. GSFIC provided $63.4 million in direct allocations to 24 local governments in August 2009 in accordance with US Treasury regulations. GEFA is in the process of developing recommendations for allocation of the remaining state allocation of $37 million and unused local allocations of $19.4 million. Pag e 1 9 Georgia State Financing & Investment Commission ARRA: 2009 and 2010 Qualified School Construction Bond Allocations to Georgia Allocations Treasury Direct Allocations State of Georgia Allocation Total Available in Georgia Direct Allocations Waived to State GSFIC Allocations to Local Districts Bacon Bartow Bulloch Calhoun, City of Candler Carrollton, City of Cherokee Hall Heard Jefferson, City of Marion Meriwether Newton Rabun Stephens Stewart (ref failed 3-15-11) Thomasville, City of Treutlen Upson Washington (expires 10-31-11) Wilkinson Atlanta, City of (return of 09 waiver) Dekalb (return of 09 waiver) Fulton (return of 09 waiver) Total Local Allocations Direct Treasury Allocations Retained City of Atlanta (FY10 allocation) Dekalb (FY10 allocation) Fulton (FY10 allocation) Gwinnett (FY09 + FY10 allocation) Total Local Allocations State of Georgia Allocation Total Allocations Balance for GSFIC to allocate 2009 $145,159,000 201,062,000 $126,174,000 Amount $12,215,000 23,000,000 15,000,000 21,000,000 17,625,000 8,000,000 40,055,000 3,000,000 3,000,000 8,300,000 15,000,000 1,240,000 25,050,000 16,000,000 1,690,000 2,000,000 2,000,000 7,920,000 6,000,000 17,500,000 16,500,000 37,934,000 27,832,000 17,720,000 $345,581,000 Amount $34,526,000 29,940,000 17,917,000 38,625,000 $121,008,000 Amount $466,589,000 $215,755,000 Amount $682,344,000 $50,240,000 2010 $133,168,000 234,431,000 $31,145,000 Issued $10,155,000 23,000,000 13,705,000 21,000,000 17,625,000 8,000,000 40,055,000 3,000,000 3,000,000 8,300,000 7,595,000 1,240,000 25,050,000 16,000,000 1,690,000 2,000,000 7,920,000 16,500,000 37,934,000 27,832,000 17,720,000 $309,321,000 Issued $34,526,000 29,938,000 17,915,000 38,625,000 $121,004,000 Issued $430,325,000 $106,395,962 Issued $536,720,962 Total $278,327,000 435,493,000 $713,820,000 $157,319,000 Returned $2,060,000 1,295,000 7,405,000 2,000,000 6,000,000 $18,760,000 2,000 2,000 $4,000 As of June 30, 2011 Pag e 2 0 Georgia State Financing & Investment Commission ARRA: Recovery Zone Bond Allocations and Issuance in Georgia Recovery Zone Facility Bonds Amount allocated to GA local governments $533,677,000 Amount waived or deemed waived, as of 12/6/2010 $360,396,000 Local Issuance Initial Treasury Amount Allocation Issued City of Atlanta $34,163,000 $10,000,000 Augusta-Richmond 3,627,000 3,625,000 Chatham County 3,562,000 3,560,000 Cobb County 55,796,000 24,016,000 Dekalb County 54,524,000 8,500,000 Gwinnett County 61,778,000 30,000,000 Savannah, City of 3,307,000 3,305,000 Walton County 5,991,000 2,975,000 $188,585,000 $75,981,000 GSFIC Reallocations Company New Jobs Amount (est) Reallocated Amount Issued Grady County Development Authority Turner Furniture 35 $2,386,000 $2,386,000 Rabun County Haberworks 200 12,890,000 12,890,000 Development Authority of Jefferson Systemax 400 15,000,000 15,000,000 Walker County Development Authority Canyon Ridge 290 18,341,000 0 Development Authority of Gainesville/Hall Kings Hawaiian 126 45,000,000 35,000,000 Hart County Industrial Development Authority Automotive Supply 400 10,500,000 0 Co. Franklin County Industrial Building Authority NGTC Health Properties, LLC 20 39,000,000 39,000,000 Development Authority of Bartow County AL7 LLC & Speciality Alloys LLC 50 13,340,000 13,340,000 Bulloch County Development Authority Great Dane/Pines Trailer Corp 400 34,500,000 34,500,000 Harris County Development Authority Hoover Universal 125 6,000,000 5,515,000 Moultrie County Development Authority Kingdom Group 200 4,000,000 0 Kennesaw Downtown Development Authority Multi-use facility 7,000,000 0 Monroe County Development Authority Ga Power 120,000,000 0 Total GSFIC Reallocations 2246 $327,957,000 $157,631,000 Total RZFBs Issued 32,439,000 $233,612,000 As of December 31, 2010 Pag e 2 1 Georgia State Financing & Investment Commission ARRA: Recovery Zone Bond Allocations and Issuance in Georgia Recovery Zone Economic Development Bonds Amount allocated to GA local governments Amount waived or deemed waived, as of 12/6/2010 Local Issuance Atlanta, City of Cherokee County Clayton County Columbus-Muscogee Dekalb County Floyd County Fulton County Gwinnett County Paulding County Savannah, City of Stephens County Whitfield County Direct Allocations Issued GSFIC Reallocations Development Authority of Augusta-Richmond County Brunswick Downtown Development Authority State of Georgia Effingham County Hospital Authority City of Decatur Total GSFIC Reallocations Total RZEDBs Issued $355,785,000 $203,777,000 Initial Treasury Amount Allocation Issued $22,776,000 $22,776,000 10,767,000 10,767,000 13,078,000 5,300,000 2,090,000 2,090,000 36,349,000 36,349,000 8,269,000 8,235,000 26,441,000 26,441,000 41,186,000 23,955,000 6,448,000 6,445,000 2,205,000 2,155,000 178,000 122,000 8,562,000 5,600,000 $178,349,000 $150,235,000 Amount Reallocated Amount Issued $6,800,000 $0 9,000,000 0 136,535,000 136,535,000 28,690,000 28,690,000 13,800,000 12,760,000 $194,825,000 $177,985,000 $328,220,000 As of December 31, 2010 Pag e 2 2 Georgia State Financing & Investment Commission ARRA: 2009 Qualified Energy Conservation Bond Allocation to Georgia State of Georgia Allocation GSFIC Allocations to Local Governments Athens-Clarke County Atlanta Augusta-Richmond Cty Bibb County* Carroll County* Chatham County Cherokee County Clayton County Cobb County Columbia County* Columbus-Muscogee Cty Coweta County* DeKalb County* Douglas County* Fayette County* Forsyth County* Fulton County Gwinnett County Hall County Henry County Houston County* Lowndes County Paulding County* Savannah Total Local Allocations QECB Balance to State *Returned allocation to State Balance for GSFIC to allocate $100,484,000 $1,187,100 5,465,388 2,022,808 1,628,726 1,178,615 1,243,718 2,151,467 2,865,811 7,284,149 1,148,569 1,969,159 1,252,119 7,367,023 1,310,643 1,117,449 1,672,995 5,372,355 8,173,474 1,896,823 1,958,537 1,379,294 1,071,612 1,346,552 1,372,082 $63,436,468 $37,047,532 $19,401,985 $56,449,517 Pag e 2 3 Georgia State Financing & Investment Commission Earnings Interest earnings and capital gains from the deposits and investment of bond proceeds during FY2011 were $43,095,218.50 per book. At June 30, 2011, the Commission had the following deposits and investments: Deposits and Investments Pooled portfolio managed by the Office of State Treasurer: Cash held for investment settlements U.S. Government Agency Obligations NOW Account (Negotiable Order of Withdrawal) Total Maturities NA 0.95 year duration NA Fair Market Value $ 275,790,331 785,056,591 77,704,692 $ 1,138,551,614 The portfolio, with a total rate of return of 1.4 percent, consists of Fixed Income Securities comprised of Agencies of the United States Government and Repurchase Agreements. Total Returns Capital Projects Fund Investment Portfolio 7% 6% 5% 4% 3% 2% 1% 0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY2011 Refunding During FY2011, the Commission utilized premium received from the October 2010 sale of tax exempt bonds to execute a current refunding of $35 million outstanding general obligation bonds maturing in 2010. The refunding provided an equal amount of debt service savings for FY2011. Pag e 2 4 Georgia State Financing & Investment Commission FY2011 Authorized Indebtedness as of June 30, 2011 Agency Name Outstanding Authorized but Bonds Not Issued Department of Administrative Services $ 2,057,241 Department of Agriculture Georgia Agricultural Exposition Authority 54,688,193 6,806,322 Department of Behavioral Health and Developmental Disabilities Georgia Building Authority Department of Community Affairs Georgia Regional Transportation Authority Department of Community Health Department of Corrections Department of Defense Department of Economic Development Georgia Golf Hall of Fame Georgia World Congress Center Authority Department of Education Georgia State Financing and Investment Commission Georgia Forestry Commission Georgia Emergency Management Agency Georgia Environmental Finance Authority Herty Advanced Materials Development Center Department of Human Resources Georgia Bureau of Investigation Jekyll Island Authority Department of Juvenile Justice Department of Labor Department of Natural Resources Georgia Ports Authority Georgia Public Safety Training Center Department of Public Safety Board of Regents 18,100,000 142,072,820 991,837 4,122,832 3,800,000 202,052,744 13,430,825 182,366,393 1,730,830 130,819,407 2,271,839,221 31,812,841 16,557,891 67,322 356,075,285 521,009 95,598,464 33,143,032 51,206,645 126,523,318 13,566,740 250,677,566 158,975,849 5,390,737 2,384,175 2,079,842,378 2,230,000 12,750,000 3,280,000 10,000,000 201,420,000 1,010,000 4,930,000 6,050,000 98,350,000 1,750,000 60,800,000 Department of Revenue 24,289,453 6,750,000 Soil and Water Conservation Commission 4,078,926 5,000,000 State Accounting Office 2,000,000 Technical College System of Georgia 668,731,917 42,165,000 Department of Transportation 1,587,951,057 250,805,000 Department of Veterans Service 6,871,730 Total General Obligation Bonds 8,551,145,000 707,290,000 Guaranteed Revenue Bonds State Road and Tollway Authority Total General Obligation Bonds and Guaranteed Revenue Bonds* 432,620,000 $ 8,983,765,000 $ 707,290,000 * The approved Fiscal Year 2012 budget authorized an additional $632,410,000 of general obligation bonds; no additional guaranteed revenue bonds were authorized. Total $ 2,057,241 54,688,193 6,806,322 18,100,000 144,302,820 991,837 4,122,832 3,800,000 214,802,744 16,710,825 192,366,393 1,730,830 130,819,407 2,473,259,221 31,812,841 17,567,891 67,322 356,075,285 521,009 95,598,464 33,143,032 51,206,645 131,453,318 13,566,740 256,727,566 257,325,849 5,390,737 4,134,175 2,140,642,378 31,039,453 9,078,926 2,000,000 710,896,917 1,838,756,057 6,871,730 9,258,435,000 432,620,000 $ 9,691,055,000 Pag e 2 5 Georgia State Financing & Investment Commission Variable Rate Bond Performance During FY2011, the average interest rate for the 2006H variable rate bond issue was approximately 0.32 percent. Together with the ongoing fees of approximately 0.12 percent this equates to an effective rate of approximately 0.44 percent. When compared to the estimated fixed interest rate of 4.14 percent at which the bonds would have been issued in December 2006, the total interest payments savings for FY2011 was approximately $11.2 million. The following chart illustrates the comparison of both Georgia's weekly and cumulative rates to the Securities Industry and Financial Markets Association (SIFMA) index from issuance through FY2011. Georgia 2006H General Obligation Variable Rate Bonds Comparison to SIFMA Index Rate 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 12/21/2006 6/21/2007 12/21/2007 6/21/2008 12/21/2008 6/21/2009 12/21/2009 6/21/2010 12/21/2010 6/21/2011 Georgia Weekly Rate SIFMA Index Georgia Cumulative Average SIFMA Cumulative Average Pag e 2 6 Georgia State Financing & Investment Commission Expenditure of Bond Proceeds Federal arbitrage regulations require that the State "reasonably expects" to spend down proceeds of each bond series with the following key milestones: Five percent within six months of issuance, Eighty-five percent within three years of issuance; and Completion of projects within five years These regulations are in place to: 1) minimize the benefits of investing the proceeds of tax-exempt bond proceeds at taxable rates, 2) remove the incentive to issue more bonds than required for the projects, and 3) remove the incentive to issue bonds earlier or leave bonds outstanding longer than necessary to carry out the governmental purpose of the bond issue. In FY2011 all outstanding bond series in aggregate were in compliance with the federal expenditure milestones, although several individual projects did not meet those key milestones. In order to ensure overall compliance for each bond series, GSFIC's General Obligation Bond Proceeds Expenditure Policy applies these expenditure requirements to individual projects. GSFIC policy also requires that bond proceeds be exhausted within five years. The Financing and Investment Division, in coordination with the Construction Division and state agencies and authorities, has procedures in place to monitor if these milestones are met at both the series and the project level. Both divisions work with the respective agencies to spend down balances or return the unspent bond proceeds for the purpose of retiring debt. Summary of Agency Spend Down Compliance Agency bond proceeds remaining after 5 years 15% or more of bond proceeds remaining after 3 years 95% or more of bond proceeds remaining after 6 months Total not in compliance with expenditure milestones Total number in compliance with all milestones Number Number Amount of Bond of of Proceeds Agencies Projects Remaining 1 1 $ 70,039 15 44 148,730,694 12 57 163,908,237 18 94 312,708,970 15 410 $ 695,799,359 The electronics lab at Athens Technical College GSFIC design professionals review plans electronically Pag e 2 7 Georgia State Financing & Investment Commission Strategic Initiatives GSFIC will continue to leverage the latest technology to improve its operations in the next fiscal year, as well as focus on training and education for both staff and customers. Education Process Orientation Whether a project is a $100,000 renovation or a $100 million state-of-the-art educational facility, it is important for the using agency to understand the process from design to construction to building operations. This year, Construction Services will launch an orientation program offered to all agencies with GSFIC-managed projects. The orientation, available both at GSFIC headquarters and via webinars, is designed to answer the many questions agencies have as they embark on a new project and to gain consensus on expectations. A team of GSFIC project managers will develop the program and serve as instructors. Design Professional Workshops The Construction Division's Design/Review Group will develop a workshop for design professionals that will describe and explain the various aspects of GSFIC, including the roles and responsibilities of GSFIC, its processes and its expectations of design professionals engaged to provide services to the State. The modules will include Procurement and Contracting for Services, Design Review, Special Inspections and Construction Materials Testing, Commissioning, Fire Marshal Permitting, National Pollutant Discharge Elimination System (NPDES) permitting and Construction Contract Administration. Longterm, the group hopes to expand the workshops to include Project Management, Project Closeout & Turn-over and Quality Assurance/Warranty. GSFIC expects the educational workshops to reduce delays during design and construction caused by incomplete programming, inadequate design documents, budget over-runs, inadequate construction contract administration, and other issues that could be remedied by setting clear expectations and providing a mechanism to explain how to meet those expectations. Contracts Training With a goal of achieving consistency within the agency when administering contracts, the project management team will develop training for all construction services personnel on the specifics of both design professional and construction services contracts. The modules will include Calculation of Permissible Weather Delay Days, Off-Site Materials Storage, Special Inspections, Commissioning, Fire Marshal Permitting and Inspections, Change Orders, Force Accounts, Project Closeout and Quality Assurance/Warranty Enforcement. Classes will take place at the twice-monthly training for project managers and two comprehensive training days for Contract Compliance Specialists (CCSs), who are located throughout the State. Additionally, the project managers training will be videotaped and available via webcasts for the field staff. Career Management Institute Phase IV of the Career Management Institute will be launched in FY2012 and includes the configuration and implementation of 300 e-learning modules into the Learning Management System. These courses have been carefully selected to support the competencies identified for maximum success in 29 positions at GSFIC. Following the pilot of these performance solutions in both the personal development and job specific skills, the competencies and learning methods for the remaining positions at GSFIC will be identified and learning modules developed. Leadership Training In addition to monthly training modules for leadership, Human Resources will begin designing a multi-faceted Leadership Development Program. The structure of this program will include individual needs analyses, a mentoring program and blended learning opportunities. Technology Without a doubt, the speed of change has become a defining characteristic of the information age. The way we conduct business has dramatically changed in just the past five years. The GSFIC staff is online, connected, communicating and sharing information in a way not imaginable 10 years ago. GSFIC will continue to research and invest in new technologies that will allow the organization to more efficiently and effectively serve the citizens of the State of Georgia. Enterprise Project Management Solution In order to improve efficiencies, drive productivity and deliver best in class customer service, GSFIC will implement a new Project Management Enterprise Solution. The new solution will be used to better manage the entire project management lifecycle. The real time data base will capture, analyze and compare data that will enable staff to better manage projects. Pag e 2 8 Georgia State Financing & Investment Commission The web-based system will allow staff to access the application from anywhere and will help standardize the organization's processes. It will improve delivery and collaboration of data between all stakeholders and will reduce costs by allowing for real-time workflow, including required approvals, submittals and reviews. It should also improve efficiency, productivity and effective communication. During the first half of FY2012, all internal processes will be reviewed as the GSFIC-specific software is developed. The new enterprise management system is expected to be launched in late FY2012 or early FY2013. WebX Teleconferencing GSFIC will take advantage of the latest technology to reduce travel costs by investing in web conferencing software and web camera equipment. Project team members will be able to participate in distant meetings by turning on a camera and logging into a website. The new teleconferencing technology will be launched in early FY2012. Field Tablets With a team of 28 Contract Compliance Special- ists on job sites throughout Georgia every day, it is imperative to keep them in touch with the home office in Atlanta. All CCSs have been equipped with `virtual offices,' including smart phones, laptops and printers. Remote access allows them access to the GSFIC database, expediting project updates and reports. The IT Division will research the viability of transitioning the computer equipment from traditional laptop to the new digital tablets. This will make GSFIC's workforce more mobile and responsive. Tablets can be transported easily onto the jobsite allowing real time research, reporting and plan referencing. Technology Outreach The IT department will continue to reach out to GS- FIC staff to enhance the understanding and knowledge of the technology tools available to them. The IT department will implement a Technology Support and Training Program focused on improving technology utilization throughout the agency. This program will include training, a hands-on lab, an IT Blog and working groups to focus on specific technologies, including the smart phones, teleconferencing and the new enterprise project management solution. State Construction Manual In 2007, in coordination with the Board of Regents, GSFIC published the State Construction Manual (SCM), the primary resource guide for vertical construction for the State. An Executive Order called for the publication of the SCM and OCGA requires all state agencies to follow it. The SCM provides detailed information and procedures for project development leading to project approval and funding and project implementation, including design and construction. In FY2011, the SCM Editorial Review Board and its committees began a thorough review of the document and revisions will be presented for approval to the full board in the second quarter of FY2012. The updated edition will then be published to the SCM website. Finance and Investment The Financing and Investment Division initiated the development of a web-based bond and debt management system ("eBonds") in FY2009. This comprehensive application integrates all data associated with capital projects funded by general obligation bond issues sold by GSFIC and also any cash supplements received. Authorized eBonds users are able to access data that includes specific language from the appropriations bill that originally authorized a particular capital project's funding, bond and debt service information, project budget and disbursement transactions, spend down compliance information, and post-issuance compliance information (asset tracking). In August 2010, the eBonds bond sale request process was put into production and used by agencies to access their available authorized items and submit their requests. In March 2011, eBonds began tracking spend down compliance by sending monthly notifications for any projects that were either in non-compliance with the federal regulations, or approaching a milestone date. eBonds also automatically provides agencies quarterly with a list of projects that have had no disbursement activity during the previous quarter. Agencies are requested to submit comments regarding a project's status directly into eBonds. Based on those comments and other data in the system, eBonds will prepare the FY2011 annual spend down report for the Commission's review. Also during the fiscal year, processes were put into production that included importing disbursement data directly from the Construction Division's Peoplesoft system, producing a check register and allowing for the clearing of checks, managing complicated bond debt service calculations, and providing many new exports for users. In July 2011, a process was developed jointly with the Construction Division to automatically generate commitment letters for bond projects after the bonds have been sold and once complete asset tracking information has been submitted for the projects. Some of the items to be implemented during FY2012 include producing the annual construction-in-progress reports, generating outstanding debt service reports for a specific project, and producing various general ledger activities and reports. Pag e 2 9 Georgia State Financing & Investment Commission 270 Washington Street, Atlanta, Georgia 30334 404-463-5600 Fax 404-463-5611 w w w. g s f i c . g e o r g i a . g o v October 2011