Annual report, 2018

FISCAL YEAR 2018 ANNUAL REPORT
Georgia State Financing and Investment Commission

TABLE OF CONTENTS

Commission Members

1

Introduction, Mission, Vision and Core Values

2

Year-in-Review | Financing and Investment Division 4

Year-in-Review | Construction Division

7

Project Achievements & Awards

12

Construction Division Report

15

Construction Feature Stories

22

Financing and Investment Division Report

26

Strategic Initiatives

35

Cover Photograph Student Services & Success Center, Atlanta Metropolitan State College
Photo provided by Gardner Spencer Smith Tench & Jarbeau @ Kelly Holtz Photography

COMMISSION MEMBERS

COMMISSION MEMBERS
Governor Nathan Deal | Chief Executive Officer, Chairman Casey Cagle | Lt. Governor, Vice-Chairman Greg S. Griffin | State Auditor, Secretary and Treasurer David Ralston | Speaker of the House of Representative Chris Carr | Attorney General Gary W. Black | Commissioner, Department of Agriculture Steve McCoy | State Treasurer
Steve Stancil | Director, Construction Division, Executive Secretary Diana Pope | Director, Financing and Investment Division

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GSFIC | Annual Report 2018

INTRODUCTION, MISSION, VISION AND CORE VALUES

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. GSFIC consists of the Financing and Investment Division and the Construction Division.
The Financing and Investment Division (F&I 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 GSFIC and also enable the F&I Division to retire state debt prior to maturity. The F&I Division 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 F&I Division.
The Construction Division provides all of the support services for GSFIC and is responsible for disbursing bond proceedsand for managing capital outlay projects funded, in whole, or in part, with bond proceeds.
The Construction Division also provides the following services for State Agencies: ADA Compliance Assistance Procurement Services Construction Services Design Review Services
MISSION, VISION AND CORE VALUES
The Georgia State Financing and Investment Commission's core values are dedicated to continuous quality improvement in all of its activities.
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

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GSFIC | Annual Report 2018

YEAR-IN-REVIEW FINANCING AND INVESTMENT DIVISION

YEAR-IN-REVIEW FINANCING AND INVESTMENT DIVISION
Core functions of the Georgia State Financing and Investment Commission include the issuance and management of all public debt of the State of Georgia authorized by Article VII, Section IV of the Constitution of the State of Georgia, including general obligation debt and guaranteed revenue debt, providing construction management services for capital improvement projects, providing financial advisory services to state authorities in matters relating to the issuance or incurrence of debt by state authorities, and other responsibilities assigned to it by law, such as receiving and distributing monies pursuant to the TIA Program described below.
General Obligation Bond Issuance Highlights
During Fiscal Year 2018, the Commission issued general obligation bonds funding approximately $1.155 billion for capital projects. The Commission also issued $348.6 million of refunding general obligation bonds which will provide approximately $43.8 million in debt service savings to the State.
Georgia maintained triple-A credit ratings on its general obligation debt from the three major credit rating agencies - Moody's, Standard & Poor's, and Fitch - as it has every year since 1997. Georgia is one of thirteen states with the coveted triple-A rating from all three rating agencies - the other states with triple triple-A ratings are Delaware, Florida, Indiana, Iowa, Maryland, Missouri, North Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia. (Of these thirteen states, three [Indiana, Iowa, and South Dakota] have no general obligation debt outstanding and Indiana is prohibited by its state constitution from issuing general obligation bonds [these ratings are known as Issuer Credit Rating which serves as a proxy for a general obligation bond rating for these states].) The triple triple-A rating allows the State to sell its bonds at the lowest possible interest rates which results in the lowest possible debt service payments and thus savings for Georgia's citizens. The highest bond ratings enable the State to invest in vital infrastructure in a fiscally responsible manner as well as providing more employment opportunities for Georgia's construction industry. The State's debt management plan, which is developed by GSFIC in collaboration with the Governor's Office of Planning and Budget, is a critical component of demonstrating Georgia's conservative fiscal management to both the rating agencies and the purchasers of Georgia's bonds and helps guide State leaders in determining manageable levels for new debt authorizations.

Roosevelt Warm Springs Health Facility Improvements, Photo courtesy of Barton Malow Company Jason Buch Photography

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GSFIC | Annual Report 2018

TIA Program The Transportation Investment Act of 2010 ("TIA") became operational after voters in three districts Central Savannah River Area (CSRA), River Valley (RV), and the Heart of Georgia Altamaha (HOGA) approved a one percent sales tax for ten years, starting on January 1, 2013, to fund regional and local transportation improvements to transportation projects in these districts.
GSFIC is responsible for receiving the monthly TIA tax collections from the Department of Revenue for each district and then distributing 75% of those funds to the TIA program projects for those districts and the remaining 25% of those amounts to all municipal and county governments within the district, according to a pre-determined distribution formula, for their discretionary use on local transportation-related efforts.
The TIA program projects were selected within each district prior to the vote and after significant input from the public by regional commission conducted roundtables of local elected officials.

In Fiscal Year 2018, GSFIC received a total of $145 million in TIA tax collections. Of that amount, GSFIC distributed $36 million to the local governments and $109 million for the TIA program projects. Since the inception of the TIA program, a total of approximately $768 million has been received and distributed through June 30, 2018 as shown below:

Through June 30, 2018
Total TIA Recenue Collections 75% to Approved Projects 25% to Local Jurisdictions Total Number of TIA Projects

Region 7 Central Savannah River $358,607,832
$268,955,874
$89,651,958
84

Region 8 River Valley
$250,424,178

Region 9 Heart of Georgia
Altamaha
$158,840,782

$187,818,134

$119,130,587

$62,606,045

$39,710,196

23

764

Total
$767,872,792 $575,904,594 $191,968,198
871

In May 2018, voters of the Southern Georgia District approved a 1% TIA sales tax to fund transportation projects; collections for the 10-year program will begin in FY2019 on October 1, 2018. Over the 10-year period revenues are projected to total approximately $513 million.

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GSFIC | Annual Report 2018

YEAR-IN-REVIEW | CONSTRUCTION DIVISION

YEAR-IN-REVIEW CONSTRUCTION DIVISION
GSFIC's team of construction professionals leverage today's technology to improve the State's construction for its many using agencies including the Board of Regents, Technical College System of Georgia, State Board of Education, Department of Juvenile Justice, Department of Transportation, and Safe Dams / Soil and Water Conservation Commission among others. They are responsible for management of construction projects from procurement to closeout. The three pillars by which the Construction Division is judged includes schedule, cost and quality management.
A key resource within the Construction Division is the Design Review Group's (DRG) staff of architects and engineers. They conduct two types of reviews on design documents Fire Marshal Reviews to address life safety issues and Constructability Reviews to address design elements to minimize change orders or eliminate design systems that have a proven failure rate on past GSFIC projects.
Construction Managment Delivery Methods Workshop House Resolution 284, during the 2017 session, created the House Study Committee to review State and Local Construction Management. The committee studied the strength and weaknesses of the Construction Manager at Risk delivery method compared to other construction delivery methods during a series of five public meetings. The committee heard testimony from several state agencies, including GSFIC, and various design and construction professionals. As a direct result of this committee's study, GSFIC committed to sponsoring a series of workshops with the purpose of sharing insight with firms with little or no experience with Construction Management at Risk methodology. The workshop had three goals:

1.

Sharing insight on the history of the Construction Management Delivery Methodology

2.

Outlining the procurement process steps and marketing considerations during the sales

cycle

3.

Sharing perspectives from an Owner and Industry panel

Enterprise Project Management Solution
The continued desire to improve operational efficiencies has driven the efforts in e-Builder since its launch in 2013. In FY2018, GSFIC continued to automate fields on the details page up to 95%. Since the same information was being recorded in the different processes, time is no longer being spent adding the same information manually. GSFIC is nearing implementation of the process to better manage the Design Process.
Another enhancement to e-Builder has been a new Fire Marshal Review process. Previously, there were three separate processes for Life Safety reviews, Sprinkler Shop Drawing reviews and Fire Alarm Shop Drawing reviews. The new process combines all three submittal types. In addition the new process can be initiated by the design professional for Life Safety reviews and by the construction professional for Shop Drawing reviews.

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GSFIC | Annual Report 2018

Building Information Modeling GSFIC's Construction Division continues to expand the applications of Building Information Modeling (BIM) as a technology to improve the design and construction processes at each phase of design and during construction for facility management operations. Several initiatives were accomplished during FY2018. Animations and virtual reality continued through the later design phases and early construction phases on multiple projects including the Judicial Complex, University of North Georgia's Convocation Center, and the new Lanier Technical College Campus. The animations and virtual reality panoramic images for design and construction coordination are hosted on the BIM Website (gsficbimlab.org) and more recently added to e-Builder where they can be used for future meetings by the end-users, design professionals, and construction professionals. Research on BIM model data integration into facility management continues with the Judicial Complex and GBA's Maximo facility management and some preliminary tests are currently being conducted to ensure a smooth transition of data between the BIM and Maximo.

Virtual reality view of the Convocation Center

Actual view of the Convocation Center, Photo courtesy of Juneau Construction Company

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GSFIC | Annual Report 2018

Procurement The Procurement Department is charged with the overall process of acquiring services in support of GSFIC's Construction Division and the projects it manages. This includes the development of solicitation documents; solicitation and acquisition of services or sources; and preparation and award of contracts for construction related services such as building commissioning, architectural and engineering services, construction management agreements, general contractor services, and furniture, fixture and equipment (FF&E) purchases, as well as various consulting contracts. In addition to selections facilitated in support of the GSFIC managed projects, Procurement facilitates the bidding process of projects being managed by various other State Agencies. In FY2018, the Procurement staff facilitated selections, bids or purchases involving approximately 365 opportunities in support of GSFIC managed projects that resulted in contracts for construction related services and facilitated the bidding process of approximately 63 projects being managed by various other State Agencies.
Procurement began facilitating competitive hard bids in the GSFIC Project Management System's (e-Builder) electronic bidding module beginning in January 2015 for all GSFIC managed projects. In an effort to create a standardized bidding process for both the GSFIC managed projects and those projects being managed by individual State Agencies, Procurement Services committed to duplicating the electronic bidding process currently in e-Builder for use on the non-GSFIC managed projects. A phased rollout of the electronic bidding module was accomplished and all competitive bids for both GSFIC managed and Agency managed projects are now being facilitated electronically. In an effort to enhance efficiencies, Procurement evaluated and made revisions to a procurement process GSFIC refers to as Select Bid. The goal was to create a more user friendly process by reducing the degree of initial effort required up front for potential bidders interested in participating in the Select Bid process. This also reduced the volume of information being reviewed by selection committee members.
Information Technology The GSFIC Information Technology Department (GSFIC-IT) consists of five dedicated full-time employees, one part-time intern and a number of systems support partners. In addition to supporting multiple devices and systems on a daily basis, GSFIC-IT has been involved in a number of improvement projects to include an expansion and upgrade of the office WIFI network and security initiatives.

Savannah State University, Science and Technology Facilities Photos courtesy of CPPI @ John Jernigan Photography

Metro State Prison, Science and Technology Facilities Photos courtesy of Wakefield Beasley & Associates

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GSFIC | Annual Report 2018

Human Resources During FY18, Human Resources completed the implementation and training of one hundred and ten employees in Effective Interviewing Skills training through the delivery of twenty two small sessions. The Effective Interviewing Skills training is mandatory for all employees that participate in departmental interviews, either as a hiring manager or a panel member. There are seven learning objectives accomplished through the training: 1) Know what Constitutes and Interview 2) Know the Different Types of Interviews 3) Know the Different Types of Interview Styles 4) Know how to Prepare for an Interview 5) Know how to Structure and Interview 6) Know how to Develop and Ask the Right Questions in an Interview 7) Know the role of Soft Skills and How to Conduct an Interview The purpose of the Effective Interviewing Skills training is to allow employees to lead the complete interviewing of candidates without Human Resources involvement on the selection panel. Employee led interviews and panel selection allows for Human Resources to place more value and resources on achieving the agency strategic initiatives and concentrate more on internal employee relations and needs.
State Americans with Disability Act (ADA) Coordinator's Office The State ADA Coordinator's Office provides comprehensive technical services for state agencies so that those programs, services and activities operated by the State of Georgia are accessible and usable by everyone. During the past year, the office promoted and strengthened State agency ADA compliance by obtaining bond funding in the amount of $667,000 for specific accessibility projects for State Agencies. The office also continued its networking and outreach activities, including co-sponsoring its annual Statewide ADA Conference for State and Local Government, and delivering forty-eight additional training sessions for State Agencies, Code Officials, and Design Professionals.
The office also partnered with the Judicial Council of Georgia and the Administrative Office of the Courts to publish the 2017 Accessibility Handbook for Georgia Court Officials and continued its collaboration with Georgia Technology Authority (GTA) and AMAC Accessibility Solutions and Research Center at Georgia Tech on AccessGA, the office's information and communication technology accessibility initiative.

Gwinnett County Human Services Building, Photo courtesy of CGLS Architects, Inc. Fred Gerlich Photography

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GSFIC | Annual Report 2018

PROJECT ACHIEVEMENTS & AWARDS

PROJECT ACHIEVEMENTS & AWARDS
Veterinary Medical Center University of Georgia Athens, Georgia Design: Perkins+Will
Construction: Turner Construction Company Peach Award
Presented by: Peach Program
North Fulton Campus Gwinnett Technical College
Alpharetta, Georgia Design: Wkefield Beasley & Associates
Construction: Reeves Young Peach Award
Presented by: Peach Program
Lakeview Discovery and Science Center Clayton State University Morrow, Georgia
Design: The SLAM Collaborative Construction: McCarthy Building Companies, Inc.
Peach Award Presented by: Peach Program

Morgue Cooler Expansion & Three Story Medical Examiners Annex Building
Georgia Bureau of Investigation Decatur, Georgia
Design: Stevens & Wilkinson Architecture Construction: Piedmont Construction Group
Project Achivement Award Presented by: Construction Management Association of
America (CMAA)

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GSFIC | Annual Report 2018

PROJECT ACHIEVEMENTS & AWARDS

Center for Molecular Medicine University of Georgia Athens, Georgia
Design: Flad Architects Construction: Brasfield & Gorrie Innovation in Design and Technology Award Presented by: Board of Regents

Student Services and Success Center Atlanta Metropolitan State College Atlanta, Georgia
Design: Gardner Spencer Smith Tench & Jarbeau Construction: Ajax Building Corporation Excellence in Construction Award
Presented by: Associated Builders and Contractors GA Chapter (ABC Georgia)
Design and Remission of Metro State Prison Department of Corrections Atlanta, Georgia
Design: Wakefield Beasley & Associates Construction: Piedmont Construction Group
Build Georgia Award Presented by: Associated General Contractors
(AGC)

Roosevelt Warm Springs Health Facility Improvements Board of Regents
Warm Springs, Georgia Design: HKS
Construction: Barton Malow Best Healthcare Project RenovationModernization
Award Presented by: Construction Management Association of
America (CMAA)

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GSFIC | Annual Report 2018

CONSTRUCTION DIVISION REPORT

ncyDelivery Method
ncy

# of Projects

210 Design Fees

FY2018 PROJECT OVERVIEW

Project Contracts

420 Construction

Other - CxA, Special Inspections, FFE, Using Agency Reserves, Allotments, Testing, Land
Acquisition, Hazardous Materials

Total Contract Budget
Total

CM/GC

61 $95,536,178.22 $980,633,299.61

$134,391,539.34 $1,336,270,826.22

DB

12

$34,590.00

$62,667,897.20

$3,713,050.60 $71,409,603.39

ojectsTbecyhUniscianlgCoAlgleegnecSyystem of Georgia DBB Other

61 $18,610,688.18

2

$12,000.00

$185,974,736.66 $12,867.00

$25,921,543.99 $316,196,260.36

$824,100.22

$1,017,396.86

Task Order

2

$136,250.00

$594,840.00

$1,772,386.53

$4,398,117.53

Technical College System of Georgia GrandTotals

138 $114,329,706.40 $1,229,883,640.47

$166,622,620.68 $1,729,292,204.36

CM/GC - Construction Management/General Contractor, DB - Design Build, DBB - Design Build Build , CxA - Commissioning Agent

ojectsBboyarUd soifnRgeFAgY2eg0ne1t8nsPcRyOJECTS BY USING AGENCY

ojects by Boa Current Phase rUd soifnRg#eofAgProejgecntsetns cy Technical College System

36 Department Project Development o1f7 Educa2t9ion

Department Schematic Design

of6

T3e2chnical Col3le3 ge EducatiBoonard of Re4g2ents

System

ncy 36 Design Document

16

De par tm e nt Construction
Document

of5

T

ra9nsp13oBTroetcaahrtdnioiocnaf

l College R eg ent s

System

36 ncyCCGolroansnsedtorTuuTSCDSoctttiaoooeolensciimpllhaaanmrnnitciddmasslWWeiConoaantlttleeoe13rr44gf877 eCCToorSaynnnssst1seee1prrmvvo1DBDDaa0roeeeot1ttaapppii2foor1aaatGd5nnirrroetttommmnofreeeRgnnni2ea26tttg8oooeffnf EEtTsddrauunccsaapttiiooornnt

BTGCoareodeocfmoRhegrenmngtsiiciaasslBiCouonildleigneg SAyusthemoDDerpaeiorttmpfeyntaGofrTertanmosporretgatinoinat of Education

Boa rd of R eg ents Technical Coll1ege System of Georgia

Department Department of Education of Transport

2

Georgia B uilding AuthoSroitilyand Water Conservat Other: Departm3ent of Juvenile Justice, Georgia Department
of Agriculture, State Board of Education, Department of

Soil and Water Conservation Commission

BGoeaorrdgoiaf DRegpeanrtsment ofDCoAemgparmirctiumslsteiuonnrteof Transport HumanServices4,GeorgiaBureauofInvestigation,Georgia
Department of B5ehavioral Health & Developmental Disabilities, Georgia Military College, Georgia World Congress Center, Department of C6orrections, Department of Defense, Department of Driver Services, Georgia Building Authority,

Department of Educa tionSoil a nd Water Conserva t Georgia Regional Transportation Authority, Stone Mountain Memorial Association, Georgia Emergency Management
Agency, Georgia Department of Public Safety, Georgia Agricultural Exposition Authority

Georgia Department ofCGoAemgormigciiuaslsBtiuonrileding Authorit

16 DOethpearrtment GSFIC | Annual Report 2018 of EducationSoil and Water Conservat

FISCAL YEAR 2018 STATISTICS

ADA's Did you know
website had over 85,000 page views during the fiscal year?

Did you know IT supports over 300 communication devices to aid in Agency
connectivity?

Did you know Accounting paid
$1,123,699,922.38
for state-wide projects in the fiscal year?

Did you know DRG conducted 357
fire marshal reviews?
Did you know PROCUREMENT
assisted in the Department of Natural Resources with 27 projects that led to the renovation and enchantments of state parks?

Did you know
DRG
conducted 210 constructability
reviews?

Did you know DRG conducted
567 reviews
during the fiscal year?
Did you know Warranty opened
463 warranty complaints and closed 467 warranty complaints during the fiscal
year?

Did you know 57 GSFIC Project Managers hold a total of 77
technical certifications?

Certification

# of Project Managers

Project Management Professional

9

GSWCC Level 1B

45

GSWCC Level 2B

1

LEED

10

Fire Marshal

6

Registered Architect

1

Professional Engineer

3

Engineer in Training

2

Total Certifications

77

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GSFIC | Annual Report 2018

CONSTRUCTION PROJECTS COMPLETED IN FY2018

Project Information
DBHDD-018 Central State Hospital - New Treatment Mall Milledgeville, Georgia Georgia Department of Behavioral Health & Developmental Disabilities

Project Scope
Construction of a new building located directly behind and connected to the Cook Forensic Hospital located at the Central State Hospital in Milledgeville, Georgia. The new facility shall include Public Spaces and Amenities.

DCY-103 Wilkes PDC Conversion to a 48 Bed RYDC Washington, Georgia Department of Juvenile Justice

This project includes the renovation of an existing single story, 26,000 sq. ft. PDC into an administrative support building containing lobby/entry, admin offices for DJJ staff, multipurpose room/visitation, intake/holding, central control, medical, laundry, kitchen and dining hall, 6-8 Classrooms, open area/library and teacher work rooms. The new construction consists of three (3) new 16 bed housing unit(s) with control rooms, a new gymnasium, a new vocational education building, outdoor recreation areas, perimeter security fencing and installation of a central control room with CCTV system throughout facility/campus. The project site includes sufficient space to construct the new structures and required support and programming space.

DHS-002 Gwinnett County Human Services Building Lawrenceville, Georgia Department of Human Services

Gwinnett County Human Services Division consolidated four county wide offices into a new office building for Georgia's Department of Human Service's Division of Family and Children Services (DFCS) and the Division of Child Support Services (CSS) in Lawrenceville, Georgia. The facility is comprised of a four story steel post and beam structure, a three-level precast controlled access parking deck for employees and surface parking for visitors totaling 600 spaces. The building will contain offices, conference rooms, training rooms and cubicle work areas for approximately 400 employees. The building, in addition to the lobbies, will be secured with access card readers on exterior and interior doors.

Size (sf) 5,255 26,000
103,262

DOT-074C Miscellaneous Upgrades to Welcome Centers Various Cities, Georgia Department of Transportation

Upgrades to Lavonia, Ringgold, Augusta and Tallapoosa Welcome Centers for the Department of Transportation. The upgrades to these facilities include electrical safety, employee safety, lighting levels, energy efficiency upgrades, tripping hazards mitigations, HVAC systems upgrade, roof repairs, crosswalk hazards and traffic signage.

DOT-075 Mitigation of Properties in Pleasant Hill Macon, Georgia Department of Transportation

The community of Pleasant Hill in Macon, Georgia, was bisected by the construction of I-75 in the early 1960s. Forty years later, proposed improvements to the I-16/I-75 interchange had the potential to adversely impact Pleasant Hill once again. The study of proposed improvements, with strong support from FHWA and the GA DOT initially proposed the relocation of 26 historic homes. The final Scope of Work was updated for the re-location of only the Penniman home which was later renovated to house a community center.

14,878 838

Cost ($) $9,297,170. 61 $20,600,467.06
$35,638,638.85
$1,083,865.36 $771,525.50

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GSFIC | Annual Report 2018

CONSTRUCTION PROJECTS COMPLETED IN FY2018

Project Information DOT-081 B2 Locations 87 and 88 Dublin, Georgia Department of Transportation DOT-081 B3 Locations 5, 6, 105 Various Cities, Georgia Department of Transportation GBI-053 Atlanta Morgue Decatur, Georgia Georgia Bureau of Investigation
GDA-035A2 Atlanta Farmers Market Roofing Renovations Phase 2 Forrest Park, Georgia Georgia Department of Agriculture GDC-117A Probation Officers Facility Atlanta, Georgia Department of Community Supervision
GDC-124 Metro State Prison Atlanta, Georgia Department of Corrections
GMC-010 Military Science Activities Building Milledgeville, Georgia Georgia Military College
J-181A Fine Arts Center Albany, Georgia Board of Regents

Project Scope
Demolition of the existing facilities and build two brand new facilities to replace. The new larger buildings will provide modern restroom facilities for visitors and local travelers alike.
Renovation and modernization of 3 rest stops along the I-75 and I-95 corridor. The renovation include updated lift stations, new lights, new lavatory fixtures, paint, updated flooring and HVAC systems.
The expansion of Georgia Bureau of Investigation's Morgue and Annex office renovations at the GBI headquarters facility in Decatur, Georgia. The Morgue expansion consists of expanded refrigerated storage areas within the Morgue, receiving and release modifications, modifications to the examination areas, secured and unsecured storage, private and open office areas, break and conference rooms. The Annex portion of the project included office renovations and finishes upgrades.
The Atlanta State Farmers Market Refrigeration Warehouse buildings B, C, D, F, G, Cannery, and Hamper House had roof leaks causing food safety issues for Tenants who receive and ship sensitive food items. The existing Polyurethane Foam roofs received new polyurethane foam roof with granular coating, new edge flashing, gutters, and downspouts.
An existing building was renovated to house the new Pardons and Parole Personnel (now the Department of Community Supervision) and management staff . The use of open office areas and cubicle furniture was utilized to maximize efficient use of available space. This functional configuration will allow flexibility for future rearrangement of the space.
Interior demolition and reconstruction of Metro State Prison included renovation of over 150,000 sf of existing space. The total gross square footage of approximately 200,848 sf was split into two phases of construction as part of its re-development for the Georgia Prisoner Re-entry Initiative (GA-PRI). The renovation offers 356 beds, multiple offices and classroom spaces, upgrades to all building services including mechanical, electrical, plumbing, fire protection and electronic security. It also included a new roof, window replacement, abatement package, and site improvements.
New construction of a 13,515 sf building, for the Military Science Department of the Georgia Military College, in Milledgeville, Georgia. The one and half story building designed and constructed to provide a forty (40) year lifespan. Building includes faculty and administration offices, classrooms, cadet room, locker rooms and showers.
The new Multi-Purpose Academic Center (MPAC) replaces Holley Hall which is currently located in the flood plain and provides much needed space and technology for departments currently housed in Holley Hall. New academic spaces are provided for the following departments: Music, Theater, Art, English and Modern Languages and Mass Communications.

Size(sf) 8,148 12,000 16,450
217,800 42,814
200,848
13,515 80,279

Cost ($) $3,769,238.69 $4,110,586.97 $6,429,388.52
$2,950,739.21 $3,579,943.01 $24,276,308.71
$2,895,777.64 $23,199,584.02

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GSFIC | Annual Report 2018

CONSTRUCTION PROJECTS COMPLETED IN FY2018

Project Information J-237 Turfgrass Research and Education Facility Griffin, Georgia Board of Regents
J-239 GCSU Historic Beeson Hall Renovation Milledgeville, Georgia Board of Regents J-240A Savannah State University Science and Technology Facility Savannah, Georgia Board of Regents
J-242 Baldwin Hall Expansion and Renovation Athens, Georgia Board of Regents
J-258 Roosevelt Warm Springs Health Facility Improvements Warm Springs, Georgia Board of Regents

Project Scope
A New Turfgrass Research & Education Facility constructed on the University of Georgia's Griffin campus. The facility houses the Turf Science Research and Education Building complete with modern laboratories, offices, conferencing, and classroom space to support eight Turfgrass scientists, their staff, post docs, visiting scientist and graduate students. In addition to the research and education facility, the project includes a new greenhouse and headhouse complex to support the Griffin campus Turfgrass research and breeding efforts.
Historic Beeson Hall was one of Georgia College's oldest "dormitories" and is now the site for academic offices and additional academic support facilities.

Size(sf) 28,516
33,750

This project consists of two separate buildings, the main building on the Savannah State University campus is for the College of Science & Technology. This building is a research Facility that houses laboratories for six existing degree programs for the College of Science and Technology. The facility will include faculty offices, teaching laboratories, and research labs for the following existing degree programs: Environmental Science, Chemistry, Forensic Science, Electrical Engineering Technology, Civil Engineering Technology, and Computer Science Technology. The second building is a research facility that supports the Marine Science program; this building also has a dock associated with it.
The University of Georgia added 21 new offices to Baldwin Hall to accommodate 42 teaching assistants, three new classrooms accommodating 15 to 20 students each, and two new ADA accessible restroom facilities on each floor. These spaces address current deficiencies of space available for the School of Public & International Affairs (SPIA) graduate programs and instruction spaces. This project included 10,800 sf four story addition to the 53,200 sf Baldwin Hall (1938). It will also address interior refurbishments and renovations throughout the existing four stories of the historic Baldwin Hall facility. These renovations included repainting, flooring replacement and upgrades to the aged mechanical and electrical systems were also a part of the enhancements to the existing facility.
This Project renovated the Inpatient Rehabilitation Hospital (IRH) and the Long Term Acute Care Hospital (LTACH) for purpose of sustaining, enhancing, and expanding the services provided by these hospitals. The project also included the creation of a new central energy plant serving both Buildings. The Project provided enhanced patient services by offering 24 all private LTACH beds and 30 all private IRH beds. The renovation also includes ventilator rooms, bariatric rooms and isolation rooms, all upgraded to current standards. All building services including mechanical, electrical, plumbing, fire protection and medical gas systems have been brought up to code in both buildings. The project also includes site work for improved site arrival sequence and a new main entrance for the hospitals.

29,941 15,775 72,040

Cost ($) $11,490,142.11 $11,089,337.20 $18,562,882.28
$8,711,683.57
$25,892,916.31

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GSFIC | Annual Report 2018

CONSTRUCTION PROJECTS COMPLETED IN FY2018

Project Information J-264 University of Georgia Center for Molecular Medicine Athens, Georgia Board of Regents
J-266 UNG Convocation Center Dahlonega, Georgia Board of Regents
J-272A Clayton State University Morrow, Academic Core Renovation Morrow, Georgia Board of Regents J-273 Student Services & Success Center - Atlanta Metropolitan State College Atlanta, Georgia Board of Regents
SBE-030 New Dining Hall - FFA/FCCA Camp Covington, Georgia Department of Education TCSG-327E Campus Support Building, Hall County Campus Gainesville, Georgia Technical College System of Georgia Grand Total (24 records)

Project Scope
The project includes an addition to UGA Complex Carbohydrate Research Center (CCRC) that houses the Center for Molecular Medicine (CMM). There are thirteen laboratories, along with shared support space (cell culture facilities, environmental rooms, microscopy space), faculty offices, a conference room, and vivarium.
The project consisted of new construction associated with the Convocation Center consisting of: Academic Offices, Classrooms, and Clinic Lab Space, Arena, and Building Support Spaces. The Health and Physical Education (HPE) and Military Science academic programs are supported by this project. The project also includes renovation of existing space within historic Memorial Hall.
The project consisted of roof replacement for the Arts and Sciences, Natural and Behavioral Sciences and the Athletic Center buildings.
This project created a "one-stop-shop" where all of the required student services are contained in one location. This is a comprehensive facility for student admissions, registration and orientation communally located, that includes a main lobby, waiting area, help desk with staff from multiple units/ departments, self-help computer kiosks, shared personnel resources, meeting spaces, with consideration to be given to circulation, way-finding throughout the facility.
Construction of a new FFA/FCCLA Leader ship Center and Dining Hall that includes an auditorium/gym, restrooms and storage.
Lanier Technical College Campus Support Building - central energy plant (chillers only), economic development, and ammonia refrigeration program.

Size(sf) 44,000 19,204
66,137 24,313
29,000 33,962 1,217,188

Cost ($) $23,862,976.23
$2,956,322
$1,826,900.24 $6,045,000.00
$10,106,294.82 $10,871,338.56 $306,811,563.53

Student Services & Success Center, Atlanta Metropolitan State College, Photo provided by Gardner Spencer Smith Tench & Jarbeau @ Kelly Holtz Photography

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GSFIC | Annual Report 2018

CONSTRUCTION FEATURE STORIES

SAVANNAH STATE UNIVERSITY SCIENCE AND TECHNOLOGY FACILITIES

This project consisted of the design and construction of approximately 47,000 SF of research facilities that house laboratories for six existing degree programs in the College of Science and technology including: Marine Sciences; Environmental Science; Chemistry; Forensic Science; Electrical Engineering Technology; Civil Engineering Technology; and Computer Science Technology. Specifically, the project involved the design and construction of two separate facilities on separate properties. The scope of work on the main campus consisted of the design and construction of a 2-story, 29,848 SF Science and Technology building beside the existing Kennedy Fine Arts Building near North Tompkins Road which includes teaching, research and support lab spaces as well as offices, conference rooms and classrooms. The labs in the main campus building included: structures, civil materials, soil mechanics, and fluid mechanics. Lab equipment included: tilting flume, hydraulics tank, aerobic digester, anaerobic digester, sedimentation tank, gantry crane, and MTS material testing machines.
The offsite property site scope of work included design and construction of a new 17,738 SF Marine Sciences, Deep Water Site facility on an acquired 3.43-acre commercial waterfront property formerly known as the Italian Club at Livingston Avenue featuring an 800' long dock. Spaces included teaching, research and support lab spaces as well as offices, conference rooms and classrooms which will be used for teaching and researching dolphins, fish ecology, environmental toxicology and coastal biophysics. Project challenges included the design and construction of two concurrent projects in separate locations, design of a saltwater piping system, design and permitting of an 800' long dock to provide deep water access for the marine science program, and off-site sanitary sewer connections all of which was successfully managed, mitigated and completed on time during a construction period delayed by two named hurricanes. Ultimately, this project resulted in the successful completion of Savannah State University's 46th building located on its historic 200-acre campus nestled in coastal Georgia.

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GSFIC | Annual Report 2018

Location Savannah, Georgia
Completion September 2017
Photos courtesy of CPPI @ John Jernigan Photography

DEPARTMENT OF HUMAN SERVICES GWINNETT COUNTY DEPARTMENT OF HUMAN

The Department of Human Services was looking for a building that would house the Department of Family and Children Services and Child Support Services in one building. Prior, these two departments were housed in multiple offices throughout the county. The goal was to combine these multiple sites, with their different operation models, and storage requirements into one building for the convenience of the community. During the programming phase, it became apparent that these two departments operate separately and independently from each other thus requiring duplicate spaces to satisfy the needs of each department. Its main features are a state-of-the-art client service center with interview rooms, client portals, navigation assistance, and training rooms. Additionally, a Judicial Hearing room, visitation rooms, fingerprinting, DNA sampling, and computer training rooms are provided. The design will accommodate over 400 employees and have the ability to serve over 200 clients a day. A secure parking deck for 400 cars is a part of the 4.5 acre site design. Underground storm water detention is built into the parking deck structure.

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GSFIC | Annual Report 2018

Location Lawrenceville, Georgia
Completion July 2017
Photos ourtsey of @ Fred Gerlich Photography

UNIVERSITY OF NORTH GEORGIA CONVOCATION CENTER

The University of North Georgia Convocation Center is a new building located on the southern side of the Dahlonega campus. It is programmed as multi-use academic and convocation event space. The project also includes renovation of 15,000 SF of existing space within historic Memorial Hall.
The Convocation Center is located atop a low knoll along the southern bypass south of the Gaillard and Patriot Hall housing buildings overlooking the Drill Field. The new building includes modern, flexible event/athletic space for 4,000 guests with much-needed modern instructional and meeting spaces for academic and community events. Academic Offices, Classrooms, Athletic Training Clinic Lab Space, Arena and Building Support Spaces support the Health and Physical Education and Military Science academic programs.
The initial space list includes facilities to support the following range of events and programs: Physical Education Courses, Admission Open Houses, Student Orientations, Career Fairs, Graduation Ceremonies, Student Convocations, Faculty Convocations, Nursing Department Pinning Ceremonies, Student Concerts & Events, Family Day, Regional and community events that contribute to economic impact, Professional Seminars, Largescale Banquets, Youth Athletic Camps, NCAA Men's Basketball, NCAA Women's Basketball, Cheerleading and Athletic Tournaments.

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GSFIC | Annual Report 2018

Location Dahlonega, Georgia
Completion April 2018
Photos courtesy of Juneau Construction Company

FINANCING AND INVESTMENT DIVISION REPORT

GENERAL OBLIGATION BOND ISSUANCE SUMMARY
The following table summarizes the status of authorized general obligation debt in FY2018. At the close of FY2017, the amount of authorized but unissued debt totaled approximately $364 million. Leadership is committed to providing funding for capital projects necessary to meet the State's future needs while maintaining debt ratios that do not exceed planning limits. The FY2018 budget authorized a net increase of $1.166 billion of general obligation debt for a total amount of approximately $1.53 billion available as of July 1, 2017. On July 18, 2017 the State issued general obligation bonds which provided funding of approximately $1.155 billion for capital projects; no additional new general obligation debt was incurred subsequently, and at the close of FY 2018 the amount of authorized but unissued general obligation debt totaled $374.41 million.

Fiscal Year 2018 Activity

Budget Year

June 30, 2017 Remaining
Authorizations

FY 2018 Debt Authorizations
(HB 44)

Total Available Authorizations

Authorized Projects Funded During FY 2018

June 30, 2018 Remaining
Authorizations

FY 2013

$160,000

$160,000

$160,000

FY 2014

$14,495,000

$14,495,000

$9,190,000

$5,305,000

FY 2015

$20,395,000

$20,395,000

$10,430,000

$9,965,000

FY 2016

$106,835,000

$106,835,000

$70,995,000

$35,840,000

FY 2017

$221,790,000

$221,790,000

$112,705,000

$109,085,000

FY 2018

$1,166,215,000 $1,166,215,000

$952,000,000

$214,215,000

Total

$363,675,000

$1,166,215,000 $1,529,890,000 $1,155,480,000

$374,410,000

A summary of general obligation bonds issued during FY2018 is shown below; all bonds were sold via a

competitive bid process and are federally tax-exempt unless noted as taxable bonds. (Although the bid date

for the bonds was June 20, 2017, the bonds did not close until July 18, 2017, which makes them FY2018

transactions.)

To fund a total of approximately $1.155 billion for capital projects, the Commission issued $1.041 billion of general obligation bonds (the amount of bonds that needed to be issued was reduced by utilizing $114.465 million of premium received from the sale of the bonds). During FY2018, one series of refunding bonds - 2017Cwas issued to provide approximately $43.816 million of debt service savings as compared to the original debt service schedule on the bonds that were refunded.

Bid Date 6/20/2017 6/20/2017 6/20/2017
6/20/2017

Series

Final

True

Maturity Interest Cost Issue Amount Winning Bidder

2017A Tranche 1

2/1/2027

1.46% $346,825,000 Morgan Stanley

2017A Tranche 2

2/1/2037

3.06% $420,740,000 Bank of America Merrill Lynch

2017B Taxable

2/1/2036

2.99% $273,450,000 Wells Fargo Bank

Total Bonds Issued (for New Capital Projects) $1,041,015,000

2017C Refunding

7/1/2030

1.90% $348,630,000 Morgan Stanley

Total Bonds Issued (for Refunding) $348,630,000

Grand Total Bonds Issued During Fiscal Year 2017 $1,389,645,000

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GSFIC | Annual Report 2018

STATE OF GEORGIA CAPITAL PROJECTS FUNDED BY GENERAL OBLIGATION BONDS
ISSUED DURING FISCAL YEAR 2018

Agency Board of Regents, University System of Georgia Department of Education Technical College System of Georgia Department of Transportation Georgia Building Authority Georgia World Congress Center (Authorized through the Department of Economic Development) Department of Juvenile Justice Department of Corrections Georgia Bureau of Investigations Department of Natural Resources Department of Revenue Public Libraries (Authorized through the Board of Regents) Department of Behavioral Health and Development Disabilities Agricultural Exposition Authority (Authorized through the Department of Agriculture) Georgia Environmental Finance Authority Soil and Water Conservation Commission Department of Veterans Service Georgia Vocational Rehabilitation Agency Department of Agriculture Department of Public Safety Jekyll Island-State Park Authority Georgia Public Telecommunications Commission (Authorized through the Board of Regents) Department of Human Services Department of Defense Stone Mountain Memorial Association Department of Public Safety Public Safety Training Center Georgia State Financing and Investment Commission Department of Community Supervision Total Projects Funded by General Obligation Bonds

Amount $244,795,000 $230,225,000 $ 157,530,000 $ 110,020,000 $ 106,500,000 $ 55,000,000
$44,940,000 $ 43,725,000 $38,285,000 $ 27,570,000 $ 24,000,000 $ 13,875,000 $ 12,150,000
$ 8,780,000 $ 8,000,000 $ 6,500,000 $ 6,000,000 $ 3,800,000 $ 3,400,000 $ 1,925,000 $ 1,600,000 $ 1,500,000 $1,325,000 $ 1,120,000 $1,000,000
$ 895,000 $ 680,000 $ 340,000 $1,155,480

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GSFIC | Annual Report 2018

OUTSTANDING GENERAL OBLIGATION DEBT
The table below shows that the total amount of outstanding general obligation debt at the end of FY2018 decreased by $103,335 million from the total amount outstanding at the end of FY2017.

Total Bonds Outstanding as of June 30, 2017 Add: Bonds Issued in FY 2018 to Fund Projects* Less: Scheduled Principal Maturities Durring FY 2018 Less: Net Effects of Refunding Bonds Issued Durring FY 2018 Less: Open Market Bond Acquisitions/Early Retirements Durring FY 2018 Total Bonds Outstanding as of June 30, 2018

$8,863,705,000 $1,041,015,000 $(873,185,000)
$(37,295,000) $(200,000)
$8,994,040,000

*The Commission utilized $114,465 million of premium received from the sale of the series 2017A and 2017B bonds to reduce the amount of bonds that needed to be issued to fund approximately $1,155 billion in projects.

OUTSTANDING GENERAL OBLIGATION DEBT SERVICE
The table below shows the future debt service requirements for general obligation debt outstanding as of June 30, 2018. The maturity schedule for the debt will retire 41% of the total outstanding principal within five years and 72% of the outstanding principal within ten years.

Fiscal Year 2019 2020 2021 2022 2023 2024-2037 Total

Principal $833,470,000 $789,750,000 $757,015,000 $683,105,000 $636,440,000 $5,294,260,000 $8,994,040,000

Interest $377,356,051 $340,413,570 $305,165,898 $271,699,358 $242,417,769 $1,167,990,806 $2,705,043,452

Total Debt Service $1,210,826,051 $1,130,163,570 $1,062,180,898 $954,804,358 $878,857,769 $6,462,250,806
$11,699,083,452

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GSFIC | Annual Report 2018

GENERAL OBLIGATION BONDS OUTSTANDING AND AUTHORIZED INDEBTEDNESS

Agency Name

Board of Regents of The University System of Georgia

Department of Education

Department of Transportation

Technical College System of Georgia

Georgia Environmental Finance Authority

Georgia Ports Authority

Department of Natural Resources

Department of Corrections

Georgia World Congress Center

Department of Juvenile Justice

Georgia Building Authority

Department of Economic Development

Public Libraries

Department of Human Services

Georgia Bureau of Investigations

Department of Community Affairs

State Road and Tollway Authority

Jekyll Island-State Park Authority

Department of Agriculture

Department of Behavioral Health and Developmental Disabilities

Soil and Water Conservation Commission

Department of Defense

State Forestry Commission

Georgia Public Safety Training Center

Department of Revenue

Department Public Safety

Georgia Agricultural Exposition Authority

Georgia Regional Transportation Authority

Department of Veterans Services

Department of Drivers Services

Department of Labor

Georgia Research Alliance

Georgia Vocational Rehabilitaion Agency

Department of Community Health

Department of Public Health

Other

Total General Obligation Bonds

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GSFIC | Annual Report 2018

As of June 30, 2018

Outstanding Bonds

FY 2018 and Prior Years Debt Authorized But Not Incurred

$2,387,499,039

$2,324 ,855,358 $320,310,000

$1,121,206,425

$842,409,887

$9,000,000

$375,102,371

$219,031,083

$256,241,436

$241,783,671

$167,011,004

$148,158,060

$89,107,135

$77,675,200

$78,280,473

$62,819,722

$56,548,115

$1,860,000

$61,266,976

$54,170,000

$53,096,362

$53,067,214

$38,053,920

$4,640,000

$28,594,317

$23,736,373

$19,518,879

$18,452,751

$17,660,930

$25,000,000

$17,494,642

$13,225,157

$10,287,829

$9,611,641

$8,206,043

$7,903,455

$6,959,331

$6,570,061

$6,181,826

$2,660,607

$11,100,000

$14,592,161

$2,500,000

$8,994,040,000 $347,410,000

FY 2018 Budget Bill $357,030,000 $304,915,000 $112,475,000 $114,085,000 $16,000,000 $35,000,000 $33,390,000 $2,500,000 $15,000,000 $7,000,000 $1,000,000 $6,300,000 $13,660,000 $2,150,000 $10,890,000
$100,000,000
$1,100,000 $6,000,000 $5,500,000 $4,475,000 $2,030,000 $4,950,000
$3,350,,000
$215,000 $4,300,000 $1,190,000 $5,000,000 $1,030,000
$12,525,000 $1,184,060,000

OTHER COMMISSION DEBT APPROVALS

The Commission is responsible for approving all debt obligations of state authorities and agencies. During FY2018 the Commission approved the following:

Agency/Authority

Principal Amount

Description

Georgia Housing and Finance Authority
State Properties Commission

Up to $250 million Single Family Mortgage Revenue Bonds for Calendar Year 2018
Up to $140 million FY2019 Contract Value Authority for Multi-Year Rental Leases

Board of Regents
Georgia Environmental Finance Authority

Up to $15 million FY2019 Contract Value Authority for Multi-Year Rental Leases
Up to $55.3 million FY2019 Contract Value Authority for Multi-Year Guaranteed Energy Savings Performance Contracts

There also are several debt authorizations which were approved by the Commission in prior years which have not been fully issued and remain in effect until they are utilized by the agency/authority, canceled by the Commission, or the original purpose for the authorization is no longer applicable. These are shown in the following table:

Agency/Authority State Road and Tollway Authority

Remaining Principal Amount

Description

Up to $611 million Issuance and Sale of GARVEE Revenue Bonds

Georgia Higher Education Facilities Authority

Up to $39 million Issuance and Sale of GARVEE Revenue Refunding Bonds
Up to $100 million Issuance and Sale of Revenue Refunding Bonds

Student Services & Success Center - Atlanta Metropolitan State College, Photos courtesy of GSSTJ, @ Kelly Holtz Photography

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GSFIC | Annual Report 2018

FISCAL YEAR 2018 EARNINGS
Fiscal Year 2018, as had been the case for the preceding several fiscal years, proved to be challenging for investors who were seeking higher yields on their investments while also maintaining a low risk investment strategy. GSFIC contracts with the Office of the State Treasurer for management of the GSFIC bond portfolios with a very conservative investment strategy that emphasizes preservation of principal while meeting GSFIC's income and liquidity needs. With short-term interest rates still generally less than two percent (2%), investments were structured to provide investment income while protecting principal from loss due to any near-term increase in market interest rates. Gross interest earnings from the investment of bond proceeds of the Capital Projects Fund during FY2018 were $26.8 million.
As of June 30, 2018, 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 Total

Fair Market Value
$801,010,816 $520,554,427 $1,321,565,243

The portfolios, which had an average total investment rate of return of 1.38 percent, consisted of fixed income securities comprised of Agencies of the United States Government and repurchase agreements.

TOTAL RETURNS - CAPITAL PROJECTS FUND INVESTMENT PORTFOLIO

8.00%

7.00%
6.87%
6.00%
5.00%

5.94%

4.00%

3.00%

2.00% 1.00% 0.00%
2008

2009

2.17%
2010

1.40%
2011

0.69% 0.19%
2012 2013 Fiscal Year

0.36% 0.58%
2014 2015

0.69%
2016

0.86%
2017

1.38%
2018

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GSFIC | Annual Report 2018

EXPENDITURE OF BOND PROCEEDS

Federal arbitrage regulations apply to tax-exempt bond issues on an aggregate basis by arbitrage group (versus individual projects) and require that the State "reasonably expect" to spend down proceeds of each tax-exempt bond issue group as follows:

6-Month Requirement
5% of Bond Proceeds
Expended or Encumbered Within Six Months of Issuance

3-Year Requirement
85% of Bond Proceeds
Expended Within Three
Years of Issuance

5-Year Requirement 100% of Bond Proceeds
Expended Within Five Years of Issuance

To ensure compliance with the "spend down" regulations, GSFIC has procedures and policies in place to help agencies meet the targets at the individual project level.
During FY2018, there were four bond issue groups that reached one of the above milestone dates; all four were in compliance with the federal spend-down requirements. Details for items that did not meet the applicable spend-down requirement are provided in a separate report of FY2018 Spend-Down Results.

6-Month: 5% Expended/Encumbered

Bond Group Spend-Down Result

2017A

At 12/31/2017: 44.69% expended/encumbered

3-Year: 85% Expended

Bond Group Spend-Down Result

2015A

At 6/30/2018: 93.29% expended

5-Year: 100% Expended

Bond Group Spend-Down Result

2013A

At 12/31/2017: 100% expended

2013D

At 6/30/2018: 100% expended

Authorization/Project Details 85 items were funded, of which 35 did not meet the 5% spend-down requirement.
Authorization/Project Details 146 items were funded, of which 17 did not meet the 85% spend-down requirement.
Authorization/Project Details All $234,915,000 (which funded 51 projects) was spent by the 5-year date All $427,385,000 (which funded 101 projects) was spent by the 5-year date

Science and Technology Facility - Savannah State University, Photos courtesy of CPPI @ John Jernigan Photography

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GSFIC | Annual Report 2018

GEORGIA HIGHER EDUCATION FACILITIES AUTHORITY
The Georgia Higher Education Facilities Authority ("GHEFA"), which is administratively attached to GSFIC with the GSFIC staff serving as GHEFA staff, was created in during the 2006 Session of the General Assembly by Senate Bill 562. GHEFA is authorized to issue and have outstanding at any one point in time $500 million in revenue bonds to finance capital projects for units of the University System of Georgia ("USG") and the Technical College System of Georgia ("TCSG"). GHEFA had issued a total of $294.9 million in revenue bonds which financed a total of nineteen projects at fifteen USG institutions; all projects have been completed and are in operation. As shown in the table below, an aggregate amount of $234.125 million bonds were outstanding at the beginning of FY2018; after scheduled principal payments were made on June 15, 2018, there were an aggregate of $229.15 million GHEFA bonds outstanding as of June 30, 2018.

GHEFA Bonds Series 2009A Series 2010 Series 2015 Refunding Total

Bonds Outstanding June 30, 2017 $88,865,000 $61,975,000 $83,285,000 $234,125,000

FY 2018 Principal Payments
$(2,060,000) $(1,490,000) $(1,425,000) $(4,975,000)

Bonds Outstanding June 30, 2018 $86,805,000 $60,485,000 $81,860,000 $229,150,000

GHEFA does not expect that it will be requested by USG or the TCSG to issue additional bonds for new projects during FY 2019; however, the USG and GHEFA will continue to monitor interest rates to evaluate the potential of refunding the outstanding callable 2009A bonds during FY 2019.

Convocation Center - University of North Georgia, Photo courtesy of Juneau Construction Company

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GSFIC | Annual Report 2018

STRATEGIC INITIATIVES

STRATEGIC INITIATIVES
Financing and Investment Division One of GSFIC's strategic goals is to help maintain Georgia's triple-A bond rating, which positions the state to fund capital projects at the lowest possible interest rates at any given point in time. GSFIC released the State's annual Debt Management Plan in January 2018 to provide leadership with information to support the state capital planning and budget process and show the impact of the state's debt over multiple years. In June 2017, the PEW Charitable Trusts published "Strategies for Managing State Debt" and noted that Georgia was one of nine states that "lead the way by producing studies that give policymakers a clear understanding of their states' debt levels through, among other things, careful projections, smart benchmarking comparisons, multiple descriptive metrics, and analysis." Preparing the State's annual debt management plan continues to be a strategic initiative for FY2019.
Related to the goal of maintaining Georgia's triple-A bond rating, the F&I Division will continue to enhance its presentation process for providing the rating agencies with a comprehensive review of the financial results of the prior fiscal year, a status update of the current fiscal year, and the projections for the upcoming fiscal year, including significant matters which could have a material impact on the State's future financial results. This would be done as soon as possible in the calendar year in order that any developing issues that the rating agencies might have can be dealt with before the rating process for a new bond issue begins.
Improving communications with both the current bondholders and potential purchasers of the State's general obligation bonds will receive increased attention and action during FY2019. As the financial markets continue to evolve and other alternatives to Georgia's bonds come into the market, making sure that the "buy side" receives the information it requires in a timely manner is necessary for Georgia's bonds to continue to attract buyers in both the primary and secondary markets at the best (e.g. lowest) possible interest rates.
Since the F&I Division is responsible for documenting compliance with federal tax regulations relating to tax-exempt bonds as well as GSFIC policy requirements, such as compliance with federal arbitrage rules and rebate requirements for tax-exempt bonds, the timely expenditure of bond proceeds (federal spend-down requirements), and post-issuance compliance related to the use of general obligation bond financed facilities especially as relates to any private business use monitoring, during FY2019, it will continue to expand and enhance its post-issuance compliance activities. Monitoring private business use of these facilities is necessary to ensure that private business use does not exceed the allowable limits, and that if necessary, appropriate remediation action is taken to ensure the taxexempt status of the bonds is not placed in jeopardy.

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GSFIC | Annual Report 2018

Construction Services To continue furnishing GSFIC Project Managers with the necessary tools to effectively manage and analyze the project`s Design and Construction Schedules, all Project Managers and Project Executives will embark on yearlong (once a month) Construction Scheduling training. This scheduling training will be conducted at GSFIC's office one Monday of each month for at least one year and will cover the fundamentals of scheduling including the meaning and significance of terminology used in scheduling. Project Management personnel will also be trained on the different tools used to develop schedules and will gain the ability to read and interpret forensic reports on the quality of the schedules provided by the Construction Professionals.
Furthermore, the merging of the current Contract Compliance Specialist (CCS) handbook and the Project Management Handbook into a single cohesive document continues. The current separate handbooks define the roles of our CCS and Project Management staff. The continued goal is to consolidate both documents into a single handbook to remove any conflicting information, while at the same time, incorporating the e-Builder processes. With the addition of a Director of Design Review Services, Construction Services will be revising the current Design Review Process Guide to incorporate e-Builder processes and to make it appealing to a broader cross section of users.
Enterprise Project Management Solution GSFIC will continue the long term strategy to improve operational efficiencies, while driving productivity and delivering best in class customer service through e-Builder. In FY2019, GSFIC will launch a new Dashboard based on the Business Intelligence module in e-Builder. A new Cash Flow feature has been implemented on a test project. The Cash Flow feature combines the e-Builder schedule and the e-Builder cost module to provide a more accurate projection of a project's progress. The Details page has been reorganized to bring fields of similar type together to make for a more logical layout. A new process to capture historical cost data is being designed. Currently, various project component costs are unavailable. This process will provide accurate information to our clients for better future budgeting and estimating.

Center for Molecular Medicine, University of Georgia, Photo courtesy of @ Jim Roof Photography

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GSFIC | Annual Report 2018

Information Technology The GSFIC Information Technology Department will continue its ongoing efforts to upgrade computer operating systems to Windows 10 and upgrade the network security monitoring systems. Upcoming plans include upgrading the Microsoft Office programs suite and the agency's network server operating systems.
Building Information Modeling The goal for FY2019 remains to improve the outcomes of construction projects by enhancing communication of design intentions to the end-users through traditional animations and renderings as well as virtual reality on current and upcoming projects. Upcoming projects include the Augusta State University's College of Science and Mathematics, the Savannah Trade and Convention Center Expansion, and UGA's Interdisciplinary Stem Research Building. An initiative to research data mining of all past GSFIC projects will be conducted to help with Business Intelligence tools and aid in future cost estimations by building type and square footage. A collaboration with Georgia Tech's Digital Building Lab applying machine learning construction costs and estimations using GSFIC's historical project data as training data started in the Fall of 2018 and will continue for the fiscal year.
Procurement Procurement desires to increase its comprehensive technical services for all state agencies using bond funding. This coming year, the department intends to promote and strengthen those relationships through increased and strategic networking outreach activities including participating in key conferences, tradeshows and training events.
As a continued goal from the previous fiscal year, Procurement Services also intends to continue the work on the Procurement Process Guide documenting established practices being used by GSFIC for the procurement of architectural and engineering services, construction professionals, furniture, fixtures and equipment (FF&E), and other related services as needed to support GSFIC managed construction projects.
Human Resources During FY19, Human Resources intends to introduce the Advanced Leadership Program (ALP) to all managers and supervisors. The ALP will be mandatory participation for all managers and supervisors that have successfully completed the State Property Officer's Leadership Boot Camp and have put the skills taught into practice for a minimum of one (1) year. The ALP is filled with intensive coaching, developmental opportunities, and information sharing that will prepare participants to meet future leadership challenges in the workforce.
State Americans with Disability Act (ADA) Coordinator's Office During the past year, the State ADA Coordinator's Office has promoted inter-agency and intra-agency cooperation and strengthened the coordinating link for ADA compliance between State agencies by participating in four GSFIC Kick-Off meetings and conducting fifteen on-site detailed reviews of multiple existing facilities or newly completed facilities, including multi-day reviews of the Mercedes Benz Stadium, Jekyll Island Authority facilities and the University of Georgia School of Law. During FY19, the office will continue to implement these strategies to ensure internal and cross-system ADA coordination.

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GSFIC | Annual Report 2018

Georgia State Financing & Investment Commission 270 Washington Street | Second Floor Atlanta, Georgia 30334 404.463.5600 | www.gsfic.georgia.gov November 2018