Staff Report - 5/18/09 Meeting

MEMORANDUM

TO:                  City Council

FROM:            David J. Deutsch, City Manager

SUBJECT:     Ordinance O-4-09, Authorizing and empowering the City to issue and sell general obligation bonds in a principal amount not to exceed $19,000,000 for the public purpose of funding all costs associated with the construction of a new City Hall, including site improvements, furnishings and equipment.

DATE:             May 14, 2009

            The FY2010 Budget and the Capital Improvements Program provides for the construction of a new City Hall on property owned by the City located at Evergreen Parkway and Excalibur Road, adjacent to the existing Bowie Town Center.  The building will provide office space for the City Manager’s Office, the Planning Department, the Finance Department, the Community Services Department, the Information Technology Department, City Council Chambers and meeting space for City and community groups.  A major element of the building will be to house the new City Police Department.  The majority of the lower level of the building will be devoted to police.

            Funding for the construction of the new City Hall will be provided from the proceeds of a prior sale of surplus City property ($3,040,000), cash reserves ($8,632,100), and the issuance of general obligation bonds in the amount of $19,000,000.

            Ordinance O-4-09 provides for the authority to borrow funds in a principal amount not to exceed $19,000,000.  The City’s bond counsel, Funk & Bolton, P.A.,
has prepared the attached ordinance authorizing the issuance of the general obligation bonds.  The bonds shall be sold by the solicitation of competitive bids at public sale and shall be for a term of 20 years.  The current financing schedule anticipates the bond sale to be conducted on July 7, 2009, with closing scheduled for July 21, 2009.

            Council’s approval of Ordinance O-4-09 authorizing the issuance of general obligation bonds to provide for the construction of the new City Hall is recommended.

DJD/RSP/dgp

Attachment - Ordinance O-04-09 (39 pages)