SUBSTITUTE RESOLUTION NO. RS2003-67


A resolution supplementing and amending a resolution of The Metropolitan Government of Nashville and Davidson County and awarding the sale of the Metropolitan Government’s General Obligation Multi-Purpose Bonds, Series 2003.

WHEREAS, on October 21, 2003, the Metropolitan County Council (the "Council") of The Metropolitan Government of Nashville and Davidson County (the "Metropolitan Government"), adopted Resolution No. 2003-37 (the "Bond Resolution"), authorizing the issuance of up to $140,000,000 of general obligation multi-purpose bonds (the "Bonds") to finance the retirement of a portion of the Metropolitan Government’s General Obligation Commercial Paper; and

WHEREAS, the Metropolitan Government has published a notice of sale of $128,350,000 of the Bonds (the "Notice of Sale") in accordance with Tennessee law, bids have been received for the Bonds and it is in the best interest of the Metropolitan Government to award the sale of the Bonds to the lowest bidder; and

WHEREAS, it has been determined that it is advantageous to the Metropolitan Government to make certain changes to the terms of the Bonds as permitted by the Bond Resolution in order to sell the Bonds on terms most favorable to the Metropolitan Government;

NOW, THEREFORE, BE IT HEREBY RESOLVED by the Metropolitan County Council of The Metropolitan Government of Nashville and Davidson County, as follows:
1. Receipt of Bids. The Metropolitan Government received the following bids for the Bonds:

NAME OF BIDDER                       TRUE INTEREST RATE

Morgan Keegan & Company, Inc.         4.193120%
Goldman, Sachs & Co.                       4.194140%
Merrill Lynch & Co                             4.195555%
UBS Financial Services                       4.198337%
Citigroup Global Markets Inc.              4.205893%
Stephens Inc.                                  4.232661%
RBC Dain Rauscher                            4.240484%


2. Successful Bidder. The Council has reviewed all bids for the Bonds and the bid of Morgan Keegan & Company, Inc. (the "Purchaser") is the bid which results in the lowest true interest cost to the Metropolitan Government, and in all respects complies with the Notice of Sale.

3. Award of Bonds. It is hereby ordered that the bid of the Purchaser attached hereto be and the same is hereby accepted, and the Council hereby awards and sells to the Purchaser the Bonds in the aggregate principal amount of $122,100,000, at a purchase price of $127,642,843.90, representing the principal amount of the Bonds, plus net original issue premium of $6,157,067.95, less underwriter’s discount of $614,224.05 (from which the underwriter will pay premium for bond insurance for the 2022 and 2023 maturities of the Bonds).

4. Terms of Bonds. The Bonds shall have the terms set forth on Schedule A attached hereto.

5. Amendments. Section 3.3(a) of the Bond Resolution and the form of the bond attached thereto are hereby amended to conform to the terms of the Bonds set forth on Schedule A attached hereto. Otherwise, the Bonds shall be issued in accordance with the Bond Resolution.

6. Good Faith Deposit. The Director of Finance of the Metropolitan Government is hereby authorized and directed to accept as the good faith deposit for the Bonds awarded hereunder the Good Faith Deposit Financial Surety Bond issued by Financial Security Assurance Inc.

7. Conflicting Resolutions. All other resolutions and orders, or parts thereof, in conflict with the provisions of this resolution are, to the extent of such conflict, hereby repealed.

8. Effectiveness. This resolution shall be in immediate effect from and after its adoption, the welfare of The Metropolitan Government requiring it.

Sponsored by: Brenda Gilmore

LEGISLATIVE HISTORY

Referred to: Budget & Finance Committee
Introduced: November 18, 2003
Substitute Introduced: November 18, 2003
Adopted: November 18, 2003
Approved: November 19, 2003
By: Bill Purcell