APRIL 13, 1988 MINUTES
M I N U T E S
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
April 13, 1988
'The SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL was called to order by
i4ayor Robert G. Jones in the Council Chamber, City Hall Building, on Wednesday,
April 13, 1988, at 12:00 NOON.
COuncil Members Present:
Albert W. Balko, Robert E. Fentress, Harold
Heiscliober, i4ayor Robert G. Jones, Reba S. McClanan,
Nancy K. Parker and Vice Mayor @eyera E. Oberndorf
Council Members Absent:
John A. Baum
BELrbara M. fienley (ENTERED: 12:10 P.M.)
John D. Moso
John L. Perry
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Item I.B. ITEM # 29191
Mayor Robert G. Jones -ead the letter statirg the ourpo,9e of the SPECIAL
SESSION:
In accordance with City Code Section 2-21 and by
the authority vested in me, I hereby call a SPECIAL
SESSION of the VIRGINIA BEACH CITY COUNCIL in the
Council Chambers, City Hall Building, on Wednesday,
April 13, 1988, at 12:00 NOOI@ for the purpose of
AWARDING @f a Low Bid on $40,950,000 General
Obligation Fublic Improvement Bonds, Series of 1988
A.
s/Robert G. Jones
Mayor
- 3 -
Item I.C- ITEM # 29192
RECESS INTO
EXECUTIVE SESSION
In accordance with Section 2.1-344, Code of Virginia, as amended, and upon
motion by Councilman Fentress, seconded by Councilman Heischober, City Council
RECESSED intD EXECUTIVE SESSION for discussi,)n ol- PUBLIC FUNDS INVESTMENT
(12:10.)
1. PU T: The @-nvesting of pblic funds where competition or
bargaining is involved, where if made public initially the financial
interest of the governmental unit w,)uld be adversely affected.
Voting: 7-0*
Council Members Votin., Aye:
Albert W. Balko, Robert E. Fentress, Harold
Heischober, Mayor Robert G. Jones, aeba S. McClanan,
Vice Mayor Meyera E. Oberndorf and Nancy K. Parker
Council Members Voting -i4ay:
iNone
Council Members Absent:
John A. Baum, Barbara M. H(,'nley, Tohn D. @loss and
John L. Perry
*Verbal Vote
Barbara M. Henley (ENTERED: 12:12 P.M.)
z@
Item T-C. 1 .
RECONVENE TTEM 29193
Mayor Robert G. Jones RECONVENED the SPECIAL SESSION of the VIRGINIA BFACH
CITY COUNCIL in the Council Chambers, City Hall Building, on Wednesday, ADril
13, 1988, at 12:45 P.M-
Council Members Present:
Albert W. Balko, Robert E. Fentress, Harold
Heischober, Barbara M. Henley, Mayor Rober@ G. Jones,
Reba S. McClanan,41 Nancy K. Parke- and Vice Mayor
Meyera E. Oberndorf
Council Members Absent:
John A. Baum, Iohn D. Moss and John L. Perry
"Council Lady McClanaii was excused at 12:4-@ P.%I-
Item I-D.
REPORT OF FINANCIAL ITEM 29194
ADVISOR
The City Manger introduced Giles Dodd, Agsistant C4-ty Manager for
Administration and Finance Director, who had received the BIDS on the
$40,950,00 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS at 11:00 A.M. April 13,
1988. Giles Dodd advised Seven (7) Bids were received.
The lowest bid was ACCEPTED from 14ANUFACTURERS fiANOVER at 6.8647% True Interest
Cost. It was learned only one individual will purchase the entire $40,950,000
issue. The Bids range for a True Interest Cost of 6.8647% to 7.0219-. which
represented .16%.
Giles Dodd introduced Percy R. Aguila, Jr., Government Finance Research Center,
and Stephanie R. Lewis, Vice President, Government Finance Associates and the
City's Financial Advisor. Stephanie R. Lewis advised City Council there are
two considerations in the sale of the $40,950,()00 issue and both were positive
for Virginia Beach:
(1) MARKET PLACE: Seven (7) Bida with an Eighth
non-qualified due to the lateneso
of the hour presented; spread
from best to least being 16/100
point in range; all bidders were
liail Street; only one purchaser
(2) CITY CREDIT: This is a continuing sale and
almost the same as last time; AA
rati-ng by botn Moodys and
Standards Poor,'3; City in good
financial health and fiscai
health
Item IV-E.l.
CITY MANAGER'S RECOMMENDATION TTEM 29195
The City Manager distributed his letter of RECOMMENDATION. Said copy is hereby
made a Dart of the proceedings.
Syndicate Headed ay True Interest Cost
Manufacturers Hanover 6.8647%
Chase Manhattan 6.8936
Goldman Sachs & Co. 6.9714
J. P. Morgan Securities 6.9802
First National Bank of Chicago 7.0175
Bear, Stearn & Co., Inc. 7.0197
Smith Barney, Harris Upham & Co. 7.0219
Item IV-F.l.
AWARDING OF LOW BID ITEM 29196
Upon motion by Councilrqan Fentress, seconded by Councilman Heischober, City
Council ADOPTED a Resolution ACCEPTING the LOWFST BID and AWARDING same to
MANUFACTURERS HANOVER at 6.8647% on the $40,950,000 issue of GENERAL OBLIGATION
PUBLIC IMPROVEMENT BONDS, Series 1988A.
Voting: 7-011
Council Members Voting Aye:
Albert W. Balko, Robert E. Fentress, Harold
Heischober, Barbara M. Henley, Mayor Robert G. Jones,
Nancy K. Parker and Vice Mayor 14eyera E. Oberndorf
Council Members Abseiit:
John A. Bau-,i, Reba S. McClanan, John D. lloss and
John L. Perr,,
"Verbal Vote
Item I-F.2.
MINIBONDS TTEM 29197
Giles G. Dodd, City iqanager for Administration, presented the $2-MILLION
GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, Series 1988B Capital Appreciation
MINIBONDS) and recomnended an inter,st r,t, ,f 5.50% be set for the sale on
April 21, 1988.
These MINIBONDS would have a three year maturity and be limited to no more than
ten (10) Five Hundred Dollar ($500) Bonds for in(lividual purchase.
Item I-F-3-
MINIBONDS IT]-24 29198
Upon motion by Councilwoman Parker, seconded by Counciiman Heischober, City
Council ADOPTED the Resclution and established the rate of interest fcr the
$2-MTLLION issue of GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, Series 1988
(Capital Appreciation MINIBONDS) at Five and One-Half Percent (5.5%).
Voting: 7-01@
Council @lembers Voting Aye:
Albert W. Balko, Robert E. Fentress, Harold
Heischober, Barbara l',. Henley, Mayor Robert G. Jones,
Nancy K. Parker and Vice Mayor 14eyera E. Oberndorf
Council Members Absent:
John A. Baum, Reba S. @Icelanan, John D. Moss and
John L. Perry
*Verbal Vote