DECEMBER 16, 1980 MINUTES
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL
MAYOR J. HENRY McCOY, JR., D.D.S., Kempsville Borough
VICE-MAYOR HAROLD HEISCHOBER, At Large
JOHN A. BAUM, Blackwater Borough
F. REID ERVIN, At Large
BARBARA M. HENLEY, Pungo Borough
CLARENCE A. HOLLAND, M.D., Bayside Borough
W. H. KITCHIN, III, Virginia Beach Borough
REBA S. McCLANAN, Princess Anne Borough
DONALD W. MERRICK. Lynnhaven Borough
MEYERA E. OBERNDORF, At Large 21' CITY HALL BUILDING
PATRICK L. STANDING, At Large
MUNICIPAL CENTER
RUTH HODGES SMITH, City Clerk VIRGINIA BEACH, VIRGINIA 23456
(804) 427-.30,'
CITY COUNCIL AGENDA
ITEM I SPECIAL MEETING 12:00 Noon - 16 December 1980
Virginia Reach Council Chambers
A. CALL TO ORDER - MAYOR J. HENRY McCOY, JR.
B. ELECTRONIC ROLL CALL OF COUNCIL
C. INVOCATION: Reverend Roy R. Jackson
Retired
Virginia United Methodist Conference
D. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
E. PUBLIC HEARING
1. Acceptance of low bid for sale of $17.5 Million Public Improve-
ment Bonds.
a. Recommendation of City Manager
F. UNFINISHED BUSINESS
1. Ordinance to amend and reordain Section 29-4 of the code
of the City of Virginia Beach relating to sewer service
maintenance charges.
2. Ordinance to amend Section 37-2, 37-4, 37-29(a), 37-32
and 37-33 of the Code of the City of Virginia Beach re-
lating to water supply and rates.
G. ADJOURNMENT
1. Motion to adjourn.
F O R M A L S E S S I O N
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
The Regular Meeting of the Virginia Beach City Council, December 15,
1980, being RECESSED, RECONVENED in the Council Chambers Tuesday,
December 16, 1980, at 12:00 Noon, with Mayor J. Henry McCoy, Jr.,
presiding.
Council Members Present:
John A. Baum, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Holland, W. H. Kitchin, III,
Reba S. McClanan, Mayor J. Henry McCoy, Jr., Donald W.
Merrick, Meyera E. Oberndorf, and Patrick L. Standing
Council Members Absent:
None
INVOCATION: Reverend Roy R. Jackson, Retired
Virginia United Methodist Conference
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
December 16, 198o
- 48-
ITEM #16038
The City Clerk read to Council the City Manager's letter:
"As you are aware, we have withdrawn our offer to sell
$17.5 Million in General Obligation Bonds today. In
order to comply with our Charter requirements concerning
debt for the City of Virginia Beach, it is necessary to
incur at least $17.5 Million either in Bonds or Notes.
Also, to comply with Council's wishes to expedite the
construction of the roads in the Referendun of November
4, 1980, it is necessary to incur $4 Million in Notes
anticipating the sale of Referendum Bonds."
The City Manager invited Mr. Francis X. Fleischmann, Executive Vice
President with Wainwright and Ramsey. Mr. Fleischmann explained to
Council the public market of Bonds at present:
"As you realize, the City and all of us face a very unusual
situation this particular month and this particular year.
For a very long period of time the City has been able in an
orderly manner to bring it's annual borrowing to the public
market in December of each year. While interest rates have
fluctuated within relatively norml levels, and normal
brackets, last year appeared to be one of the highest from
an historical point of view.
Last December you issued $16,800,000. At that time the
Basic Index of interest levels in the tax exempt field was
at an all time high of 7.17. At that time, the City did
proceed with a public sale, and there were many questions
as to why the decision was made to move ahead in such a
high interest rate market. It was felt by all involved,
certainly including ourselves, that the market was still
orderly and manageable, and there was no basis for
projecting lower interest rates in the foreseeable future.
You proceeded with the sale, and your interest cost was
6.37.
Since the time of that sale last December there has only
been one week out of 52 weeks when the Index fell below
the level it was last year, and one week is not a useable
period of tirm for this type financing. So, in fact, the
decision to go ahead last year was well founded. Interest
rates have continually gone higher.
Facing the same situation this year, however, we find there
are several factors which are unique. One is a very high
volume of a Special Bond called a "Housing Revenue Bond".
By law most of these must be sold and delivered prior to
December 31st of this year. This is putting very great
pressure on the long term Bond Market. It's obvious, also,
that the normal non-tax exempt, the normal corporate
borrowing short term rates are also at historic highs.
In view of this combination of factors we advised the City
to postpone the Bond sale originally scheduled for today.
This decision has also been made by a great many other Cities
and Counties in States during the last two weeks. We believe,
therefore, the main question in front of you today is how to
proceed with your short term borrowing. Under your law you
would lose a valuable opportunity to manage your debt if you
do not issue $17.5 Million by December 31st. You would lose
a substantial amount of your borrowing capacity. For this
reason it is proposed that Notes be issued.
December 16, 19EO
- /4 9 --
The next question is when the Note should be due. Notes
traditionally are due either in three (3) or four (4) months,
six (6) months, very rarely nine (9) months, or one (1) year.
They can go longer. What we have recommended, one (1) year
as a very traditional length of time, which will give the City,
it's Council and it's Management an adequate opportunity to
review the market, and to chose a sale date which seems most
advisable. If the period were much shorter you, obviously,
wuld have less time to make such decisions. If it were much
longer we're afraid it could become a burden on your normal
annual borrowing, which would mean moving ahead year by year.
So we have recommended a one (1) year Note.
The next logical question is whether it be at a Public Sale or
a Private Sale, otherwise called a Negotiated Sale. You have
traditionally used only public sale an any significant borrowing.
One of the great advantages is that you have a visible choise,
you have a visible evidence of what borrowers will pay you.
To the extent, there is a disadvantage. It just requires you to
work in a definite time frame, which may not always be convenient.
A Negotiated Sale could be consumated more rapidly. It would
raise a question of with whom to negotiate and, precisely, how to
evaluate the interest rate which would be quoted.
We haw felt that there is still an orderly market for Notes, and
that it would be advisable for the City to move ahead with a Public
Sale on Notes as soon as possible, which it appears would be next
Tuesday. That would be a Note maturing in one (1) year, to be
offered at Public Sale next week. I believe I have covered most
of the area."
Mr. Fleischmann expressed that this is a very "unique December".
Upon motion by Councilman Holland, seconded by Councilman Standing,
City Council voted to uphold the recommendation of the City Manager
and ADOPT the Resolution for the Bond Anticipation Notes, in the
amount of $17.5 Million. (water and sewer)
Voting: 11-0
Council Members Voting Aye:
John A. Baun, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Holland, W. H. Kitchin, III,
Reba S. @Clanan, Mayor J. Henry McCoy, Jr., Donald W.
@rrick, @yera E. Oberndorf, and Patrick ]-. Standing
Council Members Voting Nay:
None
Council Members Absent:
None December 16, 1980
@ 50-
A meeting of the Council of the City of
Virginia Beach, Virginia, was held on the _ _ _ - day of
1980, at which the following members were present and absent:
PRESENT:
ABSENT:
the following Resolution was adopted by the affirmative roll call vote
of at least two-thirds of the members of the Council. The ayes and nays
being recorded in the minutes of the meeting as shown below:
MEMBER VOTE
R E S O L U T I O N
WHEREAS, the issuance and sale of $17,500,000 Public
Improvement Bonds of the City of Virginia Beach and $17,500,000 Notes
in anticipation of the issuance and sale of such Bonds were authorized
by Resolution adopted by the Council of the City of Virginia Beach on
January 21, 1980; and,
WHEREAS, pursuant to such Resolution, the City has borrowed
$10,000,000 in anticipation of the issuance and sale of such Bonds and
Bond Anticipation Notes evidencing such borrowing mature on December 30,
1980; and,
December 16, t980
. i)l-
WHEREAS, the Council considers it desirable to refund such
Notes at their maturity and to borrow an additional $7,500,000 in
anticipation of the issuance and sale of a like amount of the Public
Improvement Bonds previously authorized and for which the Bonds have
been authorized.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
1. The Council is hereby authorized to borrow $17,500,000
to refund $10,000,000 Bond Anticipation Notes maturing on December 30,
1980, and in anticipation of the sale of $7,500,000 Public Improvement
Bonds previously authorized and for the purpose of which such Bonds have
been authorized.
2. The City Manager, in collaboration with Wainwright and
Ramsey, Inc., the City's financial consultant is authorized and directed
to take all proper steps to sell the Notes either separately or in
combination with Notes heretofore or hereafter authorized for other
purposes to any institution authorized to purchase the Notes for resale
to the public or for its own account for investment purposes. Such sale
may be made either on a competitive or negotiated basis. The City Manager
is hereby authorized to execute such agreements or prepare and distribute
such notices as may be necessary to sell the Notes pursuant to this
paragraph. Such agreements and notices shall be in such form as the
City Manager shall deem to be in the best interest of the City. The
Notes shall be dated December 30, 1980, in the denomination of $25,000
or any multiple thereof, signed by the facsimile signature of the Mayor
or City Manager and by the manual signature of the Treasurer, and a
facsimile of the City's seal shall be printed on the Notes and attested
by the facsimle signature of the City Clerk. The Notes shall bear
interest payable at maturity on December 30, 1981, at such rate or rates
not to exceed 11% per year as the City Manager may determine to be in
the best interest of the City.
3. The draft of the Official Statement describing the Notes,
copies of which have been provided each member of the City Council, is
hereby approved as the Official Statement of the City. The City Manager
December 16, 1980
5 2 -
in collaboration with Wainwright and Ramsey, Inc., may make such changes
in the Official Statement not inconsistent with this Resolution as he
may consider in the best interest of the City. The City Manager shall
arrange for the delivery to the initial purchaser or purchasers of the
Notes of a reasonable number of copies of the Official Statement in
final form to be delivered to the persons to whom such purchaser or
purchasers initially sell the Notes.
4. The full faith and credit of the City of Virginia Beach
are hereby irrevocably pledged to the payment of principal and interest
on the Notes authorized hereby.
5. The proceeds from the sale of the $7,500,000 Notes shall
be held in a separate fund and used only for the purpose for which the
Bonds have been authorized.
6. This Resolution shall take effect immediately.
The undersigned Clerk of the City of Virginia Beach, Virginia,
certifies that the foregoing constitutes a true and correct extract of
the Minutes of a meeting of the Council of the
City of Virginia Beach held on the day of December, 1980, and
of the whole thereof so far as applicable to the matters referred to in
such extract.
WITNESS my hand and seal of the City of Virginia Beach,
Virginia, this day of December, 1980.
Ruth Ho ges Smit , City C er
City of Virginia Beach, Virginia
(SEAL)
JDB/cj
12/15/80
(1)
12/16/80
- ) j-
ITEM #16039
Upon motion by Councilman Holland, seconded by Councilman Standing,
City Council voted to uphold the recommendation of the City Manager
and ADOPT the Resolution for Bond Anticipation Notes, in the amount
of $4 Million.
Voting: 11-0
Council Members Voting Aye:
Jobn A. Baun, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Holland, W. H. Kitchin, III,
Reba S. @Clarien, Mayor J. Henry @Coy, Jr., Donald W.
Yierrick, @yera E. Oberndorf, and Patrick I,. Standing
Council Members Voting Nay:
None
Council Members Absent:
None
-. 54 -
A meeting of the Council of the City of
Virginia Beach, Virginia, was held on ttie day of 1980,
at which the following members were present ind absent:
PRESENT:
ABSENT:
The following Resolution was adopted by the affirmative roll call vote
of at least two-thirds of the members of -he Council. The ayes and nays
being recorded in the minutes of the meeting @ts shown below:
MEMBER VOTE
R E S O L U T I O N
WHEREAS, the contracting of a debt and the issuance of Road
Bonds of the City of Virginia Beach (the City), in the maximum amount
of $22,900,000 was approved by the qualified voters of the City of
Virginia Beach at an election held on November 4, 1980, and none of such
Bonds have been issued and sold; and,
WHEREAS, the Council considers it desirable to borrow money
in anticipation of the issuance and sale of such Bonds and for the
purpose for which the Bonds have been authorized.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
1. The Council is hereby authorized to borrow $4,000,000 in
anticipation of the issuance and sale of a like amount of Road Bonds
- 5 5-
previously authorized and for the purpose for which such Bonds have
been authorized.
2. The City Manager, in collaboration with Wainwright and
Ramsey, Inc., the City financial consultants, is authorized and
directed to take all proper steps to sell the Notes either separately
or in combination with Notes heretofore or hereafter authorized for other
purposes to any institution authorized to purchase the Notes for resale
to the public or for its own account for investment purposes. Such sale
may be made either on a competitive or negotiated basis. The City Manager
is hereby authorized to execute such agreements or prepare and distribute
such notices as may be necessary to sell the Notes pursuant to this
Paragraph. Such agreements and notices shall be in such form as the
City Manager shall deem to be in the best interest of the City. The
Notes shall be dated December 30, 1980, in the denomination of $25,000
or any multiple thereof, signed by the facsimile signature of the Mayor
or the City Manager and by the manual signature of the Treasurer, and a
facsimile of the City's seal shall be printed on the Notes and attested
by the facsimile signature of the City Clerk. The Notes shall bear
interest payable at maturity on December 30, 1981, at such rate or rates
not to exceed 11% per year as the City Manager may determine to be in the
best interest of the City.
3. The draft of the Official Statement describing the Notes,
copies of which have been provided each member of the City Council, is
hereby approved as the Official Statement of the City. The City Manager
in collaboration with Wainwright and Ramsey, Inc., may make such changes
in the Official Statement not inconsistent with this Resolution as he may
consider in the best interest of the City. The City Manager shall arrange
for the delivery to the initial purchaser or purchasers of the Notes of
a reasonable number of copies of the Official Statement in final form to
be delivered to the persons to whom such purchaser or purchasers initially
sell the Notes.
4. The full faith and credit of the City of Virginia Beach
are hereby irrevocably pledged to the payment of principal and interest
on the Notes authorized hereby.
- 5h
5. The proceeds from the sale of $4,000,000 Notes shall be
held in a separate fund and used only for the purpose for which the
Bonds have been authorized.
6. This Resolution shall take effect immediately.
The undersigned Clerk of the City of Virginia Beach,
Virginia, hereby certifies that the foregoing constitutes a true
and correct extract of the Minutes of a Regular meeting of the
Council of the City of Virginia Beach held in the day of
December, 198-, and of the whole thereof so E@ar as applicable to the
matters referred to in such extract.
WITNESS my hand and the seal of the City of Virginia Beach,
Virginia, this day of December, 1980.
ut Ho ges Smit , City C er
City of @7irginia Beach, Virginia
(SEAL)
JDB/cj
12/15/80
(1)
12/16/80
7
ITEM #16040
The City Manager advised Council the Official Statement would be
changed from "Bond Sales" to "Note Sales", and would be offered
Nationwide for a Nationwide bid. This would be the same
type of syndication as under Bond Sales except it will be a one (1)
year Note.
The City Manager further advised Council that the Bids will be
opened on Tuesday, December 23, 1980, in the Law offices of
Hunton and Williams, in Richmond, Virginia
ITEM II-F.1 ITEM #16041
Upon motion by Councilman Baum, seconded by Councilman Holland, City
Council ADOPTED the Ordinance to amend and reordain Section 29-4 of
the Code of the City of Virginia Beach relating to Sewer Service
Maintenance Charges, and to include Alternate C of the City Manager's
letter dated December 10, 1980.
"Alternate C - Water rate, as originally proposed, of $1.31 per
thousand gallons and sewer rate of $7.00 for single-family
residences. This is the rate discussed thoroughly by the
Committee, as well as the Council, and that with proper
advertising, can be explained to the public."
Voting: 9-2
Council Members Voting Aye;
John A. Baun, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Holland, W. H. Kitchin, III,
Mayor J. Henry @Coy, Jr., @yera E. Oberndorf, and Patrick
L. Standing
Council Members Voting Nay:
Reba S. @Clanan, and Donald W. Merrick
Council Members Absent:
None
- 58 -
AN ORDINANCE TO AMEND AND REORDAIN
SECTION 29-4 OF THE CODE OF THE CITY
OF VIRGINIA BEACH, VIRGINIA, RELATING
TO SEWER SERVICE MAINTENANCE CHARGES
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA
BEACH VIRGINIA:
That Section 29-4 of the Code of the City of Virginia
Beach, Virginia, is hereby amended to read as follows:
Section 29-4. System maintenance.
The following monthly maintenance rates are hereby
established with respect to all property connected directly or
indirectly to the public sewer system maintained by the City:
(a) Residential Uses Monthly Charge
(1) Single-family residences $7.00
(2) Structures with two (2) or more
family residential units, and
trailer parks:
First unit or trailer $7.00
Each additional unit or trailer $5.25
(3) Hotels and motels:
For the first room provided for
occupancy $7.00
Each additional room for occupancy $2.80
(4) Campgrounds:
For the first space provided $7.00
For each additional space
provided $2.80
(b) Nonresidential uses:
(1) For all nonresidential uses in which there is
also supplied public water service, the
maintenance charge shall be determined by the size
of the water tap through which water is provided,
as per the following schedule:
Tap Size Monthly Charge
3/4 inch $ 7.00
1 inch $ 8.75
1 1/2 inch $17.50
2 inch $26.50
3 inch $52.25
4 inch $ 87.50
6 inch $ 175.00
8 inch $ 406.00
10 inch $ 672.00
12 inch $1,022.00
(2) For all non-residential uses in which public water
service is not available, the fee shall be as
follows:
0-4 commodes $14.00
Each additional shall be effective on and after the date
of its adoption.
Adopted by the Council of the City of Virginia Beach,
Virginia, on 16 December 1980.
-2-
- 60 -
ITEM II-F.2 ITEM #16042
Upon motion by Councilman Baum, seconded by Councilman Holland, City
Council ADOPTED the Ordinance to amend and reordain Sections 37-2,
37-4, 37-29(a), 37-32 and 37-33 of the Code of the City of Virginia
Beach, Virginia, relating to Water Supply and Rates, and to include
Alternate C from the City Manager's letter dated December 10, 1980.
"Alternate C - Water rate, as originally proposed, of $1.31 per
thousand gallons and sewer rate of $7.00 for single-family
residences. This is the rate discussed thoroughly by the
Committee, as well as the Council, and that with proper
advertising, can be explained to the public."
Vot ing: 9-2
Council Members Voting Aye:
Jobn A. Baun, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Holland, W. H. Kitchin, III,
Mayor J. Henry McCoy, Jr., @yera E. Oberndorf, and Patrick
L. Standing
Council Members Voting Nay:
Reba S. @Clanan, and Donald W. Yierrich
Council Members Absent:
None
- (-, I
AN ORDINANCE TO AMEND SECTIONS 37-2,
37-4, 37-29(a), 37-32 and 37-33 OF THE CODE
OF THE CTTY OF VIRGINIA BEACH, VIRGINIA
RELATING TO WATER SUPPLY AND RATES
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA
BEACH, VTRGINIA:
That Sections 37-2, 37-4, 37-29(a), 37-32 and 37-33 of
the Code of the City of Virginia Beach, Virginia, are hereby
amended to read as follows:
Sec. 37-2. Application for consumer service.
The Director of Public Utilities is hereby Authorized
to furnish water service to consumers upon application of the
owner, agent or tenant of the of the premises connected to city water.
#He-e,ity -ere] i-19 afie@-4 P -,i- I H'4 -elg a yet
Sec. 37-4. Deposits.
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414 4 2r,-.Oo
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(a) fb+ After any consumer has been delinquent in his
bill, the Department of Public Utilities may
require a deposit in an amount based on an
estimated monthly bill in order to continue
service.
(b) @e+ Deposits may be refunded upon written request
to the Department of Public Utilities after
six consecutive billing periods of
maintaining payments on time.
(c) fd+ No interest will be paid on deposits.
Section 37-29. Connection and installation fees.
(a) Connection to a city water line (tap fee):
3/4 inch tap and 5/8 inch meter . . . . . . $220.00
1 inch tap and meter . . . . . . $285.00
1 1/2 inch or larger tap and
meter . . . . . . . . .. Cost of labor, materials
and equipment plus 25%
for administration.
5/8 inch or 3/4 inch meter and appurtenances
only . . . . . . . . . . . . . . . . . . $120.00
1 inch meter and appurtenances only . . . . . $185.00
1 1/2 inch or larger meter and
appurtenances only Cost of labor, materials
and equipment plus 25%
tor administration.
When the installation requires a combination of a different
size tap and meter than listed above, the charges will be based
on cost of labor, materials and equipment plus twenty-five (25%)
per cent for administration.
-2-
For taps in excess of one (1) inches, an amount
shall be placed in escrow -be based on an estimate of costs
by the Director of Public Utilities.
In any case where a customer desires that an existing tap or
meter be moved, the cost of moving the tap or meter shall be
based on the cost of labor, materials and equipment plus
twenty-five (25%) per cent for administration. A deposit shall
be placed in escrow in advance of the estimated cost as
determined by the department of public Utilities.
The following fees shall also be applicable to presently
connected uses or structures whenever a present use or structure
is expanded, changed or modified. In such cases, the fees shall
be determined on the basis of the total proposed new uses or
structures, less a credit at current rates for the presently
existing uses or structures or the last structure if previously
demolished.; provided, the property has not been vacant for more
than five (5) years; with no credit after five (5) years:
Sec. 37-32. Minimum service availability
Each consumer shall pay a monthly minimum service
availability charge as follows for each meter
connecting his premises with the City water system:
SIZE MONTHLY CHARGE
5/8" $3.00
3/4" $4.00
I" $6.00
1 1/2" $11.00
2" $17.00
3" $31.00
4" $51.00
6" $101.00
8" $161.00
10" $251.00
12" $361.00
Fire Hydrant Meter $31.00
-3-
Section 37-33. Water Usage Rates.
In addition to the charges provided for in Section 37-32,
each consumer shall pay for water usage the rate of $1.31 per
thousand gallons ($.98 per hundred cubic feet).
47091 --- 497090-eub+e-feet
+$4vQ4711000-qa44ene+
The above water usage rate shall become effective with
respect to all water consumed on and after January 1, 1981.
This Ordinance shall be effective on and after the date
of its adoption.
Adopted by the Council of the City of Virginia Beach,
Virginia, on 16 December 1980.
RHM/cj/cb
11/25/80 (C)
(C)
-4-
6 @
A D J O U R N M E N T
ITEM #16043
Upon motion by Councilman Holland, seconded by Councilman Baum, and
by UNANIMOUS vote, the meeting adjourned at 1:12 p.m.
R'uth Hodge eS Henry oy, D 1,3.
City of Virginia Beach,
Virginia
dmh/asb