10/24/77 Minutes
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RESOLUTION OF THE COUNCIL OF THE CITY
OF VIWINIA BEACH AUTHORIZING nM
E)MCLJTICN OF A CONTRACT TO PURCHASE TBE
ST= OF PRINCESS ANNE 00@RATION
on April 11, 1977, the City Council of the City of Virginia
Beach authorized the City Manacjer to negotiate for the purchase of the water
and/or se@r systenis operated hy Aragona Util.ities, Princess Anne Utilities and
Perrbroke Utilities; and
WHE@, it appears that the mst practical way for the City to acquire
these system is to purchase all the stock of Princess Anne Corporation which
owns all of the stock of these tliree @anies and then to dissolve Princess
Anne Corporation and the conipanies and to integrate their water and/or sewer
system into the City's water and sewer systern; ind
V?HE@, there has been presented to the Cit-y Council the form of a
oontract between Edward S. Garcia and John X. Aragona, as sellers and the
owners of all the stock of Princess Anne Corporal-ion, and the City, which the
City propc)ses to execute to carry out the transa(,tions described above, a copy
of which shall be filed with the @utes c)f this @eting; and
, there has a.l.so been presented to tlie City Cc)uncil a letter from
Virginia National Bank aqre,,eing t-o accept c-ortai-ii revenue bc)nds of the City
representing a portion of t-lie purchase price of the stc)ck of Princess Anne
Corporation, upc)n the exe(-ution of the abc)ve contract and the consummation of
the conditions and transactions set forth in suci-i contract.
PE, BE IT RESOL@D BY THE@ COLNCIL OF THP@- CITY OF VIRGINTA BEACEI,
VI@INIA:
1. The execution of a Contract with Edward S. Garcia and John X. Aragona
for the purchase of all the stock of Pri-ncess Ai-me Corporation is hereby
approved. The City ManagEr ind the City Cl(@rk are authorized and directed to
execute and deliver a Cc)ntract on behalf of the City for that purpose.
2. The delivery of certain revenue bonds of the City to Virginia National
Bank, as a portion of the 13urchase price of the stock of Princess Anne Cc)rpora-
tion, under the te= of the. letter of Virginia National Bank is hereby approved.
The City Manager is hereby authorized to accept such letter frorn Virginia
National Bank on behalf of the City.
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3. The oontract and the letter shall be in substantially the fortn
of a contract and letter s@tted to this meting, which are hereby approved,
with such @letions, omssions, insertions and changes as Tnay be approved by
the City Manager and the city Attorney, execution by the City Manager to
oonstitute conclusive evidence of his approval of any such ondssions, inser-tions
and changes.
4. The appropriate officers of the City are hereby authorized and directed
to execute and deliver all. certificates and instrumnts and to take all such
further action as they my consider necessary or desirable in connection with
the purchase of the stock of Princess Anne Cc)rporation.
5. All other acts of the officers of the City which are i-n conformity with
the purposes and intent of this resolution and in furtherance of the purchase
of the stock of Princess Anne Corporation @e hereby approved and oonfirffed.
Adopted by the Council f tlic, City of V:irginia Rea(@li, Vir@,inia, Ipproved on tl)e
24th day of October, 1,97i
GC:JDB:er
10-24-77
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ITEM #11421(b)
On motion by Councilman Riggs, sc@conded by (@oiincilman McCoy, and by recorded vote
as follows:
Ayes: Councilmen John A. Batim, Robert B. Cromwell, Jr., George R. Ferrell, Iolin
R. Griffin, Mayor Clarence A. Holland, J. Henry McCoy, Jr., J. Curtis Payne, Roger
L. Riggs, Vice Mayor Patrick L. Standing, and Fl(,yd T,-,. Waterfield, Jr.
Nays: Councilwoman Meyeril E. ObE@rndorf
Absent: None
City Council voted to approve on first reading tlie following ordinance authorizing
the issuance of water and sewer revenue notes of tfie City of Virginia Beach, Virginia,
in an amount not to exceed $5,100,000 and $3,000,000 Water and Sewer Reventle Bonds of
the City of Virginia Beacil, Virgi-nia:
At4 ORT)-,NIAN(F. E 1. ctIAq
OF @IATER AND SE'TI-tR RE@FF\ITF. 140-IFS
T'HE C19v C)I" %TIRCIl"TA B@A('.14, VTP,(:TlTA
IN AN "OT 70 Ex(- c 0
,F
,F
'r) $- , I 00 .)O,
A'L4D $3 , 000 , 000 WA-ER AND F-EVENUE
B0,14D!3 OF Til-@ CII- t)F VTP,(71'4"TA BE'Acii,
VIRGINi-A
11/2'HEREAS, @ll, @i 1)zlr[ of a prog-.,ir@,. for ,icLlllil-iti@, W.1
ter
and sewer facilitic,., l@ocated within the of tlic-
City, the C-i@ty COklilcil 1-ias detern-@4.ned it i!l
to acqu3'.re the Sewcti- s.v-.Cutits of Princc@ss Anne lJtilitiF-'.'
and Aragon.,i lik-@li,ties aiid thL- watey .3nd sewF-,i- @,7st.0-m of
Pcriibrol@c
WIILREAS, the City propo@les to -totitifre sys-tems
by tile purchase of the stock of PA Corp. wliicii (-)wiis all the
stoCk of ArziPoila Utilities, Prinrer,-,; Al@T-le lit@litict',
Pc,ml)roke Utili-t4-es and ,icqiii@it".011 co U'iz,:-
soll.le the corPoraLions atid to i-,.itegrqte t:tieil- lw.@ter -incil'OY
sewc@i: sy!5t@,s in,,-o t:h2
WI[ERLAS, tie Cit,; h,)r ()Ctc)*L)er 24,
1977. liil-., authorized the execution of a wil-h !:hct
i:)f all the stock o@@ T@'A Col-P, f,@r tlle pui:cllase of '@uch
.s@-oCk (the Stcck P'Jrcliai5c Contr.,i('-,,); Iil(i
WIIERLik", Lhe Ci-y proposen to p3v
I @ni-
Of r.IICI', ,7tQCk throu-lh the c)f two nep;irit-.c, of
its i,,i ail ag;-,rega-Le p.-incipal ;Iuiclunt not to eyceed
$8,100,000 af! COT!Lk:rlllla,@,,d by t-ll,:!
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TPEREFORE, BE IT ORDAINED B-1 TIIE COUNCIT. (@'F THF
CITY OF VIRGINIA BEACH, VIRGTIN@TA:
It is hereby de-e,,,mitleti to be
expedient for tile CitY of Virgiiiia BQ@icti Lo acquire -LhL@
sewer systems of Pri.tiecs-I Ailne litilitic-l- aiiJ Aragona Ut-'-l@@ties
and the water giii, of Litil,'Lics LliroulTi
the purchase or- all t--he !itock ol@ PA Coi-p. L(.) finiliel@ in
part such acquds@lion t--Iii-(iiipll !1)12 of @3,000,000
i
water atid scwcr rLv(@iiuc bond.@ o.4 t,'ic- ane, w.,Iter and sawer
re-vel'lkle 11L)tL,,,,. of thL, C-@@Lv in an amoun-. noL tt) t.-Xcp-e@l $5,100,000.
2. PurEil.,3nl- t.-o t--tic! Auttiority o@ Lhe Cha-ter o4 the
City of Virginia Beach (L"nnpter 147, Acts of Assembly of 1962,
as atnerided) and .he Pul)l'@c Fi.ilatic(l ACt. @t-l' arended, t-IlL@re are
hereb-Y authorized @-o 1)0- icl@ued 6y@),000,000 @,,,ater and seiler
revel-,tic bonds of th,@ City Of aild water and sewer
revenue noten of the City o.@ Virg--@nia Besch in aii nnini,int,
to exceed S5,100,000 t() provi,,J(.- 4-iii)(Ifi top
ct@icr witli ollier El-in(l-,
that T,-,ny be available fL,-- the ncquisiticn of
Utilities, Aragona I:itilit4@e!; ;it)ti tilrough
tll(- pul@eliase of ;Ill @hc o@ PA
3. Ttie deta@@is r)f the -I)L)iiEls tiill be 8i)ccified in
an appi7opriate resolut-jori or re.-3oliit:icnq ,itit)fite@l st.,L),-;,LquLnt
tiereto and will I)t, i@, L L
ry o carry out the Of
the Stock Purch;i@,,-@ (.@,ziLracL.
to/ 4/7 iv
3
4 'flic, detail8 ()f tile nf-,tes will b(i .I)eeified in
an ippropriate resc)lutioil or resolut@-onq subseqilent.
hereto -anti will be as @iecernnrv tc) carry oull the terrn,l L)f
tbc-- Stoc@. l'urciia4;e
bo-,ids anti -he. tiocezi sliall bc- lirn-*@t@(i C)bl@igations
of the City p.-iyziL)IC s@,lelv fi-,)n, t'fie to be deri.vQO
from the w,,iter and sewer of ,he C4--Ly@ Thri bol,(.!,, aild
tbe noLL@s shsll that thev i@Lill, bc def@,re-d -Lo
oi7 c-onstit:u@-c- .,ndeLit-ed-iesF'. @r a I)ludge o'@- the fill.1 f@ii-tll
;Ind credit L)f Llic? C-'@ty, tht,- C:t-,i:ffliott-@o@ilLh o,@ Vii-p,@lli,l C)t ;311)y
poliLicAl cil the The is'siiance of
4-
tlic bonds sild tlie n(),,.es and t-.hct g 0- the covenantg,
cotiditions and agrecir.-epts to be iii Lhe repolut-3-(,@n or
resolutionR -o -Lc adopted hei-e;tft('r ,lot di,-ec@-ly, iii-
the
r po!ilical subdivin-@.(.)ri (,f t'if t
(ir any othe- @ -1 L @ 0
levy and c,-,Ilect i,,tiv @axes riei.-efc)r. or make anv
appropr4.ctiuii, the-.efor, ex@.ct)t Eriiii thc rc-venu@-F Of tl,.e
watey nnd I.Qwcr svstem Tjlc!clgc-d to pzlymc!nt
iiit(-,re.st on a@nd -ht,-
6. The L() @ue
after authc)z-i7,iiig 1-lic @.ssuance of the @oncin atid
prk)vidipg the deti-@*'@--,. tl)ore-@)f t5liall cci,,tiin appropr@-ate
ct)veiiatit,; refluir@.np, the it@, I-o fix, and collcct such
reites, -rees and c)t-.1-icti, for @l,@c uze of ,ind -,or t:hti
serviceE; .ater ,ind t() re-
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ViSC tile @amL@ from 'lime tO tiTPe a',Id as ofte,-i as shall be
neceasary so as -0 prot@lkic.0, suff
t rcivetiti(-.s to piy
principal o-4 f) Els ;and -lie notef: as the
@ @d t tlle. , ),)
same becatle dile an,i t() pi-ovit3t@ i
Such resolution nbal'@ alf;o incltide @uch ndditional cove@nants,
agreements and other ,if; ,ii,e ciistom,:irv fc)r the protec-,ion
of the hold,@rs of wntei- A!ld cwcl: revn-niif,.
Fi@-st Reading: October 24. 1977
SeeC);Id Readizig:
A tip e c-i by t-ic Couiieil of C)I'l t@ic
day of 1977.
GC:JM:er
10-20-77