APRIL 13, 1988 MINUTES (2)
(2 it c@t- @ii-&;il li@, I I
"WORLD'S LARGEST RESORT CITY"
(:ITY (@OLJNCIL
MAYOR ROBERT G. JONES, A,
VICE MAYOR MEYERA E OBERNDOR.F, A, L.,,
ALBi-RT W BALKO, L,@@h.@@ B-.,h
JOIIN @A BAUA4,
l@')IiER7 F I T@NTRESS, Vi,,.@
IIIR(li,ll lli@111:11(11@l-R, A,
l@ARli,IR,l M iii:Ni,i@l,
REBA S Wl:[-ANAN, P,i@.... A... B-@,h
JOHN D klO.SS, K,@,-ill@
N@(:Y K PARKER, A, @,,
]OfIN L PERRY, B,,,id, @@,h
2@l CI rY HAU Bt'ILIIINI;
MUNICIPAL CENIFI@
Al.@ V WA-, JR, @il, M.- CITY COUNCIL AGENDA VIRGINIA BEACH, VIRGiN]@, 2@115, 1111)@
MM@l, @ll, Al@ (80@) @27 @103
C,, C.@
APRIL 13, 1988
ITFM I. FOPMAL SESSION: - Council Chamber 12: NOON
A. CALL TO ORDER TO SPECIAL SESSION - Mayo, Rob rt G. Jones
B. RFADI14G OF MAYOR'S CALL FOR SPBCIAL SESSION
C. ELECTIZONIC ROLL CALL OF CITY COUNCIL
D. LOW BID: Salc, ,' $40,950,000 GENERAL OBLIGATION PUBLIC IMPROVFMENT
BONDS
E. CITY MANAGER'S RECGMMENDATION
F. AWARDING OF LOW BID:
1. $40,950, 000 G,@n,@,al Ot@l i@lation @,I,l c imr, @)vement PDnds,
Seri,,,, @)F 1988A
(3. AD,70URNMENT
c)-f E3@"@"
MUNICIPAL GENTER
ROBERT G. JONES VIRGINIA BEACH, VIRGINIA 23456-9002
MAYOR (8N) 427-4581
Api-il 11, 1988
HONOP,ABLE iIEMBER'- OF CITI "OUNCIL
In accordance with City God. Section 2-21 and by tlie
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 NOON for the
purpose o.@ AWARDING of a Low Bid on $40,950,000 General Obligation
Public Improvement Bonds, Series of 1988 A.
Respectfully,
RGJ/bh
cc: Aubrey V. Watts, Jr., City i,ianager
J. Dale Bimson, City Attorney
Ruth Hodges Smith, CMC/AAE, City Clerk
Pam Lingle, Director o@, Public Information
Virgiiiia Beach Ci ncil Received Notice
Councilman Albert @,J. Balko
Councilman John A. Baum
Councilman Robert E. Fentress
Councilman Farold Heischober
Councilwoman Barbara l@l. 'ienley
Councilworaan Reba S. Mccla,.ian
Council,nan John D. @,,@loss
Vice Mayor Meyera E. Oberndorf
Councilwon.,an Nancy K. Parker
Councilman John L. Perry
Cit@ <Df
OFFICE OF T.E CITY .@N@GER April 13, 1988 MUNICIP@L CE@TER
(801) 127-1212 VIRGINIA BE@CH, VIRGINIA 23,@-9w2
The Honorable Mayor
Members of the Council
Dear Council Members:
The City of Virginia Beach has received seven separate bids
on its @40,950,000 General Obligation Public Improvement Bonds,
Series of 1988A.
The true interest cost to the City of each of the bids is as
follows:
Syndicate Headed By 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
The bids on the bonds are indicative of current market
conditions and the market's continued positive perception of the
City's credit quality. The City's financial advisors, Goverrunent
Finance Associates, Inc. and the Goverriment Finance Research
Center recommend that the City accept the low bid of
Manufacturers Hanover Trust Company and recommend the prompt
award of the bonds.
Sincerely yours,
@tts, Jr.
anager
AVW, Jr./pal
I RESOLUTION AWARDING $40,950,000
2 GENERAL OBLIGATION PUBLIC
3 IMPROVEMENT BONDS, SERIES OF 1988A
4 AND SETTING INTEREST RATE ON
5 $2,000,000 GENERAL OBLIGATION
6 PUBLIC IMPROVEMENT BONDS, SERIES OF
7 1988B (CAPITAL APPRECIATION
8 MINIBONDS)
9 WHEREAS, the Council of the City of Virginia Beach,
10 Virginia (the City), by resolution adopted on April 4, 1988 (the
11 Series of 1988A Resolution), authorized the sale of $40,950,000
12 General obligation Public Improvement Bonds, Series of 1988A (the
13 Series of 1988A Bonds); and
14 WHEREAS, pursuant to sale procedures set forth in the
15 City's Notice of Sale, sealed bids for the Series of 1988A Bonds
16 are received in the office of the City Manager at 11-00 a.m.,
17 local time, on this date. Each of the bids offered to pay par, a
18 premium as indicated and accrued interest on the Series of 1988A
19 Bonds from the date of the Series of 1988A Bonds to the date of
20 delivery:
21 1. Bid of Manufacturers Hanover Trust Company,
22 offering to pay a premium of $399.35 for the Series of 1988A
23 Bonds bearing interest at the rates set forth in Column 1 on
24 Exhibit A attached hereto.
25 2. Bid of Chase Manhattan Capital Markets Corporation,
26 offering to pay a premium of $311.05 for the Series of 1988A
27 Bonds bearing interest at the rates set forth in column 2 on
28 Exhibit A attached.
29 3. Bid of Goldman, Sachs and Company, offering to pay
30 a premium of $12,001.15 for the Series of 1988A Bonds bearing
31 interest at the rates set forth in Column 3 on Exhibit A.
32 4. Bid of J.P. Morgan Securities, Inc. and Associates,
33 offering to pay a premium of $6,943.00 for the Series of 1988A
34 Bonds bearing interest at the rates set forth in Column 4 on
35 Exhibit A.
36 5. Bid of The First National Bank of Chicago, offering
37 to pay a premium of $463.85 for the Series of 1988A Bonds bearing
38 interest at the rates set forth in Column 5 on Exhibit A.
39 6. Bid of Bear, Stearns and Company, Inc., offering to
40 pay a premium of $7,148.75 for the Series of 1988A Bonds bearing
41 interest at the rates set forth in Column 6 on Exhibit A.
42 7. Bid of Smith, Barney, Jiarris Upham and Company,
43 offering to pay a premium of $6,819.25 For the Series of 1988A
44 Bonds bearing interest at the rates set forth in Column 7 on
45 Exhibit A.
46 WHEREAS, representatives of the Government Finance
47 Associates, Inc. and Goverriment Finance Research Center, the
48 City's financial advisers, reported that the bid of Manufacturers
49 Hanover Trust Company, a copy of which bid is attached hereto and
50 made a part hereof, offered to purchase the Series of 1988A Bonds
51 at the lowest cost to the City, determined in accordance with the
52 Notice of Sale, and recommended acceptance of the bid; and
53 WHEREAS, The Council of the City by resolutions adopted
54 on April 4 and 11, 1988 (collectively, the Series of 1988B
55 Resolution), authorize the sale of $2,000,000 General Obligation
56 Public Improvement Bonds, Series of 1988B (Capital Appreciation
57 Minibonds) (the Series of 1988B Bonds); and
58 WHEREAS, the Series of 1988B Resolution provided that
59 the interest rate on the Series of 1988B Bonds be determined at
60 the time of the sale of the Series of 1988A Bonds;
61 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE
62 CITY OF VIRGINIA BEACH, VIRGINIA, THAT:
63 1. The Series of 1988A Bonds, the form and details of
64 which have heretofore been prescribed by the Series of 1988A
65 Resolution are hereby awarded to Manufacturers Hanover Trust
66 Company in accordance with the terms of their bid and shall bear
67 interest as set out in such bid.
68 2. The interest rate on the Series of 1988B Bonds is
69 5.5% per year.
2
7 0 Adopted thig 3th day of 1988, by the
71 Council of the City of Virginia Beach, virginia.
72 Approved!
73
74 Robert G. Jones, Mayor
75 LLL/lmt
76 4/14/88
77 CA-2672
78 (\ordin\noncode\bonds.res)
3
EXHIBIT A
SUMMARY OF BIDS FOR CITY OF VIRGINIA BEACH
GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS
SERIES OF 1988A
Maturity
Date Amount Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7
5/1/89 $1,090,000 6.85% 6.40% 6.,iO% 6.50% 6.60% 6.50% 6.60%
5/1/90 2,100,000 6.85 6.40 6.10 (7.50 6.60 6.50 6.60
5/1/91 2,100,000 6.85 6.40 6.50 6.50 6.60 6.50 6.60
5/1/92 2,100,000 6.85 6.50 6.50 6.50 .60 6.60 6.60
5/1/93 2,100,000 6@85 6.50 6.50 fl.50 6.60 6.60 6.60
5/1/94 2,100,000 6.85 6.50 6.50 (1.50 6.60 6.60 6.60
5/1/95 2,100,000 6.85 6.50 6.50 (-,.60 6.60 6.60 6.60
5/1,/96 2,100,000 6.85 6.50 6.50 h.60 @.70 6.60 6.60
5/1/97 2,100,000 6.85 6.50 6.50 @@60 C,.70 6.60 6.60
5/1/98 2,100,000 6.85 6.50 6.60 h@60 6.70 6.60 6.60
5/1/99 2,100,000 6.85 6.60 6@7@ 6.80 6.80 6.75 6.75
5/1/00 2,100,000 6.875 6.80 6.1)0 h.90 6.90 6.90 6.80
5/1/01 2,095,000 6.87@ 6.90 7.00 1.00 7.00 7.00 7.00
5/2/02 2,095,000 6.875 7.00 7.10 7.10 7.10 7.10 7.10
5/1/03 2,095,000 6.875 7.10 7.20 l@20 7.20 7.25 7.20
5/1/04 2,095,000 6.875 7..20 7.30 7.25 7.30 7.30 7.30
5/1/05 2,095,000 6.875 7.25 7.30 7 30 7.40 7.40 7.40
5/1/06 2,095,000 6,871; 7.25 7.375 7,30 7.40 7.40 7.40
5/1/07 2,095,000 6.875 7,25 7,375 7,375 7.40 7.40 7.50
5/1/08 2,095,000 6.875 7.25 7.375 7.375 7.40 7.50 7.50
Stalt-d bids must be subrnilied b) 11:00 am
OFFICIAL BID FORM
April 13, 1988
City Council
City of Virginia Beach
c/o Office of the City Manager
Virginia Beach Municipal Centel
City Hall Building
Virginia Beach, Virginia 234s6
Dcar Sir:
On behalf of the group listed bdow and pursuani to the terms and conditions of sale listed in the
City@s Notice of Sale. we offer to purchase the $40.950.000 General Obligation Public Improvemcnt
Bonds, Series of 1988A of the City of Virginia Beach, Virginia, daled April 15, 1988. This offer is made
for all of said bonds and for not less than all, maturing on Ma@, I in the years sho'An belo%k.
The scheduic of maturitic, and interest rates upon @'hich thi@ bid is based are as follows:
l.t ... st I.t,rftt
R.1, A....t
5/1/89 $1.090.(KK) 5/ 1!99 $2.100.000
5/1/90 2, 1 00.(KX) 5/1/00 @ 100,000
5/1/91 2. 1 00. (X)o 5,,I!Ol 2.095,000
5/1/92 2.100,00(i S'llIO2 2.095.000
5/1/93 2,100,000 5/1/03 2,095,000
5/1/94 2@ 100,000 5/1/04 2,095,000
5/1/95 2,100,000 5/1/05 2,095,000
5/1/96 2.100,000 5/1/06 2.095.000
5/1/97 2.100,000 5,'] @07 2,095,000
5/1/98 1.100.00(i 51 1 @08 2 @09S,000
We %k,ill pa@, $40.950.000 plus a premium of S and accrued interest from the date of
the bonds to the date of deli,er@
We enclose a certified or cashier@s check for S819.0(K) dran upon an incorporated bank or trust
company and pa@,able unconditionall@ to ihe order of the Cit@ of Virginia Beach. Virginia, 'A,hich is to
be applied in accordance "iih the Notice of Bond Sale to secure the Cit@ against anN loss resulting from
the failure of the succe,,ful bidder to compl@ %ith the term@ of this proposal. The check of the
succes1/2ful bidder "ill he dep(,siled and credited on the purchase price. and no inteTCSI A,ill be credited
thereon. The proceed, ,f ihe check "ill be retained b% thc CIIN a@ liquidled damages in case the
successful bidder fails lo accept deliver@ of and pa@ for ihe bonds Checks of unsuccessful bidders will
be returned promptl1/2 upon a@ard of the bonds.
tted.
,4'*
looi
The abo@e gotid failh check ha, been returned and
receipt thereof is dul@ ackn,,mledged
NO ADDITION OR AI,TERATION, FXCEPT AS PRO%'IDED
ABOVE, SHOL'LD BE MADE TO THIS BID
(NOTE-The folio" ing is 1/2taied for informaiion onl@ and is nol a part of thi, bid The Truc Interest Cosi
of thi@ bid is S4, '/ 7 17,, and the iotal amouni of iniere1/2t pa%able on the bonds (net of
accrued interest) iN 3,i @@q)
1 RESOLUTION AWARDING $40,950,000
2 GENERAL OBLIGATION PUBLIC
3 IMPROVEMENT BONDS, SERIES OF 1988A
4 AND SETTING INTEREST RATE ON
5 $2,000,000 GENERAL OBLIGATION
6 PUBLIC IMPROVEMENT BONDS, SERIES OF
7 1988B (CAPITAL APPRECIATION
8 MINIBONDS)
9 WHEREAS, the Council of the CitY Of Virginia Beach,
10 Virginia (the City), by resolution adopted on April 4, 1988 (th,
11 Series of 1988A Resolution), authorized the sale of $40,950,000
12 General Obligation Public Improvement Bonds, Series of 1988A (the
13 Series of 1988A Bonds); and
14 WHEREAS, Pursuant tO sale procedures set forth in the
15 CitY's Notice of Sale, sealed bids for the Series of 1988A Bond,
16 are received in the office of the City Manager at ll:oo a.,.,
17 10cal time, on this d,te. Each of the bids offered to pay par, a
18 premium as indicated and accrued interest on the Series of 1988A
19 Bonds from the date of the Series of 1988A Bonds to the date of
20 delivery:
21 1. Bid of Manufacturers Hanover Trust Company,
22 offering to pay a premium of $399.35 for the Series of 1988A
23 Bonds bearing interest at the rates set forth in ColMn 1
24 Exhibit A attached hereto.
25 2. Bid of Chase Manhattan Capital Markets Corporation,
26 offering to pay a premium of $311.05 for the Series of 1988A
27 Bonds bearing interest at the rates set forth in column 2 on
28 Exhibit A attached.
29 3. Bid of Goldman, Sachs and CoMpany, offering to pay
30 a premium of $12,001.15 for the Series of 1988A Bonds bearing
31 interest at the rates set forth in Column 3 on Exhibit A.
32 4. Bid of J.P. Morgan Securities, Inc. and Associates,
33 offering to pay a premiurn of $6,943.00 for the Series of 1988A
34 Bonds bearing interest at the rates set forth in Column 4 on
35 Exhibit A.
36 5. Bid of The First National Bank of Chicago, offering
37 to pay a premium of $463.85 for the Series of 1988A Bonds bearing
38 interest at the rates set forth in Column 5 on Exhibit A.
39 6. Bid of Bear, Stearns and Company, Inc., offering to
40 pay a premium of $7,148.75 for the Series of 1988A Bonds bearing
41 interest at the rates set forth in Column 6 on Exhibit A.
42 7. Bid of Smith, Barney, Harris Upham and Company,
43 offering to pay a premium of $6,819.25 for the series of 1988A
44 Bonds bearing interest at the rates set forth in Column 7 on
45 Exhibit A.
46 WHEREAS, representatives of the Goverriment Finance
47 Associates, Inc. and Government Finance Research Center, the
48 city's financial advisers, reported that the bid of Manufacturers
49 Hanover Trust Company, a copy of which bid is attached hereto and
50 made a part hereof, offered to purchase the Series of 1988A Bonds
51 at the lowest cost to the City, determined in accordance with the
52 Notice of Sale, and recommended acceptance of the bid; and
53 WHEREAS, The Council of the City by resolutions adopted
54 on April 4 and 11, 1988 (collectively, the Series of 1988B
55 Resolution), authorize the sale of $2,000,000 General obligation
56 Public Improvement Bonds, Series of 1988B (Capital Appreciation
57 Minibonds) (the Series of 1988B Bonds); and
58 WHEREAS, the Series of 1988B Resolution provided that
59 the interest rate on the Series of 1988B Bonds be determined at
60 the time of the sale of the Series of 1988A Bonds;
61 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE
62 CITY OF VIRGINIA BEACH, VIRGINIA, THAT:
63 1. The Series of 1988A Bonds, the form and details of
64 which have heretofore been prescribed by the Series of 1988A
65 Resolution are hereby awarded to Manufacturers Hanover Trust
66 Company in accordance with the terms of their bid and shall bear
67 interest as set out in such bid.
68 2. The interest rate on the Series of 1988B Bonds is
69 5.5% per year.
2
70 Adopted thi-q 3 th day of April 1988, by the
71 Council of the CitY of Virginia Beach, Virginia.
72 Approved:
73
74 Robert G. Jones, Mayor
75 LLL/lMt
76 4/14/88
77 CA-2672
78 (\ordin\noncode\bonds.res)
EXHIBIT A
SUMMARY OF BIDS FOR CITY OF VIRGINIA BEACH
GENERAL OBLIQATIO-N P T BONDS
Maturity Column 7
Date ount C.lumn I Column 2 Column 3 Column 4 Colmn 5 Column 6
5/1/89 $1,090,000 6.85% 6.40% 6.50% 6.50% 6.60% 6.50% 6.60%
5/1/90 2,100,000 6.85 6.40 6.50 6.50 6.60 6.50 6.60
5/1/91 2,100,000 6.85 6.40 6.50 6.50 6.60 6.50 6.60
5/1/92 2,100,000 6@85 6.50 6.50 6.50 6.60 6.60 6.60
5/1/93 2,100,000 6.85 6.50 6.50 6.50 6.60 6.60 6.60
5/1/94 2,100,000 6.85 6.50 6.50 6.50 6.60 6.60 6.60
5/1/95 2,100,000 6.85 6.50 6.50 6.60 6.60 6.60 6.60
5/1/96 2,100,000 6.85 6.50 6.50 6.60 6.70 6.60 6.60
5/1/97 2,100,000 6.85 6.50 6.50 6.60 6.70 6.60 6.60
5/1/98 2,100,000 6.85 6.50 6.60 6.60 6.70 6.60 6.60
5/1/99 2,100,000 6.85 6.60 6.75 6.80 6.80 6.75 6.75
5/1/00 2,100,000 6.875 6.80 6.90 6.90 6.90 6,90 6.80
5/1/01 2,095,000 6.8'75 6.90 7.00 7.00 7.00 7.00 7.00
5/1/02 2,095,000 6.875 7.00 7.10 7.10 7.10 7.10 '7.10
5/1/03 2,095,000 6.875 7.10 7.20 7.20 7.20 7.25 7.20
5/1/04 2,095,000 6.875 7.20 7.30 7.25 7.30 7.30 7.30
5/1/05 2,095,000 6.875 7.25 -7.30 7.30 7.40 7.40 7.40
5/1/06 2,095,000 6.875 7.25 7.375 7.30 7.40 7.40 7,40
5/1/07 2,095,000 6.875 7.25 7.375 7.375 7.40 7.40 7.50
5/1/08 2,095,000 6.8'75 7.25 7.375 7.375 7.40 7.50 7.50
@led bids rnust bc submitted b, 11:00 am
OFFICIAL BID FORI%L
April 13, 1989
City Council
Cily of Virginia Bcach
c/o Office of thc City Manager
Virginia Beach Municipal Center
City Haii Building
Virginia Beach, Virginia 23456
Dcar Sir:
On behalf of the group listed btlow and Pursuant to the terms and conditions of sale listed in the
City's Notice of Sale. wc offer to purcha.,,e he $40,950,000 General Obligaiion Public Improvement
Bonds. Scrics of 1988A of the City of Virginia Beach. Virginia, dated April 15, 1988. This oiter is made
for all of said bonds and for not less than all. maturing on Ma), I in the YCATS sho%n below.
The %chcduic of maturiti@ and interest rates upon A,hich this bid is based are as follows:
int,@,,, I.t,r.si
A..u.1
S/l/89 $1.090.000 5/1 S2. I 00.000
5/1/00 2. 1 00.(X)o 5/i/00 2,100,000
5/1/91 I OO.O(X) 511101 .,095,000
5/1/92 2. 1 OO.O(XI 5/1/02 2,095.000
5/1/93 2,100,000 5/1/03 2,09S,000
5/1/94 2.100.000 551- 5/1/04 2,095,000
511/95 2,100.000 5/1/05 2.095.f)DO
5/1/96 2,100.000 5/1106 2.095,000
5/1/97 2.100,000 5/1/07 2@095.000
5/1/99 ').Ioo.ooo S/l/09 2.095.000
f S and accrued interest from the date of
We will pav $40.950-000 plus a premium 0
the bonds to thedate of delivery
We enclose a certified or cashier@s check for S819.000 drawn upon an incorporated bank, or trust
company and pa@'able unconditionall@, to the order of the Cit@ of Virginia Beach. Virginia, %@hich is to
be applied in aCCOTdance ,ih the Notice of Bond Sale to secure the Citv against an@ loss resulting from
ihe failure of the succe,,ful bidder to compl@: %kith the terms of this proposal. The check of the
succ@sful bidder "ill bc deposited and credited on the purchase price. and no inierest @,ill be credited
of the check @ill be retained b@ the Cit@ a@ liquidated damages in case the
thereon. Thc proceed,
successful biddet fai]S to accept deliverv of and pa@, for the bonds. Checks of unsuccessful bidders will
be returned prompli@ upon a@ard of the bonds
o o
The abo@c gtiod faith check ha, been returned and
receipt thereof is dul@ acknk,,Iedged
NO ADDITION OR AI,TERATION, EXCEPT AS PRON'IDED
ABOVE, SHOIILD BE NIADE TO THIS BID
(,NOTE-The f(illo, ing is stated for information onl@ and i-S not a part of thi@ bid: The True Interest Cost
of this bid is 6 St,/7@ 17,, and the total amount of interest pavahle on the bonds (net of
accrued intercst) is S -3,, qq@ D.20") I
AWO T ITM'4 29199
CUp... Mot"'l by COutililm,,n Hei,9chober, seconded b3l Vioe Mayor Oberndc)rf, Cit3,
Ouncil ADJOURNED the Meetin, at 12:53 P.II.
R h H d . -it!" CMC
g'
.ty C_ lerk
C'ty of Virginia B,ach
Virginia
Voting: 7-0*
COuncil Niembers V,ting Aye:
Albei,t W. Balko, Robert E. Fentress,
Heischobe,l Barbara vi. Harold
Vi@e t4ayor @leyera E Heni@Y, I'layor Robert G. Jones.
Oberyldorf and Nancy K. Parker
COuncil Members Voting @lay:
None
Council Members Ab,e,t:
John A. Baum, Reb, S. McCianan@ John D. I'locs and John
L. Perry
*Verbal Vote