MARCH 30, 1993 MINUTESCity of Vir iriia F3cacI-1
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL
1I1}OR NEI ERA C OBERNDORF At Large
VIII MA}OR WILLIAM D SLSSOMS JR At Large
JOIE` 1 BAUM. Blackwat.-, Borough
LINWOOD U BRANCH 111 Virginia Bea,h Borough
J MIS 1V BRAZIER JR Lvnnhavrn Borough
ROBLRT W CLYBURN Kempntille Borough
ROBERT K DEAD Princess Anne Brough
LOl'IS R JO1'ES Bade Borough
DAL'! J LANTEIGNE Punto Borough
!O1 -IN D MOSS At Large
''A\C} I. PARKER At Large
J a NES K SPORE C t Manager
Lf.SLIC L ULLE} Cat, Attrner
RL711 HODGCS SMITH CMC AAE Cit, Clerk
CITY COUNCIL AGENDA
SPECIAL SESSION
MARCH 30, 1993
I. FORMAL SESSION
A. CALL TO ORDER - Mayor Meyera E. Obemdorf
B. ELECTRONIC ROLL CALL OF CITY COUNCIL
II. READING OF MAYOR'S CALL TO SPECIAL SESSION
III. 1993-1994 FISCAL YEAR OPERATING BUDGET
James K. Spore, City Manager
IV. RESOLUTIONS
281 CITY HALL BUILDING
MUNICIPAL CENTER
VIRGINIA BEACH VIRGINIA 23456-9005
1804) 427-4303
- Council Chamber - 12:00 NOON
A. Resolutions providing for the issuance and sale of General Obligation Refunding Bonds,
Series of 1993, of the City of Virginia Beach, Virginia, in the maximum amount of $160 -Million,
providing for the form, details and payment thereof; and, refunding of certain bonds of the City.
B. Resolutions providing for the issuance and sale of $20 -Million General Obligation Public
Improvement Bonds, Series of 1993A, of the City of Virginia Beach, Virginia, and providing for
the form, details and payment thereof.
V. ADJOURNMENT
i
MINUTES
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
March 30, 1993
Mayor Meyera E. Oberndorf called to order the SPECIAL SESSION of the VIRGINIA BEACH CITY
COUNCIL for the City Manager's Presentation of the 1993 - 1994 FISCAL YEAR OPERATING
BUDGET and Resolutions authorizing issuance and sale of General Obligation Public Improvement
Bonds and Refunding Bonds in the Council Chamber, City Hall Building, on Tuesday, March 30, 1993,
at 12:00 NOON.
Council Members Present:
John A. Baum, Linwood O. Branch, III, James W Brazier, Jr., Robert
W Clyburn, Robert K Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf Nancy K Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Absent:
None
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Item II -A. ITEM # 36649
The Mayor read the CALL TO SPECIAL SESSION:
ff
HONORABLE MEMBERS OF CITY COUNCIL:
In accordance with the City Charter, Section 3.06, the City
Code, Section 2-21, and by the authority vested in me as Mayor of the
City, I hereby call a SPECIAL FORMAL SESSION of the VIRGINIA
BEACH CITY COUNCIL in the Council Chamber, City Hall Building,
on Tuesday March 30, 1993, at 12:00 NOON for the following purposes:
(a)
(b)
(c)
City Manager's presentation of
the 1993-1994 FISCAL YEAR
OPERATING BUDGET.
Resolution authorizing issuance
and sale of $20,0000,000
General Obligation Public
Improvement Bonds.
Resolution authorizing issuance
and sale of $160,000,000
Refunding Bonds.
Sincerely,
s/Meyera E. Oberndorf
Mayor"
March 30, 1993
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Item III.
1993-1994 FISCAL ITEM # 36650
YEAR OPERATING BUDGET
The City Manager advised the FY 1993/1994 OPERATING BUDGET is a Budget for the future. A
summary budget for FY 1994/1995 OPERATING BUDGET is also included. The Five Year Forecast
has been made a part of the document. The direction of the Budget has been set by the City Council.
The feared $12 -MILLION gap between revenues and expenditures has been closed, a firm foundation
for future City budgets has been set, appropriate compensation adjustments to all employees has been
provided and focus has been paced on priority services. Two new user -based charges have been
suggested to improve equity and reduce dependence on the property tax. Property taxes have been
proposed to be adjusted to recognize certain savings attained. These actions, if approved, will reduce the
adopted Real Estate Tax Rate by 5.2 cents from $1.147 to $1.095. There will then be a future reduction
of 1.6 cents in Fiscal Year 1994/1995. The budget continues to provide quality services which the citizens
of Virginia Beach have come to expect. During Fiscal year 93/94 a total of 179 full time positions will
be eliminated. This brings thee total number of FTE's abolished since mid -FY 90/91 to 459. The City's
operation is fundamentally different from that of the military. The City's mission has not changed. The
demand for services has increased dramatically.
E. Dean Block Director of Management and Budge4 advised the City's missions and goals are extremely
important. There are certain themes which are conveyed throughout the document.
FORCES SHAPING THE BUDGET
Guidance of the Governing Body
The City's Mission and Goals
Increasing Service Demands
Closing the $12 -MILLION "October Gap"
Reducing Cost Structure for Future Years
Being a Fair Employer, but Demanding High Productivity
Greater Focus on User Fees - Less Reliance on Real Estate
Tax
Culmination of Years of Effort
A Sense of Balance Regarding the Needs of Stakeholders.
BUDGET SUMMARY
CITY
Operations
Debt SVS/CIP
TOTAL
232.3
48.4
239.9
58.4
3.3
20.7
$280.7
$298.3
6.3%
SCHOOLS
State
143.0
144.0
0 7
City
122.9
128.2
4.3
Other
46.8
48.9
4.6
Total Operations
312.8
321.2
2.7
Debt SVS/CIP
241
31.4
27.1
TOTAL
$337.5
$352.6
4.5%
UTILITIES
Operations
36.9
42.9
16.4
Debt SVS/CIP
16.9
16.9
-- -
TOTAL
$ 53.8
$ 59.8
11.3%
GRAND TOTAL
$671.9
$710.8
5.8%
March 30, 1993
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Item III.
1993-1994 FISCAL YEAR ITEM # 36650 (Continued)
OPERATING BUDGET
HIGHLIGHTS
Balanced on current revenue, current expense basis; No Real
Estate Tax increase
Closes the "October Gap" of $12 -MILLION
Cuts 179 City FTE's
Increases local per pupil contribution; Funds General
Assembly pay raise target; does not fully fund School Board
request.
Proposes new user charge revenues; reduces real restate tax
rate by 5.2 cents.
City employee compensation and hours changed; Equitable
pay raises proposed.
New 5 -year forecast. Alternative Budget.
The establishment of a new residential refuse fee, effective November, 1993 at $6.85 per month with
additional trash cans costing $1.50. This will cover the cost of collection. The City will no longer be in
the business of commercial trash collection. The City now serves approximately 600 businesses with
commercial trash collection. The fees charged do not recover the costs. The budget proposes an expanded
E-911 telephone charge to fund equipment and personnel upgraded to the City's Public Safety
Communications capabilities and to utilize new legislative authority to address certain existing E -911 -
related costs. The budget proposes to implement new State legislation enabling an additional $2/Case
Court User Fee charge.
Major actions to reduce costs through service and facility realignments and reductions include:
Close the Dome, effective July 1, 1993
Close the Consumer Protection Unit of the Commonwealth's Attorney
effective July 1, shift funding to criminal prosecution activities in the
same department.
Defer construction and staffing of the General Booth Fire Station.
Close the Social Services Department locally funded Court Mediation
Program for the Juvenile Court and shift funding to address increased
costs associated with Juvenile pre- and post -dispositional detention and
news services to youth.
Elimination, after October 15, 1993, of all City collections of
commercial waste. (Alternatively, significant rate increases for
commercial waste collection and disposal would be needed).
Reductions in COIG, Arts and Humanities, Neptune Festival, Lifesaving
Museum and other outside agency support.
March 30, 1993
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Item III.
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1993-1994 FISCAL YEAR ITEM # 36650 (Continued)
OPERATING BUDGET
This budget proposes an integrated package of changes in how and why we compensate City employees.
There is both "gain and pain" as the City adjusts to incorporate new ideas and bring our practices more
in line with the private sector and the realities of the 1990's.
The work week will be lengthened to 40 hours for all employees.
Simultaneously with this proposal, the normal work hours will be
changed from 9:00 A.M. to 5:00 P.M. to 8:30 A.M. to 5:00 P.M.
The City will implement a policy to not lay-off persons displaced by
change through the establishment of a managed attrition program (MAP).
Funding for the MAP and associated employee retaining needs will be
partially provided by eliminating the length of Service Cash Awards.
To foster further productivity a Gainsharing Program will be
implemented for all City employees with the first payments to be made in
December 1993.
Some 225 persons now eligible for overtime will be declared exempt
under FLSA regulations. The definition of the "time worked" for
overtime computation purposes will be changed to exclude annual leave
taken during a pay period.
Provide funding for modest School and City employee pay raises. The
methodology for allocating the funds for Schools will be determined by
the Board. The total dollar amounts provided for School and City use are
based on a per FTE allocation for both City and Schools. For City
employees the following is proposed:
A limited merit program not to exceed 2.5% for employees who
have been with the City at least two years as of July 1, 1993.
Across -the -Board increase, effective December 1, 1993, for all
employees of 2%.
Additional City health insurance contribution of $20/month,
effective December 1, 1993.
PROPOSED CITY COUNCIL REVIEW SCHEDULED
Workshop
Public Hearing
Workshop
Workshop
Public Hearing
Reconciliation Workshop
Adoption of Budget
Tuesday, April 13, 1993
10:00 A.M. - City Council Chamber
Thursday, April 15, 1993
7:00 P.M. - Green Run High School
Tuesday, April 20, 1993
10:00 A.M. - City Council Chamber
Tuesday, April 27, 1993
10:00 A.M. - City Council Chamber
Tuesday, May 4, 1993
7:00 P.M. - City Council Chamber
Thursday, May 6, 1993
10:00 A.M. - City Council Chamber
Tuesday, May 11, 1993
2:00 P.M. - City Council Chamber
March 30, 1993
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Item IV,AIB
RESOLUTIONS ITEM # 36651
A motion was made by Vice Mayor Sessoms, seconded by Councilman Brazier to ADOPT a Resolution
providing for the issuance and sale of General Obligation Refunding Bonds, Series of 1993, of the City
of Virginia Beach, Virginia, in the maximum amount of $160 -Million, providing for the form, details and
payment thereof; anal refunding of certain bonds of the City (OPTION A); AND, Resolution providing for
the issuance and sale of $20 -Million General Obligation Public Improvement Bonds, Series of 1993A,
of the City of Virginia Beach, Virginia, and providing for the form, details and payment thereof (OPTION
A)
Upon SUBSTITUTE MOTION by Councilman Moss, seconded by Councilman Dean, City Council
ADOPTED:
Resolution providing for the issuance and sale of General Obligation
Refunding Bonds, Series of 1993, of the City of Virginia Beach, Virginia,
in the maximum amount of $160 -Million, providing for the form, details
and payment thereof; anal refunding of certain bonds of the City
(OPTION A);
AND
Resolution providing for the issuance and sale of $20 -Million General
Obligation Public Improvement Bonds, Series of 1993A, of the City of
Virginia Beach, Virginia, and providing for the form, details and payment
thereof (OPTION A-1) containing Exhibit A.
Voting: 6-5
Council Members Voting Aye:
Linwood O. Branch, III, Robert K Dean, Louis R Jones, John D. Moss,
Mayor Meyera E. Oberndorf and Nancy K Parker
Council Members Voting Nay:
John A. Baum, James W Brazier, Jr., Robert W Clyburn, Paul J.
Lanteigne and Vice Mayor William D. Sessoms, Jr.
Council Members Absent:
None
March 30, 1993
OPTION A - REFUNDING BONDS
At a regular meeting of the City Council of the City of
Virginia Beach, Virginia, held on March 30, 1993, at the time and
place established by the City Council for such meetings, at which
the following members were present and absent:
PRESENT: John A. Baum
Linwood 0. Branch, III
James W. Brazier, Jr.
Robert W. Clyburn
Robert K. Dean
Louis R. Jones
ABSENT: None
Paul J. Lanteigne
John D. Moss
Mayor Meyera E. Oberndorf
Nancy K. Parker
Vice Mayor William D. Sessoms, Jr.
the following resolution was adopted by the affirmative roll -call
of a majority of the members of the City Council, the ayes and
being recorded in the minutes of the meeting as shown below:
vote
nays
MEMBER
John A. Baum
Linwood 0. Branch, III
James W. Brazier, Jr.
Robert W. Clyburn
Robert K. Dean
Louis R. Jones
Paul J. Lanteigne
John D. Moss
Mayor Meyera E. Oberndorf
Nancy K. Parker
Vice Mayor William D. Sessoms, Jr.
VOTE
Nay
Aye
Nay
Nay
Aye
Aye
Nay
Aye
Aye
Aye
Nay
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
GENERAL OBLIGATION REFUNDING BONDS, SERIES OF 1993,
OF THE CITY OF VIRGINIA BEACH, VIRGINIA, IN THE
MAXIMUM AMOUNT OF $160,000,000, PROVIDING FOR THE
FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR
THE REFUNDING OF CERTAIN BONDS OF THE CITY
WHEREAS, the City of Virginia Beach, Virginia (the "City") ,
has the following bond issues outstanding:
(a) General Obligation Public Improvement Bonds, Series of
1991C, dated August 1, 1991, in the aggregate outstanding principal
amount of $46,600,000;
(b) General Obligation Public Improvement Bonds, Series of
1991A, dated July 31, 1991, in the aggregate outstanding principal
amount of $35,860,000;
(c) General Obligation Public Improvement Bonds, Series of
1990A, dated June 1, 1990, in the aggregate outstanding principal
amount of $36,945,000;
(d) General Obligation Public Improvement Bonds, Series of
1989A, dated October 1, 1989, in the aggregate outstanding
principal amount of $34,170,000;
(e) General Obligation Public Improvement Bonds, Series of
1988A, dated April 15, 1988, in the aggregate outstanding principal
amount of $33,560,000;
(f) General Obligation Public Improvement Bonds, Series of
1987, dated May 15, 1987, in the aggregate outstanding principal
amount of $21,015,000;
(g) General Obligation Public Improvement Refunding Bonds,
Series of 1986, dated September 1, 1986, in the aggregate
outstanding principal amount of $26,090,000;
(h) General Obligation Public Improvement Bonds, Series of
1986, dated May 1, 1986, in the aggregate outstanding principal
amount of $30,590,000;
(i) General Obligation Water and Sewer Refunding Bonds,
Series of 1986, dated September 1, 1986, in the aggregate
outstanding principal amount of $8,235,000;
(j) General Obligation Water and Sewer Bonds, Series of 1986,
dated May 1, 1986, in the aggregate outstanding principal amount of
$4,935,000;
(k) General Obligation Public Improvement Refunding Bonds,
Series of 1985, dated November 15, 1985, in the aggregate
outstanding principal amount of $18,275,000;
WHEREAS, it appears that the City can effect considerable
savings by issuing its general obligation refunding bonds in the
maximum amount of $160,000,000 (the "Bonds") to refund all or a
portion of the following maturities of such bond issues
(collectively, the "Refunded Bonds"):
(a) General Obligation Public Improvement Bonds, Series of
1991C, maturing on August 1, 2008 through 2011, in the aggregate
principal amount of $9,850,000 (the "Refunded 1991C Bonds");
(b) General Obligation Public Improvement Bonds, Series of
1991A, maturing on March 1, 2006 through 2011, in the aggregate
principal amount of $11,940,000 (the "Refunded 1991A Bonds");
(c) General Obligation Public Improvement Bonds, Series of
1990A, maturing on June 1, 2004 through 2010, in the aggregate
principal amount of $14,350,000 (the "Refunded 1990A Bonds");
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(d) General Obligation Public Improvement Bonds, Series of
1989A, maturing on October 1, 2000 through 2009, in the aggregate
principal amount of $20,100,000 (the "Refunded 1989A Bonds");
(e) General Obligation Public Improvement Bonds, Series of
1988A, maturing on May 1, 1999 through 2008, in the aggregate
principal amount of $20,960,000 (the "Refunded 1988A Bonds");
(f) General Obligation Public Improvement Bonds, Series of
1987, maturing on May 1, 1998 through 2000, in the aggregate
principal amount of $7,230,000 (the "Refunded 1987 Bonds");
(g) General Obligation Public Improvement Refunding Bonds,
Series of 1986, maturing on July 15, 1998 through 2000, and
July 15, 2003 and 2004, in the aggregate principal amount of
$14,700,000 (the "Refunded 1986 Refunding Bonds");
(h) General Obligation Public Improvement Bonds, Series of
1986, maturing on May 1, 1997 through 2006, in the aggregate
principal amount of $24,390,000 (the "Refunded 1986 Bonds");
(i) General Obligation Water and Sewer Refunding Bonds,
Series of 1986, maturing on July 15, 1999 through 2004, in the
aggregate principal amount of $4,335,000 (the "Refunded 1986 Water
and Sewer Refunding Bonds");
(j) General Obligation Water and Sewer Bonds, Series of 1986,
maturing on May 1, 1997 through 2006, in the aggregate principal
amount of $3,940,000 (the Refunded 1986 Water and Sewer Bonds");
(k) General Obligation Public Improvement Refunding Bonds,
Series of 1985, maturing on December 1, 1996 and 1997, in the
aggregate principal amount of $6,930,000 (the "Refunded 1985
Refunding Bonds"); and
WHEREAS, on March 17, 1993, the issuance of the Bonds to
refund the Refunded Bonds was approved by the State Council on
Local Debt as required by Section 15.1-227.46 of the Code of
Virginia of 1950, as amended;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
1. Issuance and Sale. There are authorized to be issued
and sold general obligation bonds in the maximum amount of
$160,000,000 for refunding all or a portion of the Refunded Bonds
and to pay costs of issuance of such bonds. The Bonds shall (a)
bear interest at a "true" or "Canadian" interest cost not to exceed
6.5%, taking into account original issue discount or premium, if
any, (b) shall be sold with an underwriters' discount not to exceed
.75% of the principal amount thereof, and (c) shall mature not
later than July 15, 2011.
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2. Bond Details. The bonds shall be designated "General
Obligation Refunding Bonds, Series of 1993" (the "Bonds") , shall be
dated May 1, 1993, shall be in registered form, in denominations of
$5,000 and multiples thereof, and shall be numbered R-1 upward.
Each Bond shall bear interest from its date at such rates as ghall
be determined at the time of sale, payable semiannually on January
15 and July 15, beginning January 15, 1994. Principal shall be
payable to the registered owners upon surrender of Bonds as they
become due at the office of the Registrar, as defined below.
Interest shall be payable by check or draft mailed to the
registered owners at their addresses as they appear on the
registration books kept by the Registrar on the first day of the
month of each interest payment date. Principal and interest shall
be payable in lawful money of the United States of America.
Initially, one Bond certificate for each maturity of the Bonds
shall be issued and registered to The Depository Trust Company, New
York, New York ("DTC"), or its nominee. The City shall enter into
a Letter of Representations relating to a book -entry system to be
maintained by DTC with respect to the Bonds. "Securities Deposito-
ry" shall mean DTC or any other securities depository for the Bonds
appointed pursuant to this Section.
In the event that (a) the Securities Depository determines not
to continue to act as the securities depository for the Bonds by
giving notice to the Registrar, as hereinafter defined, and the
City discharges its responsibilities hereunder, or (b) the City in
its sole discretion determines (i) that beneficial owners of Bonds
shall be able to obtain certificated Bonds or (ii) to select a new
Securities Depository, then the City Manager shall attempt to
locate another qualified securities depository to serve as
Securities Depository or authenticate and deliver certificated
Bonds to the beneficial owners or to the Securities Depository
participants on behalf of beneficial owners substantially in the
form provided for in Section 5; provided, however, that such form
shall provide for interest on the Bonds to be payable (A) from May
1, 1993, if it is authenticated prior to January 15, 1994, or (B)
otherwise from the January 15 or July 15 that is, or immediately
precedes the date on which it is authenticated (unless payment of
interest thereon is in default, in which case interest on such
Bonds shall be payable from the date to which interest has been
paid). In delivering certificated Bonds, the Registrar shall be
entitled to rely on the records of the Securities Depository as to
the beneficial owners or the records of the Securities Depository
participants acting on behalf of beneficial owners. Such certifi-
cated Bonds will then be registrable, transferable and exchangeable
as set forth in Section 7.
So long as there is a Securities Depository for the Bonds (1)
it or its nominee shall be the registered owner of the Bonds, (2)
notwithstanding anything to the contrary in this Resolution,
determinations of persons entitled to payment of principal and
interest, transfers of ownership and exchanges and receipt of
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notices shall be the responsibility of the Securities Depository
and shall be effected pursuant to rules and procedures established
by such Securities Depository, (3) the Registrar and the City shall
not be responsible or liable for maintaining, supervising or
reviewing the records maintained by the Securities Depository, its
participants or persons acting through such participants, (4)
references in this Resolution to registered owners of the Bonds
shall mean such Securities Depository or its nominee and shall not
mean the beneficial owners of the Bonds, and (5) in the event of
any inconsistency between the provisions of this Resolution and the
provisions of the above -referenced Letter of Representations such
provisions of the Letter of Representations, except to the extent
set forth in this paragraph and the next preceding paragraph, shall
control.
3. Redemption Provisions. The Bonds are not subject to
redemption prior to maturity.
4. Execution and Authentication. The Bonds shall be signed
by the manual or facsimile signature of the Mayor, shall be
countersigned by the manual or facsimile signature of the Clerk,
and the City's seal shall be affixed thereto or a facsimile thereof
printed thereon. No Bond signed by facsimile signatures shall be
valid until it has been authenticated by the manual signature of an
authorized officer or employee of the Registrar and the date of
authentication noted thereon.
5. Bond Form. The Bonds shall be in substantially the
following form:
REGISTERED REGISTERED
No. R-
$
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CITY OF VIRGINIA BEACH
General Obligation Refunding Bond, Series of 1993
INTEREST RATE MATURITY DATE DATED DATE CUSIP
% July 15, May 1, 1993
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Virginia Beach, Virginia (the "City"), for value
received, promises to pay, upon surrender hereof, to the registered
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owner thereof, or registered assigns or legal representative, the
principal sum stated above on the maturity date stated above, and
to pay interest hereon from its date semiannually on each January
15 and July 15, beginning January 15, 1994, at the annual rate
stated above. Principal and interest are payable in lawful money
of the United States of America by the City Treasurer, who has been
appointed paying agent and registrar for the bonds, or at such bank
or trust company as may be appointed as successor paying agent and
registrar by the City (the "Registrar").
Notwithstanding any other provision hereof, this bond is
subject to a book -entry system maintained by The Depository Trust
Company ("DTC"), and the payment of principal and interest, the
providing of notices and other matters shall be made as described
in the City's Letter of Representations to DTC.
This bond is one of an issue of $ General Obligation
Refunding Bonds, Series of 1993, of like date and tenor, except as
to number, denomination, rate of interest and maturity, issued
pursuant to a resolution adopted by the City Council on March 30,
1993, and the Constitution and statutes of the Commonwealth of
Virginia, including the City Charter and the Public Finance Act of
1991, to provide funds to refund portions of various series of
general obligation bonds issued by the City between 1985 and 1991.
The Bonds are not subject to redemption prior to maturity.
The full faith and credit of the City are irrevocably pledged
for the payment of principal of and interest on this bond.
The Registrar shall treat the registered owner of this bond as
the person exclusively entitled to payment of principal of and
interest on this bond and the exercise of all other rights and
powers of the owner, except that interest payments shall be made to
the person shown as the owner on the first day of the month of each
interest payment date.
All acts, conditions and things required by the Constitution -
and statutes of the Commonwealth of Virginia to happen, exist or be
performed precedent to and in the issuance of this bond have
happened, exist and have been performed, and the issue of the bonds
of which this bond is one, together with all other indebtedness of
the City, is within every debt and other limit prescribed by the
Constitution and statutes of the Commonwealth of Virginia.
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IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has
caused this bond to be signed by its Mayor, to be countersigned by
its Clerk, its seal to be affixed hereto and this bond to be dated
May 1, 1993.
COUNTERSIGNED:
(SEAL)
Clerk, City of Virginia Mayor, City of Virginia
Beach, Virginia Beach, Virginia
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s)
and transfer(s) unto
[PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF TRANSFEREE:]
(Please print or type name and address, including zip code, of
Transferee)
the within bond and all rights thereunder, hereby irrevocably
constituting and appointing
, Attorney, to transfer
said bond on the books kept for the registration thereof, with full
power of substitution in the premises.
Dated:
Signature Guaranteed
NOTICE: Signature(s) must be
guaranteed by a member firm
of the New York Stock
Exchange or a commercial bank
or trust company.
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(Signature of Registered Owner
NOTICE: The signature above
must correspond with the name
of the registered owner as it
appears on the front of this
bond in every particular,
without alteration or
enlargement or any change
whatsoever.
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6. Pledge of Full Faith and Credit. The full faith and
credit of the City are irrevocably pledged for the payment of the
principal of and interest on the Bonds. Unless other funds are
lawfully available and appropriated for timely payment of the
Bonds, the City Council shall levy and collect an annual ad valorem
tax, over and above all other taxes authorized or limited by law
and without limitation as to rate or amount, on all locally taxable
property in the City sufficient to pay when due the principal of
and interest on the Bonds.
7. Registration, Transfer and Owners of Bonds. The City
Treasurer is appointed paying agent and registrar of the Bonds (the
"Registrar"). If no qualified securities depository is the
registered owner of the Bonds, the City may appoint a qualified
bank or trust company as successor Registrar. The Registrar shall
maintain registration books for the registration and exchange of
Bonds. Upon presentation and surrender of any Bond to the
Registrar, at its corporate trust office if the Registrar is a bank
or trust company, together with an assignment duly executed by the
registered owner or his duly authorized attorney or legal
representative in such form as shall be satisfactory to the
Registrar, the City shall execute, and the Registrar shall
authenticate and deliver in exchange, a new Bond or Bonds having an
equal aggregate principal amount, in authorized denominations, of
the same form and maturity, bearing interest at the same rate and
registered in the name as requested by the then registered owner
thereof or its duly authorized attorney or legal representative.
Any such exchange shall be at the expense of the City, except that
the Registrar may charge the person requesting such exchange the
amount of any tax or governmental charge required to be paid with
respect thereto.
The Registrar shall treat the registered owner as the person
or entity exclusively entitled to payment of principal and interest
and the exercise of all other rights and powers of the owner,
except that interest payments shall be made to the person or entity
shown as owner on the registration books on the first day of the
month of the interest payment date.
8. Sale and Award of Bonds. The City Council approves the
following terms of the sale of the Bonds. The Bonds shall be sold
to Goldman, Sachs & Company, PaineWebber Incorporated, Lehman
Brothers, Davenport & Company of Virginia, Inc., Craigie
Incorporated, Wheat, First Securities, Inc. and Scott &
Stringfellow, Inc. (the "Underwriters") pursuant to a Bond
Purchase Agreement between the City and the Underwriters (the "Bond
Purchase Agreement"). The Bond Purchase Agreement shall be in
substantially the form of the Bond Purchase Agreement that the City
executed in connection with its $37,590,000 General Obligation
Bonds, Series of 1992. The Bonds shall be sold at such prices
determined to be in the best interest of the City by the City
Manager subject to the limitations set forth in paragraph 1. The
City Council further authorizes the City Manager to (a) reduce the
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1
aggregate principal amount of the Bonds, (b) determine the maturity
schedule of the Bonds, and (c) determine which of the Refunded
Bonds will be refunded. The City Manager is authorized to execute
a Bond Purchase Agreement with the Underwriters, the execution
thereof to constitute evidence of his approval of such Agreement,
and deliver it to the Underwriters. Following the execution of the
Bond Purchase Agreement, the City Manager shall file a copy of it
with the Clerk. The actions of the City Manager in selling the
Bonds shall be conclusive, and no further action shall be necessary
on the part of the City Council.
9. Final Official Statement. After the Bond Purchase
Agreement has been executed, the City Manager, in collaboration
with the City's financial advisors, shall make such completions,
omissions, insertions and changes in the City's Preliminary
Official Statement not inconsistent with this Resolution as are
necessary or desirable to complete it as a final Official State-
ment, execution thereof by the City Manager to constitute conclu-
sive evidence of his approval of any such completions, omissions,
insertions and changes. The City shall arrange for the delivery to
the Underwriters of a reasonable number of copies of the final
Official Statement, within seven business days after the Bond
Purchase Agreement has been executed, for delivery to each
potential investor requesting a copy of the Official Statement and
to each person to whom the Underwriters initially sell Bonds. Such
delivery to the Underwriters shall constitute conclusive evidence
that the Official Statement has been deemed final by the City as of
its date within the meaning of Rule 15c2-12 of the Securities and
Exchange Commission.
10. Escrow Deposit Agreement. The City Manager is authorized
and directed to execute an Escrow Deposit Agreement between the
City and Bankers Trust Company, New York, New York (the "Escrow
Agent"), which is hereby appointed as Escrow Agent (the "Escrow
Deposit Agreement"), providing for the deposit and investment of a
portion of the Bond proceeds for the defeasance of the Refunded
Bonds. The Escrow Deposit Agreement shall be in the form approved
by the City Manager in collaboration with the City Attorney and the
City's bond counsel, the execution thereof by the City Manager to
constitute conclusive evidence of the City Manager's approval of
such Agreement. The Escrow Deposit Agreement shall provide for the
irrevocable deposit of a portion of the Bond proceeds in an escrow
fund which shall be sufficient, when invested in noncallable direct
obligations or obligations guaranteed by the United States
Government, to provide for payment of principal of and premium, if
any, interest on the Refunded Bonds; provided, however, that such
Bond proceeds shall be invested in such manner that none of the
Bonds will be "arbitrage bonds" within the meaning of Section 148
of the Internal Revenue Code of 1986, as amended, and regulations
issued pursuant thereto (the "Code").
11. Deposit of Bond Proceeds. The City Treasurer is hereby
authorized and directed to provide for the delivery of the
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Refunding Portion to the Escrow Agent for deposit in the escrow
fund established by the Escrow Agreement, and to provide for the
deposit of the remaining proceeds of the Bonds in a special account
to be used to finance the costs of refunding the Refunded Bonds and
issuing the Bonds. The City Treasurer is further authorized and
directed to take all such further action as may be necessary or
desirable in connection with the payment and redemption of the
Refunded Bonds.
12. Redemption of Refunded Bonds. The City Manager is
authorized and directed to determine which Refunded 1991C Bonds,
the Refunded 1991A Bonds, the Refunded 1990A Bonds, the Refunded
1989A Bonds, the Refunded 1988A Bonds, the Refunded 1987 Bonds, the
Refunded 1986 Refunding Bonds, the Refunded 1986 Bonds, the
Refunded 1986 Water and Sewer Refunding Bonds, the Refunded 1986
Water and Sewer Bonds and the Refunded 1985 Refunding Bonds shall
constitute the Refunded Bonds. The Refunded Bonds are specifically
and irrevocably called for redemption on the first applicable date
when such Refunded Bonds are callable prior to maturity. The
Escrow Agreement shall provide for giving notice of redemption in
accordance with the resolutions authorizing such bonds to the
registered owners of the Refunded Bonds.
13. Preparation and Delivery of Bonds. After the Bond
Purchase Agreement has been executed, the officers of the City are
authorized and directed to take all proper steps to have the Bonds
prepared and executed in accordance with their terms and to deliver
the Bonds to the Underwriter upon payment therefor.
14. Arbitrage Covenants. (a) Except for the City's
$20,000,000 General Obligation Public Improvement Bonds, Series of
1993A, the City represents that there have not been issued, and
covenants that there will not be issued, any obligations that would
be treated as part of the same issue of obligations as the Bonds
within the meaning of Treasury Regulations Section 1.103-13 (b) (10) .
(b) The City shall not take or omit to take any action the
taking or omission of which will cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Code and
regulations issued pursuant thereto, or otherwise cause interest on
the Bonds to be includable in the gross income of the registered
owners thereof under existing statutes. Without limiting the
generality of the foregoing, the City shall comply with any
provision of law which may require the City at any time to rebate
to the United States any part of the earnings derived from the
investment of the gross proceeds of the Bonds, unless the City
receives an opinion of nationally recognized bond counsel that such
compliance is not required to prevent interest on the Bonds from
being includable in the gross income of the registered owners
thereof under existing statutes.
15. Non -Arbitrage Certificate and Elections. Such officers
of the City as may be requested are hereby authorized and directed
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1
to execute an appropriate certificate setting forth the expected
use and investment of the proceeds of the Bonds in order to show
that such expected use and investment will not violate the
provisions of Section 148 of the Code and regulations issued
pursuant thereto. Such certificate shall be in such form as may be
requested by bond counsel for the City.
16. Limitation on Private Use. The City covenants that it
shall not permit the proceeds of the Bonds to be used in any manner
that would result in (a) 5% or more of such proceeds being used in
a trade or business carried on by any person other than a govern-
mental unit, as provided in Section 141(b) of the Code, (b) 5% or
more of such proceeds being used with respect to any output
facility (other than a facility for the furnishing of water),
within the meaning of Section 141(b)(4) of the Code, or (c) 5% or
more of such proceeds being used directly or indirectly to make or
finance loans to any persons other than a governmental unit, as
provided in Section 141(c) of the Code; provided, however, that if
the City receives an opinion of nationally recognized bond counsel
that any such covenants need not be complied with to prevent the
interest on the Bonds from being includable in the gross income for
federal income tax purposes of the registered owners thereof under
existing law, the City need not comply with such covenants.
17. Applicable Law. The City elects that the Bonds shall be
issued pursuant to the Public Finance Act of 1991, Section 15.1-
227.1 et seq. of the Code of Virginia of 1950, as amended.
18. Other Actions. All other actions of officers of the City
and the City Council in conformity with the purposes and intent of
this Resolution and in furtherance of the issuance and sale of the
Bonds and the payment and redemption of the Refunded Bonds are
hereby ratified, approved and confirmed. The officers of the City
are authorized and directed to execute and deliver all certificates
and instruments and to take all action necessary or desirable in
connection with the issuance, sale and delivery of the Bonds.
19. Repeal of Conflicting Resolutions. All resolutions or
parts of resolutions in conflict herewith are hereby repealed.
20. Effective Date.
immediately.
This Resolution shall take effect
The undersigned Clerk of the City of Virginia Beach, Virginia,
hereby certifies that the foregoing constitutes a true and correct
extract from the minutes of a regular meeting of the City Council
of the City of Virginia Beach, Virginia, held on the 30th day of
March, 1993, and of the whole thereof so far as applicable to the
matters referred to in such extract.
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1
•
WITNESS my signature and the seal of the City of Virginia
Beach, Virginia, this day of , 1993.
(SEAL)
Clerk, City of Virginia Beach,
Virginia
AP 2 VED AS TO CO U
SluNAUJ, .:
APPROVED AS TO LEGA!.
SUFFICIENCY AND FORM
; 144.90 6- . le-xamtit,
CITY ATTORNEY
i
OPTION A-1
$20,000,000 General Obligation
Public Improvement Bonds
Requested by Councilman Moss
At a regular meeting of the City Council of the
Virginia Beach, Virginia, held on March 30, 1993, at the
place established by the City Council for such meetings,
the following members were present and absent:
PRESENT:
ABSENT:
John A. Baum
Linwood 0. Branch, III
James W. Brazier, Jr.
Robert W. Clyburn
Robert K. Dean
Louis R. Jones
None
City of
time and
at which
Paul J. Lanteigne
John D. Moss
Mayor Meyera E. Oberndorf
Nancy K. Parker
Vice Mayor William D. Sessoms, Jr.
the following resolution was adopted by the affirmative roll -call
of a majority of the members of the City Council, the ayes and
being recorded in the minutes of the meeting as shown below:
vote
nays
MEMBER
John A. Baum
Linwood 0. Branch, III
James W. Brazier, Jr.
Robert W. Clyburn
Robert K. Dean
Louis R. Jones
Paul J. Lanteigne
John D. Moss
Mayor Meyera E. Oberndorf
Nancy K. Parker
Vice Mayor William D. Sessoms, Jr.
VOTE
Nay
Aye
Nay
Nay
Aye
Aye
Nay
Aye
Aye
Aye
Nay
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$20,000,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT
BONDS, SERIES OF 1993A, OF THE CITY OF VIRGINIA
BEACH, VIRGINIA, AND PROVIDING FOR THE FORM,
DETAILS AND PAYMENT THEREOF
WHEREAS, the issuance of $68,375,000 of bonds of the City of
Virginia Beach, Virginia (the "City"), was authorized by an
ordinance adopted by the City Council on August 21, 1989, and
approved by the qualified voters of the City at an election held on
November 7, 1989, to finance continuing development of the City's
school system, $67,080,000 of which bonds have been issued and
sold;
WHEREAS, the issuance of $36,100,000 of bonds of the City was
authorized by an ordinance adopted by the City Council on November
12, 1991, without being submitted to the qualified voters of the
City, for the purposes and in the amounts shown below, none of
which bonds have been issued and sold:
School projects, including planning, design,
construction, renovation, site acquisition,
expansion, equipping, and furnishing of
schools and related facilities
Engineering and highway projects, including
site acquisition and improvements, design,
planning, construction, improvement,
replacement, expansion, and extension of
streets, highways, bikeways, and bridges
Drainage projects and outfall improvements
including channel improvements and pumping
stations
Building projects, including design, planning
construction, improvements, renovation,
expansion, equipping, and furnishing of
a Beach Borough Service Center, other
municipal offices, fire and rescue stations,
courts, storage, and other facilities
Parks and recreation projects, including new
athletic fields and park facilities, upgrading
existing athletic fields, renovating tennis
courts, park improvements, storage, and
other facilities
$ 9,060,000
20,894,026
2,766,294
1,596,810
1,782,870
TOTAL ,$36,100,000;
WHEREAS, the issuance of $41,300,000 of bonds of the City was
authorized by an ordinance adopted by the City Council on November
24, 1992, without being submitted to the qualified voters of the
City, for the purposes and in the amounts shown below, none of
which bonds have been issued and sold:
School projects, including planning,
design, construction, renovation, expansion,
equipping, and furnishing of schools and
related facilities
Building projects, including design,
planning, construction, improvements,
renovation, expansion, equipping, and
furnishing of courts, libraries, storage,
and other facilities
$40,545,232
754,768
TOTAL $41,300,000;
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1
WHEREAS, the City Council has determined it is in the City's
best interest to issue and sell the remaining $1,295,000 of the
school bonds authorized in 1989, the $9,060,000 of bonds authorized
in 1991 for schools, and $9,645,000 of the bonds authorized in 1992
for schools; and
WHEREAS, it has been recommended to the City Council by
representatives of Government Finance Associates, Inc. and
Government Finance Group, Inc. (the "Financial Advisors") that the
City issue and sell, as a single issue of public improvement bonds,
such $20,000,000 of bonds;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
1. Issuance and Sale. There are authorized to be issued
and sold as a single issue of $20,000,000 public improvement bonds,
consisting of the $1,295,000 remaining amount for schools
authorized in 1989, the $9,060,000 amount authorized for schools in
1991, and $9,645,000 of the amount authorized for schools in 1992
as particularly set out in Exhibit A, which is incorporated in this
Resolution. The Bonds (a) shall bear interest at a "true" or
"Canadian" interest cost not to exceed 6.5%, taking into account
original issue discount or premium, if any, (b) shall be sold with
an underwriters' discount not to exceed .75% of the principal
amount thereof, and (c) shall mature not later than July 15, 2013.
2. Bond Details. The bonds shall be designated "General
Obligation Public Improvement Bonds, Series of 1993A" (the
"Bonds"), shall be dated May 1, 1993, shall be in registered form,
in denominations of $5,000 and multiples thereof, and shall be
numbered R-1 upward. Each Bond shall bear interest at such rates
as shall be determined at the time of sale, payable semiannually on
January 15 and July 15, beginning January 15, 1994. Principal and
premium, if any, shall be payable to the registered owners upon
surrender of Bonds as they become due at the office of the
Registrar, as defined below. Interest shall be payable by check or
draft mailed to the registered owners at their addresses as they
appear on the registration books kept by the Registrar on the first
day of the month of each interest payment date. Principal,
premium, if any, and interest shall be payable in lawful money of
the United States of America.
Initially, one Bond certificate for each maturity of the Bonds
shall be issued and registered to The Depository Trust Company, New
York, New York ("DTC"), or its nominee. The City shall enter into
a Letter of Representations relating to a book -entry system to be
maintained by DTC with respect to the Bonds. "Securities Deposito-
ry" shall mean DTC or any other securities depository for the Bonds
appointed pursuant to this Section.
In the event that (a) the Securities Depository determines not
to continue to act as the securities depository for the Bonds by
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giving notice to the Registrar, as hereinafter defined, and the
City discharges its responsibilities hereunder, or (b) the City in
its sole discretion determines (i) that beneficial owners of Bonds
shall be able to obtain certificated Bonds or (ii) to select a new
Securities Depository, then the City Manager shall attempt to
locate another qualified securities depository to serve as
Securities Depository or authenticate and deliver certificated
Bonds to the beneficial owners or to the Securities Depository
participants on behalf of beneficial owners substantially in the
form provided for in Section 5; provided, however, that such form
shall provide for interest on the Bonds to be payable (A) from May
1, 1993, if it is authenticated prior to July 15, 1994, or (B)
otherwise from the January 15 or July 15 that is, or immediately
precedes the date on which it is authenticated (unless payment of
interest thereon is in default, in which case interest on such
Bonds shall be payable from the date to which interest has been
paid). In delivering certificated Bonds, the Registrar shall be
entitled to rely on the records of the Securities Depository as to
the beneficial owners or the records of the Securities Depository
participants acting on behalf of beneficial owners. Such certifi-
cated Bonds will then be registrable, transferable and exchangeable
as set forth in Section 7.
So long as there is a Securities Depository for the Bonds (1)
it or its nominee shall be the registered owner of the Bonds, (2)
notwithstanding anything to the contrary in this Resolution,
determinations of persons entitled to payment of principal,
premium, if any, and interest, transfers of ownership and exchanges
and receipt of notices shall be the responsibility of the Securi-
ties Depository and shall be effected pursuant to rules and
procedures established by such Securities Depository, (3) the
Registrar and the City shall not be responsible or liable for
maintaining, supervising or reviewing the records maintained by the
Securities Depository, its participants or persons acting through
such participants, (4) references in this Resolution to registered
owners of the Bonds shall mean such Securities Depository or its
nominee and shall not mean the beneficial owners of the Bonds, and
(5) in the event of any inconsistency between the provisions of
this Resolution and the provisions of the above -referenced Letter
of Representations such provisions of the Letter of Representa-
tions, except to the extent set forth in this paragraph and the
next preceding paragraph, shall control.
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I
1
3. Redemption Provisions. Bonds maturing on or before July
15, 2003, are not subject to redemption prior to maturity. Bonds
maturing on or after July 15, 2004, are subject to redemption prior
to maturity at the option of the City on or after July 15, 2003, in
whole at any time or in part on any interest payment date, upon
payment of the following redemption prices (expressed as a
percentage of principal amount of bonds to be redeemed) plus
interest accrued and unpaid to the redemption date:
Period During Which Redeemed Redemption
Both Dates Inclusive Price
July 15, 2003 to July 14, 2004 102 %
July 15, 2004 to July 14, 2005 101
July 15, 2005 and thereafter 100
If less than all of the Bonds are called for redemption, the
Bonds to be redeemed shall be selected by the chief financial
officer of the City in such manner as he may determine to be in the
best interest of the City. If less than all the Bonds of a
particular maturity are called for redemption, the Bonds to be
redeemed shall be selected by DTC or any successor securities
depository pursuant to its rules and procedures or, if the book
entry system is discontinued, shall be selected by the Registrar by
lot in such manner as the Registrar in its discretion may deter-
mine. In either case, (a) the portion of any Bond to be redeemed
shall be in the principal amount of $5,000 or some integral
multiple thereof and (b) in selecting Bonds for redemption, each
Bond shall be considered as representing that number of Bonds that
is obtained by dividing the principal amount of such Bond by
$5,000. The City shall cause notice of the call for redemption
identifying the Bonds or portions thereof to be redeemed to be sent
by registered or certified mail, not less than 30 nor more than 60
days prior to the redemption date, to DTC or its nominee as the
registered owner of the Bonds. The City shall not be responsible
for mailing notice of redemption to anyone other than DTC or
another qualified securities depository or its nominee unless no
qualified securities depository is the registered owner of the
Bonds. If no qualified securities depository is the registered
owner of the Bonds, notice of redemption shall be mailed to the
registered owners of the Bonds. If a portion of a Bond is called
for redemption, a new Bond in principal amount equal to the un-
redeemed portion thereof shall be issued to the registered owner
upon the surrender hereof.
4. Execution and Authentication. The Bonds shall be signed
by the manual or facsimile signature of the Mayor, shall be
countersigned by the manual or facsimile signature of the Clerk,
and the City's seal shall be affixed thereto or a facsimile thereof
printed thereon. No Bond signed by facsimile signatures shall be
valid until it has been authenticated by the manual signature of an
authorized officer or employee of the Registrar and the date of
authentication noted thereon.
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1
5. Bond Form. The Bonds shall be in substantially the
following form:
REGISTERED REGISTERED
No. R-
$
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CITY OF VIRGINIA BEACH
General Obligation Public Improvement Bond, Series of 1993A
INTEREST RATE MATURITY DATE DATED DATE CUSIP
July 15, May 1, 1993
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Virginia Beach, Virginia (the "City"), for value
received, promises to pay, upon surrender hereof, to the registered
owner thereof, or registered assigns or legal representative, the
principal sum stated above on the maturity date stated above, and
to pay interest hereon semiannually on each January 15 and July 15,
beginning January 15, 1993, at the annual rate stated above.
Principal, premium, if any, and interest are payable in lawful
money of the United States of America by the City Treasurer, who
has been appointed paying agent and registrar for the bonds, or at
such bank or trust company as may be appointed as successor paying
agent and registrar by the City (the "Registrar").
Notwithstanding any other provision hereof, this bond is
subject to a book -entry system maintained by The Depository Trust
Company ("DTC"), and the payment of principal and interest, the
providing of notices and other matters shall be made as described
in the City's Letter of Representations to DTC.
This bond is one of an issue of $ General Obligation
Public Improvement Bonds, Series of 1993A, of like date and tenor,
except as to number, denomination, rate of interest and maturity,
issued pursuant to a resolution adopted by the City Council on
March 30, 1993, and the Constitution and statutes of the
Commonwealth of Virginia, including the City Charter and the Public
Finance Act of 1991, to finance improvements to the City's school
system.
Bonds maturing on or before July 15, 2003, are not subject to
redemption prior to maturity. Bonds maturing on or after July 15,
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1
2004, are subject to redemption prior to maturity at the option of
the City on or after July 15, 2003, in whole at any time or in part
on any interest payment date, upon payment of the following
redemption prices (expressed as a percentage of principal amount of
bonds to be redeemed) plus interest accrued and unpaid to the
redemption date:
Period During Which Redeemed Redemption
Both Dates Inclusive Price
July 15, 2003 to July 14, 2004 102 %
July 15, 2004 to July 14, 2005 101
July 15, 2005 and thereafter 100
If less than all of the bonds are called for redemption, the
bonds to be redeemed shall be selected by the chief financial
officer of the City in such manner as he may determine to be in the
best interest of the City. If less than all the bonds of a
particular maturity are called for redemption, the bonds within
such maturity to be redeemed shall be selected by DTC or any
successor securities depository pursuant to its rules and proce-
dures or, if the book entry system is discontinued, shall be
selected by the Registrar by lot in such manner as the Registrar in
its discretion may determine. In either case, (a) the portion of
any bond to be redeemed shall be in the principal amount of $5,000
or some integral multiple thereof and (b) in selecting bonds for
redemption, each bond shall be considered as representing that
number of bonds that is obtained by dividing the principal amount
of such bond by $5,000. The City shall cause notice of the call
for redemption identifying the bonds or portions thereof to be
redeemed to be sent by registered or certified mail, not less than
30 nor more than 60 days prior to the redemption date, to DTC or
its nominee as the registered owner thereof.
The full faith and credit of the City are irrevocably pledged
for the payment of principal of and premium, if any, and interest
on this bond.
The Registrar shall treat the registered owner of this bond as
the person exclusively entitled to payment of principal of and
interest on this bond and the exercise of all other rights and
powers of the owner, except that interest payments shall be made to
the person shown as the owner on the first day of the month of each
interest payment date.
All acts, conditions and things required by the Constitution
and statutes of the Commonwealth of Virginia to happen, exist or be
performed precedent to and in the issuance of this bond have
happened, exist and have been performed, and the issue of the bonds
of which this bond is one, together with all other indebtedness of
the City, is within every debt and other limit prescribed by the
Constitution and statutes of the Commonwealth of Virginia.
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IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has
caused this bond to be signed by its Mayor, to be countersigned by
its Clerk, its seal to be affixed hereto and this bond to be dated
May 1, 1993.
COUNTERSIGNED:
(SEAL)
Clerk, City of Virginia Mayor, City of Virginia
Beach, Virginia Beach, Virginia
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s)
and transfer (s) unto
[PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF TRANSFEREE:]
(Please print or type name and address, including zip code, of
Transferee)
the within bond and all rights thereunder, hereby irrevocably
constituting and appointing
, Attorney, to transfer
said bond on the books kept for the registration thereof, with full
power of substitution in the premises.
Dated:
Signature Guaranteed
NOTICE: Signature(s) must be
guaranteed by a member firm
of the New York Stock
Exchange or a commercial bank
or trust company.
1
-8-
(Signature of Registered Owner
NOTICE: The signature above
must correspond with the name
of the registered owner as it
appears on the front of this
bond in every particular,
without alteration or
enlargement or any change
whatsoever.
1
6. Pledge of Full Faith and Credit. The full faith and
credit of the City are irrevocably pledged for the payment of the
principal of and premium, if any, and interest on the Bonds.
Unless other funds are lawfully available and appropriated for
timely payment of the Bonds, the City Council shall levy and
collect an annual ad valorem tax, over and above all other taxes
authorized or limited by law and without limitation as to rate or
amount, on all locally taxable property in the City sufficient to
pay when due the principal of and premium, if any, and interest on
the Bonds.
7. Registration, Transfer and Owners of Bonds. The City
Treasurer is appointed paying agent and registrar of the Bonds (the
"Registrar"). If no qualified securities depository is the
registered owner of the Bonds, the City may appoint a qualified
bank or trust company as successor Registrar. The Registrar shall
maintain registration books for the registration and exchange of
Bonds. Upon presentation and surrender of any Bond to the
Registrar, at its corporate trust office if the Registrar is a bank
or trust company, together with an assignment duly executed by the
registered owner or his duly authorized attorney or legal
representative in such form as shall be satisfactory to the
Registrar, the City shall execute, and the Registrar shall
authenticate and deliver in exchange, a new Bond or Bonds having an
equal aggregate principal amount, in authorized denominations, of
the same form and maturity, bearing interest at the same rate and
registered in the name as requested by the then registered owner
thereof or its duly authorized attorney or legal representative.
Any such exchange shall be at the expense of the City, except that
the Registrar may charge the person requesting such exchange the
amount of any tax or governmental charge required to be paid with
respect thereto.
The Registrar shall treat the registered owner as the person
or entity exclusively entitled to payment of principal and interest
and the exercise of all other rights and powers of the owner,
except that interest payments shall be made to the person or entity
shown as owner on the registration books on the first day of the
month of the interest payment date.
8. Sale and Award of Bonds. The City Council approves the
following terms of the sale of the Bonds. The Bonds shall be sold
by negotiation with Goldman, Sachs & Company, PaineWebber
Incorporated, Lehman Brothers, Davenport & Company of Virginia,
Inc., Craigie Incorporated, Wheat, First Securities, Inc. and Scott
& Stringfellow, Inc. (the "Underwriters") pursuant to a Bond
Purchase Agreement between the City Council and the Underwriters
(the "Bond Purchase Agreement"). The Bond Purchase Agreement shall
be in substantially the form of the Bond Purchase Agreement that
the City executed in connection with its $37,590,000 General
Obligation Bonds, Series of 1992. The Bonds shall be sold at such
prices determined to be in the best interest of the City by the
City Manager subject to the limitations set forth in paragraph 1.
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The City Council further authorizes the City Manager to determine
the maturity schedule of the Bonds. The City Manager is authorized
to execute a Bond Purchase Agreement with the Underwriters, the
execution thereof to constitute evidence of his approval of such
Agreement, and deliver it to the Underwriters. Following the
execution of the Bona Purchase Agreement, the City Manager shall
file a copy of it with the City Clerk. The actions of the City
Manager in selling the Bonds shall be conclusive, and no further
action shall be necessary on the part of the City Council.
9. Final Official Statement. After the Bond Purchase
Agreement has been executed, the City Manager, in collaboration
with the financial advisors, shall make such completions,
omissions, insertions and changes in the City's Preliminary
Official Statement not inconsistent with this Resolution as are
necessary or desirable to complete it as a final Official State-
ment, execution thereof by the City Manager to constitute conclu-
sive evidence of his approval of any such completions, omissions,
insertions and changes. The City shall arrange for the delivery to
the Underwriters of a reasonable number of copies of the final
Official Statement, within seven business days after the Bond
Purchase Agreement has been executed, for delivery to each
potential investor requesting a copy of the Official Statement and
to each person to whom the Underwriters initially sell Bonds. Such
delivery to the Underwriters shall constitute conclusive evidence
that the Official Statement has been deemed final by the City as of
its date within the meaning of Rule 15c2-12 of the Securities and
Exchange Commission.
10. SNAP Investment Authorization. The City has received and
reviewed the Information Statement dated October 1, 1992 (the
"Information Statement"), describing the State Non -Arbitrage
Program of the Commonwealth of Virginia ("SNAP") and the Contract
Creating the State Non -Arbitrage Program Pool I (the "Contract"),
and the City has determined to authorize the City Treasurer to
utilize SNAP in connection with the investment of the proceeds of
the Bonds. The City acknowledges that the Treasury Board of the
Commonwealth of Virginia is not, and shall not be, in any way
liable to the City in connection with SNAP, except as otherwise
provided in the Contract.
11. Preparation and Delivery of Bonds. After the Bonds have
been sold, the officers of the City are authorized and directed to
take all proper steps to have the Bonds prepared and executed in
accordance with their terms and to deliver the Bonds to the
Underwriter upon payment therefor.
12. Arbitrage Covenants. The City shall not take or omit to
take any action the taking or omission of which will cause the
Bonds to be "arbitrage bonds" within the meaning of Section 148 of
the Code and regulations issued pursuant thereto, or otherwise
cause interest on the Bonds to be includable in the gross income of
the registered owners thereof under existing statutes. Without
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1
limiting the generality of the foregoing, the City shall comply
with any provision of law which may require the City at any time to
rebate to the United States any part of the earnings derived from
the investment of the gross proceeds of the Bonds, unless the City
receives an opinion of nationally recognized bond counsel that such
compliance is not required to prevent interest on the Bonds from
being includable in the gross income of the registered owners
thereof under existing statutes.
13. Non -Arbitrage Certificate and Elections. Such officers
of the City as may be requested are hereby authorized and directed
to execute an appropriate certificate setting forth the expected
use and investment of the proceeds of the Bonds in order to show
that such expected use and investment will not violate the
provisions of Section 148 of the Code and regulations issued
pursuant thereto. Such certificate shall be in such form as may be
requested by bond counsel for the City.
14. Limitation on Private Use. The City covenants that it
shall not permit the proceeds of the Bonds to be used in any manner
that would result in (a) 5% or more of such proceeds being used in
a trade or business carried on by any person other than a govern-
mental unit, as provided in Section 141(b) of the Code, (b) 5% or
more of such proceeds being used with respect to any output
facility (other than a facility for the furnishing of water),
within the meaning of Section 141(b) (4) of the Code, or (c) 5% or
more of such proceeds being used directly or indirectly to make or
finance loans to any persons other than a governmental unit, as
provided in Section 141(c) of the Code; provided, however, that if
the City receives an opinion of nationally recognized bond counsel
that any such covenants need not be complied with to prevent the
interest on the Bonds from being includable in the gross income for
federal income tax purposes of the registered owners thereof under
existing law, the City need not comply with such covenants.
15. Applicable Law. The City elects that the Bonds shall be
issued pursuant to the Public Finance Act of 1991, Section 15.1-
227.1 et seq. of the Code of Virginia of 1950, as amended.
16. Other Actions. All other actions of officers of the City
and the City Council in conformity with the purposes and intent of
this Resolution and in furtherance of the issuance and sale of the
Bonds and the payment and redemption of the Refunded Bonds are
hereby ratified, approved and confirmed. The officers of the city
are authorized and directed to execute and deliver all certificates
and instruments and to take all action necessary or desirable in
connection with the issuance, sale and delivery of the Bonds.
17.
parts of
Repeal of Conflicting Resolutions. All resolutions or
resolutions in conflict herewith are hereby repealed.
18. Effective Date.
immediately.
1
This Resolution shall take effect
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1
The undersigned Clerk of the City of Virginia Beach, Virginia,
hereby certifies that the foregoing constitutes a true and correct
extract from the minutes of a regular meeting of the City Council
of the City of Virginia Beach, Virginia, held on the 30th day of
March, 1993, and of the whole thereof so far as applicable to the
matters referred to in such extract.
WITNESS my signature and the seal of the City of Virginia
Beach, Virginia, this day of , 1993.
(SEAL)
Clerk, City of Virginia Beach,
Virginia
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EXHIBIT A
1989 School Bond Referendum:
Tallwood High School
Landstown Elementary and Middle Schools
1991 Charter:
$ 795,000
500,000
$ 1,295,000
Larkspur Middle School $ 3,000,000
Landstown Elementary and Middle Schools 414,196
Corporate Landing Elementary School 3,767,747
Tallwood High School 378,037
Ocean Lakes High School 1,000,000
First Colonial High School Improvements 500,000
$ 9,060,000
1992 Charter:
Larkspur Middle School
Ocean Lakes High School
First Colonial High School Improvements
Corporate Landing Elementary School
$ 2,735,000
2,735,000
3,765,000
410,000
$ 9,645,000
TOTAL $20,000,000
Any proceeds not needed for any project may be used for
another school project upon approval by Council by resolution.
1
i
Item IV.C,
NEW BUSINESS
ADD-ON
7
ITEM # 36652
Councilman Lanteigne referenced his correspondence of March 30, 1993, to the Honorable Lawrence
Douglas Wilder, Governor - Commonwealth of Virginia, and distributed copies to Members of City
Council. Said letter is hereby made a part of the record. Councilman Lanteigne advised the General
Assembly has adopted amendments to the Virginia State Code relating to "Driving Under the Influence".
Councilman Lanteigne understood the focus of the amendments to allow for administrative license
suspension in an attempt to tighten the laws and provide for a safer Commonwealth. However, there is
one amendment that, if adopted, will have a detrimental effect on highway safety throughout Virginia. This
amendment, found in Section 18.2-268.9, states:
"In no case may the officer making the arrest, or anyone with him at the
time of the arrest, or anyone participating in the arrest of the accused,
conduct or perform the breath test or analyze the results thereof "
For the last fifteen years, police officers have conducted their own breath tests. This amendment is a
major step backwards and will cause law enforcement to unnecessarily waste the most precious resource
- manpower. Councilman Lanteigne is forwarding copies of this letter to members of the General
Assembly and Virginia Chiefs of Police in the hopes that prior to the April Seventh, the Governor will
strike this particular amendment.
March 30, 1993
8
Item V
ADJOURNMENT ITEM # 36653
Mayor Oberndorf DECLARED the City Council Meeting ADJOURNED the Meeting at 1:40 P.M.
Beverly O. Hooks, CMC
Chief Deputy City Clerk
Ruth Hodges Smith, CMC/AAE Meyera E. Oberndorf
City Clerk Mayor
City of Virginia Beach
Virginia
March 30, 1993