APRIL 30, 1986 MINUTESCity of Virginia Beach
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL
MAYOR HAROLD HE/SCHOREB. At L.ry.
VICEJI.IYOR RERA S McCLANAN. PrenW Aw B-mfA
JOHN A. RAUM. BYekV+ro. AWOVA
NANCY A. CREECH. At Lw"
ROBERT E. PEMRM Vnp.r Bwk B-OvA
BARBARA M. HENLEY. Prep. Bororral
H. JACK JENpINGS. JR, LVWAo 8"O"A
LOUIS R. JONES Bows" B-I"A
RORERTG. JONES At Lore.
J HENRY McCOY. JR.. K.w►.-W Bor"Ok
MEYERA E. OBERNDORF. At IArr
RUTH HODGES SMITH. CMC CAN CWA CITY COUNCIL AGENDA
April 30, 1986
Virginia Beach City Council
REGULAR SESSION OF VIRGINIA BEACH CITY COUNCIL
A. CALL TO ORDER - Mayor Harold Heischober
B. ROLL CALL OF CITY COUNCIL
LI CITY HALL BUILDING
MUNICIPAL CENTER
VIRGINIA REACH, VIRGINIA LUN A"
Is"I "14M
C. MOTION TO RECONVENE REGULAR SESSION OF April 28, 1986
D. CITY MANAGER'S PRESENTATION OF BIDS:
a. $37,700,000 General Obligation Public Improvement Bonds,
Series of 1986-
b. $6,080,000 General Obligation Water S Sewer Bonds,
Series of 1986.
E. MAYOR/COUNCIL - DISCUSSION/ACCEPTANCE OF BIDS
F. ADJOURNMENT
- 1:00 PM
RECONVENED REGULAR SESSION
1:00
Wednesday, April 30, 1986
Upon motion by Councilman Fentress, seoconded by Councilman Louis Jones,
the Regular Session of the Council of the City of Virginia Beach, Virginia,
was RECONVENED in the Council Chambers, City Hall Building, on Wednesday,
April 30, 1986, at 1:00 P.M.
Voting: 7-0 *
Council Members Voting Aye:
Robert E. Fentress, Mayor Harold Heischober, Barbara M. Henley,
H. Jack Jennings, Jr., Robert G. Jones, Vice Mayor Reba S.
McClanan and Meyers E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Nancy A. Creech, Louis R. Jones and J. Henry McCoy,
Jr., D.D.S.
*VERBAL VOTE
April 30, 1986
Item D.a/b.
CITY NANAGER'S
PRESENTATION OF BIDS
-39 -
ITEM # 25327
The City Manager advised City Council the City of Virginia Beach had
received five separate bids on its $37,700,000 Public Improvement Bonds and
its $6,080,000 Water and Sewer Bonds, Series of 1986.
Each of the five bids was for all of both series of bonds. The true
interest cost to the City of each of the bids was as follows:
Syndicate Headed By
Prudential-Bache Securities, Inc.
Salomon Brothers, Inc.
The Northern Trust Company
Chase Manhatten Bank
Morgan Guaranty Trust Company
of New York
True Interest Cost
6.9597%
6.9697
7.0104
7.0147
7.0779
The City's financial advisors, Government Finance Associates, Inc., and the
Government Finance Research Center recommended the City accept the LOW BID
of PRUDENTIAL-BACHE SECURITIES, INC.
Mr. Steven Peyser, Assistant Vice President, Government Finance Associates,
Inc., supported the LOW BID of PRUDENTIAL-BACHE SECURITES, INC. and advised
this is basically the lowest interest rate the City has received on a Bond
Sale since 1979. Mr. Peyser further referenced the small differential in
the spread of the Bids.
April 30, 1986
-40 -
Item E.
MAYO&/COUNCIL - DISCUSSION/
ACCEPTANCE OF BIDS ITEM # 25328
Councilman Robert Jones and Vice Mayor McClanan referenced the City of
Chesapeake's interest rate on their series of Bonds was more favorable than
the City of Virginia Beach.
Mr. Steven Peyser, Assistant Vice President, Government Finance Associates,
Inc., advised the Bond Market had been volatile the last few weeks rising
and falling within the same range. The Chesapeake bond issue does have a
shorter average life.
Upon motion by Councilman Jennings, seconded by Councilman Fentress, City
Council ACCEPTED the LOW BID of PRUDENT IAL -BACHE SECURITIES, INC. at a True
Interest Cost of 6.9597% for the City of Virginia Beach's $37,700,000
Public Improvement Bonds and $6,080,000 Water and Sewer Bonds, Series of
1986
Voting: 7-0 *
Council Members Voting Aye:
Robert E. Fentress, Mayor Harold Heischober, Barbara M. Henley,
H. Jack Jennings, Jr., Robert G. Jones, Vice Mayor Reba S.
McClanan and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Nancy A. Creech, Louis R. Jones and J. Henry McCoy,
Jr., D.D.S.
April 30, 1986
*VERBAL VOTE
- 40a -
It was reported that the following bids for both the
$37,700,000 General Obligation Public Improvement Bonds, Series
of 1986, and $6,080,000 General Obligation Water and Sewer Bonds,
Series of 1986 (the Bonds), of the City authorized by resolutions
adopted on April 7, 1986, were received in Virginia Beach at
11:00 a.m. on this date pursuant to the City's Notice of Sale:
NAME OF BIDDER
Prudential-Bache Securities, Inc.
Salomon Brothers, Inc.
The Northern Trust Company
Chase Manhattan Bank
Morgan Guaranty Trust Company
of New York
AMOUNT OF BID
6.95978
6.9697
7.0104
7.0147
7.0779
Each of the bids offered to pay par, a premium as indicated and
accrued interest on the Bonds from the date of the Bonds to the
date of delivery.
A representative of Government Finance Associates, Inc., one
of the City's financial advisors, reported that the bid of
Prudential-Bache Securities Inc.
offered to purchase the Bonds
at the lowest cost to the City, a copy of which bid is attached
hereto and made a part of these minutes, and recommended acceptance
of the bid.
On motion duly made and seconded, the following resolution
was adopted by a majority of the members of the Council by a roll
call vote, the ayes and nays being recorded in the minutes of the
meeting as shown below:
- 40b -
-2-
MEMBER
VOTE
John A. Buam
Absent•
Nancy A. Creech
Absent
Robert E. Fentress
Aye
Harold Heischober
Aye
Barbara M. Henley
Aye
H. Jack Jennings
Aye
Louis R. Jones
Absent
Robert G. Jones
Aye
Reba S. McClanan
Aye
J. Henry McCoy, Jr.
Absent
Meyera E. Oberndorf
Aye
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, that the Bonds, the form and details of which have
heretofore been prescribed by resolutions adopted on April 7,
1986, be and the same are hereby awarded to Prudential-Bache
Securities, Inc. in accordance with the terms of their bid and
CERTIFIED TO BE A TRUE COPY OF THE VIRGINIA BEACH CITY COUNCIL'S ACTION ON
APRIL 30, 1986, FOR THE ACCEPTANCE OF THE LOW BID OF PRUDENTIAL-BACHE
SECURITIES, INC. for the $37,700,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT
BONDS, AND $6,080,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES OF
1986.
uth Hodges Smith, CMC
City Clerk
- 41 -
Item II -F.1
ADJOURNMENT ITEM 11 25329
Upon motion by Councilman Jennings, seconded by Councilwoman Oberndorf, and
BY ACCLAMATION, City Council ADJOURNED the meeting at 1:12 P.M.
o. y,�
Beverly'O. Hooks
Chief Deputy City Clerk
R th Hodges,Smith, CMC
City Clerk
City of Virginia Beach
Virginia
April 30, 1986