MAY 23, 1990 MINUTES
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MAY 23, 1990
ITEM I. SPECIAL FORMAL SESSION - Council Chamber 12:00 NOON
A. CALL TO ORDER - May,r M,y... E. Oberndorf
B. READING OF MAYOR'S CALL TO SPECIAL SESSION
C. ELECTRONIC ROLL CALL OF CITY COUNCIL
D. LOW BID: $40,000,000 General Obligation Public Improvement Bonds,
Series of 1990A.
E. CITY MANAGER'S RECOMMENDATION
F. AWARDING LOW BID:
$40,000,000 General Obligation Public Improvement Bonds,
Series of 1990A.
C. ADJOURNMENT
m I N U T E S
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Vlrginia
May 23, 1990
The SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL was called to order by
Mayor Meyera E. Oberndorf in the Conference Room, City Hall Building, on
Wednesday, May 23, 1990, at 12:00 NOON.
Council Members Present:
John A. Baum, Vice Mayor Robert E. Fentress, Harold
Heischober, Barbara M. Henley, Reba S. McClanan,
Mayor Meyera E. Oberndorf, Nancy K. Parker and
William D. Sessoms, Jr.
Council Members Absent:
Aibert W. Balko, John D. Moss and John L. Perry
- 2 -
Item I.B. ITEM # 32870
The MAYOR read her LETRER stating the purpose of the SPECIAL SESSION:
" 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, T
hereby call a SPECIAL SESSION of the VIRGINIA BEACH
CITY COUNCIL in the Council Chamber, City Hall
Building, on Wednesday, May 23, 1990, at 12:00 NOON
for the purpose of AWARDING a Low Bid on
$40,000,000 General Obligation Public Improvement
Bonds, Series of 1990A."
Respectfully,
S/Meyera E. Oberndorf
Mayor
MEYERA E. OBERNDORF MUNICIPAL CENTER
MAYOR VIRGINIA BEACH, VIRGINIA 23456-9000
May 14, 1990 (&M) 427-4581
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 SESSION of the VIRGINIA BEACH
CITY COUNCIL in the Council Chamber, City Hall Building, on
Wednesday, May 23, 1990, at 12:00 NOON for the purpose of AWARDING
a Low Bid on $40,000,000 General Obligation Public Improvement
Bonds, Series of 1990A.
Respectfully,
Meyera E. Oberndorf
Mayor
MEO/bh
cc: Aubrey V. Watts, Jr., City Manager
Leslie L. Lilley, City Attorney
Ruth Hodges Smith, CMC/AAE, City Clerk
Pam Lingle, Director of Public Information
Virginia Beach Citv Council Received Notice
Councilman Albert W. Balko
Councilman John A. Baum
Councilman Robert E. Fentress
Councilman Harold Heischober
Councilwoman Barbara M. Henley
Councilwoman Reba S. McClanan
Councilman John D. Moss
Councilwoman Nancy K. Parker
Councilman W. D. Sessoms
Councilman John L. Perry
- 3 -
Item I.D. ITEM # 32871
LOW BID
Giles Dodd, Assistant City Manager for Administration, advised the City of
Virginia Beach has received six separate bids on its $40,000,000 General
Obligation Public Improvement Bonds, Series of 1990A.
.Syndicate Headed By % True Interest Cost
Northern Trust Company 6.898
Dean Witter Reynolds 6.9228
Morgan Stanley 6.96288
Shearson Lehman Brothers 6.97306
Manufacturers Hanover 6.978122
Chase Securities 7.0097
Mr. Dodd introduced Stephanie Lewis - Government Finance Associates and
Catherine Holstein - Government Finance Research Center. Stephanie Lewis
referenced a comparison of these bids from the three prior years:
1987 7.01%
1988 6.86%
1989 6.95%
Therefore the year's Interest Rate (6.898%) is the second best in the last four
years of bond sales.
- 4 -
Item I.E. ITEM # 32872
CITY MANAGER'S RECOMMATION
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, Goverriment Finance Associates, Inc. and the Goverrunent
Finance Research Center recommend that the City accept the low bid of Northern
Trust Company and recommend the prompt award of the bonds.
5
Item I.F.
AWARDING THE LOW BID ITEM 32873
Upon motion by Vice Mayor Fentress, seconded by Councilman Sessoms, City
Council ADOPTED:
Resolution awarding $40,000,000 General Obligation
Public Improvement Bonds, Series of 1990A.
AWARDED Low Bid to Northern Trust Company with a
True Interest Cost of 6.898%.
Voting: 7-0
Council Members Voting Aye:
John A. Baum, Vice Mayor Robert E. Fentress, Harold
Heischober, Barbara M. Henley, Mayor Meyera E.
Oberndorf, Nancy K. Parker and William D. Sessoms,
Jr.
Council Members Voting Nay:
None
Council Members Abstaining:
Reba S. McClanan
Council Members Absent:
Albert W. Balko, John D. Moss and John L. Perry
Councilwoman McClanan ABSTAINED as her son is a Summer Intern with the firm of
Shearson Lehman
LESLIE L. LILLEY MUNICIPAL CENTER
Cl@ ATTORNEY VIRGINIA BEACI, 'A 23'M-@@
(80@) @27-@531
June 4, 1990
Mrs. Ruth Hodges Smith, CMC/AAE
City Clerk's Office
Municipal Center
Virginia Beach, VA 23456
Re: Disclosure Pursuant to SS2.1-639.14(E), Code of Virginia
Dear Mrs. Smith:
Pursuant to the Virginia Conflict of Interest Act, SS2.1-
639.14(G), Code of Virginia, I make the following declaration:
1. The transactions for which I am executing this written
disclosure are all transactions concerning Shearson-
Lehman Trust.
2. The nature of iny personal interest is that my son is an
employee of Shearson-Lehman Trust, earning in excess of
$10,000.00 annually.
3. On occasion, matters in which Shearson-Lehman Trust is
either the subject, or may realize either directly or
indirectly a benefit or detriment, will be voted on by
the Virginia Beach City Council.
4. The City Attorney has advised me that I am required to
disclose this interest as it meets the criteria of a
personal interest in the transaction under the Conflict
of Interest Act. I wish to disclose this interest and
declare that I am disqualified from participation in
transactions where Shearson-Lehman Trust is the subject
or where it is reasonably foreseeable that Shearson-
Lehman Trust may realize either directly or indirectly
a benefit or detriment.
1
Accordingly, I respectfully request that you record this
declaration in the official records of the City Council. I have
enclosed an opinion letter from Leslie L. Lilley, City Attorney,
which addresses this same matter.
Thank you for your assistance and cooperation in this
matter.
Sincerely,
@ @,o@
Reba McClanan
Councilwoman
RSM/abe
enclosure
2
LESLIE L. LILLEY MUNICIPAL CENTER
CITY ATTORNEY VIRGINIA BEACH, VA 23456.@
(&A) 4274531
June 4, 1990
Councilwoman Reba McClanan
3224 Burnt Mill Road
Virginia Beach, Virginia 23452
Re: Request for Conflict of Interest Act Opinion:
Transactions involving Shearson-Lehman Trust
Dear Mrs. McClanan:
I am writing in response to your request for an opinion as
to whether you may participate in transactions involving
Shearson-Lehman Trust.
Summary Conclusion:
From my review of the Conflict of Interest Act and the
information provided by you as referenced below, I am of the
opinion that you have a personal interest in transactions of the
Virginia Beach City Council when Shearson-Lehman Trust is the
subject of such transactions or when it is reasonably foreseeable
that Shearson-Lehman Trust may directly or indirectly @ealize a
benefit or a detriment as a result of the transaction, and thus
you are disqualified from participating in such matters. I have
set out the disclogure requirements of SS2.1-639.14(E) pertaining
to such transactions, at the end of this letter.
I base the aforesaid conclusions on the following facts and
discussions.
Facts Presented:
Your request for an advisory opinion is generated by your
son's summer employment with Shearson-Lehman Trust. You advise
that your son will earn more than $10,000.00 during the course of
the year through his employment with Shearson-Lehman Trust. For
the purposes of this opinion, I have assumed your son resides in
your household and is a dependent.
Issue:
Are you precluded from participating in transactions
involving Shearson-Lehman Trust because of your son's employment
by Shearson-Lehman Trust?
Discussion:
I. Applicable Definitions:
A. city council is a governmental agency, as it is a
legislative branch of local government as defined in SS2.1-639.2
of the Virginia State and Local Government Conflict of Interest
Act.
B. You are an officer within the meaning of SS2.1-639.2 of
the above-referenced Act.
C. The Act defines a transaction as "any matters
considered by any ... governmental agency on which official action
is taken or contemplated." SS2.1-239.2.
D. "Personal interest" is defined in SS2.1-639.2 as being a
financial benefit or liability which accrues to an officer or to
an immediate family member. The interest exists by reason of one
of five categories specified therein, one of which is a salary
paid or provided by a business that exceeds $10,000.00 annually.
E. A "personal interest in the transaction" means a
personal interest, as defined above, in any matter considered by
an officer's agency. It is further defined in SS2.1-639.2 as
existing "when an officer... or a member of his immediate family
has a personal interest in property or a business...and such
property [or] business... (i) is the subject of the transaction or
(ii) may realize a reasonably foreseeable direct or indirect
benefit or detriment as a result of the action of the agency
considering the transaction."
F. "Immediate family means (i) a spouse and (ii) any other
person residing in the same household as the officer ... who is a
dependent of the officer ... or of whom the officer... is a
dependent."
G. "Dependent means a son... if such person receives from
the officer... or provides to the officer ... more than one-half of
his financial support."
ii. Application of Definitions:
2
A. Personal Interest
in the facts presented, your son has a personal interest in
transactions of Shearson-Lehman Trust before the City Council
because he receives in excess of $10,000.00 annual salary from
the business. Additionally he is a member of your immediate
f ainily.
B. Personal Interest in the transaction test
since your son has a personal interest, as defined above,
you have a "personal interest in the transaction" when Shearson-
Lehman Trust is the subject of transactions before the City
Council. Therefore it is my opinion that you have a personal
interest in such transactions within the meaning of the Conflict
of Interest Act. Additionally, you may have a "personal interest
in the transaction" in instances when Shearson-Lehman Trust is
not the subject of the transaction, if it is reasonably
foreseeable that Shearson-Lehman Trust may realize either
directly or indirectly a benefit or detriment as a result of the
proposed transaction.
iii. Disclosure Recruirements of Section 2.1-639.14 E
Based on the fact that you have a "personal interest in the
transaction", SS2.1-639.11(l) applies and you must disqualify
yourself from participating in transactions where Shearson-
Lehman Trust is the subject or when it is reasonably foreseeable
that Shearson-Lehman Trust may realize a direct or indirect
benefit or detriment as a result of the transaction. You must
disclose your personal interest in accordance with SS2.1-
639.14(E). Enclosed please find a declaration form. You must
make disclosure of the existence of your interest to the Clerk of
City Council, and such disclosure shall be reflected in the
public records of the council for five years. Such disclosure
may be made verbally in public session or by filing the enclosed
form.
SS2.1-639.14(E) and the enclosed form also apply should you
desire to abstain from voting in cases when it is not reasonably
foreseeable that Shearson-Lehman may be affected by a
transaction, but you wish to avoid any appearance of a conflict
of interest. However, in such cases you are not required to
abstain. You may disclose your interest and vote in accordance
with SS2.1-639.14(G). In the event you wish to disclose and vote
you may make your declaration either orally or you may file a
signed written declaration with the Clerk of the City Council.
in either case the disclosure shall be retained and made
available for public inspection for a period of five years from
the date of recording or receipt. I have enclosed a second
disclosure form in accordance with SS2.1-639.14(G) to be used at
the time such a transaction occurs.
3
As a final note to any conflict of interest opinion, SS2.1-
639.18(C) provides that a written opinion of the CitV Attorney
made after a full disclosure of the facts, is advisory and
admissible as evidence that the local officer did not knowingly
violate the Act, while a favorable opinion of the Commonwealth's
Attorney as the enforcing officer of the COIA, provides immunity
from any alleged violation. If you choose to seek an opinion of
the Commonwealth's Attorney, I will be pleased to assist you in
that regard.
Please contact me should you desire any additional
information.
Very truly yours,
Enclosure
LLL/abe
4
RESOLUTION AWARDING $40,000,000 GENERAL OBLIGATION
PUBLIC IMPROVEMENT BONDS, SERIES OF 1990A
WHEREAS, the Council of the City of Virginia Beach, Virginia
(the "City"), by resolution adopted on May 7, 1990 (the "Bond
Resolution"), authorized the sale of $40,000,000 General
Obligation Public Improvement Bonds, Series of 1990A (the "Series
of 1990A Bonds"); and
WHEREAS, pursuant to sale procedures set forth in the City's
Notice of Sale, sealed bids for the Series of 1990A Bonds were
received in the office of the City Manager at 11:00 a.m., local
time, on this date. Each of the bids offered to pay par, a
premium as indicated and accrued interest on the Series of 1990A
Bonds from the date of the Series of 1990A Bonds to the date of
delivery:
1 . Bid of Northern Trust Company
off ering to pay a remium of $ 289.00 for the Series of 1990A
Bonds bearing interest at the rates set forth in Column 1 on
Exhibit A attached hereto.
2. Bid of Dean Witter Reynolds
offering to pay a premium of $ 6,213.55 for the Series of
1990A Bonds bearing interest at the rates set forth in Column 2
on Exhibit A attached hereto.
3. Bid of Mrgn Stanley
offering to pay a pr..ium of $3.40 for the Series of 1990A
Bonds bearing interest at the rates set forth in Column 3 on
Exhibit A attached hereto.
4. Bid of Shearson Lehman Brothers
off ering to pay a premium of $2,020.90 for the Series of
1990A Bonds bearing interest at the rates set forth in Column 4
on Exhibit A attached hereto.
5. Bid of Manufacturers Hanover
offering to pay a premium of $ 1,395.85 for the Series of 1990A
Bonds bearing interest at the rates set forth in Column 5 on
Exhibit A attached hereto.
6. Bid of Chase Securities
offering to pay a premium of $ 12,191.35 for the Series of
1990A Bonds bearing interest at the rates set forth in Column 6
on Exhibit A attached hereto.
7. Bid of
offering to pay a premium of $ for the Series of 1990A
Bonds bearing interest at the rates set forth in Column 7 on
Exhibit A attached hereto.
8 Bid of
offering to pay a premium of $ for the Series of
1990A Bonds bearing interest at the rates set forth in Column 8
on Exhibit A attached hereto.
9. Bid of
offering to pay a premium of $ for the Ser es of 1990A
Bonds bearing interest at the rates set forth in Column 9 on
Exhibit A attached hereto.
10. Bid of
offering to pay a remium of $ for the Series of
1990A Bonds bearing interest at the rates set forth in Column 10
on Exhibit A attached hereto.
WHEREAS, representatives of Government Finance Associates,
Inc. and Government Finance Research Center, the City's financial
advisors reported that the bid of
Northern Trust Company and Associates a copy of which
@id is attached hereto and made apart hereof, offered to
purchase the Series of 1990A Bonds at the lowest cost to the
City, determined in accordance with the Notice of Sale, and
recoinmended acceptance of the bid.
NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA THAT:
The Series of 1990A Bonds, the form and details of which
have heretofore been prescribed by the Bond Resolution are hereby
awarded to Northern Trust Company and Associ t@e in accordance with the
terms of their bid and shall bear interest as set out in such
bid.
Adopted this 23rd day of May, 1990, by the Council of the
City of Virginia Beach, Virginia.
APPROVED:
MAYO
EXHIBIT A
SUMMARY OF BIDS FOR
$40,000,000 CITY OF VIRGINIA BEACH GENERAL OBLIGATION
PUBLIC IMPROVEMENT BONDS, SERIES OF 1990A
maturity Amount 1 2 3 4 5
1991 $i,ooo,ooo 6.60 6.875 6.90 6. 90 6. 90
1992 2,055,000 6. 75 6.875 6.90 6.90 6. 90
1993 2,055,000 6.80 6.875 6.90 6.90 6.90
1994 2,055,000 6.80 6.875 6.90 6. 90 6. 90
1995 2,055,000 6.80 6.875 6.90 6. 90 6. 90
1996 2,055,000 6.80 6.875 6. 90 6. 90 6.90
1997 2,055,000 6.80 6.875 6.90 6. 90 6.90
1998 2,055,000 6.80 6.875 6.90 6.90 6.90
1999 2,055,000 6.80 6.875 6.90 6. 90 7.00
2000 2,055,000 6.85 6.875 6.90 6.90 7. 00
2001 2,055,000 6.85 6.875 6.90 6. 90 7. 00
2002 2,050,000 6.85 6.875 7. 00 6. 90 7.00
2003 2,050,000 6.85 6.875 7. 00 6.90 7. 00
2004 2,050,000 6.90 6. 90 7.00 7. 00 7.00
2005 2,050,000 6. 95 6.90 7. 00 7.00 7. 00
2006 2,050,000 6. 95 7.00 7. 00 7. 00 7.00
2007 2,050,000 7. 00 7. 00 7. 00 7.00 7. 00
2008 2,050,000 7. 00 7. 00 7. 00 7.10 7. 00
2009 2,050,000 7. 00 7. 00 7. 00 7.10 7. 00
2010 2,050,000 7. 00 7.00 7. 00 7.10 7.00
Maturity Amount 6 7 8 9 10
1991 $i,ooo,ooo 6.10
1992 2,055,000 6.10
1993 2,055,000 6.10
1994 2,055,000 6.20
1995 2,055,000 6.30
1996 2,055,000 6.40
1997 2,055,000 6.50
1998 2,055,000 6.60
1999 2,055,000 6. 70
2000 2,055,000 6.75
2001 2,055,000 6.75
2002 2,050,000 6.80
2003 2,050,000 6.875
2004 2,050,000 6. 90
2005 2,050,000 7. 00
2006 2,050,000 7. 00
2007 2,050,000 7. 00
2008 2,050,000 7. 00
2009 2,050,000 7. 00
2010 2,050,000 9.75
6
Item I.C.
ITE14S OF THE
CITY MANAGER ITEM 32874
ADD-ON
The City Manager advised the large steel constructed buildings located in the
resort area prohibit clear radio communications The primary issue is the
protection of public safety personnel and other City personnel who may be
located within a building or near buildings in the resort area which
substantially affect or prohibit clear radio communications at any time during
the year. A police officer, firefighter, rescue worker, or Public Works
employee could find himself in a critical situation without the ability to
contact anyone by radio for assistance. An additional transceiver site located
on top of the 29th Street water tank will provide the additional capability of
hand-held communications required along the Atlantic Avenue corridor.
The cost of the system is estimated at $1.2-MILLION and is recommended that it
be funded from the proceeds of a lease/purchase agreement.
The City Manager requested this item be SCHEDULED for the City Council Session
of Tuesday, May 29, 1990.
7
Item I.H.
ADJOURNMENT ITEM 32875
Upon motion by Vice May,, Fentress and BY CONSENSUS, City Council ADJOURNFJ) th,
Meeting at 12:14 P.M.
Chief Deputy City Clerk
.th H. d8 - S..th, CMC Mey. Ob,-r.@.rf
.ty Cle@k M
Y,
'r
CitY of Virginia Beach
Virginia