HomeMy WebLinkAboutDECEMBER 12, 1979 SPECIAL BUDGE
CITY OF VIRGINIA BEACI
MUNICIPAL CENTER
eity" VIRGINIA BEACH, VIRGINIA 23456
MAYOR PATRICK L. STANDING, Al L.,g, CI.ARENCE A. IIOLLAND, M.D., B.y,id@ B.,@,gh
VICE MAYOR 1. IIENRY M,COY JR., D.D.S., K..p.,ill, B.,.,gb DONALD W. MERRICK, Ly.@b.... B.,.@gh
JOIfN A. BAIIM, Bl.,k..,@, B.,..gh MEYFRA E. OBERNDORF, A, L.,g@
F. REID ERVIN, Al L.,g@ J. (,,IRTIS PAYNE, P,i@,@@s A-@ B@,@.gh
GEORGE R. FERRELI,, At L.,g, ROGER L. RFGGS, Vigi@i. B@.,h B.-,gh
BARBARA M. HENLEY, P.,,g@ B.,..gh RtiTH HODGES SMITH, City Cl@,k
CITY COUNCIL AGENDA
SPECIAL MEETING
12:00 Noon
12 December 1979
Virginia Beach City Council Chambers
ITEM I A. CALL TO ORDER - MAYOR PATRICK L. STANDING
B. ROLL CALL OF COUNCIL
C. PURPOSE OF MEETING
1. Acceptance of the low bid for sale of $16.8 Million
General obligation Bonds
D. RECOMMENDATION OF THE CITY MANAGER
1. City Clerk to read City Manager's letter.
E. DISCUSSION
F. ROLL CALL OF COUNCIL TO RECORD VOTE
G. ADJOURNMENT
Minutes of the Special Meeting
OF THE
HONORABLE CITY COUNCIL
OF THE
CITY OF VIRGINIA BEA'@H, VIRGINIA
December 12, 1979
The Special Meeting of the Council of the City of Virginia Beach,
Virginia, was called to order by Mayor Patrick L. Standing, in the
Council Chambers, in the Admini.stration Building, on Wednesday,
December 12, 1979, at 12:00 NOON, for the purpose of accepting
the low bid for sale of $16.8 Million General Obligation Bonds.
Council Members Present:
,Tohn A. Baum, George R. Ferrell, Barbara M. Henley,
Vice Mayor J. Henry McCoy, Jr., J. Curtis Payne, and
Mayor Patrick L. Standing
Council Members Absent:
F. Reid Ervin, Clarence A. Holland, Donald W. Merrick,
Meyera E. Oberndorf, and Roger L. Riggs
(ITEM I - D.1) ITEM #14569
The City Clerk read tlie following letter from the City Manager:
At 11:00 a.m. today, sealed bids were opened in my office
for the receipt of City council's proposed sale of $16.8 Million in
General Obligation Public Improvement Bonds. The average net interest
costs were as follows:
Northern Trust Company and
United Virginia Bank 6.374941
Bankers Trust Company and
Associates 6.406183
Morgan Guaranty Trust Company,
Bank of Virginia, and Merrill
Lynch, Pierce, Fenner and
Smith, Inc. 6.4123
liarris Trust and Savings, First
and Merchants, and Virginia
National Bank 6.4518
As Council is aware, we have enjoyed a Aa bond rating from
Moody's and a AA rating from Standard and Poor's. @lith this sale, I
am pleased to announce that we have retained these ratings and our
solid AA rating. From indications I have had from investors, ive have
one of the best AA ratings in the nation. With high prime rates as
they are in Lhe private sector, bond ratings are more important than
ever in trying to receive low interest rates. Our rating continues
to noint out the conscientiotiq fiscal polliy of the City Council arid
the overall diversifie,i econc)my of Virginia Beach.
Today's rate of 6.374941 compared to tlie daily bond btiyers'
20-y ear bond index of 7 . 17% , amounts to a market saving s of 7 9 . 5
basis points. In essence, we are able to beat the market by
$1,530,091.05. 1 believe this is an indication that investors
cc)ntinue to have conf idence not only in our economy, but in tlie
Council and the management of the City of @firginia Beach.
The group that included Northern Trust Company and United
Virginia Bank was the apparent low bidder, and calculations have been
certified and confirmed. It is, therefore, recommended that City
Council award the sale of bonds to the firms of @lorthern Trust Company
and llnited Virginia Bank.
ITEM #14570
Mr. Fleischman, Wainwright and Ramsey, appeared before Council regarding
this matter.
On motion by Councilman Payne, seconded by Councilman Baum, City
Council voted to APPROVE tlie low bid of Northern Ttust Company
and United Virginia Bank for $16.8 Million General Obligation
Public Tmprovement Bonds, at an interest rate of 6.374941.
Voting: 6-0
Council Members Voting Aye:
John A. Baum, George R. Ferrell, Barbara M. Henley,
Vice Mayor J. Henry McCoy, Jr., J. Curtis Payne, and
Mayor Patrick L. Standing
Council Members Voting Nay:
None
Council Members Absent:
F. Reid Ervin, Clarence A. Holland, Donald W. Merrick,
Meyera E. Oberndorf, and Roger L. Riggs
ITEM #14571
On motion by Councilman Payne, seconded by Councilmari @errell, and
by ACCLAMATION, Council adjourned at 12:10 p
RLf th, City Clerk L. Standjing
City of Virginia Beach,
Virginia
Special Meeting
December 12, 1979
h
At a special meeting of the Council of the City of Vir-
ginia Beach, Virginia, held on the 12th day of December, 1979,
at which the following members were present and absent:
PRESENT: John A. Baum
George R. Ferrell
Barbara Henley
J. Henry McCoy, Jr.
J. Curtis Payne
Patrick L. Standing
ABSENT: F. Reid Ervin
Clarence A. Holland
Donald W. Merrick
Meyera Oberndorf
Roger L. Riggs
the following bids were received on December 12, 1979, for the
purchase of $16,800,000 Public Improvement Bonds, Series of 1979:
Name of Bidder Amount of Bid
The Northern Trust Company $16,800,000 bonds maturing in 1981
and Associates to 1999, incl., at 6 3/8-/.
premium - $112.50
Morgan Guaranty Trust Company $5,600,000 bonds maturing in 1981
of New York and Associates to 1987, incl., at 6.30%; $8,350,000
bonds maturing in 1988 to 199 , incl.,
at 6.40%; $2,850,000 bonds maturing
in 1997 to 1999, incl., at 6 1/2%
premium - $1,298.00
Harris Trust and Savings Bank $13,000,000 bonds maturing in 1981
and Associates to 1995, incl., at 6.40%; $1,900,000
bonds maturing in 1996 to 1997, incl.,
at 6 1/2%; $1,900,000 bonds maturing
in 1998 to 1999, incl., at 6.60%
premium - $7,641.21
Bankers Trust Company and $3,050,000 bonds maturing in 1981
Associates to 1984, incl., at 6 1/4%; $5,200,000
bonds maturing in 1985 to 1990, incl.,
at 6.30%; $5,700,000 bonds maturing
in 1991 to 1996, incl., at 6.40%;
$1,900,000 bonds maturing in 1997
to 1998, incl., at 6 1/2%; $950,000
bonds maturing in 1999, at 6.60%
premium - $1.20
Each of the above bids offered to pay par, a premium as indicated
and accrued interest from the date of the bonds to the date of
delivery.
2 .
A representative of Wainwright & Ramsey Inc., the City's
financial consultant, reported that the bid of The Northern Trust
Company and Associates 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 all members of the Council by a
roll call vote, the ayes and nays being recorded in the minutes
of the meeting as follows:
MEMBER VOTE
John A. Baum Aye
George R. Ferrell Aye
Barbara Henley Aye
J. Henry McCoy, Jr. Aye
J. Curtis Payne Aye
Patrick L. Standing Aye
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, that $16,800,000 Public Improvement Bonds, Series of 1979,
the form and details of which have heretofore been prescribed by
resolution adopted on May 7, 1979, be and the same are hereby
awarded to The Northern Trust Company and Associates in accordance
with the terms of their bid and shall bear interest as set out
in such bid.
The undersigned Clerk of the City of Virginia Beach, Vir-
ginia, hereby certifies that the foregoing constitutes a true
and correct extract from the minutes of a special meeting of the
Council of the City of Virginia Beach held on the 12th day of
December, 1979, and of the whole thereof so far as applicable
to the matters referred to in such extract.
WITNESS my hand and the seal of the City of Virginia Beach,
Virginia, this @ day of December, 1979.
@- @., @ Z@
Cidrk, City,ot Virginia Beach,
(SEAL) Virginia
BID FORM WHICIT A
D-mber 12, 1979
Oouncil of the City of Virginia Beach
C/0 Office of the City Manager
Administration Building, Municipal Center
Virginia Beach, Virginia 23456
Dear Sirs:
For all of tbe $16,800,000 Publi, Improvement Bonds, Series of 1979, of the
Beach, Virginia, described i CitY of Virginia
"Illc official Notice of Sale which is made a part hereof, dated November 1,
1979, and maturing on Noveinber I in years and amount, and bearing interest at rates as follows;
Yem Amount Rate Yeu Amount Rat.
1981 ...... $50G,000 % 1991 ...... $950,000
%
1982 ...... 850,000 1992 ...... 950,000
1984 ...... 8so,ooo 3
1983 ...... 850,000 L % 199 ...... 95o,ooo
%
...... 1994 ...... 950,000
1985 ...... 850,000 C". R @@ .@. %
@ . @ % 1995 ...... 950,000
1986 ...... 850,000
% 1996 ...... 950,000
1987 ...... 850,000 @.. -, ?)-
1988 ...... 850,000 % 1997 ...... 950,000 -,.3 7 5%
% 1998 ...... 950,000
1989 ...... 850,000 6: @ ,-% ' '. .
1999 ...... 950,000 31
1990 ...... 950,000 %
....... and accrued interest from the, date
we will pay $16,800,000 plus a premiun) of $
of the bonds to the date of delivery.
We enclosed a certified or bank cashier's clieck for $336,000 drawn upon an incorporated bank or
trust company and payable unconditionally to the order of the City of Virginia Beach to secure the Citv
against any loss resulting frorii our failure to comply with tlie terms of this bid. If our bid is accepted.,
the check will be deposited by the City and credited on the purch@ise pri ce, The proceeds of the check
will be retained by the City as liquidated d,,images in case we fail to accept delin,ery of and pay for the
bonds. If our bid is not accepted, the clieck will be returned promptly upon the award of the bonds.
We uiiderstand that no interest will be paid on the check.
THE .... N.ORTHERN..@ ... T.RUS..Tc0 p
............
.AND ... ASS@O.C.IATEE,@
..... .. ..... ................... ................ .... ...
.................I............
The above good faith cheek has been retumed
and receipt thereof is duly ackiiowledged. BY: .....
. ... .......
STEVEN C. BROWN
................ ....................................................................................................... ......... Bond...@vestm,,nt .... Offi@cer
NOTE: The following is stated for inforniaiton only and is not a part of this bid:
Aggregate amount of interest on the bonds fron, thei, dat, t, thei'r
respective maturities ............................................
Less premium ...................................................
Net interest cost .....................
........ ..............
Net interest rate
NO ADDITION OR ALTERATION, EXC@PT AS PROVIDED ABOVE, SHOULD BE MADE
TO THIS BID,
New York, N. Y.
27, 1979
Received from THE SIGNATURE COMPANY
pieces of
1, @ .
3t360 llY cle @,@.c
;ublic Iii,,;rover@ierit dond :-,eriec of 1979
6-375,, iiil- ;eri;illy
$@-000 1/3-i6o
@'Tli'y C-,, ii;@@,31;iIA BEKC!I, -V@.
By
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