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Home My WebLink AboutAPRIL 13, 1988 MINUTES M I N U T E S VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 13, 1988 'The SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL was called to order by i4ayor Robert G. Jones in the Council Chamber, City Hall Building, on Wednesday, April 13, 1988, at 12:00 NOON. COuncil Members Present: Albert W. Balko, Robert E. Fentress, Harold Heiscliober, i4ayor Robert G. Jones, Reba S. McClanan, Nancy K. Parker and Vice Mayor @eyera E. Oberndorf Council Members Absent: John A. Baum BELrbara M. fienley (ENTERED: 12:10 P.M.) John D. Moso John L. Perry - 2 - Item I.B. ITEM # 29191 Mayor Robert G. Jones -ead the letter statirg the ourpo,9e of the SPECIAL SESSION: In accordance with City Code Section 2-21 and by the authority vested in me, I hereby call a SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chambers, City Hall Building, on Wednesday, April 13, 1988, at 12:00 NOOI@ for the purpose of AWARDING @f a Low Bid on $40,950,000 General Obligation Fublic Improvement Bonds, Series of 1988 A. s/Robert G. Jones Mayor - 3 - Item I.C- ITEM # 29192 RECESS INTO EXECUTIVE SESSION In accordance with Section 2.1-344, Code of Virginia, as amended, and upon motion by Councilman Fentress, seconded by Councilman Heischober, City Council RECESSED intD EXECUTIVE SESSION for discussi,)n ol- PUBLIC FUNDS INVESTMENT (12:10.) 1. PU T: The @-nvesting of pblic funds where competition or bargaining is involved, where if made public initially the financial interest of the governmental unit w,)uld be adversely affected. Voting: 7-0* Council Members Votin., Aye: Albert W. Balko, Robert E. Fentress, Harold Heischober, Mayor Robert G. Jones, aeba S. McClanan, Vice Mayor Meyera E. Oberndorf and Nancy K. Parker Council Members Voting -i4ay: iNone Council Members Absent: John A. Baum, Barbara M. H(,'nley, Tohn D. @loss and John L. Perry *Verbal Vote Barbara M. Henley (ENTERED: 12:12 P.M.) z@ Item T-C. 1 . RECONVENE TTEM 29193 Mayor Robert G. Jones RECONVENED the SPECIAL SESSION of the VIRGINIA BFACH CITY COUNCIL in the Council Chambers, City Hall Building, on Wednesday, ADril 13, 1988, at 12:45 P.M- Council Members Present: Albert W. Balko, Robert E. Fentress, Harold Heischober, Barbara M. Henley, Mayor Rober@ G. Jones, Reba S. McClanan,41 Nancy K. Parke- and Vice Mayor Meyera E. Oberndorf Council Members Absent: John A. Baum, Iohn D. Moss and John L. Perry "Council Lady McClanaii was excused at 12:4-@ P.%I- Item I-D. REPORT OF FINANCIAL ITEM 29194 ADVISOR The City Manger introduced Giles Dodd, Agsistant C4-ty Manager for Administration and Finance Director, who had received the BIDS on the $40,950,00 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS at 11:00 A.M. April 13, 1988. Giles Dodd advised Seven (7) Bids were received. The lowest bid was ACCEPTED from 14ANUFACTURERS fiANOVER at 6.8647% True Interest Cost. It was learned only one individual will purchase the entire $40,950,000 issue. The Bids range for a True Interest Cost of 6.8647% to 7.0219-. which represented .16%. Giles Dodd introduced Percy R. Aguila, Jr., Government Finance Research Center, and Stephanie R. Lewis, Vice President, Government Finance Associates and the City's Financial Advisor. Stephanie R. Lewis advised City Council there are two considerations in the sale of the $40,950,()00 issue and both were positive for Virginia Beach: (1) MARKET PLACE: Seven (7) Bida with an Eighth non-qualified due to the lateneso of the hour presented; spread from best to least being 16/100 point in range; all bidders were liail Street; only one purchaser (2) CITY CREDIT: This is a continuing sale and almost the same as last time; AA rati-ng by botn Moodys and Standards Poor,'3; City in good financial health and fiscai health Item IV-E.l. CITY MANAGER'S RECOMMENDATION TTEM 29195 The City Manager distributed his letter of RECOMMENDATION. Said copy is hereby made a Dart of the proceedings. Syndicate Headed ay True Interest Cost Manufacturers Hanover 6.8647% Chase Manhattan 6.8936 Goldman Sachs & Co. 6.9714 J. P. Morgan Securities 6.9802 First National Bank of Chicago 7.0175 Bear, Stearn & Co., Inc. 7.0197 Smith Barney, Harris Upham & Co. 7.0219 Item IV-F.l. AWARDING OF LOW BID ITEM 29196 Upon motion by Councilrqan Fentress, seconded by Councilman Heischober, City Council ADOPTED a Resolution ACCEPTING the LOWFST BID and AWARDING same to MANUFACTURERS HANOVER at 6.8647% on the $40,950,000 issue of GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, Series 1988A. Voting: 7-011 Council Members Voting Aye: Albert W. Balko, Robert E. Fentress, Harold Heischober, Barbara M. Henley, Mayor Robert G. Jones, Nancy K. Parker and Vice Mayor 14eyera E. Oberndorf Council Members Abseiit: John A. Bau-,i, Reba S. McClanan, John D. lloss and John L. Perr,, "Verbal Vote Item I-F.2. MINIBONDS TTEM 29197 Giles G. Dodd, City iqanager for Administration, presented the $2-MILLION GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, Series 1988B Capital Appreciation MINIBONDS) and recomnended an inter,st r,t, ,f 5.50% be set for the sale on April 21, 1988. These MINIBONDS would have a three year maturity and be limited to no more than ten (10) Five Hundred Dollar ($500) Bonds for in(lividual purchase. Item I-F-3- MINIBONDS IT]-24 29198 Upon motion by Councilwoman Parker, seconded by Counciiman Heischober, City Council ADOPTED the Resclution and established the rate of interest fcr the $2-MTLLION issue of GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, Series 1988 (Capital Appreciation MINIBONDS) at Five and One-Half Percent (5.5%). Voting: 7-01@ Council @lembers Voting Aye: Albert W. Balko, Robert E. Fentress, Harold Heischober, Barbara l',. Henley, Mayor Robert G. Jones, Nancy K. Parker and Vice Mayor 14eyera E. Oberndorf Council Members Absent: John A. Baum, Reba S. @Icelanan, John D. Moss and John L. Perry *Verbal Vote