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Home My WebLink AboutAPRIL 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