The URL can be used to link to this page

Home My WebLink AboutMAY 23, 1990 MINUTES "WORLD'S LARGEST RESORT CITY" CITY (-'OUNCIL VICE --R RO@@RT I.. I-IRT . @AIS@, A, -801- 10- mo., -NI@ . 'ARKIR, 1. l@,, I-IIN 1.@ 'IRRY, JR. A, l@, AU@R@l I W"$. JR, CITY COUNCIL AGENDA -UNIIIIAL IF." ',R LE,IL. L, 11.@l, C,,,@ ...... RIJ71f 1-1.1 -Iii. CMI"Ar,, C,,, Clk S P E C I A L S E S S I 0 N 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