HomeMy WebLinkAboutNOVEMBER 16, 1982 MINUTES
M I N U T E S
S P E C I A L M E E T I N C
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
The Special mee-linq of the Council of the City of Virginia
Beach, Virginia, was called to order by Mayor Louis R. Jones,
in the City Council Chambers, City Hall Building, on Tuesday,
November 16, 1982, at 12:00 Noon.
Council members Present:
John A. Baum, Vice Mayor Barbara M. Henley, H.
Jack Jennings, Jr., Mayor Louis R. Jones, Robert
G. Jones, W. H. Kitchill, III, Reba S. McClanan,
and Meyera E. Oberndorf
Council Members Absent:
Nancy A. Creech, Harold Heischober, and J. Henry
McCoy, Jr., D.D.S.
PLEDGE Or ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
- 2 -
ITEM #19097
The City Clerk read the following letter froim the City Manager:
"The Honorable Mayor
Members of the Council
"Dear Council members:
"The City of Virginia Beach has received
separate bids on the Public Improvement
and Road Bonds of $20,395,000 and Water
and Sewer Bonds of $7,500,000. There
were two bids on the Public Improvement
and Road Bonds as follows:
EFFECTIVE RATE
Syndicate headed by Harris
Trust & Savings Bank 9.5333%
Syndicate headed by Morgan
Guaranty Trust Company 9.5566%
"There was only one bid on the Water and
Sewer issue for $7,500,000. This was as
f ollows :
Morgan Guaranty Trust Company 9.9104%
"The bids on the Public Improvement and Road
Bonds are indicative of the market and
represent extremely close bidding with a
difference of only approximately 2 basis
points. The last Bond Buyer 20 Bond Index,
which is released each Thursday, was 9.92%
on November 11, 1982. Considering the market
conditions, the staff and our financial advisor,
Wainwright and Ramsey, think the low bid of
Harris Trust Company is good and it is, therefore,
recommended for acceptance and prompt award.
"On the other hand, the bid for the Water and
Sewer Bonds is not felt to be indicative of
current market levels and the financial advisor
has recommended that it be rejected and pursued
for a negotiated sale at a later date prior to
January 1, 1983.
"It is, therefore, recommended that Council
reject the bid of Morgan Guaranty Trust
Company on the Water and Sewer Bonds of
$7,500,000 and authorize me to proceed with
negotiations at a later date."
Robert Tullen, Chairman of Wainwright and Ramsey, spoke on this
matter.
- 3 -
ITEM #19098
Upon motion by Councilman Jennings, seconded by Councilman Baum,
City Council voted to ADOPT the City Manager's recommendation
and ACCEPT the bid of HARRIS TRUST AND SAVINGS BANK for the
$19,095,000 General Obligation Public Improvement Bonds, Series
of 1982, and the $1,300,000 General Obligation Bonds, Series of
1982, (collectively The Bonds total: $20,935,000). Further,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA: That these Bonds are hereby awarded to HARRIS TRUST
AND SAVINGS BANK in accordance with the terms of their bid and
bear interest as set out in their bid at the rate of 9.5333%.
Voting: 8-0
Council members Voting Aye:
John A. Baum, Vice Mayor Barbara M. Henley, H.
Jack Jennings, Jr., Mayor Louis R. Jones, Robert
G. Jones, W. H. Kitchin, III, Reba S. McClanan,
and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
Nancy A. Creech, Harold Heischober, and J. Henry
McCoy, Jr., D.D.S.
4 -
At a Special meeting of the Council of the City of
Virginia Beach, Virginia (the City), held on the 16th day of
November, 1982, at which the following members were present and
absent:
PRESENT:
Councilman John A. Baum
Vice Mayor Barbara M. Henley
Councilman H. Ja6k Jennings, Jr.
Mayor Louis R. Jones
Councilman Robert G. Jones
Councilman W. H. Kitchin, Ill
Councilwoman Reba S. McClanan
Councilwoman Meyera E. Oberndorf
ABSENT:
Councilwoman Nancy A. Creech
Councilman Harold Heischober
Councilman J. Henry McCoy, Jr., D.D.S.
It was reported that the following bids for $19,095,000
General obligation Public Improvement Bonds, Series of 1982, and
$1,300,000 General Obligation Road Bonds, Series of 1982 (collec-
tively, the Bonds), of the City authorized by resolutions
adopted on November 2, 1982, were received in Virginia Beach at
11:00 a.m. on this date pursuant to the Notice of Sale approved
by such resolutions:
Name of Bidder Amount
Harris Trust and savings Bank 9.5333%
5 -
2-
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 Wainright & Ramsey Inc., the.City's
Financial Advisor, reported that the bid of Harris Trust
and Savings Bank offered to purchase the Bonds at the
lowest cost to the City, a copy of whi.ch bid is attached hereto
and made a part of these minutes, and recommended acceptance of
such 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:
Member Vote
Councilman John A. Baum Aye
Vice Mayor Barbara M. Henley Aye
Councilman H. Jack Jennings, Jr. Aye
Mayor Loui's R. Jones Aye
Councilman Robert G. Jones Aye
Councilman W. H. Kitchin, III Aye
Councilwoman Reba S. McClanan Aye
Councilwoman Meyera E. Oberndorf Aye
BE IT RESOLVED BY -,HE COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA, that the Bonds are hereby awarded to Harris
Trust and Savings Bank 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,
Virginia, hereby certifies that the foregoing constitutes a true
116
-3-
correct extract from the minutes of a Special of the
Council of the City of Virginia Beach, Virginia, held on
November 16, 1982, and of the whole thereof so far as is appli-
cable to the matters referred to in such extract.
WITNESS my signature and the seal of the City of Virginia
Beach, Virginia, this 16th day of November, 1982.
Clerk, City of Virginia Beach,
Virginia
(SEAL)
- 7 -
ITEM #19099
Upon motion by Councilman Baum, seconded by Councilwoman Oberndorf,
City Council voted to REJECT the one bid of MORGAN GUARANTY TRUST
COMPANY for the $7,500,000 General Obligation Water and Sewer Bonds,
Series of 1982, and authorized the City Manager to proceed with
NEGOTIATION for sale prior to January 1, 1983.
Voting: 8-0
Council Members Voting Aye: (to reject the one bid)
John A. Baum, Vice Mayor Barbara M. Henley, H.
Jack Jennings, Jr., Mayor Louis R. Jones, Robert
G. Jones, W. H. Kitchin, III, Reba S. McClanan,
and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
Nancy A. Creech, Harold Heischober, and
J. Henry McCoy, Jr., D.D.S.
8 -
At a meeting of the Council of the City of
Virginia Beach, Virginia (the City), held on the 16th day of
November, 1982, at which the following members were present and
absent:
PRESENT:
ABSENT:
It was reported that the following bids for $7,500,000
General Obligation Water and Sewer Bonds, Series of 1982 (the
Bonds), of the City authorized by a resolution adopted on.
November 2, 1982, were received in Virginia Beach at 11:00 a.m.
on this date pursuant to the Notice of Sale approved by such
resolution:
Name of Bidder Amount
9-
-2-
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 Wainright & Ramsey lhc., the,City's
Financial Advisor, reported that the bid oi
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
such bid.
On raotion 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:
Member Vote
BE IT RESOLVED BY -@HE COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA, that the Bonds are hereby awarded to
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,
Virginia, hereby certifies that the foregoing constitutes a true
-10-
-3-
correct extract from the minutes of a meetirkg of the
Council of the City of Virginia Beach, Virginia, held on
November 16, 1982, and of the whole thereof so far as is appli-
cable to the matters referred to in such extract.
WITNESS my signature and the seal of the City of Virginia
Beach, Virginia, this day of November, 1982.
Clerk, City of Virginia Beach,
Virginia
(SEAL)
- I I -
ITE@l #19100
Upon motion by Vice Mayor lienley, Council adjourned at 12:30 p.m.
Diane M. Ilickman, Deputy City Clerk
I tl, llde. lm Clerk @ay@r Louis In..
CiLy of Virginia Beacli,
Virginia
Special Meeting
November 16, 1982
dmh/etd