HomeMy WebLinkAboutFEBRUARY 11, 1982 MINUTES
MAYOR J. HENRY MC COY, JR., D.D.S. MUNICIPAL CENTER
COUNCILMAN KEMPSVILLE BOROUGH VIRGIMIA BEACH, VIRGINIA 23456
February 10, 1982
Members of City Council
City Manager
City Attorney
In accordance with Section 3.06 of the
City Charter and Sections 2-21 and 2-22 of the
City Code I hereby call a Special Meeting of
the Council of the City of Virginia Beach,
Virginia for February 11, 1982, to authorize
to issue and sell a total $65-Million General
Obligation Bonds:
$17.5-Million Public Improvement Bonds
$18.3-Million Public Improvement Bonds
$13.2-Million Road Bonds
$16-Million Water and Sewer Bonds
Res,pectfully,
D . S .
WAIVER OF NOTICE
SPECIAL MEETING - WRITTEN CONSENT:
$65,000,000 General Obligation Bonds
Report and Legal opinion on Pavilion Towers
The following Councilmembers give their written consent to the
discussion of the above todic@on February 11, 1982.
Councilmembers absent on February 11, 1982:
/HAROLD HEISCHO@ER
PATR
DR HENP,@ Y@.
DR. CLARENCE A. HOLLAND
JOHN A. BAUM
Certified to be a true copy of WAIVER OF NOTICE of the Special Meeting of
February 11, 1982
Diane M. HickmanA, C-h f@@,@ly 1-@ly Clerk
"@VORLD'S L@ki-iGEST RESORT CITY"
CITY COU,\'CIL
.4,AYOR J. HE@RY ',I,COY JR., D.D.S.. K,.p@.ill, 8 .... gh
t'ICE-ItAYOR HAROLD flEISCHOBER, A, L.rV
jOH,@ A. BA@ 'i,
E. T. BC:CH.A@A.@, B... 91
F. REID ERI@IN, A, L.-Ig@
BARBARA '], IIE,@LEY. P.@g. 8.... gb
CLARE,ICE A IIOLL@AND, AI.D., B@,@,,il 8@1--l"
U. H, KiTCFi@, 111,
R-@BA S. 11,CLA%A.@,
,IIEYERA E. OBER@@DORF, A, L.,g@ 212 CITY HALL BLILDING
PATRICX L. STA,@DM6, A, L.,g@ MU.IIICIPAL CENTER
VIRGINIA BEACQ, VIRGINIA 23456
PUTH HODGES S@ltiTH, Cily Cl,,k (804) 427-4303
CITY COUNCIL AGENDA
Special tleeting
10:00 A.11.
Thursday, February 11, 1982
I TE,'l I INFORIIAL SESSION
A. CALL TO ORDER
B. ROLL CALL OF COUNCIL
C. MOTION TO RECESS INTO INFORIIAL/EXECUTIVE SESSION
ITE@l II FORt',PL SESSION
A. Roll Call of Council
B. Appointment of Acting tlayor (tlayor @IcCoy and Vice-tlayor Heischober
both absent due to previously committed schedule).
C. Appointment of Interim City tlanager
D. Resolution Awarding $65-!Iillic)n General Obligation Bonds
E. Discussion
F. Adjournment
M I N U T E S
S P E C I A L M E E T I N G
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
11 February 1982
In accordance with Sections 2-21 and 2-22 of the Code of the City of
Virginia Beach, Virginia, the Special Meeting of the Council of the
City of Virginia Beach was called to order by Councilman F. Reid Ervin,
in the Conference Room, City Hall Building, on Thursday, 11 February
1982, at Ten o'clock in the morning.
Council Members Present:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S.
and Patrick L. Standing
ITEM #17797
In the absence of the Mayor and Vice Mayor and in accordance with
Section 2-19 of the Code of the City of Virginia Beach Councilman
Buchanan made a motiob, seconded by Councilwoman Henley, to APPOINT
Councilman F. Reid Ervin as Acting Mayor to preside over the Special
Meeti ng.
Voting: 6 - 0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
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ITEM #17798
Acting Mayor Ervin entertained a niotion to permit Council to recess
into EXECUTIVE SESSION for the purpose of discussing the following:
1. PERSONNEL MATTERS: Discussion or consideration of employment,
assignment, appointment, promotion, performance, demotion,
salaries, disciplining or resignation of public officers,
appointees or eilployees.
2. PUBLIC-FUNDS INVESTMENT: The investing of public funds where
competition or bargaining is involved, where if made public
initially the financial interest of the governmental unit would
be adversely affected.
3. LEGAL MATTERS: Consultation with legal Counsel or briefings by
Ttaf-f members, consultants or attorneys, pertaining to actual or
potential litigation, or other legal matters within the
jurisdiction of the public body.
Upon motion by Councilman Buchanan, seconded by Councilwoman Henley,
City Council voted to recess into the EXECUTIVE SESSION.
Voting : 6 - 0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
- 3-
ITEM #17799
City Council reconvened in the Council Chambers with the following
Menibers present:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
ITEM #17800
In the absence of the Mayor and Vice Mayor and in accordance with
Section 2-19 of the Code of the City of Virginia Beach, Councilman
Buchanan made a motion, seconded by Councilwoman Oberndorf, to CONFIRM
the appointment of Councilman F. Reid Ervin as Acting Mayor.
Voting: 6- 0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
- 4-
ITEM #17801
Upon motion by Councilman Buchanan, seconded by Councilwoman Oberndorf,
City Council voted to APPOINT Giles G. Dodd, INTERIUM CITY MANAGER.
Voti ng : 6-0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
- 5 -
ITEM #17802
Mr. Dodd advised Council of the proposal received on the Bonds and
requested the City Clerk to read his letter concerning the sale of
this Is sue:
"The Honorable Mayor
Members of the Council
"Dear Council Members:
"In Deceinber, 1981, Council agreed to negotiate the sale of
$65-Million General Obligation Bc)nds with The Chase Manhattan
Bank, N.A. and First Wisconsin National Bank of Milwaukee after
competitive bids on the Bonds were rejected as being too high.
The lowest bid on the $49-Million had been an effective rate
of 11.8205% and no bid was received on the $16-Million Water
and Sewer Bonds because of the interest rate ceiling of 10%.
"Now a negotiated bid with an effective rate at 11.49% has been
offered for the entire Bond Issue of $65-Million. None of the
Water and Sewer Bonds will have an interest rate in excess of
10%. When compared to previous Bond sales by the City, this
rate appears high but, in light of present niarket conditions,
it is a good offer. It is consid6rably better than the bids
taken in December in spit6 of the fact that the Bond Buyer's
Index is 95 basis points higher than it was when our bids were
taken in December. The Index today is 13.13%, whereas it was
12.18% in December.
"From the proceeds of this Bond Issue, the City is obligated to
pay $32,800,000 in Bond Anticipation Notes at niaturity. Notes
totaling $21.5-Million mature on March 30, 1982, and $11.3-Million
on April 30, 1982. With federal budget deficits projected to
exceed a combined $345-Billion through fiscal year 1985, and the
Chairman of the Federal Reserve Board announcing that a tight
monetary policy will be pursued through 1982, the outlook for
Municipal Bonds in future months is not bright.
"Considering these factors and the City commitments awaiting the
sale of this Issue, I recommend it for your approval."
Very truly yours,
Giles G. Dodd
Interim City Manager
Mr. Dodd introduced George Borris, Chase Manhattan Bank, N.A., who
advised he was pleased to niake a bid for the Bonds and he feels very
confident that the rate and bid of 11-49% is very competitive in
today's market and worthly of Council's consideration.
Robert E. Toolan, Wainwright and Ramsey, Inc. the City's Financial
Advisors, spoke on this matter.
- 6-
ITEM #17803
Upon motion by Councilman Buchanan, seconded by Councilwoman Henley,
City Council voted to uphold the recommendation of the Interim City
Manager and ADOPT the Resolution awarding $65-Million General Obligation
Bonds of the City of Virginia Beach, consisting of $17,500,000
Public Improvement Bonds, Series of 1980, $18,300,000 Public Improvement
Bonds, Series of 1981, $13,200,000 Road Bonds, Series of 1981, and
$16,000,000 Water and Sewer Bonds, Series of 1981.
Voting : 6-0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan*, and Meyera E. Oberndorf
Council Members Voting Nay:
None
Council Members Absent:
John A. BaLa, Vice Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
*Councilwoman McClanan advised "I think everyone here knows that I
have in the past voted consistently against the Water and Sewer part
of this and also this year's General ObligAtion Bonds, and in light of
the fact we are at the point we do need the money to take care of our
present commitments I will vote yes on the whole issue so we will
have the votes requir6d but I haven't changed my feelings on the ones
I voted for in the past."
7
At a meeting of the. Council of the City
of Virginia Beach, Virginia, held on the day of February,
1982, at which the followinq members were present and absent:
PRESPNT:
Councilman E. T. Buchanan
Councilman F. Reid Ervin, Acting Mayor
Councilwoman Barbara M. Henley
Councilman W. H. Kitchin, III
Councilwoman Reba S. McClanan
Councilwoman meyera E. Oberndorf
ABSENT:
Councilman John A. Baum
Vice Mayor Harold Heischober
Councilman Clarence A. Holland, M.D.
Mayor J. Henry McCoy, Jr., D.D.S.
Councilman Patrick L. Standing
the following resolution @.7as adopted by an affirmative roll call
vote of a majority of all members of the Council, the ayes and
nays beinq recorded in the minutes of the meetinq as shown below:
Members Vote
Councilman E. T. Buchanan Aye
Councilman P. Reid Ervin, Acting Mayor Aye
Councilwoman Barbara M. Henley Aye
Councilman W. H. Kitchin, III Aye
Councilwoman Reba S. McClanan Aye
Councilwoman Meyera E. Oberndorf Aye
RESOLUTION AWARDING 965,000,000 GENERAL OBLICATION
BONDS OF THE CITY OF VIRGINIA BEACH, VIRGINIA,
CONSISTING OF $17,500,000 PfiBLIC IMPROVEMENT
BONDS, SERIES OF 1980, $18,300,000 PUBLIC
IMPROVEMENT BONDS, SERIES OF 1981, $13,200,000
ROAD BONDS, SERIES OF 1981, AND $16,000,000 T%ATER
AND SEWFR BONDS, SERIES OF 1981
WHEREAS, Georqe L. Hanh:ury, ii, at City Council's direction,
vacated his office as Cit,, Manaqer as of Pebroary 10, 1982@, and
WHEREAS, Giles G. Dodd has been appointed Interim City
Manaqer bv a maiori@@@, vote of C,.*.ty C@(,,t3ncil; an(i
- 8-
WHEREAS, the Council of the City of Virqinia Beach
authorized the iSsLiance of (a) !'@17,500,000 Public Improvement
Bonds by an ordinance adopted on January 21, 1980, to provide
funds, together witli other available funds to finance variou.,;
public improvements; (b) $ln,300,000 Piil)lic. Inprovement B-on,-Is bv
ordinances adopted April 6, 1981, September 14, 1981, and
November 2, 1981, to provide funds, together with other available
funds, to finance various public improvements; (c) $22,900,000
Road Bonds by an ordinance adopted August 27, 1980, and approved
by the qualified voters of the City in an election held on
November 4, 1980, to finance, tooether with other available
funds, the cost of a program of road construction and
improvement; and (d) $46,000,000 Water and Sewer Bonds by an
ordinance adopted on August 27, 1980, and approved by the
qualified voters of the City in an election held on November 4,
1980, to finance, together with other available funds, the cost
of continuiiiq the City's improvement proqram for its water and
sewer system (collectively, the Bonds), and none of the Bonds
have been issued and sold, and:
WHEREAS, The Chase Manhattan Bank, N.A. and First Wisconsin
National Bank of Milwaukee as ioanagers of a qroup of underwriters
(the Underwriters) have offered to purchase the Bonds pursuant to
a Purchase Agreement in the form attached hereto, and a repre-
sentative of Wainwriqht & Ramsey, Inc., the City's financial
advisor, has recommended the acceptance of such offer;
BE IT RESOLVED BY THE COUNCIL OP THE CITY OF VIRRINIA BEACH,
VIRGINIA:
1. Afte-- matu@-e consideration of the methods of sale of the
Bonds and current condi-tions of the municipal bond market,
includitig the difiiculties of scheduling a sale of bonds in view
of the rapidly clianging bond inarket and of selling the water and
sewer bonds with the interest limitation thereon, and after
consil"L.'Ui(@n by r(-,I)i:esentatives of City with repreSE'.tit-.d ives
of wainwri(lht & Ramsey, Inc., it is herebv deterniined tha" it is
in the besi- interc-,@-,t ol@ the Citiy (a) to F,(,,11 tl)e Bondr.
-2-
9-
neqotiation with the lin(lerwriltrs,@ r@lhp?- tl,ian ti@roliqh colin(@l-.it--iv-
bid in order to be able to accojiirri()date t@ic spc@c"I'al itedF, of 1,11@,
CiLy all(i (b) to a@C(@f)L the ofl-er of tlie to purcildsp-
the Bonds for resalle to the public, and the E3onds are hereby
awarded to the Underwriters in accordance with the terms of their
offer as stated in the Purchase Agreement. The Mayor or the
Interi,n City Manaqer is hereby authorized and directed to execute
the Purchase Aqreement to indicate the City's acceptance of su-lh
offer.
2. The distribution by the underwriters of the Preliminary
Official Statement dated February 9, 1982, describing the Bonds
as the Preliminary Official Statement o@ the Citv is hereby
ratified and approved. The Iiiterim City Manager, in collabora-
tion with Wainwriqht & Ramsey, Inc., and "he Underwriters, shall
make such completions, omissions, insertions and changes in the
Preliminary Official Statement not inconsistent with the
resolutions authori.zinq the issuance and sale of the Bonds as are
necessary to complete the Preliminary Official Statement as a
final official statement (the Official Statement).
3. The Interim Citv ManaQer is hereby authorized to execute
such documents, instruments and papers, including the Official
Statement, and do such acts and thinqs as may be necessary or
advisable in connection with the authorization, sale and issuance
of, and securitv for, the bonds.
4. This resolution sliall take effect immediately.
The undersiqned Clerk of the City of Virctinia Beach,
Virginia, hereby certifies that the foregoing constitutes a true
and correct extract from the minutes of a special - meetinq
of the Council. of the City of Virginia Beach held on the " day
of February, 1982, and of the whole thereof so far as applicable
to the matters referred to in such extract.
WITNESS rry siqnature and seal of the Ci.ty of Virqinia Beach,
Virginia, this dav of Pebruary, 1982.
Clc,rk, C;ty of V,-*--qinia ),each,
Virciiiiia
(SEAL)
JDB/da (24)
-10-
ITEM #17804
Mr. Borris presented to Mr. Dodd a check in the amount of $1,300,000
representing two percent (2%) Good Faith Deposit on the $65-Million
General Obligation Bonds.
Mr. Dodd advised Council that the City will have to hold the check. it
cannot be deposited until the closing date of March 3, 1982.
ITEM #17805
Upon motion by Councilman Buchanan, seconded by Councilwoman Oberndorf,
City Council voted to RECESS into EXECUTIVE SESSION (11:00 a.m.), for
the purpose of discussing Legal Matters, after which to adjourn.
Voting: 6 -0
Council Members Voting Aye:
E. T. Buchanan, F. Reid Ervin, Barbara M. Henley, W. H.
Kitchin, III, Reba S. McClanan, and Meyera E. Oberndorf
Council Menibers Voting Nay:
None
Council Members Absent:
John A. Baum, Vico Mayor Harold Heischober, Clarence A.
Holland, M.D., Mayor J. Henry McCoy, Jr., D.D.S., and
Patrick L. Standing
- 1 1 -
ITEM #17806
Upon motion by Counci I man Buchan an, City Counci 1 adjo urned at 1 1 :1 5 a m.
Diane M. Hickman, Deputy Cit@ Cl
h Ho 9 It I LML;, L;ity er F. Reid Ervin, Acting Mayor
City of Virginia Beach
Virginia
11 February 1982 - Special Meeting
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