HomeMy WebLinkAboutDECEMBER 10, 1981 SPECIAL SESSI
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL
MAYOR J. HENRY M,COY JR., D.D.S., K..p,@ill, B.@.gb
VICE-MAYOR HAROLD HEISCHOBER, A, L.,g.
JOHN A. BAUM, B.-.gh
E. T. BUCHANAN, Ly..b.-. B .... gb
F. REID ERVIN, A, L.,gl
BARBARA M. HENLEY, P..g. S.@.gh
CLARENCE A. HOLLAND, M.D., B.y.id. B .... gb
W. H. KITCHIN, ill. Vi,i.i. B..@h B.@.gh
REBA S. M,CLANAN, P,i ... @ A... B .... gb
MEYERA E. OBE)ZNDORF, A, L.,g@ 222 CITY HALL BUILDING
PATRiCK L. STANDIN6. A@ L.,g, MUNICIPAL CENTER
VtRCZNIA BEACH. VIRCINIA 23456
RUTH HODGES SMITH, Cily Cl-lk (804) 427-4303
CITY COUNCIL AGENDA
ITEM I SPECIAL MEETING - 12:00 p.m- - 10 December 1981
Virginia Beach Council Chambers
A. CALL TO ORDER - MAYOR J. HENRY MCCOY, JR.
B. ELECTRONIC ROLL CALL OF COUNCIL
C. INVOCATION: Reverend Malcolm L. Yaple
Princess Anne United Methodist Church
D. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
E. PUBLIC HEARING
1. Acceptance of low bid for sale of $65.million General Obligation
Bonds.
a. Recommendation of City Manager
F. ADTOURNMENT
1. Motion to adjourn
M I N U T E S
SPECIAL MEETING
VIRGINIA BEACH CITY COUNCIL
Virginia Bea"ch, Virginia
I 0 December 1 981
As prescribed by Section 2-9 of the Code of the City of Virginia Beach,
Virginia, the Special Meeting was called to order by Mayor J. Henry
McCoy, Jr., D.D.S., in the Council Chambers, City Hall Building, on
Thursday, December 10, 1981, at Twelve o'clock Noon, for the purpose
of accepting the low bid for the sale of $65-Million in General
Obligation Bonds.
Council Members Present:*
John A. Baum, Vice Mayor Harold Heischober, Barbara M.
Henley, Clarence A. Holland, M.D., W. H. Kitchin, III,
Reba S. McClanan, Mayor J. Henry McCoy, Jr., D.D.S.,
Meyera E. Oberndorf, and Patrick L. Standing
Council Members Absent:
E. T. Buchanan, and F. Reid Ervin
ITEM #17505
Mayor McCoy entertained a motion to permit Council to recess into
EXECUTIVE SESSION for the purpose of discussing the following:
1. PUBLIC FUNDS INVESTMENT: The investing of public funds where
competitio Or bargaining is involved, where if made public
initially, the financial interest of the governmental unit
would be adversely affected.
*VERBAL ROLL CALL
- 2 -
Upon motion by Councilman Holland, seconded by Councilman Standing,
City Council voted to RECESS into EXECUTIVE SESSION.
Voting 9- 0
Council Members Voting Aye:*
John A. Baum, Vice Mayor Harold Heischober, Barbara M.
Henley, Clarence A. Holland, M.D., W. H. Kitchin, III,
Reba S. McClanan, Mayor J. Henry McCoy, Jr., Meyera E.
Oberndorf, and Patrick L. Standing
Council Members Voting Nay:
None
Council Members Absent:
E. T. Buchanan, and F. Reid Ervin
*VERBAL ROLL CALL
3-
ITEM #17506
City Council reconvened in the Council Chambers (12:50 p.m.), with the
following Members present:
John A. BaLon, Vice Mayor Harold Heischober, Barbara M. Henley,
Clarence A. Holland, M.D., W. H. Kitchin, III, Reba S. McClanan,
Mayor J. Henry McCoy, Jr., D.D.S., Meyera E. Oberndorf, and
Patrick L. Standing
Council Members Absent:
E. T. Buchanan, and F. Reid Ervin
INVOCATION: Reverend Malcolm L. Yaple
Princess Anne United Methodist
Church
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
4-
ITEM #17507
The City Clerk read the following letter from the City Manager:
"The Honorable Mayor
Members of the Council
"Dear Council Members:
"Bids were received in my office today at 11:00 a.m. on the proposed
$65-Million General Obligation Bonds of the City of Virginia Beach.
As Council is aware, $16-Million of the proposed offering, although
General Olbigation Bonds, were for water and sewer improvements, and
there was a requirement that these bids must come in under a 10%
interest rate. We did not receive any bids on the $16-Million offering.
"Two bids were received for the remaining $49-Million:
1. Bank of Virginia at a net interest rate of
11. 8205%
2. Harris Trust at a net interest rate of
12.1738%
"Although we have maintained our favorable AA bond rating, and these
bonds were lower than the 20-year Bond Buyers average of 12.18%, for
the first time I must recommend rejection of all bids and the
authorization for short term notes until a later date when interest
rates are anticipated to be lower.
"Wall Street advisors indicate that the main reasons for the sizeable
increase over the last few days of 100 basis points, are the Reagan
Administration's announcement of the $100-Billion deficit in the
Federal BudgetI and the glut of bonds seeking placement which is at an
historic high Of $2.85-Billion to be sold in the next 30 days."
Very truly yours,
George L. Hanbury
City Manager
5-
ITEM #17508
Upon motion by Councilman Standing, seconded by Vice Mayor Heischober,
City Council voted to uphold the recommendation of the City Manager and
REJECT all bids for the sale of $65-Million General Obligation Bonds of
the City of Virginia Beach, Virginia.
Vot i ng : 9- 0
Council Members Voting Aye:
John A. Baum, Vice Mayor Harold Heischober, Barbara M.
Henley, Clarence A. Holland, M.D., W. H. Kitchin, III,
Reba S. McClanan, Mayor J. Henry McCoy, Jr., Meyera E.
Oberndorf, and Patrick L. Standing
Council Members Voting Nay:
None
Council Members Absent:
E. T. Buchanan, and F. Reid Ervin
6-
ITEM #17509
Mayor McCoy advised the public and press that during the Council meeting
of 14 December 1981, discussions will be held as to Short-Term Notes,
and negotiating bonds and a press conference will be held immediately
following this meeting.
ITEM #1 7510
Upon motion by Councilman Standing, City Council adjourned at 12:55 p.m.
Deputy City Cler@
-Diane M. H,@@ a
RUth Hodges @mith, City Cle-rk
City of Virginia Beach,
Virginia
10 December 1981
Special Meeting
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