HomeMy WebLinkAboutAPRIL 7, 1981 SPECIAL SESSION
Cit@ C)f -vil-wirai@
April 6, 1981
The Honorable tlayor
V.embers of City Council
As prescribed by Section 2-9 of the Code of the City of
Virginia Beach, I hereby respectfully request a Special
tleeting of the Virginia Beach City Council to be held in the
Council Chambers at 7:00 p.m. Tuesday, Ppril 7, 1981.
The purpose of this meeting is: (1) to consider an
Ordinance contracting to provide a payment to the Southeastern
Public Service Authority of Virginia to guarantee the payment
of a part of certain obligations of the Authority; and (2)
to discuss the construction of a second well in Isle of Wight
County.
'Respectfully,
Georige L. Hanbdr'y-'--
City-'Manager
GLH:asd
SPECIAL MEETING
VIRGINIA BEACH CITY COUNCIL
7 April 1981
7:00 p.m.
CITY COUNCIL CHAMBERS
ITEM I FORMAL SESSION
A. CALL TO ORDER - Mayor J. Henry Mc,Coy, Jr., D.D.S.
B. READING OF CITY MANAGER'S CALL FOR SPECIAL MEETING
C. INVOCATION - Reverend Roy R. Jackson
Ret ired
United Methodist Conference
D. ROLL CALL
E. An Ordinance contracting to provide a payment to
the Southeastern Public Service Authority of
Virginia to guarantee the payment of a part of
certain obligations of the Authority.
F. DISCUSSION: Construction of additional well in
Isle of Wight
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
7 April 1981
The Special Meeting of the Council of the City of Virginia Beach, Virginia,
was called to order by Mayor J. Henry McCoy, Jr., D.D.S., in the Council
Chambers, City Hall Building, on Tuesday, 7 April 1981, at Seven o'clock
i-n the evening
Council Members Present:
Jolm A. Baun, F. Reid Ervin, Vice @yor Harold Heischober,
Barbara M. Henley, Clarence A. Hollmd, M.D. , Reba S.
@Clanan, Mayor J. Henry McCoy, Jr., D.D.S, Donald W.
@rrick, @yera E. Oberndorf, and Patrick L. Standing
Council Members Absent:
W. H. Kitchin, III*
ITEM #16499
The City Clerk read the Notice of Public Hearing:
As prescribed by Section 2-9 of the Code of the City of Virginia
Beach, the City Manager requested a SPECIAL MEETING at the
Regular @eting of City Council, 6 Apri.1 1981; AND, upon mtim
by Councilmn Standing, seconded by Councilnian Baum, the Virginia
Beach City Counci.1 wted unanimusly to hold a SPECIAL MEETING at
7:00 p.m., Tuesday, 7 April 1981, in the Council Chan-bers for
the purposes of:
1. An Ordinance contracting to provide a payment to the Sautheastern
Public Service Authority of Virginia to guarantee the pa@t of
a part of certain obligations of the Authority.
2. Construction of a second well for water supply within the County
of Isle of Wight.
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INVOCATION: Reverend Roy R. Jackson
Retired
United Methodist Conference
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
ITEM #16500
The City Clerk read the letter from the City Manager concerning the
Ordinance contracting to provide a payment to the Southeastern Public
Service Authority of Virginia to guarantee the payment of a part of
certain obligations of the Authority:
"Attached is an Ordinance whereby the City of Virginia Beach
contracts to obligate the amouit of $943,000 to the Southeastem
Virginia Public Service Authority (SPSA) as part of certain
obligations of tbe Authority. No paymnt will be rmde if SPSA
builds and dexelops a refuse collection and disposal system. Our
obligation for paynmt is only if SPSA fails to develop the plant
as proposed. Three recent ewnts pronpt the City @ger to gi-ve
the rec@dation of approval of this Ordinance.
"l. The Agreenient with the Navy now seems imminent and the Program
is closer to actuality than now ever before.
"2. @ City of Chesapeake has given overtures that they are
interested in joining SPSA and in helping share the blirdens
and/or benefits of this System.
3. The City Memager has receiwd a tentatiw agre@t on the use
of Virginia Beach's @ill as the exclusive disposal site for
ash and residue generated by the disposal system. This agree-
umt will, in effect, do what he indicated to Cot=il wuld be
his reason for re ding joining this Agency. This reason
is that it wuld not cost the citizens of Virginia Beach any
mre than what w are now paying and there will be sorm savings
which could be rmjor in the future if the tipping fee paid to
SPSA is reduced or eliminated, as presently proposed in the
de-velopment p@.
It is, therefore, reccmrended that Council approve this Ordinance to
provide Virginia Beach's obligation to SPSA.
For yoir infornation, attached also is a proposed Resoluticn authorizing
issuance and sale of $3,010,000 in Notes for SPSA. This Resoluticn will
be presented to the Board @rs of SPSA for their adoption after all
Cities affected agree to their respective obligations."
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*COUNCILMAN KITCHIN ENTERED MEETING AT 7:35 p.m.
Mr. @erbert E. Schippell, Professional Engineer, spoke on the matter
of producing Gasohol from garbage.
Upon motion by Councilman Standing, seconded by Councilman Ervin, City
Council voted to uphold the recommendation of the City Manager and
ADOPT the Ordinance contracting to provide a payment to the Southeastern
Public Authority of Virginia to guarantee the payment of a part of
certain obligations of the Authority.
Voting: 9-2
Council Members Voting Aye:
John A. Baun, F. Reid Ervin, Vir-e @yor Harold Heischober,
Barbara M. Benley, Clarence A. Holland, M.D., W. H. Kitchin,
III, Donald W. @rrick, @yera E. Oberndorf, and Patrick L.
Standing
Council Members Voting Nay:
Reba S. McClanan, and @yor J. McCoy, Jr., D.D.S.
Council Members Absent:
None
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AN ORDINANCE CONTRACTING TO PROVIDE A
PAYMENT TO THE SOUTHEASTERN PUBLIC SERVICE
AUTHORITY OF VIRGINIA TO GUARANTEE THE
PAYMENT OF A PART OF CERTAIN OBILGATIONS
OF THE AUTHORITY
BE IT ORDAINED by the Council of the City of
Section 1. The City of Virginia Beach (the "City"), has
found and determined and does hereby declare that:
(a) The Cities of Chesapeake, Franklin, Norfolk,
Portsmouth, Suffolk and Virginia Beach and the Counties of Isle of Wight
and Southangton have heretofore created the Soutneastern Public Service
Autbority of Virginia (the "Authority"), pursuant to the provisions of
the Virginia Water and Sewer Authorities Act, being Chapter 28, Title
15.1, Code of Virginia, 1950, as amended, for the purpose of providing
for the acquisition, financing, construction, operation and maintenance
of a water system and a garbage refuse collection and disposal system,
which will be publicly owned and controlled regional projects within the
meaning of Article VII, Section 10(a)(4) of the Constitution of Virginia.,
(b) The Authority has heretofore issued its
Notes in the aggregate principal amount of $1,931,000 for the purpose
of providing funds for paying a part of the cost of planning and design
of a garbage and refuse collection and disposal system.
(c) Said notes are designated "Notes, Series
1978", are dated April 26, 1978, bear interest at the rate of 4.43% per
annum until their payment, such interest to the maturity thereof being
payable semi-annually on April 26 and October 26 in each year, and are
stated to mature, subject to the right of prior redemption, on April 26,
1981.
(d) The Authority has determined to provide for
the issuance at this time of its Notes in the aggregate principal amount
of $3,010,000 for the purpose of providing funds for paying the Notes,
Series of 1978, at their maturity and for paying a part of the cost of
planning and design of a garbage and refuse collection and disposal system.
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(e) The Councils of the Cities of Franklin,
Norfolk, Portsmouth, Suffolk and Virginia Beach have determined that in
order to enhance the marketability of said Notes to be issued by the Authority
on account of such garbage and refuse collection and disposal system, said
Councils would require the power to contract obligations to provide
payments over a period or periods of more than one year to the Authority
to guarantee the payment of all or any part of the principal of and the
interest on Notes issued from time to time by the Authority which contract
obligations would be an excluded indebtedness within the meaning of and
for the purposes of Article VII, Section 10(a)(4) of the Constitution of
Virginia.
(f) The General Assembly of Virginia by Chapter
544 of the Acts of Assembly of 1977 authorized the Cities of Franklin,
Norfolk, Portsmouth, Suffolk and Virginia Beach from time to time or at
any time to contract obligations to provide payments over a period or
periods of more than one year to the Authority to guarantee the payment
of all or any part of the principal of and the interest on Notes issued
from time to time by the Authority on account of its garbage and refuse
collection and disposal system and such contract obligations shall be
an excluded indebtedness within the meaning of and for the purposes of
Article VII, Section 10(a)(4) of the Constitution of Virginia.
(g) It is in the best interest of the City
to provide for a payment to the Authority to guarantee the payment of a
part of the obligations of the Authority to be incurred by the issuance
of said Notes and in anticipation of the issuance of its Revenue Bonds.
(h) The City has determined to contract an
obligation to provide a payment to the Authority not earlier than two
and one-half years from the date hereof to guarantee the payment of
$943,000 of the obligations to be incurred by the Authority by the
issuance of said notes and in anticipation of the issuance of its Revenue
Bonds, such contract obligations to be effective at such time as contract
obligations have been incurred by the Cities of Franklin, Norfolk,
Portsmouth, Suffolk and Virginia Beach to provide payments to the Authority
in the amounts of $36,000, $1,305,000, $508,000, $218,000 and $943,000,
respectively.
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Section 2. The City hereby contracts to provide a payment
to the Authority of $943,000 not earlier than two and one-half years
from the date hereof to guarantee the payment of $943,000 of the principal
amount of said Notes of the Authority without the payment of any interest
thereon, such payment to be an excluded indebtedness within the meaning
of and for the purposes of Article VII, Section 10(a)(4) of the
Constitution of Virginia.
Section 3. The contract obligation assumed in Section 2
hereof by the City shall be paid from an ad valorem tax upon all taxable
property in the City subject to local taxation sufficient in amount to
provide for the payment of said principal sum as said principal sum shall
become due, which tax shall be in addition to all other taxes authorized
to be levied in the City, and for the prompt payment of said principal
sum, the full faith and credit of the City are herby irrevocably pledged.
Section 4. Simultaneously with the retirement of said
Notes of the Authority the payment of a portion of which is hereby
guaranteed, or provision having been made for the retirement of said Notes,
this Ordinance shall terminate and be of no effect.
Section 5. This Ordinanc6 shall become effective when the
Cities of Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach have
incurred contract obligations to provide payments to the Authority in
the amounts of $36,000, $1,305,000, $508,000, $218,000, and $943,000,
respectively.
A copy - Teste: APPROVEU AS TO CONTENTS
@l.Ml,TURI
CIEP@RTMENT
................................ FORM
City Clerk
Certified to be a true excerpt from the approved
Minutes of the Council of the City of Virginia
Beach, Virginia, April 7, 1981.
Ruth Hodges Smith, City Clerk
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ITEM #16501
The City Clerk read the letter from the City Manager regarding the
second well in the County of Isle of Wight:
'As Council is @e, the City has been authorized by the Isle of
Wight Board of Supervisors to drill wlls which wuld yield
approxinately eight tdllicn gallcns of water a day. At the present,
only cne well is under construr-tion.
"Because of the positiw results the City bas recei-ved from the
first umll now being drilled in Isle of Wight, the fact tbat
the drawdown has been practically insig;iificant to surrounding
areas, and oi= need for as much water as possible, it is rec@ded
that you authorize the City @ger to proceed with the necessary
actims to have the second well drilled. The installation of this
well, corrbined with other wells in Suffolk, Sout@ton, and the
other @ll in Isle of Wight, will bring to the citizens of Virginia
Beach apprcximately 2D million gallons of water a day. This is
excluding any water which wuld be lost to evaparatim or
inadequate lines through Norfolk's system.
"It is, therefore, rec@ded that Council adapt the attached
Resolution."
Upon motion by Councilman Standing, seconded by Councilman Holland, City
Council voted to authorize construction of the second well in Isle of
Wight County, (for a -@otal of 5 wells)
Voting: 11-0
Council Members Voting Aye:
John A. Baum, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Healey, Clarence A. Holland, M.D., W. H. Kitchin,
III, Reba S. McClanan, Mayor J. Henry @Coy, Jr., D.D.S.,
Dcnald W. @rrick, @yera E. Oberndorf, Patrick L. Standing
Council Members Voting Nay:
Ncne
Council Members Absent:
None
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ITEM #16502
Upon motion by Councilman Baum, seconded by Councilman Merrick, City
Council voted to hold the Public Hearing on the proposed Budget,
4 May 1981, in the Council Chambers.
Voting: 10-1
Council Members Voting Aye:
Jolm A. Baun, F. Reid Ervin, Vice Mayor Harold Heischober,
Barbara M. Henley, Clarence A. Hc)lland, M.D. , W. H. Kitchin, III
Reba S. McClanan, Donald W. @rrick, @yera E. Oberndorf, and
Patrick L. Standing
Council Members Voting Nay:
Mayor J. Heriry YicCoy, Jr., D.D.S.
Council Members Absent:
None
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ITEM #16503
Mayor McCoy advised Council of a letter from J. C. Russell, Sr.,
requesting an opportunity to speak before Council to discuss
water meter hook-ups.
It was the consensus of Council to permit Mr. Russell to speak before
Council on Monday 13 April 1981.
ITEM #16504
Upon motion by Councilman Baun, City Council adjourned at 8:02 p.m.
Riith Hodges Stffith, City Clerk M-Y He cc D.D.S.
City of Virginia Beach,
Virginia
7 April 1981
Special Meeting
h