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R-99-64 A RESOLUTION SUPPORTING AMENDMENT OF THE CODE OF VIRGINIA TO EXTEND INDEFINITELY THE STATUTORY LIFE OF THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA AND TO ALLOW FOR THE WITHDRAWAL OF AUTHORITY MEMBERS WITHOUT REGARD TO THE EXISTENCE OF OUTSTANDING BONDS ISSUED BY THE AUTHORITY. WHEREAS, the City of Portsmouth is a member of the Southeastern Public Service Authority of Virginia ("SPSA"), an authority created pursuant to the Virginia Water and Waste Authorities Act (the "Act"); and WHEREAS, Section 15.2-5114 of the Code of Virginia, 1950, as amended, provides that an authority created under the Act shall exist for a term of fifty (50) years from its creation, subject to further extensions by unanimous action of its member localities; and WHEREAS, SPSA was created under the Act on January 24, 1973, and its statutory Iife will expire on January 23, 2023; and WHEREAS, it is prudent and necessary for SPSA to now undertake such planning and other measures as may be required to enable SPSA to continue to provide services in the future to those of its member localities and their citizens who may desire to receive such services from SPSA beyond the terms of SPSA's existing agreements with its member localities for services and beyond the expiration of SPSA's statutory life under the Act; and WHEREAS, SPSA is unable to plan properly for the provision of those future services or to economically finance the costs of providing those future services and the costs of providing the services which it is already committed to provide, without the elimination of the limit upon its statutory life that now exists under the Act; and WHEREAS, Section 15.2-5112 of the Code of Virginia further provides that a member of an authority created under the Act may not withdraw from that authority if the authority has outstanding bonds unless (i) those bonds have been paid or advance refunded in full, or (ii) the holders of those bonds unanimously agree to the locality's withdrawal, and neither (i) nor (ii) is practicable for an authority's continued efficient management of its debts and obligations; and WHEREAS, Section 15.2-5112 would in practice prevent a member of SPSA from withdrawing from SPSA as long as SPSA has outstanding bonds, even if that locality has no outstanding contractual obligation for the use of SPSA's services or any obligation, contractual or otherwise, for the repayment of that outstanding debt; and WHEREAS, the City of Portsmouth believes it is important to SPSA and its members to support the amendment of certain provisions of the Act to eliminate the limitations and restrictions described above in order to ensure SPSA's efficient and