Minutes 12/13/2005 - Laserfiche WebLink

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December 13, 2005 Motion by Mr. Moody, and seconded by Ms. Randall, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION AUTHORIZING THE CITY MANAGER AND THE CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE COMMONWEALTH OF VIRGINIA DEPARTMENT OF TRANSPORTATION AND THE CITY OF PORTSMOUTH FOR THE CONSTRUCTION OF IMPROVEMENTS TO VICTORY BOULEVARD. WHEREAS , the Council of the City of Portsmouth has determined that the construction of certain improvements to Victory Boulevard in the City of Portsmouth is a meritorious project; and WHEREAS , the Commonwealth of Virginia Department of Transportation has requested the City to enter into an agreement for the construction of improvements to Victory Boulevard as part of its Six-Year Improvement Program, identified as Project Number U000-124-136, R201 PPMS #51863. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia, that the City Manager and City Clerk are authorized to execute the agreement with the Commonwealth of Virginia, Department of Transportation, for the construction of improvements to Victory Boulevard, in the City of Portsmouth.” Ayes: Heretick, Moody, Psimas, Randall, Smith, Whitehurst, Holley Nays: None 05 - 579 - Adoption of a resolution to approve the re-issuance by the Southeastern Public Service Authority (SPSA) of Virginia of certain senior revenue bonds issued in 1993, 1998, and 2004, by which a portion of the proceeds of bonds refunded were used to finance or refinance facilities located in the City of Portsmouth. Vision Principle: A Robust and Prospering Economy. Background: ? The Southeastern Public Service Authority (SPSA) of Virginia has determined to take certain actions that will cause all or a portion of a series of outstanding bonds to be treated as reissued solely for federal income tax purposes that include: (1) Senior Revenue Refunding Bonds, Series 1993A; (2) Senior Revenue Refunding Bonds, Series 1998; and (3) Senior Refunding Revenue Bonds, Series 2004A Tax-Exempt. ? These will be treated as a current refunding of such Outstanding Bonds solely for federal income tax purposes. The maximum aggregate principal amount of the Reissued Bonds is $130,975,000. The proceeds of the Outstanding Bonds were used to finance or refinance all or a portion of the costs associated with the acquisition, construction, renovation, improvement and equipping of SPSA. Discussion: ? Under the Internal Revenue Code of 1986, prior to the re-issuance of the Tax- Exempt Bonds, SPSA had to hold a public hearing. This took place on November 14, 2005 and a summary of the public hearing is attached including a "financial impact statement" that is required by state law. ? Section 15.2-4906 of the Code of Virginia, 1950 requires authorities like SPSA to receive approval for the financing from the governing bodies of the localities in which the improvements to be financed are located. This attached resolution and notice are required elements of a straightforward IRS transaction. SPSA’s request and recommendation is that the City Council approves the re-issuance of the Tax-Exempt Bonds. ? Financial Impact: There are no costs to regional members in re-issuing this debt instrument. The facilities tied to the new debt are the same as those covered under the old debt.