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December 13, 2005
<br />
<br />Staff Recommends:
<br />Adoption of a resolution approving the re-issuance by the Southeastern Public Service
<br />Authority (SPSA) of Virginia of certain senior revenue bonds issued in 1993, 1998, and
<br />2004, by which a portion of the proceeds of bonds refunded were used to finance or
<br />refinance facilities located in the City of Portsmouth. Vision Principle: Robust and
<br />Prospering Economy.
<br />
<br />Next Steps Following Council Action:
<br />?
<br /> None
<br />
<br />Motion by Mr. Whitehurst, and seconded by Ms. Psimas, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />“RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA
<br />APPROVING THE REISSUANCE BY THE SOUTHEASTERN PUBLIC SERVICE
<br />AUTHORITY OF VIRGINIA OF CERTAIN SENIOR REVENUE BONDS ISSUED IN
<br />1993, 1998 AND 2004, WHICH BONDS REFUNDED BONDS WHICH WERE USED
<br />TO FINANCE OR REFINANCE FACILITIES LOCATED IN THE CITY OF
<br />PORTSMOUTH.
<br />
<br />WHEREAS,
<br /> the Southeastern Public Service Authority of Virginia (the
<br />"Authority") will be deemed as a matter of Federal income tax law to “reissue” certain
<br />Senior Revenue Bonds issued in 1993, 1998 and 2004, namely its Senior Revenue
<br />Refunding Bonds, Series 1993A (Regional Solid Waste System) issued on November
<br />18, 1993 in the principal amount of $147,250,000 and currently outstanding in the
<br />principal amount of $58,050,000, its Senior Revenue Refunding Bonds, Series 1998
<br />(Regional Solid Waste System) issued on April 23, 1998 in the principal amount of
<br />$33,535,000 and currently outstanding in the principal amount of $33,535,000 and its
<br />Senior Revenue Refunding Bonds, Series 2004A Tax-Exempt (Regional Solid Waste
<br />System) issued on June 30, 2004 in the principal amount of $39,390,000 and currently
<br />outstanding in the principal amount of $39,390,000 (collectively, the "Tax-Exempt
<br />Bonds"), which bonds refunded bonds that financed or refinanced the following facilities,
<br />all or a portion of which are or were located within the City of Portsmouth (the “City”): a
<br />2,000 ton per day capacity Refuse Derived Fuel Plant located at 4 Victory Boulevard,
<br />Portsmouth, Va. adjacent to the Norfolk Naval Shipyard of the United States Navy (the
<br />“RDF Plant”), and modifications and improvements thereto, including but not limited to a
<br />bulky waste shredder; costs associated with the design, construction of and
<br />improvements to the power plant at the Norfolk Naval Shipyard located at 3809 Elm
<br />Avenue in Portsmouth, Virginia formerly owned by the United States Navy (the “Power
<br />Plant”) to burn the Refuse Derived Fuel produced by the Authority at the RDF Plant
<br />across Victory Boulevard; the Portsmouth Transfer Station (which has since been
<br />demolished), formerly located on Frederick Boulevard at the intersection with Interstate
<br />Route 264; and the funding of certain capital improvements to any or all of the facilities
<br />at the locations described herein which comprises the System, together with vehicles,
<br />rolling stock, equipment and other functionally related and subordinate items; (the "Tax-
<br />Exempt Improvements"); and
<br />
<br />WHEREAS,
<br />under the Internal Revenue Code of 1986, as amended (the
<br />"Code"), prior to the reissuance of the Tax-Exempt Bonds, the Authority must hold a
<br />public hearing and receive governmental approval of the issuance of the Tax-Exempt
<br />Bonds; and
<br />
<br />WHEREAS,
<br /> such governmental approval can, by virtue of the location of certain
<br />of the Tax-Exempt Improvements within the City, be given as to such improvements by
<br />the City; and
<br />
<br />WHEREAS,
<br />Section 15.2-4906 of the Code of Virginia, 1950, as amended (the
<br />"Local Approval Provision"), requires that, if certain authorities created pursuant to law
<br />in Virginia hold a public hearing in accordance with federal law as a prerequisite to
<br />undertaking a tax-exempt financing, such authorities must receive approval for the
<br />financing from the governing bodies of the localities in which the improvements to be
<br />financed are to be located; and
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