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January 8, 1991
<br />
<br />A RESOLUTION OF THE COUNCIL OF THE ~ITY OF
<br />p~RTSMOUTHt VIRGINIAt ACCEPTING A PROPOSAL TO
<br /> ROHASE TNIRTY--FI~E ~ILLION DOLLARS ($35/000,000)
<br />PRINOIRAL AHOUNT O~ GENERAL OBLIGATION PUBLIC
<br />IMPROVEMENT BONDS~ SERIES 1991, AND TEN MILLION
<br />DOLLARS ($10,000,000) RRINOIPAL AMOURT OF GENERAL
<br />OBLIGATION PUBLIC UTILITY BONDS, SERIES 199~, OF
<br />TRE CITY OF PORTSMOUTH, VIRGINIA; FIXING THE RATES
<br />
<br /> BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />
<br /> SECTION 1. Findings and Deter~ination~ (a) Pursuant
<br /> to a resolution adopted by this Council on January 7, 1991,
<br /> entitled "A RESOLUTION AUTHORIZING THE ISSUANCE OF THIRTY-FIR
<br /> MILLION DOLLARS ($35,000,000) PRINCIPAL ~/~OUNT OF 'GENERAL
<br /> OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF PORTSMOUTH,
<br /> VIRGINIA, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF
<br /> VARIOUS PUBLIC IMPRO%-EMENT PROJECTSOF AND FOR SUCH CITY; FIXING
<br /> THE FOR~ OF SUCH BONDS; PROVIDING FOR THE SALE OF SUCH BONDS; AND
<br /> PROVIDING T~q~ AUTHORIZATION OF SUCH BONDS HEREIN IS, IN PART, IN
<br /> LIEU OF CERTAIN GENEPJ~L OBLIGATION PUBLIC IMPROVEMENT BONDS
<br /> HERETOFORE AUTHORIZED", this Council a~thorized the issuance of
<br /> thirty-five million dollars ($35,000,000) principal amount of
<br /> General Obligation Public Improvement Bonds (the "Public
<br /> Improvement Bonds") of the City of Portsmouth, Virginia (the
<br /> "City,,).
<br />
<br /> ,(b) Pursuant to a resolution adopted by this Council
<br /> on January 7, 1991, entitled "A RESOLUTION AUTHORIZING THE
<br /> ISSUANCE OF TEN MILLION DOLLARS ($10,000,000) PRINCIPAL AMOUNT OF
<br /> GENERAL OBLIGATION PUBLIC UTILITY BONDS OF THE CITY OF
<br /> PORTSMOUTH, VIRGINIA, FOR THE PURPOSE OF MAKING CAPITAL
<br /> IMPROVEMENTS, EXTENSIONS AND ADDITIONS TO THE WATER AND SEWER
<br /> SYSTEM OF ~2~D FOR SUCH CITY PURSUANT TO ARTICLE VII, SECTION 10
<br /> (a) (2), OF THE CONSTII~3TION OF VIRGINIA; FIXIN~ THE FORM OF SUCH
<br /> BONDS; AND PROVIDING FOR THE SALE CE SUCH BONDS,,, this Council
<br /> authorized the issuance of ten million dollars ($10,000,000)
<br /> principal amoun= of General Obligation Public Utility Bonds (the
<br /> "Public Utility Bonds") of the City.
<br />
<br /> (c) The City Manager caused a Summary Notice of Sale
<br /> (the "Summary Notice of Sale") of both the Public Improvement
<br /> Bonds an~ the Public Utility BOnds (collectively, the "Bonds"),
<br /> to be published on December 28, ~990, in The Bond Buyer, a
<br /> financial journal published in the City of New York, New York,
<br /> ~nd caused a Prelim~a1~ Official Statement of. the City relating
<br /> to the Bonds, dated December 28, 199~0 (the "Preliminary Official
<br /> Sta=ement-), a Detail~ Notice of Sale of the Bonds, dated
<br /> December 2W~.1990 (the '!Detailed NOtice of Sale"), and an
<br /> Official PrOposal Form rela=ing to the Bonds [the "Proposal
<br /> Form,,), to be prepared and distribu=ed to prospective purchasers
<br /> of the Bonds.:
<br />
<br /> (~i ~ ~m~ry N~t~e of Sale and the Detailed Notice
<br />of Sale provided that sealed proposals for the purchase of the
<br />Bonds would,be received by or on behalf of the City, a= the
<br />office of the City Manager until TWelve O'Clock Noon, Eastern
<br />Standard Tim~, on T~esday, January 8, I991, a~ which time and
<br />place all proposals would be publicly opened.
<br />
<br /> (e) Pursuan~ to the De=ailed Notice of Sale, four (4)
<br />proposals for the purchase of the Bonds were received by the
<br />City, each accompanied by a certified or bank cashier,s check in
<br />the amount of $900,000 payable to the order of the City of
<br />Portsmouth, Virginia. The names of the bidders submitting each
<br />such proposal, the purchase price for the Bonds specified in each
<br />such proposal and the tru~ interest cost to the City resulting
<br />from each such proposal are as follows:
<br />
<br />Name of Bidde~ ~urchase Price SDecifie~
<br />Merrill Lynch & Co. $ 45,000,000.00
<br />Chase Securities, Inc. 45,001,124.05
<br />Goldman, Sachs & Co. 45,000,000.00
<br />Prudential-Bache
<br />Securities, Inc. 45,000,000.00
<br />
<br />6.86778%
<br />6.90417
<br />6.92557
<br />
<br />7.10447
<br />
<br /> (f) After due consideration of all such proposals,
<br />this Council hereby finds and determines that (a) Merrill Lynch &
<br />Co. (the "PUrchaser,,) is a responsible bidder, (b) of the
<br />proposals for the purchase of the Bonds received by the City, the
<br />proposal of the Purchaser (the "Proposal,,) is the proposal ~o
<br />purchase~the Bonds at the lowest true interest cost to the City,
<br />determined by doubling the semiannual interest rate (compounded
<br />semiannually) necessary =o discount the principal and interest
<br />payments, excluding interest accrued to the delivery date, on the
<br />Bonds from the dates of palrment thereof =o the date of the Bonds
<br />(J~}nu~ry 1, t991) and ~o the price bid, (c) the Proposal is the
<br />best proposal for the purchase of the Bonds received by the City,
<br />is in accordance with the Detailed Notice of Sale, and should be
<br />accepted.
<br />
<br />
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