Minutes 09/22/2009 - Laserfiche WebLink

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September 22. 2009 Discussion: . The lower debt service required to payoff the new refunding bonds will reduce or at least slow increases in the service fees for each member locality. Financial Impact: . Portsmouth's annual service fees will decrease or at least rise more slowly as a result of paying off the current bonds and the issuance of new refunding bonds at a lower interest rate. Staff Recommends: . Approval of the resolution authorizing the issuance of the refunding bonds in an amount not to exceed $15,000,000. Vision Principle: Thriving Neighborhoods and a Sense of Community. Next Steps Following Council Action: . A copy of the adopted resolution will be sent to the Regional Jail Authority which will begin the process for issuing the refunding bonds, provided that market conditions continue to exist that will enable the Authority to achieve its debt service savings goal. Motion by Mr. Whitehurst, and seconded by Mr. Heretick, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA APPROVING THE ISSUANCE OF DEBT BY THE HAMPTON ROADS REGIONAL JAIL AUTHORITY. WHEREAS, the City of Portsmouth, Virginia (the "City") entered into that certain Service Agreement, dated December 1, 1995 (the "Service Agreement") among the City and the cities of Hampton, Newport News and Norfolk (collectively, the "Member Jurisdictions") and the Hampton Roads Regional Jail Authority (the "Authority"), in connection with the acquisition, construction, equipping and operation of a regional jail facility located in Portsmouth, Virginia (the "Regional Jail"); WHEREAS, pursuant to the Service Agreement, the Member Jurisdictions are responsible for the payment of fees and charges for the use by their prisoners of the Regional Jail, and such payments are the primary source of revenue from which the Authority pays expenses of operations, including debt service on its bonds and other obligations; WHEREAS, the Board of Directors of the Authority has authorized and approved the proposed issuance by the Authority of its refunding revenue bonds in the aggregate principal amount not to exceed $15,000,000 (the "Bonds") for the purpose of refinancing a portion of the Authority's revenue bonds issued in 1996 in connection with the initial acquisition, construction and equipping of the Regional Jail and the costs of issuing the Bonds (the "Project"); WHEREAS, the Authority and the City have determined it is in the best interest of the Authority to sell the Bonds to the Virginia Resources Authority ("VRA"), which will result in substantial benefit and savings to the Authority and the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Portsmouth, Virginia that: 1. Consent to Issuance and Sale of Bonds. The City hereby acknowledges the benefits and savings and consents to the issuance and sale of the Bonds by the Authority to VRA for the Project described above, subject to the adoption of similar resolutions by the governing bodies of the other Member Jurisdictions.