Minutes 10/13/2009 - Laserfiche WebLink

Home Browse Search

October 13. 2009 Recommended Action: . Adopt of an ordinance to appropriate $4,808,250 received as Stimulus funds through the Virginia Department of Health for the Prentis Park Waterline Replacement Project to a Capital Improvements Project. Vision Principle: Thriving Neighborhoods and a Sense of Community. Motion by Mr. Whitehurst, and seconded by Mr. Smith, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO APPROPRIATE IN THE FY 2009-2010 ECONOMIC STIMULUS FUND THE SUM OF $4,808,250 RECEIVED THROUGH THE VIRGINIA DEPARTMENT OF HEALTH FOR THE PRENTIS PARK WATERLINE REPLACEMENT CAPITAL IMPROVEMENT PROJECT." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 09 - 515 - Adoption of an ordinance authorizing the issuance of a not to exceed $19,000,000 General Obligation School Bond, Series 2009, of the City of Portsmouth, Virginia, to be sold to the Virginia Public School Authority and providing for the form and details thereof. Vision Principle: Lifelong Learning Community. Background: . In the FY 2008 budget, $727,208 was appropriated for the design of a new Simonsdale Elementary School. However, due to City revenue shortfalls, additional funding for Simonsdale was delayed and is not programmed in the FY1 0-FY14 Capital Improvements Plan until FY2012. . The current Simonsdale Elementary School is a 33,300 square foot, 325 student capacity school facility that was built in 1946. The replacement facility will be an 80,000 square foot, 700 student capacity facility that will be Leadership in Energy and Environmental Design (LEED) Green Building Rating certified. The new building will permit the consolidation of the current Simonsdale and Olive Branch elementary schools, and the conversion of Olive Branch into a Pre-Kindergarten Center. . Governor Kaine has allocated $18,000,000 from the American Recovery and Reinvestment Act of 2009 (ARRA) Qualified School Construction Bonds (QSCBs) to the City of Portsmouth. QSCBs are taxable bonds designed to provide no- or very-low-cost financing for qualified public school projects by granting to the bondholders an annual credit against the bondholders' federal income tax liability (including alternative minimum tax liability), which credit is intended to compensate the bondholders in lieu of interest. Discussion: . This is an once-in-a-lifetime opportunity for The City of Portsmouth to build the last scheduled major construction project at zero percent interest, thereby saving approximately $18 - $20 million. . In addition to the $78M courts facility project recently approved by Council, this $18M project for Simonsdale will stretch the city's bonding capacity to its limits. Financial Impact: . On September 22, 2009, the City's financial advisors, Davenport and Company, presented the attached Capital Funding Update information to Council at its Public Work Session regarding the financial impact of adding the Simonsdale Elementary School project. Motion by Ms. Randall, and seconded by Mr. Whitehurst, to adopt the following ordinance, and was adopted by the following vote: