Minutes 02/25/2014 - Laserfiche WebLink

Home Browse Search

February 25, 2014 • The Authority is a subordinate entity of the four city members, who individually carry general fund reserves which provide an additional fiscal safety net for the Authority and justify reducing its operating reserve. • As of this date, the City of Hampton has adopted the resolution for the policy change. The City Councils of Newport News and Norfolk will consider it at their next respective meetings. Financial Impact: • None. Recommended Action: • Adopt the resolution. Vision Principle: Efficient, Responsive Government. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in opposition to this item. Motion by Ms. Psimas, and seconded by Mr. Meeks, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE HAMPTON ROADS REGIONAL JAIL AUTHORITY SERVICE AGREEMENT TO PERMIT A REDUCTION IN THE AUTHORITY'S OPERATING BUDGET RESERVES. WHEREAS, the Cities of Hampton, Newport News, Norfolk and Portsmouth, Virginia (the "Cities") have provided for the creation of the Hampton Roads Regional Jail Authority (the "Authority") by agreement (the "Agreement") approved effective December 14, 1993; and WHEREAS, the Cities and the Authority entered into a service agreement ("the "Service Agreement") effective December 1, 1995, setting forth certain rights and obligations of the Cities and the Authority with respect to the construction, use and operation of the Hampton Roads Regional Jail; and WHEREAS, Section 4.3. of the Service Agreement provides that the Authority will provide for an Operating Reserve in each of its Annual Budgets in an amount equal to 25% of the expenditures, excluding debt service requirements, contained in the Annual Budget for each year; and WHEREAS, on the recommendation of its staff and its financial advisor and to minimize the annual costs to the Cities, the Authority voted at its meeting on January 15, 2014, to amend Section 4.3 of the Service Agreement to provide for an Operating Reserve in each Annual Budget of 16.67% of the expenditures, excluding debt service requirements, contained in the Annual Budget for each year; and WHEREAS, bond counsel to the Authority has advised it that such an amendment will not violate any provision of any resolution, indenture or agreement pursuant to which any notes, bonds or other financing has been issued by the Authority; and WHEREAS, Section 9.5 of the Service Agreement provides that it may be amended only with the consent of the Authority and the governing body of each City; and WHEREAS, for the reasons and purposes stated above, the Authority and the Cities desire to amend Section 4.3 of the Service Agreement. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it hereby approves, and authorizes and directs the City Manager to execute and the City Clerk to attest, on behalf of the City of Portsmouth, Virginia, that certain Amendment to the Service Agreement among the Hampton Roads Regional Jail Authority and the Cities of Hampton, Newport News, Norfolk, and Portsmouth dated December 1, 1995, a copy of which is attached hereto and made a part hereof.