Minutes 01/27/2015 - Laserfiche WebLink

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January 27, 2015 Discussion:  The HHRJ considered several factors in the proposal to restructure the reserve fund requirements in the Service Agreement. The HRRJ collects per diem payments in arrears from its member jurisdictions, making it necessary to maintain cash flow with separate Operating Reserve and General Reserve funds. There are now five member cities contributing to the majority (64%) of the revenue, with a continually shrinking revenue portion from state per diems (8%), Compensation Board reimbursement (27%) and no income from federal inmates or detainees. The facility is seventeen years old and requires increasingly costly capital repairs.  The proposed amendment maintains the same total requirement for a 90-day supply of reserves as currently prescribed, but allocates it differently in the funds for improved flexibility. Financial Impact:  There is no direct fiscal impact to the City. Recommended Action:  Adoption of the resolution. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action:  The City Manager will execute the Service Agreement. Motion by Dr. Edmonds, and seconded by Mr. Meeks, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION APPROVING AMENDMENT OF THE SERVICE AGREEMENT OF THE HAMPTON ROADS REGIONAL JAIL AUTHORITY TO RESTRUCTURE THE AGREEMENT’S RESERVES POLICY. WHEREAS, the Cities of Hampton, Newport News, Norfolk and Portsmouth, Virginia (the “Initial Member Cities”) 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 Initial Member Cities and the Authority entered into a service agreement (the “Service Agreement”) effective December 1, 1995, setting forth certain rights and obligations of the Initial Member Cities and the Authority with respect to the construction, use and operation of the Hampton Roads Regional Jail; and WHEREAS, the City of Chesapeake, Virginia was admitted as a member of the Authority and approved and became a party to the Service Agreement in 2014; and WHEREAS , Section 4.3 of the Service Agreement contains certain provisions related to the reserve funds to be maintained by the Authority; and WHEREAS , on the recommendation of its staff and financial advisor and after analysis of those provisions, the Authority desires to restructure and amend Section 4.3 of the Service Agreement to more accurately represent the utilization of Authority funds and to provide the Authority with reserve funds adequate for its needs and flexibility in the use and replenishment of those reserves; and WHEREAS, Section 9.5 of the Service Agreement provides that the Agreement may be amended only with the consent of the Authority and the governing body of each of its member jurisdictions, and the Authority approved the proposed amendment to the Service Agreement at its meeting the 17th day of December, 2014; WHEREAS , for the reasons and purposes stated above, the City of Portsmouth also now desires to approve the amendment of Section 4.3 of the Service Agreement.