Minutes 10/09/2018 - Laserfiche WebLink

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October 9, 2018 Next Steps Following Council Action:  Finance will complete the necessary budget adjustments. 1. Claude Parent, 802 Arnold Palmer Drive, spoke in opposition to this item. 2. Dr. Elie Bracy, 2970 Green Drive, spoke in opposition to this item. 3. Mark Geduldig-Yatrofsky, P. O. Box 50141, asked that City Council defer this item. 4. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item. 5. Pamela Phillips, 114 Webster Avenue, spoke in opposition to this item. Motion by Ms. Psimas, and seconded by Ms. Lucas-Burke, to adopt the following ordinance. Motion by Mr. Moody, and seconded by Ms. Lucas-Burke, to table Item 18-387 to the October 23, 2018 City Council Meeting, and was denied by the following vote: Ayes: Lucas-Burke, Moody, Rowe Nays, Clark, Psimas, Smith Motion by Ms. Psimas, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO APPROPRIATE $5,189,613 IN UNEXPENDED FUNDS FROM THE FY 2018 RISK MANAGEMENT FUND BUDGET FOR THE PORTSMOUTH PUBLIC SCHOOLS (PPS) TO THE FY 2019 GENERAL FUND FOR THE CITY OF PORTSMOUTH FOR THE PURPOSE OF ESTABLISHING A RESERVE FOR THE PPS HEALTH SELF INSURANCE AND WORKERS COMPENSATION AND GENERAL LIABILITY PROGRAMS.” Ayes: Clark, Psimas, Smith, Rowe Nays: Lucas-Burke, Moody 18 - 388 - Adoption of a resolution authorizing the issuance of up to $10,900,000 in City of Portsmouth, Virginia General Obligation Bonds and setting forth the form, details and provisions for the payment thereof. Background:  In its FY 2017, 2018 and 2019 adopted budgets, the City identified the need to finance approximately $10.7 million of vehicles and equipment.  This includes $6.2 million for service vehicles and $4.5 million for fire trucks.  The identified needs can be financed through a single General Obligation Bond issuance. Discussion:  City staff, working closely with the City’s financial advisor and bond counsel, has taken the necessary steps to prepare for a Bond issuance in late October.  A competitive solicitation was issued for placement of the Bonds through a direct bank loan process and twelve lenders provided bids in response.  In the opinion of City staff and its advisors, SunTrust Bank’s proposal to provide 10 year financing at a 3.01% interest rate is the bid which best suits the City’s needs.  The Resolution proposed for Council adoption authorizes the issuance of up to $10,900,000 in bonds with a maximum interest rate of 3.01%.  The Virginia Public Finance Act (Va. Code §15.2-2600, et seq.) requires that a public hearing be held prior to authorizing a bond issuance. The public hearing will be held prior to consideration of the proposed Resolution.  If Council adopts the Resolution, closing on the financing is anticipated to occur in late October.