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January 24~ 1984 dictions in tipping fees in order to pay these interest charges. Therefore, the participating cities in the first phase have been requested by the SPSA Board of Directors ~o pass a resolu- tion guaranteeing, a portion of the $26,000,000 bond issue. By having this guarantee backed by the localities, the bonds would be viewed as substantially more secure investments and thereby command a lower rate of interest. This method of financing is similar to the one used to support the Water and Sewer Bonds of the City also known as "double barrel" bonds. As an added measure of protection to the participating localities, the Board of SPSA passed a resol- ution on January 18, 1984 stating that tipping fees will always be adequate to provide for debt service and operation of the landfill, if not, they will establish the appropriate fee to insure that commitment." On motion of Mr. Whitlow and seconded by Mrs. Webb, the following resolution was adopted, and by the following vote: "A RESOLUTION AUTHORIZING A GUARANTY AGREEMENT WHEREBY THE CITY OF PORTSMOUTH WILL GUARANTEE INDIRECTLY 21% OF THE DEBT SERVICE ON NOT EXCEEDING $26,000,000 GUARANTEED REVENUE BONDS (REGIONAL SOLID WASTE PROJECT) OF THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA. BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. That the City of Portsmouth (herein called the "City") has found and determined and does hereby declare that: (a) The cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the counties of Isle of Wight and Southampton, Virginia (herein collectively called the "Units") have heretofore created the Southeastern Public Service Authority of Virginia (herein called the "Authority") pursuant to the provisions of the Virginia Water and Sewer Authorities Act, being Chapter 28, Title 15.1,~Code of Virginia, 1950, as amended (herein called the "Act"), for the purpose of providing for the acquisition, financing, construction, operation and maintenance of a water system and a garbage and refuse collection and disposal system, which will be publicly owned a~d controlled regional projects within the meaning of Article VII, Section 10 (a) (4) of the iConstitution of Virginia. (b) The Authority intends tOiprovide and to operate a regional system for the reception, transfer, processing and diSPosal oE solid waste. (c) Each of the cities of Norfolk, Chesapeake, Portsmouth, Franklin and Suffolk and the County of Southampton, Virginia, has entered into an agreement with the Authority for the acquisition, construction and Operation by the Authority of a regional solid waste reception, transfer, processing and disposal system (herein called the "Disposal System", such cities, such countyiand any other imunicipal corporation and county which enter into such an agreement with the Authority herein collectively called "Contracting Units" and each such agreement herein called a Comtract"), pursuant to which the Authority has agreed to construct in two phases and operatelsuch a system and each of the Contracting Units has agreed to deliver or cause to be delivered to the Disposal System substantially all of the solid waste (excluding ~azardous solidiwaste) under the control of such Unit and, subject to certain exceptions, to pay the Authority tipping fees for its disposal of such solid waste. (d) Such Contracts contemplate the development of the Disposal System in two phases the first phase (herein called "Phase I") consisting of a new landfill, transfer stations, supporting equipment, rolling stock and ancillary facilities and the second phase (herein called "Phase II") consisting of a refuse derived fuel plant, additional transfer stations, supporting equipment, rolling stock and ancillary facilities to be operated in conjunction with Phase I (Phase I and Phase II herein collectively called the "Project"). (e) Chapter 544, Virginia Acts of Assembly, 1977 (herein called the "Special Act"), enacted pursuant to Article VII, Section 10 (a) (4) of the Constitution of Virginia, authorize the cities of Norfolk, Chesapeake, Portsmouth, Franklin, Suffolk and Virginia Beach to contrac obligations to provide payments over aiperiod or periods of more than one year to guarantee the payment of all or any part of the principal of and the interest on bonds issued by the Authority on account of the Disposal System and provides that such payments shall be an excluded indebtedness within the meaning of and for the purposes of Article VII, Section 10 (a) of the Constitution of Virginia. (f) The Authority adopted on December 21, 1983 a resolution (herein called the "Bond Resolution") providing for the issuance of not exceeding Twenty-six Million Dollars ($26,000,000) Southeastern Public Service Authority of Virginia, Guaranteed Revenue Bonds, Series A (Regional Solid Waste Project) (herein called the "Bonds") for the purpose of providing funds for payment of the cost of constructing and placing into operation Phase I of the Disposal System and of a part of the cost of certain engineering studies relating to Phase II of the Disposal System (Phase I and such Phase I1 studies herein collectively called the "Initial Project"). (g) The cities of Norfolk, C~esapeake, Portsmouth and Franklin (herein collectively called the "Guaranteeing Units") have Retermined that it is necessary and proper and in their best interests to enter into a Guaranty Agreement (herein called the "Guaranty Agreement") and to agree severally to make payments for the account of the Authority from time to time for deposit in the Reserve Account under the Bond Resolution in order to maintain the balance to the credit thereof at any amount eq6al to the sum of the next succeeding interest payment and the next succeeding principal payment scheduled to become due on the Bonds, whether by maturity or mandatory redemption, and thereby to guarantee the payment of the principal of and the interest on the Bonds when duei whether at maturity or by redemption,or otherwise.