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July 12, 1983
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<br />breakdown of the bond anticipation notes, detailing the amount that would be committed by eac!
<br />of the participating communities.
<br />
<br /> As Council is aware the City Council of Chesapeake has requested and has been approved
<br />by the Authority to participate in this project. Chesapeake's participation will reduce the
<br />potential liability for all the other communities. Finally, contracts with the Navy are pro-
<br />ceeding in the same slow manner as previously; however, they seem to be very positive in thei~
<br />support of the project.
<br />
<br /> Adoption of this resolution is contingent upon participation by the other communities
<br />and I, therefore, recommend it for your adoption."
<br />
<br />Motion of Mr. Beamer and seconded by Mr. Gray, to adopt the resolution.
<br />
<br /> Motion of Mr. Barnes and seconded by Mrs. Webb, to amend the:~es6~nt~on by removing
<br />Paragraph 4 of Page 3, and was adopted by unanimous vote.
<br />
<br />On motion the following resolution was adopted, as amended, and by the following vote:
<br />
<br />"A RESOLUTION CONTRACTING TO PROVIDE A PAYMENT TO THE SOUTHEASTERN PUBLIC
<br />SERVICE AUTHORITY OF VIRGINIA TO GUARANTEE THE PAYMENT OF A PART OF A CERTAIN
<br />OBLIGATION OF THAT AUTHORITY.
<br />
<br /> WHEREAS, the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia
<br />Beach, and the counties of Isle of Wight and Southampton have heretofore created the South-
<br />eastern Public Service Authority of Virginia (the "Authority") pursuant to the provisions of
<br />the Virginia Water and Sewer Authorities Act, being Chapter 28, Title 15.1, Code of Virginia,
<br />1950, as amended, for the purpose of providing for the acquisition, financing, construction,
<br />operation and maintenance of a water system and a garbage and refuse collection and-disposal
<br />system, which will be publicly owned and controlled regional projects within the meaning of
<br />Article VII, 610 (a) (4) of the Constitution of Virginia; and
<br />
<br /> WHEREAS, the Authority has heretofore issued its notes in the
<br />of $1,931,000 for the purpose of providing funds for paying a part
<br />design of a garbage and refuse collection and disposal system; and
<br />
<br />aggregate principal amount
<br />of the cost of planning and
<br />
<br /> WHEREAS, said notes were designated '[Notes, Series 1978", were dated April 26, 1978, bore
<br />interest at the rate of 4.43% per annum until their payment, such interest to the maturity
<br />thereof being payable semi-annually on April 26th and October 26th in each year, and was state
<br />to mature, subject to the right of prior redemption, on April 26, 1981; and
<br />
<br /> WHEREAS, the Authority has heretofore issued its notes in the aggregate principal amount
<br />of $3,010,000 for the purpose of providing funds for paying the Notes, Series 1978, at their
<br />maturity and for paying a part of the cost of planning and design of a garbage and refuse
<br />
<br />d
<br />
<br />collection and disposal system; and
<br />
<br />are dated April 27, 1981, bear
<br />such interest to the maturity
<br />27th in each year, and are stat~
<br />
<br /> WHEREAS, said notes are designated "Notes, Series 1981",
<br />interest at the rate of 9-3/8% per annum until their payment,
<br />thereof being payable semi-annually on April 27th and October
<br />to mature subject to the right of prior redemption, on October 27, 1983; and
<br />
<br /> WHEREAS, by its duly adopted resolution, a certified copy of which has been filed with tt
<br />City and receipt of which is hereby acknowledged, the Authority has determined to provide for
<br />the issuance at this time of its notes in the aggregate principal amount of $3,840,000 for th~
<br />purpose of providing funds for paying the Notes, Series 1981, at their maturity and for payin~
<br />a part of the cost of planning and design of a garbage and refuse collection and disposal
<br />system; and
<br />
<br /> WHEREAS, ~he Councils of the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffol]
<br />and Virginia Beach, have determined that in order to enhance the market ability of said notes
<br />to be issued by the Authority on account of such garbage and refuse collection disposal systev
<br />said Councils would require the power to contract obligations to provide payments over a perie
<br />or periods of more than one (1) year to the Authority to guarantee the payment of all or any
<br />part of the principal of and the interest on notes issued from time to time by the Authority
<br />~kich contract obligations would be excluded indebtedness within the meaning of and for the
<br />purpose of Article VII, Section 10 (a) (4) of the Constitution of Virginia; and
<br />
<br /> WHEREAS, the General Assembly of Virginia by Chapter 544 of the Acts of Assembly of 1977
<br />authorized the cities of Chesapeake, Franklin, Norfolk, Portsmouth; Suffolk and Virginia Beac]
<br />from time to time or at any time to contract obligations to provide payments over a period or
<br />periods of more than one (1) year. to the Authority to guarantee the payment of all or any part
<br />of the principal of and the interest on notes issued from time to time by the Authority on
<br />account of its garbage and refuse collection and disposal system and such contract obligations
<br />shall be an excluded indebtedness within the meaning of and for the purpose of Article VII,
<br />Section 10 (a) (4) of the Constitution of Virginia; and
<br />
<br /> WHEREAS, ~t is in the best interest of this City to provide for a payment to the Authorit
<br />to guarantee the payment of a part of the obligations of the Authority to be incurred by the
<br />issuance of said notes and in anticipation of the issuance of its revenue bonds; and
<br />
<br /> WHEREAS, the City has determined to contract an obligation to provide a payment to the
<br />Authority not earlier than two (2) years from the date hereof to guarantee the payment of
<br />$560,000 of the obligations to be incurred by the Authority by the issuance of said notes and
<br />in anticipation of the issuance of its revenue bonds.
<br />
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