Minutes 02/24/1981 - Laserfiche WebLink

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Februar? 24~ 1981 will provide an additional 30 months of funding to SPSA which will until such time as the bonds for the regional solid waste facility Manager recommends adoption." allow operations to continu are issued. The City John Hadfield, Chief~!]Engineer, Southeastern Public Service Authority, made a presenta~ ration relating to the contract that SPSA had negiotated with the U. S. Navy and explaining the desig~df~!~h~ipro~oSad regional solid waste facility by SPSA. On motion of Mr. Barnes and seconded by Mrs. Webb, the following resolution was adopted, and by the following vote: "A RESOLUTION CONTRACTING TO GUARANTEE FUNDS UP TO $508,000. TO THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA ON CERTAIN CONDITION; AUTHORIZING THE ISSU- ANCE OF $508,000. OF BONDS TO BE KNOWN AS GENERAL OBLIGATION BONDS FOR THE PURPOSE OF COMMUNITY SERVICES. WHEREAS, the cities of Franklin, Norfolk, Portsmouth, Suffolk, Virginia Beach and the counties of Isle of Wight and Southampton have heretofore created the Southeastern Public Service Authority of Virginia ("the Authority") pursuant to the provisions of the Virginia Water and Sewer Authorities Act, Chapter 28, Title 15.1, Code of Virginia, 1950, as amended, 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 and controlled regional projects within the meaning of Article VII, Section lO(a)(4) of the Constitution of Virginia; and WHEREAS, the Authority has heretofore issued its notes in the aggrigate principal amount of $1,931,000. for the purpose of providing funds for paying a part of the cost of planning and design of a garbage and refuse collection and disposal system; of which sum the City of Portsmouth guaranteed $326,000. pursuant to a Resolution adopted by the Council of the City of Portsmouth, Virginia, on March 14, 1978; and WHEREAS, said notes of the Authority mature on April 26, 1981, and the Authority has determined to provide for the issuance at this time of its notes in the aggregate principal amount of $3,010,000. for the purpose of providing funds for paying said notes at their maturity and for paying a part of the cost of planning and design of a garbage and refuse collection and disposal system; and WHEREAS, the Councils of the cities of Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach have determined that in order to enhance the marketability of said notes to be issued by the Authority on account of such garbage and refuse collection and disposal system, said Councils and Commissioners would require the power to contract obligations to provide payments over a period or periods of more than one (1) year to the Authority to guarantee the payment of all or any part of the principal of and the interest on notes issued from time to time by the Authority, which contract obligations would be excluded indebtedness within the m~aning of, and for the purposes of Article VII, Section lO(a)(4) of the Constitution of Virginia; and WHEREAS, the General Assembly of Virginia by Chapter 544 of the Acts of Ass~embly, 1977, authorized said local jurisdictions from time to time or at any time to contradt obligations to provide payments over a period or periods of more than one (1) year to the Authority to guarantee the payment of all or any part of the principal of and the interest on notes issued from time to time by the Authority on account of its garbage and refuse collection and disposal system and such contract obligations shall be an excluded indebtedness within the meaning of, and for the purposes of, Article VII, Section lO(a)(4) of the Constitution of Virginia; and WHEREAS, it is in the best interest of the City of Portsmouth to provide for a payment to the Authority to guarantee the payment of a part of the obligations of the Authority to be incurred by the issuance of said notes and in anticipation of the issuance of its revenue bonds; and WHEREAS, the City of Portsmouth has determined to contract an obligation to provide a payment to the Authority not earlier than thirty (30) months from the date hereof to guarantee the payment of $508,000. of the obligations to be incurred by the Authority by the issuance of said notes and in anticipation of the issuance of its Revenue Bonds, such contract obligations to be effective at such time as the contract obligations have been incurred by the cities of Franklin, Norfolk, Portsmouth, Suffolk, and Virginia. Beach to provide payments to the Authority in the amounts of $36,000.,$1,305,O00., $508,000., $218,O00. and $943,000., respectively. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. That the City of Portsmouth hereby contracts to pay the Authority $508,000. no earlier than thirty (30) months from the date hereof to guarantee the payment of $508,000. of the principal amount of said notes to the Authority without the payment of any interest thereon, such payment to be an excluded indebtedness within the meaning of, and for the purposes of, Article VII, Section 10 (a)(4) of the Constitution of Virginia. 2. That the full faith and credit of the City of Portsmouth shall be, and hereby is, irrevocably pledged to the payment of such Co'ntract obligation of $508,000., or any part thereof that may become due, and a tax sufficient to provide for payment of such contract obligations shall be assessed, levied and collected at the same time and in the same manner as other taxes are assessed, levied and collected upon the property in the City of Portsmouth subject to taxation.