City Council

SHOWN LIVE ON NEWPORT NEWS TELEVISION COX CHANNEL 48 VERIZON CHANNEL 19 www.nnva.gov AGENDA NEWPORT NEWS CITY COUNCIL REGULAR CITY COUNCIL MEETING MARCH 8, 2016 City Council Chambers 7:00 p.m. A. Call to Order B. Invocation • Pastor Fred Michaux, City Life Church C. Pledge of Allegiance to the Flag of the United States of America D. Presentations - None E. Public Hearings F. Consent Agenda 1. Minutes of the Work Session of February 23, 2016 2. Minutes of the Special Meeting with the Newport News School Board of February 23, 2016 3. Minutes of the Special Meeting of February 23, 2016 4. Minutes of the Regular Meeting of February 23, 2016 G. Other City Council Actions 1. 1 of 3: Resolution Amending Resolution No. 12729-14, by Adding a New Paragraph to Provide Flexibility by Authorizing the City Manager to Determine Whether to Secure Bonds with a Debt Service Reserve Fund (DSRF) at the Time of Issuance and Sale of the Bonds 2. 2 of 3: Resolution Amending Resolution No. 12725-14, by Adding a New Paragraph to Provide Flexibility, by Authorizing the City Manager to Determine Whether to Secure Bonds with a Debt Service Reserve Fund  (DSRF) at the Time of Issuance and Sale of the Bonds 3. 3 of 3: Resolution Amending Resolution No. 11347-07, to Clarify the Language Related to the Debt Service Reserve Fund (DSRF), Updates the Investment Securities Definition, Changes the DSRF Valuation and the Valuation of the Various Funds and Accounts from Quarterly to Semi- Annual 4. Resolution Establishing a Waterworks Department Fund Financial Policy 5. Resolution Authorizing the City Manager to Execute All Contracts and Agreements with CSXT, The U.S. Army Corp of Engineers, and Any Other Regulatory Agency to Facilitate the Completion of the Atkinson Boulevard Project H. Appropriations I. Citizen Comments on Matters Germane to the Business of City Council J. *New Business and Councilmember Comments 1. City Manager 2. City Attorney 3. City Clerk 4. Scott 5. Vick 6. Woodbury 7. Bateman 8. Cherry 9. Coleman 10. Price K. Adjourn *THE BUSINESS PORTION OF THE MEETING WILL BE CONCLUDED NO LATER THAN 10:00 P.M. TO ALLOW PERSONS TO ADDRESS CITY COUNCIL UNDER "CITIZEN COMMENTS ON MATTERS GERMANE TO THE BUSINESS OF CITY COUNCIL." A. Call to Order B. Invocation – Pastor Fred Michaux, City Life Church C. Pledge of Allegiance to the Flag of the United States of America D. Presentations E. Public Hearings 1. None Advertised F. Consent Agenda 1. Minutes of the Work Session of February 23, 2016 ACTION: N/A BACKGROUND: N/A FISCAL IMPACT: N/A ATTACHMENTS: Description Minutes of the Work Session of February 23, 2016 F. Consent Agenda 2. Minutes of the Special Meeting with the Newport News School Board of February 23, 2016 ACTION: N/A BACKGROUND: N/A FISCAL IMPACT: N/A ATTACHMENTS: Description Minutes of the Special Meeting with the Newport News School Board of February 23, 2016 F. Consent Agenda 3. Minutes of the Special Meeting of February 23, 2016 ACTION: N/A BACKGROUND: N/A FISCAL IMPACT: N/A ATTACHMENTS: Description Minutes of the Special Meeting of February 23, 2016 F. Consent Agenda 4. Minutes of the Regular Meeting of February 23, 2016 ACTION: N/A BACKGROUND: N/A FISCAL IMPACT: N/A ATTACHMENTS: Description Minutes of the Regular Meeting of February 23, 2016 G. Other City Council Actions 1. 1 of 3: Resolution Amending Resolution No. 12729-14, by Adding a New Paragraph to Provide Flexibility by Authorizing the City Manager to Determine Whether to Secure Bonds with a Debt Service Reserve Fund (DSRF) at the Time of Issuance and Sale of the Bonds ACTION: A REQUEST TO APPROVE A RESOLUTION AMENDING RESOLUTION NO. 12729-14, BY ADDING A NEW PARAGRAPH (c) TO SECTION 8 OF THE SUPPLEMENTAL RESOLUTION, TO PROVIDE FLEXIBILITY BY AUTHORIZING THE CITY MANAGER TO DETERMINE WHETHER TO SECURE BONDS WITH A DEBT SERVICE RESERVE FUND (DSRF) AT THE TIME OF ISSUANCE AND SALE OF THE BONDS. BACKGROUND: In October 2014, City Council approved Resolution No. 12729-14, which authorized refunding of Waterworks' 2007 Water Revenue Bonds. The Resolution requires that the refunded bonds be secured through a Debt Service Reserve Fund (DSRF). The City's financial advisor, Public Financial Management (PFM) has recommended that an amendment to the Resolution No. 12729-14 be brought before City Council. This amendment would provide the City the flexibility to determine at the time of sale, whether to use a DSRF to secure the bonds. The City Manager recommends approval. FISCAL IMPACT: N/A ATTACHMENTS: Description CM Memo re Water Bonds Amdmnt to 12729-14 sdm14164 Reso Amending Resolution No. 12729-14 sdm14164 RESOLUTION NO. _______________ RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AMENDING RESOLUTION NO. 12729-14 ADOPTED ON OCTOBER 28, 2014, ENTITLED “RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED FORTY MILLION DOLLARS ($40,000,000) AGGREGATE PRINCIPAL AMOUNT OF WATER REVENUE REFUNDING BONDS, OF CITY OF NEWPORT NEWS, VIRGINIA, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND AND REDEEM CERTAIN OUTSTANDING WATER REVENUE BONDS OF THE CITY; AUTHORIZING THE ISSUANCE AND APPROVING THE SALE OF SUCH REFUNDING BONDS AT COMPETITIVE OR NEGOTIATED SALE AND DELEGATING TO THE CITY MANAGER CERTAIN POWERS WITH RESPECT THERETO; AUTHORIZING THE CITY MANAGER TO FIX THE MATURITIES, INTEREST RATES AND OTHER DETAILS OF SUCH REFUNDING BONDS; APPROVING THE FORM OF SUCH REFUNDING BONDS; APPOINTING THE REGISTRAR AND PAYING AGENT FOR SUCH REFUNDING BONDS; APPOINTING THE TRUSTEE AS ESCROW AGENT FOR THE REFUNDED BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT FOR EACH SERIES OF SUCH REFUNDING BONDS; AUTHORIZING THE DESIGNATION OF THE REFUNDED BONDS FOR REDEMPTION; AND MAKING CERTAIN FINDINGS AND DETERMINATIONS AND OTHERWISE PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF SUCH REFUNDING BONDS”. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA: SECTION 1. Findings and Determinations. It is hereby found and determined as follows: (a) On October 28, 2014, the Council of the City adopted Resolution No. 12729-14 (hereinafter the “Supplemental Resolution”), entitled “RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED FORTY MILLION DOLLARS ($40,000,000) AGGREGATE PRINCIPAL AMOUNT OF WATER REVENUE REFUNDING BONDS, OF CITY OF NEWPORT NEWS, VIRGINIA, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND AND REDEEM CERTAIN OUTSTANDING WATER REVENUE BONDS OF THE CITY; AUTHORIZING THE ISSUANCE AND APPROVING THE SALE OF SUCH REFUNDING BONDS AT COMPETITIVE OR NEGOTIATED SALE AND DELEGATING TO THE CITY MANAGER CERTAIN POWERS WITH RESPECT THERETO; AUTHORIZING THE CITY MANAGER TO FIX THE MATURITIES, INTEREST RATES AND OTHER DETAILS OF SUCH REFUNDING BONDS; APPROVING THE FORM OF SUCH REFUNDING BONDS; APPOINTING THE REGISTRAR AND PAYING AGENT FOR SUCH REFUNDING BONDS; APPOINTING THE TRUSTEE AS ESCROW AGENT FOR THE REFUNDED -1- 2601121.1 038896 RSIND BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT FOR EACH SERIES OF SUCH REFUNDING BONDS; AUTHORIZING THE DESIGNATION OF THE REFUNDED BONDS FOR REDEMPTION; AND MAKING CERTAIN FINDINGS AND DETERMINATIONS AND OTHERWISE PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF SUCH REFUNDING BONDS”. (b) The Supplemental Resolution supplements the Bond Resolution of the Council of the City adopted on January 23, 2007, as previously amended and supplemented (the “Bond Resolution”) entitled “RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AUTHORIZING THE ISSUANCE OF WATER REVENUE BONDS OF THE CITY OF NEWPORT NEWS, VIRGINIA, AND PROVIDING FOR THE SECURITY OF THE HOLDERS THEREOF”. (c) Section 13(c) of the Supplemental Resolution provides that “Prior to the issuance of the Refunding Bonds, the provisions of this Supplemental Resolution may be amended in whole or in part by a Supplemental Resolution adopted by the Council of the City without the consent of the Trustee, which shall be fully effective in accordance with its terms upon the filing with the Trustee of a copy thereof certified by the City Clerk or an Authorized Officer of the City.” (d) As of the date of adoption of this Resolution, the Refunding Bonds authorized by the Supplemental Resolution have not been issued by the City. SECTION 2. Amendments to Resolution No. 12729-14. (a) Section 8 of the Supplemental Resolution shall be amended by adding a new paragraph (c) thereto which shall read as follows: “(c) The City Manager, acting with the advice of the City’s financial advisor, shall determine at the time of sale of the Refunding Bonds whether the Refunding Bonds shall be secured by a Debt Service Reserve Fund. In the event that the Refunding Bonds are not secured by a Debt Service Reserve Fund, the Debt Service Reserve Requirement with respect to the Refunding Bonds for purposes of the Bond Resolution shall be $0. Notwithstanding anything in the Bond Resolution to the contrary, in the event that the Refunding Bonds are not secured by a Debt Service Reserve Fund, the Refunding Bonds shall not be secured by, or benefit from, any amounts now or hereafter deposited in the Debt Service Reserve Fund established under the Bond Resolution.” (b) Clause (a) of Section 10 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “(a) an amount, if any, or surety bond or insurance policy, if any, shall be deposited in the Debt Service Reserve Fund, if any, established for the Refunding Bonds, sufficient to ensure that there is on deposit in the Debt Service Reserve Fund an amount equal to the Debt Service Reserve Requirement, if any, on the Refunding Bonds.” -2- 2601121.1 038896 RSIND  (c) Section 11 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “SECTION 11 . Establishment of a Separate Account in Debt Service Reserve Fund. Pursuant to Section 5.6 of the Bond Resolution, there may be established a separate account in the Debt Service Reserve Fund for the Refunding Bonds to be designated “Reserve Account”. Contemporaneously with the issuance of the Refunding Bonds there may be deposited into the Debt Service Reserve Fund and credited to the Reserve Account for the sole benefit of the holders of the Refunding Bonds an amount (or surety bond or insurance policy) sufficient to ensure that there is on deposit in such Fund an amount equal to the Debt Service Reserve Requirement on the Refunding Bonds.” (d) Paragraph (b) of Section 13 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “(b) The Refunding Bonds are hereby found, determined and declared to constitute and to be “Bonds” within the meaning of the quoted words as defined and used in the Bond Resolution. The Refunding Bonds shall be entitled to the benefits, security and protection of the Bond Resolution, equally and proportionately with any other Bonds hereafter issued thereunder; shall be payable from the Revenues of the System on a parity with all Bonds hereafter issued under the Bond Resolution; shall rank pari passu with all Bonds hereafter issued under the Bond Resolution; and shall be equally and ratably secured with all Bonds hereafter issued under the Bond Resolution by a prior and paramount lien and charge on the Revenues, without priority or distinction by reason of series, number, date, date of sale, date of issuance, date of execution and authentication or date of delivery, all as is more fully set forth in the Bond Resolution. Notwithstanding anything in this Supplemental Resolution or in the Bond Resolution to the contrary, the Refunding Bonds shall not be secured by or benefit from any Debt Service Reserve Fund established under the Bond Resolution in the event that the City determines that the Debt Service Reserve Requirement for the Refunding Bonds shall be $0 as provided in Section 8 of this Supplemental Resolution. It is hereby further found, determined and declared that no default exists in the payment of the principal of or interest and premium, if any, on any Bond issued under the Bond Resolution and that all mandatory redemptions, if any, of Bonds required to have been made under the terms of the Bond Resolution or any Supplemental Resolution have been made.” SECTION 3. Filing of this Supplemental Resolution with Circuit Court. The City Clerk be and hereby is authorized and directed to file a copy of this Supplemental Resolution, certified by the City Clerk to be a true and correct copy thereof, with the Circuit Court of the City of Newport News, Virginia. SECTION 4. Effectiveness of Supplemental Resolution. This Supplemental Resolution shall be effective from and after March 8, 2016, the same being the date of the adoption of this Supplemental Resolution by the Council of the City. -3- 2601121.1 038896 RSIND G. Other City Council Actions 2. 2 of 3: Resolution Amending Resolution No. 12725-14, by Adding a New Paragraph to Provide Flexibility, by Authorizing the City Manager to Determine Whether to Secure Bonds with a Debt Service Reserve Fund (DSRF) at the Time of Issuance and Sale of the Bonds ACTION: A REQUEST TO APPROVE A RESOLUTION AMENDING RESOLUTION NO. 12725-14, BY ADDING A NEW PARAGRAPH (a)(iii) TO SECTION 8(a) OF THE SUPPLEMENTAL RESOLUTION, TO PROVIDE FLEXIBILITY BY AUTHORIZING THE CITY MANAGER TO DETERMINE WHETHER TO SECURE BONDS WITH A DEBT SERVICE RESERVE FUND (DSRF) AT THE TIME OF ISSUANCE AND SALE OF THE BONDS. BACKGROUND: Resolution 12725-14 also approved in October 2014, authorized the sale of new money Water Revenue Bonds and required that the Bonds be secured with a DSRF. Amending this Resolution will also provide the City the flexibility to determine at the time of issuance and sale, whether to use a DSRF to secure the bonds. The City Manager recommends approval. FISCAL IMPACT: N/A ATTACHMENTS: Description sdm14166 Amending Resolution No. 12725-14 sdm14166 RESOLUTION NO. _______________ RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AMENDING RESOLUTION NO. 12725-14 ADOPTED ON OCTOBER 28, 2014, ENTITLED “RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED THIRTY-ONE MILLION DOLLARS ($31,000,000) AGGREGATE PRINCIPAL AMOUNT OF WATER REVENUE BONDS, OF CITY OF NEWPORT NEWS, VIRGINIA, FOR THE PURPOSE OF FINANCING THE COSTS OF EXTENSIONS, ADDITIONS AND CAPITAL IMPROVEMENTS TO, OR THE RENEWAL AND REPLACEMENT OF CAPITAL ASSETS OF, OR PURCHASING AND INSTALLING NEW EQUIPMENT FOR, THE WATER SYSTEM OF THE CITY, AND ACQUISITION OF PROPERTY IN CONNECTION THEREWITH; AUTHORIZING THE ISSUANCE AND APPROVING THE SALE OF SUCH BONDS OR AN EQUAL PRINCIPAL AMOUNT OF WATER REVENUE BOND ANTICIPATION NOTES OF THE CITY AT COMPETITIVE OR NEGOTIATED SALE AND DELEGATING TO THE CITY MANAGER CERTAIN POWERS WITH RESPECT THERETO; AUTHORIZING THE CITY MANAGER TO FIX THE MATURITIES, INTEREST RATES AND OTHER DETAILS OF SUCH BONDS; APPROVING THE FORM OF SUCH BONDS; APPOINTING THE REGISTRAR AND PAYING AGENT FOR SUCH BONDS; MAKING CERTAIN FINDINGS AND DETERMINATIONS AND OTHERWISE PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF SUCH BONDS; AND AUTHORIZING THE REIMBURSEMENT FROM THE PROCEEDS OF SUCH BONDS OF EXPENDITURES TO BE MADE BY THE CITY IN ADVANCE OF THE ISSUANCE AND RECEIPT OF THE PROCEEDS OF SUCH BONDS”. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA: SECTION 1. Findings and Determinations. It is hereby found and determined as follows: (a) On October 28, 2014, the Council of the City adopted Resolution No. 12725-14 (hereinafter the “Supplemental Resolution”), entitled “RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED THIRTY-ONE MILLION DOLLARS ($31,000,000) AGGREGATE PRINCIPAL AMOUNT OF WATER REVENUE BONDS, OF CITY OF NEWPORT NEWS, VIRGINIA, FOR THE PURPOSE OF FINANCING THE COSTS OF EXTENSIONS, ADDITIONS AND CAPITAL IMPROVEMENTS TO, OR THE RENEWAL AND REPLACEMENT OF CAPITAL ASSETS OF, OR PURCHASING AND INSTALLING NEW EQUIPMENT FOR, THE WATER SYSTEM OF THE CITY, AND ACQUISITION OF PROPERTY IN -1- 2601139.2 038896 RSIND CONNECTION THEREWITH; AUTHORIZING THE ISSUANCE AND APPROVING THE SALE OF SUCH BONDS OR AN EQUAL PRINCIPAL AMOUNT OF WATER REVENUE BOND ANTICIPATION NOTES OF THE CITY AT COMPETITIVE OR NEGOTIATED SALE AND DELEGATING TO THE CITY MANAGER CERTAIN POWERS WITH RESPECT THERETO; AUTHORIZING THE CITY MANAGER TO FIX THE MATURITIES, INTEREST RATES AND OTHER DETAILS OF SUCH BONDS; APPROVING THE FORM OF SUCH BONDS; APPOINTING THE REGISTRAR AND PAYING AGENT FOR SUCH BONDS; MAKING CERTAIN FINDINGS AND DETERMINATIONS AND OTHERWISE PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF SUCH BONDS; AND AUTHORIZING THE REIMBURSEMENT FROM THE PROCEEDS OF SUCH BONDS OF EXPENDITURES TO BE MADE BY THE CITY IN ADVANCE OF THE ISSUANCE AND RECEIPT OF THE PROCEEDS OF SUCH BONDS”. (b) The Supplemental Resolution supplements the Bond Resolution of the Council of the City adopted on January 23, 2007, as previously amended and supplemented (the “Bond Resolution”) entitled “RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AUTHORIZING THE ISSUANCE OF WATER REVENUE BONDS OF THE CITY OF NEWPORT NEWS, VIRGINIA, AND PROVIDING FOR THE SECURITY OF THE HOLDERS THEREOF”. (c) Section 12(c) of the Supplemental Resolution provides that “Prior to the issuance of the Additional Bonds, the provisions of this Supplemental Resolution may be amended in whole or in part by a Supplemental Resolution adopted by the Council of the City without the consent of the Trustee, which shall be fully effective in accordance with its terms upon the filing with the Trustee of a copy thereof certified by the City Clerk or an Authorized Officer of the City.” (d) As of the date of adoption of this Resolution, the Additional Bonds authorized by the Supplemental Resolution have not been issued by the City. SECTION 2. Amendments to Resolution No. 12725-14. (a) Section 8(a) of the Supplemental Resolution shall be amended by adding a new paragraph (a) (iii) thereto which shall read as follows: “(iii) The City Manager, acting with the advice of the City’s financial advisor, shall determine at the time of sale of the Additional Bonds whether the Additional Bonds shall be secured by a Debt Service Reserve Fund. In the event that the Additional Bonds are not secured by a Debt Service Reserve Fund, the Debt Service Reserve Requirement with respect to the Additional Bonds for purposes of the Bond Resolution shall be $0. Notwithstanding anything in the Bond Resolution to the contrary, in the event that the Additional Bonds are not secured by a Debt Service Reserve Fund, the Additional Bonds shall not be secured by, or benefit from, any amounts now or hereafter deposited in the Debt Service Reserve Fund established under the Bond Resolution.” -2- 2601139.2 038896 RSIND  (b) Clause (a) of Section 9 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “(a) an amount, if any, or surety bond or insurance policy, if any, shall be deposited in the Debt Service Reserve Fund, if any, established for the Additional Bonds, sufficient to ensure that there is on deposit in the Debt Service Reserve Fund an amount equal to the Debt Service Reserve Requirement, if any, on the Additional Bonds.” (c) Section 10 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “SECTION 10 . Establishment of a Separate Account in Debt Service Reserve Fund. Pursuant to Section 5.6 of the Bond Resolution, there may be established a separate account in the Debt Service Reserve Fund for the Additional Bonds to be designated “Reserve Account”. Contemporaneously with the issuance of the Additional Bonds there may be deposited into the Debt Service Reserve Fund and credited to the Reserve Account for the sole benefit of the holders of the Additional Bonds an amount (or surety bond or insurance policy) sufficient to ensure that there is on deposit in such Fund an amount equal to the Debt Service Reserve Requirement on the Additional Bonds.” (d) Paragraph (b) of Section 12 of the Supplemental Resolution shall be amended and restated in its entirety to read as follows: “(b) The Additional Bonds are hereby found, determined and declared to constitute and to be “Bonds” within the meaning of the quoted words as defined and used in the Bond Resolution. The Additional Bonds shall be entitled to the benefits, security and protection of the Bond Resolution, equally and proportionately with any other Bonds hereafter issued thereunder; shall be payable from the Revenues of the System on a parity with all Bonds hereafter issued under the Bond Resolution; shall rank pari passu with all Bonds hereafter issued under the Bond Resolution; and shall be equally and ratably secured with all Bonds hereafter issued under the Bond Resolution by a prior and paramount lien and charge on the Revenues, without priority or distinction by reason of series, number, date, date of sale, date of issuance, date of execution and authentication or date of delivery, all as is more fully set forth in the Bond Resolution. Notwithstanding anything in this Supplemental Resolution or in the Bond Resolution to the contrary, the Additional Bonds shall not be secured by or benefit from any Debt Service Reserve Fund established under the Bond Resolution in the event that the City determines that the Debt Service Reserve Requirement for the Additional Bonds shall be $0 as provided in Section 8 of this Supplemental Resolution. It is hereby further found, determined and declared that no default exists in the payment of the principal of or interest and premium, if any, on any Bond issued under the Bond Resolution and that all mandatory redemptions, if any, of Bonds required to have been made under the terms of the Bond Resolution or any Supplemental Resolution have been made.” -3- 2601139.2 038896 RSIND  SECTION 3. Filing of this Supplemental Resolution with Circuit Court. The City Clerk be and hereby is authorized and directed to file a copy of this Supplemental Resolution, certified by the City Clerk to be a true and correct copy thereof, with the Circuit Court of the City of Newport News, Virginia. SECTION 4. Effectiveness of Supplemental Resolution. This Supplemental Resolution shall be effective from and after March 8, 2016, the same being the date of the adoption of this Supplemental Resolution by the Council of the City. -4- 2601139.2 038896 RSIND G. Other City Council Actions 3. 3 of 3: Resolution Amending Resolution No. 11347-07, to Clarify the Language Related to the Debt Service Reserve Fund (DSRF), Updates the Investment Securities Definition, Changes the DSRF Valuation and the Valuation of the Various Funds and Accounts from Quarterly to Semi-Annual ACTION: A REQUEST TO APPROVE A RESOLUTION AMENDING RESOLUTION NO. 11347-07, TO CLARIFY THE LANGUAGE RELATED TO THE DEBT SERVICE RESERVE FUND (DSRF), UPDATES THE INVESTMENT SECURITIES DEFINITION, AND CHANGES THE DSRF VALUATION AND THE VALUATION OF THE VARIOUS FUNDS AND ACCOUNTS FROM QUARTERLY TO SEMI-ANNUAL. BACKGROUND: As a result of the two prior companion items amendments, the 2007 Master Water Revenue Bond Resolution No. 11347-07 must also be amended. The amendments will clarify the language related to DSRF's securing the various series of Bonds. The City's financial advisor PFM has also recommended updating the investment securities definition to conform to changes to the Virginia State Non-Arbitrage Program (SNAP). In addition, PFM is recommending changes to the DSRF's valuation and the valuation of the various funds and accounts from quarterly to semi-annual. The City Manager recommends approval. FISCAL IMPACT: N/A ATTACHMENTS: Description sdm14165 Amending Resolution No. 11347-07 sdm14165 RESOLUTION NO. _______________ RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AMENDING RESOLUTION NO. 11347-07 ADOPTED ON JANUARY 23, 2007, ENTITLED “RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AUTHORIZING THE ISSUANCE OF WATER REVENUE BONDS OF THE CITY OF NEWPORT NEWS, VIRGINIA, AND PROVIDING FOR THE SECURITY OF THE HOLDERS THEREOF”. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA: SECTION 1. Findings and Determinations. It is hereby found and determined as follows: (a) On January 23, 2007, the Council of the City adopted Resolution No. 11347-07 (hereinafter, the “Bond Resolution”), entitled “RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, AUTHORIZING THE ISSUANCE OF WATER REVENUE BONDS OF THE CITY OF NEWPORT NEWS, VIRGINIA, AND PROVIDING FOR THE SECURITY OF THE HOLDERS THEREOF”. (b) Sections 8.1(2), 8.1(6) and 8.1(7) of the Bond Resolution provide that certain amendments may be made to the Bond Resolution by a Supplemental Resolution adopted by the Council of the City without the consent of the Trustee or the Bondholders and upon the delivery of a Bond Counsel Opinion as required by Section 8.4(c) of the Bond Resolution. This Resolution shall constitute a Supplemental Resolution under and within the meaning of the Bond Resolution, adopted pursuant to Sections 8.1(2) and (7) of the Bond Resolution. (c) The amendments to the Bond Resolution set forth below shall not apply to the City’s Outstanding City of Newport News, Virginia Water Revenue Bonds, Series 2007 (the “Series 2007 Bonds”) and shall be applicable only to any Additional Bonds issued under the Bond Resolution after the date of adoption of this Resolution. SECTION 2. Amendments to Resolution No. 11347-07. (a) The definition of “Investment Securities” in Section 1.1 of Resolution No. 11347-07 is hereby amended to add a new clause (xi) as follows; provided, however, in no event shall Investment Securities described in clause (xi) below be used with respect to any monies held in any Fund or Account relating to, or providing for the payment of, or providing security for, the Series 2007 Bonds, including, without limitation, amounts in the Revenue Fund, unless -1- 2601143.2 038896 RSIND the bond insurer for the Series 2007 Bonds shall have consented in writing to such Investment Securities: “(xi) solely with respect to monies in the Construction Fund (excluding any Capitalized Interest Account), the Revenue Fund, the Renewal and Replacement Fund, the Debt Service Reserve Fund, and the Rate Stabilization Fund, any pooled investment fund organized in accordance with the Government Non-Arbitrage Investment Act (Code of Virginia, Title 2.2, Chapter 47).” (b) Paragraph (f) of Section 5.5 of the Bond Resolution shall be amended and restated in its entirety to read as follows: “(f) In the event that on any Interest Payment Date or Principal Payment Date there is a deficiency in the Debt Service Fund, the amount of such deficiency shall be made up from the following Funds and in the order of priority set forth below: (1) Debt Service Reserve Fund (such amounts to be applied solely to pay principal or interest on the applicable Series of Bonds secured thereby); (2) Revenue Fund; (3) Subordinate Obligations Fund; (4) Renewal and Replacement Fund; (5) Rate Stabilization Fund; and (6) Construction Fund.” (c) The last sentence of paragraph (a) of Section 5.6 of the Bond Resolution is hereby amended and restated to read as follows: “To the extent deposits to and withdrawals from the Debt Service Reserve Fund are required by this Bond Resolution, such deposits to and withdrawals from the Debt Service Reserve Fund shall be made to and from the respective accounts thereof solely to pay principal of or interest on the applicable Series of Bonds secured thereby.” (d) Paragraph (a) of Section 5.12 of the Bond Resolution shall be amended and restated to read as follows; provided, however, in no event shall the following apply with respect to any monies held in any Fund or Account relating to, or providing for the payment of, or providing security for, the Series 2007 Bonds, and such Series 2007 Bonds shall be governed by Paragraph (a) of Section 5.12 of the Bond Resolution in effect prior to the date of adoption of this Resolution): “(a) In computing the amount in any Fund or Account other than the Debt Service Reserve Fund, obligations purchased as an investment of Moneys therein shall be valued at the lower of cost or fair market value. Obligations purchased as an investment of moneys in the Debt Service Reserve Fund shall be valued at their cost, plus any accrued interest paid upon the purchase of such investments not yet received. The amounts in each Fund and Account created and established under this Bond Resolution shall be valued -2- 2601143.2 038896 RSIND  semiannually on the last day of the second and fourth fiscal quarter of each Fiscal Year and at such other times as shall be deemed to be necessary or appropriate by the Trustee or the City.” SECTION 3. Filing of this Supplemental Resolution with Circuit Court. The City Clerk be and hereby is authorized and directed to file a copy of this Supplemental Resolution, certified by the City Clerk to be a true and correct copy thereof, with the Circuit Court of the City of Newport News, Virginia. SECTION 4. Effectiveness of Supplemental Resolution. This Supplemental Resolution shall be effective from and after March 8, 2016, the same being the date of the adoption of this Supplemental Resolution by the Council of the City, subject to delivery to the Trustee of the Opinion of Bond Counsel required by Section 8.4(c) of the Bond Resolution. -3- 2601143.2 038896 RSIND G. Other City Council Actions 4. Resolution Establishing a Waterworks Department Fund Financial Policy ACTION: A REQUEST TO APPROVE A RESOLUTION ESTABLISHING THE WATERWORKS DEPARTMENT FUND FINANCIAL POLICY BACKGROUND: The Waterworks Department has maintained certain informal financial policies that encourages fiscal responsibility and prudence. The City's financial advisor, Public Financial Management (PFM) has recommended that the policies be formally adopted by City Council. PFM worked with Waterworks to update and strengthen its policies and have created seven (7) policies for the department to adhere to. The Policies are outlined in the attached City Manager's memo and the Resolution prepared by the City Attorney. The City Manager recommends approval. FISCAL IMPACT: N/A ATTACHMENTS: Description CM Memo re Establishing WW Fund Financial Policies sdm14168 Reso Establishing a Waterworks Dept Fund Financial Policy sdm14168 RESOLUTION NO. ____________________ A RESOLUTION OF THE COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, ESTABLISHING A WATERWORKS DEPARTMENT FUND FINANCIAL POLICY. WHEREAS, the Waterworks Department Fund operates as self-sufficient enterprise fund, distinct from the City’s General Fund, that maintains a separate bond rating and uses the revenues generated from the water rates fixed by City Council to pay for the cost of maintenance, extension, operation and administration of the waterworks system, the cost of insurance against loss by injury to persons or property, and any other costs or expense growing out of or appertaining to the waterworks system, including interest on bonds, and to pay all bonds issued on account of the waterworks system and to provide a fair and proper return; and WHEREAS, the City Manager has recommended that the City Council formally adopt certain financial policies related to the Waterworks Department Fund; and WHEREAS, after due consideration, the Council concurs with the City Manager’s recommendation. NOW, THEREFORE, BE IT RESOLVED: 1. That a Waterworks Department Fund Financial Policy is adopted as follows: WATERWORKS DEPARTMENT FUND FINANCIAL POLICY SECTION ONE. The Waterworks Department Fund will be self-supporting. SECTION TWO. The Waterworks Department Fund will maintain revenues available annually to pay debt service, net of transfers, of at least 1.20 times annual debt service. SECTION THREE. In order to cover emergencies and revenue shortfalls within the Waterworks Department Fund at the end of each fiscal year, the Waterworks Department Fund will maintain a Revenue Fund with unrestricted cash and short-term investments equal to a minimum of ninety (90) days of operating expenses and transfers. SECTION FOUR. The Waterworks Department Fund will maintain a Renewal and Replacement Fund, in accordance with its bond requirements, with a targeted balance equal to a minimum of 25% of the Waterworks Department average 5-year Capital Improvements Plan. SECTION FIVE. The Waterworks Department Fund will maintain a Rate Stabilization Fund, in accordance with its bond requirements, with a targeted balance equal to thirty (30) days of operating expenses and transfers. SECTION SIX. If the Waterworks Department Fund uses balances in the Revenue Fund, Renewal and Replacement Fund, or the Rate Stabilization Fund such that the respective fund(s) fall below the targeted balance, the City will develop a plan to replenish such funds to the targeted balance over a period not to exceed three (3) years. SECTION SEVEN. The Waterworks Department Fund will fund at least 25% of its 5-year Capital Improvements Plan in cash. 2. That this resolution shall be in effect on and after the date of its adoption, March 8, 2016. 2 G. Other City Council Actions 5. Resolution Authorizing the City Manager to Execute All Contracts and Agreements with CSXT, The U.S. Army Corps of Engineers, and Any Other Regulatory Agency to Facilitate the Completion of the Atkinson Boulevard Project ACTION: A REQUEST TO APPROVE A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CONTRACTS AND AGREEMENTS WITH CSXT, THE U.S. ARMY CORPS OF ENGINEERS, AND ANY OTHER REGULATORY AGENCY TO FACILITATE THE COMPLETION OF THE ATKINSON BOULEVARD PROJECT. BACKGROUND: The Atkinson Boulevard Project consists of a new four-lane divided roadway, including a 1,600 foot bridge, and will be a critical east/west connection between Warwick Boulevard and Jefferson Avenue. On November 22, 2011, City Council approved a Resolution granting authorization to the City Manager to execute all Agreements with the Virginia Department of Transportation (VDOT). It is also necessary to enter into agreements with CSXT, the U.S. Army Corps of Engineers and other agencies. The City Manager recommends approval. FISCAL IMPACT: N/A ATTACHMENTS: Description CM Memo re CM Executing Contracts for Atkinson Blvd sdm14167 Authorizing CM to Execute Docs for Atkinson Blvd H. Appropriations ACTION: A REQUEST FOR A MOTION OF CITY COUNCIL TO APPROVE AS A BLOCK THE FOLLOWING APPROPRIATIONS 1. None Submitted *I. Citizen Comments on Matters Germane to the Business of City Council J. New Business and Councilmember Comments City Manager City Attorney City Clerk Scott Vick Woodbury Bateman Cherry Coleman Price K. Adjourn *THE BUSINESS PORTION OF THE MEETING WILL BE CONCLUDED NO LATER THAN 10:00 P.M. TO ALLOW PERSONS TO ADDRESS CITY COUNCIL UNDER “CITIZEN COMMENTS ON MATTERS GERMANE TO THE BUSINESS OF CITY COUNCIL.”