04-26-2010 Special Meeting SPECIAL MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF
SUPERVISORS HELD THE TWENTY -SIX DAY OF APRIL IN THE
YEAR TWO THOUSAND AND TEN
PRESENT: Phillip A. Bradshaw, Chairman
Thomas J. Wright, III, Vice- Chairman
Al Casteen
Stan D. Clark
JoAnn W. Hall
Also Attending: A. Paul Burton, Interim County Attorney
W. Douglas Caskey, County Administrator
Carey Mills Storm, Clerk
Chairman Bradshaw called the meeting to order at 6:00 p.m.
Supervisor Hall delivered the invocation.
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The Pledge of Allegiance was conducted.
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Chairman Bradshaw called for Approval of the Agenda.
Interim County Attorney Burton offered the following amendments to
the agenda: Under the County Attorney's Report, add authorization to
execute a change order for the Smithfield Fire Station; under the County
Attorney's Report, add authorization to execute a Resolution of the Board of
Supervisors of Isle of Wight County (The "County ") Authorizing the
Guaranty by the County of the Timely Payment of a Portion of Principal of
and Interest on Certain Guaranteed Subordinated Revenue Bonds and Senior
Subordinated Revenue Bonds Issued by the Southeastern Public Service
Authority of Virginia; under the County Attorney's report, add Procurement
Act change, entity authorized to do business in Virginia. Section 2.2- 4311.2;
and under the County Attorney's report, add two (2) closed meeting items.
Supervisor Wright moved that the agenda be adopted, as amended.
The motion was adopted by a vote of (5 -0) with Supervisors Bradshaw,
Casteen, Clark, Hall and Wright voting in favor of the motion and no
Supervisors voting against the motion.
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Chairman Bradshaw called for a public hearing on the 2010 -2011 Isle
of Wight County Schools' Operating Budget.
Chairman Bradshaw called for persons to speak in favor of or in
opposition to the Budget.
Mary Tyler, spoke on behalf of her children who attend Smithfield
High School, Westside Elementary School and Hardy Elementary School.
She remarked that she had moved to the County for its beauty, wide -open
spaces and the school system, which offered the best value and best
education to be found in the metro area. She stated that State funding
reductions make it even more important for the Board to fund the schools'
budget.
David Goodrich, Chairman, School Board, remarked on the need for
the School Board and Board of Supervisors to continue to work together in
order to meet the needs of the County's children. He urged the Board to full
fund the School Board's budget as presented. He advised that the School
Board, when it conducted its public hearing on the budget, only heard
demands that a strong education opportunity for all children continue to be
provided in the County.
Angela Anderson spoke in favor of the programs offered in the County
by the school system, which have made a difference for her son, who has
benefitted from a 504 Plan. She advised that two (2) counselors are needed
at Windsor High School.
Donna Spivey, 40102 Carrsville Highway, spoke on behalf of her
children who attend Carrsville Elementary School and Windsor Middle
School, requested that Board fund the School Board budget as presented
which will provide children in the County the best level of education that can
be afforded.
Melvin Atkinson, 13199 Poor House Road, spoke on behalf of his
children at Windsor Elementary School and Windsor Middle School,
recommended that the Board of Supervisors work closer together in the
future with the School Board and begin earlier in the budget process. He
urged the Board to adopt the School Board budget as presented and look at
ways that the schools and the County can work together to eliminate
duplication if at all possible.
Sharon Hart, Newport District, remarked that there are many areas in
the budget that can be cut without hurting quality of education. She
recommended that the County and School Board work together to consolidate
duplicate services, such as the Public Information Officer. She requested that
the Board request the School Board to make additional cuts to its budget,
where possible.
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Stephanie Bailey, President of the Isle of Wight Education Association,
requested that the Board support education and adopt the School Board
budget as presented.
Thomas Finderson, Sugar Hill Road, remarked that the closure of
International Paper results in a loss of 25% of the County's real estate
revenues, or an increase in the tax rate of $.52 to $.65. He commented that
approximately one -half of the reduction in revenue from the closure of
International Paper could be made up by sharing services with the Schools
with respect to legal services, facility and transportation maintenance, Human
Resources, Information Technology, finance, public information and
legislative liaison services. He stated if the School Board does not agree with
shared services, he would recommend going to the General Assembly and
requesting the Board's authority to consolidate government and School
services based on the extraordinary loss of local and State revenues. He
stated that the Windsor Middle School could be closed as there is sufficient
room in the Windsor High School to support those middle school students
with the expectation being that a middle or high school in the Windsor area
will be built in the next five (5) years due to the increase of students as a
result of the Intermodal Park.
Ed Easter, 12224 Hideaway Lane, stated it is critical that the school
system be funded and that all schools have the necessary teachers that are
properly trained and educated.
Herb DeGroft, School Board member, recognized teaching staff and
their support staff for performing an excellent job educating students over the
years in the County. He stated that teacher pay in the County is competitive
across the Hampton Roads region and he commended the Board for
adequately funding past budgets. He advised that the MGT of America
Efficiency Study conducted in 2006 found that the County had the second
highest administrative costs per student. He commented that a County
internal auditor could identify efficiencies that are being overlooked.
Chairman Bradshaw closed the public hearing and called for comments
from the Board.
Chairman Bradshaw advised that, pursuant to State law, the Board must
wait seven (7) days following the public hearing before taking action on the
Budget.
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Chairman Bradshaw called for Special Presentations /Appearances.
David Simons, Superintendent, Western Tidewater Regional Jail
Authority, advised that the Jail, originally designed for 552 beds, is currently
housing 800 inmates. He advised that the County is financially responsible
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for 15% of the jail population. He advised that inmates are housed for the
Federal Government in an effort to keep the County's cost down. He advised
that the Jail's FY2010 -11 Operating and Capital Budget is in the amount of
$12,264,000 and the State has reduced its funding in an amount that is
equivalent to 13 Jail positions, or $730,000; a per diem reduction of
$340,000; and, a $1.1 million reduction in Federal inmate funding, which
represents a $2.8 million reduction from the State. He advised that the Jail
has the lowest operating cost of any jail in the region.
Supervisor Wright advised that due to increased inmate ratios, there
have been two (2) serious accidents recently at the Jail.
Supervisor Clark stated that the County has the obligation to ensure the
safety of the inmates, as well. He stated that he is already aware that the Jail
is understaffed and he requested Mr. Simons to let the Board know if
additional staff is needed.
Chairman Bradshaw advised that the State reduction in funding to the
Jail represents $.01 cent on the County's Real Estate rate. He stated that the
State is also reducing $3 million in funding to the Schools. He stated that the
over $5 million dollars has been lost in State revenue this year, which does
not include the $3 million dollars lost in revenues due to the decrease in
assessed values and the $1 to $1.5 million dollars lost in Machinery and
Tools revenue due to the closure of International Paper. He stated that this is
a very critical time.
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Chairman Bradshaw called for Old Business.
Chairman Bradshaw called for the Board's consideration of a
Resolution to Appropriate Funds to Support the Acquisition of Protective
Equipment by the Carrsville Volunteer Fire Department.
Supervisor Clark moved that the following Resolution be adopted:
RESOLUTION TO APPROPRIATE FUNDS TO SUPPORT THE
ACQUISITION OF PROTECTIVE EQUIPMENT BY THE CARRSVILLE
VOLUNTEER FIRE DEPARTMENT
WHEREAS, the Board of Supervisors of the County of Isle of Wight,
Virginia has agreed to provide $2,208 to be used as matching funds for a
grant to acquire protective clothing and equipment for the Carrsville
Volunteer Fire Department and;
WHEREAS, the Board of Supervisors of the County of Isle of Wight,
Virginia has also agreed to provide $6,140 to allow a full complement of
eighteen (18) sets of similar equipment;
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NOW, THEREFORE BE IT AND IT IS HEREBY RESOLVED by the Board
of Supervisors of the County of Isle of Wight, Virginia that eight thousand,
five hundred dollars ($8,500) be appropriated from the Undesignated Fund
Balance of the General Fund to the FY 2009 -10 Operating Budget of the
County of Isle of Wight, Virginia.
BE IT FURTHER RESOLVED that the County Administrator of the County
of Isle of Wight, Virginia is authorized to make the appropriate accounting
adjustments in the budget and to do all things necessary to give this
resolution effect.
The motion was adopted by a vote of (5 -0) with Supervisors Bradshaw,
Casteen, Clark, Hall and Wright voting in favor of the motion and no
Supervisors voting against the motion.
Chairman Bradshaw called for the Board's consideration of a Resolution to
Appropriate Funds from the Unappropriated Fund Balance to Support the
Hampton Roat1s Crime Line/Top Cop Program.
Supervisor Clark moved that the following Resolution be adopted:
RESOLUTION TO APPROPRIATE FUNDS FROM THE
UNAPPROPRIATED FUND BALANCE TO SUPPORT THE HAMPTON
ROADS CRIME LINE/TOP COP PROGRAM
WHEREAS, the Board of Supervisors of the County of Isle of Wight,
Virginia has approved a motion to provide $500 to support a Hampton Roads
Crime Lineffop Cop dinner;
NOW, THEREFORE BE IT AND IT IS HEREBY RESOLVED by the Board
of Supervisors of the County of Isle of Wight, Virginia that five hundred
dollars ($500) be appropriated from the Undesignated Fund Balance of the
General Fund to the FY 2009 -10 Operating Budget of the County of Isle of
Wight, Virginia and;
BE IT FURTHER RESOLVED that the County Administrator of the County
of Isle of Wight, Virginia is authorized to make the appropriate accounting
adjustments in the budget and to do all things necessary to give this
resolution effect.
The motion was adopted by a vote of (5 -0) with Supervisors Bradshaw,
Casteen, Clark, Hall and Wright voting in favor of the motion and no
Supervisors voting against the motion.
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Chairman Bradshaw called for discussion on 2010 -2011 Isle of Wight
County General Operating and Capital Budget.
Reck D. Reck, Director of Budget and Finance, advised that the budget
before the Board is balanced, which assumes a reduction of $650,000 to the
Schools. He advised that in an effort to balance the budget, he has assumed
that fund balance accounts could be utilized this year; that the Board would
approve an increase in water and sewer rates; approve an increase in rates for
inspections; and approve an increase to the County's vehicle license rates.
He stated that he has been working with the Town of Smithfield and staff as
it was brought to his attention that the County's contribution to E -911
program might be more than the County's share.
Chairman Bradshaw suggested that Mr. Reck contact Dean Lynch,
VACo regarding the Compensation Board.
Supervisor Casteen requested that Mr. Reck return percentage amounts
to the recaps.
Chairman Bradshaw suggested that Mr. Reck review the County's
financial model.
Chairman Bradshaw and Supervisor Wright recommended that funds
from the Undesignated Fund Balance or the Fund Balance not be used to
balance the budget.
Chairman Bradshaw directed Mr. Reck to contact Mr. Wrightson and
be prepared to present information regarding the water and sewer fees from
the consultant's report to the Board at its May 6, 2010 meeting.
Chairman Bradshaw requested Mr. Reck to poll other jurisdictions to
determine what they are charging with respect to vehicle licenses.
Chairman Bradshaw directed County Administrator Caskey and Mr.
Reck to speak with the Department Heads and advise the Board what services
are being impacted.
Chairman Bradshaw recommended that County Administrator
Caskey's recommendations be implemented and any concerns throughout the
year be considered on a case -by -case basis.
Supervisor Clark requested that Mr. Reck present his recommendations
to the Board for consideration.
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Chairman Bradshaw requested Mr. Reck to return to the Board with a
budget containing displays, graphs, a column reflecting a tax increase of a
couple pennies and a column containing recommended cuts.
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Chairman Bradshaw called for the County Attorney's report.
Interim County Attorney Burton presented a change order for the
Smithfield Fire Station for the Board's consideration.
Supervisor Casteen moved that the County Attorney's Office be
authorized to execute a change order for the Smithfield Fire Station. The
motion was adopted by a vote of (4 -1) with Supervisors Bradshaw, Casteen,
Clark and Hall voting in favor of the motion and Supervisor Wright voting
against the motion.
Interim County Attorney Burton presented a Resolution of the Board of
Supervisors of Isle of Wight County (The "County") Authorizing the
Guaranty by the County of the Timely Payment of a Portion of Principal of
and Interest on Certain Guaranteed Subordinated Revenue Bonds and Senior
Subordinated Revenue Bonds Issued by the Southeastern Public Service
Authority of Virginia for the Board's consideration.
Supervisor Clark moved that the following Resolution be adopted:
RESOLUTION OF THE BOARD OF SUPERVISORS OF ISLE OF
WIGHT COUNTY (THE "COUNTY ") AUTHORIZING THE GUARANTY
BY THE COUNTY OF THE TIMELY PAYMENT OF A PORTION OF
PRINCIPAL OF AND INTEREST ON CERTAIN GUARANTEED
SUBORDINATED REVENUE BONDS AND SENIOR SUBORDINATED
REVENUE BONDS ISSUED BY THE SOUTHEASTERN PUBLIC
SERVICE AUTHORITY OF VIRGINIA
WHEREAS, the Southeastern Public Service Authority of Virginia
( "SPSA ") was created pursuant to the Virginia Water and Sewer Authorities
Act by its member jurisdictions (the "Owner Communities "), which are the
Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia
Beach, and the Counties of Isle of Wight and Southampton;
WHEREAS, SPSA is currently indebted to the Virginia Resources
Authority ( "VRA ") in the amount of approximately $140.7 million on bonds,
consisting of guaranteed subordinated revenue bonds and senior subordinated
revenue bonds, issued to finance and refinance various capital expenditures
(collectively, the "SPSA Local Bonds "), including $71,985,000 in SPSA
Local Bonds (the "2009 SPSA Local Bonds ") purchased by VRA on June 17,
2009 to restructure and refund certain outstanding SPSA Local Bonds as well
as certain SPSA bonds not held by VRA;
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WHEREAS, SPSA has entered into a purchase and sale agreement with
Wheelabrator Technologies, Inc. ( "Wheelabrator ") in connection with the
potential sale (the "WTE Sale ") of SPSA's RDF Plant and Power Plant
(collectively, the "WTE Facilities ");
WHEREAS, a portion of the proceeds of the WTE Sale are expected to
be applied to the prepayment of a portion of the SPSA Local Bonds;
WHEREAS, Section 6.1(b) of the Financing Agreement entered into by
VRA and SPSA in connection with the 2009 SPSA Local Bonds (the
"Financing Agreement") provides that SPSA may not sell, exchange, lease
(as lessor), pledge, encumber, cease to operate, enter into a management
agreement to operate or otherwise dispose of or alienate in whole or in part
either the Disposal System (including the RDF Plant) or the Power Plant
System (including the SPSA Power Plant, all as defined in the Financing
Agreement) without the prior written consent of VRA subject to certain
limited exceptions not pertinent to this Resolution;
WHEREAS, as a condition to VRA's consent to the WTE Sale, VRA
has required that the timely payment of principal of and interest on the SPSA
Local Bonds remaining after the WTE Sale (the "Remaining SPSA Local
Bonds ") be severally guaranteed by a moral obligation pledge of the County
and the general obligation pledge of the other Owner Communities;
WHEREAS, the terms of such guarantees are set forth in a Guaranty
Agreement between the Owner Communities, U.S. Bank National
Association, as trustee (the "Trustee ") and SPSA (the "Guaranty
Agreement "), the form of which has been presented to this meeting;
WHEREAS, the Board of Supervisors of the County (the "Board ") has
determined that it is advisable to pledge the full faith and credit of the County
to severally guaranty the timely payment of a portion of the principal of and
interest on the Remaining SPSA Local Bonds pursuant to the Guaranty
Agreement; and
WHEREAS, a public hearing on the guaranty of the County has been
held after notice was published in accordance with the requirements of
Section 15.2 -2606 of the Code of Virginia of 1950, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF ISLE OF WIGHT COUNTY, VIRGINIA THAT:
1. Authorization of Guaranty. The Board hereby determines that it
is advisable and in the best interest of the County to severally guaranty the
timely payment of a portion of the principal of and interest on the Remaining
SPSA Local Bonds, subject to the conditions outlined in Section 3 below, in
the maximum amount of $2,000,000 pursuant to the Guaranty Agreement;
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provided, however, the principal amount of the Remaining SPSA Local
Bonds shall not exceed $50,000,000.
2. Pledge of Full Faith and Credit. The full faith and credit of the
County are hereby irrevocably pledged for the payment when due of any
amounts payable by the County under the Guaranty Agreement. Unless other
funds are lawfully available and appropriated for the timely payment of
amounts due by the County under the Guaranty Agreement, the Board shall
levy and collect an annual ad valorem tax, over and above all other taxes
authorized or limited by law and without limitation as to rate or amount, on
all locally taxable property in the County sufficient to pay when due any
amounts due under the Guaranty Agreement.
3. Conditions to Guaranty. The guaranty authorized in Section 1
above is expressly conditioned upon the following:
(a) Timely participation by VRA with SPSA, prior to the WTE
Sale closing, in seeking a closing agreement with the Internal Revenue
Service to protect the existing tax status of the Remaining SPSA Local
Bonds and all other SPSA indebtedness not retired by the WTE Sale;
(b) Timely participation by VRA with SPSA, prior to the WTE
Sale closing, in requesting an allocation of volume cap in such amount
as is required to preserve the tax status of the interest on the Remaining
SPSA Local Bonds and all other SPSA indebtedness not retired by the
WTE Sale;
(c) Unanimous approval and execution by all Owner
Communities of the Guaranty Agreement;
(d) Release of Chesapeake and Norfolk from their existing
guaranties of Wachovia Bank, National Association debt under that
certain Guaranty Agreement among SPSA, Chesapeake and Norfolk
dated May 15,2 009 (the "Wachovia Guaranty ") and concurrent
termination of the Wachovia Guaranty Agreement;
(e) Release of the County, Franklin, Portsmouth, Suffolk and
Isle of Wight from their existing guaranties of the 2009 SPSA Local
Bonds under that certain Guaranty Agreement among SPSA, U.S. Bank
National Association, the County, Franklin, Portsmouth, Suffolk and
Isle of Wight dated June 1, 2009 (the "2009 VRA Guaranty
Agreement ") and concurrent termination of the 2009 VRA Guaranty
Agreement;
(f) Application of the proceeds from the WTE Sale to pay off
and satisfy all amounts owed by SPSA to Virginia Beach (the "VB
Repayment ") under that certain Forbearance Agreement among SPSA
and Virginia Beach dated as of May 15, 2009 (the "Forbearance
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Agreement") and the concurrent termination of the Forbearance
Agreement; and
(g) Application of the proceeds from the WTE Sale remaining
after the VB Repayment exclusively to pay down existing indebtedness
of SPSA, including the SPSA Local Bonds.
4. Approval of Guaranty Agreement. The Guaranty Agreement, the
form of which has been presented to this meeting, is hereby approved, and
the County Administrator of the County (the "County Administrator ") and
the Chairman of the Board (the "Chairman "), or either of them, are
authorized and directed to execute and deliver the Guaranty Agreement with
such completions, omissions, insertions and changes as may be approved by
the County Administrator and the Chairman, or either of them, such
execution and delivery to conclusively evidence such approval.
5. Approval of Reimbursement Agreement. There has been
presented to the Board the form of a Reimbursement Agreement (the
"Reimbursement Agreement ") between SPSA and the Owner Communities
under which SPSA has agreed to reimburse the County for any amounts paid
under the Guaranty Agreement on the terms set forth thereon. The
Reimbursement Agreement is hereby approved, and the County
Administrator and the Chairman, or either of them, are authorized and
directed to execute and deliver the Reimbursement Agreement with such
completions, omissions, insertions and changes as may be approved by the
County Administrator and the Chairman, or either of them, such execution
and delivery to conclusively evidence such approval.
6. Further Actions. The County Administrator, the Chairman and
such officers and agents of the County as either of them may designate are
authorized and directed to take such further action as they deem necessary
regarding the execution and delivery of the Guaranty Agreement and
Reimbursement Agreement, and all such action previously taken by such
officers and agents are ratified and confirmed.
7. Effective Date. This resolution shall take effect immediately.
The motion was adopted by a vote of (5 -0) with Supervisors Bradshaw,
Casteen, Clark, Hall and Wright voting in favor of the motion and no
Supervisors voting against the motion.
Interim County Attorney Burton advised that the General Assembly has
adopted a major change to require that all businesses, under Section 2.2-
4311.1 of the Code of Virginia must produce evidence that they are licensed
to do business in the State of Virginia either as a domestic or foreign
corporation; otherwise, the contract can be voided.
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Interim County Attorney Burton presented a proposed Isle of Wight
County Budget Calendar for the Board's information.
Interim County Attorney Burton advised that he had two (2) items to
discuss with the Board later during the closed meeting.
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Chairman Bradshaw called for New Business.
There was no new business offered for discussion by the Board.
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Interim County Attorney Burton requested a closed meeting pursuant to
Section 2.2- 3711.A.7 of the
Interim County Attorney Burton requested a closed meeting pursuant to
Section 2.2- 3711.A.7 of the Freedom of Information Act concerning
consultation with legal counsel requiring the provision of legal advice
pertaining to International Paper and under Section 2.2- 3711.7 concerning
consultation with legal counsel requiring the provision of legal advice
pertaining to the Smithfield Fire Department.
Supervisor Clark moved that the Board enter the closed meeting for the
reasons stated by the County Attorney. The motion was adopted by a vote of
(5 -0) with Supervisors Bradshaw, Casteen, Clark, Hall and Wright voting in
favor of the motion and no Supervisors voting against the motion.
Supervisor Wright moved that the Board return to open meeting. The
motion was adopted by a vote of (5 -0) with Supervisors Bradshaw, Casteen,
Clark, Hall and Wright voting in favor of the motion and no Supervisors
voting against the motion.
Supervisor Wright moved that the Board adopt the following
Resolution
CERTIFICATION OF CLOSED MEETING
WHEREAS, the Board of Supervisors has convened a closed meeting on
this date pursuant to an affirmative recorded vote and in accordance with the
provisions of the Virginia Freedom of Information Act; and,
WHEREAS, Section 2.2- 3712.D of the Code of Virginia requires a
certification by this Board of Supervisors that such closed meeting was
conducted in conformity with Virginia law;
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NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors
hereby certifies that, to the best of each member's knowledge, (i) only public
business matters lawfully exempted from open meeting requirements by
Virginia law were discussed in the closed meeting to which this certification
resolution applies, and (ii) only such public business matters as were identified
in the motion convening the closed meeting were heard, discussed or
considered by the Board of Supervisors.
VOTE
AYES: Bradshaw, Casteen, Clark, Hall and Wright
NAYS: 0
ABSENT DURING VOTE: 0
ABSENT DURING MEETING: 0
There was no action taken following the closed meeting.
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At 8:05 p.m., Supervisor Hall moved that the Board adjourn its
meeting. The motion was adopted by a vote of (5 -0) with Supervisors
Bradshaw, Clark, Casteen, Hall and Wright voting in favor of the motion, and
no Supervisors voting against the motion.
ip A. Bradshaw, Chairman
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ll.4.. .. L.
Carey , lis Stor , Clerk
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