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05-12-2011 Regular MeetingREGULAR MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD THE TWELFTH DAY OF MAY IN THE YEAR TWO THOUSAND AND ELEVEN PRESENT: Thomas J. Wright, III, Chairman Stan D. Clark, Vice - Chairman Al Casteen JoAnn W. Hall Kenneth M. Bunch Also Attending: A. Paul Burton, Interim County Attorney W. Douglas Caskey, County Administrator Carey Mills Storm, Clerk 1/ /1 Chairman Wright called the meeting to order at 6:00 p.m. Supervisor Clark delivered the invocation. The Pledge of Allegiance to the American Flag was conducted. Chairman Wright called for Approval of the Agenda. Interim County Attorney Burton offered the following amendment to the agenda: Under Special Presentations, add Richard Evans, Transportation Manager, Isle of Wight County Schools; under the County Attorney's report, add authorization for a public hearing at the Board's meeting of May 26, 2011 for an Ordinance to Amend and Reenact the Isle of Wight County Code by Amending and Reenacting Chapter 15. Taxation. Article II. Real Estate Taxes. Section 15 -6.2. Biennial General Reassessments of Real Estate; under the County Attorney's report, add Amendment No. 1 to the Benn's Grant Development Agreement; under the County Attorney's report, add an Amendment to the Statement of Agreement between the Virginia Department of Health and the Board of Supervisors for the operation of the Isle of Wight County Health Department; under the County Attorney's report, add authorization for a public hearing for the Appropriation Ordinance, Tax Rate Ordinance and Personal Property Tax Relief Ordinance; under the County Attorney's report, add one (1) closed meeting item; under the County Administrator's report, add consideration of a resolution entitled "Older Americans Month 2011"; under the County Administrator's report, add a position request by the Budget & Finance Director; under New Business, add a waiver of 90 -day hiring period to allow Sheriff Phelps to reinstate an employee; and, under Old Business, add one item regarding Charter Communications, per Supervisor Casteen. Supervisor Clark moved that the Board approve the agenda, as amended. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 1/ Chairman Wright called for Special Presentations /Appearances. Animal Control Officer Samantha Marvel introduced a dog currently available for adoption at the County's animal shelter. Joyelle Saunders, Executive Director of the Voices for Kids CASA Program, provided an annual update on the services provided by that non- profit organization which recruits and trains volunteers to advocate for children who have been abused and neglected. Becky Vererka, Hamtown Books of Smithfield, was the featured business under the Small Business Close Up. Richard Evans, Transportation Director, Isle of Wight County Schools, updated the Board on the condition of the School's existing bus fleet. He requested that the Board authorize the purchase of three (3) buses from the 2011 carryover funds. I/ Chairman Wright called for consideration of the Consent Agenda. A. Emergency Declaration Resolution Declaring a Local Emergency to Exist in Isle of Wight County, Virginia B. Safety and Training Update C. Isle of Wight County Policy Manual D. Section 8 Agency Review /SEMAP Audit E. State Redistricting Plans F. Western Tidewater Water Authority 2 G. Request for Proposal (RFP) for Consulting Services: Consultant for Isle of Wight County Group Health and Dental Insurance Services Resolution to Authorize the Solicitation of Proposals for an Experienced Insurance Consultant for Isle of Wight County Group Health and Dental Insurance Coverages H. Workers Compensation Coverage for the Sheriff's Auxiliary DeputiesNolunteers Resolution to Provide Workers Compensation Coverage to the Sheriff's Auxiliary Deputies/Volunteers I. Application for Grant Funds — Virginia Department of Environmental Quality (DEQ) Litter Prevention and Recycling Grant Resolution to Accept and Appropriate Grant Funds from the Virginia Department of Environmental Quality for the Virginia Litter Prevention and Recycling Grant J. Grant Award — Virginia Department of Criminal Justice Services (DCJS), Byrne Justice Assistance Grant Program (JAG) Resolution to Accept and Appropriate Byrne Justice Assistance Grant Funds from the Department of Criminal Justice Services K. Grant Application — Department of Criminal Justice Services (DCJS) School Resource Officer (SRO) Continuation Grant Program Resolution to Authorize the Submission of a Grant Application and to Accept and Appropriate Funds Received for the Continuation of the School Resource Officer Grant Program at the Windsor Middle School L. Proposed Change Order #2 to the Construction Contract for Caldwell Tank M. Proposed Change Order #8/Young Laine Courts Building and Renovation to the Sheriffs Department Building N. Fiscal Year 2010 -11 Monthly Financial Reports for County and Schools 3 O. Virginia Department of Transportation (VDOT) Limited Access Line BreakslSmithfield Volunteer Fire Department P. Quarterly Status of Engineering Projects Q. Litter Pick Up R. February 17, 2011 Regular Meeting Minutes S. March 3, 2011 Regular Meeting Minutes Supervisor Casteen moved Items (F), (G), (H) and (N) be removed from the Consent Agenda and the remaining items be approved. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Following a comment from Supervisor Casteen regarding the cost covered by the County, Supervisor Casteen moved that Item (F), Western Tidewater Water Authority, be accepted. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Following a question from Supervisor Canteen why staff is soliciting proposals when they have already determined that competitive sealed bidding is not a practicable means of selecting consulting services for group health and dental insurance, Michael W. Terry, Director of Budget and Finance, advised that staff is soliciting professional services, but not necessarily at the lowest bid. Supervisor Casteen moved that Item (G), Request for Proposal (RFP) for Consulting Services/Consultant for Isle of Wight County Group Health and Dental Insurance Services (Resolution to Authorize the Solicitation of Proposals for an Experienced Insurance Consultant for Isle of Wight County Group Health and Dental Insurance Coverages), accepted as presented. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Regarding Item (H), Workers Compensation Coverage for the Sheriff's Auxiliary DeputiesNolunteers (Resolution to Provide Workers Compensation Coverage to the Sheriff's Auxiliary DeputiesNolunteers), Supervisor Casteen inquired why Nationwide had dropped its coverage. Sheriff C. W. Phelps advised that his office was notified that effective April 26, 2011 the insurance company providing the workmen's compensation insurance was going to be suspended. He stated the assumption is a major claim caused this cease in service. 4 Supervisor Casteen moved that the Resolution to Provide Workers Compensation Coverage to the Sheriffs Auxiliary Deputies/Volunteers be adopted. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Regarding Item (N), Fiscal Year 2010 -11 Monthly Financial Reports for County and Schools, Supervisor Casteen noted that the year -to -date revenue report included in the Financial Reports and he moved that the financial reports be accepted. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. /I Chairman Wright called for Regional Reports. Supervisor Hall reported that the farm family of the year, business of the year and entrepreneur of the year were recognized by the Chamber at its luncheon last week. Supervisor Clark reported that the Hampton Roads Military and Federal Facilities Alliance had been successful in working with Congressman Forbes to block funding for the move of a carrier. Supervisor Casteen reported that only routine business matters were discussed at the most recent Social Services Board meeting. County Administrator Caskey reported that the Southeastern Public Service Authority (SPSA) Board of Directors will meet later this month to take action on SPSA's annual budget. Supervisor Hall reported that the Western Tidewater Regional Jail Authority is proceeding with capital projects and soliciting applications for its Jail Superintendent's position. /1 Chairman Wright called for Transportation Matters. Eddie P. Wrightson, Director of General Services, presented a Resolution of the Board of Supervisors of Isle of Wight County Requesting the Virginia Department of Transportation to Improve Poplar Drive and Add the Road to the Secondary System of State Highways for the Board's consideration. Supervisor Hall moved that the following Resolution be adopted: RESOLUTION OF THE BOARD OF SUPERVISORS OF ISLE OF WIGHT COUNTY REQUESTING THE VIRGINIA DEPARTMENT OF TRANSPORTATION TO IMPROVE POPLAR DRIVE AND ADD THE ROAD TO THE SECONDARY SYSTEM OF STATE HIGHWAYS WHEREAS, the street described below was established in 1960 and currently serves at least 3 families per mile; and WHEREAS, the Virginia Department of Transportation has deemed the County's current subdivision control ordinance meets all necessary requirements to qualify this county to recommend additions to the secondary system of State highways, pursuant to 33.1 -72.1, Code of Virginia, of 1950, as amended; and WHEREAS, after examining the ownership of all property abutting this street, the Board finds that speculative interest does not exist. NOW, THEREFORE, BE IT RESOLVED, the Board of Supervisors requests this street be added to the secondary system of State highways, pursuant to Section 33.1 -72.1 (D) of the Code of Virginia of 1950, as amended; Name of Subdivision: Rushmere Shores Name of Street: Poplar Drive From: Riverview Road To: Woodmere Avenue Guaranteed Right of Way Width: 50 feet Plat Recorded Date: Sept. 19, 1960 Plat Book 4, Page 118 Deed of Easement, Instrument Number 950001809 Book: 455 Page: 586 BE IT FURTHER RESOLVED, the Board guarantees a clear and unrestricted right -of -way, as described, and any necessary easements for cuts, fills and drainage; and BE IT FURTHER RESOLVED, the Board requests the Virginia Department of Transportation to improve said street to the prescribed minimum standards, funding said improvements pursuant to Section 33.1- 72.1 (C) of the Code of Virginia of 1950, as amended; and BE IT FURTHER RESOLVED, that a certified copy of this resolution be forwarded to the Virginia Department of Transportation. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Marie Bailey requested that Nike Park and Smiths Neck Roads be better maintained. She advised of a need for a longer turn lane and additional time to make a left-hand turn onto Route 258 from Route 10 at Rowland Equipment Company. /1 Chairman Wright called for Citizens Comments. Lanny Hinson, Preservation of Virginia, requested financial support to maintain the 1750 Isle of Wight Courthouse. Tom Gaskell, 6486 Dodge Lane, Zuni, made reference to the School's demographics study of 2008 which projected a decrease in student population at Windsor High School, Windsor Middle School and Windsor Elementary School. He stated a new Windsor Middle School facility is not a need at this time and should be delayed until funding can be set aside. He requested infrastructure problems at several of the County's schools be addressed. He spoke in opposition to the proposed tax increase. He asked Supervisor Bunch to abstain from voting on the bond resolutions which will be considered by the Board later in the meeting commenting that he is a former School Board member and appointed by a Board member now employed with the School system. Stephanie Bailey, Windsor Middle School Nurse, distributed information regarding education in Virginia. She stated room to grow is needed; expectations now are different and greater; social issues are different; and, 7th and 12th graders need to be in separate schools. She spoke in support of a new Windsor Middle School and she requested that the present facility be kept open until the new facility is complete. Joe Joyner, 31334 Walters Highway, expressed his support for Sheriff Phelps and Carrsville having fire and rescue services. Ed Easter, 12224 Hideaway Lane, advised that the purpose of the Redistricting Committee was solely to create a five (5) and seven (7) member district plan and not to make a recommendation to the Board as to which plan should be adopted, although members could make a recommendation on an individual basis. He clarified that the Committee had never voted on what member wanted or preferred a five (5) or seven (7) member district, as inaccurately reported in The Smithfield Times. Sharon Hart presented a letter from the Isle of Wight Citizens Association in opposition to the proposed coal fired power plant. She advised that the Association recommends the Board adopt a resolution of opposition and that it be sent to the Hampton Roads Planning District Commission, Hampton Roads Economic Development Partnership, Army Corps of Engineers and other permitting agencies concerning detrimental economic environmental impacts to the region. Albert Burckard, Carrollton Civic League, read a resolution adopted by that organization and spoke in opposition to the proposed coal fired power plant. Cheryl MacManus, Windsor Middle School parent, spoke in favor of a new Windsor Middle School facility which offers a transition period for students who are in need of a safe environment and updated technology. She stated that the cost to bring the current building up to code is almost as much as building a new facility; that grant money will not be available in the future; and, that a new school will be more expensive to build in the future. Marie Bailey commented on locked doors at school facilities. She recommended utilizing County residents to build a new Windsor Middle School. She asked the Board to fmd good uses for the land purchased at the entrance to the James River Bridge and in Rushmere. She advised that she now owns half of Bennett's Creek Marina and she is in need of many things, such as boat slips, to make it profitable. She spoke in opposition to the County raising its peddler's license from $60 to $500. She spoke in opposition to the Board voting favorably for a new Windsor Middle School because of the tax increase that will be necessary to fund its construction. She advised that she is campaigning for the Newport seat on the Board of Supervisors. 1/ Chairman Wright called for any Board comments. No comments were offered. Chairman Wright called for the County Attorney's report. Interim County Attorney Burton advised that the following items have been advertised for public hearing later in the agenda: A. Resolution Authorizing and Providing for the Issuance and Sale of General Obligation Public Improvement and Refunding Bonds and General Obligation Indebtedness, each of Isle of Wight County, Virginia, in an Aggregate Principal Amount not to Exceed $28,500,000, and Providing for the Form, Details and Payment Thereof and Providing for the Refunding of Certain General Obligation Bonds of the County. 8 B. Resolution Authorizing and Providing for the Issuance and Sale of Literary Loan Anticipation Notes in a Maximum Principal Amount not to Exceed $7,500,000 of Isle of Wight County, Virginia, and Providing for the Form, Details and Payment Thereof C. Resolution Authorizing and Providing for the Issuance and Sale of General Obligation School Bonds of Isle of Wight County, Virginia, in a Principal not to Exceed $7,500,000, and Providing for the Form, Details and Payment Thereof D. Resolution Authorizing the Filing by the School Board of Isle of Wight County, Virginia, of an Application to the Literary Loan Fund of the Commonwealth of Virginia for a Loan in an Approximate Amount of $7,500,000 E. Preliminary Official Statement and Bond Purchase Agreement Interim County Attorney Burton requested authorization to advertise an Ordinance to Amend and Reenact the Isle of Wight County Code by Amending and Reenacting Chapter 16.1. Water. Section 16.1 -9. Amounts - Generally for public hearing. Supervisor Clark moved that the County Attorney's office be authorized to advertise the Ordinance for public hearing at the Board's May 26, 2011 meeting. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton advised that Mr. Johnson has requested his year -to -year farm lease with the County be extended to a five (5) year period. He recommended that the Board continue with its year -to- year lease with Mr. Johnson. Chairman Wright requested Interim County Attorney Burton to make contact with the Carrsville Volunteer Fire Department in regards to its expressed concerns with certain boundary adjustments. Chairman Wright moved that Interim County Attorney Burton be directed to correspond with the Carrsville Volunteer Fire Department Chief with respect to that organization's concerns and that the County continue with a year -to -year lease agreement with Mr. Johnson. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton reviewed a map of the areas placed under the conservation easement of the Blackwater River and the proposed 9 uses for that property with the Board. He advised that placing these areas under a conservation easement will place restrictions on the use of that land. Assistant County Attorney Popovich briefed the Board regarding the County's purchase in 2010 of 2,500 acres of land along the Blackwater River at a purchase price of $3 million, half of which would be provided through grant funding which contains a restriction that the area along the water be preserved in as much of a pristine state as possible. He advised that this property currently holds a timber deed from the original seller who has chosen not to perform any timbering this year. He stated that the County will need to work with the timber rights owner regarding their schedule and location to be timbered so that proper safety precautions are taken with respect to the prevention of potential injury to the public. He stated the map represents a proposal for at least five (5) disturbance areas, five (5) put -in areas; an equine trail; and, numerous walking trails. Supervisor Clark moved that the map be accepted as presented and that staff be authorized to proceed with the finalization of the conservation easement. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton presented a letter of interest from Tristar Investors to enter into a lease agreement for use of the tower located at 19539 Poor House Road, which he recommends the Board deny as the current agreement does not end until 2025 and the company that the County has the current lease with has an automatic renewal option. He advised that the Procurement Act also requires that the lease be put out to bid. Chairman Wright moved that the request from Tristar Investors, Inc. regarding site 19539 Poor House Road be denied. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton presented a water system purchase agreement with C &P Isle of Wight Water Company, Inc. He stated in this agreement, the County is agreeing to purchase for $1.5 million, nine (9) water systems currently owned by C &P Isle of Wight Water Company, Inc. He recommended that the Board approve the agreement. Supervisor Casteen inquired how many customers would be involved with this purchase. Interim County Attorney Burton advised approximately 400 customers. Supervisor Clark moved that the Chairman be authorized to execute the Agreement on behalf of the Board. The motion was adopted by a vote of (4- 10 1) with Supervisors Bunch, Clark, Hall and Wright voting in favor of' the motion and Supervisor Casteen voting against the motion. Interim County Attorney Burton presented a revised Change Order 007 with Kenbridge Construction Company for the Young -Laine Courthouse correcting a mathematical error for the Board's consideration. Supervisor Casteen moved that the Board authorize the Chairman to execute on behalf of the Board the revised Change Order 007 correcting the mathematical error on Change Order 007. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney requested that authorization to advertise a public hearing for An Ordinance to Amend and Reenact the Isle of Wight County Code by Amending and Reenacting Chapter 15. Taxation. Article II. Real Estate Taxes. Section 15 -6.2. Biennial General Reassessments of Real Estate be deferred until later during Old Business. Interim County Attorney Burton presented Amendment No. 1 to the Benn's Grant Development Agreement for the Board's consideration. Chairman Wright moved that Amendment No. 1 to the Benn's Grant Development Agreement be approved. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton presented an Amendment to the Statement of Agreement between the Virginia Department of Health and the Board of Supervisors for the operation of the Isle of Wight County Health Department for the Board's consideration. Chairman Wright moved that the Amendment to the Statement of Agreement with the Health Department be approved. The motion was adopted by a vote of (5-Q) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton requested authorization to advertise for public hearing an Appropriation Ordinance, Tax Rate Ordinance and Personal Property Tax Relief Ordinance. Chairman Wright moved that the County Attorney's office be authorized to advertise the matters for public hearing at the Board's May 26, 2011 meeting. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 11 Interim County Attorney Burton advised that he had three (3) matters to discuss with the Board later during the closed meeting. 1/ Chairman Wright declared a recess. At 7:00 p.m., Chairman Wright called for a public hearing on the following: A. The application of Vincenzo LeBoffe and Michelle J. LeBoffe, owners, for a Conditional Use Permit on 2.91 acres of land located at 14425 Whippingham Parkway (Route 662) in the Newport Election District. The purpose of the application is to allow for an accessory apartment (garage) on the property. Richard Rudnicki, Planner, presented the application. Chairman Wright called for persons to speak in favor of or in opposition to the application. William Riddick, Attorney, advised that the applicant built his home in 2003 and the garage was built at the same time. He advised that the upstairs in the garage is now finished and he is requesting approval of the Conditional Use Permit. Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that the application be approved. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman Wright called for a public hearing on the following: B. An application to amend the boundary of the St. Luke's Historic District, generally located within one -half (1/2) to one (1) mile around the intersection of Brewer's Neck Boulevard (Route 258) and Berms Church Boulevard (Route 10), in the Newport and Windsor Election Districts. Jamie Oliver, Planner, represented the application. Chairman Wright called for persons to speak in favor of or in opposition to the application. 12 Bill Gill, Chairman, Church Council at Benns United Methodist Church, advised that the Church's preference is to not be included in the Historic District because being in the District does not offer the Church any specific protection and by being in the District, the Church is somewhat restricted. Marie Bailey stated that St. Lukes Church and Benn's Church need protection and preservation. William E. Laine, Board of Directors, St. Lukes Church, advised that St. Lukes Church would like to see Benn's Church remain in the historic district. He spoke in favor of amending the guidelines in order to make it easier to accomplish things and St. Lukes in currently in the process of conservation and preservation. Robert Firestone, Director of Operations at Sentara St. Lukes Campus, stated that Sentara is supportive of Map "E" in the Board's agenda because it best preserves the gateway into the County. Phillip A. Bradshaw, 31111 Colosse Road, spoke against the reduction in the historical district as presented. He recommended that the matter be postponed until interested parties that will be impacted have an opportunity to meet and discuss the matter further. Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that Alternate "D" be approved. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman Wright called for a public hearing on the following: C. An application to amend the Comprehensive Plan of Isle of Wight County, Virginia through the addition of the proposed Countywide Transportation Plan, which will be included as an appendix to the Comprehensive Plan, and which will also include minor revisions to the text of Chapter 5, Transportation, in support of the new Appendix document. Jamie Oliver, Planner, represented the application. Chairman Wright called for persons to speak in favor of or in opposition to the application. 13 Lorna Parkins, Michael Baker, Jr. Incorporated, briefed the Board on the Plan contents. Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that the application be approved. The motion was adopted by a vote of (5-0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman Wright called for a public hearing on the following: D. An Ordinance to Amend and Reenact the Isle of Wight County Code Chapter 7. Fire Protection. Article III. Fire Prevention. Section 7 -6. Fire Code Adoption. Section 7 -9. Enforcement of Fire Code, And Section 7 -11. Fire Code Appeals Board. Interim County Attorney Burton introduced the Ordinance amendment for the Board's consideration, advising that it has been properly advertised for public hearing. He recommended that the Board adopt the Ordinance. Chairman Wright called for persons to speak in favor of or in opposition to the application. No one appeared and spoke. Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that the following Ordinance be adopted: AN ORDINANCE TO AMEND AND REENACT THE ISLE OF WIGHT COUNTY CODE CHAPTER 7. FIRE PROTECTION. ARTICLE III. FIRE PREVENTION. SECTION 7 -6. FIRE CODE ADOPTION. SECTION 7 -9. ENFORCMENT OF FIRE CODE. AND SECTION 7 -11. FIRE CODE APPEALS BOARD. WHEREAS, the Board of Supervisors of Isle of Wight County, Virginia, is committed to ensuring the safety and security of its citizens and their property within Isle of Wight County; and WHEREAS, it is the intent of the Board of Supervisors to provide for such safety and security by enacting fire protection regulations that are effective in preventing loss of life or property and which can be effectively 14 enforced by either current county staff or with the assistance of the Virginia State Fire Marshall's Office; and WHEREAS, based upon recommendations made by the State Fire Marshall's Office certain minor revisions to the County's Fire Prevention Ordinance are required; NOW, THEREFORE, BE IT ORDAINED by the Isle of Wight County Board of Supervisors that Chapter 7. Fire Protection. Article III. Fire Prevention. Section 7 -6 of the Isle of Wight County Code be amended and reenacted as follows: Sec. 7 -6. Fire Code Adoption. Pursuant to the provisions of Section 27 -98 of the Code of Virginia (1950, as amended), those provisions contained within the Virginia Statewide Fire Prevention Code related to open burning, fire lanes and fireworks, in its current form and as amended in the future, is hereby adopted by Isle of Wight County, except as otherwise modified or amended in this Article, and the same is hereby incorporated fully by reference. Said adoption of those specific Virginia Statewide Fire Prevention Code provisions are made in accordance with Sections 15.2- 922.1, 15.2 -974 and 46.2 -1305 of the Code of Virginia (1950, as amended). AND BE IT FURTHER ORDAINED by the Isle of Wight County Board of Supervisors that Chapter 7. Fire Protection. Article III. Fire Prevention. Section 7 -9 of the Isle of Wight County Code be amended and reenacted as follows: Sec. 7-9. Enforcement. The Isle of Wight County Chief of Emergency Services or his designee is hereby appointed as Fire Code Official for purposes of this Chapter 7, Article III and shall be vested with the authority to enforce those provisions of the Virginia Statewide Fire Prevention Code, or such other more restrictive regulations, as the Isle of Wight County Board of Supervisors may deem appropriate pertaining to fires and other related laws and regulations including those laws prohibiting parking in fire lanes. AND BE IT FURTHER ORDAINED by the Isle of Wight County Board of Supervisors that Chapter 7. Fire Protection. Article III. Fire Prevention. Section 7 -11 of the Isle of Wight County Code be amended and reenacted as follows: Sec. 7 -11. Fire Code Appeals Board. The Fire Code Appeals Board is hereby established and shall be made up of those same members appointed by the Isle of Wight County Board of 15 Supervisors to act as members of the Board of Building Appeals. The Board shall be composed of at least five (5) members who meet the qualifications set out in the Statewide Fire Prevention Code. The members of the Fire Code Appeals Board shall be appointed by the Board of Supervisors to serve, at the pleasure of the Board of Supervisors, for four -year terms. The Fire Code Appeals Board shall hear appeals made by any person who has been cited for a violation and is aggrieved by any decision or interpretation of the Fire Code Official made under the provisions of the Statewide Fire Prevention Code. Such appeals shall be submitted and heard in accordance with the provisions of the Statewide Fire Prevention Code. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman Wright called for a public hearing on the following: E. Resolution to Approve the FY2012 -16 Capital Improvement Plan. Interim County Attorney Burton advised that the Capital Improvements Plan (CIP) has been properly advertised and recommended for adoption by the Planning Commission. He recommended that the Board approve the M. Chairman Wright called for persons to speak in favor of or in opposition to the application. Phillip A. Bradshaw, Chief Financial Officer, Isle of Wight County Public Schools, spoke in support of the CIP. Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that the following Resolution be adopted: RESOLUTION TO APPROVE THE FY2012 — 2016 CAPITAL IMPROVEMENT PLAN WHEREAS, the FY2012 -2016 Capital Improvement Plan (CIP) has been reviewed by the CIP Subcommittee and formally approved by the Isle of Wight County Planning Commission; and, WHEREAS, the plan has been properly advertised in local media in accordance with the Code of Virginia and a public hearing conducted by the Board of Supervisors. NOW THEREFORE BE IT RESOLVED by the Board of Supervisors of the County of Isle of Wight, Virginia that the projects listed in the proposed FY2012 — 2016 Capital Improvement Plan be approved for further 16 consideration by the Board of Supervisors it develops its FY2011 -2012 Capital Budget. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. Chairman Wright called for a public hearing on the following: F. Proposed Issuance of General Obligation Bonds of Isle of Wight County: Resolution Authorizing and Providing for the Issuance and Sale of General Obligation Public Improvement and Refunding Bonds and General Obligation Indebtedness, each of Isle of Wight County, Virginia, in an Aggregate Principal Amount not to Exceed $28,500,000, and Providing for the Form, Details and Payment Thereof and Providing for the Refunding of Certain General Obligation Bonds of the County. Interim County Attorney Burton advised that the matter has been properly advertised and he recommends the Board approve the Resolution. Jimmy Sanderson, Davenport & Company, advised that the resolution pertains to funding of projects approved in the Capital Improvements Plan last year, in addition to the Windsor Middle School project. He advised that the Plan's finance includes the Qualified School Construction Bonds which are allocated by the State at 0% loans repayable over 14 years. He stated he is recommending that the Board pursue a Liberated Loan Anticipation Note at a subsidized rate through the State. He stated there is approximately $6.6 million in utility debt to be financed and the plan is to do a three (3) year bond anticipation note. He advised that prior to the Windsor Middle School project being funded, it was a $.02 cents equivalent tax impact associated with the CIP and adding the Windsor Middle School project will increase that amount to $.06; however, the plan developed will not require any impact to the County until 2014 and again in 2015 and 2017. Chairman Wright called for persons to speak in favor of or in opposition to the application. Ms. Cusic, Windsor Middle School Teacher, spoke in favor of a new Windsor Middle School being built. Ed Easter, 12224 Hideaway Lane, spoke in favor of a new Windsor Middle School being built. 17 built. Marie Bailey spoke in favor of a new Windsor Middle School being Thomas Finderson spoke in favor of a new Windsor Middle School being built. Ben Rideout, 32003 Walters Highway, stated communication between the Board and the public is lacking. He recommended that the matter be postponed until the public can be better informed. Joe Joyner, 31334 Walters Highway, expressed concern with the amount of debt being incurred by the County. He stated that the existing Windsor Middle School should have been maintained by the Schools all along. Carlos Bailey, 28436 Holly Run Drive, spoke against a tax increase to pay for a new Windsor Middle School. He requested that the Board postpone the building of a new Windsor Middle School for an additional 24 months. Tom Gaskill, 6486 Dodge Lane, spoke against building a new Windsor Middle School. He stated that there is currently room in the existing building to provide a quality education to the children now, but he is not in favor of obligating the County to funds it does not have to spend. He stated that the students need to be moved to a location that has space available. He stated that the demographics reflect the number of children in a family to be dropping. He stated the need for a school should only be addressed when the County has the funding. Phillip A. Bradshaw, Chief Financial Officer, Isle of Wight County Public Schools, stated this is a window of opportunity to pay zero interest on a debt. He recalled that the real estate tax rate has dropped to $.52 from $.77 twelve (12) years ago. He stated due to financial constraints last year of the schools, the Superintendent requested staff to review the feasibility of closing the Windsor Middle School. He stated that the School Board created a committee charged with conducting a study of the Windsor Middle School which revealed that construction of a new school would only cost $1 million more versus repairing the old school. Susan Geotz, Principal, Windsor Middle School, stated moving some of the student from the Windsor Middle School to the Windsor High would adversely affect the student educational process. She stated that she would prefer that the students stay where they until the new facility can be built and then transition over. Peter Andreu, Isle of Wight County Public Schools, advised Chairman Wright that the existing gym at the Windsor Middle School is structurally sound and the School's intention is to utilize it by cutting off a portion of the surrounding building and demolishing the remainder of the existing building. 18 Chairman Wright closed the public hearing and called for comments from the Board. Supervisor Clark moved that the following Resolution be adopted and that the Chairman be authorized to sign it on behalf of the Board: RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT AND REFUNDING BONDS AND GENERAL OBLIGATION INDEBTEDNESS, EACH OF ISLE OF WIGHT COUNTY, VIRGINIA, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $28,500,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR THE REFUNDING OF CERTAIN GENERAL OBLIGATION BONDS OF THE COUNTY WHEREAS, pursuant to Section 10(b) of Article VII of the Constitution of Virginia and Section 15.2 -2639 (formerly Section 15.1- 227.40) of the Code of Virginia of 1950, as amended, Isle of Wight County, Virginia (the "County "), has elected by affirmative vote of the qualified voters of the County, to be treated as a city for the purpose of issuing its bonds; WHEREAS, on February 13, 2003, the County issued its $18,140,000 General Obligation Public Improvement and Refunding Bonds, Series of 2003 (the "Series 2003 Bonds "); WHEREAS, on May 18, 2004, the County issued its $27,870,000 General Obligation School and Refunding Bonds, Series of 2004 (the "Series 2004 Bonds "); WHEREAS, the County administration and Davenport & Company LLC, the County's financial advisor (the "Financial Advisor "), have recommended to the County Board of Supervisors (the "Board ") that the County authorize the refunding of all or a portion of the outstanding Series 2003 Bonds and Series 2004 Bonds (the "Refunded Bonds "), and the issuance and sale of one or more series of general obligation refunding bonds, in order to restructure the repayment schedule of the Refunded Bonds to improve the County's anticipated budgetary and cash flow requirements; WHEREAS, the County administration, in consultation with the Financial Advisor, has recommended to the Board that the County authorize, issue and sell one or more series of general obligation public improvement and refunding bonds or notes in a principal amount not to exceed $28,500,000 (the "Bonds ") in order to (a) refund the Refunded Bonds and (b) 19 finance the acquisition, construction and equipping of various public improvement projects, including without limitation, facilities and equipment related to administrative, utility, public works, public school, economic and community development, parks and recreation, and public safety purposes and uses (the "Bond Project "); WHEREAS, the County administration, in consultation with the Financial Advisor, has recommended to the Board that the County authorize, issue and sell one or more series of general obligation notes of the County in a principal amount not to exceed $7,250,000 (the "Utilities Notes" and, together with the Bonds, the "Obligations ") to provide funds to finance the acquisition, construction and equipping of various utility and public works uses (the "Utilities Project" and, together with the Bond Project, the "Project "); BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF ISLE OF WIGHT COUNTY, VIRGINIA: Authorization of Obligations. It is determined to be necessary and expedient for the County to finance the Project, to borrow money for such purpose and to issue the County's general obligation public improvement and refunding bonds or notes and general obligation notes therefor. Pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, there are authorized to be issued general obligation public improvement and refunding bonds or notes and general obligation notes of the County in an aggregate principal amount not to exceed $28,500,000 to provide funds to finance, in part, the cost of the Project. Issuance of Obligations. There shall be issued and sold, pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, general obligation public improvement and refunding bonds or notes and general obligation notes of the County in the maximum aggregate principal amount of $28,500,000 to (a) provide funds to finance the Project (b) provide funds to refund the Refunded Bonds and (c) pay the costs incurred in connection with issuing the Obligations and refunding the Refunded Bonds. Details of Obligations. (a) The Utilities Notes may be issued in one or more series, shall be designated "General Obligation Utilities Notes, Series 2011," or such other designation as shall be determined by the County Administrator, shall be in registered form, shall be dated such date as determined by the County Administrator, shall be in denominations of $5,000 and integral multiples thereof, and shall be numbered R -1 upward. Subject to Section 9, the Utilities Notes shall be issued and sold on terms as shall be satisfactory to the County Administrator; provided, however, that the Utilities Notes (i) shall have a principal amount not to exceed $7,250,000, (ii) shall have a "true or 20 "Canadian" interest cost not to exceed 5.00% (taking into account any original issue discount or premium), (iii) shall be sold at a price not less than 97% of the original aggregate principal amount thereof and (iv) shall mature no later than December 31, 2016. Interest on the Utilities Notes shall be payable semi - annually on dates determined by the County Administrator to be in the best interest of the County. Principal on the Utilities Notes shall be payable at maturity. (b) The Bonds may be issued in one or more series and shall be designated "General Obligation Public Improvement and Refunding Bonds, Series 2011," or such other designation as shall be determined by the County Administrator, shall be in registered form, shall be dated such date as determined by the County Administrator, shall be in denominations of $5,000 and integral multiples thereof, and shall be numbered R -1 upward. Subject to Section 9, the issuance and sale of the Bonds are authorized on terms as shall be satisfactory to the County Administrator; provided, however, that the Bonds shall (a) have a "true" or "Canadian" interest cost not to exceed 6.506% (taking into account any original issue discount or premium), (b) be sold at a price not less than 97% of the original aggregate principal amount thereof (excluding any original issue discount) and (c) shall mature or be subject to mandatory sinking fund redemptions in annual installments ending no later than December 31, 2032. Principal of the Bonds shall be payable annually and interest on the Bonds shall be payable semiannually on dates determined by the County Administrator. Each Obligation shall bear interest at such rate as shall be determined at the time of sale, calculated on the basis of a 360 -day year of twelve 30-day months. Principal and premium, if any, shall be payable to the registered owners upon surrender of Obligations as they become due at the office of the Registrar (as hereinafter defined). Interest shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Registrar on a date prior to each interest payment date that shall be determined by the County Administrator (the "Record Date "). Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. Initially, one Obligation certificate for each maturity of each series of the Obligations shall be issued to and registered in the name of The Depository Trust Company, New York, New York ( "DTC "), or its nominee. The County has heretofore entered into a Blanket Letter of Representations relating to a book -entry system to be maintained by DTC with respect to the Obligations. "Securities Depository" shall mean DTC or any other securities depository for the Obligations appointed pursuant to this Section. In the event that (a) the Securities Depository determines not to continue to act as the securities depository for the Obligations by giving notice to the Registrar, and the County discharges its responsibilities hereunder, or (b) the County in its sole discretion determines (i) that beneficial owners of 21 Obligations shall be able to obtain certificated Obligations or (ii) to select a new Securities Depository, then its chief financial officer shall, at the direction of the County, attempt to locate another qualified securities depository to serve as Securities Depository and authenticate and deliver certificated Obligations to the new Securities Depository or its nominee, or authenticate and deliver certificated Obligations to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Section 6; provided, however, that such form shall provide for interest on the Obligations to be payable (A) from the date of the Obligations if they are authenticated prior to the first interest payment date, or (B) otherwise from the interest payment date that is or immediately precedes the date on which the Obligations are authenticated (unless payment of interest thereon is in default, in which case interest on such Obligations shall be payable from the date to which interest has been paid). In delivering certificated Obligations, the chief financial officer shall be entitled to rely on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository participants acting on behalf of beneficial owners. Such certificated Obligations will then be registrable, transferable and exchangeable as set forth in Section 8. So long as there is a Securities Depository for the Obligations (1) it or its nominee shall be the registered owner of the Obligations, (2) notwithstanding anything to the contrary in this Resolution, determinations of persons entitled to payment of principal, premium, if any, and interest, transfers of ownership and exchanges and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (3) the Registrar and the County shall not be responsible or liable for maintaining, supervising or reviewing the records maintained by the Securities Depository, its participants or persons acting through such participants, (4) references in this Resolution to registered owners of the Obligations shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Obligations and (5) in the event of any inconsistency between the provisions of this Resolution and the provisions of the above - referenced Blanket Letter of Representations such provisions of the Blanket Letter of Representations, except to the extent set forth in this paragraph and the next preceding paragraph, shall control. Redemption Provisions. The Obligations may be subject to redemption prior to maturity at the option of the County on or after dates, if any, determined by the County Administrator, in whole or in part (in $5,000 integrals) at any time, at a redemption price not to exceed 102% of the principal amount of Obligations to be redeemed, together with any interest accrued and unpaid to the redemption date. Any term bonds may be subject to mandatory sinking fund redemption upon terms determined by the County Administrator. 22 If less than all of a series of the Obligations are called for redemption, the maturities of the Obligations to be redeemed shall be selected by the County's chief financial officer in such manner as the chief financial officer may determine to be in the best interest of the County. If less than all the Obligations of a particular maturity are called for redemption, the Obligations within such maturity to be redeemed shall be selected by the Securities Depository pursuant to its rules and procedures or, if the book -entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Obligation to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Obligations for redemption, each Obligation shall be considered as representing that number of Obligations that is obtained by dividing the principal amount of such Obligation by $5,000. The County shall cause notice of the call for redemption identifying the Obligations or portions thereof to be redeemed to be sent by facsimile or electronic transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner of the Obligations. The County shall not be responsible for sending notice of redemption to anyone other than DTC or another qualified Securities Depository or its nominee unless no qualified Securities Depository is the registered owner of the Obligations. If no qualified Securities Depository is the registered owner of the Obligations, notice of redemption shall be sent to the registered owners of the Obligations. If a portion of an Obligation is called for redemption, a new Obligation in principal amount equal to the unredeemed portion thereof will be issued to the registered owner upon the surrender thereof. In the case of an optional redemption, the notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, no later than the redemption date or (2) the County retains the right to rescind such notice on or prior to the scheduled redemption date (in either case, a "Conditional Redemption "), and such notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded as described herein. Any Conditional Redemption may be rescinded at any time. The County shall give prompt notice of such rescission to the affected holders of such Obligations. Any Obligations subject to Conditional Redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not constitute an event of default. Further, in the case of a Conditional Redemption, the failure of the County to make funds available on or before the redemption date shall not constitute an event of default, and the County shall give immediate notice to all organizations registered with the Securities and Exchange Commission as securities depositories or the affected holders of such Obligations that the redemption did not occur and that the Obligations called for redemption and not so paid remain outstanding. Execution and Authentication. Each Obligation shall be signed by the manual or facsimile signature of the Chairman or Vice Chairman of the Board, shall be countersigned by the manual or facsimile signature of the 23 Clerk or Deputy Clerk of the Board and the Board's seal shall be affixed thereto or a facsimile thereof printed thereon; provided, however, that if both of such signatures are facsimiles, no Obligation shall be valid until it has been authenticated by the manual signature of an authorized officer or employee of the Registrar and the date of authentication noted thereon. Forms of Obligations. The Utilities Notes shall be in substantially the form of Exhibit A attached hereto and the Bonds shall be in substantially the form of Exhibit B attached hereto, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officers signing the Obligations, whose approval shall be evidenced conclusively by the execution and delivery of the Obligations. Pledge of Full Faith and Credit. The full faith and credit of the County are irrevocably pledged for the payment of principal of and premium, if any, and interest on the Obligations. Unless other funds are lawfully available and appropriated for timely payment of the Obligations, 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 the principal of and premium, if any, and interest on the Obligations. Registration, Transfer and Owners of Obligations. The County Administrator is hereby authorized and directed to appoint a qualified bank or trust company as paying agent and registrar for the Obligations (the "Registrar "). The Registrar shall maintain registration books for the registration and registration of transfers of Obligations. Upon presentation and surrender of any Obligations at the corporate trust office of the Registrar, together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the County shall execute and the Registrar shall authenticate, if required by Section 5, and deliver in exchange, a new Obligation or Obligations having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate, and registered in names as requested by the then registered owner or his duly authorized attorney or legal representative. Any such exchange shall be at the expense of the County, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the Record Date. Sale of Obligations. The Board approves the following terms of the sale of the Obligations. The Obligations shall be sold through a negotiated sale with a qualified 24 investment banking firm (the "Underwriter ") as the County Administrator, in collaboration with the Financial Advisor, determines to be in the best interest of the County. The County Administrator, in collaboration with the Financial Advisor, is authorized and directed to determine (i) the aggregate principal amount of the Obligations, subject to the limitations set forth in Section 2, (ii) the interest rates of the Obligations, maturity schedule of the Obligations, and the prices to be paid for the Obligations by the Underwriter, subject to the limitations set forth in Section 3, (iii) the redemption provisions of the Obligations, subject to the limitations set forth in Section 4, and (iv) the dated date, the principal and interest payment dates and the Record Date of the Obligations, all as the County Administrator determines to be in the best interest of the County. The County Administrator is authorized to execute and deliver to the Underwriter a bond purchase agreement (the "Bond Purchase Agreement ") between the County and the Underwriter. The Bond Purchase Agreement shall be in the form approved by the County Administrator, in collaboration with the County Attorney and the County's bond counsel, and shall reflect the final terms of the Obligations. The execution of the Bond Purchase Agreement by the County Administrator shall constitute conclusive evidence of his approval of such completions, omissions, insertions and changes necessary to reflect the final terms of the Obligations. The County Administrator shall file a copy of the Bond Purchase Agreement with the records of the Board. The actions of the County Administrator in selling the Obligations by negotiated sale to the Underwriter shall be conclusive, and no further action with respect to the sale and issuance of the Obligations shall be necessary on the part of the Board. Official Statement. A draft of a Preliminary Official Statement describing the Obligations, copies of which have been provided to the members of the Board, is approved as the form of the Preliminary Official Statement by which the Obligations will be offered for sale, with such completions, omissions, insertions and changes not inconsistent with this Resolution as the County Administrator$ in collaboration with the Financial Advisor, may consider appropriate. After the Obligations have been sold, the County Administrator, in collaboration with the Financial Advisor, shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it as a final Official Statement, execution thereof by the County Administrator to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. The County shall arrange for the delivery to the Underwriter of the Obligations of a reasonable number of copies of the final Official Statement, within seven business days after the Obligations have been sold, for delivery to each potential investor requesting a copy of the Official Statement and to each person to whom such Underwriter initially sell Obligations. 25 Official Statement Deemed Final. The County Administrator is authorized, on behalf of the County, to deem the Preliminary Official Statement and the Official Statement in final form, each to be final as of its date within the meaning of Rule 15c2 -12 ( "Rule 1502 -12 ") of the Securities and Exchange Commission (the "SEC "), except for the omission in the Preliminary Official Statement of certain pricing and other information permitted to be omitted pursuant to Rule 15c2 -12. The distribution of the Preliminary Official Statement and the Official Statement in final form shall be conclusive evidence that each has been deemed final as of its date by the County, except for the omission in the Preliminary Official Statement of such pricing and other information permitted to be omitted pursuant to Rule 15c2 -12. Preparation and Delivery of Obligations. After the Obligations have been awarded, the Chairman or Vice Chairman and the Clerk or Deputy Clerk of the Board are authorized and directed to take all proper steps to have the Obligations prepared and executed in accordance with their terms and to deliver the Obligations to the Underwriter thereof upon payment therefor. Redemption of Refunded Bonds. The County Administrator is authorized and directed to determine which maturities (or portions thereof) of the outstanding Series 2003 and Series 2004 Bonds, if any, shall be refunded and constitute the Refunded Bonds. The Escrow Agreement (as hereinafter defined) shall provide for notice of redemption to be given in accordance with the resolution providing for the issuance of the Refunded Bonds to the registered owners of the Refunded Bonds. Escrow Deposit Agreement. In the event the County Administrator determines that it is in the County's best interest that all or a portion of the Refunded Bonds should be refunded, the County Administrator is authorized and directed to execute an escrow deposit agreement (the "Escrow Agreement ") between the County and an escrow agent to be appointed by the County Administrator (the "Escrow Agent "). The Escrow Agreement shall be in the form approved by the County Administrator, in collaboration with the Interim County Attorney and the County's bond counsel, and shall provide for the deposit and investment of a portion of the Bond proceeds for the defeasance of the Refunded Bonds. The execution of the Escrow Agreement by the County Administrator shall constitute conclusive evidence of such official's approval of the Escrow Agreement. The Escrow Agreement shall provide for the irrevocable deposit of a portion of the Bond proceeds (the "Refunding Portion ") in an escrow fund which shall be sufficient to provide for payment of principal of and premium, if any, and interest on the Refunded Bonds; provided, however, that such Refunding Portion shall be invested in such manner that none of the Bonds will be "arbitrage bonds" within the meaning of Section 148 of the Code. Deposit of Obligation Proceeds. Either the County Treasurer or the Director of Budget and Finance is authorized and directed (a) to provide for the delivery of the Refunding Portion to the Escrow Agent for deposit in the escrow fund established by the Escrow Agreement, in an amount that will be sufficient, together with any other funds deposited with the Escrow Agent 26 and the interest thereon when invested as provided in the Escrow Agreement, (i) to pay when due the interest on the Refunded Bonds to the first date on which they may be redeemed at the option of the County and (ii) to pay upon the earlier of maturity or redemption the principal of the Refunded Bonds, plus any interest accrued and unpaid to such redemption date, plus the applicable redemption premium, and (b) to provide for the deposit of the remaining proceeds of the Obligations in a special account to be used to pay the costs of the Project and the costs incurred in refunding the Refunded Bonds and issuing the Obligations. Either the County Treasurer or the Director of Budget and Finance is further authorized and directed to take all such further action as may be necessary or desirable in connection with the payment and refunding of the Refunded Bonds. Arbitrage Covenants. For Obligations the interest on which is intended to be excludable from gross income for federal income tax purposes, the County covenants that it shall not take or omit to take any action the taking or omission of which will cause the Obligations to be "arbitrage bonds" within the meaning of Section 148 of the Code, or otherwise cause interest on the Obligations to be includable in the gross income of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the County shall comply with any provision of law which may require the County at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Obligations, unless the County receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest on the Obligations from being includable in the gross income of the registered owners thereof under existing law. The County shall pay any such required rebate from its legally available funds. Non - Arbitrage Certificate and Elections. Such officers of the County as may be requested are authorized and directed to execute an appropriate certificate setting forth the expected use and investment of the proceeds of the Obligations in order to show that such expected use and investment will not violate the provisions of Section 148 of the Code, and any elections such officers deem desirable regarding rebate of earnings to the United States for purposes of complying with Section 148 of the Code. Such certificate and elections shall be in such form as may be requested by bond counsel for the County. Limitation on Private Use. The County covenants that it shall not permit the proceeds of the Obligations or the facilities financed with the proceeds of the Obligations to be used in any manner that would result in (a) 5% or more of such proceeds or the facilities financed with such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, (b) 5% or more of such proceeds or the facilities financed with such proceeds being used with respect to any output facility (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any 27 persons other than a governmental unit, as provided in Section 141(c) of the Code; provided, however, that if the County receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Obligations from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law, the County need not comply with such covenants. Continuing Disclosure Agreement. The County Administrator is hereby authorized and directed to execute a continuing disclosure agreement (the "Continuing Disclosure Agreement ") setting forth the reports and notices to be filed by the County and containing such covenants as may be necessary to assist the purchasers of the Obligations in complying with the provisions of the Rule promulgated by the SEC. The Continuing Disclosure Agreement shall be substantially in the form of the draft which has been provided to members of the Board, with such completions, omissions, insertions and changes that are not inconsistent with this Resolution. SNAP Investment Authorization. The Board has received and reviewed the Information Statement (the "Information Statement ") describing the State Non - Arbitrage Program of the Commonwealth of Virginia ( "SNAP ") and the Contract Creating the State Non - Arbitrage Program Pool I (the "Contract "), and the Board has determined to authorize the County Administrator to utilize SNAP in connection with the investment of the proceeds of the Bonds, if the County Administrator determines that the utilization of SNAP is in the best interest of the County. The Board acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the County in connection with SNAP, except as otherwise provided in the Contract. Other Actions. All other actions of officers of the County in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Obligations are approved and confirmed. The officers of the County are authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection with the issuance, sale and delivery of the Obligations. Repeal of Conflicting Resolutions. All resolutions or parts of resolutions in conflict herewith are repealed. Official Intent. The County intends that the adoption of this resolution be considered as "official intent" within the meaning of Treasury Regulations, Section 1.150 -2, promulgated under the Internal Revenue Code of 1986, as amended. Filing. The Clerk of the Board, in collaboration with the Interim County Attorney, is authorized and directed to see to the immediate filing of a certified copy of this resolution in the Circuit Court of Isle of Wight County, Virginia. 28 Effective Date. This Resolution shall take effect immediately. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. Chairman Wright moved that the following Resolution be adopted and the Chairman authorized to sign it on behalf of the Board: RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF LITERARY LOAN ANTICIPATION NOTES IN A MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $7,500,000 OF ISLE OF WIGHT COUNTY, VIRGTNIA, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, pursuant to Section 10(b) of Article VII of the Constitution of Virginia and Section 15.2 -2639 (formerly Section 15.1- 227.40) of the Code of Virginia of 1950, as amended, Isle of Wight County, Virginia (the "County "), has elected by affirmative vote of the qualified voters of the County, to be treated as a city for the purpose of issuing its bonds; WHEREAS, the School Board of Isle of Wight County, Virginia (the "School Board "), has been authorized to file an application (the "Application ") with the Literary Fund of Virginia (the "Literary Fund ") for a loan in the amount of $7,500,000 (the "Literary Loan") to finance improvements to the County's public school system, including costs to acquire, construct and equip the Windsor Middle School (the "School Project "); WHEREAS, the County administration, in collaboration with Davenport & Company LLC, serving as the County's financial advisor (the "Financial Advisor"), has recommended to the Board of Supervisors of the County (the "Board ") that the County authorize, issue and sell one or more series of general obligation notes of the County in a maximum principal amount not to exceed $7,500,000 (the "Notes ") in anticipation of the receipt of proceeds of the Literary Loan for the School Project; WHEREAS, the Board intends to retire such notes at maturity with proceeds of the Literary Loan or, if such proceeds are not available at maturity, with proceeds of (a) another series of notes issued in anticipation of the Literary Loan or (b) an issuance of bonds of the County; BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF ISLE OF WIGHT COUNTY, VIRGINIA: 29 1. Authorization of the Notes. It is determined to be necessary and expedient for the County to finance the School Project, to borrow money for such purpose and to issue the County's literary loan anticipation notes therefor. Pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, there are authorized to be issued general obligation literary loan anticipation notes of the County in a maximum principal amount not to exceed $7,500,000 to provide funds to finance the cost of the School Project. 2. Issuance and Sale of the Notes. There shall be issued and sold, pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, literary loan anticipation notes of the County in the maximum principal amount of $7,500,000. The Board hereby provides for the issuance and sale of the Notes to finance a portion of the costs of the School Project and to pay the costs of issuing the Notes. 3. Details of Notes. The Notes may be issued in one or more series, shall be designated "Literary Loan Anticipation Notes, Series 2011," or such other designation as shall be determined by the County Administrator, shall be in registered form, shall be dated such date as determined by the County Administrator, shall be in denominations of $5,000 and integral multiples thereof, and shall be numbered R -1 upward. Subject to Section 9, the Notes shall be issued and sold on terms as shall be satisfactory to the County Administrator; provided, however, that the Notes shall (i) be issued in a principal amount not to exceed $7,500,000; (ii) have a "true or "Canadian" interest cost not to exceed 5.00% (taking into account any original issue discount or premium), (iii) be sold at a price not less than 97% of the original maximum principal amount thereof and (iv) mature no later than December 31, 2016. Interest on the Notes shall be payable semi- annually on dates determined by the County Administrator to be in the best interest of the County. Principal of the Notes shall be payable at maturity. Each Note shall bear interest at such rate as shall be determined at the time of sale, calculated on the basis of a 360 -day year of twelve 30 -day months. Principal and premium, if any, shall be payable to the registered owners upon surrender of Notes as they become due at the office of the Registrar (as hereinafter defined). Interest shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Registrar on a date prior to each interest payment date that shall be determined by the County Administrator (the "Record Date "). Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. Initially, one Note certificate for each maturity of each series of the Notes shall be issued to and registered in the name of The Depository Trust Company, New York, New York ( "DTC "), or its nominee. The County has heretofore entered into a Blanket Letter of Representations relating to a book - entry system to be maintained by DTC with respect to the Notes. "Securities 30 Depository" shall mean DTC or any other securities depository for the Notes appointed pursuant to this Section. In the event that (a) the Securities Depository determines not to continue to act as the securities depository for the Notes by giving notice to the Registrar, and the County discharges its responsibilities hereunder, or (b) the County in its sole discretion determines (i) that beneficial owners of Notes shall be able to obtain certificated Notes or (ii) to select a new Securities Depository, then its chief financial officer shall, at the direction of the County, attempt to locate another qualified securities depository to serve as Securities Depository and authenticate and deliver certificated Notes to the new Securities Depository or its nominee, or authenticate and deliver certificated Notes to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Section 6; provided, however, that such form shall provide for interest on the Notes to be payable (A) from the date of the Notes if they are authenticated prior to the first interest payment date, or (B) otherwise from the interest payment date that is or immediately precedes the date on which the Notes are authenticated (unless payment of interest thereon is in default, in which case interest on such Notes shall be payable from the date to which interest has been paid). In delivering certificated Notes, the chief financial officer shall be entitled to rely on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository participants acting on behalf of beneficial owners. Such certificated Notes will then be registrable, transferable and exchangeable as set forth in Section 8. So long as there is a Securities Depository for the Notes (1) it or its nominee shall be the registered owner of the Notes, (2) notwithstanding anything to the contrary in this Resolution, determinations of persons entitled to payment of principal, premium, if any, and interest, transfers of ownership and exchanges and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (3) the Registrar and the County shall not be responsible or liable for maintaining, supervising or reviewing the records maintained by the Securities Depository, its participants or persons acting through such participants, (4) references in this Resolution to registered owners of the Notes shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Notes and (5) in the event of any inconsistency between the provisions of this Resolution and the provisions of the above - referenced Blanket Letter of Representations such provisions of the Blanket Letter of Representations, except to the extent set forth in this paragraph and the next preceding paragraph, shall control. 4. Redemption Provisions. The Notes may be subject to redemption prior to maturity at the option of the County on or after dates, if any, determined by the County Administrator, in whole or in part (in $5,000 integrals) at any time, at a redemption price not to exceed 102% of the 31 principal amount of Notes to be redeemed, together with any interest accrued and unpaid to the redemption date. Any term bonds may be subject to mandatory sinking fund redemption upon terms determined by the County Administrator. If less than all of the Notes are called for redemption, the maturities of the Notes to be redeemed shall be selected by the County's chief financial officer in such manner as the chief financial officer may determine to be in the best interest of the County. If less than all the Notes of a particular maturity are called for redemption, the Notes within such maturity to be redeemed shall be selected by the Securities Depository pursuant to its rules and procedures or, if the book -entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Note to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Notes for redemption, each Note shall be considered as representing that number of Notes that is obtained by dividing the principal amount of such Note by $5,000. The County shall cause notice of the call for redemption identifying the Notes or portions thereof to be redeemed to be sent by facsimile or electronic transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner of the Notes. The County shall not be responsible for sending notice of redemption to anyone other than DTC or another qualified Securities Depository or its nominee unless no qualified Securities Depository is the registered owner of the Notes. If no qualified Securities Depository is the registered owner of the Notes, notice of redemption shall be sent to the registered owners of the Notes. If a portion of a Note is called for redemption, a new Note in a principal amount equal to the unredeemed portion thereof will be issued to the registered owner upon the surrender thereof. In the case of an optional redemption, the notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, no later than the redemption date or (2) the County retains the right to rescind such notice on or prior to the scheduled redemption date (in either case, a "Conditional Redemption "), and such notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded as described herein. Any Conditional Redemption may be rescinded at any time. The County shall give prompt notice of such rescission to the affected holders of such Notes. Any Notes subject to Conditional Redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not constitute an event of default. Further, in the case of a Conditional Redemption, the failure of the County to make funds available on or before the redemption date shall not constitute an event of default, and the County shall give immediate notice to all organizations registered with the Securities and Exchange Commission as securities depositories or the affected holders of such Notes that the 32 redemption did not occur and that the Notes called for redemption and not so paid remain outstanding. 5. Execution and Authentication of Notes. Each Note shall be signed by the manual or facsimile signature of the Chairman or Vice Chairman of the Board, shall be countersigned by the manual or facsimile signature of the Clerk or Deputy Clerk of the Board and the Board's seal shall be affixed thereto or a facsimile thereof printed thereon; provided, however, that if both of such signatures are facsimiles, no Notes shall be valid until they have been authenticated by the manual signature of an authorized officer or employee of the Registrar and the date of authentication noted thereon. 6. Form of Notes. The Notes shall be in substantially the form of Exhibit A. which is attached hereto, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officers signing the Notes, whose approval shall be evidenced conclusively by the execution and delivery of the Notes. 7. Payment of Notes; Pledge of Full Faith and Credit. The Notes shall be paid from the proceeds of the Literary Loan, from other notes issued in anticipation of the issuance of such Literary Loan, or from bonds issued by the County. The proceeds of such Literary Loan, notes or bonds shall be used for no other purpose until the Notes have been paid or provision made for their payment. In addition, the full faith and credit of the County are irrevocably pledged for the payment of principal of, premium, if any, and interest on the Notes. Unless other funds are lawfully available and appropriated for timely payment of the Notes, 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 the principal of, premium, if any, and interest on the Notes. 8. Registration, Transfer and Owners of Notes. The County Administrator is hereby authorized and directed to appoint a qualified bank or trust company as paying agent and registrar for the Notes (the "Registrar "). The Registrar shall maintain registration books for the registration and registration of transfers of Notes. Upon presentation and surrender of any Notes at the corporate trust office of the Registrar, together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the County shall execute and the Registrar shall authenticate, if required by Section 5, and deliver in exchange, a new Note or Notes having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate, and registered in names as requested by the then registered owner or his duly authorized attorney or legal representative. Any such exchange shall be at the expense of the County, except that the Registrar may charge the person 33 requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the Record Date. 9. Sale of the Notes. The Board approves the following terms of the sale of the Notes. The Notes shall be sold through a negotiated sale with a qualified investment banking firm (the "Underwriter ") as the County Administrator, in collaboration with the Financial Advisor, determines to be in the best interest of the County. The County Administrator, in collaboration with the Financial Advisor, is authorized and directed to determine (i) the aggregate principal amount of the Notes, subject to the limitations set forth in Section 2, (ii) the interest rates of the Notes, maturity schedule of the Notes, and the prices to be paid for the Notes by the Underwriter, subject to the limitations set forth in Section 3, (iii) the redemption provisions of the Notes, subject to the limitations set forth in Section 4, and (iv) the dated date, the principal and interest payment dates and the Record Date of the Notes, all as the County Administrator determines to be in the best interest of the County. The County Administrator is authorized to execute and deliver to the Underwriter a bond purchase agreement (the "Bond Purchase Agreement ") between the County and the Underwriter. The Bond Purchase Agreement shall be in the form approved by the County Administrator, in collaboration with the County Attorney and the County's bond counsel, and shall reflect the final terms of the Notes. The execution of the Bond Purchase Agreement by the County Administrator shall constitute conclusive evidence of his approval of such completions, omissions, insertions and changes necessary to reflect the final terms of the Notes. The County Administrator shall file a copy of the Bond Purchase Agreement with the records of the Board. The actions of the County Administrator in selling the Notes by negotiated sale to the Underwriter shall be conclusive, and no further action with respect to the sale and issuance of the Notes shall be necessary on the part of the Board. 10. Official Statement. A draft of a Preliminary Official Statement describing the Notes, copies of which have been provided to the members of the Board, is approved as the form of the Preliminary Official Statement by which the Notes will be offered for sale, with such completions, omissions, insertions and changes not inconsistent with this Resolution as the County Administrator, in collaboration with the Financial Advisor, may consider appropriate. After the Notes have been sold, the County Administrator, in collaboration with the Financial Advisor, shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it 34 as a final Official Statement, execution thereof by the County Administrator to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. The County shall arrange for the delivery to the Underwriter of the Notes of a reasonable number of copies of the final Official Statement, within seven business days after the Notes have been sold, for delivery to each potential investor requesting a copy of the Official Statement and to each person to whom such Underwriter initially sell Notes. 11. Official Statement Deemed Final. The County Administrator is authorized, on behalf of the County, to deem the Preliminary Official Statement and the Official Statement in final form, each to be final as of its date within the meaning of Rule 15c2 -12 ( "Rule 15c2 -12 ") of the Securities and Exchange Commission (the "SEC "), except for the omission in the Preliminary Official Statement of certain pricing and other information permitted to be omitted pursuant to Rule 15c2 -12. The distribution of the Preliminary Official Statement and the Official Statement in final form shall be conclusive evidence that each has been deemed final as of its date by the County, except for the omission in the Preliminary Official Statement of such pricing and other information permitted to be omitted pursuant to Rule 15c2- 12. 12. Preparation and Delivery of Notes. The Chairman of the Board, Vice Chairman, Clerk of the Board and Deputy Clerk are authorized and directed to take all proper steps to have the Notes prepared and executed in accordance with the terms of this Resolution and to deliver the Notes to the Underwriter thereof upon payment therefor. 13. Arbitrage Covenants. The County covenants that it shall not take or omit to take any action the taking or omission of which will cause the Notes to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued pursuant thereto (the "Code "), or otherwise cause interest on the Notes to be includable in the gross income of the registered owners thereof under existing laws. Without limiting the generality of the foregoing, the County shall comply with any provision of law that may require the County at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Notes, unless the County receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest on the Notes from being includable in the gross income of the registered owners thereof under existing law. The County shall pay any such required rebate from its legally available funds. 14. Non - Arbitrage Certificate and Elections. Such officers of the County as may be requested are authorized and directed to execute an appropriate certificate setting forth the expected use and investment of the proceeds of the Notes in order to show that such expected use and investment will not violate the provisions of Section 148 of the Code and any elections such officers deem desirable regarding rebate of earnings to the United States 35 for purposes of complying with Section 148 of the Code. Such certificate and elections shall be in such form as may be requested by bond counsel for the County. 15. Limitation on Private Use. The County covenants that it shall not permit the proceeds of the Notes or the facilities financed with the proceeds of the Notes to be used in any manner that would result in (a) 5% or more of such proceeds or the facilities financed with such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, (b) 5% or more of such proceeds or the facilities financed with such proceeds being used with respect to any output facility (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Section 141(c) of the Code; provided, however, that if the County receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Notes from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law, the County need not comply with such covenants. 16. Continuing Disclosure Agreement. The County Administrator is hereby authorized and directed to execute a continuing disclosure agreement (the "Continuing Disclosure Agreement ") setting forth the reports and notices to be filed by the County and containing such covenants as may be necessary to assist the purchasers of the Notes in complying with the provisions of the Rule promulgated by the SEC. The Continuing Disclosure Agreement shall be substantially in the form of the draft which has been provided to members of the Board, with such completions, omissions, insertions and changes that are not inconsistent with this Resolution. 17. SNAP Investment Authorization. The Board has received and reviewed the Information Statement (the "Information Statement ") describing the State Non - Arbitrage Program of the Commonwealth of Virginia ( "SNAP ") and the Contract Creating the State Non - Arbitrage Program Pool I (the "Contract "), and the Board has determined to authorize the County Administrator to utilize SNAP in connection with the investment of the proceeds of the Bonds, if the County Administrator determines that the utilization of SNAP is in the best interest of the County. The Board acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the County in connection with SNAP, except as otherwise provided in the Contract. 18. Other Actions. All other actions of officers of the County in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Notes are approved and confirmed. The officers of the County are authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be 36 considered necessary or desirable in connection with the issuance, sale and delivery of the Notes. 19. Repeal of Conflicting Resolutions. All resolutions or parts of resolutions in conflict herewith are repealed. 20. Official Intent. The County intends that the adoption of this resolution be considered as "official intent" within the meaning of Treasury Regulations, Section 1.150 -2, promulgated under the Internal Revenue Code of 1986, as amended. 21. Filing. The Clerk of the Board, in collaboration with the Interim County Attorney, is authorized and directed to see to the immediate filing of a certified copy of this resolution in the Circuit Court of Isle of Wight County, Virginia. 22. Effective Date. This Resolution shall take effect immediately. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. Supervisor Bunch moved that the following Resolution be adopted and the Chairman authorized to sign it on behalf of the Board: RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION SCHOOL BONDS OF ISLE OF WIGHT COUNTY, VIRGINIA, IN A PRINCIPAL AMOUNT NOT TO EXCEED $7,500,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, pursuant to Section 10(b) of Article VII of the Constitution of Virginia and Section 15.2 -2639 (formerly Section 15.1- 227.40) of the Code of Virginia of 1950, as amended, Isle of Wight County, Virginia (the "County "), has elected by affirmative vote of the qualified voters of the County, to be treated as a city for the purpose of issuing its bonds; and WHEREAS, the County has held a public hearing, duly noticed, on May 12, 2011, on the issuance of its general obligation school bonds, in a principal amount not to exceed $7,500,000 (such bonds hereinafter defined as the "Local School Bond "), for the purpose of financing certain capital improvements for school purposes, including without limitation, the acquisition, construction and equipping of Windsor Middle School (the "School Project "), in accordance with the requirements of Section 15.2 -2606, Code of Virginia 1950, as amended (the "Virginia Code "); and 37 WHEREAS, the School Board of the County has, by resolution adopted on May 4, 2011, requested the Board of Supervisors of the County (the "Board ") to authorize the issuance of the Local School Bond and consented to the issuance of the Local School Bond; and WHEREAS, the Virginia Public School Authority ( "VPSA ") has offered to purchase the Local School Bond along with the local school bonds of certain other Iocalities with a portion of the proceeds of certain bonds to be issued by VPSA in the summer of 2011 (the "VPSA Bonds "); and WHEREAS, VPSA intends to issue the VPSA Bonds as "qualified school construction bonds" (referred to below as "QSCBs" and each a "QSCB ") within the meaning of Section 54F of the Internal Revenue Code of 1986, as amended (the "Tax Code "), which section was added to the Tax Code by the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111 -5, 123 Stat. 355), enacted on February 17, 2009; and WHEREAS, VPSA intends to elect to treat the VPSA Bonds as "specified tax°credit bonds" under Section 6431 of the Tax Code, as amended by the Hiring Incentives to Restore Employment Act (Pub. L. No. 111 -147, 123 Stat. 301), enacted on March 18, 2010, which status enables an issuer of a QSCB to receive a direct payment of a refundable credit in lieu of providing a tax credit to the purchaser or holder of the QSCB; and WHEREAS, the refundable credit payable with respect to each interest payment date will be equal to the lesser of (i) the amount of interest payable under the QSCB on such date or (ii) the amount of interest which would have been payable under the QSCB on such date if such interest were determined at the applicable credit rate determined under Section 54A(b)(3) of the Tax Code (that is, the rate used in computing the amount of tax credit that could be claimed by the QSCB holder absent the "specified tax credit bond" refundable credit election); and WHEREAS, subject to the terms and conditions set forth or referred to below, VPSA will transfer to the County the allocable portion of the refundable credit actually received in cash by VPSA with respect to the VPSA Bonds; and WHEREAS, the allocation of QSCB volume cap pursuant to which VPSA will issue the VPSA Bonds will be made by Executive Order to be issued by the Governor of the Commonwealth of Virginia (the "Executive Order "), to finance the Project along with a number of other projects selected through a competitive evaluation process administered by the Virginia Department of Education; and WHEREAS, the Bond Sale Agreement (as defined below) shall indicate that $7,500,000 is the amount of proceeds requested (the "Proceeds 38 Requested ") from the VPSA in connection with the sale of the Local School Bond; and WHEREAS, VPSA's objective is to pay the County a purchase price for the Local School Bond which, in VPSA's judgment, reflects the Local School Bond's market value (the "VPSA Purchase Price Objective "), taking consideration of such factors as the purchase price to be received by VPSA from the sale of the VPSA Bonds, the underwriters' discount and the other issuance costs of the VPSA Bonds and other market conditions relating to the sale of the VPSA Bonds; and WHEREAS, such factors may result in the Local School Bond having a purchase price other than par and consequently (i) in the case of any bond premium, the County may have to issue the Local School Bond in a principal amount that is less than the Proceeds Requested in order to receive an amount of proceeds that is substantially equal to the Proceeds Requested, or (ii) if the maximum authorized principal amount of the Local School Bond set forth in paragraph 1 of this Resolution does not exceed the Proceeds Requested by at least the amount of any bond discount, the purchase price to be paid to the County, given the VPSA Purchase Price Objective and market conditions, will be less than the Proceeds Requested. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ISLE OF WIGHT, VIRGINIA: 1. Authorization of Local School Bond. It is determined to be necessary and expedient for the County to finance the School Project, to borrow money for such purpose and to issue the County's general obligation school bonds therefor. Pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, there are authorized to be issued general obligation school bonds of the County in a principal amount not to exceed $7,500,000 (the "Local School Bond ") to provide funds the School Project and to pay related costs of issuance. 2. Issuance of Local School Bond and Use of Proceeds. The Board hereby provides for the issuance and sale of the Local School Bond" for the purpose of financing the School Project, and for paying the County's allocable share of (a) VPSA's costs of issuing the VPSA Bonds and (b) any upfront flat fees of VPSA as determined by VPSA to be necessary to compensate VPSA for the ongoing costs related to administering the local school bonds purchased with the VPSA Bonds, including the County's Local School Bond (such upfront fees may be in lieu of the Annual Administrative Fee described in paragraph 4 in this Resolution). The issuance and sale of the Local School Bond shall be in the form and upon the terms established pursuant to this Resolution and the Bond Sale Agreement. 3. Sale of the Local School Bond. The sale of the Local School Bond, within the parameters set forth in paragraph 5 of this Resolution, to 39 VPSA is authorized. If the limitation on the maximum principal amount on the Local School Bond set forth in paragraph 1 of this Resolution restricts VPSA's ability to generate the Proceeds Requested, the Local School Bond may be sold for a purchase price of not lower than 90% of the Proceeds Requested. The Chairman of the Board, the County Administrator, or either of them and such other officer or officers of the County as either may designate are hereby authorized and directed to enter into an agreement with VPSA providing for the sale of the Local School Bond to VPSA (the "Bond Sale Agreement "). The Bond Sale Agreement shall be in substantially the form submitted to the Board at this meeting, which form is hereby approved. 4. Details of the Local School Bond. The Local School Bond shall be dated the date of its issuance and delivery; shall be designated "General Obligation School Bond, Series 2011" or such other appropriate designation determined by the County Administrator; shall bear interest from the date of delivery thereof payable semi - annually on dates specified by VPSA (each, an "Interest Payment Date" at the rates established in accordance with paragraph 5 of this Resolution; and shall mature annually in the years (each a "Principal Payment Date," and together with any Interest Payment Date, a "Payment Date ") and in the amounts (the "Principal Installments ") determined by the County Administrator, subject to the provisions of paragraph 5 of this Resolution. 5. Interest Rate and Principal Installments. The County Administrator is hereby authorized and directed to accept the interest rate on the Local School Bond established by VPSA, provided that each interest rate may be up to five one - hundredths of one percent (0.05 %) over the interest rate to be paid by VPSA for the corresponding principal payment date of the VPSA Bonds, a portion of the proceeds of which will be used to purchase the Local School Bond, to the extent required by VPSA (the "Annual Administrative Fee "), and provided further that the true interest cost of the Local School Bond does not exceed seven and a half percent (7.50 %) per annum. The Payment Dates and the Principal Installments shall be specified by VPSA. The County Administrator is hereby authorized and directed to accept the final Payment Dates and the Principal Installments at the request of VPSA based on the final term to maturity of the VPSA Bonds, requirements imposed on VPSA by the nationally - recognized rating agencies and the final principal amount of the Local School Bond; provided, however, that the principal amount of the Local School Bond shall not exceed the amount authorized by this Resolution and the final maturity of the Local School Bond shall be no later than the earlier of (a) December 31, 2030, and (b) the latest maturity date permitted under Section 54A of the Tax Code. The execution and delivery of the Local School Bond as described in paragraph 10 hereof shall conclusively evidence the approval and acceptance all of the details of the Local School Bond by the County Administrator as authorized by this Resolution. 6. Certain Investment Earnings. The Board hereby acknowledges that VPSA will (i) issue the VPSA Bonds with multiple maturities or with a 40 single "bullet" maturity, in either case, with a final maturity date on or shortly before the latest maturity date permitted for the VPSA Bonds under Section 54A of the Tax Code, (ii) invest the Principal Installments for the benefit of the County until they are applied to pay the principal of the VPSA Bonds and (iii) either remit the investment earnings periodically to the County or credit the investment earnings against the County's obligation to make Principal Installments, at the option of VPSA. The Board further acknowledges that VPSA may cause a portion of such earnings to be deposited into a reserve fund or account to be applied by VPSA for use to pay the costs, fees and expenses described in paragraph 15 below. Any balance in such reserve fund or account attributable to investment earnings on the County's Principal Installments as reasonably determined by VPSA will be remitted or credited to the County on the final maturity date of the VPSA Bonds. 7. Certain Acknowledgements. The County acknowledges that the interest rate on the Local School Bond will be set at the level necessary to pay the interest on the allocable portion of the VPSA Bonds plus the Annual Administrative Fee, if any, and that the County will be obligated to pay interest on the Local School Bond at the stated taxable rate thereon regardless of the elimination or reduction of the refundable credit to be received by VPSA due to (i) any amendments by Congress to Sections 54A, 54F or 6431 or any other applicable sections of the Tax Code, (ii) any failure or determination by Congress not to appropriate funds necessary to pay the refundable credit, (iii) any guidance or changes to guidance provided by the U.S. Department of Treasury or the Internal Revenue Service, or (iv) any action or omission by VPSA, the County or any other locality selling local school bonds to VPSA in connection with the VPSA Bonds that causes the VPSA Bonds to lose their status as QSCBs and/or specified tax credit bonds in whole or in part. It is also acknowledged that the County has the right to effect an extraordinary optional redemption of the Local School Bond in whole or in part upon the occurrence of any of these events as provided in the form of Local School Bond. 8. Form of the Local School Bond. The Local School Bond shall be issued initially in the form of a single, temporary typewritten bond substantially in the form attached hereto as Exhibit A. 9. Payment Paying Agent and Bond Registrar. The following provisions shall apply to the Local School Bond: (a) For as long as VPSA is the registered owner of the Local School Bond, all payments of principal, premium, if any, and interest on the Local School Bond shall be made in immediately available funds to, or at the direction of VPSA at, or before 11:00 a.m. on the applicable Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption, or if such date is not a business day for Virginia banks or for the Commonwealth of Virginia, then at or before 41 11:00 a.m. on the business day next succeeding such Interest Payment Date, Principal Payment Date or date fixed for payment, prepayment or redemption. (b) The Bond Registrar and Paying Agent for the Local School Bond shall be the banking institution selected by VPSA for such purposes. 10. Prepayment or Redemption. The Principal Installments of the Local School Bond may be subject to optional prepayment or redemption prior to their stated maturities as determined by VPSA. The Principal Installments of the Local School Bond will be subject to extraordinary mandatory redemption (i) if certain proceeds of the Local School Bond have not been spent within three years after the date of its issuance and delivery (which three year period may be extended by the U.S. Secretary of the Treasury or his delegate), (ii) due to a loss of "qualified tax credit bond" and "qualified school construction bond" status of the VPSA Bonds corresponding to the Local School Bond under Sections 54A and 54F of the Tax Code, and (iii) if due to (a) any amendments by Congress to Sections 54A, 54F or 6431 or any other applicable sections of the Tax Code or (b) any guidance or changes to guidance provided by the U.S. Department of Treasury or the Internal Revenue Service, there is a reduction or elimination of the direct payment of the refundable credit to be received by VPSA with respect to the VPSA Bonds. The Principal Installments of the Local School Board shall be redeemed at the redemption prices and upon the other terms set forth in the Local School Bond. 11. Execution of the Local School Bond. The Chairman or Vice Chairman of the Board, either of whom may act, and the Clerk of the Board or any Deputy Clerk of the Board, either of whom may act, are authorized and directed to execute and deliver the Local School Bond and to affix the seal of the County thereto. 12. Pledge of Full Faith and Credit. For the prompt payment of the principal of and interest, if any, and premium, if any, on the Local School Bond as the same shall become due, the full faith and credit of the County are hereby irrevocably pledged, and in each year while any of the Local School Bond shall be outstanding there shall be levied and collected in accordance with law an annual ad valorem tax upon all taxable property in the County subject to local taxation sufficient in amount to provide for the payment of the principal of and interest, if any, and premium, if any, on the Local School Bond as such principal, interest, if any, and premium, if any, shall become due, which tax shall be without limitation as to rate or amount and in addition to all other taxes authorized to be levied in the County to the extent other funds of the County are not lawfully available and appropriated for such purpose. 42 13. Use of Proceeds Certificate and Tax Compliance Agreement. The Chairman of the Board, the County Administrator and such other officer or officers of the County as either may designate are hereby authorized and directed to execute and deliver on behalf of the County a Use of Proceeds Certificate and Tax Compliance Agreement (the "Tax Compliance Agreement ") setting forth the expected use and investment of the proceeds of the Local School Bond and containing such covenants as may be necessary for the VPSA Bonds to qualify as and to remain as "qualified tax credit bonds," "qualified school construction bonds" and "specified tax credit bonds" under Sections 54A, 54F and 6431 of the Tax Code and the applicable regulations. The Board covenants on behalf of the County that (i) the proceeds from the issuance and sale of the Local School Bond will be invested and expended as set forth in the Tax Compliance Agreement and that the County shall comply with the other covenants and representations contained therein and (ii) the County shall comply with the provisions of the Tax Code so that the VPSA Bonds will not lose their status as "qualified tax credit bonds," "qualified school construction bonds" and "specified tax credit bonds" under Sections 54A, 54F and 6431 of the Tax Code. 14. State Non - Arbitrage Program; Proceeds Agreement. The Board hereby determines that it is in the best interests of the County to authorize and direct the County Treasurer to participate in the State Non - Arbitrage Program in connection with the Local School Bond. The Chairman of the Board, the County Administrator and such officer or officers of the County as either may designate are hereby authorized and directed to execute and deliver a Proceeds Agreement with respect to the deposit and investment of proceeds of the Local School Bond by and among the County, the other participants in the sale of the VPSA Bonds, VPSA, the investment manager and the depository, substantially in the form requested by VPSA and approved by the County officers executing such agreement. 15. Continuing Disclosure Agreement. The Chairman of the Board, the County Administrator and such other officer or officers of the County as either may designate are hereby authorized and directed to execute a Continuing Disclosure Agreement, as set forth in Appendix F to the Bond Sale Agreement, setting forth the reports and notices to be filed by the County and containing such covenants as may be necessary in order to show compliance with the provisions of the Securities and Exchange Commission Rule 15c2 -12, under the Securities Exchange Act of 1934, as amended, and directed to make all filings required by Section 3 of the Bond Sale Agreement should the County be determined by the VPSA to be a MOP (as defined in the Continuing Disclosure Agreement). 16. Fees, Costs and Expenses. The County agrees to pay from proceeds of its Local School Bond or other legally available funds the following fees, costs and expenses incurred by VPSA in connection with its purchase and carrying of the Local School Bond within thirty days after receipt by the County Administrator of a written bill therefor: (a) The County's allocable share of (i) the fees, costs and expenses of the trustee, paying agent and bond registrar under the indenture pursuant to which VPSA will issue the VPSA Bonds and (ii) the County's allocable share of any fees, costs and expenses payable to third parties in connection with such indenture or VPSA's School Tax Credit Bond Program, as determined by VPSA; and (b) To the extent permitted by law, the reasonable fees, costs and expenses, including reasonable attorneys' fees, if any, incurred by VPSA in connection with any false representation or certification or covenant default by the County or any County or School Board official, employee, agent or contractor under the Local School Bond, the Continuing Disclosure Agreement, the Tax Compliance Agreement, the Proceeds Agreement and/or any document, certificate or instrument associated therewith (collectively, the "County Documents "), or in connection with any extraordinary mandatory redemption of the Local School Bond as described in paragraph 9 above and the corresponding VPSA Bonds, any amendment to or discretionary action that VPSA makes or undertakes at the request of the County under any of the County Documents or any other document related to the VPSA Bonds. 17. Election to Proceed under Public Finance Act. In accordance with Section 15.2 -2601 of the Virginia Code, the Board elects to issue the Local School Bond pursuant to the provisions of the Public Finance Act of 1991, Chapter 26 of Title 15.2 of the Virginia Code. 18. Official Intent. The County intends that the adoption of this resolution be considered as "official intent" within the meaning of Treasury Regulations, Section 1.150 -2, promulgated under the Internal Revenue Code of 1986, as amended. 19. Filing. The Clerk of the Board, in collaboration with the County Attorney, is authorized and directed to see to the immediate filing of a certified copy of this Resolution in the Circuit Court of the County of Isle of Wight, Virginia. 20. Further Actions. The members of the Board and all officers, employees and agents of the County are hereby authorized to take such action as they or any one of them may consider necessary or desirable in connection with the issuance and sale of the Local School Bond and any such action previously taken is hereby ratified and confirmed. 21. Effective Date. This Resolution shall take effect immediately. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. Supervisor Clark moved that the following Resolution be adopted and the Chairman authorized to sign it on behalf of the Board: 44 RESOLUTION APPROVING THE FILING OF AN APPLICATION WITH THE LITERARY FUND OF VIRGINIA FOR A LOAN IN THE APPROXIMATE PRINCIPAL AMOUNT OF $7,500,000 WHEREAS, the School Board of the County of Isle of Wight (the "School Board "), in collaboration with the County of Isle of Wight, Virginia (the "County "), has determined that it is necessary and desirable to finance improvements to the County's public school system, including costs to acquire, construct and equip the Windsor Middle School (the "Project ") through a loan from the Literary Fund of Virginia (the "Literary Fund ") in the approximate principal amount of $7,500,000; WHEREAS, plans for the Project have advanced and the School Board expects to advance its own funds to pay expenditures related to the Project (the "Expenditures ") prior to incurring indebtedness and to receive reimbursement for such Expenditures from proceeds of such loan or other debt obligation (the "loan"); BE IT RESOLVED BY THE SCHOOL BOARD OF THE COUNTY OF ISLE OF WIGHT, VIRGINIA: 1. The School Board hereby approves the filing of an application with the Literary Fund of Virginia for a loan to the School Board in the approximate principal amount of $7,500,000 to finance capital improvements to the Project, for which the School Board shall issue its obligation to the Literary Fund of Virginia. The School Superintendent, in collaboration with other officers of the School Board and the County, is hereby authorized and directed to complete an application and deliver it to the Literary Fund of Virginia. 2. The School Board hereby agrees to provide for the repayment of the loan if and as funded pursuant to the laws regulating loans from the Literary Fund. 3. The School Board intends to utilize the proceeds of the loan to pay the costs of the Project in an amount not currently expected to exceed $7,500,000. 4. The School Board intends that the proceeds of the loan be used to reimburse the School Board for Expenditures with respect to the Project made on or after the date that is no more than 60 days prior to the date hereof. The School Board reasonably expects on the date hereof that it will reimburse the Expenditures with the proceeds of the loan. 5. Each Expenditure was or will be, unless otherwise approved by bond counsel, either (a) of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the 45 date of the Expenditure), (b) a cost of issuance with respect to the loan, (c) a nonrecurring item that is not customarily payable from current revenues, or (d) a grant to a party that is not related to or an agent of the School Board so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the School Board. 6. The School Board intends to make a reimbursement allocation, which is a written allocation by the School Board that evidences the School Board's use of proceeds of the loan to reimburse an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. The School Board recognizes that exceptions are available for certain "preliminary expenditures," costs of issuance, certain de minimis amounts, expenditures by "small issuers" (based on the year of issuance and not the year of expenditure) and expenditures for construction of at least five years. 7. The School Board intends that the adoption of this resolution confirms the "official intent" within the meaning of Treasury Regulations Section 1.150 -2 promulgated under the Internal Revenue Code of 1986, as amended. 8. This resolution shall take effect immediately. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. Interim County Attorney Burton distributed copies of a Preliminary Official Statement and Bond Purchase Agreement for the Board's consideration. Supervisor Clark moved that the Agreement be approved and the Chairman authorized to execute it on behalf of the Board. The motion was adopted by a vote of (3 -2) with Supervisors Bunch, Clark and Wright voting in favor of the motion and Supervisors Casteen and Hall voting against the motion. /I Chairman Wright declared a break. Supervisor Casteen moved to return to the regular order of the agenda. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. /1 46 Chairman Wright called for the Parks and Recreation report. Mark W. Furlo, Director of Parks and Recreation, addressed the Board regarding a policy amendment to authorize a $250 fee to moor boats at Tyler's Beach. Supervisor Hall moved that the Board adopt the policy amendment. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 1/ Chairman Wright called for the General Services report. Eddie P. Wrightson, Director of General Services, addressed the Board regarding the Isle of Wight Health Department relocation to the former Sentara building. He advised that the roof has reached the end of its useful life and should be replaced prior to any retrofit being done to permanently relocating the health department in the former Sentara building. He stated that he is seeking authorization to begin the development of plans and specifications for replacing the Sentara building roof and to advertise the project for bid. Supervisor Casteen moved that Powell Management be authorized to proceed with the former Sentara Building roof replacement plan and specifications and advertise the project for bid. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman Wright moved that staff be authorized to perform a complete analysis regarding the future use of the former Health Department building. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Frank Holton, Assistant Director of General Services, requested authorization to move forward with the Zuni water system improvements. Supervisor Bunch moved that the County Administrator be authorized to submit a grant application for the project and further authorize capital expenditures consistent with the approved CIP to facilitate execution of the project. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 47 Mr. Holton requested permission to move forward with the development of a study to evaluate the use of floating wetlands as a component of the County's Chesapeake Bay TMDL strategy. Supervisor Clark moved that staff be authorized to submit to NFWF a letter in support of VIMS' grant application, including a commitment of in- kind match from the County should the project receive funding. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Mr. Wrightson presented a list of surplus vehicles and equipment that have been declared surplus. Chairman Wright moved that the list of vehicles and equipment be declared "surplus" and their disposal authorized through auction, sealed bid or scrap. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. // Chairman Wright called for the Tourism report. Judy H. Winslow, Director of Tourism, presented a request to hire a replacement part-time employee for the Visitor Center. Supervisor Clark moved that the Director of Tourism be authorized to immediately implement the part -time hiring procedure for this position. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Ms. Winslow requested the Board co- sponsorship of the Smithfield Pork & Fork BBQ event. Chairman Wright moved that the County be authorized to become an official co- sponsor of the Smithfield Pork & Fork BBQ contest and an adjustment of the rental fees be authorized for Heritage Park as outlined in the Board Report. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. // Chairman Wright called for the County Administrator's report. 48. County Administrator Caskey requested the Board's consideration of a Resolution to Approve the FY2011 -12 Budget for Isle of Wight Public Schools. Supervisor Bunch moved that the following Resolution be adopted: RESOLUTION TO APPROVE THE FY2011 -12 BUDGET FOR ISLE OF WIGHT PUBLIC SCHOOLS WHEREAS, the Board of Supervisors of the County of Isle of Wight, Virginia held a Public Hearing on May 4, 2011 concerning the FY2011 -12 Isle of Wight County Public Schools budget; and, WHEREAS, the budget presented by the Isle of Wight County Public Schools requested $59,436,371 in financial support from the County; and, WHEREAS, the Board of Supervisors subsequently adopted a motion that the County's budget would reflect a transfer of $57,861,769 for schools ($1,574,602 less than requested); and, WHERAS, the Isle of Wight County School Board subsequently amended its budget to be consistent with the level of funding authorized by the Board of Supervisors. NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of' Isle of Wight County, Virginia that the FY2011 -12 budget for Isle of Wight County Public Schools is hereby adopted by lump sum in the amount of $57,861,769. The motion was adopted by a vote of (4 -1) with Supervisors Bunch, Clark, Hall and Wright voting in favor of the motion and Supervisor Casteen voting against the motion. Michael W. Terry, Director of Budget and Finance, requested the Board's consideration of a Resolution to Approve the FY2011 -12 Operating and Special Revenue Budgets. Donald T. Robertson, Director of Information Resources and Legislative Affairs, addressed the Board regarding the budget process. Supervisor Clark moved that the following Resolution be adopted and that $200,000 be moved from Rescue Services - City of Franklin (ORG #1132500) to Emergency Services under part-time salaries (Object ORG #513000): RESOLUTION TO APPROVE THE FY2011 -12 OPERATING AND SPECIAL REVENUE BUDGETS 49 WHEREAS, a balanced Operating Budget for FY2011 -12 has been presented to the Board of Supervisors of the County of Isle of Wight; and, WHEREAS, the presentation offered to the Board of Supervisors also included separate revenue and expense budgets for Public Utilities and Special Revenue Budgets; and, WHEREAS, a public hearing was held on May 4, 2011. NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of Isle of Wight County, Virginia that the General Operating, Public Utilities and Special Revenue budgets for FY2011 -12 are adopted in the following amounts: General Operations $91,180,021 Museum Gift Shop $ 8,500 County Fair $ 254,211 E -911 $ 950,712 CSA $ 676,737 Section 8 Housing $ 160,904 Social Services $ 3,575,520 Public Utilities $ 4,334,142 The motion was adopted by a vote of (4 -1) with Supervisors Bunch, Clark, Hall and Wright voting in favor of the motion and Supervisor Casteen voting against the motion. The Board concurred that it wanted to review the possibility of providing monetary compensation to County staff in the September through December timeframe. County Administrator Caskey was requested to report back to the Board in four (4) months. Supervisor Clark moved that the Director of Budget and Finance be directed to create a reserve of $350,000 in the FY2012 Budget for the reassessment. The motion was adopted by a vote of (4 -1) with Supervisors Bunch, Clark, Hall and Wright voting in favor of the motion and Supervisor Casteen voting against the motion. County Administrator Caskey presented a Resolution to Waive Certain Zoning and Permit Fees for Demolition, Repair or Replacement of Structures Damaged as a Result of the April 16, 2011 Tornado for the Board's consideration. Chairman Wright moved that the following Resolution be adopted: RESOLUTION TO WAIVE CERTAIN ZONING AND PERMIT FEES FOR DEMOLITION, REPAIR OR REPLACEMENT OF STRUCTURES DAMAGED AS A RESULT OF THE APRIL 16, 2011 TORNADO 50 WHEREAS, on April 16, 2011, an EF2 tornado caused significant damage along a path more than twenty (20) miles long and resulted in a declaration of emergency in Isle of Wight County; and WHEREAS, numerous structures within the County were damaged by wind and rain; and WHEREAS, fees would normally be due for permits required to demolish, make repairs or replace such structures; and WHEREAS, the Board of Supervisors recognizes that a waiver of fees will greatly reduce the cost to these property owners in demolishing, repairing or replacing damaged structures. NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the Board of Supervisors of Isle of Wight County, Virginia that the Director of Inspections and Director of Planning and Zoning be authorized to temporarily waive fees otherwise required for building or zoning permits for demolition, repairs or replacement of structures necessitated by the April 16, 2011 tornado through October 31, 2011. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. County Administrator Caskey presented a resolution recognizing Older Americans Month 2011 for the Board's consideration. Supervisor Clark moved that the following Resolution be adopted: OLDER AMERICANS MONTH 2011 WHEREAS, the older adults in Isle of Wight County are the roots from which our community grows, who bestow gifts of wisdom and insight upon younger generations and strengthen the bonds between neighbors to create a better place to live; and, WHEREAS, our society can be enhanced by older adults aging peacefully in their communities; and, WHEREAS, the older adults in Isle of Wight County should be commended for their role in creating and bolstering the fiber of our community and nation; and, WHEREAS, our community can provide that recognition and respect by enriching the quality of life for older Americans by: 51 Increasing their opportunities to remain in their communities as active and engaged citizens Providing services, technologies and support systems that allow seniors to foster and maintain connections within the community Emphasizing the value of elders by publically recognizing their contributions to the diversity, strength and unity of our community NOW, THEREFORE, BE IT RESOLVED that the County of Isle of Wight does hereby proclaim May 2011 to be Older Americans Month and urges every citizen to take time this month to honor our older adults and the professionals, family members and volunteers who care for them. Recognition of older Americans and their involvement in our lives can help us achieve stronger and more meaningful connections with each other and enrich our community's quality of life. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. County Administrator Caskey presented a request by the Budget & Finance Director to fill the Payroll Technician position for the Board's consideration. Supervisor Casteen moved that staff be authorized to fill the Payroll Technician position. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. /1 Chairman Wright called for Appointments. There were no appointments offered for consideration by the Board. Chairman Wright called for Old Business. Supervisor Casteen notified the Board that Charter Communications is now requiring its customers to purchase a box for $5 for each television in order for a customer to continue getting the same package provided to them for the last number of years. He stated this is, in effect, raising their revenue for the same programming Charter Communications has been providing for years. 52 Supervisor Casteen moved that County Administrator Caskey be directed to contact the Charter Communications Manager and request that he make a presentation to the Board and that Interim County Attorney Burton be directed to advise the Board whether or not Charter Communications, under its existing agreement, has the authority to begin charging customers for set boxes in customer's homes in order for them to continue receiving the same services they have been paying for in the past. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton requested authorization to advertise for public hearing an Ordinance to Amend and Reenact the Isle of Wight County Code by Amending and Reenacting Chapter 15. Taxation. Article II. Real Estate Taxes. Section 15 -6.2. Biennial General Reassessments of Real Estate. Chairman Wright notified the Interim County Attorney that a motion was made earlier under the County Administrator's report by Supervisor Clark that the Director of Budget and Finance be directed to create a reserve of $350,000 in the FY2012 Budget for the reassessment. Interim County Attorney Burton withdrew his request. Regarding the issue of funding of Schoolhouse Museum staff to the Isle of Wight County Historic Resources Division, Supervisor Casteen moved that the Board grant a donation of $6,500 in FY12 to the School House Museum to assist with funding for one (1) year. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Regarding a request for financial support from the Isle of Wight Branch of Preservation Virginia, Supervisor Casteen moved that the request be approved in the amount of $2,500 in the FY2012 Budget. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. // Chairman Wright called for New Business. Sheriff Phelps requested a waiver of the 90 -day hiring period to allow him to reinstate an employee. Supervisor Clark moved that the waiver be approved effective the day after the employee left employment. The motion was adopted by a vote of 53 (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 1/ Interim County Attorney Burton requested a closed meeting pursuant to Section 2.2- 3711A.5 of the Code of Virginia regarding discussion concerning a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business' or industry's interest in locating or expanding its facilities in the community; under Section 2.2- 3711.A.5 regarding discussion concerning a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business' or industry's interest in locating or expanding its facilities in the community; under Section 2.2- 3711.A.7 regarding consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body and consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. Supervisor Casteen moved that the Board enter the closed meeting for the reasons stated. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Chairman 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; 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. 54 VOTE AYES: Bunch, Casteen, Clark, Hall and Wright NAYS: 0 ABSENT DURING VOTE: 0 ABSENT DURING MEETING: 0 Chairman Wright moved that the Director of Economic Development is to advise the Industrial Development members that the Board is in support of its purchase of certain real estate. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. /1 At 10:25 p.m., Supervisor Hall moved that the Board adjourn its meeting. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Clark, Casteen, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. grey lls Storm, Clerk 55 omas J. Wf fight, . , Chairman