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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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-
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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.
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Interim County Attorney Burton advised that he had three (3) matters
to discuss with the Board later during the closed meeting.
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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.
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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.
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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
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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
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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
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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.
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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.
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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)
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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
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"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
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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.
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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
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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.
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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.
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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:
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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
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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
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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
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(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.
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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