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HomeMy WebLinkAbout10/17/1991 - Special October 17, 1991 727 Roanoke County Board of Supervisors Roanoke County Administration Center 3738 Brambleton Avenue S. W. Roanoke, Virginia 24018 October 17, 1991 The Roanoke County Board of Supervisors of Roanoke County, Virginia, met this day at the Roanoke County Administration Center, this being an adjourned meeting from Tuesday, October 8, 1991 for the purpose of accepting bids for the General Obligation and Water Revenue Bonds for the Spring Hollow Reservoir. IN RE: CALL TO ORDER Chairman McGraw called the meeting to order at 3:11 p.m. The roll call was taken. MEMBERS PRESENT: Chairman Steven A. McGraw, Vice Chairman Harry C. Nickens, Supervisors Lee B. Eddy, Bob L. Johnson, Richard W. Robers MEMBERS ABSENT: None STAFF PRESENT: Elmer C. Hodge, County Administrator; Paul M. Mahoney, County Attorney; Mary H. Allen, Clerk to the Board; John R. Hubbard, Assistant County Administrator, John M. Chambliss, Assistant County Administrator, Don M. Myers, Assistant County Administrator, Anne Marie Green, Information Officer IN RE: INVOCATION 128 October 17, 1991 The invocation was given by Assistant County Administrator John M. Chambliss IN RE: WORK SESSION ~ Financina of the SÞrina Hollow Water proiect Present for the work session were financial advisor Jim Johnson, Wheat First Securities; bond counsel George Scruggs, MCGuire, Woods, Battle and Boothe; Underwriter Kevin Quinn, Alex Brown and Sons, Inc., and County Finance Director Diane Hyatt. Ms. Hyatt announced that the County had pledged $15 million general obligation bonds at 6.48% and pledged $59.7 million water revenue bonds at 6.59%. She reported that the interest rates are as low as they have been in a decade and the net savings to the County was $11,103,000. She advised that the general obligation bonds were rated Aa by Standard and Poor's and Moody's, and the revenue bonds received a AAA rating from Standard & Poor's, Moody's and Fitch. Ms. Hyatt reported that the savings will be used to payoff an existing revenue bond, to offset the loss of investment income, to reimburse the County $2 million for previous expenditures and to strengthen the bond coverage. Mr. Johnson, Wheat First Securities presented the financing timetable. Mr. Quinn and Mr. Scruggs who prepared the resolutions and other documents were available to answer questions. IN RE: NEW BUSINESS October 17, 1991 729 h AcceÐtance of Sale of $15 million General Obliaation Bonds. R-101791-1 Supervisor Johnson moved to adopt the prepared resolution accepting the sale of $15 million General Obligation Bonds. Supervisor Eddy presented the following comments that he requested be included in the minutes. "Mr. Chairman, I am pleased that the bond interest rates appear to be so attractive. I am also pleased that the combined amount of the bond issue has been moderately reduced from that previously estimated as a result of the low interest rates and the favorable construction bids received on the reservoir portion of the project. I think most of the teams involved in developing the financing package have performed very well, and are to be commended. However, I plan to vote against the resolutions ratifying the terms of the bond sales for the following reasons: 1. I have previously opposed the Spring Hollow Project and the bond issues, and I intend to act in a consistent manner. 2. The Spring Hollow Project has a very high cost-to- benefit ratio. 3. In my opinion, alternate sources and arrangements have not been evaluated to a sufficient degree to demonstrate, without question, that the Spring Hollow Project financed entirely by Roanoke County is the best solution to the Roanoke Valley's water needs in the foreseeable future. 4. The County is approaching the overall project on a 730 October 17, 1991 "--- i---- '-- piecemeal basis. It has not yet obtained all necessary permits, has not determined the basic design of the water treatment facilities, and does not know for certain how or if the entire system will work together. 5. As a minimum, I believe that the bond sale and reservoir construction contract should be deferred until all elements of the project are known and until reasonable assurance is obtained that all necessary permits will be granted." Supervisor Johnson also asked that he be allow to prepare written comments for the minutes, however, he later decided not to prepare comments. Supervisor Johnson's motion was carried by the following recorded vote: AYES: Supervisors Robers, Johnson, Nickens, McGraw. NAYS: Supervisor Eddy RESOLUTION 10791-1 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ROANOKE, VIRGINIA WITH RESPECT TO $15,000,000 GENERAL OBLIGATION WATER SYSTEM BONDS, SERIES 1991 The Board of Supervisors ("Board") of the County of Roanoke, Virginia ("County") adopted a Resolution on August 27, 1991 ("Resolution"), authorizing the issuance and sale of the County's $15,000,000 General Obligation Bonds, Series 1991 ("Bonds"). A Preliminary Official Statement with respect to the Bonds has been prepared and distributed pursuant to the Resolution and the Board proposes to approve the sale of the Bonds pursuant to a Bond October 17, 1991 73 1 ---_._-~-~_."- - --~ ---~- ----_.__._.,--_.__._----,._-~-- ---------. Purchase Agreement, dated as of October 17, 1991 ("Bond Purchase Agreement") with Alex. Brown & Sons Incorporated, Craigie Incorporated, Merrill Lynch & Co. and Scott & Stringfellow Investment Corp. ("Underwriters"). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ROANOKE, VIRGINIA: 1. Ratification of Terms. The issuance and sale of theBonds upon the terms and conditions set forth in the BondPurchase Agreement are approved and ratified. 2. Ratification of preliminarv Official statement: Execution of Official Statement. The Preliminary Official Statement is deemed final as of its date except for the omissionof certain Information such as offering prices, interest rates, selling compensation and other information permitted by Rule 15c- 2-12 (b) of the Securities and Exchange Commission. The Chairman of the Board is authorized and directed to execute and deliver the Official Statement with respect to the issuance and sale of the Bonds in substantially the form of the Preliminary Official Statement with such changes that are not inconsistent with Rule 15c-2-12 as such officer may consider necessary or desirable in connection therewith and such Official Statement is hereby approved. 3. ApDroval and Execution of Bond Purchase Aqreement. The Bond Purchase Agreement is approved in substantially the form submitted at this meeting, with such changes, insertions or omissions as may be approved by the Chairman of the Board or the 732 October 17, 1991 County Administrator, whose approval shall be evidenced conclusively by the execution and delivery of the Bond Purchase Agreement. The execution and delivery of the Bond Purchase Agreement is approved, ratified and confirmed. 4. Further Actions. The Chairman of the Board and the County Administrator, and such officers and agents of the County as either of them may designate, are authorized and directed to do and perform such things and acts as they shall deem necessary or appropriate to carry out the transactions authorized by this Resolution or contemplated by the Bonds and the Bond Purchase Agreement, and all of the foregoing previously done or performed by such officers or agents of the County are in all respects approved, ratified and confirmed. 5. Filinq of Resolution. The County Attorney is authorized and directed to file a certified copy of this Resolution with the Circuit Court of the County of Roanoke, Virginia pursuant to Section 15.1-227.9 of the Code of Virginia of 1950, as amended. 6. Effective Date. This Resolution shall take effect immediately. On motion of Supervisor Johnson to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Robers, Johnson, Nickens, McGraw NAYS: Supervisor Eddy ~ AcceÐtance of sale of $59.731.874 Water System Revenue Bonds. October 17, 1991 7J J .......---.-.-------,-.--------- ~-- ."-- ~-- R-101791-2 Supervisor Johnson moved to adopt the resolution accepting the sale of $59,731,874 Water Revenue Bonds. The motion was carried by the following recorded vote: AYES: Supervisors Robers, Johnson, Nickens, McGraw. NAYS: Supervisor Eddy RESOLUTION 10791-2 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ROANOKE, VIRGINIA WITH RESPECT TO WATER SYSTEM REVENUE BONDS, SERIES 1991 The Board of Supervisors ("Board") of the County of Roanoke, Virginia ("County") adopted a Resolution on August 27, 1991 ("Resolution"), authorizing the issuance and sale of the County's Water System Revenue Bonds, Series 1991 ("Bonds"). The Bonds will be issued pursuant to the following documents: (i) Master Indenture of Trust, dated as of October 1, 1991, between the County and Crestar Bank, as Trustee ("Trustee"); (ii) First Supplemental Indenture of Trust, dated as of October 1, 1991, between the County and the Trustee; (iii) Preliminary Official Statement with respect to the sale of the Bonds, dated October 4, 1991; and (iv) Bond Purchase Agreement, dated October 17, 1991 ("Bond Purchase Agreement") among the County and Alex. Brown & Sons, Incorporated, Craigie Incorporated, Merrill Lynch & Co. and Scott & Stringfellow Investment Corp., as Underwriters ("Underwriters") . All of the documents listed above, except the Preliminary Official Statement, are referred to in this Resolution as the 734 October 17, 1991 "Basic Documents". NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ROANOKE, VIRGINIA; 1. Ratification of Terms. The issuance and sale of the Bonds in the amount and upon the terms and conditions set forth in the Basic Documents are approved and ratified. 2. Ratification of Preliminary Official Statement: Execution of Official Statement. The Preliminary Official Statement is deemed final as of its date except for the omission of certain information such as offering prices, interest rates, selling compensation and other information permitted by Rule 15c- 2-12 (b) of the Securities and Exchange Commission. The Chairman of the Board is authorized and directed to execute and deliver the Official Statement with respect to the issuance and sale of the Bonds in substantially the form of the Preliminary Official Statement with such changes that are not inconsistent with Rule 15c-2-12 as such officer may consider necessary or desirable in connection therewith and such Official Statement is hereby approved. 3. ADDroval and Execution of Basic Documents. The Basic Documents are approved in substantially the forms submitted to the County at this meeting with such changes, insertions or omissions (including, without limitation, changes of the dates thereof) as may be approved by the Chairman of the Board or the County Administrator, whose approval shall be evidenced conclusively by the execution and delivery of the Basic October 17, 1991 735 -------_._",--_.,_._----- -.- .--- <_.--~._._-"..~._".- ._-- , --. - -----_._----~._._..'._-_.-."._----_.._---.-_.~._--_._-. Documents. The execution and delivery of and performance by the County of the Basic Documents are authorized. 4. Ratification of Escrow Agreement. The County has defeased the outstanding principal amount of its $960,000 Water System Revenue Bond, Series 1988A ("VRA Bond") pursuant to the Escrow Agreement, dated as of October 1, 1991 ("Escrow Agreement") among the County, Crestar Bank, as Escrow Agent and the Virginia Resources Authority. The execution and delivery of the Escrow Agreement and all actions in connection with the defeasance of the VRA Bond taken or required to be taken by the County Administrator, and such officers and agents of the County as he may designate, are hereby approved, ratified and confirmed. 5. Further Actions. The County Administrator, and such officers and agents of the County as he may designate, are authorized to execute and deliver on behalf of the County such instruments, documents or certificates, and to do and perform such things and acts, as they shall deem necessary or appropriate to carry out the transactions authorized by this Resolution or contemplated by the Bonds, the Escrow Agreement and the Basic Documents; and all of the foregoing, previously done or performed by such officers or agents of the County, are in all respects approved, ratified and confirmed. 6. Filina of Resolution. The County Attorney is authorized and directed to file a certified copy of this Resolution with the Circuit Court of the County of Roanoke, Virginia pursuant to Sections 15.1-227.9 of the Code of Virginia of 1950, as amended. 736 October 17, 1991 -.--' .....-.- --. --< <----_._~------~--~,_._-_._-------_.._-_._~--_._--,~..- "'~'"--'---- 7. Effective Date. This Resolution shall take effect immediately. On motion of Supervisor Johnson to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Robers, Johnson, Nickens, McGraw NAYS: Supervisor Eddy IN RE: EXECUTIVE SESSION At 4: 05 p.m., Supervisor Nickens moved to go into Executive Session pursuant to the Code of Virginia 2.1-344 (a) (7) for consultant with legal counsel regarding the landfill contract negotiations. The motion was carried by the following recorded vote: AYES: Supervisors Eddy, Robers, Johnson, Nickens, McGraw NAYS: None IN RE: CERTIFICATION RESOLUTION R-101791-3 At 5:03 p.m. Supervisor Johnson moved to return to Open Session and adopt the certification resolution. The motion was carried by the following recorded vote: AYES: Supervisors Eddy, Robers, Johnson, Nickens, McGraw. NAYS: None RESOLUTION 101791-3 CERTIFYING EXECUTIVE MEETING WAS HELD IN CONFORMITY WITH THE CODE OF VIRGINIA WHEREAS, the Board of Supervisors of Roanoke County, October 17, 1991 737 - - - ,"".~- .---.--------------...,--.-.----.------ Virginia has convened an executive 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 2.1-344.1 of the Code of Virginia requires a certification by the Board of Supervisors of Roanoke County, Virginia, that such executive meeting was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED, that the Board of Supervisors of Roanoke County, Virginia, hereby certifies that, to the best of each members knowledge: 1. Only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting which this certification resolution applies, and 2. Only such public business matters as were identif ied in the motion convening the executive meeting were heard, discussed or considered by the Board of Supervisors of Roanoke County, Virginia. On motion of Supervisor Johnson, and carried by the following recorded vote: AYES: Supervisors Eddy, McGraw, Johnson, Nickens, Robers NAYS: None IN RE: ADJOURNHENT At 5:04 p.m., Supervisor Johnson moved to adjourn. The motion carried by a unanimous voice vote. ~~a'7?t¿~ Steven A. McGraw, Chairman Yf7d.- -.._'-.-~-_._.--"--_.._-_._---------