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
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October 17, 1991
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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
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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
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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
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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
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"'~'"--'----
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
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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.-
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