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HomeMy WebLinkAbout2/29/1988 - Special February 29, 1988 57~7 Roanoke County Board of Supervisors Roanoke County Administration Center 3738 Brambleton Avenue, SW Roanoke, Virginia 24018 February 29, 1988 The Roanoke County Board of Supervisors of Roanoke County, Virginia, met this day at the Roanoke County Administration Center, this being a special adjourned meeting from February 23, 1988. I IN RE: CALL TO ORDER Chairman Garrett called the meeting to order at 8:03 a.m. The roll call was taken. MEMBERS PRESENT: Chairman Lee Garrett, Vice Chairman Richard Robers, Supervisors Bob L. Johnson, Harry C. Nickens MEMBERS ABSENT: Supervisor Steven A. McGraw <arrived at 8:10 a.m.) STAFF PRESENT: Elmer C. Hodge, County Administrator; John M. Chambliss, Assistant County Administrator for Management Services; Paul M. Mahoney, County Attorney, Mary H. Allen, Deputy Clerk I ~ 57·8 February 29, 1988 "-..~-,-- _._.~ - -- -_._-~--~_. -.-.- Chairman Garrett announced this meeting was called t discuss an item that was continued from the February Chairman Garrett also advised those present that the regularl scheduled meeting for March 8, 1988 will be convened briefly an then adjourned until March 9, 1988. The reason for is because the presidential primary will be held on March 8th, and the Community Room will be used as a voting precinct. IN RE: NEW BUSINESS of $3 ation School Bonds to finance I 1. Ado tion of an Ordinance authorizin the Issuance im rovements to the Bent Mountain and Back Creek Elementar Schools: Chairman Garrett announced that a public hearing 0 this issue had been held on February 23rd, but approval of th ordinance was continued to allow staff time to study other possible alternatives for financing of this bond. Assistant County Administrator John Chambliss advise they had studied three alternatives: (1) proceeding issuance of the bond through the spring issue by the Virgini Public School Authority; (2) selling the bonds during the fall issue by the Virginia Public School Authority; and (3) the use of literary fund loans. Staff still recommends going forward with I the spring issue of Virginia Public School Authority. I I 579 February 29, 1988 Supervisor Robers stated his calculations show tha over a 20 year period the County could save $1.5 million by usin literary loans, and inquired if it was possible to apply for these loans to pay back the VPSA loan. Mr. Chambliss advise that the County cannot use literary fund loans to pay back VPS loans. County Attorney Paul Mahoney reported he had met with bond counsel prior to the meeting and they recommended that the Board adopt an Ordinance authorizing the issuance of the bonds instead of a resolution. This action is more appropriate because Roanoke County operates under a charter, similar to cities. To pass the ordinance on this date, it will be necessary to waive the second reading. Supervisor Garrett moved to adopt the prepared ordinance to proceed with funding by the Virginia Public School Authority in the spring issue. The motion was seconded by Supervisor Nickens. Supervisor Johnson moved to waive second reading of the ordinance. The motion was seconded by Supervisor Nickens. Supervisor Robers directed the staff to continue to pursue ways in which the County may save the $1.5 million dollars in interest on this loan. Both motions carried by the following recorded vote: Supervisors Johnson, Robers, McGraw, Nickens, Garrett AYES: 58'0 February 29, 1988 -_._.~_._--~ _____.__.~_ ___________··'n_ ~ -- .._-,_._----- --- --- -,_.. .__.--_.- _. -,'--' -_. -~"._.'- -- ___~.,.~~_~~._ __.__._._ _.___..... ~.".. "'_M,_ NAYS: None ORDINANCE 22988-1 AUTHORIZING THE ISSUANCE OF $3,985,000 GENERAL OBLIGATION SCHOOL BONDS, SERIES OF 1988A OF THE COUNTY OF ROANOKE, VIRGINIA, TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY, AND SETTING FORTH THE FORM AND DETAIL THEREOF. The Board of Supervisors of the County of Roanoke, Virginia ("County") has determined that it is necessary and expedient to borrow $3,985,000 and to issue its general obligation bonds therefore ("Bonds") to finance renovations and improvements to Back Creek Elementary School and Bent Mountain Elementary School. The County has held a public hearing on the issuance of the Bonds on February 23, 1988, in accordance with the requirements of Section l5.1-171.1 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ROANOKE, VIRGINIA: 1. That the first reading on this ordinance was held on February 23, 1988; the second reading was dispensed with pursuant to the emergency measure provision of Section 18.04 of the Roanoke County Charter. 2. The Board of Supervisors hereby determines that it is advisable to contract a debt and to issue and sell the Bonds in the amount of $3,985,000 for the purpose of financing renovations and improvements to Back Creek Elementary School and Bent Mountain Elementary School. The issuance and sale of the Bonds upon terms established in this resolution of the Board of Supervisors is hereby authorized. 3. It is hereby determined to be in the best interest of the County and the Commonwealth of virginia to accept the offer of the Virginia Public School Authority ("VPSA") to purchase the Bonds at par, upon the terms set forth in this Resolution. The VPSA is an agency of the Commonwealth of Virginia pursuant to Article VII, Section 10(b) of the Constitution of Virginia prescribed by the General Assembly pursuant to Section 22.1-l66 of the Code of Virginia of 1950, as amended. I I 581 ' February 29, 1988 4. The appropriate officers of the County are hereby authorized and directed to enter into a bond sale agreement with the VPSA providing for the sale of the Bonds to the VPSA. 5. The County Administrator is hereby authorized and directed to accept the interest rate or rates on the Bonds established by VPSA, provided that such interest rate or rates shall be equal to the interest rate or rates on the corresponding bonds of the VPSA plus .lO% and in any event the true interest cost to the County shall not exceed 9% per annum. 6. The Bonds shall be issued in fully registered form in denominations of $5,000 and whole multiples thereof; shall be dated the date of issuance and delivery of the Bonds; shall be designated "COUNTY OF ROANOKE GENERAL OBLIGATION SCHOOL BONDS, SERIES 1988 A", and shall bear interest payable semi-annually on June 15 and December 15, beginning December 15, 1988, at the rates established in accordance with paragraph 4 of this Resolution, and shall mature in the amounts set forth below on December 15 in each of the years 1988 to 2007 inclusive: I Year Amount Year Amount 1988 $110,000 1998 $230,000 1989 180,000 1999 230,000 1990 185,000 2000 230,000 1991 225,000 2001 235,000 1992 225,000 2002 2l0,000 1993 225,000 2003 160,000 1994 240,000 2004 220,000 1995 240,000 2005 175,000 1996 240,000 2006 lOO,OOO 1997 240,000 2007 85,000 The Bonds shall be in substantially the form attached hereto as Exhibit A. I 7. Bonds maturing on or before December 15, 1998 are not subject to redemption prior to maturity. Bonds maturing after December 15, 1998 are subject to redemption at the option of the County prior to maturity in whole, but not in part, on any business day on or after December 15, 1998, from any moneys that may be made available for such purpose, at the redemption price indicated below, expressed as a percentage of the principal amount of each Bond to be redeemed, together with accrued interest thereon to the redemption date: 58"2 February 29, 1988 - - -_.- - ~ - -- "--.'. ----- --~_._~._---..._----~--- ~- Dates (Inclusive) Redemption Price December 15, 1998 to December l4, 1999 December 15, 1999 to December l4, 2000 December l5, 2000 to December 14, 2001 December 15, 2001 and thereafter 103% 102 101 100 Notwithstanding the foregoing provisions, so long as the Bonds are held by the VPSA, the Bonds shall not be subject to redemption prior to maturity without the prior written consent of the VPSA. The Treasurer of the County shall mail notice of any such redemption prior to maturity by registered or certified mail at least 30 days prior to the date fixed for redemption to the registered owner of any Bond to be redeemed at such owner's address as it appears on the registration books kept by the Treasurer as of the close of business on the 45th day preceding the date fixed for redemption. Such notice shall specify the redemption date and price, the place where such Bonds are to be surrendered for payment and that on the redemption date the redemption price will become due and payable on the Bonds and interest thereon shall cease to accrue from and after the redemption date. 11 8. The Chairman and the Clerk of the Board are authorized and directed to execute appropriate negotiable Bonds in the aggregate principal amount of $3,985,000 and to affix the seal of the County thereto. The manner of execution and affixation of the seal may be by facsimile, provided, however, that if the signatures of the Chairman and the Clerk are both by facsimile, the Bonds shall not be valid until signed at the foot ¡thereof by the manual signature of the Bond Registrar. II 9. Crestar Bank, Richmond, Virginia, is hereby ¡appointed Bond Registrar for the Bonds and is authorized and directed to take all action necessary to fulfill such appointment. 10. The full faith and credit of the County are hereby irrevocably pledged for the payment of principal of, premium, if any, and interest on the Bonds. There shall be levied and I February 29, 1988 588 ~ I collected annually on all locally taxable property in the County an ad valorem tax over and above all other taxes authorized or limited by law sufficient to pay such principal, premium, if any, and interest as the same respectively become due and payable unless other funds are lawfully available and appropriated for the timely payment thereof. ll. The Clerk of the Board of Supervisors is hereby authorized and directed to cause a certified copy of this ordinance to be presented to the School Board of the County of Roanoke and filed with its Clerk. The Bonds hereby authorized shall not be issued by the Board of Supervisors until the County School Board shall have adopted an appropriate resolution consenting to the issuance of the Bonds. I 12. The appropriate officers and agents of the County are hereby authorized and directed to execute a Non-Arbitrage Certificate and Tax Covenants setting forth the expected use and investment of the proceeds of the Bonds and containing such covenants as may be necessary in order to show compliance with the provisions of Section l48 of the Internal Revenue Code of 1986, as amended, and applicable regulations relating to "arbitrage bonds." The Board of Supervisors of the County covenants on behalf of the County that the proceeds from the issuance and sale of the Bonds will be invested and expended as set forth in such Non-Arbitrage Certificate and Tax Covenants and that the County shall comply with the other covenants and representations contained therein. The appropriate officers of the County are hereby authorized and directed to execute and deliver the Proceeds Agreement with respect to the deposit and investment of proceeds of the Bonds in the form approved by the County Attorney, among the County, the other participants in the VPSA bond sale, the VPSA and the financial institution designated therein as depository. 13. Crestar Bank, Richmond, Virginia is hereby designated Paying Agent for the Bonds. I 14. Appropriate officers or agents of the County are hereby authorized and directed to cause a certified copy of this ordinance to be filed with the Circuit Court of the County of Roanoke and within ten days thereafter to cause to be published once in a newspaper having general circulation in the County a notice setting forth (l) in brief and general terms the purposes for which the Bonds are to be issued and (2) the amount of such Bonds. r 584 February 29, 1988 .~_,__.__,~.____...____._____n'_~_·__._'· _ _____._,~,___________,._____.__._____.._._..<_.__._..,.._.__.._-~ --- --.'--'-- -- .--.----- -·15-~---iãcnffielùD-;------=-=--·--- - -:;---------- --- --------~-:-·--~-;-~----·-:-·--aii· other officers and employees of the County are hereby authorized to take such action as they or anyone of them may consider necessary or desirable in connection with the issuance and sale of the Bonds and any such action previously taken is hereby ratified and confirmed. 16. This ordinance shall take effect immediately. The undersigned Clerk of the Board of Supervisors of the County of Roanoke, Virginia, hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meetings of the Board of Supervisors held on February 23, 1988, and February 29, 1988, and of the whole thereof so far as applicable to the matters referred to in such extract. On motion of Supervisor Garrett, seconded by Supervisor Nickens, and Second Reading of the Ordinance waived on motion of Supervisor Johnson, seconded by Supervisor Nickens and upon the following recorded vote: AYES: NAYS: Supervisors Johnson, Robers, McGraw, Nickens, Garrett None IN RE: ADJOURNMENT At 8:25 a.m., Supervisor Robers moved to adjourn the meeting. The motion was seconded by Supervisor Nickens and carried by a unanimous voice vote. ~a _0p~~r Lee arrett, Chairman I I