12-18-85 MinutesBOARD OF SUPERVISORS
MINUTES
DBCEM~ER 18, 1985
Supervisors in Attendance:
Mr. G. H. Applegate, Chairman
Mr. Jesse J. Hayes, Vice Chairman
Mr. R. Garland Dodd
Mr. Richard L. Hedriek
County Administrator
Staff in Attendance:
Mr. Steve Mioa$, County
Attorney
Mr. M. U. Stith, Jr.,
Exec. Asst., Co. Admin.
Supervisors Absent:
Mr. Harry G. Daniel
Mrs. Joan Girone
Mr. Applsgate called the meeting to order at the Office of the
Treasurer of the Commonwealth of Virginia, James Monroe Building,
City of Richmond, at I1:00 a.m. (EST).
1. ACCEPTANCE OF PROPOSAL FOR PUBLIC IMPROVEMENT BONDS
On motion of Mr. Dodd, seconded by Mr. Hayes, the Board adopted
the following resolution:
A RESOLUTION ACCEPTING A PROPOSAL FOR
THE PURCHASE OF SIXTY-TWO MILLION THREE
HUNDRED T~OUSA~D DOLLARS ($62,300,000)
PRINCIPAL S~40UNT OF PUBLIC IMPROVENLENT
BONDS, SERI~B OF 1985, OF THE COUNT¥ OF
CHESTERFIELD; FIXING THE INTEREST RATES
TO BE BORNE BY SUCH BONDS; APRROVING TEE
FORM OF A~ OPFICIAL STATEMENT AND THE
DISTRIBUTION THEREOF; DESIGNATING AND
GIVING IRREVOCABLE INSTRHCTIONS EOR THB
REDEMPTION ON APRIL 1, 1986 OF SUCH
COUNTY'S ~fENTY-TWO MILLION DOLLARS
($22,000,000) PRINCIPAL ~4OUNT GENERAL
OBLIGATION BOND ANTICIPATION NOTES,
SERIES OV 1994; RATIFYING CERTAIN ACTS
AND PROCEEDINGS; AND OTHERWISE PROVIDING
FOR THE ISS6ANCE OF SUCH BONDS
BE IT RESOLVED BY THE BOARD OF SUPERVISORB OF THE
COUNTY OF CHESTERFIELD, VIRGINIA:
SECTION 1. Findings and Determinations. Pursuant to a
resolution adopted by this Board on December 11, 1985, entitled
"A RESOULTION AUTHORIZING A~D PROVIDING FOR T~E ISSUANCE, SALE
AND DELIVERY OP SIXTY-TWO MILLION THREE HUNDRED THOUSAND DOLLARS
($62,300,000) PRINCIPAL A}~OUNT OF PUBLIC IMPROVEMENT
SERIES OF 1985, OF THE COUNTY OF CHESTERFIELD" (the "1985
Authorizing Resolution"), a Notice of Sale (the "Notice of Sale")
of Sixty-Two Million Three Hundred Thousand Dollars ($62,300,000)
principal smount of Public Improvement Bonds, Series of 1985 (th~
"Sends"), was duly published on December 11, 1985, in The Bond
Bayer, a financial journal published in the City of Ne~ ~ New
York.
The Notice of Sale provided that sealed proposals for
the purchase of the Bonds would be received by or on behalf of
the County of Chesterfield, Virginia (the *'County"), at the
of£ice of the Treasurer of the Commonwealth of Virginia, James
85-976'
Monroe Building, 101 North 14th Street, 3rd Floor, Richmond,
Virginia 23219, until 11:00 a.m., Virginia time, on Wednesday,
December 18, 1985, at which time and place all proposals would be
publicly opened. Pursuant to the Notice of Sale, five (5)
proposals for the purchase of the Bond~ were received, each
accompanied by a certified or bank treasurer's or cashier's good
faith check payabl~ to the order of the County Of Chesterfield,
Virginia, in the amount of $1,246,000. The names of the bidders
submitting each such proposal, the purchase price far the Bonds
specified in each such proposal and the "True" or "Canadian"
interest cost to the County resulting from each such proposal are
as follows:
Name of Bidder
Bankers Trust Co. & Assoc.
Tha Chase Manhattan Corp.
Smith Barney, Harris
Upham & Co., ~nc.
CitiCorp Investment Bank
The Northern Trust Co.
Purchase Price
specified
$62,311,617.60
$62,312,460.00
$62,306,055.40
$62,300,000.00
$62,301,618.20
Interest
Cost
7.6045%
7.6891%
7.655368%
7.643%
7.696661%
After due Consideration of all such proposals, this
Board finds that (a) Bankers Trust Company and Associates (the
"Purchaser") is a responsible bidder, (b) of the proposals
received, the proposal of the Purchaser (the "Proposal") i~ the
proposal to purchase the Bonds at the lowest "True" or "Canadian"
interest cost to the County, computed by doubling the ~emianuual
interest rate (compound semiannually) necessary to discount the
debt service palmments from their respective paln~ent dates to the
date of the Bonds and to the price bid, not including interest
accrued, if any, to the date of delivery, and (c) the Proposal is
the best proposal received, is in aec0rdance with the provisions
of the Notice of Sale, and should be accepted.
SECTION 2. Acceptance of Proposal. The Proposal,
being a proposal to purchase the Bonds at the price of Sixty-two
million, three hundred eleven thousand, six hundred seventeen and
60/100 ($62,311,617.60), plus accrued interest from the date of
th~ Bonds to the date of delivery thereof to and payment therefor
by the Purehaser~ with the Bonds to bear interest at the rates
per annum specified in Section 4 hereof, is hereby accepted and
the Bonds are hereby awarded to the Purchaser.
SECTION 3. Good Faith Checks. The good faith checks
of the unsuccessful bidders shall be returned forthwith. The
good faith check of the Purchaser will be deposited by the County
and the proceeds thereof credited against the purchase price due
for the Bonds upon their delivery or retained as and for
liquidated damages in the event the Puroha~e~ fails to take up
and pay for the Bonds in accordance with the Proposal.
SECTION 4. Interest Rates. The Bonds maturing in each
of the years specified below sha~ear interest at the rate per
annum set forth opposite such year, to wit:
85-977
Interest Interest
Year Rate Year Rate
1988 7.00% 1998 7.50%
1989 9.00 1999 7.60
1990 9.00 2000 7.70
1991 8.75 2001 7.80
1992 8.50 2002 7.50
1993 7.00 2003 7.50
1994 7.10 2004 7.50
1995 7.20 2005 7.50
1996 7.30 2006 7.50
1997 7.40
S~CTION 5. ~×ecution and Delivery of the Bonds. The
Chairman and Clerk of this Beard, the County Administrator, the
County Treasurer and other appropriate officers, employ~s and
agents of the County are hereby authorized and directed to take
all such action and to execute such instruments as shall be
deemed by them to be necessary Or appropriate to effect the
printing, execution and issuance of the Bonds and the delivery of
the Bonds to the Purchaser in accordance with the terms of the
Proposal, the Notice of Sale, the resolution referred to in
Section 1 hereof and this resolution, upon receipt of the
purchase price therefor as set forth in Section 3 hereof, and for
the proper application and use of the proceeds of such sale. The
County hereby agrees with the Purchaser that in the event the
Bonds in definitive form are not available for delivery on or
before December 31, 1985, the County shall, if requested to do so
by the Purchaser, deliver manuscript temporary Bonds On er prior
to that date, such manuscript temporary Bondn to be manually
executed by the Chairman and the Clerk of this Board and
impressed with the corporate seal of this Board and manually
authenticated by thc Registrar. The Bonds in definitive form
shall be exchanged for such manuscript temporary Bonds as soon as
practicable after January 1, 1986.
S~CTION 6. Preliminary official Statement; 0£ficial
Statement; Certification Coneernzng Official statement. The
Chairman of this Board and the County Administrator are hereby
authorized and directed to execute and deliver to the Purchaser
copies of an Official Statement of the County relating to the
Bonds, in substantially the form of the Preliminary Official
Statement of the County relating to the Bonds, dated December 12,
1985 (the "Preliminary Official Statement"), after the same has
b~en completed by the insertion of the interest rates to be borne
by the Bonds and by making such other insertions, changes or
correction~ as the County Administrator, based on the advice of
the County's financial advisors and legal counsel, deems
necessary or appropriate; and this Board hereby authorizes such
Official Statement and the information contained therein to be
used by the Purchaser in connection with the sale of the Bonds.
The County Administrator and the Director of Budget and
Accounting are hereby authorized and directed to execute on
behalf of the County and deliver to the Purchaser the certificate
referred to in the Official Statement under the caption
"Certificate Concerning Official Statement".
S~CTION 7. Designation of the County's $22,000~0.09
General Obligation Bond Anticipation Notes, Series of i984, ~or
Redemption on April 1, 1986. This Board hereby designates the
County's Twenty-Two Million Dollars ($22,000,000) aggregate
principal amount of General Obligation Bond Anticipation Notes,
Series of 1984, dated October 9, 1984 (the "1984 Notes"), for
redemption on April 1, 1985, at a redemption price equal to 100%
o~ the principal amount thereof, plus the interest, if any,
accrued thereon to the date fixed for r~demptlon. The County
Administrator is hereby authorized and directed to deliver to
Central Fidelity Bank, the Registrar for the 1984 Notes,
irrevocable written instructions to give notice, in th~ name and
on behalf of the County, to the holders of the 1984 Notes of the
redemption cf the 1984 Notes on April 1, 1986, such notice to be
85-978
given in the manner and at the time or times as provided in
Section 4 of the resolution adoRted by this Board on Sept~lber
26, 1984 accepting a proposal for the purchase of the 1984 Notes.
The County hereby covenants and agrees with the holders of the
Bonds to apply to the payment of the principal of the 1984 Notes
payable upon the redemption thereof on April 1, 1986 as herein
provided such portion of the proceeds of sale of the Bonds as
shall equal the principal amount of the 1984 Notes.
SBCTION 8. Ratification. The action of the County
Administrator in causing the Notice of Sale to be published as
described in Section 1 hereof, and in causing the Notice of Sale,
a Proposal for Purchase of Sixty-Two Million Three Hundred
Thousand Dollars ($62~300,000) General Obligation Public
Improvement Bonds, Series of 1985, and the Preliminary Official
Statement to be distributed, and the form and contemts of the
Notice of Sale, such Proposal and the Preliminary Official
Statement, and all actions and proceedings heretofore taken by
this Board, the County Adminis=rator and the other officers,
employees, agents and attorneys of the County in connection with
the issuance and sale of the Bonds, are hereby ratified and
eonflrmed.
SECTION 9. Filing of This Resolution. The County
Attorney is hereby authorized and directed t6 ~ile a copy of this
resolution, certified by the Clerk of this Board to be a true and
correct copy hereof, with the Circuit Court of the County of
Chesterfield. .
~CTION 10. Invalidity of Sections, Paragraphs,
Cla~ses or.Provisions. If any se0tion, paragraph, clause or
provision of this resolution shall be held invalid or
unenforceable for any reason, the invalidity or unenforceability
of such section, paragraph, clause or provision shall not affect
any of the remaining portions of this resolution.
SECTION 1t. Headings of Sections. The headings of the
sections of this resolution S~all be solely for convenience of
reference and shall not affect the meaning, construction,
interpretation or effect of such sections or of this resolution.
SECTION 12. Effective mate. This resolution shall
take effect upon its adoption.
Ayes: Mr. Applegate, Mr. Mayes and Mr. Dodd.
Absent: Mr. Dani~l and Mrs. Cirone.
2. ADJOURNMENT
On motion of ~Lr. Mayes, ssconded by Mr. Dodd, the Board adjourn~di
at 11:35 a.m. until 4:30 p.m. on January 8, 1986.
Ayes: Mr. Applegate, Mr. Mayes and Mr. Dodd.
Absent: Mr. Daniel and Mrs. Girone.
Richard L. Hedrick
County Administrator
85-979