02-20-1979 MinutesBOARD OF SUPERVISORS
MINUTES
February 20, 19 79
Supervisors in Attendance
Mr. J. Ruffin Apperson
Mr. C. L. Bookman
Mr. R. Garland Dodd
Mr. Nicholas M. Meiszer
County Administrator
Staff in Attendance:
Mr. Elmer Hodge, Director of
Management Services
Mr. Steve Micas, County Attorney
Mr. Robert Painter, Director of
Utilities
Supervisors Absent:
Mr. E. Merlin O'Neill, Sr., Chairman
Mrs. Joan Girone, Vice-Chairman
Others in Attendance:
Mr. George Pugh, Craigie, In¢
Mr. Apperson, senior Board member in attendance, called the
meeting to order in the Office of the Treasurer of the State
of Virginia in the absence of the Chairman and Vice Chairman
at 12:00 noon (EST).to receive and accept bids for the
$9,000,000 Water Revenue Bonds.
There were eleven bids received from Smith Barney, Harris
Upham & Co., Incoporated; John Nuveen & Co., Inc.; Lehman Brothers
Kuhn, Loeb, Inc.; Kidder, Peabody & Co., Inc.; Salomon Brothers
and Associates; First Boston Corporation; Donaldson, Lufkin
and Jenrette Sec. Corp.; Merrill Lynch White Weld Capital
Markets Group; Dean Witter Reynolds, Inc.-Paine, Webber etc.,Inc.;
Bache Halsey Stuart Shields, Incorporated; and Craigie Incorpor-
ated.
On motion of Mr. Bookman, seconded by Mr. Dodd, the Board
accepted the low bid of Smith Barney, Harris Upham & Company
as recommended by Craigie, Incorporated.
Vote: Unanimous
On motion of Mr. Bookman, seconded by Mr. Dodd, the following
resolution was adopted:
A Resolution Authorizing the Issuance, Sale and
Delivery of $9,000,000 Principal Amount of Water
Revenue Bonds of Chesterfield County and Accepting a
Proposal to Purchase Such Bonds and Amending a
Resolution Adopted by the Board of Supervisors of
Such County on March 22, 1962
Be It Resolved by the Board of Supervisors of the County
of Chesterfield:
SECTION 1. Definitions. Unless the context shall clearly
indicate some other meaning, and except as otherwise provided
in this resolution, all words and terms used in this resolution
which are defined in the resolution adopted by the Board on
March 22, 1962 entitled, "A Resolution Authorizing the Issuance
of $750,000 Water Revenue Bonds and $3,070,000 Water Revenue
Refunding Bonds of the County of Chesterfield, Payable from the
Net Revenue Derived by the Co~t¥ from the Operation of Its
79-66
Water System" (such resolution being defined therein as the
"Resolution"), shall for all purposes of this resolution have
the respective meanings given to them in the Resolution,
except that the term "Debt Service Fund" as used herein shall
include~the Debt Service Reserve Account created in Section 17
hereof unless otherwise provided.
SECTION 2. Findings and Determinations.
(A) The County owns and operates the Water System and has
heretofore issued pursuant to the Resolution $750,000 principal
amount of Water Revenue Bonds, dated April 1, 1962, for the
purpose of paying the cost of improvements to the Water System
and $3,070,000 principal amount of Water Revenue Refunding.Bonds,
dated April 1, 1962, for the purpose of refunding bonds thereto-
fore issued for such purpose.
(B) The County has also heretofore issued pursuant to the
Resolution $4,000,000 principal amount of Water Revenue Bonds,
dated April 1, 1968, for the purpose of paying the cost of
improvements to the Water System.
(C) The Resolution has not been amended, supplemented or
repealed since the adoption thereof except in connection with
the authorization, issuance and sale of the Bonds referred to
in paragraphs (A) and (B) of this Section 2 and, except for the
$7,820,000 aggregate principal amount of Bonds authorized by the
Resolution and referred to in paragraphs (A) and (B) above, the
County has not issued any bonds (including Bonds), notes or
other evidences of indebtedness payable from and secured by a
lien on or pledge or charge upon the Revenues and other moneys
pledged under the Resolution to the payment and security of
the Bonds.
(D) The Resolution permits the issuance thereunder of
Additional Bonds payable from, and secured equally and ratably
with the Bonds heretofore issued under the Resolution by a
lien on and pledge of, the Net Revenues of the Water System.
(E) The Board deems it advisable and in the best interests
of the County to acquire and construct improvements to the
Water System and to issue $9,000,000 principal amount of
Additional Bonds to pay the cost thereof, and to amend the
Resolution in certain respects, all as hereinafter provided.
SECTION 3. Authorization of Issuance, Sale and Delivery of
Series of 1979 ~0nds. Pursuant to the Resolution and Chapter
5 of Title 15.1 Of the Code of Virginia 1950, as amended (the
same being the Public Finance Act), there are hereby authorized
to be issued, sold and delivered an issue of nine million dollars
($9,000,000) principal amount of Bonds of the County to be known
as "Water Revenue Bonds, Series of 1979" (hereinafter referred
to as the "Series of 1979 Bonds"). The Series of 1979 Bonds
shall be dated as of March 1, 1979; shall be numbered from 1
consecutively upwards to 1,800, both inclusive, in order of
maturity, earliest maturities first; shall be of the demonination
of $5,000 each; and shall mature serially in numerical order on
April 1 in each of the years and in the respective principal
amounts set forth in the table below, with the Series of 1979
Bonds maturing in a particular year to bear interest payable
October 1, 1979 and semi-annually thereafter on April 1 and
October 1 of each year at the rate per annum set forth opposite
~such year, to wit:
79-67
Principal Interest Principal Interest
Year Amount Rate Year Amount Rate
Principal Interesl
Year Amount Rate
1980 $ 30,000 5.5~ 1988 $ 70,000 5.5~
1981 35,000 5.50% 1989 245,000 5.50%
1982 40,000 5.5~4 1990 330,000 5.50%
1983 50,000 5.50% 1991 355,000 5.50%
1984 55,000 5.50% 1992 380,000 5.60%
1985 40,000 5.50% 1993 405,000 5.60%
1986 45,000 5.50% 1994 435,000 5.70%
1987 60,000 5.50% 1995 465,000 5.75%
1996 $ 500,000 5.8~/o
1997 530,000 5.80%
1998 570,000 5.90%
1999 610,000 5.90%
2000 650,000 6.00%
2001 700,000 6.00%
2002 745,000 6.1~/o
2003 800,000 6.10%
2004 855,000 6.20%
The Series of 1979 Bonds shall be issued as coupon bonds
egistrable by the holder as to principal only in accordance with
he provisions for such registration to be endorsed thereon as
et forth in Section 6 hereof. The County Treasurer of the County
s hereby appointed registrar of the Series of 1979 Bonds (herein-
fter referred to as the "Registrar"). The Registrar shall keep at
his office in Chesterfield, Virginia, the books of registry for
~he Series of 1979 Bonds and shall take all such actions as shall
)e deemed by him to be necessary or appropriate for the performance
~f his duties as such Registrar in accordance with the provisions
for registration of the Series of 1979 Bonds to be endorsed
~hereon as set forth in Section 6 hereof.
The principal of and premium, if any, and interest on the
;eries of 1979 Bonds shall be payable at the principal office of
the Central National Bank, in the City of Richmond, Virginia, or
at the option of the holder thereof or of the coupons appertaining
thereto, as the case may be, at the principal office of
~anufacturers Hanover Trust Company, in the City of New York,
New York, as the paying agents for the Series of 1979 Bonds, in
such coin or currency of the United States of America as at the
respective dates of payment is legal tender for public and
~rivate debts.
SECTION 4. Redemption of Series of 1979 Bonds. The Series
~f 1979 Bonds maturing prior to April 1, 1990"shall not be subject
to redemption. The Series of 1979 Bonds maturing on and after
kpril 1, 1990 shall at the option of the County be subject to
~edemption prior to their stated maturities at any time on or
~fter April 1, 1989, in whole at any time, or in part from time
~o time on any interest payment date in inverse order of maturity
(provided that if less than all of the Series of 1979 Bonds of a
naturity are called for redemption, the particular Series of
[979 Bonds of such maturity to be redeemed shall be selected by
lot), upon payment of the principal amount of the Series of 1979
~onds to be redeemed together with the interest accrued thereon to
~he date fixed for redemption plus a premium of one half of one
~ercent (1/2 of 1%) of the principal amount of each Series of 1979
~ond to be redeemed for each twelve (12) months' period or fraction
~hereof between the date fixed for redemption and the stated
~aturity date of such Series of 1979 Bond, such premium in any
~vent not to exceed two percent (2%) of such principal amount.
my such exercise of the option of the County to redeem Series of
.979 Bonds shall be evidenced by a resolution of the Board, and
~ny such selection by lot of Series of 1979 Bonds within a maturity
~o be redeemed shall be made by the County Treasurer.
Notice of any such redemption shall be given by the County
,y publication of a notice once in a financial newspaper published
in the City of New York, New York, the date of publication of such
~otice to be not less than thirty (30) days nor more than sixty
[60) days prior to the date fixed for redemption. Such notice
~hall specify the date, numbers and maturities of the Series of
.979 Bonds to be redeemed, the date and place fixed for their
~edemPtion and the premiun, if any, payable upon such redemption,
~nd shall also state that upon the date fixed for redemption there
:hall become due and payable upon each Series of 1979 Bond called
!or redemption the principal amount thereof and redemption
l remium, if any, there~together with the interest accrued thereonI
79-68
to the date fixed for redemption, and that from and after such
date interest thereon shall cease to accrue. If any Series of
1979 Bond called for redemption is registered as to principal
only, notice of the redemption thereof shall be mailed not less
than thirty (30) days nor more than sixty (60) days prior to the
date fixed for redemption by registered mail to the registered
owner of such Series of 1979 Bond at such owner's address as
shown on the books of registry. Notice of redemption by
publication need not be given to the registered owner of any
registered Sereis of 1979 Bond if notice of redemption shall have
been mailed as aforesaid, and if notice of redemption is given
by publication as aforesaid then neither the failure to mail such
notice to the registered owner of any registered Series of 1979
Bond nor any defect in any notice so mailed.shall affect the
sufficiency of the proceedings for the redemption of such
Series of 1979 Bond.
When notice of redemption of any Series of 1979 Bonds shall
have been given as hereinabove set forth, such Series of 1979
Bonds shall become due and payable on the date so specified for
their redemption at a price equal to the principal amount thereof
and redemption premium, if any, thereon together with the interest
accrued thereon to such date. Whenever payment of such redemption
price shall have been duly made or provided for, interest on the
Series of 1979 Bonds so called for redemption shall cease to
accrue from and after the date so specified for their redemption
and any coupons representing such interest shall be void. All
redeemed Series of 1979 Bonds and unmatured coupons appertaining
thereto shall be cancelled and not reissued.
SECTION 5. Execution of Series of 1979 Bonds; CUSIP Iden-
tification Numbers. The Series of 1979 Bonds shall be executed in
the name of the County by the Chairman and the Clerk of the Board
by their manual or facsimile signatures, provided that at least
one such signature is a manual signature, and the seal of the
County shall be imprinted or impressed thereon. The Series of
1979 Bonds shall have coupons attached thereto representing the
interest due thereon on or before the maturity thereof, which
coupons shall be executed by the facsimile signatures of such
Chairman and Clerk.
CUSIP'identification numbers may be printed on the Series of
1979 Bonds, but neither the failure to print any such number on
any Series of 1979 Bonds, nor any error or omission with respect
thereto shall constitute cause for failure or refusal by the
successful bidder for the Series of 1979 Bonds to accept delivery
of and pay for the Series of 1979 Bonds in accordance with the
terms of its bid. No such number shall constitute or be deemed
to be a part of any Series of 1979 Bond or a part of the contract
evidenced thereby and no liability shall attach, to the County or
any of its officers or agents because of or on account of any
such number or any use made thereof. All expenses in relation
to the printing of such numbers on the Series of 1979 Bonds shall
be paid by the County; provided, however, that the CUSIP Service
Bureau charge for the assignment of such numbers shall be the
responsibility of and shall be paid for by the successful bidder
for the Series of 1979 Bonds.
SECTION 6. Forms of Series of 1979 Bonds, Coupons and
Registration Provisions. The Series of 1979 Bonds, the interest
coupons appertaining thereto and the provisions for registration
thereof shall be in substantially the f~llowing forms with such
necessary or app~op~iate variations, omissions and insertions as
are incidental to their numbers, interest rates and maturities or
as are otherwise permitted or required by law, the Resolution
or this resolution:
79-69
(FORM OF BOND)
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CHESTERFIELD COUNTY
WATER REVENUE BOND
SERIES OF 1979
No. $5,000
Chesterfield County (hereinafter referred to as the "County"),
a political subdivision of the Commonwealth of Virginia, for
value received, hereby promises to pay to the bearer or, if this
Bond shall then be registered as herein provided, to the then
registered owner hereof, but solely from the revenues hereinafter
specified and not otherwise, the principal sum of FIVE THOUSAND
DOLLARS ($5,000) on the first day of April, (subject to the
right of prior redemption hereinafter mentione-~d~ upon the
presentation and surrender of this Bond, and to pay interest on
suCh principal sum, but solely from such revenues hereinafter
Ispecified and not otherwise, from the date hereof until the payment
lin full of such principal sum at the rate of
per centum. ( %) per annum, payable October 1 1979 and
semi-annually thereafter on April 1 and Octoberi ofeach year,
but only, in the case of interest due on or before the maturity
hereof, upon the presentation and surrender of the respective
interest coupons therefor hereto attached as the same severally
become due.
The principal of and premium, if any, and interest hereon
shall be payable at the principal office of The Central National
Bank, in the City of Richmond, Virginia, or at the option of the
holder hereof or of the coupons appertaining hereto, as the case
may be, at the principal office of Manufacturera Hanover Trust
Company, in the City of New York, New York, as paying agents for
this Bond, in such coin or currency of the United States of
America as at the respective dates of payment is legal tender
for public and private debts.
The Bonds of the issue of which this Bond is one maturing on
and after April 1, 1990 are subject to redemption at the option of
the County prior to maturity on or after April 1, 1989, in whole
at any time, or zn part from time to time on any interest payment
date in inverse order of maturity (provided that if less than all
of the Bonds of a maturity are called for redemption, the
particular Bonds of such maturity to be redeemed shall be selected
by lot), upon payment of the principal amount of the Bonds to be
redeemed together with the interest accrued thereon to the date
fixed for redemption plus a premium of one half of one percent
(1/2 of 1%) of the principal amount of each Bond to be redeemed
for each twelve (12) months' period or fraction thereof between
the date fixed for redemption and the stated maturity date of such
Bond, such premium not to exceed in any event two percent (2%)
of such principal amount.
If this Bond is redeemable and shall be called for redemption
notice of the redemption'hereof shall be given by publication of
such notice once mn a financial newspaper publiahed in the City
of New York, New York, the date of publication of such notice
to be not less than thirty (30) days nor more than sixty (60)
days prior to the date fixed for redemption. Such notice shall
specify the date, number and maturity of this Bond, the date and
place fixed for its redemption and the premium, if any, payable
upon such redemption, and shall also state that upon the date
fixed for redemption there shall become due and payable upon
this Bond the principal amount hereof and redemption premium, if
any, hereon, together with the interest accrued hereon to the date
fixed for redemption, and that from and after such date interest
79-70
hereon shall cease to accrue. If this Bond is then registered as
to principal, notice of such redemption shall be mailed not less
than thirty (30) days prior to the date fixed for redemption by
registered mail to the registered owner of this Bond at such owner'
address as shown on the books of registry maintained by the County
Treasurer of Chesterfield County, Virginia, as Registrar. Notice
of redemption by publication need not be given to the registered
owner of this Bond if notice of redemption shall have been mailed
as aforesaid, and if notice of redemption is given by publication
as aforesaid then neither the failure to mail such notice to the
registered owner of this Bond nor any defect in any notice so
mailed shall affect the sufficiency of the proceedings for the
redemption of this Bond. When notice of redemption of this Bond
shall have been given as hereinabove set forth, this Bond shall
become due and payable on the date so specified for its redemption
at a price equal to the principal amount hereof and redemption
premium, if any, hereon, together with the interest accrued hereon
to such date, and whenever payment of such redemption price shall
have been duly made or provided for, interest on this Bond shall
cease to accrue from and after the date so specified for its
redemption and any coupons representing such interest shall be
void.
This Bond is one of a duly authorized issue of Bonds (herein
referred to as the "Bonds") of the aggregate principal amount of
~ine million dollars ($9,000,000) of like date, denomination and
tenor herewith except for number, interest rate, maturity and
redemption provisions, and is issued under and pursuant to and
~n full compliance with the Constitution and laws of the
~ommonwealth of Virginia, including Chapter 5 of Title 15.1 of the
lode of Virginia 1950, as amended (the same being the Public
{inance Act), a resolution duly adopted on March 22, 1962, by
~he Board of Supervisors of the County, entitled "A RESOLUTION
kUTHORIZING THE ISSUANCE OF $750,000 WATER REVENUE BONDS AND
$3,070,000 WATER REVENUE REFUNDING BONDS OF THE COUNTY OF
CHESTERFIELD, PAYABLE FROM THE NET REVENUE DERIVED BY THE COUNTY
FROM THE OPERATION OF ITS WATER SYSTEM" and a resolution duly
adopted under such Chapter 5 on February 20, 1979, by such
Board entitled, "A RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND
DELIVERY OF $9,000,000 PRINCIPAL ~OUNT OF WATER REVENUE BONDS OF
CHESTERFIELD COUNTY AND ACCEPTING A PROPOSAL TO PURCHASE SUCH
BONDS AND AMENDING A RESOLUTION ADOPTED BY THE BOARD OF SUPERVISORS
DF SUCH COUNTY ON MARCH 22, 1962" (such resolutions being herein
referred to collectively as the "Resolution").
The Bonds are issued to finance the cost of acquiring and
~onstructing improvements to the County's water system (herein-
~fter referred to as the "Water System"). The Bonds and
the interest thereon are payable solely from, and secured equally
~nd ratably with other bonds which have heretofore been issued
~nd which may hereafter be issued on a parity therewith under the
tesolution outstanding from time to time solely by a lien and
~harge on, the revenues derived from the operation of the Water
System of the County, subject, however, to the prior payment from
such revenues of the expenses of operation and maintenance of the
Mater System. This Bond and the issue of Bonds of which this is
one is not a debt of the County within the meaning of any
constitutional or statutory limitation upon the creation of general
pbligation indebtedness of the County, nor does this Bond or the
Bonds of the issue of which it is one impose any general liability
~pon the County, and th.e County shall not be liable for the payment
~ereof or thereof out of any funds of the County except the
revenues of the Water System of the County, which revenues have
~een pledged to the punctual payment of the principal of and
interest on this Bond and the issue of Bonds of which this is one
in accordance with the provisions of the Resolution.
Reference is hereby made to the ReSolution, to all of
~he provisions of which any holder of this Bond by his acceptance
~ereof hereby assents, for definitions of terms; the description
~f and the nature and extent of the security for the bonds issued
~nder the Resolution, including this Bond; the description of the
79-71
plants and properties constituting the Water System of the County;
the revenues pledged to the payment of the interest on and
principal of the bonds issued under the Resolution, including this
Bond; the nature and extent and manner of enforcement of the pledge
the covenants of the County as to the fixing, maintaining and
revising of rates, rentals, fees and charges for the services,
facilities and commodities of the Water System of the County; the
convenants of the County as to the collections, deposit and
application of the revenues of the Water System; the conditions
upon which other bonds have been and may hereafter be issued under
the Resolution payable on a parity with this Bond from the
revenues of the Water System of the County and equally and ratably
secured herewith; the rights, duties and obligations of the
County; the provisions discharging the Resolution as to this
Bond and the lien and pledge of this Bond on the revenues of the
Water System of the County if there shall have been deposited with
a paying agent for this Bond on or before the maturity or
redemption hereof moneys sufficient to pay the principal hereof and
the interest hereon to the maturity or redemption date hereof,
or certain specified securities maturing at such times and in such
amounts which, together with the earnings thereon, would be
sufficient for such payment, or a combination of both such moneys
and securities; and for the other terms and provisions of the
Resolution.
It is hereby certified, recited and declared that all acts,
conditions and things required to have happened, to exist and to
have been performed precedent to and in the issuance of this
Bond and the issue of which it is a part do ,exist, have
happened and have 'been performed in regular and due time, form and
manner as required by law, and that the Bonds of the issue of
which this Bond is a part do not exceed any constitutional or
statutory limitation of indebtedness.
IN WITNESS WHEREOF, the County, by its Board of Supervisors,
has caused this Bond to be signed by the Chairman and the Clerk
of such Board, by their manual or facsimile signatures
(provided that one of such signatures hereon shall be a manual~
signature), and its corporate seal to be impressed or imprinted
hereon, and the coupons hereto attached to be signed by the
facsimile signatures of such officers, and this Bond to be dated
as of the first day of March, 1979.
Clerk of the Board of
Supervisors
(Seal)
Chairman of the Board of
Supervisors
(FORM OF COUPON)
No. $
On the first day of unless the Bond
herein after mentioned shall be sugject to prior redemption and
shall have been duly called for previous redemption and payment
of the redemption price duly made or provided for, Chesterfield
County, Virginia, will pay to the bearer hereof at the principal
office of The Central National Bank, in the City of Richmond,
Virginia, or at the option of the holder at the principal office
of Manufacturers Hanover Trust Company in the City of New York,
New York, the sum shown hereon in such coin or currency
of the United States of America as at the time of such payment is
legal tender for public and private debts, but solely from the
revenues of its Water System and not otherwise as more fully set
forth in such Bond, being interest then due on its Water Revenue
Bond, Series of 1979, dated March 1, 1979, and numbered
79-72
Clerk of the Board of
Supervisors
Chairman of the Board of
Supervisors
(PROVISIONS FOR REGISTRATION)
This Bond may be registered as to principal only in the
name of the holder on the books of registry to be kept by the
County Treasurer of Chesterfield County, Virginia, as Registrar,
such registration to be noted by the Registrar in such books
and in the registration blank below. After such registra-
tion, no transfer hereon shall be effective against the Registrar
such County and the paying agents of this Bond unless made on
such books of registry by the registered owner or attorney duly
authorized and similarly noted hereon, but this Bond may be
discharged from such registration by being transferred on such
books of registry to bearer, after which this Bond shall be
transferable by delivery, such registration to be similarly noted
hereon, but this Bond may be again registered as before. The
registration of this Bond as to principal shall not restrain
the negotiability of the coupons appertaining hereto merely
by delivery.
(NOTE: There must be no writing in the space
below except by the Registrar.)
Date of
Registration
In Whose Name
Registered
Signature of
Registrar
SECTION 7. Acceptance of Proposal to Purchase Series
of 1979 Bonds and Award Thereof.
(A) The publication of the Notice of Sale of the
Series of 1979 Bonds in The Daily Bond Buyer, a financial news-
paper published in the City of New York, New York on February 9,
1979, in the form and as approved, ratified and confirmed by a
resolution adopted by the Board on February 14, 1979, and the
distribution of such Notice of Sale and of forms of the
Proposal for Purchase of Water Revenue Bonds, Series of 1979,
in the form and as approved, ratified and confirmed in such
resolution, be and hereby are futher approved, ratified and
confirmed.
(B) Pursuant to such published Notice of Sale, the
County has received at the meeting at which this resolution is
being adopted, in accordance with such Notice of Sale, 11
completed Proposals for Purchase of Water Revenue Bonds, Series
of 1979.
(C) The Proposal for Purchase of Water Revenue Bonds,
Series of 1979 submitted by Smith Barney, Harris Upham Co.
Incorpoarted (the "Purchaser") and offering to purchase the
Series of 1979 Bonds at the price of Eight Million Nine
Hundred Sixteen Thousand Six Hundred Sixty-Two and 25/100
Dollars ($8,916,662.25), which is ninety-nine and 74/1000
percent (99.07~%) of the par value thereof, plus accrued
interest from the date of the Series of 1979 Bonds to the
date of the delivery thereof and payment therefor, such Series
of 1979 Bonds to bear interest at the rates set forth in
Section 4 hereof, be and hereby is found and determined to be
the proposal to purchase the Series of 1979 Bonds at the
lowest interest cost to the County, submitted by a responsible
79-73
bidder and in conformity with the Notice of Sale, and such
proposal be and hereby is accepted and the Series of 1979
Bonds be and hereby are awarded to the Purchaser. The County
Administrator and other appropriate officers, employees and agents
of the County be and hereby are authorized and directed to take
all such actions and to execute all such instruments as shall be
deemed by them to be necessary or appropriate to effect the
issuance, sale and delivery of the Series of 1979 Bonds to the
Purchaser in accordance with the Resolution and this resolution
upon receipt of the purchase price therefor as set forth in
this Section 7.
SECTION 8. Ratification of Preparation and Delivery of
Preliminary Official Statement; Authorization of Preparation and
~eli~ery of Official Statement in Final Form.
(A) The preparation by the County Administrator and
other appropriate officers, employees and agents of the County of
the Preliminary Official Statement of the County, dated February
1979, relating to the Series of 1979 Bonds, the form and contents
thereof and the distribution thereof in connection with the sale
the Series of 1979 Bonds, heretofore approved, ratified and confi]
by the Board by its adoption of the resolution referred to in
Section 7(A) hereof, be and hereby is further approved, ratified
and confirmed.
(B) The preparation by the County Administrator and
other appropriate officers, employees and agents of the County
of an Official Statement in final form relating to the Series
of 1979 Bonds, to be dated as of the date of adoption of this
resolution, substantially in the form of the Preliminary Official
Statement ratified, approved and confirmed in paragraph (A)
hereof with appropriate revisions to reflect the details of the
Series of 1979 Bonds, be and hereby is approved, and such
County Administrator and such other appropriate officers,
employees and agents of the County be and hereby are authorized
and directed to deliver such Official Statement in final form
in sufficient quantities to the Purchaser for distribution and
use in effecting sales of the Series of 1979 Bonds to the
ultimate purchasers thereof.
(C) The Chairman of the Board of Supervisors, the County
Administrator and the Director of Utilities of the County be
and hereby are authorized and directed to execute the Official
Statement approved in paragraph (B) hereof on behalf of the
County and to execute and deliver at the closing for the
issuance, sale and delivery of the Series of 1979 Bonds the
certificate referred to therein under the caption, "Certificate
Concerning Official Statement".
SECTION 9. Publication of Legal Notice of Adop.~ion of
This Resolution. The County Attorney be and hereby is authorized
and directed' to file a copy of this resolution, certified by
the Clerk of the Board to be a true and correct copy hereof, with
the Circuit Court of Chesterfield County, Virginia, and such
Clerk of the Board be and hereby is authorized and directed to
publish once within ten (10) days of the date of such filing a
notice of adoption of this resolution both in the Richmond
Times Dispatch, a newspaper of general publication in the County,
and in the Petersburg Progress-Index, all in accordance with
Section 15.1-199 of the Code of Virginia 1950, as amended.
Such notice shall be in substantially the following form:
"LEGAL NOTICE
Notice is hereby given pursuant to Section 15.1-199 of
the Code of Virginia 1950, as amended, that the Board of
Supervisors of Chesterfield County, Virginia, adopted on
February 20, 1979, a resolution authorizing the issuance of
79-74
$9,000,000 principal amount of Water Revenue Bonds, Series
of 1979, of such County, for the purpose of providing funds
to pay the cost of acquiring and constructing improvements
to the County's Water System, such bonds to be payable
solely from, and secured equally and ratably by a lien and
charge on, the revenues derived from the operation of the
Water System by the County, subject to the prior payment
from such revenues of the expenses of operation and
maintenance of the Water System.
CHESTERFIELD COUNTY, VIRGINIA
By
Clerk of the Board of Supervisors"
SECTION 10. Series of 1979 Bonds Construction Fund;
Application of Proceeds of Series of 1979 Bonds. There is
hereby established and created a special fund known as the
"Series of 1979 Bonds Construction Fund", which shall be held
in trust and administered by the County.
From the proceeds of the sale of the Series of 1979 Bonds,
including the interest accrued on the Series of 1979 Bonds
from the date thereof to the date of their delivery to the
Purchaser, the County shall deposit an amount equal to such
accrued interest in the Debt Service Fund and shall deposit
an amount equal to the balance of such proceeds of sale in
the Series of 1979 Bonds Construction Fund.
The moneys in the Series of 1979 Bonds Construction Fund
shall be applied solely to the payment of the cost of
acquisition and construction (hereinafter referred to as
the "Cost of Acquisition and Construction") of improvements
(hereinafter referred to as the "Improvements") to the
Water System, except that pending such application such
moneys are hereby pledged to the payment of the principal
of and interest on the Series of 1979 Bonds to the extent
moneys in the Debt Service Fund are insufficient therefor.
The Cost of Acquisition and Construction shall include
but not be limited to the following items of cost:
(a) the cost and expense of issuing the Series of 1979
Bonds and legal financing expenses in connection therewith;
(b) fees and expenses for studies, surveys and
estimates, engineering, preparation of plans and specifications
and supervising the acquisition and construction of the
Improvements, and the insurance premiums (if any) in
connection with the acquisition and construction of the Improve-
ments during the construction thereof;
(c) the cost and expense of acquiring by purchase or
condemnation such lands, property rights, rights-of-way,
easements and other interests in lands as may be deemed
necessary or convenient for the acquisition and construction
of the Improvements, and options and partial payments with
respect thereto, and the amount of any damages incident to or
consequent upon such acquisition and construction;
(d) payments made for labor and to contractors, builders
and materialmen in connection with the acquisition and
construction of the Improvements, payments made for machinery,
materials and other equipment, and payments made for the
restoration of property damaged or destroyed in connection with
such acquisition and construction; and
(e) amounts heretofore advanced by the County and expended
for the Cost of Acquisition and Construction.
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Moneys in the Series of 1979 Bonds Construction Fund
from time to time shall be invested as authorized by
resolution of the Board.
SECTION 11. Arbitrage Bonds Provision. The County shall
make no use of the proceeds of the sale of the Series of 1979
Bonds which would cause the Series of 1979 Bonds to be "arbitrage
bonds" under Section 103(c) of the U.S. Internal Revenue Code
of 1954, as amended, and the County shall comply With the
applicable regulations of the Internal Revenue Service adopted
under such Section 103(c) s.o long as any Series of 1979 Bond
is outstanding.
SECTION 12. Series of 1979 Bonds are "Bonds" and
"Additional Bonds". Subject to the provisions of Section 19
hereof, the' Series of 1979 Bonds are hereby found and
determined to be "Bonds" and "Additional Bonds" within the
meanings of the quoted terms as defined and used in the
Resolution.
SECTION 13. Discharge of Liens and Pledges; Series of
1979 Bonds No Longer Outstandin~ Hereunder. The obligations
of the County under the Resolutzon and this resolution and the
liens, pledges, charges, trusts, covenants and agreements of
the County herein and therein made or provided for, shall be
fully discharged and satisfied as to any Series of 1979 Bond
and such Series of 1979 Bond shall no longer be deemed to be
outstanding under the Resolution and hereunder:
(i) when such Series of 1979 Bond shall have been paid,
or shall have been surrendered for payment; or
(ii) as to any Series of 1979 Bond not paid or surrendered
for payment, when payment of the prinicipal of and the
application redemption premium, if any (or redemption price),
on such Series of 1979 Bond, plus interest on such
principal to the due date thereof (whether such due date be
by reason of maturity or upon redemption or prepayment,
or otherwise), either (a) shall have been made or caused
to be made in accordance with the terms thereof, or (b)
shall have been provided by irrevocably depositing with
a paying agent for such Series of 1979 Bond, in trust,
and irrevocably appropriated and set aside exclusively for
such payment, either (1) moneys sufficient to make such
payment, or (2) direct and general obligations of, or
obligations the payment of the principal of and
interest on which are unconditionally guaranteed~or
assumed by, the United States of America (hereinafter
referred to in this Section 13 as "Investment Securities")
maturing as to principal and interest in such amounts
and at such times as will insure the availability of
sufficient moneys to make such payment, or (3) a combination
of both such moneys and such Investment Securities,
whichever the County, acting through its Board of
Supervisors, deems to be in its best interest, and all
necessary and proper fees, compensation and expenses of
the paying agents pertaining to the Series of 1979 Bond
with respect to which such deposit is made shall have
been paid or the payment thereof provided for to the
satisfaction of such paying agents.
At such time as a Series of 1979 Bond shall be deemed to be no
longer outstanding under the Resolution and hereunder, as
aforesaid, such Series of 1979 Bond shall cease to draw
interest from the due date thereof (whether such due date be
by reason of maturity, or upon redemption or prepayment, or
otherwise) and, except for the purposes of any such payment
from such moneys or Investment Securities, shall no longer be
secured by or entitled to the benefits of the Resolution or
this resolution.
79~ -76
Notwithstanding the foregoing, in the case of Series
of 1979 Bonds which by their terms may be redeemed or
otherwise prepaid prior to their stated maturities and which
the County shall elect to redeem or prepay, no deposit under
clause (b) of subparagraph (ii) above shall constitute such
payment, discharge and satisfaction as aforesaid, until such
Series of 1979 Bonds shall have been irrevocably called or
designated for redemption or prepayment and proper notice of
such redemption shall have previously been published in
accordance with Section 4 of this resolution or provision
shall have been irrevocably made for the giving of such
notice; provided that nothing in this Section 13 shall
require or be deemed to require the County to elect to
redeem or prepay such Series of 1979 Bonds, or, in the
event the County shall elect to redeem or prepay such Series
of 1979 Bonds, shall require or be deemed to require the
redemption or prepayment thereof as of any particular date or
dates.
Any such moneys so deposited with paying agents as provided
in this Section 13 may at the direction of the County also be
invested and reinvested in Investment Securities, maturing in
the amounts and times as hereinbefore set forth, and all
income from all Investment Securities in the hands of a paying
agent pursuant to this Section 13 which is not required for
the payment of the Series of 1979 Bonds and interest and
premium thereon, if any, with respect to which such moneys
shall have been so deposited shall be deposited in the
Revenue Fund as and when realized and collected, for use and
application as are other moneys deposited in the Revenue Fund.
Notwithstanding any provision of any other section of the
Resolution or this resolution which may be contrary to the
provisions of this Section 13, all moneys or Investment
Securities set aside and held in trust pursuant to the
provisions of this Section 13 for the payment of the Series of
1979 Bonds (including interest and premium thereon, if any, and
coupons appertaining thereto) shall be applied to and used
solely for the payment of the particular Series of 1979 Bond
(including interest and premium thereon, if any, and coupons
appertaining thereto) with respect to which such moneys and
Investment Securities have been so set aside in trust.
If moneys or Investment Securities have been deposited
or set aside with paying agents pursuant to this Section 13 for
the payment of the Series of 1979 Bonds and coupons and
such Series of 1979 Bonds shall be deemed to have been paid
and to be no longer outstanding hereunder and under the
Resolution as provided in this Section 13, but such Series of
1979 Bonds and coupons shall not have in fact been actually
paid in full, and the due date or redemption date thereof
shall not have arrived, no amendment to the provisions of
this Section 13 shall be made without the consent of the holder
of each Series of 1979 Bond or coupon affected thereby.
Subject to the provisions of the next sentence of this
paragraph, if any Series of 1979 Bond shall not be presented
for payment when the principal thereof shall become due, whether
at maturity or at the date fixed for the redemption thereof,
or otherwise, or if any coupon shall not be presented for
payment at the due date thereof, and if moneys or Investment
Securities shall at such due date be held by any'paying agent
therefor, in trust for that purpose sufficient and available
to pay the principal of and the premium, if any, on such
Series of 1979 Bond, together with all interest due on such
principal to the due date thereof or to the date fixed for
redemption thereof, or to pay such coupon, as the case may
be, all liability of the County for such payment shall forth-
with cease, determine and be completely discharged, and
thereupon it shall be the duty of such paying agent to hold
79 -77
such moneys or Investment Securities without liability to the
holder of such Series of 1979 Bonds for interest thereon, in
trust for the benefit of the holder of such Bond or of such
coupon, as the case may be, who thereafter shall be restricted
exclusively to such moneys or Investment Securities for any
claim or whatever nature on his part on or with respect to
such Series of 1979 Bond or coupon, including for any claim for
the payment thereof. Any such moneys or Investment Securities
held by any paying agent remaining unclaimed by the holder
of such Series of 1979 Bond or coupon for six (6) years after
the principal of such Series of 1979 Bond with respect to
which such moneys or Investment Securities have been so set
aside has become due and payable (whether at maturity, or
upon redemption or prepayment, or otherwise) shall be paid to
the County against its written receipt therefor, and the holder
of such Series of 1979 Bond or coupon shall thereafter be
entitled to look only to the County for payment thereof.
SECTION 14. Amendment of Section 316 of the Resolution.
Subject to the last paragraph of this section, Section 316 of
the Resolution shall be and hereby is amended to read as
follows:
"Section 316. The certificates referred to in paragraph
(d) of Section 315 are the following:
(1) A certificate by the County Treasurer stating that
he has examined the books and records of the County and that
from such examination he has ascertained that all payments
required by Section 606(2) to be paid into the Debt Service
fund prior to the month during which are issued the Additional
Bonds then being issued have been made.
(2) A certificate by the County Treasurer stating that
he has examined the books and records of the County and
that from such examination he has ascertained the following
amounts which shall be stated in such certificate: (a) the
aggregate amount which must be paid from the Revenue Fund
for debt service on the then outstanding and unpaid Bonds and
on the Additional Bonds then being issued in the next
succeeding Fiscal Year during the life of the Bonds (including
such Additional Bonds), and (b) the aggregate amount of the
Net Revenues of the County for each of the last two completed
Fiscal Years, and (c) the sum obtained by dividing by two
the aggregate of such Net Revenues for such two Fiscal Years.
(3) A certificate by the County Treasurer showing that
the sum obtained by dividing by two the aggregate of the Net
Revenues for the two preceding Fiscal Years, as shown in the
certificate referred to in subdivision (2) of this Section,
will be at least 125% of the maximum aggregate amount which
must be paid in the next succeeding Fiscal Year from the
Revenue Fund for debt service on the then outstanding and
unpaid Bonds and on the Additional Bonds then being issued
as shown in the certificate referred to in such subdivision
(2).
"Net Revenues" of any particular Fiscal Year, for the
purpose of this Section, means the amount by which the aggregate
of the Revenues received by the County in such Fiscal Year shall
exceed the Operating Expenses of such Fiscal Year."
Such amendment shall become effective from and after the
date as of which the Bonds heretofore issued under the
Resolution, being those Bonds referred to in paragraphs (A)
and (B) of Section 2 hereof, have actually been paid or are
deemed to have been paid under the provisions of Section 802
of the Resolution.
SECTION 15. Amendment of Section 602 of the Resolution.
Subject to the last paragraph of this section, Section 602 of
7.9-78
the Resolution shall be and hereby is amended to read as
follows:
"Section 602. The County covenants and agrees that the
Board of Supervisors shall fix, establish, maintain, revise
and collect rents, rates, fees or other charges (herein
referred to as "Service Charges") for water furnished by
or for the use of or for services furnished by the Water
System sufficient to produce or yield Revenues in each Fiscal
Year in the following amounts:
(a) an amount adequate for the payment of the expenses
(herein referred to as "Operating Expenses") necessary for
the administration and operation of the Water System and for
the preservation of the Water System in good repair and working
order as the same shall accrue and be payable during such
Fiscal Year, and
(b) an additional amount equal to 125% of the average
of the amount of principal of and interest on all Bonds (includin~
Additional Bonds) paid during the next preceding two Fiscal
Years."
Such amendment shall become effective from and after the
date as of which the Bonds heretofore issued under the
Resolution, being those Bonds referred to in paragraphs (A)
and (B)of Section 2 hereof, have actually been paid or are
deemed to have been paid under the provisions of Section 802
of the Resolution.
SECTION 16. Amendment of Section 606 of the Resolution.
Subject to the last paragraph of this section, Section 606 of
the Resolution shall be and hereby is amended to read as
follows:
"Section 606. The County shall, at the times herein
indicated, withdraw from the Revenue Fund the moneys necessary
to make, and shall forthwith make, the following payments:
(1) As of the first day of each month beginning after
the Issuance Date, but not later than the tenth day of such
month, into and to be held in the Operating Fund, such sum,
if any, as may be needed to increase the amount in the
Operating Fund so that it equals the sum of the following amounts
(a) the amount of the Operating Expenses for the current month
and for the next succeeding two months as provided for in the
Annual Budget or Budgets for the Fiscal Year or Fiscal Years
of which such months may be a part and (b) the aggregate amount
of all checks drawn upon the Operating Fund to pay Operating
Expenses not theretofore presented for payment or paid.
(2) As of the first day of each month beginning after
the Issuance Date, but not later than the tenth day of such
month, into the Debt Service Fund (a) the amount, if any,
required to increase the amount in said Fund (excluding the
Debt Service Reserve Account therein) so that it equals the
amount of unpaid interest on the Outstanding Bonds (including
Additional Bonds, if any) which has or will become due and
payable on or prior to the first days of April and October,
next ensuing, plus the amount of all unpaid principal of
Outstanding Bonds (inCluding Additional Bonds, if any) which
has or will become due and payable on or prior to the first
day of April next ensuing and (b) the amount, if any, required
to be deposited into said Fund for credit to the Debt Service
Reserve Account in accordance with Section 608 of this Resolution
(3) As of the first day of each month beginning after the
Issuance Date, but not later than the tenth day of such month,
into the Improvement, Replacement and Extension Fund, all
moneys, if any, then remaining in the Revenue Fund after
making (a) the payments required to be paid into the Operating
Fund under Subdivision (1) above, and (b) the payments required
79-79
to be paid into the Debt Service Fund, as required by
Subdivision (2) above."
Such amendment shall become effective upon the issuance,
sale and delivery of the Series of 1979 Bonds authorized
by this resolution.
SECTION 17. Amendment of Section 608 of the Resolution.
Subject to the last paragraph of this section, Section 608
of the Resolution shall be and hereby is amended to read
as follows:
"Section 608. The County shall withdraw from the
Debt Service Fund, prior to each interest payment date beginning
with the interest payment date next ensuing after the Issuance
Date, an amount equal to the aggregate amount of the interest
payable on said date with respect to the Bonds and Additional
Bonds, if any, and shall deposit the same with the Virginia
Paying Agent for application to the payment of such interest
when due. The County shall withdraw from the Debt Service Fund,
prior to each date on which any of the Bonds or Additional
Bonds mature, an amount equal to the aggregate amount of such
Bonds payable on said date, and deposit the same with the
Virginia Paying Agent to apply the same to the payment of the
principal of such Bonds. Moneys deposited in the Debt Service
Fund shall be held in trust for such purpose, and no amount
shall be withdrawn from or paid out of the Debt Service Fund
except as in this section provided.
There is hereby created and established a separate
account in the Debt Service Fund to be known as the Debt
Service Reserve Account. The moneys credited to the Debt
Service Reserve Account shall constitute a reserve for the
payment of the principal of and interest and premium, if
any, on all Bonds (including Additional Bonds heretofore or
hereafter issued pursuant to this Resolution). Subject to
the remaining provisions of this paragraph with respect to
credits to the Debt Service Reserve Account upon the issuance
of Additional Bonds, the moneys credited to the Debt Service
Reserve Account shall always be maintained in an amount
equal to the Average Annual Principal and Interest Requirement
(as defined hereinafter) for all Bonds at any time outstanding.
If at any time during a Fiscal Year the moneys credited to
the Debt Service Reserve Account are less than the Average
Annual Principal and Interest Requirement for all Bonds then
outstanding, there shall be deposited into the Debt Service
Fund for credit to the Debt Service Reserve Account from the
first moneys available therefor (after all other deposits
and credits required by subdivisions (1) and (2) of Section
606 of the Resolution shall have been made), such amount as
shall be necessary until there is again credited to the Debt
Service Reserve Account an amount at least ~equal to the
Average Annual Principal and Interest Requirement for all
Bonds then outstanding. If, on the first day of any Fiscal
Year, the moneys credited to the Debt Service Reserve Account
are in excess of the Average Annual Principal and Interest
Requirement for all Bonds then outstanding, the amount of
such access shall be paid into the Improvement, Replacement
and Extension Fund, to be used and applied as are all other
moneys deposited in or on deposit in that fund; provided,
that, in anticipation of the issuance of Additional Bonds
hereunder, all or part of such excess amount may be retained
in the Debt Service Fund for credit to the Debt Service
Reserve Account. In the event of the issuance of any
Additional Bonds, unless upon the delivery of such Additional
Bonds there shall then already be credited to the Debt
Service Reserve Account an amount equal to the Average Annual
Principal and Interest Requirement for all Bonds to be
outstanding upon the issuance of such Additional Bonds, there
shall (1) be paid into the Debt Service Fund for credit to
the Debt Service Reserve Account such amount, if any, from the
proceeds of the sale of such Additional Bonds or from such
79-80
other source or sources as the County may determine, so that
there shall then be credited to the Debt Service Reserve
Account an amount equal to the Average Annual Principal and
Interest Requirement for all Bonds to be outstanding upon the
issuance of such Additional Bonds, or (2) if and to the
extent there shall not be credited to the Debt Service
Reserve Account an amount so that there shall then be on credit
to the Debt Service Reserve Account an amount equal to the
Average Annual Principal and Interest Requirement for all
Bonds to be outstanding upon the issuance of such Additional
Bonds, there shall be deposited into the Debt Service Fund
for credit to the Debt Service Reserve Account in each
calendar month commencing with the calendar month beginning
immediately following the date on which such Additional Bonds
are delivered and paid for (after all other deposits and credits
required by subdivisions (1) and (2) of Section 606 of this
Resolution shall have been made) am amount which, if the same
amount is so deposited in each calendar month thereafter
until the day which is five (5) years after making the first
of such deposits, there shall then be credited to the Debt
Service Reserve Account an amount equal to the Average Annual
Principal and Interest Requirement for all Bonds then outstand-
ing, exclusive of any other series of Additional Bonds which
may have been issued during such five (5) year period and
with respect to which deposits are then being made to the
Debt Service Reserve Account in accordance with this sentence.
The moneys credited to the Debt Service Reserve Account
shall, except for the transfer therefrom to the Improvement,
Replacement and Extension Fund of excess amounts therein as
heretofore permitted in this paragraph, be used and applied
solely for the purpose of paying the principal of and
premium, if any, and interest on Bonds when due, whether at
their maturity or upon the redemption or purchase thereof, and
shall be so used and applied whenever there are insufficient
moneys in the Debt Service Fund (other than the Debt Service
Reserve Account) for such purpose. For purposes of this
paragraph, the term "Average Annual Principal and Interest
Requirement" shall mean, at the time of computation, the
quotient obtained by dividing the sum of (i) the amount
required to pay interest on all Bonds at the time outstanding
as and when due (but excluding any amounts to pay interest
which have been provided from the proceeds of Additional
Bonds) and (ii) the amount required to pay the principal of
all Bonds at the time outstanding as and when due, by the
number of years to the final maturity of all Bonds at the
time outstanding."
Such amendment shall become effective upon the
issuance, sale and delivery of the Series of 1979 Bonds
authorized by this resolution.
SECTION 18. Funding of Debt Service Reserve Account
as Condition Precedent to Issuance of Series of 1979 Bonds.
Prior to or contemporaneously with and as a condition precedent
to the issurance of the Series of 1979 Bonds, the County shall
pay into the Debt Service Fund for credit to the Debt Service
Reserve Account, from such source or sources as the County
may determine, an amount equal to the Average Annual Principal
and Interest Requirement for all Bonds to be outstanding upon
the issuance of the Series of 1979 Bonds (including the Series
of 1979 Bonds).
SECTION 19. Use of Certain Terms In Resolution.
Notwithstanding any definition of the term "Bonds" contained
in the Resolution, such term as used in Sections 302 through
313, Article IV, Article V, Section 612(5) and Section 802
of the Resolution shall not include the Series of 1979 Bonds.
Notwithstanding any definition of the term "Outstanding
Bonds" contained in the Resolution, such term as used in
the Resolution (except as used in Section 103, Article II and
Section 502 thereof) shall mean as of any time all Bonds
(Including "Additional Bonds", as such quoted term is defined
in the Resolution) at such time not paid or deemed to have been
79-81
paid or deemed to be no longer outstanding under the
Resolution and any resolution supplemental to the Resolution
authorizing the issuance of such Bonds.
SECTION 20. Invalidity of Sections, Paragraphs, Clauses
or Provisions. If any section, 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 21. Headings of Sections. The headings of the
sections of this resolution shall be solely for convenience of
reference and shall not affect the meaning, construction,
interpretation or effect of such sections or of this resolution.
SECTION 22. Effectiveness of Resolution. This
resolution shall take effect upon its adoption.
Vote: Unanimous.
On motion of Mr. Bookman, seconded by Mr. Dodd, the Board
adjourned at 1:00 p.m.
Vote: Unanimous
N~icholas M. Meiszer~
County Administrato~
E. Merlin O'Neill-, Sr~.
Chairman
79-82