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HomeMy Public PortalAbout1972_11_13SPEC 2I9 MINUTES OF SPECIAL MEETING OF LEESBURG TOWN COUNCIL, NOVEMBER 13 , 1972 . - A Special Meeting of the Town Council of the Town of Leesburg was held in the Council Chambers , 10 West Loudoun Street, Leesburg , Virginia , on November 13 , 1972 at 4 :00 P.M. , pursuant to Notice issued to all Council members by Mayor Kenneth B. Rollins and delivered by Leesburg Police Officer George W. Hunt , copy of which is attached hereto. Those present were : Mayor Kenneth B . Rollins , Councilmen G . Dewey Hill , Wal- ter. F . Murray , Robert A. Orr, John W. Pumphrey , C. Terry Titus and John A . Wallace , Jr. ; also Acting Town Manager Robert C. Forbes . On motion of Councilman Wallace , seconded by Councilman Hill , the I following Resolution was unanimously adopted : RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,500,000 WATER AND SEWER SYSTEM BONDS OF THE TOWN OF LEESBURG WHEREAS, the Council of the Town of Leesburg adopted on June 15 , 1970 an ordinance authorizing the issuance of $1, 500,000 of bonds of the Town of Leesburg to finance the cost of enlarging, extending and improving the Town 's water and sewer system and providing for the submission of the question of issuing said bonds VP to the qualified voters of said Town ; and 02 WHEREAS, at an election duly held on July 14 , 1970 a majority Cz0 of the qualified voters voting at said election were in favor of 2 and approved the issuance of said bonds ; and WHEREAS , the Council of the Town of Leesburg desires to pro- vide for the issuance and sale of $1,500,000 Water and Sewer System Bonds pursuant to said ordinance and election and in accordance with the Public Finance Act ; NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Leesburg as follows : I Section 1 . The Town of Leesburg shall issue its bonds of the aggregate principal amount of $1,500 ,000 to finance the en- largement , extension and improvement of the combined water supply and sewage disposal system maintained by the Town by the con- struction of improvements thereto, including the construction of water treatment facilities at the Potomac River at a point two miles east of the Town of Leesburg, pumping stations and an elevated storage tank and the installation of a raw water intake line and water transmission mains and distribution lines , includ- ing the acquisition of the lands or rights-in-land required therefor , and to pay the principal of and interest on a $62 ,500 Water Bond Anticipation Note , numbered 3R, dated November 10, 1972 , payable January 10 , 1973 and a $62 ,500 Water Bond Antici- pation Note , numbered 4R, dated November 10 , 1972 , payable Janu- ary 10, 1973 issued in anticipation of the issuance of bonds authorized by the aforementioned ordinance to finance the pur- pose specified therein. Section 2 . Each of said bonds shall be designated "Water and Sewer System Bond". Said bonds shall be dated December 15 , 1972 and shall consist of three hundred bonds of the denomina- tion of $5 ,000 each, numbered from 1 to 300 , inclusive, in the order of their maturity , payable in annual installments on De- cember 15 in each year as follows : II $50,000 in each of the years 1975 to 1982 , inclusive ; $75 ,000 in each of the years 1983 to 1994 , inclusive ; and $25 ,000 in each of the years 1995 to 2002 , inclusive . Section 3 . Said bonds shall bear interest at a rate or rates which shall not exceed 8% per annum and such interest shall be payable semi-annually on June 15 and December 15 . The bonds shall be coupon bonds without privilege of registration. °220 MINUTES OF NOVEMBER 13 , 1972 SPECIAL MEETING . Section 4 . Both principal of and interest on the bonds shall be payable at the principal office of First & Merchants National Bank, Richmond, Virginia , or, at the option of the holder, at the principal office of Chase Manhattan Bank, New York, New York, in any coin or currency of' the United States of America which at the time of payment is legal tender for the payment of public and private debts . Section 5 . The corporate seal of the Town shall be affixed to or impressed upon each of said bonds and each of said bonds shall be signed by the Mayor of the Town and shall be attested by the Clerk of Council , and each of the interest coupons repre- senting the interest payable on such bonds shall be authenticated by the facsimile signature of such Mayor and Clerk of Council. Section 6 . Each of said bonds and each of the interest. coupons thereto attached shall be in substantially the following form : (Form of Bond) No . No. UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA COUNTY OF LOUDOUN TOWN OF LEESBURG WATER AND SEWER SYSTEM BOND $5 ,000 $5 ,000 The TOWN OF LEESBURG (hereinafter referred to as "Town") , a municipal corporation of the Commonwealth of Virginia , situated in the County of Loudoun , hereby acknowledges itself indebted and, for value received, promises to pay to the bearer of this bond, the sum of FIVE THOUSAND DOLLARS ($5 ,000) on December 15 , 19_, and to pay interest thereon from the date of this bond until it shall mature at the rate of per centum ( 70) per annum, payable semi-annually on June 15 and December 15 in each year, upon presentation and surrender of the annexed coupons therefor , as they severally become due . Both principal of and interest on this bond will be paid at the princi- pal office of First & Merchants National Bank, Richmond, Virginia , or, at the option of the holder, at the principal office of Chase Manhattan Bank, New York , New York, in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts . This bond is one of an issue of bonds of like date and tenor, except as to date of maturity and rate of interest, authorized by an ordinance duly adopted by the Coundil of the Town on June 15, 1970 and issued pursuant to and in accordance with the Public Finance Act (Chapter 5 of Title 15 . 1 of the Code of Virginia , 1950, as amended) , to finance the enlargement ; extension and im- provement of the Town 's combined water supply and sewage disposal system. The issuance of the bonds was approved by a majority of the qualified voters of the Town of Leesbutg voting at an election held on July 14, 1970 . The full faith and credit of the Town are hereby pledged to the payment of the principal of and interest on this bond in ac- cordance with its terms . It is hereby certified and recited that all conditions , acts and things required by the Constitution or statutes of the Common- wealth of Virginia to exist , be performed or happen precedent to or in the issuance of this bond, exist, have been performed and have happened, and that the issue of bonds of which this is one, together with all other indebtedness of the Town, is within every debt and other limit prescribed by the Constitution or statutes of the Commonwealth of Virginia . 22 MINUTES OF NOVEMBER 13 , 1972 SPECIAL MEETING. IN WITNESS WHEREOF , the Town has caused its corporate seal to be affixed hereto or impressed hereon, and this bond to be signed by its Mayor and attested by its Clerk of Council, and the coupons hereto annexed to be authenticated by the facsimile signature of its Mayor and Clerk of Council and this bond to be dated December 15 , 1972 . Mayor rn ATTEST: Clerk of Council (Form of Coupon) No . No. June On the 15th day of December, 19_, the TOWN OF LEESBURG, a municipal corporation of the Commonwealth of Virginia , situ- ated in the County of Loudoun , will pay to the bearer of this coupon DOLLARS ($ ) at the principal office of First & Merchants National Bank, Richmond, Virginia , or, at the option of the holder, at the principal office of Chase Manhattan Bank, New York, New York in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of pub- lic and private debts , being the interest then due on its Water and Sewer System Bond , dated December 15 , 1972 , No. Mayor Clerk of Council Section 8 . The full faith and credit of the Town of Lees- burg are hereby pledged to the payment of the principal of and interest on said bonds , and an ad valorem tax shall be levied annually on all property subject to taxation by the Town for the payment of such principal and interest as the same shall become due and payable . Section 9. The Mayor and Clerk of Council are hereby author- ized and directed to execute said bonds in accordance with their terms . Section 10 . The Council shall receive sealed proposals for the purchase of the $ 1 ,500,000 Water and Sewer System Bonds pur- suant to and in accordance with the following Notice of Sale : NOTICE OF SALE TOWN OF LEESBURG, VIRGINIA $1, 500,000 WATER AND SEWER SYSTEM BONDS Sealed bids will be received for the Town of Leesburg, a municipal corporation of the Commonwealth of Virginia , until 11 :00 o 'clock, A.M. , Eastern Standard Time , on the 7th day of December, 1972 , at the office of the State Commission on Local Debt of the Commonwealth of Virginia, Room 101 Finance Building, Capitol Square , Richmond, Virginia , at which time said bids will _ be opened by said Commission, for the purchase of $1,500,000 Water and Sewer System Bonds of the Town of Leesburg, Virginia . 222 • MINUTES OF NOVEMBER 13 , 1972 SPECIAL MEETING . The bonds are payable in annual installments on December 15 in each year as follows : $50 ,000 in each of the years 1975 to 1982 , inclusive ; $75 ,000 in each of the years 1983 to 1994 , inclusive ; and $25,000 in each of the years 1995 to 2002 , inclusive . The bonds are of the denomination of $5 ,000 and are dated De- cember 15 , 1972 . Interest is payable semi-annually on June 15 and December 15 . The bonds are coupon bonds without privilege of registration and are payable at the principal office of First & Merchants National Bank, Richmond, Virginia , or, at the option of the holder, at the principal office of Chase Manhattan Bank, New York, New York . The bonds are issued to finance the enlargement , extension, and improvement of the Town ' s combined water supply and sewage disposal system. Bidders are invited to name the rate or rates of interest which the bonds are to bear, which rate or rates must be a multiple- or multiples of one -tenth or one-eighth of one per centum. No more than two rates may be named, and all bonds maturing on the same date must bear interest at the same rate . The difference be- tween the lowest and the highest rates named in the bid shall not exceed 2%. No rate may exceed eight per centum (8%) per annum. Each proposal submitted must offer a price which is not less than par and accrued interest and must offer to purchase all of the bonds . Unless all proposals are rejected, the bonds will be awarded to the bidderwhose proposal results in the lowest net interest cost to the Town determined by computing the aggregate amount of interest payable on all the bonds from their date to their respective maturities and deducting from such aggregate amount the premium offered, if any . In addition to the price bid, the purchaser mus pay accrued interest from the date of the bonds to the date upon which the bonds are delivered to the purchaser. Each proposal must be unconditional and must be accompanied by a certified or bank cashier 's or bank treasurer 's check or checks for $30 ,000 drawn uppnr.an incorporated bank or trust com- pany and payable to the Town of Leesburg to secure the Town against any loss resulting from failure of the bidder to comply with the terms of his proposal . The check or checks of the bidder whose proposal is accepted will be deposited by the Town and credited to the purchase price and no interest will be allowed thereon. The proceeds of the check or checks will be retained by the Town as liquidated damages in case the bidder fails to accept delivery of and pay for the bonds . Checks of unsuccessful bidders will be returned upon award of the bonds . Immediately following the time all proposals are to be re- ceived and opened , the State Commission on Local Debt of the Commonwealth of Virginia will open the same and ascertain the amount of each proposal and the name or names of the person or persons making the same and will ascertain the best bid in ac- cordance with the terms hereof and certify the same to the Town Council of the Town of Leesburg, and a representative of the Town Council of the Town will be present for the purpose of act- ing upon the recommendation of the Commission as to the best bid ; and the Town Council will cause such bonds to be prepared, exe- cuted and delivered to the successful bidder. The right is reserved to reject any and all bids . The bonds will be delivered to the First & Merchants National Bank, in Richmond, Virginia , or such other place as the Town may designate, on January 10, 1973 , or as soon thereafter as possible . The Town will furnish , without cost to the purchaser, at the time the bonds are delivered (1) the opinion of Messrs . Reed, Hoyt, Washburn & McCarthy, of New York City , that the bonds are valid 2.2'3,. MINUTES OF NOVEMBER 13 , 1972 SPECIAL MEETING. and legally binding obligations of the Town and that the Town is authorized and required by law to levy on all real property taxable by the Town such ad valorem taxes as may be necessary to pay the bonds and the interest thereon without limitation as to rate or amount , and (2) certificates in form satisfactory to said Attorneys evidencing the proper execution- and delivery of bonds and receipt of payment therefor , and (3) a certificate , dated as of the date of delivery of the bonds , and signed by the officers who signed the bonds , stating that no litigation is then pending or, to the knowledge of such officers , threatened to re- strain or enjoin the issuance or delivery of the bonds or the levy or collection of taxes to pay the bonds or the interest thereon, or questioning the validity of the statutes or the pro- ceedings under which the bonds are issued, and that neither the corporate existence or boundaries of the Town , nor the title of any of the said officers to their respective offices , is being contested . Bidders submitting bids must use the bid form which may be obtained from the State Commission on Local Debt . 4r Each proposal should be enclosed in a sealed envelope marked "Proposal for Town of Leesburg Bonds", and should be directed to 1.1.4 the Council of the Town of Leesburg , c/o State Commission on Local Debt, Room 101 Finance Building , Capitol Square , Richmond, Vir- ginia" . Further information will be furnished upon application to the undersigned . All bids will be received by the Commission for and on be- half of the Town of Leesburg , in the Commonwealth of Virginia . STATE COMMISSION ON LOCAL DEBT Secretary Section 11 . The Clerk of Council is hereby- authorized and directed to publish a copy of such Notice of Sale in the Loudoun Times-Mirror , a newspaper published in Leesburg , Virginia and in The Daily Bond Buyer, a financial newspaper published in the Borough of Manhattan , City and State of New York . Sealed proposals for the. purchase of the bonds described in said notice shall be received and considered pursuant to and in accordance with said notice . Section 12 . This resolution shall take effect immediately upon its adoption by the Council . There being no further business , the meeting was adjourned at 4 : 17 P.M. Mayor Cerk of e Council