HomeMy Public PortalAbout1973_01_10-250
MINUTES OF REGULAR MEETING OF LEESBURG TOWN COUNCIL, JANUARY 10, 1973.
A regular meeting of the Leesburg Town Council was held in the
Council Chambers, 10 West Loudoun Street, Leesburg, Virginia , on Janu-
ary 10, 1973 at 7 :30 P.M. The meeting was called to order by the Mayor,
with Councilman Murray offering the prayer. Those present were : Mayor
G. Dewey Hill, Councilmen Walter F. Murray, Robert A. Orr, John W. Pum-
phrey, C. Terry Titus and John A. Wallace, Jr. ; also Town Manager James
W. Ritter, Jr. and Town Attorney George M. Martin.
Mayor Hill recognized and welcomed Mrs . Robert Stanley and a Girl
Scout troop, who were in attendance to observe the functions of a Town
Council.
On motion of Councilman Pumphrey, seconded by Councilman Orr, the,
following resolution was unanimously adopted :
WHEREAS ;Kenneth , B.L.Rollinsnsubmitted his resignation-as Mayor
of the'.Towo' of Leesburg, effective January 8, 1973 , -due to his
election to the State Legislature of Virginia ,
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town
. of Leesburg, that his resignation be accepted with regrets .
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Town Manager Ritter reported as follows : -
(1) The two appropriations to Johnson and Williams on the addi-
tion to the Agenda have been approved by both committees and this reso=_-:
lution confirms this approval.
(2)'; Attached to -the Addition to the Agenda is a sample resolution
prepared by the Town Attorney for the Town of Middleburg sometime ago.
This is one that could be used, requiring all Banks to deposit securi-
ties for the purpose of securing deposits of the Town. We have no such
requirement as of this time.
(3) The $1,500,000 Bonds were delivered to the buyer in Richmond
on December 29th and the check was deposited in North American Bank &
Trust for safekeeping until tonight. After this , the money was trans
ferred to United Virginia Bank in a Repurchase Agreement, to which
United Virginia Bank applied as collateral $1,600,000 in U. S. Treasury-
Bills ,
reasuryBills , maturing March 31, 1973 at 5-3/8 percent. Thus , the Town will
pick up approximately $1 ,700 in interest in those seven or eight days.
(4) He explained that the Supplemental Appropriation for Yount,
Hyde & Company in the amount of $372.77 is due to the fact that their
bill was more than had been anticipated in the Budget, that amount hav-
ing been $2,600 .
(5) He has been in touch with Mr. Alberts at Westinghouse con-
cerning a site for the water tank. He has received the plans given to -
Mrs. Carr and they are investigating and will be back in touch with us
in a few days . He sounded rather encouraging. .
(6) The Finance Committee asked that bids be secured on investing
our second Revenue Sharing Check in the amount of $40,278. All four
Banks were notified this morning and we have bids tonight from these
Banks.
Councilman Orr requested that VEPCO be asked to remove 2 poles which u
obstruct. vision at the corner of West Market and Ayr Streets . He called
attention to the fact that they waited to move the one on Dry Mill
Road until after there was an accident involving personal injury.
Town Manager Ritter opened the following bids from various Banks
on monies offered for investment by the Town :
Peoples National Bank
$600,000 for six months - 5 .25%
$600,000 for one year - 51%
(Subject to a maximum of $300,000 for each maturity)
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MINUTES OF JANUARY 10, 1973 MEETING.
Airport Fund - $25 ,000 for 150 days )
'Utility Fund - 50,000 for 150 days )5% for less than one year
General Fund - 100,000 for 150 days )51% for one year or longer
Water/Sewer . )
Availability Fund - $40,000 for one year) .
$40,278 (Revenue Sharing Check) for. 90 days - 57. per annum.
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First Virginia Bank - First National .
$600,000 for six months - 5 . 51%
$600,000 for one year - 5 .637.
$25 ,000 for 5 months - 5 .00%
$50,000 for 5 months - 5 .00%
100 ,000 for 5 months - 5 .45%
40,000 for one year - 5 .52%
. First & Merchants. National Bank -
Airport Fund - $25 ,000 for 150 days - 5 .00% _
Utility Fund - 50 ,000 for 150 days - 5 .00%
O Water/Sewer.
Availability Fund - 40,000 for one year - 5 .50%
rr,.-1 Revenue Sharing Funds - $40,278 for 90 days - 5 .007.
General Fund - 100,000 for 150 days - 5 . 76%
C] Bond Fund - $600,000 for 6 months - 5 .86%
Bond Fund - 600,000 for one year - 6 .06%
They state that their Bank has on deposit with the Federal
Reserve Babk in Richmond a total of $850,000 in securities,
. and they would deposit additional funds required.
North American Bank & Trust
Offered on a Maturity Basis :
I
Airport Fund)
Utility Fund) 150 days - $175 ,000 - .05880%
General Fund)
Bond Fund - 189 days - $600,000 - .05885%
Bond Fund - 1 year $640,000 - .061007.
Offered on an Individual Fund Basis :
Airport Fund - 150 days - $25 ,000 - .05000% (compounded daily)
Utility Fund - 150 days r• 50,000 - .05000%(compounded daily
General Fund - 150 days - 100,000 - .05875%
Water/Sewer
Availability Fund - 1 year - $40,000 - .05500%
Bond Fund - 180 days - $600,000 - .05885%
Bond Fund - 1 year - 600,000 - .06100%
It was decided at this time that Council would go on with other items
on the Agenda, allowing Councilman Wallace time to compute the above
bids .
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On motion of Councilman Wallace, seconded by Councilman Orr, the
following resolution was offered :
BE IT RESOLVED by the Town Council of the Town of Leesburg,
111
that the following appropriations be made :
$ 372 . 77 — Supplemental Appropriation - Yount, Hyde & Co.
Annual Audit . ,
1,207 .00 - Yount , Hyde &. Co. - Accounting services during
January, 1972 . '
874.99 - . Interest on $125 ,000 borrowed from First & Mer-
chants and Peoples National Bank. Interest for
• period 11/12/72 to 1/10/73 . $1,500,000 Bond Issue .
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MINUTES OF JANUARY 10 , 1973 MEETING.
$125 ,000.00 - $62 , 500 due First & Merchants and $62,500 due
Peoples National Bank,. borrowed in anticipation
of $ 1,500,000 Bond Issue , to be paid out of
$1 ,500,000 Bond Issue .
68,846 .39 - Reimburse 1971 Bond Issue from $1,500,000 Bond
Issue , in accordance with attached list of items.
10,730.88 - Reimburse General Fund from $1,500,000 Bond
Issue; for interest .paid'•on' $=125 ,;000 from
11/12/70 to 11/12/72. •
991.24 - Dewberry , Nealon & Davis for Storm Sewer De-
sign and Stakeout on S. Wirt Street. 1971
Bond Issue .
628.50 - Dewberry , Nealon & Davis for Storm Sewer De-
sign - Town Parking Lot. 1971 Bond Issue .
1,406 .60 - Dewberry, Nealon & Davis for revising plans
on Dry Mill Sewer to conform to design by
Bartlett Co. 1971 Bond Issue.
527 . 95 - Northern Bank Note Co. for printing' Bonds.
$1,500,000 Bond Issue .
Councilman Wallace explained that the $1,207 .00 to the auditors was
for help in the Treasurer 's Office , trying to get the situation
straightened out after the death of the Treasurer, as well as some
training in the methods being used. Mayor Hill explained that it is
hoped that some part of the $1,406.60 being paid to Dewberry, Nealon
and Davis for revising plans on the Dry Mill Sewer might be recouped
in the future, as other property is developed in this area. The above
resolution was then unanimously adopted.
On motion of Councilman Titus, seconded by Councilman Pumphrey,
the following Ordinance was offered:
BE IT ORDAINED by the Town Council of the Town of Leesburg,
that Sec. 20-22. Physical Improvements Required of the Town
Code be amended to provide for developer building one-half
of the width of the street where no pavement exists .
The amendment will read as follows :
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(c) Construct, at- his expense; pavement for one-half width
of the street- where there is no existing pavement or,
where pavement exists , to construct any pavement be-
tween existing pavement and new curb and gutter.
Councilman Titus amended this to add the following : '
AND BE IT FURTHER ORDAINED that the existing Section (c) be
repealed.
This was seconded by Councilman Pumphrey and unanimously adopted. The.
Ordinance, as amended, was then unanimously adopted.
On motion of Councilman Wallace, seconded by Councilman Pumphrey,
the following resolution was unanimously adopted:
•
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that the following appropriations be made :
$5 ,000.00 - Johnson and Williams for Feasibility Study.
1971 Bond Issue .
2,500.00 - Johnson and Williams for preparation of Pre-
liminary Plans on Sewer Plant .' 1971 Bond Issue.
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MINUTES OF JANUARY 10, 1973 MEETING. --
On motion of Councilman Titus, seconded by Councilman Pumphrey,
the following resolution was unanimously adopted after explanation by
Mr. Ritter of the need for this truck :
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that the Town Manager be authorized to purchase a 3i-ton
pick-up truck for Utility Department , at an approximate cost
of $2 ,625 .00.
On motion of Councilman Pumphrey, seconded by Councilman Murray,
111 the following resolution was unanimously adopted :
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that Performance Bond in the amount of $38,460 to cover physi-
cal improvements in Rock Springs Heights , Sec . III , be ap-
proved.
On motion of Councilman Pumphrey , seconded by Councilman Wallace,
the following resolution was unanimously adopted: •
Q+ BE IT RESOLVED by the Town Council of the Town of Leesburg ,
Q that regFuest•; for water and sewer extension by Al diZerega,
to serve Rock Springs Heights , Sec . III, be approved.
Lti
On motion of Councilman Pumphrey , seconded by Councilman Titus , the
following resolution was offered :
BE IT' RESOLVED by the Town Council of the Town of Leesburg,
that the application of Leesburg Square for water and sewer
extension be approved.
Mr. Long, representing the potential developers , was present and agreed
to the following amendment to the above, moved by Councilman Titus , sec-
onded by Councilman Pumphrey and unanimously adopted:
but that it be understood that this does not guarantee sewer
and water to any lot.
Mayor Hill said he understood that there would be just ingress to the
shoppyg ge &dP off of Route 7 , with both ingress and egress off of
Fort- . Councilman Titus added that the corner lot would have both off of
Route 7 . The resolution, as amended, was then unanimously adopted.
Councilman Titus said Council took no formal action regarding private
streets , however, he had informed the Planning Commission of Council 's
feelings , as well as a report done for the' Board of Fairfax County, which
will be taken under advisement at a later date . Mayor Hill said the
Street Committee discussed this to some degree and it was felt that, in
some instances , private streets are the lesser of two evils - that, with
proper inspection and construction, there is no problem with such streets .
At this time, Council returned to discussion regarding the invest-
' ment of various funds . Councilman Wallace said, that, from his computa-
tions , North American Bank & Trust would be the high bidder, however, he
asked if these investments would be collateralized. Mr. Jones , Presi-
dent of North American Bank & Trust, pointed out that this Bank is a
State Bank and the Code of Virginia states that a Bank may pledge col-
lateral to secure public monies , but this is up to the Town; He said
he understood that most Towns do not require this and he felt the Code
was trying to give the small Bank an equal footing with other Banks in
the community . He referred to a resolution adopted by the Council at
the time North American Bank & Trust was named as a 'depository for cer-
tain funds of the Town, which resolution did not provide for collateral.
Mr. R. K. Gheen, Vice President of First & Merchants , also referred to
the same type of resolution, citing that this did not provide for col-
lateral either. There followed a great deal of discussion between Coun-
cil members , the Town Attorney and Mr. Jones with regard to this matter.
Councilman Wallace believed that the Town must look at these bids in
light of protecting the taxpayers ' money and, on the basis of collateral-
'
ized bids , First and Merchants , Peoples and First Virginia Bank all com-
ply . Mr. Jones then asked if their bid would be ruled improper. Coun-
cilman Murray felt that all Banks should be bidding under the same con-
ditions and offered the following resolution, which was seconded by
Councilman Wallace :
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MINUTES OF JANUARY 10,- 1973 MEETING:
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BE IT RESOLVED, that any bank or trust company in which funds
of the Town of Leesburg are deposited shall deposit securities
for the purpose of securing such deposits in amounts and kinds
previously approved by the council, or in lieu of depositing
such securities , adopt a resolution by the Board of Directors
certified and furnished to the council which conforms to Sec-
. tion 6 . 1-79 of the 1950 Code of Virginia, as amended.
BE IT FURTHER RESOLVED, that such depository selected by the
council shall provide a bond, or pledge of securities, in the
same manner and form as required by Section 58-944 of the
1950 Code of Virginia, as'.amended, and that deposit of such
securities may be made with the Federal Reserve Bank of Rich-
mon4 as provided in Section 58-946 . 1 of the 1950 Code of Vir-
ginia , as amended.
Councilman Wallace read the Code section relative to the deposit of
funds received from the sale of Bonds. This is very cgern stating that
such deposits have to be collateralized. Town AttorneY7agreed that this
is very clear. Mr. Jones then read Section 6 . 1-79 of the Code of Vir-
ginia , which provides that any bank or trust company may adopt a' resolu-
tion to the effect that , in the event of the insolvency of failure of
such bank or trust company, public funds deposited therein shall, in 7
the distribution of such bank or trust company , be paid in full before
any other depositors shall be paid. Town Attorney Martin said he be-
lieved this to be an option with the Bank.
Mr. John Mapp, representing Peoples National Bank, said that, with
regard to preferential treatment insofar as the Code is concerned, the
Town has a public trust but he feels it grossly unfair to other de-
positors to pass a blanket resolution '- they would prefer to secure
deposits as they are received.
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Councilman Wallace then asked Mr. Jones to what extent they would
collateralize these investments . Mr. Jones said they would collateralize
$500,000 for one year.
On motion of Councilman Wallace, seconded by Councilman Murray,
Council voted unanimously to delete the following portion of the reso-
lution
esolution offered above :
"o;'in lieu of depositing such securities, adopt a resolution
by the Board of Directors certified and furnished to the coun-
cil which conforms to Section 6 . 1-79 of the 1950Code of Vir-
ginia , as amended. "
The above resolution, as amended, was then unanimously adopted, reading
as follows :
BE IT RESOLVED that any bank or trust company in which funds
of the Town of Leesburg are deposited shall deposit securities
for the purpose of securing such deposits 'in amounts and kinds
previo}asly approved by the council, and
BE IT FURTHER RESOLVED, that such depository selected by the
council shall provide a bond, or pledge of securities , in the
same manner and form as required by Section 58-944 of the Code
'of Virginia , as amended, and that deposit of such securities •
may be made with the Federal Reserve Bank of Richmond, as pro-
vided in Section 58-946. 1 of the 1950 Code of Virginia, as
amended..
On motion of Councilman Murray , duly seconded, the following action
was unanimously adopted: '
That, under the above criteria , the Town allow North American
Bank & Trust to be the successful bidder on anyportionsof
these monies that they can collateralize, and, any they cannot
collateralize will go to the next highest bidder and, in
those cases where the amounts are $50,000 or less •and there
are identical bids, they be determined by a draw of lots.
A
25A5.
• MINUTES OF JANUARY 10 , 1973 MEETING. .
Councilman Murray left the meeting at 9:00 P.M.
Mr. Gheen, of First & Merchants National Bank, withdrew his Bank's
bids• of 5 percent on the $25 ,000, $50,000 and $40-,278 investments.
On motion of Councilman Orr, seconded by Councilman Wallace, the .
following resolution was unanimously adopted: -
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that the following Banks be awarded the investment of the
following :
From Airport Fund - $25 ,000 for 150 days to
First Virginia Bank-First National , at 5 per cent.
From Utility Fund - $50,000 for 150 days to
Peoples National Bank, at 5 per cent .
From General Fund $100,000 for 150 days to
First and Merchants National Bank, at 5 . 76 per cent.
• •
From Water/Sewer Availability Fund - $40,000
for one "(1)• year, to First Virginia Bank-
First National, at 5 . 52 per cent.
G On motion of Councilman Wallace, seconded by Councilman Orr, the
following resolution was unanimously adopted:
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that the following Bank or Banks be awarded the investment
of all or a portion of the following, from the $1,500,000
Bond Fund :
$600 ,000 - to be invested for 6 months, to
First and Merchants Bank, at 5 .86 per cent .
$600,000 - to be invested for one (1) year, to
First and Merchants Bank - $100,000, at 6 .06 per cent.
North American Bank & Trust - $500,000, at 6 . 10 per cent .
On motion, duly seconded, the following resolution was unanimously
adopted:
BE IT RESOLVED by the Town Council of the Town of Leesburg,
that Peoples National Bank be awarded the investment of
$40,278 (Revenue Sharing Funds) for 90 days , at an inter-
est rate of 5 per cent.
Mr. Jones requested that a new depository resolution be given to
North American Bank & Trust in order to clarify the requirement on
collateral.
On motion of Councilman Titus , seconded by Councilman Orr, the
following resolution was unanimously adopted:
BE IT RESOLVED by the Town Councilof the Town of Leesburg,
that the certified checks in the amount of $32 ,750.31 to
cover physical improvements in Leesburg Square be approved.
The Minutes of the Special Meeting of December 7 , 1972 were ap-
proved as written.
General Bertram Harrison, representing the Keep Loudoun Beautiful,
organization, addressed Council briefly, asking the help of the Council
in trying to clean up the Town . He said he had tried to get individual
property owners to do something, but had not been very successful. He
would like to see Council enforce some kind of anti-litter campaign.
He mentioned specifically business establishments which have a lot of
trash and the various parking lots in town, which are constantly littered
with trash. Mayor Hill invited General Harrison to attend a Street Com-
mittee meeting and see what laws might be on the books that are not be-
ing enforced.
On motion, duly seconded, the meeting adjo rued at 9: 21 P.M.
AI a
a Mayor
Clerk of t 'e Council
INVOICES THAT WERE PAID FROM PRIOR BOND ISSUES
TO BE REIMBURSED TO 1971 BOND ISSUE FROM $1 , 500,000
BOND ISSUE
Date To Amount For
5/ 2/69 J & W $10,000.00 Design of Potomac River Water Line.
8/28/69 J & W . 5,675 .00 Topographic Surveys for Potomac
Project.
11/28/69 J & W 2,622 .50 -Design of Potomac River Water Line.
1/23/70 J & W 6,392 .00 -Topo and Land Surveys - Potomac
River Project.
8/13/70 J & W 822 .00 Setting Property Line pipe .
9/23/70 J & W - 3 ,515.87 Soil Borings .
Wendell
3/10/71 Kline 200 .00 Appraisal of Rust Property.
3/24/71 J & W 150.00 Preparation of metes and bounds de-
scription of proposed road across
VEPCO.
McKenzie
4/14/71 Downs 100.00 • Appraisal of Rust Property.
10/13/71 J & W 1,500 .00 Preparing drawings in connection
with Condemnation Suit.
3/ 8/72 J & W 2,000.00 Filing Application.
3/ 8/72 J & W 10,000 .00 Design of Potomac Project .
Wendell
8/ 9/72 Kline 50.00 Reappraisal of Rust Property.
J. T.
10/11/72 Martz 15 ,205 .00 • Condemnation Award.
J. T .
10/11/72 Martz 115 .00 Handling Condemnation Case.
Wendell
10/11/72 Kline 150 .00 Court Testimony.
Gilbert
10/25/72 .Halasz 100 .00 Court Reporter.
J. T.
11/ 8/72 Martz 19.00 -• Recording Fee.
11/22/72 J & W 3 . 96 Printing .
George
11/22/72 Martin 1,668 .50 Handling Rust Case.
1. v
.1 Date To Amount For
Bond
12/13/72 Buyer $ 404.01 Printing Notice of Sale .
Times
12/13/72 Mirror 53 . 55 Printing Notice of Sale - Bond
Issue .
12/27/72 Moody 's 600.00 Bond Rating .
12/28/72 J & W 5,000.00 Feasibility Study.
12/28/72 J & W 2 ,500.00 Preparation of Preliminary Plans
on Sewer Plant.
TOTAL $68 ,846 .39