HomeMy Public PortalAbout1983_03_23 193
MINUTES OF REGULAR MEETING OF LEESBURG TOWN COUNCIL AND PUBLIC
HEARINGS ON REVENUE SHARING AND AIRPORT LAYOUT PLAN, MARCH 23 ,
1983 .
A regular meeting of the Leesburg Town Council was held in the
Council Chambers, 10 West Loudoun Street, Leesburg, Virginia on
March 23 , 1983 at 7 : 30 p.m. The meeting was called to order by the
Mayor, with Mr. Tolbert giving the invocation, and followed with
the Salute to the Flag led by Mr. Coffey. Present were : Mayor
Robert E. Sevila, Councilmembers Charles A. Bos , Edgar L. Coffey,
Jr. , Reginald K. Gheen, Marylou Hill, John W. Tolbert, Jr. and
Howard M. Willis, Jr. ; also Town Manager John Niccolls, Deputy
Manager Jeffrey H. Minor, Assistant Manager for P.lanningiand .De-
velopment Marc Weiss , Director of Finance Donald 0. Taylor and
Town Attorney George M. Martin.
On motion of Mrs. Hill , seconded by Mr. Tolbert, the minutes
of the regular meeting of February 9 , 1983 were unanimously adopted :
Aye : Councilmembers Bos , Coffey, Gheen, Hill , Tolbert, Willis
and Mayor Sevila.
Nay : None.
PETITIONERS :
Mr. Herbert Ingram of 6 South Morven Park Road read into the
record a letter from Mr . and Mrs . Cecil Dickson, Mr. and Mrs. Wil-
liam J. McDonald, Mr. and Mrs. Edward Reeves, Mr. and Mrs . W. Hugh
Peal, Mr. and Mrs. Winslow Williams and Mr . and Mrs . Gary L. Voight,
all residents of West Market Street, protesting what they termed
"the newest proposal of the Town Manager to the Highway Department
requesting widening of West Market Street between Ayr Street and
Morven Park Road. " This referred to an item on the agenda for to-
night concerning State funding for several highway projects in Lees-
burg over the next several years . Their request was that no action
be taken on this matter without affording them an opportunity to
voice their objections individually and collectively. Mr. Bos said
the purpose of this resolution is to keep the money allocation open
with the State Highway Department - it is no commitment or intent
for the town to promote any road widening at this time. Mr. Willis
said the sole purpose of this resolution is to maintain allocation
of Highway Department funds to the town or we stand a chance of
losing such funding - it had nothing to do with this particular
project or doing anything to West Market Street. Mr . Niccolls said
he has made no proposal to the Highway Department to improve or
change that road whatsoever. The Highway Department has asked the
town to prepare a priority list of road improvements for a six-year
project . Our plan is to ask VDH&T to do an overall study of the
highway needs in the enlarged town (effective January 1, 1984) and
to make a presentation to the Council , which will select from among
the proposals those of the highest priority and make request for
funding. Such a request has not been made by him. Mayor Sevila
asked if the public will have an opportunity to be heard before
such projects are placed on a list of priorities? Mr. Niccolls
said Yes, it is a process involving both the town and the Highway
Department in public hearings. The adoption of a Thorofare Plan
as part of the comprehensive planning process would itself be the
subject of local public hearings and then the allocation of any
particular funds to a project is always the subject of a VDH&T lo-
cation and design hearing. There is ample opportunity at both the
local and the State level to accept public comment. The location
and design studies are in the locality in which the highway is to
be built. Mrs. Hill felt this request is prompted by the fact that
this project was voted down and now it is being put back on the
study list - perhaps this could be explained further in the wording
of the resolution.
Mr. Emmett Jackson said he was called within the last hour that
there will be action taken tonight on the widening of West Market
Street - he asked if this is true? Mayor Sevila advised that there
will be no action taken tonight with regard to either of these streets.
Mr. Bos was concerned that a false rumor has been started concerning
this and asked if Mr. Jackson knew what might have prompted calls to
all these people? Mr. Jackson did not know, but this is one of the
historic parts of town and it could ruin a lot of nice property.
194
MINUTES OF MARCH 23, 1983 MEETING .
Mayor Sevila said there is a matter relating to highway funding
coming up tonight - it will be considered openly and before them.
Ayr Street and West Market Street are mentioned, but it is impor-
tant for them to know what they will be considering here.
PUBLIC HEARING ON AIRPORT LAYOUT PLAN:
Mr. Niccolls called attention to the Market Analysis/Planning
Study for Leesburg Municipal Airport presented to Council tonight.
This study was authorized by Council last year as part of an effort
to identify the correct market approach for development of the air-
port and to revise the Airport Layout Plan - it should serve as a
useful guide in making decisions about airport development for the
next several years . He introduced Mr. Fred Taylor of the consult-
ing firm of Simat, Helliesen & Eichner, Inc . , and acknowledged the
presence of Chairman of the Airport Commission Carl Gregg and other
members of that Commission.
Mr. Taylor explained that the Town requested a realistic de-
velopment plan for the airport, which examines the following two
major facility development options : (1) To upgrade and expand the
existing main runway to accommodate business jet activity and (2)
To improve existing single-engine and light twin-engine aircraft
services at the airport. He explained in detail the research in-
volved in the history, location, facilities and service area of
the airport and quoted figures as to what they feel it will be
capable of by 1992 . The Virginia State System Plan, which they
have adopted, indicates that the airport will have 310 based air-
craft by 1992 . Leesburg is operating well below what it is cap-
able of now. A study is being released this week which forecasts
160 , 000 operations at Leesburg by 1992 . Approximately 78 percent of
their based aircraft come from outside the county. He emphasized
that the airport does have a role in economic development - approxi-
mately 52 percent of the top industrials operate corporate aircraft -
this accounts for 87 percent of sales . The airport generally bene-
fits from economic development programs that take place. The area
around the airport is zoned rural agricultural - it is compatible
for industrial development. Airport industrial parks are common in
the region.
The airport is an industry itself - it attracts business to
the area - it provides employment and it generates revenues which
are cycled into local economy. It is a clean industry and FAA
safety standards are the highest. It appears that aircraft prop-
erty taxes are having a negative impact on the development of the
airport. A limited survey showed there are approximately 15 air-
craft that are not now based in Loudoun County - these owners are
choosing to locate in nearby Maryland and West Virginia where there
is no tax. They suggested that Leesburg consider the elimination
of the property tax and take a look at some type of user-based tax.
This would require some type of enabling legislation at the State
level . Overall , they feel Leesburg needs a flexible full-service
facility capable of handling both corporate aircraft and single and
twin-engine piston aircraft. The result of the demand analysis
indicates that the single-engine piston aircraft (the recreational
flyer) is now and will continue to be the backbone of Leesburg Mu-
nicipal Airport. They have adopted a runway extension as opposed
to the cross-wind runway - you can achieve many of the same oper-
ating efficiencies with less capital outlay, reduced land re-
quirement and lessen the environmental impact.
Mr. Rod McDonald, of Dewberry and Davis , exhibited the Airport
Layout Plan, stating that the entire project is phased and is based
on the projected figures discussed by Mr. Taylor. Phasing extends
through 1992 and the layout is such that whatever is necessary can
be done without halting any operationsat the airport. Hangars and
tie-down spaces, as well as parking, can be added as needed, and the
runway extension can be taken care of so that operations can continue
throughout. This plan is presented so that the FAA can see what is
planned for the Town of Leesburg ' s airport. It is intended to extend
the existing runway in a northerly direction first - a distance of
1, 000 feet - then when demand calls for it, they will extend it in
a southerly direction for 1, 000 feet. Eventually it will have the
MINUTES OF MARCH 23, 1983 MEETING.
magnitude of the Manassas airport and will be able to handle 1 9 5
the same type of aircraft. He exhibited the terminal area plan,
pointing out that the existing administration building and hangars
will be eliminated so that the itinerant tie-down and apron area
can be extended to handle the projected traffic . However, these
buildings will still be in the same general location and the new
hangars will be in the area of the existing hangars. The FAA has
asked them to locate the Flight Service Station in the area near
the entrance to the Airport. The costs included in their study
are based on projected construction costs, quantities are esti-
mated from the plans. Costs could probably change.
Mr. Taylor said the total development costs would be some $5. 8
million dollars - approximately 90 percent of this would be through
Federal grants, with a 10 percent, or 5-5 split, in the State and
local costs . The cost to Leesburg for the full plan would be some
$794 , 490 , based on the estimates provided by Dewberry and Davis.
These local costs would be expended as demand develops for the
facility. Development of the new administration building, vehicle
parking and runway extension are major portions of the Phase I cost.
Phase II - the runway extension to the south and improved taxiways -
would cost approximately $109 , 000 .
00Pat Kennedy, of SH&E, explained the airport impact model de-
veloped by their company, which forecasts revenues for the period
CD through 1992 . In 1982 , aircraft sales generated $1 . 9 million dol-
or lars - the largest category. Other significant categories were air
OD taxi, aviation gas and aircraft rental . Aircraft sales remains the
Q largest category for 1987 . They have introduced two new categories,
jet fuel and food service, for the forecast period. It is expected
that jet fuel will rise to become the second largest generating
category by 1992 . The latter is based on the nine jets they fore-
cast in the study program. The airport impact model traces the
.local impact of these revenues upon the Leesburg and Loudoun County
economy - he explained these in detail . The airport spent $260, 000
on local activities in 1982 ( $91 , 000 toward households, $76, 000 to-
' ward businesses and $92 , 000 toward government) . They project this
will rise to $534 , 000 by 1992 . In 1987 , they project the total im-
pact will be $1 . 4 million and $1 . 8 million by 1992 . This is a very
significant figure. There are 37 employed at the airport now and
they project this to rise to 83 by 1987 and to 108 by 1992 .
Mr. Taylor said that, in conclusion, the result of their analy-
sis is that there is demand for improved airport facilities at Lees-
burg Municipal Airport. Financially, it is a feasible undertaking.
The proposed FAA Flight Service Station was awarded to the town
after their study program was completed, so they had no chance for
an in-depth analysis of the impact of this facility - it will have
a significant impact on the traffic generated at the airport. It
will also attract new based aircraft owners and operators who might
like to locate near this facility.
In consultation with the Airport Commission, they have also es-
tablished goals and objectives for the operation of the airport.
They are as follows :
(1) Develop a quality full service facility. (In connection
with this, they are assisting the town in funding a marketing bro-
chure for the airport) .
(2) Enhance the economic development potential of the airport.
( 3) Increase the economic viability of the current operations.
(4) Actively promote and market the airport among potential
users .
Mr. Bos asked if they expect that most of the service area
will still be outside of Loudoun County after the runway is length-
ened? Also, why would corporate aircraft owners come to Leesburg
as opposed to someplace closer to where they live or work? Mr.
Taylor said that, generally, corporate aircraft owners and operators
tend to locate where they feel the facilities are best for their air-
craft - this is a very economically affluent area. Where we have
residents of Loudoun County basing their aircraft as far away as
BWI , we have one jet leasing firm that indicated they would like
. . n MINUTES OF MARCH 23, 1983 MEETING.
19 6 to place six to nine aircraft in this county, either at Dulles or
Leesburg, or split between the two. He said they don ' t see Lees-
burg becoming a major jet center - this is probably the role of
Dulles, but they do see a full service facility here. Mr. Bos asked
the over-all picture as far as the Federal grants are concerned - will
this same type of thing work in the future? Mr. Taylor said if the
airport development plan is approved by the FAA, then those grants
will be available. The problem would be if Congress tries to elimi-
nate that program altogether. We have a phased development plan here
that says we build what we can today and, as demand develops and we
become more economically self-sufficient, continue on from there.
Mayor Sevila said one of the proposals was to eliminate taxes on
based aircraft and he recommended some other form of user-based tax -
what other form of taxation might be available? Mr. Taylor said the
FBO operators at Leesburg and Page at Dulles indicated that it is
probably something in somewhat of a combination of a fuel flowage fee,
which really taxes the user on the amount he uses the facility, or some
type of revenue sharing program. He was not sure any one program can
make up for all the lost funds, but he felt sure there are programs
that can be developed in cooperation between the town and the county.
Mayor Sevila asked what other jurisdictions do? Is there any personal
property tax at all at BWI and some of these others mentioned? Mr.
Taylor said they have no personal property tax on cars, aircraft, boats
they don' t have fuel tax either if it can be proven the fuel goes into
the aircraft. Normally that kind of tax is passed off as a cost of
doing business and it is obviously deductible from Federal taxes. In
a situation where there is a new generation of aircraft coming on line
that are much more expensive, this is becoming a definite consideration
in the minds of the aircraft owners . Mayor Sevila asked if they project
then that the community would recover these lost $116 , 000 in taxes
through the $1 . 8 million dollars? Mr. Taylor said there would be the
potential elimination of the property tax altogether, without replacing
it - if the airport develops to the projected level of demand, they
hope those two numbers will show what the difference between the two
can be. All of the FBO' s and the aircraft owners felt some type of
use charge was fair and something that would be easier to administer.
They would hope the revenue generating capability of the airport would
far offset that loss . Mayor Sevila asked about Woodbridge, Manassas
and some of the other Virginia airports? Mr. Taylor said virtually
all of the Virginia airports, by State statute, tax aircraft as equip-
ment, as they would an industrial concern. The problem is that the
closer you get to other State lines that don ' t have taxes, the easier
the loss of potential users. Mayor Sevila asked if this airport, im-
proved under Phase I and Phase II adding to the runway,Paccommodate
these larger aircraft? He has heard that the runway would need rein-
forcement - is that correct? Mr. Taylor said it would accommodate
these aircraft and reinforcement is included in Phase I .
Mr. Niccolls said the Loudoun County Chamber of Commerce Board of
Directors will probably, in the next few days, adopt a resolution fa-
voring repeal of the aircraft personal property tax to the Board of
Supervisors - the Board can change the tax rate on classes of prop-
erty. Mayor Sevila asked if our Finance Department has done any pro-
jection of revenue to the town, based on taxation of based aircraft?
Mr. Niccolls said the annexation document stated that Leesburg would
adopt a local personal property tax on aircraft that was proportional
to the County ' s - therefore, if they reduced their tax to zero, this
policy would reduce ours to zero too. Mr. Taylor said this also has
a significant impact on the development of commercial operation if a
carrier were to come here and locate as a hub and permanently base
aircraft here. Most of the major carriers don ' t use Dulles as a hub
and probably don ' t locate in states that have these personal property
taxes, although there are commuter carriers located in Virginia .
Such a tax hampers them in their development. Mayor Sevila asked if
the Dulles Task Force is working on the repeal of this personal prop-
erty tax? Mr. Taylor was not sure, but he felt they would recommend
and pursue this .
Mr. Stanley Caulkins said there was special enabling legislation
granted when Dulles was located in Loudoun County that gave the County
the right to tax at a Federal airport . This has been a great stymie
to the development of aviation.
MINUTES OF MARCH 23 , 1983 MEETING.
Mr. B. W. Cochran asked what the present airport produces 1 9 7
in revenue for the town? Mr. Niccolls said, in general , it has
always paid its own way - there have never been any tax monies
used to finance airport operations. There have been loans made,
on which airport operations paid interest, but those have been re-
paid. Mr. Cochran said he has an airplane and wouldn ' t bring it
to Leesburg because he doesn ' t want to pay the tax on $60, 000 each
year. It is stationed in Middletown, Delaware. He said there is
no facility out there - he flew in recently with someone else late
in the day - you call in and someone answers to tell you the run-
way, but he feels sure this is in someone ' s home. He would like
1 II to base his plane here if they would do something about the taxa-
tion. He pays just a $30 per month tie-down in Delaware - no per-
sonal property tax. If you buy your aircraft there, they have only
one-quarter of one percent sales tax, here you probably pay five
percent - $3 , 000 . He feels that, if Leesburg loses the money, they
have to pay the taxes. He also said there has never been any defi-
nite operation here that is consistent - for example, how long has
the present operator been there? What are the present services?
Are you really deriving all the money you should from the services
that are being performed? People learn to fly here from Maryland
and D.C. - do we get revenue from that? Do trained pilots have to
OD pay a license to operate out there? Mr. Niccolls said they do.
Mr. Cochran said there are a lot of people interested in flying,
O but it is very expensive.
OD PUBLIC HEARING ON PROPOSED USE OF REVENUE SHARING FUNDS :
OD
Q Mr. Niccolls said the Federal Revenue Sharing Act requires lo-
calities to advertise and conduct a public hearing indicating how
they plan to use revenue sharing funds in the coming fiscal year.
This is a technicality in Leesburg because a decision has been made
year after year to use these funds for operating expenses of the
law enforcement activities. The advantage of using such funds for
these operating expenses is that there are no additional require-
ments in the expenditure of these funds that must be met. If the
funds were used for specific capital outlays, all of the Davis-
Bacon Act and other Federal regulations concerning capital expendi-
tures would apply and it is generally felt the funds would not go
as far as they do under this plan. In fiscal year 1977 , the deci-
sion was made to basically transfer the funds to the General Fund
and spend them on law enforcement. This is what we are suggesting
again this year - the proposed budget would be • submitted this way
in the absence of some other direction.
There was no-one to speak concerning this matter. The hearing
was declared closed by the Mayor. The method of allocation of these
funds will be seen in the Budget.
Mayor Sevila declared a five-minute recess, with Council recon-
vening thereafter.
•
COUNCILMEMBER COMMENTS :
Mr. Bos said the Economic Development Advisory Committee, along
with the ad hoc East Market Street Committee, met this morning for
the formal receipt of the initial draft of the East Market Street
study. It was rather well received and well done - it is fairly
brief and simple. With some minor revisions, it will probably
be formally presented to the Council next month. It will require
some long-term commitment of money and effort to carry it through,
as well as some possible changes in the Zoning Ordinance and Design
Standards. He summarized the study for the benefit of councilmem-
bers . It will make the town more attractive, make people want to •
come to shop there and it will help the community and the private
business interests. Mayor Sevila asked if they have done other
similar projects that we might want to look at? Mr. Weiss said
they are doing other projects in Fredericksburg and Williamsburg
but they are at about the same stage as this one. They have done
similar projects in Washington, but the strip development is rela-
tively new to them. Mr. Bos said this is a 20-30-50 year plan.
Mr. Bos said they had a successful trip last week to the bond
rating agencies.
MINUTES OF MARCH 23 , 1983 MEETING.
198
Mr . Gheen was very much interested in the plan submitted for
East Market Street this morning. It is a long-range product but
it has the capacity to improve the looks of eastern Leesburg. It
seems to be designed so that it could be worked over a long period
of time - the cost will require that. He believes it is worth under-
taking and he feels it might enhance the historic district. It does
appear that one of the major problems will be putting the overhead
utilities underground. It was a good presentation and it makes sense.
Mrs. Hill said the Museum Building Committee is still waiting on
bids for refurbishing the bathrooms . We are to get one bid next week.
Mr. Coffey felt the presentation on the East Market Street
project was very interesting - anyone living here should be inter-
ested in it. This is the type plan that could also be utilized,
to some extent, on King Street South in the future.
Mr. Tolbert hoped councilmembers will take time to read this
report on the airport. He felt the speaker '_s podium is very attrac-
tive, but it should be stained to match what we already have. Mr.
Niccolls said it was made by Utility Lines Superintendent Dan Hyatt.
Mayor Sevila thanked the members of the Airport Commission for
their hard work and their presence here tonight. Mr. Tolbert invited
councilmembers to come to some of their meetings.
MAYOR' S REPORT:
Mayor Sevila said their group met in New York last week with
Standard and Poors and with Moody ' s, both bond rating agencies, to
enable the town to present some history and discussion concerning
its financial stability for the purpose of giving them the oppor-
tunity to rate the town insofar as municipal bonds are concerned.
We enjoy a BBB+ rating with one and an A with the other, both of
which are virtually as high as you can get for towns in Virginia.
Only one other town has a higher rating than we do - that is Vienna
with a AA rating. Mr. Taylor said Fairfax County has a AAA rating.
Mayor Sevila said our goal is to keep the town ' s rating as high as
possible, understanding that the municipal bonds issued will bear
interest at a rate which corresponds with the town ' s rating. It is
difficult to say exactly what direct effect our trip will have, but
the rating agencies feel it contributes to a municipality ' s ability
to present discussion, as well as the written submissions. He thanked
Mr. Niccolls and Mr. Taylor for their excellent presentations to both
agencies - we were well prepared on any of the issues. The materials
prepared in advance for him and for Mr. Bos were extremely helpful .
Mayor Sevila said the Governor will sign the annexation bill into
law on next Monday at 11 : 30 a.m. Members of the County Board and staff
are planning to go and he intends to go. He invited other members of
council and staff to go with him.
MANAGER' S..REPORT :
Mr. Niccolls said Marc Nelis has been retained to work with
Martha' Semmes, the principal planner, on the comprehensive planning
activity for the new town limits.
He understood there was a very successful kick-off to the Town
Plan Task Force meetings last week. Mayor Sevila said he attended
the kidk-off meeting last Saturday - it was well attended and it
looks like this is a viable committee and one that is anxious to
get to work on this process . He told them they could look forward
to a significant contribution from the councilmembers on the commit-
tee and also demonstrated this council ' s support - for the work they
will be doing. He appreciated the staff support on this committee.
83-0-13 - ORDINANCE - ADOPTING ARTICLE IV, COLONIAL AUGUST COURT DAYS,
TO CHAPTER 16 OF THE TOWN CODE .
On motion of Mrs. Hill , seconded by Mr. Tolbert, the following
ordinance was proposed:
MINUTES OF MARCH 23 , 1983 MEETING.
199
WHEREAS , the commemoration of Colonial August Court Days has
been repeated annually since the year of the American Bicen-
tennial and has become a valued annual reenactment and cele-
bration of American colonial amusement, culture and commerce:
THEREFORE, ORDAINED by the Council of the Town of Leesburg in
Virginia as follows :
SECTION I . Chapter 16 , Streets and Sidewalks, of the Town Code
is amended by the addition of a new Article to be known as Ar-
ticle IV, Colonial August Court Days, to read as follows :
Sec . 16-61. Colonial August Court Days commemoration estab-
lished.
The commemoration of Colonial August Court Days is estab-
lished within the town as an annual reenactment and celebra-
tion of early American amusement, culture and commerce . The
council shall each year designate a nonprofit organization
specializing in historic preservation and restoration as Co-
lonial August Court Days sponsor under terms and conditions
as agreed between the town and the sponsor. The sponsor shall
00 be responsible for fostering, producing or conducting amuse-
Nt ments, cultural exhibits and commerce during the commemora-
O tion of Colonial August Court Days. The manager shall extend
m the support, cooperation and assistance of town departments
m and personnel to the sponsor.
Q Sec . 16-62 . Street closings, traffic regulations .
The manager is authorized to close streets and public ways
and places and to regulate pedestrian and vehicular traffic as
necessary and appropriate for the conduct of Colonial August
Court Days.
Sec . 16-63 . Insurance required.
The Colonial August Court Days sponsor shall furnish the
town as an additional insured a public liability and property
damage insurance contract insuring the liability of the sponsor
for personal injury or death and damages to property resulting
from use of streets during Colonial. August Court Days.
Sec . 16-64 . Market operations and regulations.
A market on public streets and ways may be conducted dur-
ing Colonial August Court Days subject to necessary and appro-
priate regulations issued each year by the manager. The mana-
ger shall prescribe the time, place and merchandise or services
which may be offered for sale by vendors from locations within
the streets and public ways . The manager is authorized to en-
ter into agreements with the Colonial August Court Days sponsor
for technical assistance in the operation, conduct and regula-
tion of the market including advice on regulations issued in
line with this section. The manager shall provide the coun-
cil with copies of regulations and agreements authorized by
this section. No person shall use the public streets for the
sale of any goods or services during Colonial August Court Days
without a permit issued by the manager under regulations au-
thorized by this section. The sponsor and its agents shall
be bonded if it collects any funds to be paid into the town
treasury.
Sec . 16-65 . Fees for vendor permits .
The annual fee for a permit to use the public streets for
the sale of goods or services during Colonial August Court
Days shall be as set by Council by resolution, provided, how-
ever, no fee shall be charged for the permits issued to the
Leesburg Volunteer Fire Department or the Loudoun County Res-
cue Squad.
MINUTES OF MARCH 23 , 1983 MEETING .
200 Sec. 16-66 . Solicitation and collection of donations.
The Colonial August Court Days sponsor is authorized to
solicit and collect donations from any person entering the
market area for the purpose of participating in Colonial
August Court Days activities .
Sec. 16-67 . Use of proceeds from vendor fees .
Fees collected from vendors shall be deposited to the
General Fund and the council will from time to time make ap-
propriations equal to the amount of fees collected to historic
preservation and restoration activities of the sponsor.
SECTION II . This ordinance shall be in effect upon its pas-
sage.
Mr. Bos said the committee talked about naming the Restoration and
Preservation Society as the sponsor. Mrs . Hill said the
committee decided this would not be a problem since it will be done
annually. Mr. Niccolls said Mr. Martin had no objections to naming
the Society, but it was decided to leave it out and designate it by
resolution each year. Mayor Sevila said there are some constitu-
tional and statutory requirements - he felt this is, in fact, a lim-
ited franchise of sorts. He thought it would be very easy to re-
designate the same organization as they set the fees on an annual
basis and he felt there could be some legal question if it is a lim-
ited franchise. Mrs. Hill felt the Restoration and Preservation So-
ciety was concerned that they might lose it. Mr . Martin said one
of the questions concerned the turning over to an independent agency
the collection of licenses and the other was the competitive aspect
of restriction on the type of goods that could be sold. He had no
problem as to whether it is left blank or insert it each year.
Mayor Sevila asked what happens to the fees collected from each
individual? Mrs. Hill said this goes into their bank account.
The fees collected from the vendors go to the town and the town
gives it back. Mr. Martin said they felt this money had to come
back to the town, but the town can then donate it. Mayor Sevila
was satisfied with Mr. Martin ' s opinion and with the performance
over the years . Mr. Gheen felt the Society is reasonably safe as
long as it is under the control of the council , however, the ordi-
nance could always be amended to take it away from them. On motion
of Mr. Bos, seconded by Mrs . Hill, it was proposed to change Sec .
16-61 to read as follows :
The commemoration of Colonial August Court Days is established
within the town as an annual reenactment and celebration of
early American amusement, culture and commerce. The council
shall each year designate the Loudoun Restoration and Preser-
vation Society, Inc . as Colonial August Court Days sponsor __-
under terms and conditions as agreed between the town and the
sponsor. The sponsor shall be responsible for fostering, pro-
ducing or conducting amusements, cultural exhibits and com-
merce during the commemoration of Colonial August Court Days.
The manager shall extend the support, cooperation and assist-
ance of town departments and personnel to the sponsor .
Mr. Coffey asked if we need to specify the number of days? Mr.
Niccolls said there can be many things of this kind - there will
be an agreement each year. The proposed amendment .was unanimously
adopted :
Aye: Councilmembers Bos , Coffey, Gheen, Hill , Tolbert, Willis
and Mayor Sevila.
Nay: None.
The ordinance, as amended, was then unanimously adopted :
Aye: Councilmembers Bos , Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay: None .
MINUTES OF MARCH 23 , 1983 MEETING. c�
83-0-14 - ORDINANCE - AUTHORIZING THE ISSUANCE OF PUBLIC IMPROVEF+O1
MENT BONDS OF THE TOWN OF LEESBURG, VIRGINIA,
IN THE MAXIMUM AMOUNT OF $3 , 320, 000 .
On motion of Mr. Willis, seconded by Mr. Bos, the following
ordinance was proposed :
BE IT ORDAINED by the Council of the Town of Leesburg, Virginia:
1. It is hereby determined to be necessary and expedient
for the Town of Leesburg, Virginia (the Town) , to borrow money
to finance construction of and improvements to public facili-
IIties which will promote the development and public welfare of
the Town and to issue the Town ' s general obligation bonds
therefor.
2 . Pursuant to the authority of the Town Charter and the
Public Finance Act, as amended, there are hereby authorized to
be issued public improvement bonds of the Town in the maximum
amount of Three Million Three Hundred Twenty Thousand Dollars
($3, 320 , 000) to provide funds, together with other available
funds , for the following purposes :
00 Design and construction of a regional
T flight service station to provide
CD general aviation services $ 825 , 000
mAirport Improvements including
CX design and construction of an
airport terminal 205, 000
Design and construction of improve-
ments to the sewerage system 2 , 290 , 000
$3 , 320, 000
Any amounts not needed for one purpose may be used for any
other of such purposes .
3 . The bonds shall bear such date or dates, mature at
such time or times not exceeding forty years from their dates,
bear interest at such rate or rates not exceeding the maxi-
mum rate permitted by law at the time the bonds are sold, be
in such denomination and form, be executed in such manner and
sold at such time or times and in such manner, including the
sale of the same as one or more separate issues or in combi-
nation with the sale of general obligation bonds heretofore
or hereafter authorized for similar or other purposes, as the
Council shall hereafter provide by appropriate resolution or
resolutions .
4 . the bonds shall be general obligations of the Town for
the payment of principal of and interest on which its full
faith and credit shall be irrevocably pledged.
5. This ordinance shall take effect immediately.
Mr. Niccolls explained that this is the second bond authorization
ordinance that has been before Council in the past year relating to
the same projects. The total general obligation bond issue will
be $4 , 000 , 000 , including $680 , 000 authorized last spring as a road
bond issue to construct South Harrison Street between the W & 0 D
right-of-way and Catoctin Circle, as well as the extension of Ca-
toctin Circle between Dry Mill Road and the Vocational-Technical
School. That $680 , 000 issue was converted to a one-year bond an-
ticipation note approved by a resolution last June or July. That
note matures soon. This is why the present ordinance authorizes
$3 , 320, 000 . The total issue is for several purposes : (1) the
$680 , 000 road bond issue; (2) $2 , 000, 000 to be used to fund the
town' s 25 percent share of the $8 , 000 , 000 sewer improvement project
that includes construction of an expanded and upgraded sewage treat-
ment facility, as well as an interceptor sewer. This expansion will
take the capacity of the present plant from 1 . 3 mgd to 2 . 5 mgd treat-
J . MINUTES OF MARCH 23 , 1983 MEETING.
202 ment capacity. This matches the initial capacity of the water treat-
ment facility, which today was accepted for town maintenance and opera-
tion. This project has been long coming. He gave the history of this
project from its beginning in 1976 to the present time . It is expected
that this project will be ready to bid in September or October. The
federal gran th will be out of the fiscal year 1984 money from Congress.
1984 is the last year the Federal Government will fund these projects
at a 75 - 25 percent ratio, so it is important for Leesburg to pro-
ceed with this project. ( 3) $1 , 115 , 000 will be used to bring to com-
pletion the facilities necessary to move the FFA Flight Service Sta-
tion now at the Air Traffic Control Center to the Leesburg Municipal
Airport. These fug 8 will be used to construct a building of some
12, 000 square feet 7a parking lot (these facilities will be leased
to the FAA on a revenue producing basis at $10. 80 per square foot) .
$290, 000 of this amount will be used to construct the sewer facili-
ties to bring a central sewer system to the airport. The project is
a strictly "pay as you go" facility" - the entire cost of the sewer
line and the building will be paid from the rents and utility fees
to be paid by FAA. The final negotiation of a lease for this facility
will be coming before the council in a matter of weeks, as will the
selection of architects and engineers to design the facility - then
the actual construction itself. (4) $205 , 000 is to be used for con-
struction of new terminal and administration buildings at the airport
that could include turbine engine fuel . Part of this facility would
also be revenue producing. Janelle Aviation has committed to paying
75 percent of the debt service costs for the terminal facility over
the life of the facility on a rent basis and 100 percent of money spent
on the jet fuel facilities. This part of the project is a little less
certain to be completed than some other parts of it and they incor-
porated this money in the bond issue knowing that council has not yet
approved a terminal facility construction project. Recommendations
will be received from the Airport Commission over the next several
months on this - before any expenditures are authorized. This money
was incorporated in the bond issue in order to avoid the need for go-
ing back to the bond market later this year after the Federal laws
change. We have timed this bond issue between January 1 and July 1,
1983 for two reasons : (1) we need the funds now and ( 2) Congress
has adopted and the Treasury is implementing registration rules for
municipal bonds - this is expected to add as much as one percent to
the cost of an issue - this could be $20, 000 per year for twenty
years. We have no other way of repaying the $680, 000 note that ma-
tures in July other than to either issue another one-year bond anti-
cipation note or go to permanent financing now, so we are recommending
going to permanent financing now, avoid registration and take the bene-
fit of the prevailing low interest rates today. Mr. Taylor said the
market is perhaps at a low point and may swing up slightly, but no-
one knows for sure . We have •been advised that this is a good time
to bring this issue to the market - perhaps an interest rate as low
as 81 percent.
Mr. Gheen asked if they were looking at A-rated bonds at an in-
terest rate of 9 percent? Mr. Niccolls said this is what Horner-
Barksdale is advising Mr. Taylor . Mr. Gheen said an A-rated bond
could run from 6 percent to 10 percent in 25 years. For a BBB, you
would add perhaps two cents to the coupon for that period of time.
He felt that bond registration is something that will cause some con-
sternation, but eventually it will be overcome - meantime, the market
will have to live with that and it could amount to something.
Mrs. Hill asked when the FAA lease will be in? Mr. Minor said
in one to two weeks . Mr . Niccolls said it will probably be six weeks
to completion, depending on whether or not there are any serious is-
sues. There was a draft lease in their RFP, so he felt we are both
bound by the terms of our offer - negotiating a lease should not be
a difficult matter. Mrs . Hill objected to considering this tonight
because we have no bids of any kind - all we have are estimates. We
should have bids on the FAA building, on the sewage treatment plant
expansion, on the sewer to the airport and we have not adopted the
airport study so don ' t know whether we ' re going to build the termi-
nal or not. She felt it is premature to do this tonight. Mr . Bos
said we have engineering and consultant studies that are close enough -
this is the way the process has always been done before. The timing
of this is fairly critical . Mrs. Hill also asked when we will hear
MINUTES OF MARCH 23, 1983 MEETING.
on the Potomac River Plant suit? Mr. Niccolls expected this 203
suit not to be settled under two years. Our attorney has con-
sistently advised our auditors that they don ' t feel the town has
any material risk in that lawsuit. Mrs . Hill said that, should
we lose that suit, we would have to go back to the bond market
for that $500 , 000 . Mr. Niccolls said if we lost the suit, we
would have to sue the people who did the damage - we did nothing -
we are a stakeholder. Mrs . Hill felt we should have some more firm
figures when we are going for a $4 , 000, 000 bond issue. We should
have a study as to which way would be cheaper for the sewer pipe
to go. Mayor Sevila recalled the discussion regarding location
of the sewer and cost estimates . As to bids for the building, pro-
jections have been made and we have talked with other agencies -
the costs of this building are very reliably known. We could wait
until the bids are in and we award the contracts on all these proj-
ects, but for the reasons indicated earlier - the market is good
now and the fact that the bond registration requirements are very
significant - our financial consultants recommend getting the money
now. Excess funds not used are set aside in an escrow account earn-
ing exactly the same amount as the bond issue and you use those
funds to retire the debt on an annual basis . We are going to bring
the flight service station building in for the funds available -
00 he guaranteed this; the amount available for the terminal is a flat
ist sum and that ' s all that will be spent; the road will be brought in
Owithin its estimate - it' s a small project. The sewer project has
OD the potential of having an over-run - if we need more than the
$2 , 000, 000, we will find a way to finance it then - as was done for
OD the water plant. This is a risk we will have to accept - it may be
Q necessary to go back in the market, or we will revise our current
capital outlay plan and pick up any difference, or possibly elimi-
nate the interceptor sewer portion of this. issue and use that money
for the plant. He feels we should proceed. We will close this
issue on May 20 - the funds will be in our bank and we will earn
some money on these investments - so we will certainly not lose
anything and may gain something .
Mrs . Hill asked if there will be a new lease on the terminal
building? Mr . Niccolls said Yes - Mr. Martin is exploring exactly
how this has to be done but, in the past, they have been bid. It
is the Franchise Act that has troubled us in the past. He under-
stands they are working on an alternative way of directly nego-
tiating a lease for this building. Mr. Minor said the location
of that building may well be on the Janelle leasehold.
Mrs . Hill felt that, even though this bond does not have to
go to vote before the public , we should have public comment on it.
On the terminal building, she had not had time to digest this re-
port yet - suppose this isn ' t built? Mr. Niccolls said we escrow
the funds and use them to retire the debt. Mrs. Hill also felt
there may still be a problem with arbitrage. Mr. Gheen said there
is always that possibility, but he has more problem with the pro-
posed $2 , 000 , 000 for the improvement of the sewer plant - we have
no guarantee that we will get the money in 1984 . He felt we could
forego borrowing that at this time with no great risk - no-one knows
what the future is going to be - anything can happen. If we borrow
this money and then don ' t get the balance of the money, he doubted
that we would improve the plant. Mr . Niccolls said this point was
raised in New York - as to how we would use the funds in the event
the federal grant is not secured. The plant operates at almost
capacity in reasonable weather conditions - in 1978 or 1979 we had
an annual average of 1. 3 mgd, which is our nominal limit. The State.
Water Control Board didn't bother us because they knew we were de-
signing an enlarged facility. He felt that, if there are no federal
funds available, we would instruct our engineers to design limited
improvements to the treatment plant that would immediately increase
its capacity to something above 1 . 3 mgd, so that the plant would be
re-rated at about 1 . 5 to 1 . 8 mgd - we would have funds available
to do that from the bond issue. The need for this expansion is
self-evident and, from what we know about the EPA funding process,
he is very confident there will be funds available in October.
Mr. Gheen granted that some improvement would have to be made, but
he felt they might need more than $2 , 000, 000 .
•
MINUTES OF MARCH 23 , 1983 MEETING.
204
Mr. Gheen felt we are committed to the flight service station.
We need to look at the sewer line, but this line to the flight ser-
vice station is probably a necessity. As to the expansion of the
airport, he is not wholly convinced one way or the other - he hasn ' t
had a chance to study the report. He would like to see the $2 , 000, 000
delayed until there is more imminent need than there seems to be now.
There are things in the report he would like to look at further. In
the financial picture, they have had pretty good cash flow - a lot
of it due to the fact that we had bond issue money we were holding
pending disbursement. The $2 , 000 , 000 would undoubtedly improve this
cash flow picture . Borrowing the money and using the interest earned
to amortize the debt is not, in his judgment, the proper thing to do.
Mr. Bos said the sewage treatment plant expansion project has been
in the planning process for a long time - the commitment to start
this was this fall and it will take 115 to 2 years to complete the
project. If we get out of this economic slump and there is any kind
of growth going on, we will reach our plant capacity before the addi-
tion is completed, or certainly by that time. Also, with the 75 per-
cent EPA financing available, it behooves the council to go to the
market and get the money now. A six-month delay could get us boxed
in to some problems we can ' t handle.
Mayor Sevila felt the fact that we are No. 4 on the State ' s
priority list, we are virtually assured of the federal grant in 1984 ,
as long as the money is allocated by the federal government. Mr .
Niccolls said he has no concerns now because of our proximity to the
top of the list and the current status of Congress - it is not argu-
ing about these funds. Mr. Bos added that our design of the plant
is essentially complete. Mayor Sevila asked, if the town fails to
adopt the $2 , 000, 000 sewer improvement aspect of this bond, what
effect would this have on the availability of federal funds, if
any? Mr. Niccolls said that, before we sign a Grant Agreement, we
would have to demonstrate the source of local funds for the project.
This could be cash balances on hand, bond and grant anticipation
notes.
Mrs . Hill said there is a possibility that they could all be
held personally liable for any false or misleading statements.
They haven ' t settled on this terminal building and , this ordinance
says they are definitley going to build it if they don ' t build
it and put the money in and retire the bond, this is a false and
misleading statement. Mayor Sevila said it may become incorrect
but he didn ' t feel it would become false. Mayor Sevila asked Mr.
Niccolls if we are fully acquainted with the specifications the
federal government will impose on us in the construction of this
building? Mr. Niccolls said we are - the original RFP distributed
by FAA was quite detailed and, since that time, we have been provided
copies of construction drawings prepared for FAA directly for a simi-
lar facility, as well as copies of the construction drawings pre-
pared for a competitor in this run-off. It ' s a fairly simple build-
ing - it' s basically a heated and cooled dry box, with rest rooms.
He didn ' t feel the cost estimation is a significant problem.
Mayor Sevila asked what happens between now and May 20th? Mr.
Niccolls said proposals are received on April 20 - the market is
made aware that Leesburg is seeking bids to be opened on that date
at noon at Richmond. Between then and May 20, the bonds are printed
and there is a whole lot of paperwork shuffled back and forth between
Leesburg, the bond counsel and the purchaser of the bonds - it always
takes 30 days to complete a closing of a bond issue - you just can ' t
rush these things through. Closing must occur prior to July 1 in
order to avoid the registration requirements.
Mrs. Hill said this statement says the town has approved the
Airport Layout Plan - we have not done that. Also, the FAA lease
is a 20-year lease renewable annually. It could be possible that
Congress might not renew it and we wouldn ' t get it. Mayor Sevila
said this is something to think about, but this fact was known when
we bid the flight service center . He asked if this would have led
her not to vote in favor of this? Mrs. Hill said she is not happy
with all these estimates. We should have some public comment. There
are too many questions that aren ' t answered . She also had some ques-
tions concerning the airport - the 1983 budget estimated $81, 200 in
revenues - the February 28 financial report anticipated $54 , 000 .
MINUTES OF MARCH 23 , 1983 MEETING .
205
Why this difference? Mr. Taylor explained that the amount on the
financial report is what was adopted in the budget a year ago.
Mrs. Hill asked about the $29 , 906 anticipated? Mr. Taylor said
Council approved a utility loan to cover this - there is a grant
pending from FAA that will cover this. Mr. Niccolls further ex-
plained that we had a construction project at the airport and, be-
cause of the delay in reimbursement from the federal government,
we put the money out to the contractor - he has been paid. This
was explained at the time Council authorized this inter-fund loan -
we will secure the funds from FAA when they close the project.
Mr. Shope said today they expect payment shortly. In the meantime,
II the Airport Fund is paying interest to the fund making this advance -
this has been done before - FAA is slow in making its payments.
Mrs. Hill said we don ' t have a signed lease yet. Mr. Niccolls be-
lieved we are to have a signed lease by April 20th. Mrs. Hill felt
we should wait until these things are in hand. She said no-
one can forecast whether there will be an increase in interest. Mr.
Niccolls was much more certain of what the people in the bond mar-
ket are telling us than in the speculation of what they are uncer-
tain about. It seems to be careful and prudent business practice
to go with the current condition known, rather than the speculative
condition. Mr. Bos felt there could only be more fuss and expense -
OD there ' s no way to be less expensive. Mr. Gheen said we have com-
j. mitted ourselves for the flight service station and we have to pro-
' vide sewer for it. His quarrel is with the $2 , 000 , 000 for the sew-
n age treatment plant expansion - if we get the grant, then we know
CD we need it. Of course, the $2 , 000 , 000 would enhance our cash flow
and our working capital considerably, which is being depleted. Mr.
Q Niccolls said there is another implication (which he feels is nega-
tive) - going into the market place twice on two $2 , 000, 000 issues.
Perhaps there should be a special meeting with representatives from
Horner, Barksdale & Co. Mr. Taylor said issuance costs are about
$12 , 000 and our second resolution enjoins us from going to the mar-
ket again for six months . Mayor Sevila asked if the next scheduled
meeting - April 13 - would be too late? Mr. Taylor said there has
to be 45 days between the adoption of the resolution and the closing
II
of the issue. Mayor Sevila did not feel we would have any more in-
formation on Mrs. Hill ' s questions in a week or two weeks. As far
as the $2 , 000 , 000 is concerned, we have to rely on those we pay to
provide us with valid information - we have to trust the informa-
tion from Horner, Barksdale & Co. There are no guarantees as far
as the grants are concerned, so we have to go on history and the
best indications at this time. In all likelihood, the funds will
be available to us - we have moved from 24th to fourth place on the
State ' s priority list. We don ' t want to be back in this same ex-
pensive bond adoption procedure in six months or a year. He feels
satisfied that most of the information available now is the best we
will have prior to July 1st, or prior to the time in which we have
to take action. Mr. Bos added that three previous councils have
been working on the sewage treatment plant expansion and the costs
will go up. Mrs . Hill moved that this go back to committee, however,
the motion died for lack of a second . Mr. Gheen suggested council
have an adjourned meeting on March 30 . Mr . Taylor said the Official
Statement needs to go to the printer tomorrow in order to be ready
for advertisement prior to the sale. Mr. Niccolls said he could
not recommend any tampering with the schedule - these are all care-
fully scheduled dates.
On motion of Mr. Coffey, seconded by Mr. Willis, the ordi-
nance was amended by a vote of 6 to 1 abstention to add the words
II "upon council approval" at the end of the last sentence in paragraph
2 , thus reading as follows :
Any amounts not needed for one purpose may be used for any
other of such purposes upon council approval .
Aye : Councilmembers Bos, Coffey, Hill, Tolbert, Willis and
Mayor Sevila.
Nay : None.
Abstention : Councilmember Gheen.
MINUTES OF MARCH 23 , 1983 MEETING .
206
The ordinance, as amended, was adopted by a roll call vote of 4 to 3 :
Aye : Councilmembers Bos , Tolbert, Willis and Mayor Sevila.
Nay: Councilmembers Coffey, Gheen and Hill .
83-40 - RESOLUTION - AUTHORIZING THE ISSUANCE AND SALE OF $4 , 000, 000
PUBLIC IMPROVEMENT BONDS , SERIES 1983 , OF THE
TOWN OF LEESBURG, VIRGINIA, HERETOFORE AUTHOR-
IZED, AND PROVIDING FOR THE FORM, DETAILS AND
PAYMENT THEREOF .
On motion of Mr . Willis , seconded by Mr. Tolbert, the following
resolution was proposed:
WHEREAS, the issuance of $3 , 320 , 000 general obligation public
improvement bonds of the Town of Leesburg, Virginia (the Town) ,
was authorized by an ordinance adopted by the Council on March
23, 1983, to provide funds, together with other available funds,
for constructing various public improvements as described in
such ordinance; and
WHEREAS, the issuance of $680 , 000 general obligation road bonds
of the Town was authorized by an ordinance adopted by the Coun-
cil on May 26 , 1982 , to provide funds, together with other avail-
able funds, to finance a program of road construction and im-
provement; and
WHEREAS, none of such bonds have been issued and sold; and
WHEREAS, notes in the principal amount of $680, 000 issued in
anticipation of the issuance of such bonds will mature on
July 21, 1983 , and it appears to be in the best interest of
the Town to issue bonds to refund such notes at or prior to
their maturity;
BE IT RESOLVED by the Council of the Town of Leesburg, Virginia:
1. There are hereby authorized to be issued and sold
$4 , 000, 000 general obligation public improvement bonds of the
Town, for the purposes set forth in the ordinances authorizing
such bonds .
2 . The bonds shall be designated "Public Improvement Bonds ,
Series 1983 , " shall be dated May 1, 1983 , shall be coupon bonds
in bearer form in the denomination of $5, 000 each, without privi-
lege of registration, and shall be numbered from 1 to 800 in-
clusive. The bonds shall bear interest from their date at such
rate or rates as shall be determined at the time of sale, pay-
able semiannually on February 1 and August 1, beginning on Febru-
ary 1, 1984 , and shall mature on August 1 in installments of
$150 , 000 in each of the years 1984 to 1990, inclusive, $175, 000
in each of the years 1991 and 1992 , $200, 000 in the year 1993 ,
$225, 000 in each of the years 1994 to 1997 , inclusive, and
$250, 000 in each of the years 1998 to 2003 , inclusive. Princi-
pal of and premium, if any, and interest on the bonds shall
be payable in lawful money of the United States of America at
the principal office of First & Merchants National Bank, Rich-
mond, Virginia, or The Chase Manhattan Bank, N.A. , New York,
New York, at the option of bearer .
3 . Bonds maturing on or before August 1, 1993 , are not
subject to redemption prior to maturity. Bonds maturing on
or after August 1, 1994 , are subject to redemption prior to
maturity at the option of the Town on or after August 1, 1993 ,
in whole at any time or in part on any interest payment date,
upon payment of the principal amount of the bonds to be re-
deemed plus interest accrued and unpaid to the redemption date
and a redemption premium of one-fourth of one percent (1/4 of
1%) of such principal amount for each six month period, or part
thereof, between the redemption date and the stated maturity
dates of the bonds to be redeemed, provided that the redemption
premium shall not exceed 2 1/2% of such principal amount. If
less than all of the bonds are called for redemption, the bonds
to be redeemed shall be selected by the Director of Finance in
MINUTES OF MARCH 23 , 1983 MEETING.
1 such manner as he may determine to be in the best interest20 7
of the town. The council shall cause notice of the call
for redemption identifying the bonds to be redeemed to be
published once in both a financial journal published in the
City of New York, New York, and in a newspaper of general
circulation published in the City of Richmond, Virginia,
which publications shall appear not less than 30 nor more
than 60 days prior to the redemption date.
4 . The bonds shall be signed by the manual of fac-
simile signature of the Mayor, shall be countersigned by the
manual signature of the Clerk of the Council and the Town' s
seal shall be affixed thereto or a facsimile thereof shall
be printed thereon. The coupons attached to the bonds shall
be authenticated by the facsimile signature of the Mayor.
5 . The bonds and the coupons shall be in substantially
the following form:
(FORM OF BOND)
No. $5, 000
00
UNITED STATES OF AMERICA
CD m COMMONWEALTH OF VIRGINIA
OD TOWN OF LEESBURG
Q
Public Improvement Bond, Series 1983
The Town of Leesburg, Virginia, for value received,
hereby acknowledges itself indebted and promises to pay to
bearer upon presentation and surrender hereof the principal
sum of
on August FIVE1 , THOUSAND DOLLARS ( $5, 000)
, and to pay interest thereon from the date
hereof until payment at the rate of percent ( %) per
year , payable on February 1 and August 1, beginning February 1,
1984 , upon presentation and surrender of the attached coupons
as they become due. Principal of and premium, if any, and in-
terest on this bond are payable in lawful money of the United
States of America at the principal office of First & Merchants
National Bank, Richmond, Virginia, or The Chase Manhattan Bank,
N.A. , New York, New York, at the option of bearer.
This bond is one of an issue of $4 , 000 , 000 public im-
provement bonds of like date and tenor, except as to number,
rate of interest, privilege of redemption and maturity, au-
thorized by ordinances adopted by the Town Council on May 26,
1982 , and March 23, 1983 , and is issued pursuant to the Con-
stitution and statutes of the Commonwealth of Virginia, in-
cluding the Town Charter and the Public Finance Act, as
amended, to finance various public improvements .
Bonds maturing on or before August 1 , 1993 are not sub-
ject to redemption prior to maturity. Bonds maturing on or
after August 1 , 1994 , are subject to redemption prior to ma-
ll turity at the option of the Town on or after August 1, 1993,
in whole at any time or in part on any interest payment date,
upon payment of the principal amount of the bonds to be re-
deemed plus interest accrued and unpaid to the redemption
date and a redemption premium of one-fourth of one percent
(1/4 of 1%) of such principal amount for each six month per-
iod, or part thereof , between the redemption date and the
stated maturity dates of the bonds to be redeemed, provided
that the redemption premium shall not exceed 2 1/2% of such
principal amount. If less than all of the bonds are called
for redemption, the bonds to be redeemed shall be selected
MINUTES OF MARCH 23, 1983 MEETING.
208 by the Director of Finance in such manner as .hemay determine
to be in the best interest of the Town. The Council shall
cause notice of the call for redemption identifying the bonds
to be redeemed to be published once in both a financial jour-
nal published in the City of New York, New York, and in a news-
paper of general circulation published in the City of Richmond,
Virginia, which publications shall appear not less than 30 nor
more than 60 days prior to the redemption date.
The full faith and credit of the Town are hereby irrevo-
cably pledged for the payment of principal of and interest on
this bond.
All acts, conditions and things required by the Consti-
tution and statutes of the Commonwealth of Virginia to happen,
exist or be performed precedent to and in the issuance of
this bond have happened, exist and have been performed, and
the issue of bonds of which this bond is one, together with
all other indebtedness of the Town, is within every debt and
other limit prescribed by the Constitution and statutes of
the Commonwealth of Virginia .
IN WITNESS WHEREOF , the Town of Leesburg, Virginia, has
caused this bond to be signed by the facsimile signature of
its Mayor, to be countersigned by the manual signature of the
Clerk of the Council, a facsimile of its seal to be printed
hereon, the attached coupons to be authenticated by the fac-
simile signature of its Mayor, and this bond to be dated May 1,
1983 .
COUNTERSIGNED:
(SEAL)
Clerk of the Council, Mayor , Town of Leesburg,
Town of Leesburg, Virginia Virginia
(FORM OF COUPON)
On August 1, , unless the bond to which this coupon
is attached, if callable, has been duly called for prior re-
demption and provision made for payment thereof, the Town of
Leesburg, Virginia, will pay to bearer the sum of
Dollars ($ ) in lawful money of
the United States of America at the principal office of First &
Merchants National Bank, Richmond, Virginia, or The Chase Man-
hattan Bank, N.A. , New York, New York, at the option of bearer,
being the interest then due on its Public Improvement Bond,
Series 1983 , dated May 1, 1983 , and numbered
Mayor, Town of Leesburg,
Virginia
6 . The full faith and credit of the Town are hereby ir-
revocably pledged for the payment of principal of and interest
on the bonds. Unless other funds are lawfully available and
appropriated for timely payment of the bonds, the Council shall
levy and collect an annual ad valorem tax over and above all
other taxes authorized or limited by law on all locally tax-
able property in the Town sufficient to pay the principal of
and interest on the bonds, as the same become due.
7 . The Town Manager, in collaboration with Horner, Barks
dale & Co. , the Town ' s financial advisor, is hereby author-
ized and directed to take all proper steps to advertise the
bonds for sale in accordance with the Notice of Sale attached
hereto, provided that the Town Manager, in collaboration with
Horner , Barksdale & Co. , may make such omissions , insertions
and changes in the Notice of Sale not inconsistent with this
resolution as he may consider to be in the best interest of
the Town.
8 . A printer ' s proof of the Official Statement dated
March 16 , 1983 , describing the bonds , copies of which have
MINUTES OF MARCH 23 , 1983 MEETING.
209
been provided each member of the Council, is hereby approved
as the Official Statement of the Town. The Mayor, in col-
laboration with Horner, Barksdale & Co. , may make such com-
pletions, omissions, insertions and changes in the printer ' s
proof of the Official Statement not inconsistent with this
resolution as he may consider to be necessary or desirable
to complete it as an Official Statement in final form. The
Town Manager shall arrange for the delivery to the success-
ful purchaser of the bonds of a reasonable number of copies
of the Official Statement to be delivered to the persons to
whom such purchaser and members of his bidding group initi-
ally sell the bonds.
9 . After bids have been received and the bonds have been
awarded, the Mayor and the Clerk of the Council are hereby
authorized and directed to take all proper steps to have the
bonds prepared and executed in accordance with their terms and
1 to deliver the bonds to the purchasers thereof upon payment
therefor .
10 . All other actions of officers of the Town in conform-
00 ity with the purposes and intent of this resolution and in fur-
therance of the issuance and sale of the bonds are hereby ap-
ICt proved and confirmed.
CD
OD 11 . Such officers of the Town as may be requested are here-
in
by authorized and directed to execute an appropriate certifi-
cate setting forth the expected use and investment of the pro-
ceeds of the bonds issued pursuant hereto in order to show that
1 such expected use and investment will not violate the provi-
sions of § 103 (c) of the Internal Revenue Code of 1954 , as
amended, and regulations issued pursuant thereto, applicable
to "arbitrage bonds . " Such certificates shall be in such form
as may be requested by bond counsel for the Town.
12 . The Clerk of the Council, in collaboration with the
Town Attorney, is hereby authorized and directed to see to the
immediate filing of a certified copy of this resolution with
the Circuit Court of Loudoun County and within ten days there-
after to cause to be published once in a newspaper of general
circulation in the Town a notice setting forth (1) in brief
and general terms the purposes for which the bonds are to be
issued and (2) the amount of such bonds and the amount for
each purpose.
13 . The Director of Finance is hereby directed to apply
$680 , 000 from the proceeds of the bonds to pay $680, 000 road
bond anticipation notes issued in anticipation of the issuance
of the bonds and to place such amount in an escrow fund to be
used only for such purpose until the payment of the notes on
or before July 21 , 1983 .
14 . All resolutions or parts of resolutions in conflict
herewith are hereby repealed.
15 . This resolution shall take effect immediately.
On motion of Mrs. Hill , seconded by Mr. Coffey, it was moved to send
this resolution back to committee. Mrs . Hill said her reasons are
the same - she is not -satisfied with the information. Mr. Gheen
again said his objection is to the $2, 000, 000 for the sewage treat-
ment plant expansion. Mr. Niccolls said this resolution approves
the Official Statement - we need to clarify the date of execution
of the lease by FAA before it goes to the printer; also, date of ap-
proval of the Airport Layout Plan . Mrs . Hill asked if the Potomac
Plant is on line? Mr. Niccolls said it is not pumping into the sys-
tem - it is being test-run for 10 days to two weeks, but today is
substantial completion. Mayor Sevila said there are no false or
misleading statements in this document and Council has had ample
opportunity to go over this - it goes to the printer tomorrow. The
motion to send this resolution back to committee was defeated by a
vote of 4 to 3 :
MINUTES OF MARCH 23 , 1983 MEETING.
210
Aye : Councilmembers Coffey, Gheen and Hill .
Nay: Councilmembers Bos , Tolbert, Willis and Mayor Sevila.
The resolution, as submitted, was adopted by a roll call vote of
4 to 3 :
Aye : Councilmembers Bos, Tolbert, Willis and Mayor Sevila.
Nay : Councilmembers Coffey, Gheen and Hill .
Mayor Sevila declared a five-minute recess, with Council recon-
vening thereafter.
83-41 - RESOLUTION - AMENDING RESOLUTION 82-159 AUTHORIZING AN OFFE
TO RAYMOND R. RODRICK FOR PROPERTY TO ALLOW
CONSTRUCTION OF WEST CATOCTIN CIRCLE.
On motion of Mr. Willis, seconded by Mrs. Hill, the following
resolution was proposed :
WHEREAS , Resolution 82-159 was adopted on November 24 , 1982 ,
making an offer for the acquisition of a portion of his land
for the construction of West Catoctin Circle; and
WHEREAS, certain changes have been made in proposed construc-
tion which alters the property and easement area required and
damages to the remainder of the Rodrick property requiring a
revision of Resolution 82-159 ;
THEREFORE, RESOLVED by the Council of the Town of Leesburg
in Virginia as follows :
SECTION I . The sum of $5 , 976 shall be offered Raymond R. Rod-
rick for the fee simple title for 2 , 656 square feet of property.
SECTION II . No offer is made for damages to the remainder of
the Rodrick property because the town ' s appraisal indicates
property enhancement greater than damages .
SECTION III . The term "right of way" wherever it appears in
Resolution 82-159 is hereby deleted and the term "fee simple"
substituted in place thereof.
SECTION IV. If this revised offer is not accepted within five
days of receipt thereof, the town attorney is hereby reauthor-
ized to file petition for condemnation of the required fee
simple title and temporary construction easement and the right
of early entry on behalf of the town.
SECTION V. In all other respects, the original resolution is
hereby readopted without change or modification.
Mr. Martin explained that the original offer was for the land, with
the other offer including damages to take up his fence and trees and
destroying his driveway. It was decided to see if they could off-
set the damages by enhancement in value of the property, so Don Can-
non did additional studies and concluded, after discussion with the
zoning office, that two lots would be available to him in the back
of his property. The plat for the area to be taken from the school
has been revised to bring the property right up to Mr. Rodrick ' s
line. Don Cannon concluded that the lots would be worth $10, 000
apiece, so $20 , 000 is more than the damages - this is why the offer
is revised. They do not expect this to be accepted - it is less
than before, but they feel confident they will succeed on the en-
hancement in value of the property. Mr. Martin said he has an
agreement before counsel for Mr. Rodrick to permit the town to go
on the property and start construction, which is permissible under
the statute. By the time they would have to file a condemnation
suit, it is hoped the road will be in, so there would be no prob-
lem in presenting a subdivision for two lots. So there should be
a very agreeable conclusion to this matter . Mr. Gheen said he would
like to see a copy of the appraisal . This will be distributed to all
members. The resolution was unanimously adopted :
Aye : Councilmembers Bos, Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay: None.
MINUTES OF MARCH 23, 1983 MEETING.
211
83-42 - RESOLUTION - APPROVING AN AGREEMENT CONCERNING PUBLIC IM-
PROVEMENTS FOR LEEGATE SUBDIVISION, SECTIONS
lA AND 1B.
On motion of Mrs. Hill, seconded by Mr. Coffey, the following
resolution wasro osed :
P P
WHEREAS , the Town Planning Commission has approved a prelimi-
nary plat for Section la of Leegate Subdivision and the Loud-
oun County Planning Commission has approved a preliminary plat
for Section lb of Leegate Subdivision; and
WHEREAS, a four-party agreement has been prepared for approval
by the town, Loudoun County, Virginia Department of Highways
and Transportation, and the Leegate developer which delineates
responsibilities between the parties, road cross sections of
streets within the development and other details concerning
public improvements; and
WHEREAS, on March 17 , 1983 the Planning Commission recommended
to the Council that the four-party agreement be approved as pro-
posed :
CO
cf THEREFORE, RESOLVED by the Council of the Town of Leesburg in
Q Virginia as follows :
m SECTION I . The four-party agreement presented to Council on
March 15 , 1983 and described in the memorandum to Mayor and
Q Council dated March 8 , 1983 is approved.
SECTION II . The mayor shall execute the four-party agreement
on behalf of the town.
Mrs. Hill said the Planning Commission approved this four-party
agreement - they have been working on it for about a year . The
resolution was unanimously adopted :
' Aye : Councilmembers Bos, Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay: None.
83-43 - RESOLUTION - INTENT OF COUNCIL TO ACCEPT PARK AREA DEDICATION
FROM DEVELOPER OF SYCOLIN FOREST.
On motion of Mrs. Hill , seconded by Mr. Willis, a resolution
was proposed that Council would accept parksite A of Sycolin Forest
for ownership and maintenance at the time the public improvements
are accepted and the performance bond released. After lengthy dis-
cussion, the original resolution was withdrawn by the makers and a
substitute resolution moved by Mr. Gheen, seconded by Mr. Tolbert
was unanimously adopted as follows :
WHEREAS , on March 3 , 1983 the Planning Commission approved
the preliminary plat of Sycolin Forest Subdivision which
included two park sites, Site A and Site B; and
WHEREAS , the developer requested the Commission recommend
to Council that both park sites be dedicated and accepted
as public parks; and
WHEREAS, the developer has requested that Council review
the Commission ' s decision; and
WHEREAS , the Council concurs with the recommendation of the
Commission:
THEREFORE, RESOLVED by the Council of the Town of Leesburg in
Virginia as follows :
The Council will not accept Park Site B shown thereon for pub-
lic maintenance.
i MINUTES OF MARCH 23 , 1983 MEETING.
21 2 Aye: Councilmembers Bos, Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay : None.
PROPOSED RESOLUTION COMMENTING ON THE VIRGINIA DEPARTMENT OF HIGHWAYS
AND TRANSPORTATION' S PROPOSED DISTRIBUTION OF ROAD CONSTRUCTION
FUNDS FOR THE 1983-84 FISCAL YEAR.
On motion of Mr. Willis, seconded by Mr . Bos, a resolution
was proposed commenting on the Department of Highways proposed
distribution of road construction funds for 1983-84 . Mrs. Hill
said the intent of the letter from the residents of West Market
Street was that they would like to be present any time their area
is discussed - they do not want it put back on the Highway Depart-
ment list. On motion of Mrs. Hill, seconded by Mr. Willis, Coun-
cil voted unanimously to refer this matter back to committee:
Aye : Councilmembers Bos, Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay: None.
83-44 - RESOLUTION - MAKING AN APPOINTMENT TO THE TOWN PLAN TASK
FORCE .
On motion of Mr. Willis, seconded by Mr . Coffey, the following
resolution was proposed and unanimously adopted :
WHEREAS, the town plan task force was created by the Town
Council on January 12 , 1983 to aid in the preparation of a
comprehensive plan for the town and proposed annexation
area; and
WHEREAS, Loudoun County has expressed an interest in having
a representative on the town plan task force :
THEREFORE, RESOLVED by the Council of the Town of Leesburg in
Virginia as follows :
Loudoun County is invited to appoint an elected or appointed
official representing a magisterial district covering the ex-
panded town limits to the town plan task force.
Aye : Councilmembers Bos , Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay : None.
83-45 - RESOLUTION - AUTHORIZING A NOTICE OF PUBLIC HEARING ON PRO-
POSED AMENDMENTS TO THE LEESBURG ZONING ORDI-
NANCE REGARDING SIGNS AND TWO-FAMILY DWELLING
UNITS .
On motion of Mrs. Hill, seconded by Mr. Gheen, the following
resolution was proposed :
RESOLVED by the Council of the Town of Leesburg, Virginia as
as follows :
A Notice of Public Hearing to consider certain proposed
amendments to the Leesburg Zoning Ordinance regarding signs
and two-family dwelling units shall be published in the Loud-
oun Times Mirror on March 31 , 1983 and April 7 , 1983 for pub-
lic hearing on April 13, 1983 at 7 : 30 p.m. in the Council
Chambers, 10 West Loudoun Street, Leesburg, Virginia.
Mrs. Hill explained that this has to do with signs, driveway con-
nections, awnings and canopies and the division of duplex lots
in the R-2 zone - just some housekeeping changes . The resolution
was unanimously adopted :
Aye : Councilmembers Bos , Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila .
Nay : None.
MINUTES OF MARCH 23 , 1983 MEETING. gg
2 1 1
83-46 - RESOLUTION - RESCINDING RESOLUTION 82-129 AND AUTHORIZING e)
AN AGREEMENT, APPROVING A PERFORMANCE GUARAN-
TEE AND APPROVING WATER AND SEWER EXTENSIONS
FOR SOUTHGATE II DEVELOPMENT.
On motion of Mrs. Hill, seconded by Mr. Bos, the following reso-
lution was proposed :
WHEREAS , Resolution 82-129 authorized a contract for public im-
provements, approved performance bond and approved extension
of municipal water and sewer facilities for the Southgate II
development; and
WHEREAS , the developer was not able to secure the specific
performance bond outlined in Resolution 82-129; and
WHEREAS , a new contract for public improvements and water and
sewer extension permits dated March 23 , 1983 have been received
by the town and a letter of credit, which form has been approved
by the town attorney, is being forwarded to the town to guaran-
tee installation of the public improvements for the development:
CO THEREFORE, RESOLVED by the Council of the Town of Leesburg in
NT Virginia as follows :
mSECTION I . Resolution 82-129 is hereby rescinded.
[Q SECTION II. The manager shall execute the contract for public
Q improvements for the Southgate II development dated March 23,
1983 , which contract has been altered to require installation of
the public improvements within a one year period.
SECTION III . The First and Merchants National Bank irrevocable
letter of credit in the amount of $60 , 190 . 00 guaranteeing in-
stallation of public improvements in accordance with plans ap-
proved by the Director of Engineering for the Southgate II de-
' velopment is approved.
SECTION IV. Extension of municipal water and sewer facilities
is approved for this development.
SECTION V. This resolution is in effect upon approval of the
contract, letter of credit and extension permits by the town
attorney.
Mayor Sevila asked why the developer was unable to obtain the per-
formance bond approved previously. No-one knew. The resolution
was unanimously adopted :
Aye : Councilmembers Bos, Coffey, Gheen, Hill, Tolbert, Willis
and Mayor Sevila.
Nay : None.
Mr. Gheen asked if we have a calendar for budget preparation,
presentation, adoption, etc . ? Mr. Niccolls said Council will have
a budget by April 1 , hopefully - it is going on the word processor
now. Thereafter, it is up to Council - there will be suggested dates
for the public hearing set out in the message.
On motion of Mr. Tolbert, seconded by Mr. Coffey, the meeting
was adjourned at 11 : 45 p.m.
F
/////� � � � May r
/A A/ ¢2 /
Clerk of Vile Council