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HomeMy WebLinkAbout2003-09-10 ACTIONS Board of Supervisors Meeting of September 10, 2003 September 11, 2003 AGENDA ITEM/ACTION ASSIGNMENT Call to order. Meeting was called to Order at 6:00 p.m., by the Chairman, Mr. Dorrier. All BOS members were present. Also present were Bob Tucker, Larry Davis, Wayne Cilimberg and Ella Carey. From the Public: Matters Not Usted on the Agenda. There were none. 5. ACE Recognition. · HELD. 6.2 Adopt Resolution Approving the Issuance of Revenue Bonds in Clerk: Forward signed resolution to McGuire, an Amount not to Exceed $9,000,000 for the MJH Foundation. Woods. (Attachment 1) · ADOPTED the attached Resolution. 6,3 Appeal: ARB-2003-114. Seminole Plaza Landscape Changes (deferred from September 3, 2003). - APPROVED the requirements for the tree to be satisfied by the existing tree or with a two and one-half (2 %) inch caliper tree of a species to be administratively approved bY staff. 6.4 Authorize County Executive to execute new Agreement between the County of Albemarle, City of Charlottesville and the Charlottesville Albemarle Society forthe Prevention of Cruelty to Animals (SPCA). - AUTHORIZED the County Executive to sign the Agreement on behalf of the County. 7. SP-2003-42. Vintaqe iVir;linia Apples, LLC (Si;In #49). · APPROVED SP-2003-42, by a vote of 6:0, sUbject to 4 conditions, 8. SP-2003-43, The Covesville Store (Si.qn #S2). · APPROVED SP-2003-34, by a vote of 6:0. 9. SP-2003-Sl'. The Cove,sville Gift, Craft & Antique Store (Sian #52}. · APPROVED SP-2003-35, by a vote of 6:0. i 0. SP-2003-044. Beilair Animal Hospital (si.qn #54). APPROVED SP-2003-36, by a vote of 6:0, subject to 5 conditions. 11. SP-2003.46. Suntrust Pantops Branch (Si,qns f~9&72). · APPROVED SP-2003-37, by a vote of 6:0, subject to 6 conditions. 12. SP-2003-048. Randy E. Fox-Home Occupation Class B ~ {SiQn #2). APPROVED SP-2003-38, by a vote of 6:0, subject to 5 conditions. 13. Adopt Resolution Authorizing the Issuance of General Obligation School Bonds, Series 2003A, of the County of Albemarle, Virginia, in a Principal Amount not to Exceed $7,205,000 to be Sold to the Virginia Public School Authority and Providing for the Form and Details Thereof. - ADOPTED Resolution. County Attorney's office: Obtain necessary signatures and provide Clerk with fully executed copy of document. (Attachment 2) Clerk: Set out conditions of approval. (Attachment Clerk: Set out conditions of approval. (Attachment 3) Clerk: Set out conditions of approval. (Attachment 3) Clerk: Set out conditions of approval. (Attachment 3) Clerk: Forward signed resolution to Brenda Neitz. (Attachment 4) 14. From the Board: Matters Not Listed on the Agenda. e Sally Thomas said she will be meeting with our Sister Pacific County in the State of Washington during a visit to Seattle. 21. Adjourn. ,, At 7:20 p.m., the meeting was adj0umed. /ewc Attachment t- IDA Resolution for MJH Foundation Attachment 2 - SPCA Agreement Attachment 3 - Planning Conditions of Approval Attachment 4 - VPSA Resolution Attachment I RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA WHEREAS, the Industrial Development Authority of Albemarle County, Virginia ("Authority"), has considered the application of MJH Foundation (the "Foundation") requesting the issuance of the Authority's revenue bonds in an amount not to exceed $9,000,000 ("Bonds") to assist the Foundation, or any corporation related to the Foundation, in the financing of a portion of the costs related to the Foundation's acquisition of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project'3 in the County of Albemarle, Virginia, and has held a public hearing on September 9, 2003; WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the governmental unit having jurisdiction over the issuer of private activity bonds and over the area in which any facility financed with the proceeds of pdvate activity bonds is located must approve the issuance of the bonds; WHEREAS, the Authority issues its bonds on behalf of the of the County of Albemarle, Virginia ("County"); the Project is to be located in the County and the Board of Supervisors of the County of Albemarle, Virginia ("Beard") constitutes the highest elected governmental unit of the County; WHEREAS, the Authority has recommended that the Board approve the issuance of the Bonds; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds, subject to the terms to be agreed upon, a certificate of the public hearing and a Fiscal Impact Statement have been filed with the Board. NOW, THEREFORE, BE It RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGIN IA: The Beard approves the issuance of the Bonds by the Authority for the benefit of the Foundation, as required by Section 147(f) of the Code and Section t5.2-4906 of the Code of Virginia of 1950, as amended ("Virginia Code") to permit the Authority to assist in the financing of the Project. The approval of the issuance of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Foundation. This resolution shall take effect immediately upon its adoption. AGREEMENT Attachment 2 THIS AGREEMENT is made this day of 2003 by and between the COUNTY OF ALBEMARLE (the "County"), the CITY-OF CHARLOTTESVILLE (the "City")(collectively referred to hereinafter as the 'local governing bodies") and the CHARLOTTESVILLE ALBEMARLE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ("SPCA"), a Virginia nonstock corporation, 1. Pumose. SPCA owns and operates an Animal Shelter in the County. It is desired by all the parties that SPCA will, at its Animal Shelter, impound and care for all animals delivered by representatives of the local governing bodies, and receive and impound stray animals as turned in by residents of the local governing bodies who are not the owners of the animals, in accordance with Va. Code § 3.1-796.96, as amended, and associated state regulations. The purpose of this Agreement is to set forth the terms, conditions and compensation that the local governing bodies agree to pay to SPCA for care of such animals on an annual basis and to set forth the terms, conditions and compensation the local governing bodies will pay to SPCA for construction of the new SPCA facility. 2. Definitions. Animal: Shall not include agricultural animals Animal Shelter:, Means a facility, other than a private residential dwelling and its surrounding grounds, that is used to house or contain animals and that is owned, operated, or maintained by a nongovernmental entity including, but not limited to, a humane society, animal welfare organization, society for the prevention of cruelty to animalS, or any other organization operating for the purpose of finding permanent adoptive homes for animals, Biting Animals: Animals that have bitten a person. Killer Dogs: Dogs that have killed or injured valuable livestock or a pet belonging to a person other than the owner. Owned Dogs or Cats: Dogs or cats previously adopted out by the SPCA shelter or dogs or cats whose owners are known or discovered during the period of stay at the SPCA shelter. Rightful Owner: A person with a right of property in the animal Stray Dogs or Cats: Dogs or cats for whom no owner is known at the time of receipt at the SPCA shelter or discovered prior to dispOSition either by adoption or destruction. 3. Term of Aareement. This Agreement shall be effective on July 1, 2003 and shall continue in effect for one year. The Agreement shall automatically renew for periods of one calendar year unless terminated by any or all of the parties hereto upon one (1) calendar year written notice. 4. Compensation for Annual OPerations Costs. The local governing bodies agree to pay a reasonable fee to SPCA for board and associated costs for the City's and County's stray dogs and cats. Compensation will be based on the most recent annual Virginia Department of Agriculture and Consumer Services Animal Report filed prior to the local governing bodieS' ensuing fiscal year's budget cycle submitted with the SPCA's budget request. Funding will be adjusted to reflect submission of the prior year's annual State animal record report numbers, if SPCA submits the report to the local governing bodies by January 15th of each year. SPCA will maintain records regarding the number of cats and dogs received at the shelter from each local governing body. These records will be used to distinguish cost allocation for the City and the County and any adjustments on an annual basis. The local governing bodies agree to make payments to SPCA on a quarterly basis. 5. Payment Formula. The local governing bodies will pay SPCA an annual fee based on a spec'rfic formula and reimbursement rate. The formula is based on the cost of what the local governing bodies could reasonably expect to pay to provide an animal pound that meets Virginia law and regulations. The daily reimbursement rate may be reexamined and revised by written agreement of all parties to this Agreement. a. Calculation of Rate for Dogs: Rate paid per dog is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report preceding the local governing bodies' annual budget submittal process. Rate is $100 per dog, in accordance with the following fee formula: b. Fee Formula for Dogs: 1. Identify total number of dogs identified on the annual Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of dogs "surrendered by owners" 3. Subtotal, and subtract number of dogs "on hand~ as of January 1 4. Subtotal, and subtract the number of dogs "reclaimed by owners" 5. Total remaining number of dogs and multiply by rate of $100 per animal for total fee to be paid by local governing bodies 6. Divide fee by each jurisdiction, based on shelter records of location where animals were found c. Calculation of Rate for Cats: Rate paid per cat is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report of the year preceding the local governing bodies annual budget submittal process. Rate is $100 per cat brought to the Animal Shelter by the local Animal Control Officers (herein referred to as ACOs). Rate is $50 per cat brought to the Animal Shelter by residents of the City or the County in accordance with the following fee formula. d. Fee Formula for Cats: 1. Identify total number of cats based on the Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of cats "surrendered by owners" from this number 3. Subtotal, and subtract the number of cats ~on hand" as of January 1 4. Subtotal, and subtract the number of cats "reclaimed by owners" 5. Identify the number of cats brought in to the shelter by ACOs 6. Subtract the total number of cats brought into the shelter by ACO's from the total number of cats identified at the end of step 4 7. Multiply the number of cats identified in #5 by $100 and the number of cats identified in #~ by $50 for total fee paid by local governing bodies 8. Divide fee by each jurisdiction, based on shelter records identifying the location where animals were found SPCA agrees to keep and maintain detailed written records of any unexpected or unusual expenses incurred to shelter cats and dogs in accordance with this Agreement and applicable laws and regulations. The local governing bodies will consider providing funds for these expenses as part of their regular annual budgeting schedule, it being expressly understood that the local governing bodies are not obligated to provide such funds. 6. Fines. Compensation is based on results listed on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report from the previous year and subject to SPCA's adherence to Virginia law or regulations. If the State charges the local governing bodies fines or civil penalties for any violations by SPCA of Virginia law or regulations, then the City and/or County shall have the dght to set- off the amount of the fine from the next-owing quarterly payment due to the SPCA pursuant to this Agreement. 7. Capital ContributiOns. SPCA will construct a new Animal Shelter facility in accordance with the plans approved in 2001 by the local governing bodies and State veterinarian officials. The facility is scheduled for completion in 2004. If the facility is not built or completed, SPCA will return all capital contributions received from the local governing bodies to each locality, The facility shall be constructed and maintained in strict accordance with all Virginia laws and regulations regarding animal shelter facilities, Subject to annual appropriations by the City and County, each local governing body agrees to make a capital contribution of $50,000 to SPCA on an annual basis for a pedod of five (5) years beginning fiscal year 2002-03, for a total contribution of $250,000 per jurisdiction. Such capital contributions will be made by each locality to the SPCA shortly after July I of each year. 8. Responsibilities of SPCA. a. General Responsibilities. SPCA agrees to: · Impound and care for all animals delivered by the local governing bodies · Place, hold or euthanize all animals not properly redeemed per Virginia law · Provide animal treatment and controlled drugs for euthanasia and other needs and all applicable license and documentation per Virginia law and applicable state and federal regulations · Maintain and publicize appropriate hours of operation at the Animal Shelter · Maintain accurate written accounts of all animals impounded and the jurisdictions in which they were found · Permit authorized representatives of the local governing bodies to inspect records within 48 hours of request · Carry out all procedures required by Virginia law and regulations and local ordinances, including those for impounded animals that have bitten 'a person · Respond to any violations that are identified in annual State inspections in a timely manner · Allow access to the Animal Shelter 24 hours per day for the local governing bodies' ACO personnel · Properly dispose of euthanized animals · Provide regular maintenance and cleaning of pound areas in accordance with Virginia law and regulations Make available dog runs and cat holding facilities available at all times for stray animals delivered to SPCA by ACOs · Provide ali reasonable and necessary vet care and vaccinations · Meet all other responsibilities and obligations applicable to the operations of animal pounds or shelters under Virginia law and regulations b. After-HourS Responsibilities. Effective July 1, 2004, SPCA staff will handle, including pick-up, all injured dog and cat calls within the County weekdays from 6:30 p.m. to 9:00 a.m. and from 4:30 p.m. Saturday thru 9:00 a.m. on Monday, holidays included. Effective July 1, 2004, SPCA staff will handle, including pick up, all injured dog and cat calls within the City weekdays from 4:00 p.m. to 7:00 a.m., except Saturday when coverage will end at 8:00 a.m., and from 4:30 p.m. Saturday through 7:00 a.m. on Monday, holidays included. Prior to this date, ACOs for the County and City will continue to handle all injured dog and cat calls, including pick-up, within their respective jurisdictions. If SPCA does not begin assuming after-hours responsibilities as outlined in this section effective July 1, 2004, the actual costs incurred by the County and City for after-hour services after July 1, 2004 will be deducted from the County's and City's subsequent compensation payment for annual operations to the SPCA. c. Emer.qenc¥ Access. SPCA will provide a reasonably protected area or access to appropriate facilities to the ACOs for emergencies and after hours use. d. Ememencv Plannina. SPCA will develop and practice an evacuation plan for a major shelter disaster and a plan for sheltering community animals abandoned or running loose in case of a natural diSaster in the area. e. ;Iniured. or Diseased Animals. Critically injured or critically ill animals may bo destroyed immediately at the discretion of SPCA in accordance with State regulations. f. Dangerous .Feral. Dogs or Cats. Any feral dog or cat that does not bear a form of identification and that exhibits behavior posing risk to any person can be euthanized, after being kept for a period of not less than three days, one of which must be a full business day, in accordance with Virginia taw and regulations. g. Biting Animals. Stray biting animals shall be confined in accordance with Virginia law and regulations. If someone other than the local ACO delivers a biting animal to SPCA, SPCA shall notiPy the local office of the Virginia Department of Health. SPCA will be responsible for working with the Health Department to ensure that, in aCcordance with Health Department regulations and state law, stray biting animals are released to SPCA at the end of the ten-day confinement period once they have been deemed to be disease-free. Once these animals have been released to the custody and care of SPCA, it shall assume sole responsibility for determining whether they are suitable for adoption. Non-.resident Dogs. If a dog is delivered to SPCA from somewhere outside of the physical boundaries of the City or County, the local governing bodies shall not be charged for the dog's care. ProDedv Licensed Do_~s. SPCA shall shelter properly licensed dOgs for the time pedod required by Virginia law and regulations. Ijcensing and Vaccination. SPCA shall not deliver any dog or cat for adoption or return any owned dog or cat to its owner unless the animal is or will be properly licensed and vaccinated, unless the SPCA is directed otherwise for medical reasons by licensed veterinarians. k. Monthly Records. SPCA shall maintain supporting records for the Animal Shelter operation. Records shall include, at a minimum, data identifying the date an animal is brought to the Animal Shelter, the jurisdiction in which a stray animal was found (including specific addresses), the applicable jurisdiction of the ACO, if involved, and final disposition of each animal. SPCA shall establish and maintain an automated data mechanism that will establish whether an animal has been brought into the Animal Shelter from the County or the City. SPCA agrees to provide a monthly report to the ACOs of each jurisdiction. Supporting records may be modified from time to time by mutual consent of the parties. Records shall be available for inspection by representatives by local governing bodies. 9. Responsibilities of local..qovemin~ bodies. a. General Responsibilities. · To compensate SPCA in accordance with the terms of this Agreement on a quarterly basis; · To deliver to the Animal Shelter dogs confiscated for running at large in the jurisdiction; · To designate an official from the jurisdiction with whom communication is to be made; · To require ACOs to comply with reasonable rules and regulations of facility; To allow all animals not claimed by dghtful owners to be turned over to the SPCA allowing it to place the animal for adoption or euthanization, at its discretion; provided that ACO personnel shall have the opportunity to provide input with regard to any animals eligible for adoption if the ACC personnel feels that the animal may be a danger or hazard to the community; and To permit SPCA to have control over all animals upon delivery by ACOs to the Animal Shelter, subject to provisions of local ordinances and Virginia law and regulations. b. Specific. Responsibilities. · County ACOs will handle all stray dogs and injured animal calls in the County between 8:00 a.m. and 5:00 p.m. Monday through Fdday. County ACOs will handle emergency calls at other hours at the request of the on-duty County Police Department supervisor. · City ACOs will handle all stray dogs and injured animal calls in the City between 7:00 a.m. and 4:00 p.m. Monday through Friday, City ACOs will handle emergency calls at other hours at the request of the on.duty City Police Department supervisor. · County and City ACOs will not handle routine stray cat calls unless the stray animal poses a health hazard. If a stray biting dog is picked up by ACC, the ACC must notify the local office of the Virginia Department of Health. 10. General Animal Shelter procedures. Except for emergencies, animals should be brought to the Animal Shelter weekdays between 8:00 a.m. and 4:00 p.m. and between 8:00 and 6:00 on Wednesdays, or dudng such hours as the parties may mutually agree. Check-in procedures shall be developed in conjunction with the local governing bodies' ACOs and in accordance with Va. Code § 3.1-796.96, as amended, and associated regulations. Owned dogs turned over to ACOs for disposal shall have an admittance form with owner's signature. ACOs shall leave dead dogs in established area for SPCA staff to examine pdor to cremation. ACOs or SPCA representatives shall wdte descriptions of dogs, locations found, and cause of death. ACOs must corn plete a form that includes the owner's name and telephone number when bringing biting animals to the shelter. Questions concerning disposal of dogs shall be referred to the SPCA Shelter Manager. h. ACOs shall not mark dogs for euthanasia unless reasons are provided in writing. ACOs shall not perform euthanasia functions. Procedures for injured wild animals: The SPCA does not handle deer or large wild animals. Small wounded wild animal can be brought to the SPCA, and they will transport the animal to the Waynesboro wildlife facility. Further written procedures governing animal check-in will be developed in collaboration with the City and County Police Departments and SPCA staff, and will be followed by the local governing bodies, ACOs, and SPCA staff. The SPCA Executive Director or Shelter Manager, the Albemarle County Executive or designee, and the City Manager of Charlottesville or designee can propose amendments to 9 procedures. To be effective, these amendments must be adopted by written agreement of the SPCA, County, and City representatives. 11. Liability and Insurance Requirements. SPCA shall maintain sufficient insurance to protect it and the City and County from any claims that may adse from SPCA operations under this Agreement. Such insurance shall meet or exceed the minimum coverage requirements established by the City and County, if applicable. Such coverage may be provided by commercial carriers or by self-insurance or a combination of both. A certificate from the insurance carder providing the insurance shall be filed with the City and County pdor to the execution of this Agreement, naming the City and County as additional insureds. SPCA shall at all times indemnify and hold harmless the City and County and their respective employees, representatives, off'mials and agents from all liability, claims, demands, damages, actions, suits, proceedings, costs and expenses, including attorney's fees, of any kind or nature whatsoever, arising out of, connected with, or resulting directly or indirectly from SPCA operations under this Agreement. 12. Governin,q Law. This Agreement shall be govemed by the laws and regulations of the Commonwealth of Virginia and applicable on3inances of the City of Charlottesville and County of Albemarle. 13. Complete A,(ireement;. Amendments. This Agreement constitutes the final expression of the parties and supersedes all previous agreements and understandings, whether written or oral, relating to the rights and responsibilities of the parties. This Agreement may not be altered, amended, modified, or changed except by written instrument executed by duly authorized representatives of all parties hereto. 14. N.0nappropriation. This Agreement is subject to the approval, ratification and annual appropriations by the City of Charlottesville and County of Albemarle of the necessary money to fund this Agreement for succeeding fiscal years. IN WITNESS WHEREOF, the parties do hereby set forth their signatures, representing that the individuals who affix their signatures hereto have been duly authorized to bind each party to the terms and conditions of the foregoing Agreement: CHARLOTTESVILLE ALBEMARLE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ("SPCA") By: .... Title: COUNTY OF ALBEMARLE, VIRGINIA By: Title: CITY OF CHARLOTTESVILLE, VIRGINIA By: , , Title: ]0 CONDITIONS OF APPROVAL Attachment 3 Agenda Item No. 7. SP-2003~2. Vintaqe Virqinia Am)les. LLC (Si;In #49). Public hearing on a request to allow on-site produce sales at an omhard in accord w/Sec 10,2.2.45 of the Zoning Ord. TM 87, P 9, contains 78.586 acs. Znd RA, Loc on Rt 29 (Monacan Trail) approx 0.8 miles from intersec of US 29 & Rt 692. Samuel Miller Dist. A Virginia Department of Transportation entrance permit for a private entrance shall be obtained for this use; Guardraiis shall be installed to the satisfaction of the Department of Engineering and Public Works on Rural Ridge Lane where it crosses the dam; The applicant shall submit a revised sketch plan that: a. Includes the following note: 'q'he total retail sales area in the farm sales structure shall not exceed fifteen hundred (1,500) square feet: At all times, at least ~ty (50) percent of the retail sales area inside the farm sales structure shall be agricultural or horticultural produce or merchandise produced On the premises. The remaining fifty (50) percent area may be companion items that are not produced on the premises, but are intended to be used with the agricultural or horticultural produce which is produced on the fan-ri. Displays outside the farm sales structure shall be limited to agricultural and horticultural produce only." b. Clearly indicates the limits of the sales area. Retail sales shall be conducted only within the sales area depicted on the revised sketch plan. Agenda Item No. 10. SP-2003-044. Bellair Animal Hospital (Siqn gS4). Public headng on a request to allow companion animal veterinary hospital in accord w/Sec 22.2.2.5 of the Zoning Ord. TM 60, Ps 25A&25B, contains approx 5,6 acs. Znd C1. Loc on Rt 250 W (Ivy Rd), approx 1/10 mile W of intersec of Ivy Rd & the 29/250 By-Pass. Samuel Miller Dist. 2. 3. 4. 5. The approved final concept plan/site plan shall be in substantial accord with the Conceptual Plan dated July 29, 2003 and special permit justification dated Apdl 28, 2003; Any enlargement or expansion of the animal clinic use or structures, within the existing building or in a building addition, will require an amendment to this Special Permit (SP 2003-044); No overnight boarding use other than for those animals under medical cam shall take place in the animal clinic; That portion of the existing building to be used for the clinic shall be soundproofed pdor to commencement of the animal hospital use; A pedestrian path five (5) feet in width shall be constructed across the front of Parcels 25A and 25B in the area between the existing vehicular parking area and the public travelway, to a standard acceptable to the Departments of Planning and Engineering and Public Works (Department of Community Development), to be maintained by VDOT or by the applicant in the event the pathway can not be constructed to meet VDOT standards. In the event that existing power poles or other obstructions make it impossible to meet the acceptable standard; this standard may be modified in the interest of allowing installation of the path. Agenda Item No. 11. SP-2003-46. Suntrust Pantops Branch (Si.qns #69&72). Public hearing on a request to allow drive-in window to serve bank in accord w/Sec 25A.2.2.1 of the Zoning Ord. TM 78, P 73A, contains 1.19 acs. Znd PDMC&EC. Loc on Rt 250 (Richmond Rd), at the SW comer of intersec of Rt 250 & Hanson Rd. Rivanna Dist. The site improvements shall be developed in general accord with the attached concept 1] plan, entitled, App#'cation Plan for Suntrust-Pantops Branch, last revised June 16, 2003; The Automated Teller Machine lane shall be located closest to the building; Provide an informal mix of native screening trees and ornamentals along the western property line to minimize the irn pact of the drive-through structure on the Entrance Corridor, to the satisfaction of the ArChitectural Review Board; Drive-through windows will be limited to three (3); Architectural Review Board issuance of a Certificate of Appropriateness; and Applicant is responsible for installation and maintenance of control devices such as by-pass lanes, signage and pavement markings as indicated on the concept plan. Agenda Item No. 12. SP-20034]48. Randy E. Fox-Home,.Occupation Class B (Si,tin #2). Public hearing on a request to allow Home Occupation Class B for small machine shop that repairs heads off=engines in accord with Chapter 18 Section 13.2.2.9 of the Zoning Ord. TM 90, P 31, contains 5.170 acs. Znd R-l. Loc on Rt 742 (at 1968 Avon Street Extended) apprex 100 yards from intersec of Rt 20. Scottsville Dist. 2. 3. 4. 5. There shall be no additional employees at the site outside of family living at 1968 Avon Street Extended; The applicant will be required to submit a Certified Engineers Report demonstrating compliance with the performance standards in the Zoning Ordinance Section 4.14; The applicant will revise the conceptual plan received by the Planning Department on July 15, 2003 to include a statement limiting the number of vehicle trips weekly to 14; A standard entrance permit for a private road entrance shall be required. VDOT specifications for sight distance shall be required; and No machinery generating noise shall be operated between the hours of 7:00 p.m. and 7:00 a.m, RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS, SERIES 2003A, OF THE COUNTY OF ALBEMARLE, VIRGINIA, IN A PRINCIPAL AMOUNT-NOT TO EXCEED $;',205,000 TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND PROVIDING FOR THE FORM AND DETAILS THEREOF Attachment 4 WHEREAS, the Board of Supervisors (the "Board') of the County of Albemarle, Virginia (the "County"), has determined that it is necessary and expedient to borrow a principal amount not to exceed $7,205,000 and to issue its general obligation school bonds for the purpose of financing certain capital projects for school purposes; and WHEREAS, the County will hold a public headng, duly noticed, on October 1, 2003, on the issuance of the Bonds (as hereinafter defined) in accordance with the requirements of Section 15.2-2606, Code of Virginia 1950, as amended (the "Virginia Code"); and WHEREAS, the School Board of the County has, by resolution adopted on August 14, 2003, requested the Board to authorize the issuance of the Bonds and consented to the issuance of the Bonds; and WHEREAS, the Bond Sale Agreement (as defined below) shall indicate that $7,205~ 000 is the amount of proceeds requested (the "proceeds Requested") from the Virginia Public School Authority (the "VPSA") in connection with the sale of the Bonds; and WHEREAS, the VPSA's objective is to pay the County a purchase pdce for the Bonds which, in VPSA's judgment, reflects the Bonds' market value (the 'VPSA Purchase Price Objective"), taking into consideration suCh factors as the amortization schedule the County has requested for the Bonds relative to the amortization schedules requested by other localities, the purchase price to be received by VPSA for its bonds and other market conditions relating to the sale of the VPSA's bonds; and WHEREAS, such factors may result in the Bonds having a purchase pdce other than par and consequently (7 the County may have to issue a principal amount of Bonds that is less than the Proceeds Requested but in no case greater than the Proceeds Requested in order to receive an amount of proceeds that is substantially equal to the Proceeds Requested, or (ii) if the maximum authorized principal amount of the Bonds set forth in Section I below does not exceed the amount of the discount the purchase price to be paid to the County, given the VPSA Purchase Pdce Objective and market conditions, will be less than the Proceeds Requested; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA: 1. Authorization of, Bonds ,and Use of Proceeds. The Board hereby determines that it is advisable to contract a debt and issue and sell its general obligation school bonds in an aggregate principal amount not to exceed $7,205,000 (the "Bonds") for the purpose of financing certain capital projects for school purposes, including without limitation, the projects described in Exhibit B. The Board hereby authorizes the issuance and sale of the Bonds in the form and upon the terms established pursuant to this Resolution. 2, Sale. of the Bonds. It is determined to be in the best interest of the County to accept the offer of the VPSA to purchase from the County, and to sell to the VPSA, the Bonds at a pdce, determined by the VPSA to be fair and accepted by the County Executive, that is substantially equal to the Proceeds Requested, except that the Bonds may be sold for a purchase pdce not lower than 95% of the Proceeds Requested if issuing the Bonds in the maximum principal amount authorized by Section 1 of this Resolution is insufficient, given the VPSA 13 Purchase Pdce Objective and market conditions, to generate an amount of proceeds substantially equal to the Proceeds Requested. The County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to enter into a Bond Sale Agreement dated as of October 1, 2003 (the "Bond Sale Agreement'), with the VPSA providing for the sale of the Bonds to the VPSA. The Bond Sale Agreement shall be in substantially the form submitted to the Board at this meeting, which form is hereby approved. 3. Details of the Bonds. The Bonds shall be dated the date of issuance and delivery of the Bonds; shall be designated "General OUigation School Bonds, Series 2003A"; shall bear interest from the date of delivery thereof payable semi-annually on each January 15 and July 15 beginning July 15, 2004 (each an "Interest Payment Date'), at the rates established in accordance with Section 4 of this Resolution; and shall mature on July 15 in the years (each a "Principal Payment Date') and in the amounts set forth on Schedule I attached hereto (the =Principal Installments"), subject to the provisions of Section 4 of this Resolution. 4. Interest Rates and p~ncipal InStallments. The County Executive is hereby authorized and directed to accept the interest rates on the Bonds established by the VPSA, provided that each interest rate shall be ten one-hundredths of one percent (0.10%) over the interest rate to be paid by the VPSA for the corresponding principal payment date of the bonds to be issued by the VPSA (the "VPSA Bonds"), a portion of the proceeds of which will be used to purchase the Bonds, and provided further that the true interest cost of the Bonds does not exceed six percent (6.00%) per annum. The Interest Payment Dates and the Principal Installments are subject to change at the request of the VPSA. The County Executive is hereby authorized and directed to accept changes in the Interest Payment Dates and the Principal Installments at the request of the VPSA, provided that the aggregate principal amount of the Bonds shall not exceed the amount authorized by this Resolution and provided further that the final maturity of the Bonds occurs no later than December 31, 2024. The execution and delivery of the Bonds as described in Section 8 hereof shall conclusively evidence such interest rates established by the VPSA and Interest Payment Dates and the Principal Installments requested by the VPSA as having been so accepted as authorized by this Resolution. 5. Form .of,the ,Bonds. The Bonds shall be initially in the form of a single, ,temporary typewritten bond substantially in the form attached hereto as Exhibit A. Bonds: Payment: Pavinc~ Aaent an, d Bond Reqistrar. The following provisions shall apply to the (a) For as long as the VPSA is the registered owner of the Bonds, all payments of principal, premium, if any, and interest on the Bonds shall be made in immediately available funds to the VPSA at, or before 11:00 a.m. on the applicable Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption, or if such date is not a business day for Virginia banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the business day next preceding such Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption. (b) Ail overdue payments of principal and, to the extent permitted by law, interest shall bear interest at the applicable interest rate or rates on the Bonds. (c) SunTrust Bank, Richmond, Virginia, is designated as bond registrar and payment agent for the Bonds (the ~Bond RegistrarS). The County may, in its sole discretion, replace at any time the Bond Registrar with another qualified bank or trust company as successor Bond Registrar, 7. Prer)avment or Redemption. The Principal Installments of the Bonds held by the VPSA coming due on or before July 15, 2013, and the definitive Bonds for which the Bonds held by the VPSA may be exchanged that mature on or before July 15, 2013, are not subject to prepayment or redemption prior to their stated maturities. The Principal Installments of the Bonds held by the VPSA coming due after July 15, 2013, and the definitive bends for which the Bonds held by the VPSA may be exchanged that mature after July 15, 2013, are subject to prepayment or redemption at the option of the County pdor to their stated maturities in whole or in part, on any date on or after July 15, 2013, upon payment of the prepayment or redemption prices (expressed as ]4 percentages of Principal Installments to be prepaid orthe principal amount of the Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment or redemption: Dates Prices July 15, 2013, through July 14, 2014 July 15, 2014, through July 14, 2015 July 15, 2015, and thereafter 101.0% 100.5 100,0 Provided, however, that the Bonds shall not be subject to prepayment or redemption prior to their stated maturities as described above without first obtaining the written consent of the registered owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond Registrar to the registered owner by registered mail not more than ninety (90) and not less than sixty (60) days before the date f~xed for prepayment or redemption. 8. Execution of,the .Bonds. The Chairman or Vice Chairman of the Board, either of whom may act, and the Clerk of the Board or any Deputy Clerk, either of whom may act, are authorized and directed to execute and deliver the Bonds and to affix the seal of the County thereto. 9. Ple, d,qe of. Full Faith, and .Credit. For the prompt payment of the principal of and premium, if any, and the interest on the Bonds as the same shall become due, the full faith and credit of the County are hereby irrevocably pledged, and in each year while any of the Bonds shall be outstanding there shall be levied and collected in accordance with law an annual ad val.o, rem tax upon all taxable property in the County subject to local taxation sufficient in amount to provide for the payment of the principal of and premium, if any, and the interest on the Bonds as such principal, premium, if any, and interest shall become due, which tax shall be without limitation as to rate or amount and in addition to all other taxes authorized to be levied in the County to the extent other funds of the County are not lawfully available and appropriated for such purpose. 10. Use 0f, Proce..eds Certificate and Certificate as to A~itra,qe. The Chairman of the Board, the County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute a CerUflcate as to Arbitrage and a Use of Proceeds Certificate, each setting forth the expected use and investment of the proceeds of the Bonds and containing such covenants as may be necessary in order to show compliance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations relating to the exclusion from gross income of interest on the Bonds and on the VPSA Bonds. The Board covenants on behalf of the County that (i) the proceeds from the issuance and sale of the Bonds will be invested and expended as set forth in such Certificate as to Arbitrage and such Use of Proceeds Certificate and that the County shall comply with the other covenants and representations contained therein and (ii) the County shall comply with the provisions of the Code so that interest on the Bonds and on the VPSA Bonds will remain excludable from gross income for Federal income tax purposes. 11, State N0n-Arbitra,qe Pm,qram;. Proceeds A,qreement. The Board hereby determines that it is in the best interests of the County to authorize and direct the Director of Finance of the County to participate in the State Non-Arbitrage Program in connection with the Bonds. The Chairman of the Board, the county Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute and deliver a Proceeds Agreement with respect to the deposit and investment of proceeds of the Bonds by and among the County, the other participants in the sale of the VPSA Bonds, the VPSA, the investment manager and the depository, substantially in the form submitted to the Board at this meeting, which form is hereby approved. 12. ContinuinR Disclosure A,qreement. The Chairman of the Board, the County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute a Continuing Disclosure Agreement, as set forth in Appendix F to the Bond Sale Agreement, setting forth the reports and notices to be filed by the County and containing such covenants as may be necessary in order to show compliance with the provisions of the Securities and Exchange Commission Rule 15 15c2-12 and directed to make all filings required by Section 3 of the Bond Sale Agreement should the County be determined by the VPSA to be a MOP (as defined in the Continuing Disclosure Agreement). 13. Filina of Resolution. The appropriate officers or agentS of the County are hereby authorized and directed to cause a certified copy of this Resolution to be filed with the Circuit Court of the County. 14. Further Actions. The members of the Board and all officers, employees and agents of the County am hereby authorized to take such action as they or any one of them may consider necessary or desirable in connection with the issuance and sale of the Bonds and any such action previoUsly taken is hereby ratified and COnfirmed. 15. E.ffe.ctive Date. This Resolution shall take effect immediately. 16 AGREEMENT THIS AGREEMENT is made this 3rd day of December 2003 by and between the COUNTY OF ALBEMARLE (the "County"), the CITY OF CHARLOTTESVILLE (the "City")(collectively referred to hereinafter as the "local governing bodies") and the CnARLO ESVn E ALBEMARLE SOCmTY FO t PREVENTION OF C tUEnTY TO A ,aMALS ("SPCA"). 1. PurPose. SPCA owns and operates an Animal Shelter in the County. It is desired by all the parties that SPCA will, at its Animal Shelter, impound and care for all animals delivered by representatives of the local governing bodies, and receive and impound stray animals, as turned in by residents of the local governing bodies who are not the owners of the animals, in accordance with Va. Code § 3.1-796.96, as amended, and associated state regulations. The purpose of this Agreement is to set forth the terms, conditions and compensation that the local governing bodies agree to pay to SPCA for care of such animals on an annual basis and to set forth the terms, conditions and compensation the local governing bodies will pay to SPCA for construction of the new SPCA facility. 2. Definitions. Animal: Shall not include agricultural animals Animal Shelter: Means a facility, other than a private residential dwelling and its surrounding grounds, that is used to house or contain animals and that is owned, operated, or maintained by a nongovernmental entity including, but not limited to, a humane society, animal welfare organization, society for the prevention of cruelty to animals, or any other organization operating for the purpose of finding permanent adoptive homes for animals. Biting Dogs or Cats: Dogs or cats that have bitten a person. Killer Bogs: Dogs that have killed or injured valuable livestock or a pet belonging to a person other than the owner. Owned Dogs or Cats: Dogs or cats previously adopted out by the SPCA shelter or dogs or cats whose owners are known or discovered during the period of stay at the SPCA shelter. Rightful Owner: A person with a right of property in the animal Stray Dogs or Cats: Dogs or cats for whom no owner is known at the time of receipt at the SPCA shelter or discovered prior to disposition either by adoption or destruction. 3. Term of Agreement,. This Agreement shall begin on the first calendar day after execution by all parties and shall continue in effect for one year. The Agreement shall automatically renew for periods of one calendar year unless terminated by any or all of the parties hereto upon 60 days' written notice. 4. Compensation for Annual Operations Costs. The local governing bodies agree to pay a reasonable fee to SPCA fOr board and associated costs for the City's and County's stray dogs and cats. Compensation will be based on the most recent annual Virginia Department of Agriculture and Consumer Services Animal Report filed prior to the local governing bodies' ensuing fiscal year's budget cycle submitted with the SPCA's budget request. Funding will be adjusted to reflect submission of the prior year's annual State animal record report numbers, if SPCA submits the report to the local governing bodies by January 15th of each year. SPCA will maintain records regarding the number of cats and dogs received at the shelter from each local governing body. These records will be used to distinguish cost allocation for the City and the County and any adjustments on an annual basis. The local governing bodies agree to make payments to SPCA on a quarterly basis. 5. Payment Formula. The local governing bodies will pay SPCA an annual fee based on a specific formula and reimbursement rate. The formula is based on the cost of what the local governing bodies could reasonably expect to pay to provide an animal pound that meets Virginia law and regulations. The daily reimbursement rate may be periodically reexamined based upon cost of living adjustments - COLA. a. Calculation of Rate for Dogs: Rate paid per dog is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report preceding the local governing bodies' annual budget submittal process. Rate is $100 per dog, in accordance with the following fee formula: b. Fee Formula for Dogs: I. Identify total number of dogs identified on the annual Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of dogs "surrendered by owners" 3. Subtotal, and subtract number of dogs "on hand" as of January 1 4. Subtotal, and subtract the number of dogs "reclaimed by owners" 5. Total remaining number of dogs and multiply by rate of $100 per animal for total fee to be paid by local governing bodies 6. Divide fee by each jurisdiction, based on shelter records of location where animals were found c. Calculation of Rate for Cats: Rate paid per cat is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report of the year preceding the local governing bodies annual budget submittal process. Rate is $100 per cat brought to the Animal Shelter by the local Animal Control Officers (herein referred to as ACOs). Rate is $50 per cat brought to the Animal Shelter by residents of the City and the County in accordance with the following fee formula. d. Fee Formula for Cats: 1. Identify total number of cats based on the Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of cats "surrendered by owners" from this number 3. Subtotal, and subtract the number of cats "on hand" as of January 1 4. Subtotal, and subtract the number of cats "reclaimed by owners" 5. Identify the number of cats brought in to the shelter by ACOs 6. Subtract the total number of cats brought into the shelter by ACO's from the total number of cats identified at the end of step 4 7~ Multiply the number of cats identified in #5 by $100 and the number of cats identified in #6 by $50 for total fee paid by local governing bodies 8. Divide fee by each jurisdiction, based on shelter records identifying the location where animals were found SPCA agrees to keep and maintain detailed written records of any unexpected or unusual expenses incurred to shelter cats and dogs in accordance with this Agreement and applicable laws and regulations. The local governing bodies will consider providing funds for these expenses as part of their regular annual budgeting schedule, it being expressly understood that the local governing bodies are not obligated to provide such funds. 6. Fines: Compensation is based on results listed on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report from the previous year and subject to SPCA' s adherence to Virginia law or regulations. If the State charges the local governing bodies fines or civil penalties for any violations by SPCA of Virginia law or regulations, then the City and/or County shall have the right to set-off the amount of the fine from the next-owing quarterly payment due to the SPCA pursuant to this Agreement. 7. Capital Contributions. SPCA will construct a new Animal Shelter facility in accordance with the plans approved in 2001 by the local governing bodies and State veterinarian officials. The facility is scheduled for completion in 2004. If the facility is not built or completed, SPCA will return all capital contributions received from the local governing bodies to each locality. The facility shall be constructed and maintained in strict accordance with all Virginia laws and regulations regarding animal shelter facilities. Subject to annual appropriations by the City and County, each local governing body agrees to make a capital contribution of $50,000 to SPCA on an annual basis for a period of five (5) years beginning fiscal year 2002-03, for a total contribution of $250,000 per jurisdiction. Such capital contributions will be made by each locality to the SPCA shortly after July 1 of each year. 8. Responsibilities of SPCA. a. General Resp0ns, ib,ilities. SPCA agrees to: Impound and care for all animals delivered by the local governing bodies Place, hold or euthanize ali animals not properly redeemed per Virginia law · Provide animal treatment and controlled drugs for euthanasia and other needs and all applicable license and documentation per Virginia law and applicable state and federal regulations Maintain and publicize appropriate hours of operation at the Animal Shelter · Maintain accurate written accounts of all animals impounded and the jurisdictions in which they were found · Permit authorized representatives of the local governing bodies to inspect records within 48 hours of request · Carry out all procedures requked by Virginia law and regulations and local ordinances, including those for impounded animals that have bitten a person · Respond to any violations that are identified in annual 'State inspections in a timely manner · Allow access to the Animal Shelter 24 hours per day for the local governing bodies' ACO personnel · Properly dispose of euthanized animals · Provide regular maintenance and cleaning of pound areas in accordance with Virginia law and regulations · Make available dog runs and cat holding facilities available at all times for stray animals delivered to SPCA by ACOs · Provide all reasonable and necessary vet care and vaccinations · Meet all other responsibilities and obligations applicable to the operations of animal pounds or shelters under Virginia law and regulations 4 b. After-Hours Responsibilities. Effective July 1, 2004, SPCA staff will handle, including pick-up, all injured dog and cat calls within the County weekdays from 6:30 p.m. to 9:00 a.m. the following morning and from 4:30 p.m. Saturday thru 9:00 a.m. on Monday, holidays included. Effective July 1, 2004, SPCA staff will handle, including pick up, all injured dog and cat calls within the City weekdays from 4:00 p.m. to 7:00 a.m. the following morning, except Saturday when coverage will end at 8:00 a.m.) and from 4:30 p.m. Saturday thru 7:00 a.m. on Monday, holidays included. Prior to this date, ACOs for the County and City will continue to handle all injured dog and cat calls, including pick-up, within their respective jurisdictions. If SPCA does not begin assuming after-hours responsibilities as outlined in this section effective July 1, 2004, the actual costs incurred by the County and City for after-hour services after July 1, 2004 will be deducted from the County's and City's subsequent compensation payment for annual operations to the SPCA as addressed in Section 4 of this Agreement. Emergency Access. SPCA will provide a reasonably protected area or access to appropriate facilities to the ACOs for emergencies and after hours use. Emergency Planning. SPCA will develop and practice an evacuation plan for a major shelter disaster and a plan for Sheltering community animals abandoned or running loose in case of a natural disaster in the area. ...~jured or Diseased Animals. Critically injured or critically ill animals may be destroyed immediately at the discretion of SPCA in accordance with State regulations. Dangerous.Feral Dogs or Cats. Any feral dog or cat that does not bear a form of identification and that exhibits behavior posing risk to any person can be euthanized, after being kept for a period of not less than three days, one of which must be a full business day, in accordance with Virginia law and regulations. g. Biting Animals. Stray biting animals shall be confined in accordance with Virginia law and regulations. If someone other than the local ACO delivers a biting animal to SPCA, SPCA shall notify the local office of the Virginia Department of Health. SPCA will also ensure that the local office of the Virginia Department of Health examines stray biting animals at the end of the ten-day confinement period. h. Non-resident Dogs. If a dog is delivered to SPCA from somewhere outside of the physical boundaries of the City or County, the local governing bodies shall not be charged for the dog's care. i. Properly Licensed Dogs. SPCA shall shelter properly licensed dogs for the time period required by Virginia law and regulations. j. Licensing and Vaccination. SPCA shall not deliver any dog or cat for adoption or remm any owned dog or cat to its owner unless the animal is or will be properly licensed and vaccinated. k. Monthly Records. SPCA shall maintain supporting records for the Animal Shelter operation. Records shall include, at a minimum, data identifying the date an animal is brought to the Animal Shelter, the jurisdiction in which a stray animal was found (including specific addresses), the applicable jurisdiction of the ACO, if involved, and final disposition of each animal. SPCA shall establish and maintain an automated data mechanism that will establish whether an animal has been brought imo the Animal Shelter from the County or the City. SPCA agrees to provide a monthly report to the ACOs of each jurisdiction. Supporting records may be modified from time to time by mutual consent of the parties. Records shall be available for inspection by representatives by local governing bodies. Responsibilities 0f!ocal governing bodies. a. General Responsibilities. · To compensate SPCA in accordance with the terms of this Agreement on a quarterly basis 6 10. · To deliver to the Animal Shelter dogs confiscated for running at large in the jurisdiction · To designate an official from the jurisdiction with whom communication is to be made · To require ACOs to comply with reasonable roles and regulations of facility · To allow all animals not claimed by rightful owners to be turned over to the SPCA allowing it to place the animal for adoption or euthanization, at its discretion; provided that ACO personnel shall have the opportunity to provide input with regard to any animals eligible for adoption if the ACO personnel feels that the animal may be a danger or hazard to the community · To permit SPCA to have control over all animals upon delivery by ACOs to the Animal Shelter, subject to provisions of local ordinances and Virginia law and regulations b. Specifi,c Responsibilities. · County ACOs will handle all stray dogs and injured animal calls in the County between 8:00 a.m. and 5:00 p.m. Monday through Friday. County ACOs will handle emergency calls at other hours at the request of the on-duty County Police Department supervisor. · City ACOs will handle all. stray dogs and injured animal calls in the City between 7:00 a.m. and 4:00 p.m. Monday through Friday. City ACOs will handle emergency calls at other hours at the request of the on-duty City Police Department supervisor. · County and City ACOs will not handle routine stray cat calls unless the stray animal poses a health hazard. · If a stray biting dog is picked up by ACO, the ACO must notify the local office of the Vkginia Department of Health. General Animal Shelter Procedures. Except for emergencies, animals should be brought to the Animal Shelter weekdays between'8:00 a.m. and 4:00 p.m. and between 8:00 and 6:00 on Wednesdays, or during such hours as the parties may mutually agree. Check-in procedures shall be developed in conjunction with the local governing bodies' ACOs and in accordance with Va. Code § 3.1-796.96, as amended, and associated regulations. Owned dogs turned over to ACOs for disposal shall have an admittance form with owner's signature. do ACOs shall leave dead dogs in established area for SPCA staff to examine prior to cremation. ACOs or SPCA representatives shall write descriptions of dogs, locations found, and cause of death. ACOs must complete a form that includes the owner's name and telephone number when bringing Biting Dogs to the shelter. Questions concerning disposal of dogs shall be referred to. the SPCA Shelter Manager. h. ACOs shall not mark dogs for euthanasia unless reasons are provided in writing. ACOs shall not perform euthanasia functions. jo Procedures for injured wild animals: The SPCA does not handle deer or large wild animals. Small wounded wild animal can be brought to the SPCA, and they will transport the animal to the Waynesboro wildlife facility. Further written procedures governing animal check-in will be developed in collaboration with the City and County Police Departments and SPCA staff, and will be followed by the local governing bodies, ACOs, and SPCA staff. The SPCA Executive Director or Shelter Manager, the Albemarle County Executive or designee, and the City Manager of Charlottesville or designee can propose amendments to procedures. To be effective, these amendments must be adopted by written agreement of the SPCA, County, and City representatives. 11. Liability and Insurance Requirements. SPCA shall maintain sufficient insurance to protect it and the City and County from any claims that may arise from SPCA operations under this Agreement. Such insurance shall meet or exceed the minimum coverage requirements established by the City and County, if applicable. Such coverage may be provided by commercial carders or by self-insurance or a combination of both. A certificate from the insurance carrier providing the insurance shall be filed with the City and County prior to the execution of this Agreement, naming the City and County as additional insureds. SPCA shall at all times indemnify and hold harmless the City and County and their respective employees, representatives, officials and agents from all liability, claims, demands, damages, actions, suits, proceedings, costs and expenses, including attorney's fees, of any kind or nature whatsoever, arising out of; connected with, or resulting directly or indirectly from SPCA operations under this Agreement. 12. Governing Law. This Agreement shall be governed by the laws and regulations of the Commonwealth of Virginia and applicable ordinances of the City of Charlottesville and County of Albemarle. 8 13. Complete Agreement; Amendments. This Agreement constitutes the final expression of the parties and supersedes all previous agreemems and understandings, whether written or oral, relating to the rights and responsibilities of the parties. This Agreement may not be altered, mended, modified, or changed except by written instrument executed by duly authorized representatives of all parties hereto. 14. Nonappropriation. This Agreement is subject to the approval, ratification and annual appropriations by the City of Charlottesville and County of Albemarle of the necessary money to fund this Agreement for succeeding fiscal years. IN WITNESS WHEREOF, the parties do hereby set forth their signatures, representing that the individuals who affix their signatures hereto have been duly authorized to bind each party to the terms and conditions of the foregoing Agreement: CHARLOTTESVILLE ALBEMARLE SOCIETY FOR THE PREVENTION OF CRUELTY TO ~aMALS ("SPCA") CITY OF C~OTTES~LE, ~G~ Approved ~ to fora: _ ~ty A~omey~esignee City ~omey~esi~ee City Dkector of F~ce~esi~ 9 LARRY W. DAVIS COUNTY ATTORNEY PHONE (434) 972-4067 FAX (434) 972-4068 COUNTY OF ALBEMARLE Office of County Attorney 401 Mclntire Road Charlottesville, Virginia 22902-4596 December 4, 2003 MARK A. TRANK DEPUTY COUNI~ ATTORNEY GREG KAMPTNER ANDREW H. HEP, RICK ASSISTANT COUNTY ATTORNEYS Carolyn Foreman Executive Director Charlottesville/Albemarle SPCA, Inc, P.O. Box 7047 Charlottesville, VA 22906 Barbara Ronan. Paralegal Charlottesville City AttorneY's Office P.O. Box 911 Charlottesville, VA 22902 Re: SPCA Agreement Dear Carolyn and Barbara: Please find enclosed a fully endorsed original Agreement, which was approved by the Albemarle County Board of Supervisors on September 10, 2003 and by the Charlottesville City Council on November 3, 2003. Thank you for your assistance. Sincerely, Marsha A. Davis Legal Services Assistant /md encl ~/ cc: Ella Carey Lori Allshouse Davicl P~ Bowerman Rio Linclsa¥ G. Dorrier, Jr. Scottsville Charles S. Martin Rivanna COUNTY OF ALBEMARLE Office of Board of Supervisors 40I Mclntire Road Charlottesville, Virginia 22902-4596 (434) 296-5843 FAX (434) 296-5800 November 17, 2003. Walter F. Perkins White Hall Dennis S. Rooker ,.lack Jouett Sally H. Thomas Samuel Miller Ms. Carolyn Foreman ExecUtive Director Charlottesville/Albemarle SPCA, Inc. P. O. Box 7047 Charlottesville, VA 22906 Dear Ms. Foreman: At its meeting on September 10, 2003 the Board of Supervisors authOrized the County Executive to execute a new agreement between the County of Albemarle, City of Charlottesville and Charlottesville/Albemarle SPCA. This agreement sets forth the terms, conditions and compensation that the County .of Albemarle and the City of Charlottesville agree to pay to the SPCAfor care of animals on an annual basis and sets forth the terms, conditions and compensation the local governing bodies will pay to the SPCA for construction of the new SPCA facility. This Agreement was~developed in coordination with the City of Charlottesville's City Manager's Office, the City and County Animal Control Officers and the Director of the SPCA, and was reviewed and approved by the City and County's Attorneys' Offices. Attached are three copies of the agreement. Please sign each copy and return them to me. I will get the remaining signatures and then return one fully executed agreement to you. If you have any questions, please do not hesitate to contact me. /ewe Sincerely, Ella W: Carey, clerk, CM~- Attachments (3) cc: Lori AIIshouse Printed on recpcted paper LARRY W. DAVIS COUNTY AI-rORNEY PHONE (434) 972-4067 FAX (434) 972-4068 COUNTY OF ALBEMARLE Office of County Attorney 401 Mclntire Road Charlottesville, Virginia 22902-4596 November 20, 2003 MARK A. TRANK DEPUTY COUNTY ATTORNEY GREG KAMPTNER ANDREW H; HERRICK ASSISTANT COUNTY ATrORNEYS Barbara Ronan, Paralegal Charlottesville City Attorney's Office P.O. Box 911 Charlottesville, VA 22902 Re: SPCA Agreement Dear Barbara: Enclosed are three originals of the SPCA Agreement, which was approved by City Council on November 3, 2003. Please obtain the City endorsements on all originals and return them to me. I'll return an original to you once I obtain the County endorsements. Thank you for your assistance. Please call me if you have any questions. Sincerely, Marsha A. Davis Legal Services Assistant /md cc.~lla Carey September 9, 2003 Board of Supervisors County of Albemarle, Virginia 401 Mclntire Road Charlottesville, Virginia Industrial Development Authority of Albemarle County, Virginia Proposed Financing for MJIt Foundation, or any corporation related to the Foundation MJH Foundation (the "Foundation") has requested that the Industrial Development Authority of Albemarle County, Virginia ("Authority"), assist the Foundation, or any corporation related to the Foundation, in financing a portion of the costs related to the acquisition of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia, by the issuance of its revenue bonds, in one or more series, from time to time, in an amount not to exceed $9,000,000 ("Bonds"). As set forth in the resolution of the Authority attached hereto ("Resolution"), the Authority has agreed to issue its Bonds as requested. The Authority has conducted a public hearing on the proposed f'mancing of the Project and has recommended that you approve the issuance of the Bonds as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and Section 15.2-4906 of the Code of Virginia of 1950, as amended. Attached hereto is (1) a certificate evidencing the conduct of the public hearing and the action taken by the Authority, (2) the Fiscal Impact Statement required pursuant to Virginia Code Section 15.2-4907, and (3) the form of resolution suggested by counsel to evidence your approval. ~le~~~~Auth°rity CERTI~CATE The undersigned Secretary of the Industrial Development Authority of Albemarle County, Virginia ("Authority") certifies as follows: 1. A meeting of the Authority was duly called and held on September 9, 2003, at 4:00 o'clock p.m. in the 4th Floor Conference Room at 401 Mclntire Road, in Charlottesville, Virginia, pursuant to proper notice given to each Director of the Authority before such meeting. The meeting was open to the public. The time of the meeting and the place at which the meeting was held provided a reasonable opportunity for persons of differing views to appear and be heard. 2. The Chairman announced the commencement of a public heating on the application of MJH Foundation and that a notice of the hearing was published once a week for two successive weeks in a newspaper having general circulation in the County of Albemarle, Virginia ("Notice"), with the second publication appearing not less than seven days nor more than twenty- one days prior to the heating date. A copy of the Notice has been filed with the minutes of the Authority and is attached as Exhibit A. 3. A summary of the statements made at the public hearing is attached as Exhibit B. 4. Attached as Exhibit C is a tree, correct and complete copy of a resolution ("Resolution") adopted at such meeting of the Authority by a majority of the Directors present at such meeting. The Resolution constitutes ali formal action taken by the Authority at such meeting relating to matters referred to in the Resolution. The Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on this date. WITNESS my hand and the seal of the Authority, this 9th day of September, 2003. Secretary, Industrial Develf e~nt AuthOrity of Albemarle County, VirgSnia [SEAI ] Exhibits: A - Copy of Certified Notice B - Summary of Statements C - Inducement Resolution -2- EXHIBIT A CHA~LO~SV1LL~, VA- ANC., A~F~..:~I~=~., 'N TT.'-I~I~SU[{S) [:]Ai-=.~,~ AUGUST HICKS. C,~g t"F' ,'v1.A NAC-~. 2003 Notice is h~'eby giv~ that t~ ........ :....~ ~, ,, ~ . ,z ~ ~ Vjr~nia Qr ~e. Cau~ ~' Albe~ .~dged ~ t~e ~entafsuch b~, · fndu~lal D~elop~e.~ A~o~y EXHIBIT B TO CERTIFICATE Summary of Statements .Representatives of'MJH Foundation and McGtfireWoods LLP, bond counsel, appeared before the Authority to explain the proposed plan of financing. No one appeared in opposition to the proposed bond issue. EXHIBIT C RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA AUTHORIZING THE ISSUANCE OF UP TO $9,000,000 REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION OF LAND FOR THE BENEFIT OF MJH FOUNDATION OR ANY CORPORATION RELATED TO THE FOUNDATION A. The Industrial Development Authority of Albemarle County, Virginia a political subdivision of the Commonwealth of Virginia ("Authority"), is empowered by the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as amended ("Act"), to issue its revenue bonds to protect and promote the health and welfare of the inhabitants of the Commonwealth of Virginia by assisting in the acquisition, construction, equipping, expansion, enlargement and improvement of medical facilities in order to provide modem and efficient medical services to the inhabitants of the Commonwealth of Virginia; B. The Authority has received a request from MJH Foundation, a non-profit, Virginia nonstock, corporation (the "Foundation"), requesting that the Authority issue and sell up to $9,000,000 of its Healthcare Facility Revenue Bond (MJH Foundation), Series 2003 (the "Bond"), in one or more series, from time to time, to assist the Foundation, or any corporation related to the Foundation, in financing a portion of the costs related to the acquisition, of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia; C. Such assistance will induce the Foundation to locate the Project in Virginia and benefit the inhabitants of the County of Albemarle, Virginia and the Commonwealth of Virginia, either through the increase of their commerce or through the promotion of their safety, health, welfare, convenience or prosperity; D. Preliminary plans for the Project have been described to the Authority and a public hearing has been held as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, ("Code") and Section 15.2-4906 of the Act; E. The Foundation has requested an issue of revenue bonds in the aggregate principal amount not to exceed $9,000,000 to finance the Project; F. Whereas, (a) no member ofthe Board of Directors of the Authority is an officer or employee of the County of Albemarle, Virginia, (b) each member has, before entering upon his duties during his or her present term of office, taken and subscribed to the oath prescribed by Section 49-1 of the Code of Virginia of 1950, as amended and (c) at the time of their appointments and at all times thereafter, including the date hereof, all of the members of the Board of Director~ of the Authority have satisfied the residenc~y requkements of the Act; G. Whereas, no member of the Board of Directors of the Authority has any personal . interest or business interest in the Foundation or any corporation affiliated with it, the Bond, or any of the transactions contemplated therein 'or has otherwise engaged in conduct prohibited under the Conflict of Interests Act, Chapter 31, Title 2.2 of the Code of Virginia of 1950, as amended (the "Conflict of Interests Act") in connection with this resolution or any other official action of the Authority in connection therewith: H. The Bond is expected to be sold to Worrell Land & Development Company, L.C. (the "Bond Purchaser"), a Virginia limited liability company, pursuant to the terms of the following documents (the "Bond Documents"); (a) a Loan Agreement dated as of September 1, 2003 between the Authority and the Foundation; (b) a Bond Purchase Agreement dated as of September 1, 2003 among the Authority, the Foundation and Worrell Land & Development Company, L.C.; (c) a Note of the Foundation; (d) a Note Assignment from the Foundation to the Authority; (e) a form of the Bond, to be dated, bearing interest and payable as provide.d therein; and (f) a Guaranty Agreement dated as of September 1, 2003 by Martha Jefferson Hospital for the benefit of the Bond Purchaser; I. The Bond Documents shall reflect the following terms for the Bond: (1) an aggregate principal amount not .to exceed $9,000,000, (2) a tree interest cost which is equal to the greater of (i) 4.50% per annum or (ii) the interest rate for "A" rated municipal bonds with a seven (7) year maturity quoted by Bloomberg on the 10th day before the date of the issuance of the Bond and (3) a final maturity date no later than September 1,2011 (the "Bond Terms') NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA: 1. It is hereby found and determined .that the acquisition of the Project will be in the public interest and will promote the health and welfare of the Commonwealth of Virginia, the County of Albemarle, Virginia and their citizens. 2. The Authority hereby agrees to assist the Foundation in the Project by undertaking the issuance of its revenue bonds in an amount not to exceed $9,000,000 upon terms and conditions mutually agreeable to the Authority and the Foundation. The Bond will be issued pursuant to documents satisfactory to the Authority. The Bond may be issued in one or more series at one time or from time to time. 3~ I_t h_a_vi_n_g be~e_n r_epresented to the Authority that it is necessary to proceed immediately with the Project, and the planning therefor, the Authority agrees that the Foundation may proceed with plans for the Project, enter into contracts for land for the Project, and take such other steps as it may deem appropriate in connection with the Project, provided, however, that nothing in this resolution shall be deemed to authorize the Foundation to obligate the Authority -2- without its consent in each instance to the payment of any moneys or the performance of any acts in connection with the Project. The Authority agrees that the Foundation may be reimbursed from the proceeds of the bonds for all expenditures and costs so incurred by it, provided such expenditures and costs are properly reimbursable under the Act and applicable federal laws. 4. The Chairman and Vice Chairman of the Authority, either of whom may act, are each hereby approved and directed to execute and deliver on behalf of the Authority the Bond Documents, to which the Authority is a party, upon approval of their final forms, terms and conditions consistent with the Bond Terms. 5. The execution, delivery and performance by the Authority of the Bond Documents, to which the Authority is a party, are authorized. The execution of the bonds and their delivery against payment therefore, the amount of such payment to be disbursed are authorized. 6. The Chairman and the Vice Chairman of the Authority, either of whom may act, are each hereby authorized and directed to execute and deliver on behalf of the Authority the Bond and the Bond Documents, to which the Authority is a party, which have terms consistent with the Bond Terms and to which the Authority is a party, and the Secretary of the Authority is authorized to affix the seal of the Authority to the Bond and, if required, the Bond Documents, to which the Authority is a party, and to attest such seal. The signatures of the Chairman, the Vice Chairman, the Secretary and the seal of the Authority may be by facsimile. Each officer of the Authority is authorized to execute and deliver on behalf of the Authority such instruments, documents or certificates consistent with the Bond Terms, including without limitation documents which might be necessary to obtain credit enhancement and/or liquidity facilities for the Bond, and to do and perform such 'things and acts, as he or she deems necessary or appropriate to carry out the transactions authorized by this Resolution or contemplated by the Bond, the Bond Documents or such instruments, documents or certificates, and all of the foregoing, previously done or performed by such officers of the Authority, are in all respects approved, ratified and confirmed. 7. The Authority determines that the issuance of the Bond in accordance with the Bond Terms, and all action of the Authority contemplated by them will be in furtherance of the purposes for which the Authority was organized. 8. At the request of the Foundation, the Authority approves McGuireWoods LLP, Richmond, Virginia, as Bond Counsel in connection with the issuance of the Bond. 9. All costs and expenses in connection with the Project, including the fees and expenses of Bond Counsel and Authority Counsel, shall be paid by the Foundation or, to the extent permitted by applicable law, from the proceeds of the Bond. If for any reason such Bond is not issued, it is understood that all such expenses shall be paid by the Foundation and that the Authority shall have no responsibility therefore. i0. By presenting this resolution to the Authority, MJH Foundation agrees to indemnify and save harmless the Authority, its officers, directors, employees and agents from and against all liabilities, obligations, claims, damages, penalties, losses, costs and expenses in any way connected with the Project or the issuance of the Bond, so long as such liabilities, obligations, -3- claims, damages, penalties, losses, costs and expenses do not result from the Authority's gross negligence or its willful, wrongful acts. 11. In adopting this resolution the Authority intends to take "official action" toward the issuance of the Bond and to evidence its "official intent" to reimburse from the proceeds of the bonds any expenditures paid by the Foundation to finance the Project and the planning therefor before the issuance of the Bond, all within the meaning of regulations issued by the Internal Revenue Service pursuant to Sections 103 and 141 through 150 and related sections of the Code. 12. The Authority recommends that the Board of Supervisors of the County of Albemarle, Virginia, approve the issuance of the Bond. No bonds maybe issued pursuant to this resolution until such time as the issuance of the Bond has been approved by the Board of Supervisors of the County of Albemarle, Virginia. 13. This resolution shall take effect immediately upon its adoption. -4- CERTI~CATE The undersigned Secretary of the Industrial Development Authority of Albemarle County, Virginia ("Authority") certifies that the foregoing is a true, correct and complete copy of a resolution adopted by a majority of the Directors of the Authority present and voting at a meeting duly called and held on September 9, 2003, in accordance with law, and that such resolution has not been repealed, revoked, rescinded or amended but is in full force and effect on this date. WITNESS the following signature and seal of the Authority, this 9th day of September, 2003. [SEAL.] ecretary of the Indus _t_ri_.~l~De. velopffient Authority of Albemarle County, V~ginia At a regular meeting of the Board of Supervisors of the County of Albemarle, Virginia, held on the 10th day of September, 2003, the following members of the Board of Supervisors were recorded as present: PRESENT: On motion by , seconded by , the attached Resolution was adopted by a majority of the members of the Board of Supervisors by a roll call vote, the votes being recorded as follows: MEMBER VOTE RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA WHEREAS, the Industrial Development Authority of Albemarle County, Virginia ("Authority"), has considered the application of MJH Foundation (the "Foundation") requesting the issuance of the Authority's revenue bonds in an amount not to exceed $9,000,000 ("Bonds") to assist the Foundation, or any corporation related to the Foundation, in the financing of a portion of the costs related to the Foundation's acquisition of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia, and has held a public hearing on September 9, 2003; WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the governmental unit having jurisdiction over the issuer-of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located must approve the issuance of the bonds; WHEREAS, the Authority issues its bonds on behalf of the of the County of Albemarle, Virginia ("County"); the Project is to be located in the County and the Board of Supervisors of the County of Albemarle, Virginia ("Board") constitutes the highest elected governmental unit of the County; WHEREAS, the Authority has recommended that the Board approve the issuance of the Bonds; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds, subject to the terms to be agreed upon, a certificate of the public heating and a Fiscal Impact Statement have been filed with the Board. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA: 1. The Board approves the issuance of the Bonds by the Authority for the benefit of the Foundation, as required by Section 147(f) of the Code and Section 15.2-4906 of the Code of Virginia of 1950, as amended ("Virginia Code") to permit the Authority to assist in the financing of the Project. 2. The approval of the issuance of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Foundation. 3. This resolution shall take effect immediately upon its adoption. Adopted by the Board of Supervisors of the County of Albemarle, Virginia this 10th day of September, 2003. [S ALI Clerk, Board of Supervisors of the County of Albemarle, Virginia FISCAL IMPACT STATEMENT FOR PROPOSED BOND FINANCING Date: September 9, 2003 2'0 the Board of Supervisors of the County of Albemarle, Virginia Applicant: Project: MJH Foundation Acquisition of Land Maximum amount of financing sought. $ 9,000,000 Estimated taxable value of the facility's real property to be Constructed in the locality. $ N/A Estimated real property tax per year using present tax rates. $ N/A Estimated personal property tax per year using present tax rates. $ N/A o Estimated merchants' capital tax per year using present tax rates. $ N/A 6. (a) Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality. $ N/A (b) Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality. $ N/A (c) Estimated dollar value per year of services that will be purchased from Virginia companies within the locality. $ N/A (d) Estimated dollar value per year of services that will be purchased from non-Virginia companies within the locality. $ N/A Estimated number of regular employees on year round basis~ N/A September 9, 2003 Board of Supervisors County of Albemarle, Virginia 401 McIntire Road CharlOttesville, virginia Industrial Development Authority of Albemarle County, Virginia Proposed Financing for MJH Foundation, or ,any corporation related to the Foundation MJH Foundation (the "FOundation") has requested that the Industrial Development Authority of Albemarle County, Virginia ("Authority,),assist the Foundation, or any corporation related to the Foundation, in financing a portion of the costs related to the acquisition of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia, by the issuance of its revenue bonds, in one or more series, fi.om time to time, in an amount not to exceed $9,000,000(,Bonds"). As set forth in the resolution of the Authority attached hereto ("Resolution"),. the Authority has agreed to issue its Bonds as requested. The AuthOrity has conducted a public hearing on the proposed financing of the Project and has recommended that you approve the issuance of the BOnds as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and Section 15.2-4906 of the Code of Virginia of 1950, as amended. Attached hereto is (1) a certificate evidencing the conduct of the public heating and the action taken by the Authority, (2) the Fiscal Impact Statement required pursuant to Virginia Code Section 15.2-4907, and (3) the form of resolution suggested by counsel to evidence your approval. Secretary, Industrial Development; Authority of Albemarle County, Virginia CERTIFICATE The undersigned Secretary of the Industrial Development Authority of Albemarle County, Virginia ("Authority") certifies as follows: 1. A meeting of the Authority was duly called and held on September 9, 2003, at 4:00 o'clock p.m. in the 4th Floor Conference Room at 401 Mclntire Road, in Charlottesville, Virginia, pursuant to proper notice given to each Director of the Authority before such meeting. The meeting was open to the public. The time of the meeting and the place at which the meeting was held provided a reasonable opportunity for persons of differing views to appear and be heard. 2. The Chairman announced the commencement of a public hearing on the application of MJH Foundation and that a notice of the hearing was published once a week for two successive weeks in a newspaper having general circulation in the County of Albemarle, Virginia ("Notice"), with the second pUblication appearing not less than seven days nor more :than twenty- one days prior to the hearing date. A copy of the Notice has been filed with the minutes of the Authority and is attached as Exhibit A. 3. A summary of the statements made at the public heating is attached as Exhibit B. 4. Attached as Exhibit C is a true, correct and complete copy of a resolution ("Resolution") adopted at such meeting of the Authority by a majority of the Directors present at such meeting. The Resolution constitutes all formal action taken by the Authority at such meeting relating to matters referred to in the Resolution. The Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on this date. WITNESS my hand and the seal of the Authority, this 9th day of September, 2003. Secretary, Industrial Development Authority of Albemarle County, Virginia [SEAL] Exhibits: A - Copy~ofCertified Notice B - Summary of Statements C - Inducement Resolution EXItlBIT A Insert Copy of Certificate/Affidavit of Publication EXHIBIT B TO CERTIFICATE Summary of Statements Representatives of MJH Foundaion and McGuireWoods LLP, bond counsel, appeared before the Authority to explain the proposed plan of financing. No one appeared in oppositiOn to the proposed bond issue. EXHIBIT C RESOLUTION OF ~ INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA AUTHORIZING THE ISSUANCE OF UP TO $9,000,000 REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION OF LAND FOR THE BENEFIT OF MJH FOUNDATION OR ANY CORPORATION RELATED TO THE FOUNDATION A. The Industrial DeVelopment Authority of Albemarle County, Virginia a political subdivision of the Commonwealth of Virginia ("Authority"), is empowered by the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950; as amended ("Act"), to issue its revenue bonds to protect and promote the health and welfare of the inhabitants of the Commonwealth of'Virginia by ~assisting in the acquisition, construction, equipping, expansion, enlargement and improvement of medical facilities in order to provide modern and efficient medical services to the inhabitants of the Commonwealth of Virginia; B. The Authority has received a request from MJH Foundation, a non-profit, Virginia nonstock, corporation (the "Foundation"), requesting that ttie Authority issue and sell up to $9,000,000 of its Healthcare Facility Revenue Bond (MJH FoUndation), Series 2003 (the "Bond"), in one or more series, from time to time, to assist the Foundation, or any corporation related to the Foundation, in financing a portion of the costs related to the acquisition, of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia; C Such assistance will induce the Foundation to locate the Project in Virginia and benefit the inhabitants of the County of Albemarle, Virginia and the Commonwealth of Virginia, either through the increase of their commerce or through the promotion of their safety, health, welfare, convenience or prosperity; D. Preliminary plans for the Project have been described to the Authority and a public hearing has been held as required by Section 147(0 of the Internal Revenue Code of 1986, as amended, ("Code") and Section 15.2-4906 of the Act; E. The Foundation has requested an issue of revenue bonds in the aggregate principal amount not to exceed $9,000,000 to finance the Project; F. Whereas, (a) no member of the Board of Directors of the Authority is an officer or employee of the County of Albemarle, Virginia, (b) each member has, before entering upon his duties during his or her present term of office, taken and subscribed to the oath prescribed by Section 49-1 of the Code of Virginia of 1950, as amended and (c) at the time of their appointments and at all times thereafter, including the date hereof, all of the members of the Board of Directors of the Authority have satisfied the residency requirements of the Act; G. Whereas, no member of the Board of Directors of the Authority has any personal interest or business interest in the ~Foundation or any corporation affiliated with it, the BOnd, or any of the transactions contemplated therein or has otherwise engaged in conduct prOhibited under the Conflict of Interests Act, Chapter 31, Title 2.2 of the Code of Virginia of I950, as amended (the "Comqict .of Interests Act") in connection with this resolution orany other official action of the Authority in connection therewith: H. The Bond is expected to ~be sold to'Worrell Land & Development Company; L.C. (the "Bond Purchaser"), a Virginia limited liability company, pursuant to the terms of the following documents (the "Bond DOcuments'); (a) a Loan Agreement dated as of September 1, 2003 between the ~Authority and the Foundation; (b) .a Bond Purchase Agreement dated as of September l, 2003 among the Authority, the Foundation and Worrell Land & Development Company, L.C :; {c) a Note of the Foundation; (d) a Note Assignment from the;Foundation to the Authority; (e) a form of the Bond, to be .dated, bearing interest and payable:as provided · .therein; and (0 a GuarantY Agreement dated as of September 1, 2003 by Martha Jefferson Hospital for the benefit of the Bond Purchaser; I. The Bond Documents shall reflect the following terms for the Bond: (1) an aggregate principal amount not to exceed '$9,000,000, (2) a tme interest cost which is equal to the r ' ~ ..... " ' ..... greate of(0 4.50% per annum or (n) the ~nterest rate for A rated mumc~pal bonds w~th a seven (7) y~i~' matUrity quoted bY Bloomberg on 'the' l0th day before the date o~ the issuance Of the Bo~a/~ ~d (3) a final matUrity date no late~-than Septembe; 1,2011 (the "Bond TermS") ~ NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA: It is hereby found and determined that the acquisition of the Project will' ~be in the public interest and will promote the health and welfare of the CommOnwealth of Virginia' the County of Albemarle, Virginia and their citizens. 2. The Authority hereby agrees to assist the Foundation in the Project by undertaking the issuance of its revenue bonds in an amount not to exceed $9,000;000 upon terms and conditions mutually agreeable to the Authority and the FOUndati°n. The Bond will be issued pursuant to documents satisfactory to the Authority. The Bond may be issued in one or more series at one time or'from time to time. 3. It having been represented to the Authority that it is necessary to proCeed immediately with the Project, and the planning therefor, the Authority agrees that the Foundation may proceed with plans for the Project, enter into contracts for land for the Project, and take such other, steps as it may deem appropriate in connection with the Project, provided, however, that nothing in this resolution shall be deemed to authorize the Foundation to obligate the Authority without its consent in each instance to the payment of any moneys or the performance Of any acts in connection with the Project. The Authority agrees that the Foundation may be reimbursed from the proceeds of the bonds for all expenditures and costs so incurred by it, provided such expenditures and costs are properly reimbursable under'the Act and applicable-federal laws. 4. The Chairman and Vice Chairman of the Authority, either of whom may act, are each hereby approved and directed to execute and deliver on behalf of the Authority the Bond Documents, to which the Authority is a party, upon approval of their final forms, terms and conditions consistent with the Bond Terms. 5. The execution, delivery and performance by the Authority of the Bond Documents, to which the Authority is a party, are authorized. The execution of the bonds and their delivery against payment therefore, the amount of such payment to be disbursed are authorized. 6. The Chairman and the Vice Chairman of the Authority, either of whom may act, are each hereby authorized and directed to execute and deliver on behalf of the Authority the Bond and the Bond Documents, to which the Authority is a party, which have terms consistent with the Bond Termg and to which the Authority is a party, and the Secretary of the Authority is authorized to affix the seal of the Authority to the Bond and, if required, the Bond Documents, to which the Authority is a party, and to attest such seal. The signatures of the Chairman, the Vice Chairman, the Secretary and the seal of the Authority may be by facsimile. Each officer of the Authority is authorized to execute and deliver on behalf of the AUthority such instruments, documents or certificates consistent with the Bond Terms, including without limitation documents which might be necessary to obtain credit 'enhancement and/or liquidity facilities for the Bond, and to do and perform such things and acts, as he or she deems necessary or appropriate to carry out the transactions authorized by this Resolution or contemplated by the Bond,' the Bond Documents or such instruments, documents or certificates, and all of the foregoing~ previously done or performed by such officers of the Authority, are in all respects approved, ratified and confirmed. 7. The Authority determines that the issuance of the Bond in accordance with the Bond Terms, and all action of the Authority contemplated by them will be in furtherance of the purPoses for which the Authority was organized 8. At the request of the Foundation, the Authority approves McGuireWoods LLP, Richmond, Virginia, as Bond Counsel in connection with the issuance of the Bond. 9. All costs and expenses in connection with the Project, including the fees and expenses of Bond Counsel and Authority. Counsel, shall be paid by the Foundation or, to the extent permitted by applicable law, from the proceeds of the Bond. If for ~any reason such Bond is not issued, it is understood that all such expenses shall be paid by the Foundation and that the Authority shall have no responsibility therefore. 10. By presenting this resolution to the Authority, MJH Foundation agrees to indemnify and save harmless the Authority, its officers, directors, employees and agents from and against all liabilities, obligations, claims, damages, penalties, losses, costs and expenses in any way connected with the-Project or the issuance of the Bond, so long as such liabilities, obligations, claims, damages, penalties, losses, costs and expenses do not result from the Authorit's oss Y gr negligence or its willful, wrongful acts. · 11..In adopting this resolution the Authority intends to take "official action!' toward the issuance of the Bond and to evidence its "official intent" to reimburse from the proceeds of the bonds any expenditures paid by the Foundation to finance the Project and the planning therefor before the issuance of the Bond, all within the meaning of regulations issued by the Internal Revenue Service pursuant to Sections 103 and 141 through 150 and related sectionS of the Code. 12. The Authority recommends that the Board of Supervisors of the County of Albemarle, Virginia, approve the issuance of the Bond. No bonds may be issued pursuant to this resolution until such time as the issuance of the Bond has been approved by the Board of Supervisors of the County of Albemarle,.Virginia. 13. This resolution shall take effect immediately upon its adoption. CERTIFICATE The undersigned Secretary of the Industrial Development Authority of Albemarle County, Virginia ("Authority") certifieS that the foregoing is a true, correct and complete copy of a resc;lution adopted by a majority of the Directors of the Authority present and voting at a meeting duly called and held on September 9, 2003, in accordance with law, and that such resolution has not been repealed, revoked, rescinded or amended but is in full force and effect on this date. WITNESS the following signature and seal of the Authority, this 9th day of September, 2003. [SEIki Secretary of the Industrial Development Authority of Albemarle County, Virginia FISCAL IMPACT STATEMENT FOR PROPOSED BOND FINANCING Date: September 9, 2003 To the Board of Supervisors of the County of Albemarle, Virginia Applicant: Project: MJH Foundation Acquisition of Land Maximum amount of financing sought. 2. Estimated taxable value of the facility's real property to be constructed in the locality. 3. Estimated real property tax per year using present tax rates. 4. Estimated personal property tax per year using present tax rates. 5. Estimated merchants' capital tax per year using present tax rates. 6. (a) Estimated dollar value per year of goods that will be purchased from Virginia companies -Mthin the locality. (b) Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality. (c) Estimated dollar value per year of services that will be purchased from Virginia companies within the locality. (d) Estimated dollar value per year of services that will be purchased from non-Virginia companies within the locality. 7. Estimated number of regular employees on year round basis. 8. Average annual salary per employee. 9,000,000 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Chairman, Industrial Development Authority of Albemarle County, Virginia At a regular meeting of the Board of Supervisors of the County of Albemarle, Virginia, held on the 10th day of September, 2003; the following members of the Board of Supervisors were recorded as present: PRESENT: On motion by , seconded by - , the attached Resolution was adopted by a majority of the members of the Board of Supervisors by a roll call vote, the votes being recorded as follows: MEMBER VOTE RESOLUTION ,OF THF~ BOARD OF,SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA WHEREAS, the Industrial Development Authority of Albemarle County, Virginia ("Authority"), haS considered the application of MJH Foundation (the "Foundation") requesting the issuance of the AuthoritY's revenue bondS in an amount not to exceed $9,000,000 ("Bonds") to assist the Foundation, or any corporation related to the Foundation, in the financing of a portion of the costs related to the Foundation's acquisition of approximately 70 acres of land at Peter Jefferson Place on Route 250 East ("Project") in the County of Albemarle, Virginia, and has held a public hearing on September 9, 2003; WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the governmental unit having jurisdiction over the issuer of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located must approve the issuance of the bonds; WHEREAS, the Authority issues its bonds on behalf of the of the County of Albemarle, Virginia ("County"); the Project is to be located in the County and the Board of Supervisors of the County of Albemarle, Virginia ("Board") constitutes the highest elected governmental unit of the County; WHEREAS, the Authority has recommended that the Board approve the issuance of the Bonds; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds, subject to the terms to be agreed upon, a certificate of the public hearing and a Fiscal Impact Statement have been filed with the Board. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA: 1. The Board approves the issuance of the Bonds by the Authority for the benefit of the Foundation, as required by Section 147(0 of the Code and Section 15.2-4906 of the Code of Virginia of 1950, as amended ("Virginia Code") to permit the Authority to assist in the financing of the Project. 2. The approval of the issuance of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Foundation. 3. This resolution shall take effect immediately upon its adoption. Adopted by the Board of Supervisors~ of:the County of Albemarle, Virginia this 10th day of September, 2003. [SEAL] Clerk, BOard of Supervisors of the County of Albemarle, Virginia COUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: SPCA Agreement SUBJ ECTIPROPOSALIREQU EST: Authorize the County Executive to execute a new SPCA agreement between the County, the City of Charlottesville, and the Charlottesville Albemarle Society for the Prevention of Cruelty to Animals (SPCA) STAFF CONTACT(S): Tucker, Foley, Davis, Trank, AIIshouse AGENDA DATE: September 10, 2003 ACTION: CONSENT AGENDA: ACTION: X ITEM NUMBER: INFORMATION: INFORMATION: ATTACHMENTS: Yes REVIEWED BY: ,~,~--~ BAC KG RO U N D: SPCA owns and operates an Animal Shelter in the County and has served as the County's Animal Shelter since 1956. Albemarle County and the City of Charlottesville desire that the SPCA continue, at its Animal Shelter, to impound and care for all animals delivered by representatives of the local governing bodies, and receive and impound stray animals turned in by residents who are not the owners of the animals, in accordance with Va. Code § 3.1-796.96. The prior agreement with the SPCA, executed in 1977, needed to be updated to reflect changes in operational funding and to include the County's capital contributions for the new SPCA facility. DISCUSSION: The purpose of the Agreement is to set forth the terms, conditions and compensation that Albemarle County and the City of Charlottesville agree to pay to SPCA for care of such animals on an annual basis and to set forth the terms, conditions and compensation the local governing bodies will pay to SPCA for construction of the new SPCA facility. Funding for the County's contribution for the construction of the new SPCA facility is included in the County's FY 03 - FY 07 CIP. FY 03/04 funding for SPCA operations was approved by the Board as part of the budget process and is included in the County's annual operating budget. This Agreement has been developed in coordination with the City of Charlottesville's City Manager's Office, the City and County Animal Control Officers and the Director of the SPCA, and has been reviewed and approved by the City and County's Attorneys' Offices. The City plans to request authorization from their City Council to execute this agreement in September 2003. RECOMMENDATION: Staff recommends that the Board authorize the County Executive to execute the attached Agreement on behalf of the County. 03.119 i ' Iii BOARD OF SUPERVISORS AGREEMENT THIS AGREEMENT is made this day of 2003 by and between the COUNTY OF ALBEMARLE (the "County"), the CITY OF CHARLOTTESVILLE (the "City")(collectively referred to hereinafter as the "local governing bodies") and the CHARLOTTESVILLE ALBEMARLE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ("SPCA"), a Virginia nonstock corporation. 1. Purpose. SPCA owns and operates an Animal Shelter in the County. It is desired by all the parties that SPCA will, at its Animal Shelter, impound and care for all animals delivered by representatives of the local governing bodies, and receive and impound stray animals as turned in by residents of the local governing bodies who are not the owners of the animals, in accordance with Va. Code § 3.1-796.96, as amended, and associated state regulations. The purpose of this Agreement is to set forth the terms, conditions and compensation that the local governing bodies agree to pay to SPCA for care of such animals on an annual basis and to set forth the terms, conditions and compensation the local governing bodies will pay to SPCA for construction of the new SPCA facility. 2. Definitions. Animal: Shall not include agricultural animals Animal Shelter: Means a facility, other than a private residential dwelling and its surrounding grounds, that is used to house or contain animals and that is owned, operated, or maintained by a nongovernmental entity including, but not limited to, a humane society, animal welfare organization, society for the prevention of cruelty to animals, or any other organization operating for the purpose of finding permanent adoptive homes for animals. Biting Animals: Animals that have bitten a person. Killer Dogs: Dogs that have killed or injured valuable livestock or a pet belonging to a person other than the owner. Owned Dogs or Cats: Dogs or cats previously adopted out by the SPCA shelter or dogs or cats whose owners are known or discovered during the period of stay at the SPCA shelter. Rightful Owner: A person with a right of property in the animal Stray Dogs or Cats: Dogs or cats for whom no owner is known at the time of receipt at the SPCA shelter or discovered prior to disposition either by adoption or destruction. 3. Term 'of Agreement. This Agreement shall be effective on July 1, 2003 and shall continue in effect for one year. The Agreement shall automatically renew for periods of one calendar year unless terminated by any or all of the parties hereto upon one (1) calendar year written notice. 4. Compensation for Annual Operations Costs. The local governing bodies agree to pay a reasonable fee to SPCA for board and associated costs for the City's and County's stray dogs and cats. Compensation will be based on the most recent annual Virginia Department of Agriculture and Consumer Services Animal Report filed prior to the local governing bodies' ensuing fiscal year's budget cycle submitted with the SPCA's budget request. Funding will be adjusted to reflect submission of the prior year's annual State animal record report numbers, if SPCA submits the report to the local governing bodies by January 15th of each year. SPCA will maintain records regarding the number of cats and dogs received at the shelter from each local governing body. These records will be used to distinguish cost allocation for the City and the County and any adjustments on an annual basis. The local governing bodies agree to make payments to SPCA on a quarterly basis. 5. Payment Formula. The local governing bodies will pay SPCA an annual fee based on a specific formula and reimbursement rate. The formula is based on the cost of what the local governing bodies could reasonably expect to pay to provide an animal pound that meets Virginia law and regulations. The daily reimbursement rate may be reexamined and revised by written agreement of all parties to this Agreement. a. Calculation of Rate for Dogs: Rate paid per dog is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report .preceding the local governing bodies' annual budget submittal process. Rate is $100 per dog, in accordance with the following fee formula: b. Fee Formula for Dogs: 1: Identify total number of dogs identified on the annual Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of dogs "surrendered by owners" 3. Subtotal, and subtract number of dogs "on hand" as of January 1 4. Subtotal, and subtract the number of dogs "reclaimed by owners" 5. Total remaining ?umber of dogs and multiply by rate of $100 per animal for total fee to be paid by local governing bodies 2 6. Divide fee by each jurisdiction, based on shelter records of location where animals were found c. Calculation of Rate for Cats: Rate paid per cat is based on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report of the year preceding the local governing bodies annual budget submittal process. Rate is $100 per cat brought to the Animal Shelter by the local Animal Control Officers (herein referred to as ACOs). Rate is $50 per cat brought to the Animal Shelter by residents of the City or the County in accordance with the following fee formula. d. Fee Formula for Cats: 1. Identify total number of cats based on the Virginia Department of Agriculture and Consumer Services Animal Report 2. Subtract the number of cats "surrendered by owners" from this number 3. Subtotal, and subtract the number of cats "on hand" as of January 1 4. Subtotal, and subtract the number of cats "reclaimed by owners" 5. Identify the number of cats brought in to the shelter by ACOs 6. Subtract the total number of cats brought into the shelter by ACO's from the total number of cats identified at the end of step 4 7. Multiply the number of cats identified in #5 by $100 and the number of cats identified in #6 by $50 for total fee paid by local governing bodies 8. Divide fee by each jurisdiction, based on shelter records identifying the location where animals were found SPCA agrees to keep and maintain detailed written records of any unexpected or unusual expenses incurred to shelter cats and dogs in accordance with this Agreement and applicable laws and regulations. The local governing bodies will consider providing funds for these expenses as part of their regular annual budgeting schedule, it being expressly understood that the local governing bodies are not obligated to provide such fimds. 6. Fines. Compensation is based on results listed on SPCA's annual Virginia Department of Agriculture and Consumer Services Animal Report from the previous year and subject to SPCA's adherence to Virginia law or regulations. If the State charges the local governing bodies fines or civil penalties for any violations by SPCA of Virginia law or regulations, then the City and/or County shall have the right to set-off the amount of the fine from the next-owing quarterly payment due to the SPCA pursuant to this Agreement. 7. Capital Contributions. SPCA will construct a new Animal Shelter facility in accordance with the plans approved in 2001 by the local governing bodies and State veterinarian officials. The facility is scheduled for completion in 2004. If the facility is not built or completed, SPCA will remm all capital contributions received from the local governing bodies to each locality. The facility shall be constructed and maintained in strict accordance with all Virginia laws and regulations regarding animal shelter facilities. Subject to annual appropriations by the City and County, each local governing body agrees to make a capital contribution of $50,000 to SPCA on an annual basis for a period of five (5) years beginning fiscal year 2002-03, for a total contribution of $250,000 per jurisdiction. Such capital contributions will be made by each locality to the SPCA shortly after July 1 of each year. 8. Responsibilities of SPCA. a. General Responsibilities. SPCA agrees to: · Impound and care for all animals delivered by the local goveming bodies · Place, hold or euthanize all animals not properly redeemed per Virginia law · Provide animal treatment and controlled drugs for euthanasia and other needs and all applicable license and documentation per Virginia law and applicable state and federal regulations · Maintain and publicize appropriate hours of operation at the Animal Shelter · Maintain accurate written accounts of all animals impounded and the jurisdictions in which they were found · Permit authorized representatives of the local governing bodies to inspect records within 48 hours of request · Carry out all procedures required by Virginia law and regulations and local ordinances, including those for impounded animals that have bitten a person · Respond to any violations that are identified in annual State inspections in a timely manner · Allow access to the Animal Shelter 24 hours per day for the local governing bodies' ACO personnel · Properly dispose ofeuthanized animals · Provide regular maintenance and cleaning of pound areas in accordance with Virginia law and regulations · Make available dog runs and cat holding facilities available at all times for stray animals delivered to SPCA by ACOs · Provide all reasonable and necessary vet care and vaccinations · Meet all other responsibilities and obligations applicable to the operations of animal pounds or shelters under Virginia law and regulations b. After-Hours Responsibilities. do go Effective July 1, 2004, SPCA staff will handle, including pick-up, all injured dog and cat calls within the County weekdays from 6:30 p.m. to 9:00 a.m. and from 4:30 p.m. Saturday thru 9:00 a.m. on Monday, holidays included. Effective July 1, 2004, SPCA staff will handle, including pick up, all injured dog and cat calls within the City weekdays from 4:00 p.m. to 7:00 a.m., except Saturday when coverage will end at 8:00 a.m., and from 4:30 p.m. Saturday through 7:00 a.m. on Monday, holidays included. Prior to this date, ACOs for the County and City will continue to handle all injured dog and cat calls, including pick-up, within their respective jurisdictions. If SPCA does not begin assuming after-hours responsibilities as outlined in this section effective July 1, 2004, the actual costs incurred by the County and City for after-hour services after July 1, 2004 will be deducted from the County's and City's subsequent compensation payment for annual operations to the SPCA. Emergency Access. SPCA will provide a reasonably protected area or access to appropriate facilities to the ACOs for emergencies and after hours use. Emergency Planning. SPCA will develop and practice an evacuation plan for a major shelter disaster and a plan for sheltering community animals abandoned or running loose in case of a natural disaster in the area. Injured or Diseased Animals. Critically injured or critically ill animals may be destroyed immediately at the discretion of SPCA in accordance with State regulations. Dangerous Feral Dogs or Cats. Any feral dog or cat that does not bear a form of identification and that exhibits behavior posing risk to any person can be euthanized, after being kept for a period of not less than three days, one of which must be a full business day, in accordance with Virginia law and regulations. Biting Animals. Stray biting animals shall be confined in accordance with Virginia law and regulations. If someone other than the local ACO delivers a biting animal to SPCA, SPCA shall notify the local office of the Virginia Department of Health. SPCA will be responsible for working with the Health Department to ensure that, in accordance with Health Department regulations and state law, stray biting animals are released to SPCA at the end of the ten-day confinement period once they have been deemed to be disease-free. Once these animals have been released to the custody and care of SPCA, it shall assume sole responsibility for determining whether they are suitable for adoption. h. Non-resident Dogs. If a dog is delivered to SPCA from somewhere outside of the physical boundaries of the City or County, the local governing bodies shall not be charged for the dog's care. i. Properly Licensed Dogs. SPCA shall shelter properly licensed dogs for the time period required by Virginia law and regulations. j. Licensing and Vaccination. SPCA shall not deliver any dog or cat for adoption or return any owned dog or cat to its owner unless the animal is or will be properly licensed and vaccinated, unless the SPCA is directed otherwise for medical reasons by licensed veterinarians. k. Monthly Records. SPCA shall maintain supporting records for the Animal Shelter operation. Records shall include, at a minimum, data identifying the date an animal is brought to the Animal Shelter, the jurisdiction in which a stray animal was found (including specific addresses), the applicable jurisdiction of the ACO, if involved, and final disposition of each animal. SPCA shall establish and maintain an automated data mechanism that will establish whether an animal has been brought into the Animal Shelter from the County or the City. SPCA agrees to provide a monthly report to the ACOs of each jurisdiction. Supporting records may be modified from time to time by mutual consent of the parties. Records shall be available for inspection by representatives by local governing bodies. 6 9. Responsibilities of local governing bodies. 10. a. General Responsibilities. · To compensate SPCA in accordance with the terms of this Agreement on a quarterly basis; · To deliver to the Animal Shelter dogs confiscated for rtmning at large in the jurisdiction; · To designate an official from the jurisdiction with whom communication is to be made; · To require ACOs to comply with reasonable rules and regulations of facility; · To allow all animals not claimed by rightful owners to be turned over to the SPCA allowing it to place the animal for adoption or euthanization, at its discretion; provided that ACO personnel shall have the opportunity to provide input with regard to any animals eligible for adoption if the ACO personnel feels that the animal may be a danger or hazard to the community; and · To permit SPCA to have control over all animals upon delivery by ACOs to the Animal Shelter, subject to provisions of local ordinances and Virginia law and regulations. b. Specific Responsibilities. · County ACOs will handle all stray dogs and injured animal calls in the County between 8:00 a.m. and 5:00 p.m. Monday through Friday. County ACOs will handle emergency calls at other hours at the request of the on-duty County Police Department supervisor. · City ACOs will handle all stray dogs and injured animal calls in the City between 7:00 a.m. and 4:00 p.m. Monday through Friday. City ACOs will handle emergency calls at other hours at the request of the on-duty City Police Department supervisor. · County and City ACOs will not handle routine stray cat calls unless the stray animal poses a health hazard. · If a stray biting dog is picked up by ACO, the ACO must notify the local office of the Virginia Department of Health. General Animal Shelter Procedures. Except for emergencies, animals should be brought to the Animal Shelter weekdays between 8:00 a.m. and 4:00 p.m. and between 8:00 and 6:00 on Wednesdays, or during such hours as the parties may mutually agree. Check-in procedures shall be developed in conjunction with the local governing bodies' ACOs and in accordance with Va. Code {} 3.1-796.96, as amended, and associated regulations. Co Owned dogs tamed over to ACOs for disposal shall have an admittance form with owner's signature. ACOs shall leave dead dogs in established area for SPCA staff to examine prior to cremation. ACOs or SPCA representatives shall write descriptions of dogs, locations found, and cause of death. go ACOs must complete a form that includes the owner's name and telephone number when bringing biting animals to the shelter. Questions concerning disposal of dogs shall be referred to the SPCA Shelter Manager. h. ACOs shall not mark dogs for euthanasia unless reasons are provided in writing. i. ACOs shall not perform euthanasia functions. jo Procedures for injured wild animals: The SPCA does not handle deer or large wild animals. Small wounded wild animal can be brought to the SPCA, and they will transport the animal to the Waynesboro wildlife facility. Further written procedures governing animal check-in will be developed in collaboration with the City and County Police Departments and SPCA staff, and will be followed by the local governing bodies, ACOs, and SPCA staff. The SPCA Executive Director or Shelter Manager, the Albemarle County Executive or designee, and the City Manager of Charlottesville or designee can propose amendments to procedures. To be effective, these amendments must be adopted by written agreement of the SPCA, County, and City representatives. 11. Liabili _ty and Insurance Requirements. SPCA shall maintain sufficient insurance to protect it and the City and County from any claims that may arise fi.om SPCA operations under this Agreement. Such insurance shall meet or exceed the minimum coverage requirements established by the City and County, if applicable. Such coverage may be provided by commercial carders or by self-insurance or a combination of both. A certificate from the insurance carder providing the insurance shall be filed with the City and County prior to the execution of this Agreement, naming the City and County as additional insureds. SPCA shall at all times indemnify and hold harmless the City and County and their respective employees, representatives, officials and agents from all liability, claims, demands, damages, actions, suits, proceedings, costs and expenses, including attorney's fees, of any kind or nature whatsoever, arising out of, connected with, or resulting directly or indirectly from SPCA operations under this Agreement. 12. Governing Law. This Agreement shall be govemed by the laws and regulations of the Commonwealth of Virginia and applicable ordinances of the City of Charlottesville and County of Albemarle. 13. Complete Agreement; Amendments. This Agreement constitutes the final expression of the parties and supersedes all previous agreements and understandings, whether written or oral, relating to the rights and responsibilities of the parties. This Agreement may not be altered, amended, modified, or changed except by written instrument executed by duly authorized representatives of all parties hereto. 14. Nonappropriation. This Agreement is subject to the approval, ratification and annual appropriations by the City of Charlottesville and County of Albemarle of the necessary money to fund this Agreement for succeeding fiscal years. IN WITNESS WHEREOF, the parties do hereby set forth their signatures, representing that the individuals who affix their signatures hereto have been duly authorized to bind each party to the terms and conditions of the foregoing Agreement: CHARLOTTESVILLE ALBEMARLE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ("SPCA") By: Title: COUNTY OF ALBEMARLE, VIRGINIA By: Title: CITY OF CHARLOTTESVILLE, VIRGINIA By: Title: 9 Approved as to form: County Attorney/Designee City Attomey/Designee Funds Are Available: City Director of Finance/Designee 10 FAX (434) 972-4126 COUNTY OF ALBEMARLE Department of Building Code and Zoning Services 401 Mclntire Road, Room 227 Charlottesville, Virginia 22902-4596 TELEPHONE (434) 296-5832 TTD (434) 972-4012 August 19, 2003 Steven W. Blaine LeClair Ryan Post Office Box 2017 Charlottesville, VA 22902-2017 RE: OFFICIAL DETERMI~iATION OF DEVELOPMENT RIGHTS AND PARCELS- Tax Map 59, Parcels 37B, 37C, 37D, 37E, 37F, 38A, 38B, 38C, 38D, 38E & 38F (Property of Fenstone Developments L.P., Aeacus Real Estate L.P., Thomas E. Worrell, Jr.) Section 10.3.1 Dear Mr. Blaine: The County Attorney and I' have reviewed the title information for the above-noted properties. It is the County Attorney's advisory opinion and my official determination that: Tax Map 59, Parcel 37B contains one (1) theoretical development right. Tax Map 59, Parcel 37C contains zero (0) theoretical development rights. Tax Map 59, Parcel 37D contains one (1) theoretical development right. Tax Map 59, Parcel 37E contains two (2) theoretical development rights. Tax Map 59, Parcel 37F contains one (1) theoretical development right. Tax Map 59, Parcel 38A is a lot of record with five (5) theoretical development rights. Tax Map 59, Parcel 38B is a lot of record with five (5) theoretica~ development rights. Tax Map 59, Parcei-38C is a lot of record with five (5) theoretical development rights. Tax Map 59, Parcel 38D is a lot of record witii five (5) theoretical development rights. Tax Map 59, Parcel 38E is comprised of three separate lots of record;' 1.96 acres with one (1) theoretical development right, 4.89 acres with two (2) theoretical development rights and 0.55 acres with one (1) theoretical development right. Tax Map 59, Parcel 38F is a lot of record with one (1) theoretical development right. The basis for this determination is provided below. I:\DEP'r~BOZS\Determin of Parcel\59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 2 Parcels 37B~ 37C~ 37D~ 37E and 37F This analysis begins with the Ivy Creek Parcel that was identified as Parcel 27 on the 1980 Tax Map 59. This property was subject to the following rezoning actions. It is now zoned RA. ZMA-80-16 rezoned 215 acres, shown as Parcel 27 on Tax Map 59 from R-1 Residential to RPN / A-1. ZMA-94-10 amended a condition of ZMA-80-16 to allow a connection to Brook Road. ZMA-95-14 rezoned, with proffers, the 215-acre property from PRD to RA. This property is now comprised of Parcels 37B, 37C, 37D, 37E and 37F. The most recent deed recorded prior to the date of adoption of the Albemarle County Zoning Ordinance (December 10, 1980) for this property is in Deed Book 649, page 617. That deed, dated June 21, 1978 conveyed 214.11 acres from Farmington, Inc. to Thomas E. Worrell, Jr. The property is described as being composed of 420.568 acres conveyed to the grantor by deed recorded in Deed Book 388, page 580 plus 2.164 acres conveyed to the Grantor by deed recorded in Deed Book 478, page 261, but less and except 15.59 acres conveyed by the deed recorded in Deed Book 478, page 255 and 193.03 acres conveyed by the deed recorded in Deed Book 604, page 72. The 2.164 acres conveyed by the deed recorded in Deed Book 478, page 261 is a strip of the Weldon property that was added to Durrett Road to give it a width of 60 feet. This strip of land is in a class with well lots, cemetery lots and other special use lots created for a specific limited purpose. It is determined that this 2.164 acre parcel is not a lot of record as provided in Sections 10.3 and 10.3.1 of the Zoning Ordinance. Therefore, on the basis of this deed, this 214.11-acre parcel is determined to be one parcel of record with five (5) theoretical' development rights. The app!icant has provided the following history, in Italics, of the transactions affecting this property since December 10, 19807 Parcel 1: IW Creek Thomas E. Worrell, Jr., purchased approximately 214.11 acres and strips of land along Durrett Road from Farmington, Incorporated on June 21, 1978 (649/617- parenthetical references are to Deed Book/page number). Worrell conveyed ali of the property to Ivy Creek, Inc. in March of 1982 (736/504). I:\OEP'r~BCZS\Determin of Parcel\59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 3 Ivy Creek, Inc. subdivided the property into Ivy Creek RPN and sold lots throughout the 1980s. (739/709, 768/160- both plats attached) The Ivy Creek Owners' Association (ICOA) was incorporated in 1982 and received title to the open space and roads of the subdivision, including the strips along Durrett Road (752/491, 768/163). A centrally-located 61.09-acre parcel was reconveyed to WorrelI (768/340). Lot 10 went to Dennis Rooker (806/576), who immediately conveyed to Ann and James Swartz (849/143); Lot 20 to Samuel and Virginia Yount (822/168); Lot 16 to Ann and James Swartz in exchange for Lot 10 (849/145); Lots 14, 15 and 17 to James Swartz (867/730, 739/713); and Lot 18 to Richard and Jacquilyn Schultz (see Parcel 18 below.). Worrell Enterprises, Inc. acquired Lots 14, 15 and 16 in 1986 (921/419), and Ivy Creek Inc. reacquired LOt 20 in 1987 (937/759) and Lot 18 in 1988. Lot 14 Was conveyed to Gary M. Greene in 1987, then conveyed back to Worrell Enterprises the same year (923/269, 953/501). After a minor boundary line adjustment with no net change in acreage (752/487), Lot 17 was conveyed to Worrell Enterprises in 1986 (921/413), then to James and Ruth Pollock in 1987 (921/422). The strips of land along Durrett Road and Lots 9, 11, 1-2, 13, 21, 22 and 23 remained in the possessi.on of Ivy Creek, [nc. The collection of then-current owners resubdivided the property in the early 1990s. Worrell subdivided his 61.09 acres along with the western half of the property (altogether approx. 102.75 acres) into 17 lots plus open space (1118/630; corrected by 1192/239- both plats attached). Worrell conveyed a life estate in Lot 8 to Keepers, Inc. for the life of Thomas E. WorreIl, III, with the remainder to the 1989 Zoe Artime Worrell Trust (1122/710, 1122/713). WorreIl conveyed Lots 2 and 3 to Ivy Creek, Inc. (1202/587). None of the other newly-created lots was conveyed to an individual purchaser. The eastern half of the property (approx. 101.83 acres) was subdivided into 16 lots plus open space (1144/467; corrected by i195/333- both plats attached), which, except for Lot 10, also were never conveyed to individual purchasers. The boundary with the Northlea property was adjusted to remove a .49-acre strip (1195/333), which was deeded into the Northlea property in 1995 (1495/383). In 1992 in order to align the open space and road boundaries with the most recent subdivision plats, ICOA conveyed the open space and road areas to Ivy Creek, Inc., which immediately reconveyed the same, along with any other interest in the open space and roads of the entire subdivision (including the Northlea portion), to ICOA (1258/387, 1258/389). Meanwhile, the Pollocks conveyed Lot 17 to WorreIl (1480/117), who then conveyed it along with Lots 1, 4, 5, 6 and 7 to Ivy Creek, Inc. (1534/633). Worrell Enterprises, Inc., also conveyed Lots 14, 15 and 16 to Ivy Creek, Inc. (1534/637). Finally, ICOA conveyed all of the open space and road area tO Ivy Creek, Inc. and quitclaimed any further interest in the Ivy Creek property (1577/482, 1577/484), so that by early 1997, all of the original property from Farmington was again in the hands of Ivy Creek, Inc. except for Lots 8 and 18 and the .49-acre off-conveyance to the Northlea property. The property was resubdivided ("abandoned") in 1997, yielding the current configuration of five parcels and including two boundary adjustments with TMP 59-59A to remove a total of 3.93' acres (1596/481; corrected by 2001/102). Finally, all_ of the lots I:~DEP'l-~BCZS'~Determin of'ParcelX59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 4 comprising the property were reconveyed (except for lots 8 and 18) to one of Worrell's entities (Aeacus Real Estate Limited Partnership) to achieve the current configuration of lots and owners (1614/381, 1614/384). A discrepancy remains between the 214.11 acres conveyed by Farmington and the acreage as currently platted of the parcel, less all off-conveyances and boundary line adjustments. Based on the physical surveys of the property since purchase, it appears that the acreage actually conveyed from Farmington (less the strips of road) was approximately 204 acres. Also, title to Lot 8 remains split between the life estate of Keepers, Inc. and the future interest of the 1989 Zoe Artime Worrell Trust as remainderman; therefore, these two parties in interest must join in any development of Lot 8. T.M. 59, P. 37D Lot 18: Fenstone parcel As described in Parcel I above, Lot 18 of Ivy Creek RPN was conveyed from Ivy Creek, Inc. to Richard and Jacquilyn Schultz in 1982 (746/218). The Schultzes adjusted the northern and southern boundaries of the parcel in 1982 with no net change of acreage, then conveyed the property to the National Collegiate Realty Corporation in 1988 (971/464), which conveyed to Ivy Creek, Inc. (988/87). Ivy Creek, Inc., conveyed to George and Alexandra Welsh in 1992 (1202/494), and the Welshes conveyed the property to its current owner, Fenstone Developments Limited, in 1997 (591/521). Apart from the discrepancy of approximately 10 acres, this history contains no off conveyances that would reduce the number of development rights that were associated with the parcel of record as it existed on December 10, 1980. The most recent plat of this property is recorded in Deed Book 2001, page 103. This plat by Roger Ray & Assoc., Inc, dated September 25, 2000 divided the parcel of record into five tracts and assigned the five (5) theoretical development rights as follows. Tract 1 (37B) is assigned 1 development right that when used may not total more than 15.66 acres. Tract 2 (37C) may not be further divided into parcels of less than 21 acres. T~'act 3 (37D) used 1 development right and may not be further divided. Tract 4 (37E) is assigned 2 development rights that when used may not total more than 8.31 acres. Tract 5 (37F) is. assigned I development right that when used may not total more than 3.83 acres. I:\DEP'l'~OZS\Determin of Parcet~59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 5 The proffered rezoning of this property to Rural Areas limits limits this property to a total Of fourteen (14)lots. Parcels 38A, 38B and 38C This analysis continues with the Northlea Farms parcels identified as Parcel 36 on the 1980 Tax Map 59. This property is now comprised .of Parcels 38A, 38B and 38C. The most recent deed recorded prior to the date of adoption of the Albemarle County Zoning Ordinance (December 10, 1980) for this property is in Deed Book 693, page 718. By deed, dated May 19, 1980, John S. Watterson, Jr. & Emily T. Watterson conveyed three parcels, shown on a plat by Kurt Gloeckner dated May 12, 1980. The parcels are described as follows: Parcel 1, containing 41.064 acres was conveyed to Stuart G. Watterson. This is now identified as Parcel 38A on Tax Map 59. Parcel 2, containing 40.318 acres was conveyed Wayt T. Watterson. This is now identified as Parcel 38B on Tax Map 59. Parcel 3, containing 40.129 acres was conveyed to John S. Watterson, III. This is now identified as Parcel 38C on Tax Map 59. On the basis of this deed, these three parcels, 38A, 38B and 38C are determined to:.be separate parcels of record. Each of these parcels has five (5) theoretical development rights. Parcels 38D & 38E Tax Map 59, Parcel 38E was shown as Parcel 39 on the 1980 Tax Map. Tax Map 59, Parcel 38D was shown as Parcel 38 on the 1980 Tax Map. The most recent deed recorded prior to the date'of adOl~tion of the Albemarle County Zoning Ordinance (December 10, 1980) for these two parcels is in Deed Book 390, page 261. This deed, dated Ju. ly 10, 1963, conveyed four tracts or parcels from J. Deering Danielson and Rosemary S. Danielson to Katherine M. Dure. The tracts are described as follows: 1. A tract of land containing 4.89 acres, more or less, designated as Lot 1 on a plat recorded in Deed Book 252, page 537. This is a portion of 38E. 2. A tract of land containing 0.55 acres, more or less, designated as Lot 2 on the aforesaid plat recorded in Deed Book 252, page 537. This is a portion of 38E. I:~)EP'l'~BCZS\Determin of Parcel\59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 6 3. A tract containing 1.96 acres, more or less, described on a plat recorded in Deed Book 253, page 319. This is a portion of 38E. These three tracts comprise what is shown on the Tax Map as Parcel 38E. 4. A tract containing 32.7 acres, identified above in the description of Deed Book 284, page 206. This is Parcel 38D. On the basis of this deed, Parcel 38.D, containing 32.7 acres is determined to be a separate parcel of record with five (5) theoretical development rights. And, on the basis of this deed, Parcel 38E is determined to be three separate parcels of record; one containing 4.89 acres with two (2) theoretical development rights, another containing 1.96 acres with one (1) theoretical development right and the third containing 0.55 acres with one (1) theoretical development right. Parcel 38F Tax Map 59, Parcel 38F was shown as Parcel 36A on the 1980 Tax Map. The most recent deed recorded prior to the date of adoption of the Albemarle County Zoning Ordinance (December 10, 1980) fOr this property is in Deed Book 526, page 25. This deed, dated March 30, 1973, conveyed two acres from Citizens Bank and Trust Company to the Citizens Bank and Trust Company and Walter M. Cushman. The parcel is shown on a plat by Thomas B. Blue that is dated March 14, 1973 and attached to this deed. On the basis of this deed, Parcel 38F, containing 2.0 acres is determined to be a separate parcel of record with one (1) theoretical development right. The applicant has provided, in Italics, the following history of the transactions affecting this property since December 10, 1980. Parcel 2: Northlea/Watterson Katherine M. Dure acquired three small parcels totaling 7.4 acres, along with a 32.7- acre parcel in 1963 (390/261), all of which she retained until her death in 198Z The parcels were conveyed by her devisees Leon and Ann Dure to Northlea Farms (970/695), and then conveyed to Ivy Creek Limited Partnership in 1988 (998/113). Citizens Bank and Trust Company and Walter M. Cushman as co-trustees acquired a two-acre square parcel in 1973 (526/25) and conveyed it to Northlea Farms in 1985 (839/566). Northlea Farms, Inc. conveyed the parcel to Ivy Creek Limited Partnership in 1988 (998/110). I:~)EPT~BCZS\Oetermin of Parcel~59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 7 In May of 1980, John and Emily Watterson subdivided their 121.5-acre Northlea Farms land into three parcels of 41.064, 40.318 and 40.129 acres, which they conveyed to their children (693/718). Each of the Watterson children conveyed his parcel to Ivy Creek Limited Partnership in 1988 (998/117, 998/120, 998/123). Ivy Creek Limited Partnership conveyed all eight of the parcels it acquired in 1988 to Thomas E. Worrell in 1990 (1115/550), who immediately conveyed them to Northlea Farms, Inc. (f/Wa Watterson Farms, Inc.) (1115/559). Northlea Farms subdivided the land into phase V of Ivy Creek (1195/345- plat attached) in 1991, but did not convey any lots to individual purchasers. The subdivision plat shows the addition of the .49 acres from Ivy Creek. Northlea Farms, Inc. conveyed the land to Ivy Creek Limited Partnership in 1991 (1202/162), which resubdivided ("abandoned") in 1995, leaving the present configuration of five lots (1499~229- plat attached). Ivy Creek Limited Partnership conveyed'the entire property to the present owner, Aeacus Real Estate Limited Partnership (one of Worrell's entities)(1614.378). This history contains no off conveyances that would reduce the number of parcels of record or the development rights that were associated with Parcels 38A, 38B, 38C, 38D, 38E and 38F as they existed on December 10, 1980. For reference, the most recent plat of this property is recorded in Deed Book 1499, page 229. The purpose of this plat by Roger Ray & AssoC., Inc, revised October 16, 1995 is to recreate the parent tract that existed on December 10, 1980. These parcels are entitled 'to the noted development rights if all other applicable regulations can be met. These development rights are theoretical in nature but do represent the maximum number of lots containing less than twenty one acres allowed to be created by right. In addition to the development right lots, a "parent parcel" may create as many parcels containing a minimum of twenty-one acres as it has land to make. If you are aggrieved by this determination, you have a .right to appeal it within thirty days of the date notice of this determination is given, in accordance with Section 15.2-2311 of the Code of Virginia. If you do not file a timely appeal, this determination shall be final and unappealable. An appeal shall be taken only by filing with the Zoning Administrator and the Board of Zoning Appeals a notice of appeal which specifies the grounds for the appeal. An appeal application must be completed and filed along with the fee of $120.00. The date notice of this determination was given is the same as the date of this letter. If you have any questions, please contact me. I:~EP'r~czs~)etermin of Parcel\59-37-38 Ivy Creek Parcels.doc Steven W. Blaine August 19, 2003 Page 8 Sincerely, John Shepherd Manager of Zoning Administration Copies: Thomas E. Worrell Dennis Rooker Gay Carver, Real Estate Department Ella Carey, Clerk Board of Supervisors --Reading Files Attached: ZMA-95-14 Action letter and proffers Table of parcels, deed references and development rights I:\DEPT~BCZS\Determin of Parcel\59-37-38 Ivy Creek Parcels.doc Tax Ma13/Parcel 12/10/80 Deed Develo13ment Rights Parent Parcel 59-37B D.B. 649, 13. 61-7 1 59-27 59-37C D.B. 649, 13. 617 0 59-27 59-37D D.B. 649, 13. 617 1 59-27 59-37E D.B. 649, 13. 617 2 59-27 59-37F D.B. 649, 13- 617 1 59-27 59-38A D.B. 693, 13. 718 5 59-36 59-38B D.B. 693, 13. 718 5 59-36 59-38C D.B. 693, 13. 718 5 59-36 59-38D D.B. 390, 13. 261 5 59-38 59-38E 4.89 acre 13ortion D.B. 390, 13. 261 2 59-39 59-38E 0.55 acre 13ortion D.B. 390, 13. 261 1 59-39 59-38E 1.96 acre 13ortion ~D.B. 390, 13, 261 1 59-39 59-38F D.B. 526, 13~ 25 1 59-36A l:\DEP'l'~CZS\Determin of Parcel~59-37-38 Ivy Creek Parcels.doc March 21, 1996 COUNTY OF ALBEMARLE Dept. of Planning & Community Developmen£ 401 McInfire Road Charlottesville, Virginia 22902-4596 (8O4) ~6-5823 Dennis Rooker, PC 115 South Pantops Drive. Charlottesville, VA 22901 RE: ZMA-95-14 Dennis Rooker/Ivy Creek, Inc ETAL Tax Map 59A1, Parcels 1-33 & B (open space) Dear Mr. Rooker: The Albemarle County Board of Supervisors, at its meeting on March 6, I996, adopted the attached resolution approving ZMA-95-14. If you have any questions, please do not hesitate to contact me. Sincerely, · /ayn~glimberg ~ ) Director of Planning &~ity Development VWC/jcf cc: Amc!ia McCulley Jo Higgins Fred Payne RESOLUTION TO APPROVE ZMA-95-14 IVY CREEK, INC. WHEREAS, in accordance with section 15.1-431 of the Code of Virginia and Section 33 of the Albemarle County Zoning Ordinance, a public hearing was advertised, adjoining property owners notified, and a hearing scheduled on ZMA-95-14 for rezoning approximately 214 acres from PRD, Planning Residential Develop- ment, to RA, Rural Areas District, on property more particularly identified in the zoning application; and WHEREAS, 'the Board's review of the application assumes that the 1994 approval of ZMA-94-10 was premised upon the fact that the driveway permitted by that approval would be properly gated to prevent unauthorized access from Ivy Creek Subdivision; and WHEREAS, this application and the attached proffers are consistent with the Comprehensive Plan, good zoning practices, and the prior approval of ZMA-94-10. NOW, THEREFORE, BE IT RESOLVED that the Board of County Supervisors of Albemarle County, Virginia, hereby approves ZMA-95-14 with proffers, the proffers being attached hereto and made a part'of this approval. I, Ella W. Carey, do hereby certify that the foregoing writing is a true, correct copy of a resolution duly adopted by the Board of County Supervisors of Albemarle County, Virginia, at a regular meeting held on March 6, 1996. Clerk, Board ~f y Supervisors Date: 2/22/96 ZMA# 95-14 Tax Map Parcel(s) # 95A-] Lots (l-33) and Parcel B 214 Acres to be rezoned from PRD to RA Pursuan[ to Section 33.3 of the Albemarle County Zoning Ordinance, the owner, or its duly authorized agent, hereby voluntarily proffers the conditions listed below which shall be applied to ,the property, if rezoned. These conditions are proffered as a part of the requested rezoning and it is agreed that the limitations: (1) are req~Jired or arise because of the nature of the property and the rezoning sought, and (2) have a reasonable relation to the rezoning requested. (1) Within 45 days of the rezoning of the property, the owners will submit to Albemarle County for approval a revised plat of the property with a total number of lots not to exceed 14. (2) Prior to any further development of the property, the property shall be resubdivided in accord with an approved plat constisting of not more than 14 lots. (3) Access limitedto Broomley Road only, and no access onto Brook Road. This condition shall not prohibit the connection of a private driveway from the Broomley Farm property to the roads serving the Ivy Creek property, provided that the private driveway is not used for subdivision purposes for so long as it physically connects the Ivy Creek property to Brook Road. Lots Owned: Owner siqnature: 59-A-i (1, 4, 5-7, 17) Date Signed: ~-~3-q ~ Thomas E. Worrell, Jr. 59-A-1 (2~3, 9-13, 19-33) Date Signed: ~)- i~~'ci~ Ivy Creek, Inc. Robert M. Smither, Jr., V.P. 59-A-1 (8) Date Signed: Keepers, Inc. Robert M. smither, Jr., VoPo 59-A-1 (14-16) Date Signed: Worrell Enterprises, Inc. 59-A-1 (18) Date Signed: Alexandra Welsh George Welsh Date Signed: Parcel B Date Signed: Ivy Creek Owners' Association, Inc. B~7., V.P. Date: 2/22/¢6 214 ZMA# es-t4 TaxMap Parcel(s)# 9s^-t T~ots (1-33) and Parcel g __ Acres to be rezoned from PRD to RA Pursuant to Section 33.3 of the Albemarle County Zoning Ordinance, the owner, or its duly authorized agent, hereby voluntarily proffers the conditions listed below which shall be applied to ,the property, if rezoned. These conditions are proffered as a part of the requested rezoning and it is agreed that the limitations: (1) are reqdired or arise because of the nature of the property and the rezoning sought, and (2) have a reasonable relation to the rezoning requested. (1) Within 45 days of the rezoning of the property, the Owners will submit to Albemarle County for approval a revised plat of the property with a total number of lots not to exceed 14. (2) Prior to any further development of the property, the property shall be resubdivided in accord with an approved plat constisting of not more than 14 lots. (3) Access limite~ to Broomley Road only, and no access onto Brook Road. This condition shall not prohibit the connection of a private driveway from the Broomley Farm property to the roads serving the Ivy Creek property, provided that the- private driveway is not used for subdivision purposes for so long as it physically connects the Ivy Creek property to Brook Road. Lots Owned: Owner Siqnature: 59-A-1 (1, 4, 5-7, 17) Date Signed: Thomas E. Worrell, Jr. 59-A-1 (2~3, 9-13, 19-33) Ivy Creek, Inc. Date Signed: 59-A-1 (8) By: Robert M. Smither, Jr., V.P. Keepers, Inc. Date Signed: By: 59-A-1 (14-16) Robert M.. Smither, Jr., V.P. Worrell Enterprises, Inc. Date Signed: By: 59-A-1 (18) % Parcel B Robert M. Smither, Jr., V.P. G~orge We~h Ivy Creek Owners' Association, Inc. Date Signed: By: Robert M. Smither, Jr., V.P. CENTRAL VIRGINIA ELECTRIC COOPERATIVE August 27, 2oo3 Certified Mail 70000520002116985231 Return Receipt Requested Mr. Lindsay G. Dorrier, Chair Board of Supervisors Albemarle County 4Ol McIntire Road, Co. Office Bldg. Charlottesville, VA 22902-4596 Re: CASE NO. PUE-2oo3-oo327 Dear Mr. Dorrier: Enclosed for your information is a complete copy of the State Corporation Commission's Order Prescribing Notice and Inviting Comments and Requests for Hearing. The Order relates to Central Virginia Electric Cooperative's application for approval of its plan to implement retail access. Sincerely, Howard L. Scarboro President & CEO Enclosure Post Office Box 247 · Lovingston, VA 22949 Telephone: 434/263-8336 Fax: 434/263-8339 Toll Free in Virginia: 800/FOR-CVEC (800/367-2832) Internet: www.forcvec.com COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION AT RICHMOND, AUGUST 13, 2003 APPLICATION OF CENTP~AL VIRGINIA ELECTRIC COOPEP_ATIVE For approval of its plan to implement retail access CASE NO. PUE-2003-00327 ORDER PRESCRIBING NOTICE AND INVITING COMMENTS AND REQUESTS FOR HEARING On July 21, 2003, Central Virginia Electric Cooperative ("CVEC" or the "Cooperative") filed an application with the State Corporation Commission ("Commission") for approval of the Cooperative's retail access tariffs and terms and conditions of service for retail access as required by Ordering Paragraph (10) of the Commission's December 18, 2001, Final Order issued in CVEC's application for a general increase in rates and for approval of its functional separation plan, Case No. PUE-2000- 00583,m and pursuant to the Virginia Electric Utility Restructuring Act (the "Act"), Chapter 23 of Title 56 (§ 56-576 et seq.) of the Code of Virginia. CVEC's retail access tariff filing includes: 1. Rate Schedules and Tariffs for Retail Access; See Application of Central Virqmnia Electric Cooperative, For a general increase in rates, Case No. PUE-2000-00583, 2001 S.C.C. Ann. Rep. 464, 466. 2. Terms and Conditions for Providing Distribution Service with Retail Access General Rules and Regulations; 3. A Competitive Service Provider Coordination Tariff, including the following: a. Competitive Service Provider Agreement, b. Electronic Data Interchange (EDI) Trading Partner Agreement, c. Transmission Customer Designation Form, d. Dispute Resolution Procedure, and e. Aggregator Agreement; 4. Plan to provide Price-to-Compare Information and assistance to customers; 5. Minor modifications to existing Terms and Conditions for Distribution Service and to Capped Rate Schedule B-General Service. CVEC advised that it was not imposing a wires charge at this time and therefore was not filing market fane and competitive transition charge calculations. CVEC noted that its Terms and Conditions for Retail Access provide that no un- metered servmce may be supplied by a Competitive Service Provider ("CSP"); there is no competitive transition charge; and that its Terms and Conditions for Retail Access provide for consolidated billing services. 2 In its application, CVEC has also requested a revision in the language of the second sentence of the third paragraPh of Section VI.H of its Terms and Conditions for Providing Distribution Service. Section H addresses the provisions for providing service to lots in a residential development. The Cooperative proposes the changes to Section H set out below. The text below includes strikethroughs to show deleted material and bolded text to indicate language replacing the deleted material for Section H: If within five years after the installation is made, a house is built on a lot in the development and the Cooperative provides service t'hereto by the installation of no more than 1,400 feet of additional line, the Cooperative will, within two months after the permanent service is installed and a refund is requested, refund to the Applicant the difference in 1,400 feet and actual footage of the extension, multiplied by the avcragc~ cost per foot the cost per foot for the line extension referenced in Section VI.H.2, above. CVEC represents that its application is being submitted for approval in anticipation of the Cooperative commencing retail access in its service territory effective January 1, 2004. The Cooperative's tariff proposals found in its application will take effect on January t, 2004. NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that CVEC's application should be docketed; that notice should be given to the public of the Cooperative's application; that interested persons should be given an opportunity to comment or request a hearing on the Cooperative's application; that staff should investigate and analyze the Cooperative's applicanion and present its recommendations in a report to the Commission; and that the CooperatiVe and any interested person should be given an opportunity to respond to the Staff's report. Accordingly, IT IS ORDERED THAT: (1) This matter is docketed and assigned Case No. PUE- 2003-00327. (2) The Cooperative's application and accompanying materials may be viewed during regular business hours at the Commission's Document Control Center, located in the Tyler Building, First Floor, 1300 East Main Street, Richmond, Virginia. Interested persons may also access unofficial copies of the application through the Commission's Docket Search portal at http://www.state.va.us/scc/caseinfo.htm~. A copy of the application and accompanying materials may be obtained, at no cost, by making a written request to Howard L. Scarboro, President and Chief Executive Officer, Central Virginia Electric Cooperative, P. O. Box 247, Lovingston, Virginia 22949. CVEC shall make a copy of its application and accompanying materials available on an electronic basis upon request. (3) On or before September 15, 2003, CVEC shall cause the ~following notice to be published as display advertising (not classified) in the latest issue of CVEC's publication The Current Communicator: NOTICE OF THE APPLICATION OF CENTRAL VIRGINIA ELECTRIC COOPERATIVE, FOR APPROVAL OF ITS PLAN TO IMPLEMENT RETAIL ACCESS CASE NO. PUE-2003-00327 On July 21, 2003, Central Virginia Electric Cooperative ("CVEC" or the "Cooperative") filed an application with the State Corporation Commission ("Commission") for approval of the Cooperative's retail access tariffs and terms and conditions of service for retail access as required by Ordering Paragraph (10) of the Commission's December 18, 2001, Final Order issued in CVEC's case for a general increase in rates and for approval of the Cooperative's functional separation plan, Case No. PUE- 2000-00583, and pursuant to the Virginia Electric Utility Restructuring Act (the "Act"), Chapter 23 (§ 56-576 et seq.) of Title 56 of the Code of Virginia. CVEC's retail access tariff filing includes: 1. Rate Schedules and Tariffs for Retail Access; 2. Terms and Conditions for Providing Distribution Service with Retail Access General Rules and Regulations; a Competitive Service Provider Coordination Tariff, including the following: 3. Competitive Service Provider Agreement, b. Electronic Date Interchange (EDI) Trading Partner Agreement, c'. Transmission Customer Designation Form, d. Dispute Resolution Procedure, and e. Aggregator Agreement; 4. Plan to provide Price-to-Compare Information and assistance to customers; and 5 5. minor modifications to existing Terms and Conditions for Distribution Service and Capped Rate Schedule B-General Service. CVEC specifically proposes a modification to the third Paragraph of Section VI.H of its Terms and Conditions for Providing Distribution Service. This section addresses the Cooperative's provisions for extending service to lots in a residential development. CVEC represents that it is not imposing a wires charge at this time and therefore was not filing market rate and competitive transition charge calculations. CVEC advises that its application is being submitted for approval in anticipation of the Cooperative commencing retail access in its service territory effective January 1, 2004. The Cooperative's tariff proposals found in CVEC's application will take effect on January 1, 2004. A copy of CVEC's application is available for inspection during regular business hours at the State Corporation Commission, Document Control Center, located on the First Floor of the Tyler Building, 1300 East Main Street, Richmond, Virginia. Interested persons may also access unofficial copies of the application through the Commission's Docket Search Portal at http://www.state.va.us/scc/caseinfo.htm. A copy of the application and accompanying materials may also be obtained at no charge by making a written request to Howard L. Scarboro, President and Chief Executive Officer, Central Virginia Electric Cooperative, P. O. Box 247, Lovingston, Virginia 22949. CVEC should make a copy of its application and its accompanying materials available on an electronic basis upon request. Interested persons who want to participate fully in this proceeding as a respondent mn order to have the opportunity to mssue interrogatories or cross-examine witnesses must file a notice of participation referring to Case No. PUE- 2003-00327 on or before October 24, 2003, with the Clerk of the Commission at the following address: Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218. A copy of a notice of participation shall be mailed to the President and Chief Executive Officer of the Cooperative at the address set out above on or before October 24, 2003. Those persons who file comments and do not otherwise file a notice of participation to become a respondent may participate in any scheduled hearing by giving oral testimony as a public witness. Any person who expects to participate as a respondent should promptly obtain a copy of the Order Prescribing Notice and Inviting Comments and Requests for Hearing for complete details regarding the procedural schedule and for instructions on participation mn this case. On or before October 24, 2003, any interested person wishing to comment on CVEC's application shall file an original and fifteen (15) copies of written comments with the Clerk of the Commission at the address set forth above, and shall refer to Case No. PUE-2003-00327 in these commenEs. A copy of such comments shall be sent on or before October 24, 2003, to CVEC's President and Chief Executive Officer at the address set forth above. Respondents or public witnesses desiring to submit comments electronically may do so by following the instructions available at the Commission's website: http://www.state.va.us/scc/caseinfo.htm, and referring to Case No. PUE-2003-00327. On or before October 24, 2003, a respondent may also file an original and fifteen (15) copies of a request for hearing on CVEC's application and/or file an original and fifteen (15) copies of comments on the application with the Clerk of the Commission at the address set out herein. ~Requests for hearing shall state why a hearing is necessary and why issues raised in the request for hearing cannot be adequately addressed in written comments. Ail correspondence shall refer to Case No. PUE-2003-00327. A copy of any comments or requests for hearing shall also be sent to CVEC's President and Chief Executive Officer at the address set forth above. If no sufficient request for hearing is received, a formal hearing may not be held, and the Commission may make its decision on CVEC's application based upon the papers filed in this proceeding. CENTRAL VIRGINIA ELECTRIC COOPERATIVE (4) CVEC shall forthwith serve a copy of this Order on the Chairman of the Board of Supervisors of any county, upon the Mayor or Manager of any city or town, and upon equivalent officials in counties, cities, and towns having alternate forms of government within CVEC's service territory. Service shall be made by first-class mail or hand-delivery to the customary place of business or residence of the person served. (5) On or before September 15, 2003, CVEC shall mail by first-class mail, postage prepaid, a copy of the notice prescribed in Ordering Paragraph (3) herein to the electric competitive service providers and aggregators set out in Attachment A hereto. 8 (6) On or before October 24, 2003, CVEC shall file with the Clerk of the Commission at the address set forth above proof of notice and service as required in Ordering Paragraphs (3), (4), and (5) herein. (7) On or before October 24, 2003, any interested person wishing to participate as a respondent in this proceeding shall file an original and fifteen (15) copies of a notice of participation with the Clerk of the State Corporation Commission, c/o Document Control Center, P. O. Box 2118, Richmond, Virginia 23218-2118, and shall simultaneously serve a copy of the notice of participation on the President and Chief Executive Officer of the Cooperative at the address set forth in Ordering Paragraph (2) herein. Pursuant to Rule 5 VAC 5-20-80 of the Commission's Rules of Practice and Procedure, any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a statement of the specific action sought to the extent then known; and (iii) the factual and legal basis for the action. Interested parties shall refer zn all of their filed papers to Case No. PUE-2003-00327. (8) On or before October 24, 2003, respondents may also file requests for hearing on CVEC's application and/or file comments on the application in accordance with Ordering Paragraph (9) below. Any request for hearing shall detail the reasons why the issues in the request for hearing cannot be 9 adequately addressed in written comments. If no sufficient request for hearing is received, a formal h~aring with oral testimony may not be held, and the Commission may make its decision on the application based upon the papers filed in this proceeding. (9) On or before October 24, 2003, any interested person wishing to comment on CVEC's application as a public witness, but not wishing to participate as a respondent pursuant to Ordering Paragraph (7) herein, shall file an original and fifteen (15 copies of such written comments with the Clerk of the Commission at the address set forth in Ordering Paragraph (7) herein and shall refer to Case No. PUE-2003-00327. A copy of such comments shall be mailed or hand-delivered to the President and Chief Executive Officer of CVEC at the address set ouE in Ordering Paragraph (2) herein on or before October 24, 2003. (10) Respondents or public witnesses desiring to submit comments electronically may do so by following the instructions available an the Commission's website: http://www.state.va.us/scc/caseinfo.htm.. (11) On or before November 12, 2003, the Commission Staff shall review the application and file a report with the Commission presenting its findings and recommendations and shall 10 serve a copy of said report on the Cooperative and upon all parties to the proceeding. (12) On or before November 26, 2003, any respondent may file an original and fifteen (15) copies of its response to the Staff report and shall on or before November 26, 2003, serve a copy of the same upon CVEC, the Staff, and all parties of record. Service upon the Staff shall be directed to Sherry H. Bridewell, Senior Counsel, Office of General Counsel, State Corporation Commission, P. O. Box 1197, Richmond, Virginia 23218. (13) On or before December 9, 2003, CVEC shall file with the Clerk of the Commission an ormginal and fifteen (15) copies of its response to the Staff report and to the comments and responses heretofore filed herein, and shall on or before December 9, 2003, serve a copy of the same upon the Staff and all parties of record. (14) CVEC shall respond to written interrogatories and requests for the production of documents within seven (7) business days after receipt of the same. Except as modified above, discovery shall be in accordance with Part IV of the Commission's Rules of Practice and Procedure. AN ATTESTED COPY hereof shall be sent by the Clerk of the Commission to: Howard L. Scarboro, President and Chief Executive Officer, Central Virginia Electric Cooperative, Post 11 Office Box 247, Lovingston, Virginia 22949; C. Meade Browder, Jr., Senior Assistant Attorney General, Division of Consumer Counsel, Office of the Attorney General, 900 East Main Street, Second Floor, Richmond, Virginia 23219; and the Commission's Office of General Counsel and Divisions of Energy Regulation and Economics and Finance. 12 Mark S. Kumm Pepco Energy Services, Inc. 1300 North 17th St., Suite 1600 Arlington, VA 22209 Thomas J. Butler Dominion Retail, Inc. 625 Liberty Ave. Pittsburgh, PA 15222 ATTACHMENT A Laura Shaw Washington Gas Energy Services, Inc. 13865 Sunrise Valley Hemdon, Virginia 20171-3401 Meg Bnmson Bollinger Energy Corporation 2833 O'Donnell Street Baltimore, MD 21224 Alyssa Weinberger Director of Regulatory Affairs _~merada Hess Corporation One Hess Plaza Woodbridge, NJ 07095 Dr. John H. Mason Energy Window, Inc. 4750 Walnut, Suite 106 Boulder, CO 80301 Charles F, Dalphon NOVEC Energy Solutions, Inc. 10323 Lomond Drive Manassas, Virginia 20108-0875 Kathleen A. Gaston Virginia Energy Consortium 3504 Northridge Drive Baltimore, MD 21208 Mitch King Old Mill Power Co. 103 Shale Place Charlottesville, Virginia 22902-6402 Marc A. Hanks Select Energy, Inc. 107 Selden Street Berlin, CT 06037-1616 John E. Greenhalgh New Era Energy, Inc. 1340-1272 N. Great Neck Rd., #103 VA Beach, VA 23454-2230 Eric Matheson Constellation NewEnergy, Inc. 2 Penn Center 1500 JFK Blvd., Suite 222 Philadelphia, PA 19102 Frarm G. Francis AOBA Alliance, Inc. 1050 17t~ St. N.W. Suite 300 Washington, D.C. 20036 Teresa Walker Tiger Natural Gas, Inc. 1-G West 41st Sand Springs, OK 74063 Gordon Pozza Metromedia Energy, Inc. 6 Industrial Way Eatontown, NJ 07724 Christopher Waldron CAN Energy, Inc. 7926 Jones Branch Drive, Suite 630 McLean, VA 22102 Dr. Ransome Owan Washington Gas Services, Inc. 13865 Sunrise Valley Herndon, VA 20171-3401 John M. Dosker Stand Energy Corporation Building 3, Suite 110 1077 Celestial Street Cincinnati, OH 45202-1629 Matthew S. Dutzman Director, Business Development UGI Energy Services, Inc. 1100 Berkshire Boulevard, Ste. 305 Wyomissing, PA 19610 August 12, 2003 COUNTY OF ALBEMARLE Depar~merlt of Planning & Community Development 401 Mclntire Road, Room 218 Charlottesville, Virginia 22902-4596 (434) 296 - 5823 Fax (434) 972 ' 4012 Charlotte Shelton -P O Box 210 North Garden, VA 22959 RE: SP-03-42 Vintage Virginia Apples, LLC (Sign ~49); Tax Map 87, Parcel 9 Dear Ms. Shelton: The Albemarle County Planning Commission, at its meeting on August 5, 2003, by a vote of 4:0, recommended approval of the above-noted petition to the Board of Supervisors. Please note that this approval is subject to the following conditions: 1. A Virginia Department of Transportation entrance permit for a pdvate entrance shall be obtained for this use. 2. Guardrails shall be installed to the satisfaction of the Department of Engineering and Public Works on Rural Ridge Lane where it crosses the dam. 3. The applicant shall submit a revised sketch plan that: a. Includes the following note: "The total retail sales area in the farm sales structure shall not exceed fifteen hundred (1,500) square feet: At all times, at least fifty (50) percent of the retail sales area inside the farm sales structure shall be agricultural or horticultural produce or merchandise produced on the premises. The remaining fifty (50) percent area may be companion items that are not produced on the premises, but are intended to be used with the agricultural or horticultural produce which is produced on the farm. Displays outside the farm sales structure shall be limited to agricultural and horticultural produce only." b. Clearly indicates the limits of the sales area. 4. Retail sales shall be conducted only within the sales area depicted on the revised sketch plan. Please be advised that the Albemarle County Board of SuperVisors will review this petition and receive public comment at their meeting on September 10, 2003. Any new or additional information regarding your application must be submitted to the Clerk of the Board of Supervisors at least seven days prior to your scheduled hearing date. The Commission, also by a vote of 4:0, approved your request to waive the preliminary site plan requirement, as permitted in Section 5.1.35[c] of the Zoning Ordinance and approved a waiver of the 10-foot parking setback required by Section 5.1.35(d) of the Zoning Ordinance. If you should h ave any questions or comments regarding the above noted action, please do not hesitate to contact me (434) 296-5823. C/Scott Clark Planner sc/jcl Cc: Ella Carey Jack Kelsey Vintage Virginia Apples, LLC Amelia McCulley Steve AIIshouse Staff Contact: Planning Commission: Board of Supervisors: Scott Clark August 5, 2003 September 10, 2003 SP 03-042 Vintage Virginia Apples APPLICANT'S PROPOSAL The applicant is requesting a special use permit for on-site produce sales at an orchard growing a large variety of apples, peaches, and other fi'uits, in accordance with section 1022.2.45 of the Zoning Ordinance, which permits farm sales operations. LOCATION AND DESCRIPTION OF PROPERTY Request for special use permit to allow on-site produce sales at an orchard in accordance with Section 10.2.2.45 of the Zoning Ordinance which allows for farm sales. The property, described as Tax Map 87 Parcel 9, contains 78:586 acres, and is zoned RA, Rural Areas. The proposal is located on Monacan Trail Road [US 29], approximately 0.8 miles from the intersection of US 29 and Route 692, in.the Samuel Miller Magisterial District This site lies within the Entrance Corridor, but the submittal indicates that no new structures are proposed, and it appears that the use will not change the appearance of the site as viewed from the EC. Therefore, ARB review will not be required. PLANNING AND ZONING HISTORY SP 1997-020 requested permission to construct a wireless communicatiOns tower on this property, but was withdrawn by its applicant. The current applicant applied for a.wayside stand (SDP 01-104) on this same site in 2001, but review of that application was placed on. hold. This application wOUld allow for a similar use with a larger sales area and a wider variety of items sold. COMPREHENSIVE PLAN The property is zoned RA Rural Areas. The Comprehensive Plan designates this property as Rural Area. The current Comprehensive Plan designates agriculture as a priority land use in.these areas; this uSe would support local agricultural production. APPLICANT'S JUSTIFICATION FOR THE REQUEST The apphcant states that this use will support the orchard operation with little impact on the surrounding area, and will proVide locally-grown prOduce to the community. RECOMMENDATION Stat'f recommends approval of SP 03-042 with conditions, and recommends approval of the applicant's request for waiver of the preliminary site plan requirement as permitted in section 5.1.35 Ici of the Zoning Ordinance. STAFF COMMENT Staff will address each provision of Section 31.2.4.1 of the Zoning Ordinance below: The Board of Supervisors hereby reserves unto itself the right to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued upon a finding by the Board of Supervisors that such use will not be of substantial detriment to adjacent property, The sales area is a minimum of 400 feet from'any adjoining property line, and is very small in scale. Detrimental impacts to adjacent property are not expected. that the character of the district will not be changed thereby, This use will help to make the applicant's orchard economically viable, which will in turn help to maintain the rural character of the district. and that such use will be in harmony with the purpose and intent of this ordinance, This use supports the County's intention to protect agricultural land. with the uses permitted by right in the district, This use is directly related to the agricultural activities permitted by right in the district. with additional regulations provided in Section 5. 0 of this ordinance, 5.1.35 FARM SALES a. One (1)farm sales structure may be established per farm. In addition to displays and sales of agricultural or horticultural produce or merchandise which is produced on the farm, it may include companion items not produCed on the premises, but intended to be used with the agricultural or horticultural produce which is produced on the farm. The farm sales structure shall not be established until the agricultural or horticultural produce growing area has been established and is in production. Such growing area shall be reestablished on an annual basis. Sales are to occur in one building, the barn indicated on Attachment E. The orchard is already established. b. The total retail sales area in the farm sales structure shall not exceed .fifteen hundred (1,500) square feet. Greenhouses shall not be counted as part of the total retail sales area, unless one is designated as the farm sales structure. At all times, at least fifty (50) percent of the retail sales area inside the farm sales structure shall be agricultural or horticultural produce or merchandise produced on the premises. The remaining fifty (50)percentarea may be companion items. Displays outside the farm sales structure shall be limited to agricultural and horticultural produce only. 2 The barn and open breezeway that will be used for the sales area total 1,440 square feet (see Attachment F). c. A preliminary schematic plan in accordance with section 32.4.1 shall be submitted along with, and become a part of, the special use permit application. The plan shall include the area of the farm sales structure, parMng and entrance. The plan shall address, in particular, provisions for safe and convenient access from and to the public road, adequacy of delineation of parking, and general information regarding the exterior appearance of the proposed site. Based on the submitted information, the board of supervisors may then waive the requirement for a site development plan in a particular case, upon a finding that the requirement of a site development plan would not forward the purposes of this ordinance or otherwise serve the public interest. No such use shall be established without Virginia Department of Transportation approval of commercial access to tile site. The sketch plan is attached (Attachment E). Staff finds that requiring a site plan would not further the purposes of the Zoning Ordinance, given the scale and character of the use, and recommends that the Board waive the site-plan requirement. The Virginia Department of Transportation will require a permit for a "minimum standard commercial entrance" for this use. During the review of the wayside stand proposed for this site, VDOT commented that: "The existing entrance proposed for the above referenced site meets all criteria for a commercial entrance with the exception of the surface. The entrance landing should be paved for a minimum of 20' from the edge of pavement of route 29,with a 30' width ~ 20' and have 25' radii." Conditions have not changed significantly on this site since that time. While a full commercial entrance would be inappropriate for this small-scale use and this location, the scale of paving recommended in the previous review should not be overly expensive or destructive of rural character. Also, the speed and volume of traffic, on US 29 means that a paved commercial entrance will enhance safety for those entering the site. A condition requiring VDOT approval of the entrance is included below. d. The farm sales structure and parking area shall not be located closer than fifty (50)feet to any adjoining property not under the same ownership. The farm sales structure shall meet front yard setbacks for a primary structure. The parMng area shall not be located closer than ten (l O) feet~to any public or private street right-of-way. The applicant estimates that the barn is located 350 yards from US 29, and a minimum of 400 feet from the nearest parcel under other ownership. The barn containing the sales area is approximately 40 feet from the presumed 30-foot right-of-way of Rural Ridge Lane. The parking area is located adjacent to Rural Ridge Lane (a private road). However, this road only provides access to two homes beyond this Point, and at some points there is not enough space between the road and the existing barn to 3 provide the parking spaces, an aisle, and the lO-foot setback. The parking area is effectively a wide area of the existing gravel road, and visibility is not obstructed. Therefore staff recommends waiver of the 10-foot private street'setback. e. Farm machinery and equipment (except hand tools), buiMing materials, furniture or other like items, shall not be offered for sale. The applicant has not proposed to sell such equipment or furniture. f All farm sales structures shall meet ali applicable requirements of the Virginia Uniform Statewide Building Code. (Added 10-11-95) Farm buildings are exempt from regulation by the Virginia Uniform Statewide Building Code. The'sales~ area for this use meets the definition of "farm building" as "any structure, not used for residential purposes, located on a farm, which is utilized primarily for a) the storage, handling, production, display, sampling, or sale of agricultural, horticultural, floricultural, or silVicultural prodUcts produced on the farm .... " and with the public health, safety and general welfare. See comments regarding VDOT approval of the entrance above. Rural Ridge Lane is a narrow road that crosses the dam of a farm pOnd on the site on the way to the proposed sales area. The Engineering Department finds that guard rails will be necessary on both sides of the road to avoid hazards caused by traffic passing next to the pond and the dropoffon the face of the dam. However, these guard rails do not need to meet the full VDOT standard and can be designed more simply. The applicant can work with the Engineering Department to negotiate a design that is appropriate to this relatively small use. In order to safely separate the parking spaces from the buildings and orchards, the parking spaces shown on Attachment F should be delineated. This can be done with such simple materials as concrete parking stops, railroad ties, etc. SUMMARY Staffhas identified the following factors that are favorable to this request: 1. This use would further the CoUnty's goals of supporting local agriculture. 2. This horticultUral use provides an alternative to residential development of the property. Staffhas identified the following factor that is Unfavorable to this request: 1. The existing entrance does not meet the Virginia Department of TranspOrtation's standards. RECOMMENDED ACTION Staffrecommends approval of SP 03-042 with the following conditions: 4 1. A Virginia Department of Transportation entrance permit for a private entrance shall be obtained for this use. 2. Bumper blocks shall be provided in the parking spaces to delineate the parking spaces sincethe parking area has no curb and gutter. Bumper blOcks shall be constructed of a durable material such as concrete or treated timbers. Each bumper block shall be a minimum length of six (6) feet, a maximum height of five (5) inches, and shall be securely anchored into the ground in at least two (2) places. 3. Guard rails shall be installed to the satisfaction of the Department of Engineering and Public Works on Rural Ridge Lane where it crosses the dam. 4. The applicant shall submit a revised sketch plan that: a. Includes the following note: "The total retail sales area in the farm sales structure shall not exceed fifteen hundred (1,500) square feet. At all times, at least fifty (50) percent of the retail sales area inside the farm sales structure shall be agricultural or horticultural produce or merchandise produced on the premises. The remaining fifty (50) percent area may be companion items that are not produced on the premises, but 'are intended to be used with the agricultural or horticultural produce which is produced on the farm. Displays outside the farm sales structure shall be limited to agricultural and horticultural produce only." b. Clearly indicates the limits of the sales area. 5. Retail sales shall be conducted only within the sales area depicted on the revised sketch plan. Staff recommends approval of the applicant's request to waive the preliminary site plan requirement, as permitted in section 5.1.35[c] of the Zoning Ordinance. Staff also recommends approval of a waiver of the 1 O-foot parking setback required by 5.1.35(d). ATTACHMENTS A. Location Map B. Site Map C. Applicant's Statement from Application D. Plat of Parcel 87-9 E. Sketch Plan of Orchard F. Detail of SaleS Area Attachment A GAP RD ~ ..... "~~. ATTACHMENT B ATTACHMENT Vintage Virginia Apples Farm Sales Application When our parents'retired in 1986, the Shelton family (Mr. and Mrs. E. P,. Shelton and their four children)bought a small farm at North Garden in Southern Albemarle County. This return to the land was a family .enterprise springing from the family's agricultural roots in Amherst County where our ancestors farmed for generations until moving to Charlottesville in 1961 necessitated selling the family farm. The 78 acres we bought seemed too large to let stand fallow and too small for many agricultural endeavors. Since we did not wish to develop it, having settled here in order to live in a rural agricultural area, planting fruit trees, especially varieties that are Seldom found in commerce seemed singularly suitable for an area once known for its extensive orchards. Thousands of Albemarle Pippins were once shipped from North Garden and Covesville, but the tree is hard to fred today, in spite of it being a singularly wonderfully flavored apple. The oppommity to revive interest in what was once a major staple in the American diet and the wide variety of cultivars that were once commonplace has stimulated our interest in this endeavor. It.has been gratifying to fred that this interest strikes a very responsive chord with a broad Spectrum of people and our endeavors have found support despite the limited or one may say- almost no advertising we have done. We have received some very nice notice in the local press and have had inquiries from much farther afield; Since most of our thousand trees have been planted in the last three to five years, production is just beginning to come on line. We have about fifty trees planted earlier that have produced crops for a couple of years and we have explored, ways to market them such as offerh3g gitt boxes, selling to local markets, processing and developing a website. It has become obvious to us that selling fruit on site at the farm will be necessary to support our horticultural efforts as we have more fruit trees starting to bear. Since we have so many different varieties (over 200 varieties of apples, some thirty varieties of peaches, as well as smaller numbers of plums, pears, cherries, quince and apricots) a pick your own operation that could be serVed by a Wayside Stand will not be practical. Therefore we are applying for this Farm Sales permit because the scope and nature of our enterprise now call for that measure. We believe that this endeavor will be in ~keeping with the spirit as well as the letter of the zoning ordinance (5.1.35). Our primary sales will be fxesh fruit that we produce supplemented with some locally produced fruit as market needs dictate. We have also begun a nursery because most of the 200 varietieS of apples and other fruits grafted, grown out and planted on the farm are seldom, available in commerce. Because we are oRen asked for a source, we have started offering these trees for sale. We are also often asked for. advice on culture, pruning and related trails. Therefore it seems logical to offer companion items such as tools, supplies and a few books and other items to support and enhance these endeavOrs. As our enterprise grows, we may choose to add appropriate additional companion items. Since many apples that come from the tree are less than perfect, we will produce and sell cider in season and related produce such as apple butter and fruit related condiments. We expect agricultural items to well exceed the 50% stipulation of section b of 5.1.35. We believe that our existing physical situation will meet the requirements set out in section 5.1.35. Our existing barn is well off U.S. Route 29, situated about 350 yards from that highway and reached by a regularly maintained hard gravel surfaced road that has been in continual use for over 15 years. The barn is situated amidst fields and orchard 9 and is at Significant distances from neighboring Properties. It is over 200 feet from the property line of Parcel 87-39 which we alsO Own and over 400 feet from the parcel beyond that. On the southern side, it is over 300 yards to the nearest adjacent property. There is ample room for parking at the barn, with spaCe for 15 or 20 ears. The attached conceptual schematic plan designates ten contiguous places which should certainly exceed anything necessary at any one time. We respectfully request that a site development plan be waived. We are a stand alone enterprise so traffic should be scattered and spread over the hours of operation rather than concentrated. One or two employees should be sufficient for the trade we anticipate, with perhaps a supplementary helper at peak periods. We believe that our small business is interesting and important in developing a sustainable agricultural enterprise in Albemarle County that is in keeping with the history and spirit of the rural district in which we lie. Since we are situated on a major public roadway that has ample site clearance (we have had this reviewed in the past by YDOT), public safety will not be compromised by this Farm Sales site. Rather, we will be able to offer our local community and visitors a unique product_in the rural setting from which it springs and an appreciation for preserving our culinary and agricultural heritage. We will welcome any questions the department or various boards may have. Thank you very much for reviewing this application. /- ~? COUNTY OF ALBEMARLE Departmer~t of Planning & Community Development 401 M¢lntire Road, Room 218 Charlottesville, Virginia 22902-4596 (434) 296 - 5823 Fax (434) 972 - 4012 August12,2003 Rick Ovenshire 5930 Covesville Store Road Covesville, VA 22931 RE: SP-03-43 The Covesville StOre (Sign ~52) and SP-03-51 The Covesville Gift, Craft & Antique Store (Sign #52);.Tax Map 109, Parcel 7E Dear Mr. Ovenshire: The Albemarle County Planning Commission, at its meeting on August 5, 2003, by a vote of 4:0, recommended approval of the above.noted petitions to the Board of Supervisors. Please be advised that the Albemarle County Board of Supervisors will review this petition and receive public comment at their meeting on September 10, 2003. Any new or additional information regarding your application must be submitted to the Clerk of the Board of Supervisors at least seven days prior to your scheduled hearing date. If you should have any questions or comments regarding the above noted action, please do not hesitate to contact me (434) 296-5823. Sincerely, Steven Biel Planner Cc: Ella Carey Amelia McCulley Jack Kelsey Steve AIIshouse STAFF PERSON: PLAN N lNG COMMISSION: BOARD OF SUPERVISORS: Steven Biel August 5, 2003 September 10, 2003 SP 2003-043 The Covesville Store SP 2003-051 The Covesville Gift, Craft & Antique Store Applicant's Proposal: The applicants are requesting approval ora special use permit to allow for a country store and a gift, craft, and antique store to operate in the existing Covesville Store that has been closed since 1994 (Attachment A). The applicant's are proposing to reopen the store as a country store with an emphasis on antiques~ art, jewelry, and gifts. The store would also sell traditional "Made in Virginia" 'foods as well as traditional country store items such as milk, bread, butter, and cheese. Hours of operation would tentatively be 11:00 a.m. to 8:00 p.m., seven days a week. At this time these hours are not definite, and the applicant's have expressed a desire to experiment with the hours during the first month of operation to determine the optimal business hours. The Covesville Store, also known as the Johnson Store, is a two-story building with a basement and attic that was built in the 1910s..There is a two-bedroom apartment in a portion of the second floor in which the applicant's will reside. There is approximately 5,300 sq. ft. of finished area, not including the basement and attic. Of the 5,300 sq. ft., 3,999 sq. ft. would be used as retail: The following is the breakdown of square footage for the proposed uses: Main Floor Antique Furniture: 1,517 sq. ft. Gifts, Crafts, & Antiques: 1,297 sq. ft. Country Store: 375 sq. ft. Second Floor Gifts, Crafts, & Antiques: 810 sq. ft. The property also contains the Covesville Post Office, which began operation from the Covesville Store in the 1940s and relocated to a trailer approximately 70 feet to the east of the store. For tracking purposes, a special use permit number has been assigned to each use, but this report will review both special use permit requests as one proposal, However, each special use permit request must be acted on separately. Petitions: Request for special use permit to allow a country store in an existing structure, in accordance with Section 10.2.2(22) of the Zoning Ordinance that allows for country stores. The property, described as Tax Map 109, Parcel 7E, contains 1.03 acres, and is zoned PA, Rural Areas and EC, Entrance Corridor Overlay District (Attachment B). The proposal is located at 5930 Covesville Store Road (Route 841 ), approximately 0.5 miles south of the Route 29/805 intersection, in the Samuel Miller Magisterial District. The Comprehensive Plan designates this property as Rural Areas in Rural Area 3 and Entrance Corridor. Request for special use permit to allow a gift, craft, and antique store in an existing structure, in accordance with Section. 10.2.2(36) of the Zoning Ordinance that allows for The Covesville Store.doc 1 7237/03 .[ gift, craft, and antique shops. The property, described as Tax Map 109, Parcel 7E, contains 1.03 acres, and is zoned RA, Rural Areas and EC, Entrance. Corridor Overlay District. The proposal is located at 5930 Covesville Store Road(Route 841), apprOximately 0.5 miles south of the Route 29/805 intersection, in the Samuel Miller Magisterial District. The Comprehensive Plan designates this property as Rural Areas in Rural Area 3 and Entrance Corridor. Character of the Area: The surreunding area can be described as consisting of scattered residential lots, pastureland, and wooded areas (Attachment C). The appliCant's preperty is located on Covesville Store Road, which isa section of the old Route 29 roadbed and is an approximately 1,000-foot long section that dead-ends at each' end. Plannin.q and Zoninfl History: In early 2001, a special use permit application was submitted to allow the existing structure to be used for the operation of an antique store. Considerable renovations were performed on the existing structure; however, the application was withdrawn before proceeding to the Planning Commission. The current ownere purchased the property in December, 2002. They operate a home business from their apartment on the second floor of the store. The County has approved a Home Occupation, Class A permit for the home business. A zoning variance was approved on Apdl 1, 2003 (VA 2003-002) to allow the reduction of the required lot size (from 4.13 acres to 1.03 acres) to permit the post office, the upstaire dwelling, and the proposed commercial use on the 1.03-acre parcel. Comprehensive Plan: The Comprehensive Plan identifies this site and surrounding area as being located in the Rural Areas. The Historic Resources section of the Comprehensive Plan encourages adaptive reuse of historic buildings. The Albemarle County Historic Preservation Committee has drafted a position statement on Albemarle County's historic country stores. In it, they make recommendations for the protection of country stores - a category of historic resources located in the County. They state, "These once vibrant structures are still a potent symbol of a rural way of life and are a significant part of our shared heritage." Staff is also drafting recommendations for the Rural Areas section of the Comprehensive Plan regarding the adaptive reuse of historic structures in crossroads communities. RECOMMENDATION: Staff has reviewed this request for compliance with the provisions of Section 31.2.4.1 of the Zoning Ordinance and recommends approval of SP 2003-043 and SP 2003-051. STAFF COMMENT: Staff will address each provision of Section 31.2.4.1 of the Zoning Ordinance: The Board of SupervisOrs hereby reserves unto itself the ri.qht to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued upon a finding by the Board of Supervisors that such use will not be of substantial detriment to adjacent propertY. This proposal would not be a substantial detriment to adjacent properties. The closest residence to the east is approximately 250 feet on Parcel 7D. Also located on Parcel 7D The Covesville Store.doc 7237/03 is the concrete/stone foundation of the cider warehouse that was built arou nd 1910. The residence was built in 1900. The closest residence to the west is approximately 550 feet from the Covesville Store and was built in 1930. The proposed parking shown on the sketch plan locates the parking behind the post office and would not be visible from the nearest residence to the east (house is screened by the cider warehOuse). Staff believes these residences are part of the history of the immediate surrounding area and would not be. adversely affected by this proposal. A commercial operation, which has provided a service to the surrounding Covesville community, has existed at this site since the 1910s and has not had an adverse impact on the adjacent properties. The Covesville Store'contributes to the defining character of the Covesville community. that the character of the district will not be changed thereb¥~ There are three stores in Covesville that have been surveyed as part of the "Historic Architectural Survey of Albemarle County Villages" in 1995. The following information is included on the survey form: "One of three extant store buildings in Covesville, this store was built by the BoaZ family in the 1910s. It was bought by J. Duval Johnson in 1935 along with partner Benny Purvis. The CoVesville Post Office was run from the store beginning in the 1940s, With johnson serving as the' postmaster;' The store solda variety of merchandise and groceries and was well known locally for its smoked hams. The post office moved to the adjacent trailer in 1973. The store closed in 1994." The Village Survey findings recommended additional, intensive-level survey work for the store to determine whether it is eligible for listing on the National Register. This survey work has not been completed. The store has provided a service that is specifically utilized in the surrounding community. While the proposed gifts, crafts, and antiques store Would more than likely serve a clientele from outSid~ the immediate Covesville community, the COuntry store would be more likely to provide a service for the surrounding area. Furthermore, staff is encouraging adaptive reuses of historically significant structures in the crossroads communities of the County. It is the opinion of staff that the proposed uses would not result in any increased levels of activity on the site that would be inconsistent with the character of the area and 'the historic pattern of use on this property. and that such use will be in harmony with the purpose and intent of this ordinance, staff has reviewed the purpose and intent as contained in Chapter18, Sections 1.4, 1.5, and 1.6 of the Albemarle Zoning Ordinance. In the opinion of staff, the proposed uses would not conflict with the purpose and intent as described in the Zoning Ordinance. with the uses permitted by right in the district, This use would not prevent by-right use of the adjacent properties. with additional requlations provided in Section 5.0 of this ordinance, Section 5.0 does not apply to country stores and gifts, craft, and antique stores. Thc CoveSvillc Store.doc 7237/03 3 and with the public health, safety and .qeneral welfare. The public health,' safety, and general welfare of the community is protected through the special use permit process, which assures that uses approved by special use permit are appropriate in the location requested: The DePartment of Building Code and Zoning Services and Department of Engineering have both reviewed this proposal. The Department of Building Code and Zoning Services has noted that a site plan addressing the standards in Sections 32.5 and 32.6 will be required. When the site plan is submitted, the applicant's may request a site plan waiver pursuant to Section 32.2.2. The Zoning Department has determined that a total of 19 parking spaces will be required (2 for the country store, 11 for the antique area, 4 for the furniture area, and 2 for the residence). The post office has 4 existing parking spaces. A site plan will be submitted addressing the design of the parking area, drainage, water quality, etc. The Department of Engineering had no significant comments other than the site meeting the applicable parking standards in Section 4.12. Specifically, the Department of Engineering has noted that the parking spaces shall be the minimum size and have the minimum aisle width. Also, parking and traffic should not block the concrete handicap accessible parking provided at the post office and provide the minimum aisle width through that area. This site is located on the U.S. 29 Entrance Corridor and has been reviewed by Architectural Review Board staff. The following comments .are offered, "Reestablishment of a store use in the. building is critical to maintaining the structure itself, and for maintaining the historic resource in the rural landscape." As there would be no changes to the exterior of the building and no new structures are proposed on the site, "the existing character of the site would be maintained. By allowing the proposed multiple uses, a historic resource would become useful again, and the County's historic preservation goals would be supported." A new septic system was installed sometime in 1999 for the country store, 2-bedroom apartment, and the post office. The Health Department gave approval for a septic permit in September of 2002. Subsequent conversations with the Health Department have vedfied that the septic area can aCcommodate the proposed uses as well as restrooms for employees for the proposed store. The septic system and reserve'area are located on the adjoining property to the rear (north). A septic easement plat has been recorded and is sufficient for the proposed use. The Virginia Department of Transportation had no concerns with the proposed store. SUMMARY: Staff has identified the following factors favorable to this application: The Covesville Store and post office are important to the Covesville community and to the County as a historiC and cultural resource. The country store would provide a service to the surrounding area. The Covesville Store has been a part of the community since the 1910s. Staff has not found any factors that are unfavorable to this request. The Covesville Store.doc 7237/03 RECOMMENDED ACTION: Based on the findings COntained in this staff report, staff recommends approval of SP 2003-043 and SP 2003-051 with no conditions. Attachments: A - Application and Sketch Plan B - LocatiOn .Map and Tax Map C - Aerial Map The Covesville Store.doc 7237/03 CoUnty of Albemarle o:- Department of Building Co'dc and Application for Special Use Per it ATTACHMENT A. Dam ~ I ; fids an amendment to an ~ng Spell Use Pe~it~ ~ Y~o Are you mbmit~ng n site development plan wiO~ ~ appli~on? ~ Yes. No i Owner of land ~^: ns~ca i. IDaytim¢?hone(Ll3LJ ) ~0V--'~-q~'0t~ Fax# l Applicant (who :s~hccontact [~rion rcprcscnung? Who is re. qu~line thc sp~:i"..l usc'?.): IAddress City Daytime Phone ( ) Fax # .E-mail State Zip __ Tax map and parcel i t~ q. 00 OO O0 ~ ~- ~ Physical Addresstirmiga~ ~ .o. Jo,--,,/e Location of property Oa~,:m~.in,er,:c,o.:.or~"~ L- o c ~'-LLe,~ ~..~:3~L~ 'Y3~ Does the owner of this property own (or have any ownership interest in) any abutting property? If yes. please list those tax map and parcel'numbers I',3 ~_, OFFICEUSE ONLY ~ O ~ Fc~ amount $ H~sto~: E1 Special Usc Permits: Receipt # /~)/--~ By: ~ Variances: Concurrcm rcvic'.; of Site Dcvclopmcnt Plan? ElYcs CINo 401 Mdntire Road -:' Charlottesville, NA 22902 ':- Voice: 296-5832 ':' Fax: 972-4126 ~ 'Section 31'.2.4. I of the Albem~'"~ County ZOning Ordinance states the,.. "The board of supervisors hereby reserves unto itself the right to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued upon a finding by the board of supervisors that such usc Will not 'be of substantial detriment to adjacent property, that the character of the district will not be changed thereby and that such use will be in harmony with ihc Purpose and intent of this ordinance, with the uses permitted by right in the district, with additional regulations provided in section 5.0 of this.ordinance, and with the public health, safety and general welfare. -~. .:~: The items which follow will be rewewed by the staff in their analysis of your request. Please complete this form and provide addifi&i'fi~iinformation 'which will assist the County in its review of your request. If you need assistance filling out these items, staff is available. What is the Comprehensive Plan designation for this property? How will the proposed special .use affect adjacent property? How will the proposed special use affect the character of the district surrounding thc property? How is the use in harmony with the purpose and intent of thc Zoning Ordinance?. How is the use in harmony with the uses permitted by right in the district? What additional regulations provided in Section 5.0 of the Zoning Ordinance apply to this use7 How will this usc promote thc public hcalth, safety, and general welfare of thc community? Describe your request '"'~etail and include all pertinent informr '~"n such as the numbers of persons involved in the use, operating hours, and any unique features of the use: S~ ~' .~XT' O. ¢~.e ~ Recorded'plat or boundary survey of the property requested for the rezoning. If there is no recorded plat or boundary survey, please provide legal description of the property and the Deed Book and page number or Plat Book and page number. Note: If you are requesting a special use permit ofily for a portion of the property, it needs' to be described or delineated on a copy of the plat or surveyed drawing. Ownership information - If ownership of the property is in the name of any type of legal entity.or organization including, but not limited to, the name of a corporation, partnership or association, or in the name of a trust,.or in a fictitious name, a document acceptable to the County .must be submitted certifying that the person signing below has the authority to do so. If the applicant is a contract purchaser, a document acceptable to the County must be submitted containing the owner's written consent to. the application; If the applicant is the agent of the owner, a doCumen.t acc.eptable to the County must be submitted that is evidence of the existence and scope of the agency. OPTIONAL ATTACHMENTS: Drawings or conceptual plans, if any. 4. Additional Information, if any. ~'~ I hereby certify that I own the subject property, or have the legal power to act on behalf of the owner in filing this' application. I also certify that the information provided is tree and accurate to the best of my /~~~r...~~wledge. r,~ Signature Printed ~m~ Date Daytime phone number' of Signatory Covesville Store ~ Special Use Permit Application 4/28/03 The Covesville Store has historically been a country store or retail establishment of one type or another. It has been a Virginia landmark for almost 100 years. Over the last 20-30 years the store has struggled to pay for its own basic maintenance until it reached the point, about 6 years ago, of serious disrepair. Within the last 5 years it was extensively-renovated/restored, board by board, to historical specification. Since it was not open to the public during this time, the zoning lapsed. The lady who restored the building died before she was able to open an antique Shop in the space.. Our goal is to reopen the store as a country store with special.emphasis on antiques~ art, jewelry, and gifts. We would also like to have a section of the store to sell traditional "Made in Virginia" foods and traditional -country store fare such as milk, butter, cheese, bread, gourmet foods etc. The overall theme will be old-fashioned value in an old.fashioned rural setting. Kind of like going back in time to a country store and seeing period antiques from earlier times along with some traditional country store food & gift' items. We have extensive experience in buying and selling antiques, art, and jewelry. The country store part would be a way to also involve people who don't necessarily like antiques etc. Many local townspeople have expressed an interest in helping us stock the country store part with home grown vegetables and farm productS. Our space would look a little like a farmer's market (in season), an antique store & an old- fashioned country store. The themes would change with each season for holidays etc. We believe the proposed special uses would only affect the character surrounding the property in positive ways. People seem to think that the store needs to be open to the community so that it can foster the local culture & pride. It could provide a positive environment for the community to gather, as it did throughout the decades. In turn, the community (and beyond), needs to support the building so that its continued preservation / maintenance can be economically justified. The Covesville Store is one of the most impressive structures of its type in this part of the country and now it is in the best condition that it has been in, in decades. We believe that it should be open to the community (and beyond) so this cycle of mutual support can begin, again. We believe that our proposed uses are in harmony with the purpose and intent of _ the zoning ordinance. People in the community seem to be very excited about it being a "clean", responsible and respectable storefront. At the same time, we have not heard a single caution or complaint in anticipation of our proposed uses. In other words, we believe that our proposed uses of this building will only enhance and will not hinder or hurt adjacent property or the character of the district. We believe that our proposed use of this building is in harmony With the uses permitt?d by right in the district. The uses harmonize with the historical & rural farming heritage of this area. After reading the regulations provided in section 5.0, we do nOt believe any additional regulations apply to our proposed uses. We believe that our proposed uses will promote the public health, safety, and general welfare of the community. Southern Albemarle County has limited shopping and recreational options. Our goal is to provide a forum where a person could come and look at interesting items, from antiques to art, from all price ranges. Many people will make purchases because the prices will be low & the value will be high. During the same visit, a customer could purchase some locally grown, organic vegetables and a fresh baked loaf of bread or other specialty food items. The setting & atmosphere will motivate people, at some level, to.want to take home a souvenir / memento to remind them of the experience. At the base level, our proposed uses could help supply wholesome activities / experiences and wholesome products.. It would also foster an increased sense of community involvement, cohesion & pride. The uses could also draw more respectable people to the area. It should increase the property values in the area & add a little extra to the average family incomes in our village. Also, if this building is being used for an active & wholesome business, "Downtown Covesville" will be less likely to fall prey to less positive elements that arc showing up elsewhere. Tax Map 108 · Parcel ZI J. D. E~ Louise R. Johnson D. B. 428,p. 492 D.B. 2.49, ~500(Plct) / iRON ~rax Mop 109' Parcel 91; 0.01 D.B. 5;54, p, 454 IRON BOUNDARY AND IRON Acres Total Tax Map t09. Parcel 7E 1.0189 Acres 'G Tax Map 109: Parcel 7D Mayo .T.'I~ Minnie K. Massie D.B. 247, p.44S D. B. 176.::p.228 :?: .'.~ :~..- :.-... ..,...-:.'., . . : :.-;~ :~..- - PHYSICAL SURVEY. OF EXHIBIT A .- USPS Portion.' of Site the Property shown on Ibis Plat c~n~ I~c3! Ine Wclls ~7 r ATTACHMENT ~0 x? ATTACHMENT C August 12, 2003 COUNTY OF ALBEMARLE Dcpartmcqt of Planning & Community Development 401 Mclntir¢ Road, Room 218 Charlottesville, Virginia 229024596 (434) 296 - 5823 Fax (434) 972 - 4012 .George Palmer 35 Old Farm Road Charlottesville, VA 22903 RE: SP-03,044 Bellair Animal Hospital (Sign #54); Tax Map 60, Parcels 25A and 25B Dear Mr. Palmer: The Albemarle County Planning Commission, at its meeting on August 5, 2003,.by a vote of 4:0, recommended approval of the above-noted petition to the Board of Supervisors. Please note that this approval is subject to the following conditions: 2. 3. 4. 5. The approved final concept plan/site plan shall be in substantial accord with the Conceptual Plan dated July 29, 2003 and special permit justification dated April 28, 2003; Any enlargement or expansion of the animal clinic use or structures, within the existing building or in a building addition, will require an amendment to this Special Permit (SP 2003-044); No overnight boarding use other than for those animals under medical care shall take place in the animal clinic; That portion of the existing building to be used for the clinic shall be soundproofed prior to commencement of the animal hospital use; A pedestrian path five (5) feet in width shall be constructed across the front of Parcels 25A and 25B in the area between the existing vehicular parking area and the public travelway, to a standard acceptable to the Departments of Planning and Engineering and Public Works (Department of Community Development), to be maintained by VDOT or by the applicant in the event the pathway can not be constructed to meet VDOT standards. In the event that existing power poles or other obstructions make it impossible to meet the acceptable standard; this standard may be modified in the interest of allowing installation of the path. Please be advised that the Albemarle County Board of Supervisors will review this petition and receive public comment at their meeting on September 10, 2003. Any new or additional information regarding your application must be submitted to the Clerk of the Board of Supervisors at least seven days prior to your scheduled hearing date. The Commission, also by a vote of 4:0, approved a waiver to allow the building to be located within 200 feet of a residential lot line. If you should have any questions or comments regarding the above noted action, please do not hesitate to contact me (434) 296-5823. Sincerely, Susan Thomas, AICP Senior Planner Cc: Ella Carey Jack Kelsey Amelia McCulley Steve AIIshouse STAFF PERSON: PLANNING COMMISSION DATE: BOARD OF SUPERVISORS ~DATE: SP 2003,044 BELLAIR ANIMAL HOSPITAL SUSAN THOMAS, AICP AUGUST5, 2003 SEPTEMBER 10, 2003 Applicant's Proposal: This special use permit request would allow a companion animal hospitml (small animal veterinary clinic) to occupy a portion of an.existing building located between Bellair Market and Piedmont.Equipment Company, on the north side of Ivy Road across from Bellair Subdivision. Because the existing building lies less than two hundred (200) feet from a residential prOperty line, a waiver from Section 5.1.11 of the Zoning Ordinance will also be required, (See Attachments.& B, C, and D) Petition for Special Use Permit: Request for special use permit to allow a companion animal veterinary hospital in acCOrdance with Section 22.2.2.5 of the Zoning Ordinance which allows for veterinary offices and hospitals. The property, described as Tax Map 60 Parcels 25A and 25B, contains approximately 1.7 acres, and is zoned C1, Commercial. The proposed veterinary office is located on Ivy Road (Route 250 West), approximately 1/10 mile west of the intersection of Ivy ROad and the 29/250 By- Pass, in the Samuel Miller Magisterial District. The Comprehensive Plan designates this property for Office Service in Neighborhood Seven. Character of the Area: This portion of Neighborhood Seven is best known for a series of historic estates occupied by institutional and residential uses to the west on Ivy Road, with office, residential, and institutional also present on Old Ivy Road to the east. On this site there currently are a tractor equipment company, a health care office and a gas station/country market: Recommendation: Staff believes that the proposed use is appropriate for the site, with conditions. The animal clinic increases the intensity, of activity on the site, and there is a need to better provide for the safety of pedestrians in an environment where there are numeroUs and very different uses operating simultaneously.' Staff is recommending that the adequacy of on-site infrastructure be improved to include a pedestrian pathWay along the public road frontage. Additionally, the building straddles the. property line between the Bellair Market and Piedmont Equipment parcels, and staff has recOmmended that the parcels be combined to avoid the need for cross parking and access easements Zoning and Subdivision History: The proposed animal hospital building was constructed in 1950, as a JOhn Deere equipment retail sales and service establishment. Zoning was B-l, Business, and Scenic Highway, and it changed to C-I, Commercial, with adoption of the 1980 Zoning Ordinance. The building to the west (currently Piedmont Equipment Company) originally was a John Deere distribution center. When the John Deere company vacated the western building, the retail sales and service business moved there and the middle building was converted to a retail/office use. SDP 87-009 Piedmont Center site plan. Withdrawn after zoning administrator determined that parking was adequate and site plan was not required. VA 87-11 Variance approved: allowed reduced setback for gas station canopy, off-street parking spaces, and free-standing business sign; increased height and square footage of free-standing business sign. Comprehensive Plan: The Comprehensive Plan designates this area for Office Service in Neighborhood Seven. ZOning is C-l, Commercial, and EC, Entrance Corridor. The intent of the C-1 district is: "to permit selected retail sales, service and public use establishments which are primarily oriented to central business concentrations. It is intended that C-1 district be established only within the urban area, community and villages in the comprehensive plan." Veterinary offices and hospitals are allowed in a C-1 district by special permit. The1996 Comprehensive Plan, Land Use Plan makes the following recommendations relevant to this request: Development plans along Route 250 West are to be sensitive to its status as an Entrance Corridor Roadway; No Community Service and/or Neighborhood Service uses are recommended because-the existing commercial services on Route 250 West and in the City adequately support the area and are easily accessible; Transportation Improvements include: Widen Route 250 West (Ivy Road) to four lanes. [This policy recommendation relates to that portion of the road lying east of the 29/250 By-pass, and is no longer supported by the City.] Provide bicycle facilities and walkways in conjunction with road improvements. - Utility Improvements include: Upgrades to the Meadowcreek Interceptor Locate a new fire and rescue station in this area to service Neighborhoods Six and Seven, the University and Ivy as response times require. The station should be funded and operated jointly by the City, County, and University. The. statiOn should be staffed by volunteers to the greatest extent possible. The Comprehensive Plan, Land Use Plan, sets forth several General Principles for Land use in Designated Development Areas which are relevant to this proposal and supported by it: · Accommodate new growth in the County within Development Areas. · Encourage greater utilization of land in designated Development Areas by achieving higher gross densities for residential and nOn-residential development than in the past. · Encourage infill development ofvacant lands and development ofunder~used areas within the designated Development Areas. · Discourage extensive linear style development along major roads. 2 · Plan for a system of transportation and community facilities and services that support and enhance the Development Areas. The Neighborhood Model Twelve principles of development are set forth in the Neighborh6od Model, which is an adopted part of the Comprehensive Plan. A staff analysis of the manner in which this development proposal addresses each principle is included below. Neighborhood Model principles most strongly reflected by this proposal are: Mixture of Uses - The site is characterized by a mixture of uses with considerable variety, a benefit to the neighborhood and the larger area. Neighborhood Centers -The Bell~ Market, one of the uses on the site, seems to be a center for the neighborhood. There is the potential for additional future uses in the unoccupied portions of the building to supplement the neighborhood center. Redevelopment ~ The new use in an existing building is a positive example of this Neighborhood Model principle. Clear Boundaries with the Rural Areas - The parcel is located at the northern edge .of the Neighborhood Seven, a porfion'ofthe Designated Development Area. This boundary is reinforced by the presence of the railroad to the north, forming a clear edge for the site. Buildings and Spaces of Human Scale - Buildings and spaces on this site are of human scale, and if other principles such as Relegated Parking and Neighborhood Friendly Streets and Paths were represented, this principle cOuld be achieved. Principles of the NeighbOrhood Model that are not strongly reflected on this site are: Pedestrian Orientation - PedeStrians are poorly accommodated on this site. There are no pathways traversing the site, nor are their sidewalks adjacent to the buildings for access inside. Staff is recommending that a pedestrian pathway be constructed along the public road frontage of the siteto improve this aspect of site development. Neighborhood Friendly Streets and Paths - This secti°n of Ivy Road. is very difficUlt from a vehicUlar and pedestrian standpoint. Its regional primary road fimction and intersections conflict with the parcel sizes and orientations along the corridor, and the proposed animal clinic USe cannot remedy that situation. Interconnected Streets and Transportation Networks - The fact that this property is "sandwiched" between Ivy Road and the railroad makes interconnections difficult. A pedestrian connection to the east and west apPears t° be one way to incorporate this principle on the site. Relegated Parking - Parking is located in front of and along both sides of the animal clinic building, with a small number of spaces located behind the west wing. Because this proposal is for a new use in an existing building there is little opportunity to incorporate this principle. Principles of the Neighborhood Model which do not apply to this site are: Site Planning that Respects Terrain - No new construction is intended with this special permit2 Mixture of Housing Types and AffOrdabili _ty- There is no housing currently on this site, and none is planned. Parks and Open Space - Since no new construction or rearrangement of uses on the site is planned as part of this proposal, there appears to be no opportunity to incorporate this principle. Analysis of the Special Use Permit as related to Section 31.2.4.1 of the Zoning Ordinance: The Board qf Supervisors hereby reserves unto itsel_f the right to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued ,upon a finding b¥ the Board of Supervisors that such use will not be qf substantial detriment to adiacent proper~_ , Staff has not identified any detriment to adjacent property that would result frOm the animal hospital use. The required soundproofing should address any noise impacts, and the fact that the slightly elevated raikoad right-of-way lies between this property and the adjacent Farmington property would further reduce noise. No residences are located in the portion of the Farmington development closest to this site, across the railroad that the character of the district will not be changed thereby, The activity associated with the proposed companion animal hospital is not expected to differ from the medical and other uses that share the building. and that such use will be in harmony with the purpose and intent of this ordinance, The proposed veterinary use will provide a service often associated with residential use in a location serving Neighborhood Six and Seven, and the western Rural Areas district. Its introduction further mixes uses on the site, one of the principles of the Neighborhood Model. with the uses permitted by right in the district, This should not impact any other uses in the district. Building Code and Zoning Services has determined that sufficient parking exists on the site, and the use of a separate access to the animal clinic portion of the building will help to avoid conflicts with other resident uses. with additional regulations provided in Section 5.0 qf this ordinance, Section 5.1.11 requires a 200 foot setback for soundprOofed confinements from any residential or agricultural lot line. Because the animal hospital use is proposed for an existing building, this set back cannot be met, and a waiver will be required. The relevant residential lot line lies beyond the railroad to the north, and thus no negative impacts are anticipated from the waiver. Section 5.1.11 also requires a separate entrance/eXit and fenced exercise Yard, both to be provided by the applicant. and with the public health, safety and general welfare. Staff doeS have concerns that the proposed animal hospital will further intensify activity on what is already a very busy commercial site characterized by several different kinds of uses, and thereby negatively impact the public health, safety and general welfare. Although mixed use is one of the principles of the Neighborhood Model, and a positive feature from the standpoint of providing goods and services close to residential areas on a primary road, there are disadvantages 4 to such a wide mixture of activities on a site that does not have the infi:astrucmre that would typically be required at this level of development. The equipment dealership may not be as compatible with its neighboring uses as it once was due to the fact that it mixes larger vehicles, often hauling tractors on trailers, with private vehicles patronizing the medical and other stores/businesses in the adjacent building, all through one rather complex access point. However, it is a legal non-conformity and thus is expected to cont'mue operating on the site. The Bellair Market has become a highly pOpular source for gasoline and carry-out items, and attracts lunch-time business from the nearby NatiOnal Legal Research Center. It is likely that it could attract additional pedestrian patrons as the historic properties to the west develop in a residential pattern. Finally, Ivy Road has become a complex thoroughfare, on which volume, turning movements, and access/egress.on Ivy Road have become on-going and problematic transportation issues. Staff's primary concern relates to the safety of pedestrians on the 'site. The absence of sidewalks adjacent to ~the. buildings or along the public frontage forces those traversing the site to fred their own way.across, which may lead to conflicts with vehicles entering, exiting and parking in the same area. There appears little opportunity to create a pedestrian network around the building because this would erode parking spaces and travelway dimensions, but construction of a pathway along the public road frontage would at least organize and separate pedestrian and vehicular travel. Although there appears to be sufficient width to locate this path within the public road right-of-way, the presence of utility poles, landscaping and other partial obstructions may make it impossible to meet VDOT standards in path construction. Therefore, maintenance of the path may need to remain a responsibility of the applicant. If the special permit is approved, these issues can be resolved at the time of concept plan amendment. $1JI~IMARY: Staff has identified the following factors which are favorable to this request: 1. The building is existing; 2. Parking is adequate, and a separate entrance and exercise area can be created for the animal hospital use; 3. This proposal reflects several principles of the Neighborhood Model, among them Mixture of Uses, Redevelopment, and Neighborhood Centers. The following factors are not favorable to this request: 1. The proposed use increases the level of activity on a site which does not have the supporting infrastructure which would normally be required to support such a mixture Of uses, leading to staffconcems about vehicular circulatiOn and pedestrian safety. RECOMMENDATION: Staff finds that no adverse impacts to other uses on the site or adjacent properties will occur as a result of the animal clinic use. The clinic may benefit current and futures residents along the corridor, and within the larger area. Staff does have concerns about potential pedestrian and vehicular conflicts in this active area, and thus recommends that the applicant construct a pedestrian pathway across the front of the site. Staff recommends approval of SP 2003-044, with the following conditions: 1. The approved final concept plan/site plan shall be in substantial accord with the Conceptual Plan dated July 29,2003 and special permit justification dated April 28, 2003; o Any enlargement or expansion of the animalclinic use or structures, within the existing building or in a building addition, will require an amendment to this Special Permit (SP 2003-044); No overnight boarding use other than for those animals under medical care shall take place in the animal clinic; That portion of the existing building to be used for the clinic shall be soundproofed prior to commencement of the animal hospital use; Parcels 25A and 25B shall be consolidated into one parcel; A pedestrian path five (5) feet in width shall be constructed across the front of Parcels 25A and 25B in the area between the existing vehicular parking area and the public travelway, to a standard acceptable to the Departments of Planning and Engineering and Public Works (Department of Community Development), to be maintained by VDOT or by the applicant in the event the pathway can not be constructed to meet VDOT standards. In the event that existing power poles or other obstructions make it impossible to meet the acceptable standard, this standard'may be modified in the interest of allowing installation of the path. Attachments: A - Area Map B - Applicant's COncept Plan C - Applicant's JustificatiOn D - Section 5.1.11, Zoning Ordinance 6 "i ~AMUEL MILLE-E MAGI.~TF_.~.IAL DISTRICT CURRENT USE-.: COMMEP. CIAL. ZONING: OWNE-~: PIE. D~ONT TP. ACTOP. COMPANY TOPOGP. APHY: P. OGF_.P.P. AY ~ A-c...qOC ~ URBAN TOPO BOUNDAIAY .~UI~,VEY: ~OGE. P-. 12AY ~ AC, GOO This proJeCt docs ncc DARK. lNG / ATTACHMENT B ( APp li on for Special Use Permit Please See the List at the bottom of page 4 for the Appropria e Fee ATTACHMENT C (staffwill assist you with this item) Project Name (how should we refer to thi~ application?): (~ I~'> AIQ :, ,"~¢L/ ~[,~/ .,.' - ' -~'- " C-I '-- ' . . * .',~' "v¢¢~'~ (*staffwfll ~sist you ~th this item) ~mk~r of acres to ke co~red 5~ Speciil gs~ Pemit (~ ~ ~aon it ~mt k d~lin~a~d ou a plat): Is t~s an amendment to an e~sang Speci~ gse Permit? ~c you sukmi~n~ · pre~mina~ site plan ~th this applica~on? Contact Person (w~o should wc call/~tc concerns8 this I~Ojcct?): Ad.ss 3~ ~ '~ ~P City ~ '~, //~ State ~' Zip Da~e Phone (~q) ~7- ? LLo . F~ ~7~-~36 E-m~l ~ cpj Z2'~ ~~. Ad&e~ J~ O~ F~ ~ City ~ tv,//~ Smtc ~ Zip Ad.ess ~~ ~' ~OV~ Cie Smtc Zip, Daytime Phone ( ) Fax # E-mail Taxmapandparcel: ~"/~/v/O~:L lq,flee. ~ f ~-'~r cT Physical Street Address (if assigned): ~es ~e owner offs pro~ om (or ~ve ~y o~ip ~ter~t ~) ~y abnt~g pm~? if yes, plm~ list ~ose ~ map ~d ~el nmb~s ~s~: ~ Sp~klUsc P~: Concerti ~dcw of Si~ ~wl~m~t PI~? ~ YES ~ NO County of Albemarle Department of Building Code & Zoning Services 401 McIntire Road Charlottesville, VA 22902 Voice: (434) 296-5832 Fax: (434) 972-4126 12/1/02 Page 1 of 4 . 9 Section 31.2.4.1 of the Albemarle County Zoning Ordinance states that, "The board of supervisors hereby reserves unto itself the right to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued upon a. finding by the board of supervisors that such use will not be of substantial detriment to adjacent property, that the character of the district will nOt be changed thereby and that such use will be in harmony with the purpose and intent of this ordinance, with the uses permitted by right in the district, with additional regulations provided in section 5.0 of this ordinance, and with the public health, safety and general welfare." The items that follow will be reviewed by the staff in their analysis of your request. Please complete this form and provide additional information which will assist the County in !ts review of you request. If you need assistance filling out these items, staff is available. What is the ComprehensivePlan designation for this property? How will the proposed special use affect adjacent property? How will the proposed special use affect the character of the district(s) surrounding the property? How is the use in harmony with the purpose and intent of the Zoning Ordinance? How is the use in harmony with the uses permitted by right in the district? What additional regulations provided in Section 5.0 of the Zoning Ordinance apply to this use? How will this use promote the public health, safety, and general welfare of the community? 12/1/02 Page 2 of 4 10 -~scribe your r~equest in detail and include all pertinent information such as tl!e nu~mber of persons inVolved in the use, °~emting h0urS, and any unique features of the use:. . . _5",.~ //. ,~'~ ,,~a. , . ,/ ~" " cf ~ ~' ~ ~- .._ . _/, <t~r/= e ~-~ )_ . , t '-"/ . '' ' _.. / '- ' / .... ATTACHMENTS REQUIRED - provide two (2) copies of each 1. Recorded plat or boUndary survey of the property requested for the rezoning. If there is no recorded plat or boundary survey, please provide legal description of the property and the Deed Book and page humber or plat BoOk ~nd page nUmber. ' NOte: If you are requesting a rezoning for a portion of the property, it needs to be described or delineation on a copy of the plat or surveyed drawing. 2, Ownership information- rf ownership of the property is in the name of any type of legal entity or organization including, but not limited to, the name ora corporation, parmemhip or association, or in the name ora trust, or in a fictitious name, a document acceptable to the County must be submitted certifying that the person signing below has the authority to do so. If the applicant is a contract purchaser, a document acceptable to the County must be submitted' containing the owner's-written consent to the application. If the applicant is the agent of the owner, a document acceptable to the County muSt be submitted that is evidence 0fthe existence and Scope of the agency, OPTIONAL ATTACHMENTS: [~ 3. Drawings or conceptual plans, if any. Q 4. Additional Information, if any. Print Name Owner/Applicant Must Read and Sign I hereby certify that I own the subject property, or have the legal power to act on ~behalf of the owner in filing this application. I also certify that the information provided on this application and accompanying information is accurate, tree, and correct to the b~owledge.. ~ ~ ~ ent Dad / Daytime phone number of Signatory 12/1/02 Page 3 of 4 ~.l.o~ fiRE, AMBULANCE, RESCUE SQUAD STATION (VOLUNTEER) Each fire, ambulance or rescue squad station (volunteer) shall be subject to th ATTACHMENT D a. Any such use seeking public funding shall be reviewed by the commissi¢ ................... section 31.2.5. Specifically, the commission shall f'md that the proposed service area is not already adequately served by another such facility. In addition, the commission shall consider: growth potential for the area; relationship to centers of population and to high-value property concentrations; and access to and adequacy of public roads in the area for such use. The commission may request recommendation, from the Albemarle County f'n'e official and other appropriate agencies in its review; b. Subordinate uses and fund-raising activities such as bingo, raffles and auctions may be conducted outdoors during daylight hours and shall be conducted in an enclosed building at all other times. (Amended 6-14-00; 10-3-01) (§ 5.1.09, 12-10-80, 6-14-00; Ord. 01-18(6), 10-3-01) 5.1.10 JUNK YARDS All storage and operational areas shall be enclosed by a solid, light-tight, sightly fence not less than eight (8) feet in height or alternative screening and/or fencing satisfactory to the commission; b. Storage yards and access to public roads shall be maintained in a dust-free surface. S.1.11 COMMERCIAL KENNEL, VETERINARY SERVICE, OFFICE OR HOSPITAL, ANIMAL HOSPITAL, ANIMAL SHELTER (Amended 6-14-00) Each commercial kennel, veterinary and animal hospital shall be subject to the following: Each commercial kennel, veterinary service, office or hospital, animal hospital and animal shelter shall be subject to the following: a. Except where animals are confined in soundproofed, air-conditioned buildings, no structure or area occupied by animals shall be closer than five hundred (500) feet to any agricultural or residential lot line. For non-soundproofed animal confinements, an external solid fence not less than six (6) feet in height shall be located within fifty (50) feet of the animal confinement and shall be composed of concrete block, brick, or other material approved by the zoning administrator; (Amended 11-15-89) For soundproofed confinements, no such structure shall be located closer than two hundred (200) feet to any agricultural or residential lot line. For soundproofed COnfinements, noise measured at the nearest agricultural or residential property line shall not exceed fifty-five (55) decibels; (Amended 11-15-89; 6-14-00) c. In all cases, animals shall be conf'med m an enclosed building from 10:00 p.m. to 6:00 a.m. (Amended I 1-15-89; 6-14-00) In areas where such uses may be in proximity to other uses involving intensive activity such as shopping centers or other urban density locations, special attention is required to protect the public health and welfare. To these ends the commission and board may require among other things: (Amended 1 I- 15-89) -Separate building enu'ance and exit to avoid animal conflicts; ALBEMARLE COUNTY CODE -Area for outside exercise to be exclusive from access by the public by fencing or other means. (Added I l- 15-89) S.1.12 PUBLIC UTILITY STRUCTURES/USES ao The proposed use at the location selected will not endanger the health and safety of workers and/or residents in the community and will not impair or prove detrimental to neighboring properties or the development of same; 12 COUNTY OF ALBEMARLE Departraerlt of Planning & Community Development 401 Mclntire Road, Room 218 Charlottesville, Virginia 22902-4596 (434) 296 - 5.823 Fax (434) 972 - 4012 August !2, 2003 Paul Tschiderer P O Box 7603 Charlottesville, VA 22906 RE: SP-03-46 Suntrust Pantops Branch (Sign #69 & 72); Tax. Map 78, Parcel 73A Dear Mr. Tschiderer: The Albemarle County Planning Commission, at its meeting on August 5, 2003, by a vote of 4:0, recommended approval of the above-noted petition to the Board of Supervisors. Please note that this approval is subject to the following conditions: 1. The site improvements shall be developed in general accord with the attached concept plan, entitled, APPlication Plan for Suntrust-Pantops Branch, Past revised June 16, 2003. 2. The Automated Teller Machine lane shall be located closest to the building. 3. Provide an informal mix of native screening trees and ornamentals along the western property line to minimize the impact of the drive-through structure on the Entrance Corridor, to the satisfaction of the Architectural ReView Board. 4. Drive-through windows will be limited to three (3). 5. Architectural Review BOard issuance of a Certificate of Appropriateness. 6. Applicant is responsible for installation and maintenance of control devices such as by-pass lanes, signage, and pavement markings as indicated on the concept plan. Please be advised that the Albemarle County Board of Supervisors will review this petition and receive public comment at their meeting on September 10, 2003. Any new.or additional information regarding your application must be submitted to the Clerk of the Board of Supervisors at least seven days prior to your scheduled hearing date. If you should have any questions or comments regarding the above noted action, please do not hesitate to contact me (434) 296-5823. Sincerely, Margaret Doherty Principal Planner MD/jcf Cc: Ella Carey Amelia McCulley Jack Kelsey Steve AIIshouse STAFF PERSON: PLANNING COMMISSION: BOARD OF SUPERVISORS: MARGARET DOHERTY AUGUST 5, 2003 SEPTEMBER 10, 2003 SPECIAL USE PERMIT (SP-03-46) SUNTRUST PANTOPS BRANCH DRIVE-THROUGH WINDOW Applicant's Proposal: To construct a new SunTrust Bank, at the southwest comer of Route 250 and Hanson Road, with drive-through windows to allow customer transactions at three teller windows and one automated teller machine. Petition: Request for special use permit to allow a drive-through window to serve a bank in accordance with Section [25A.2.2.1 ] of the Zoning Ordinance which allows for drive-in windows serving or associated with permitted uses. The property, described as Tax Map 78 Parcel 73A, contains 1.19 acres, and is zoned PDMC, Planned Development - Mixed Commercial, and EC, Entrance Corridor. The property is located on Richmond Road (Route 250), at the southwest comer of the intersection of Route 250 and Hanson Road, in the Rivanna Magisterial District. The Comprehensive Plan designates this property as Regional Service in Neighborhood 3. RECOMMENDATION: Staff has reviewed the proposal for conformity with the Comprehensive Plan and with Zoning Ordinance and recommends approval ofthe special use permit with conditions. Planning and Zoning History: This site' is one of the remaining undeveloped portions of the Rivauna Ridge Shopping Center, originally approved as the Kroger at Pantops rezoning to PDMC, with a recent amendment to the application plan to allow office onthe adjacent parcel to the south. Comprehensive Plan: The comprehensive plan designates this property as Regional Service. Engineering AnalYsis: The main focus of the Engineering Department's review of this application relates to safe and convenient access and circulation internal and external to the site. The apPlicant submitted information regarding their peak stacking requirements, based on their experiences with SunTrust banks in other locations, See Attachment B. The Engineering Department reviewed and apprOved this material in support of the application. The applicant included in their request that a dedicated, full-length bypass lane, as shown, not be required. The bypass lane is required by Engineering for purposes of emergency exiting. The Zoning Administrator agreed with the Engineering Department, and the applicant submitted a concept plan showing the dedicated bypass lane. ARB Considerations: In an action letter, included as Attachment C, the Architectural Review Board has expressed no objections to the use. The Board voted unanimously to forward the following recommendation to the Planning CommissiOn: The ARB has no objection to the Special Use Permit for the drive-through window structure as illustrated in the elevations dated 6/4/3, subject to the following conditions: 1. The ATM lane shall be located closest to the building; and 2. Provide an informal mix of native screening trees and ornamentals along the western property line to ~ze the impact of the drive-thru structure on the EC, to the satisfaction of the ARB. STAFF COMMENT: Section 31.2.4.1 of the Zoning Ordinance below requires that special use permits be assessed as follows: Will the use be of substantial detriment to adiacent property? There is only one adjacent property with an approved use, to the south, Pantops Office. Across the street, facing Route 250, three other automobile Oriented uses have been approved. This drive-through window request will likely be of no detriment to these uses. The ARB requirements for new landscaping will improve the relationship between these adjacent uses. Therefore, it is anticipated that the proposed use will have no negative impact on adjacent property. Will the character of the zoning district change with this use? The zoning district, PDSC, anticipates high intensity automobile oriented uses. ~With the conditions typically imposed by the ARB the character of the district will not be changed. Will the use be in harmony with the purpose and intent of the zoning ordinance? The use allows for improved convenience for the citizens of Albemarle County. Will the use be in harmony with the uses permitted by right in the district? The drive-through window use serves a bank which is a permitted use in the district. The use will not restrict permitted uses on this or adjacent property. Will the use comply with the additional regulations provided in Section 5.0 of this ordinance? No regulations in Section 5.0 apply specifically,to this use. Will the public health, safety and general welfare of the community be protected if the use is approved? Compliance with the site plan regulations and the recommendations of the ARB will protect the public health safety and general welfare. RECOMMENDED ACTION: Staff recommends approval of SP-02-73, with the following conditions of approval: 1. The site improvements shall be developed in general acc°rd with the at[ached concept plan, entitled, 2 Application Plan for Suntrust-PantoPs Branch, last revised June 16, 2003; 2. The Automated Teller Machine lane shall be located closest to the building; Provide an informal mix of native screening trees and ornamentals along the western property line to minimize the impact of the drive-through structure on the EntranCe Corridor, to the satisfaction of the Architectural Review Board; 4. Drive-throughwindows will be limited to three (3); 5. .Architectural Review Board issuance of a Certificate of Appropriateness; and Applicant is responsible for installation and maintenance of control devices such as by-pass lanes, signage, and pavement markings as indicated on the concept plan. ATTACHMENTS: A - Vicinity Map B - Letter dated July 28, 2003 and sketch plan showing stacking and bypass lane as required by Engineering Dept. C - Architectural Review BOard action letter, dated June 26, 2003 D -Application Plan for Suntrust-Pantops Branch, last revised June 16; 2003 3 ARCHITE~S DAMON ~THOMPSON PC ~,,-,~AS SO C lATE $ kl"'~A,/OIO,q cro/ OlOfl ATTA C~H J~ri~'l~ ~J~i~ 28 July 2003 Margaret Dollerty County of Albemarle Department of Planning.& Community Development 401 Mclntire Road Charlottesville, VA 22902 VIA FAX & (434) 972-4102. SunTrust Bank - Pantops Mountain Branch Albemarle County, Virginia ADTA #030O9 Dear Margareh- On behalf of SunTrust Bank, we advise that peak stacidng at the drive-thru lanes is expecled to be no more than 4 cars per lane. · we base this expectation on the Bank's day-to-day experiences with other examples o£this prototype already built and in operation in similar markets, such as Chri~ansburg,. Colonial Heights, Richmond, Williamsburg and Winchester. These examples, similarly, have an internal 2-lane access mad to the drive thru tellers which widen~ I;o dedicated lanes for each~drive thru only after it tums the comer of the building. To our knowledge, neither the individual branches, SunTrust corporate, nor the localities in which these branches are located have received complaints from banking clientele that this drive-thru configuration is inadequate to meet 'their needs. Many localities throughout the state do not even require a bypass lane around tl~e moSt outboard lane at the canopy proper as provided in our present design. Furthermore, no SunTrust branch, regan:lles~ of location, has ever found it.necessary to incorporate a dedicated, full-length bypass lane, either inthe initial design need, nor in retrospect, after branch opening. SunTrust respectfully reque~ that the Cour~y engineer's desire for a dedicated, fulklength bypa~ lane for this branch site nc~ be made par[ of the approval requirements. If you have further questions with re~ard to this matter, or ii ! maybe of further assistance in any way, please do not hesitate to contact me. Very truly yours, .Fred M.' Thompson, AIA Senior Prindpal CC: 8ehzad Tamaddon - Suntrust Bank Tim Miller - Rivanna Engineering & Surveying I-I:~0O3~O~00~Wp\ltr002.tvkqr~aml O,',herty.spl. doc Architecture Inferior Design PJann~ng 31]T NodhsMe Avenue R;chmond, Virginia 23228.5~1 80Z-262-7941 FAX 804-262-8071 www. adfap¢.c0m 5 OYAH ATTACHMENT B ATTACHMENT C COUNTY OF ALBEMARLE Departmerlt of Planning & Community Development 40 ! M¢Intire Road, Room 218 Charlottesville; Virginia 22902-4596 (434) 296 - 5823 Fax (434) 972- 4012 June26,2003 Susan Lacy Damon Thompson & Associates, PC 3111NorthsideAvenue Richmond, VA 23228 RE: ARB-2003-68 Suntrust Bank- Pantops Mountain Branch; Tax Map 78, Parcel 73A Dear Ms. Lacy: The Albemarle County Architectural Review Board, at its meeting on June 16, 2003 reviewed the above- noted request and took the following actions. Regarding the Special Use Permit, the Board by a vote of 5-0, forwarded the following recommendation to the Planning Commission: The ARB has no objection to the Special Use Permit for the drive.thru structure as illustrated in the elevations dated 6/4/3, subject to the following conditions: 1. The ATM lane shall be located closest to the building. , t 2. Provide an informal mix of native screening trees and ornamentals a ong ~he wes em property line to minimize the impact of the drive-thru structure on the EC, to the satisfaction of the ARB. Regarding the Preliminary Site Plan, the.Board offered the.folloWing comments for the benefit of the applicant's final submission. Please note that the following comments are those that have. been identified at this time. Additional comments may be added or eliminated based on further review and changes to the plan. 1. Coordinate the Suntrust Bank and Offices at South Pantops plans regarding property lines, layout, grading, and landscaping. 2. Revise the site plan to show the ATM lane as the lane closest to the building. 3. Show the brick screening wall on the site plan. 4. Indicate that bronze is the proposed finish for the pole lights. 5. Provide all material and color samples. 6. Specify clear glass for windows. 7. Revise the northwest and northeast elevations to relieve the blankness. Add plants along the northeast elevation to relieve the "back door" appearance. 8. Regarding the northwest elevation, provide a pianting island at the north end of the drive-thru and provide a :decidUous tree to help relieve the blankness. 9. Choose alternate wall fixtures. Choose fixtures that are designed for architectural applications; not fixtures that are primarily intended for parking let pole lights. 10. Indicate a mounting height for the wall fixtures that works with the design of the building. 11. Provide information onthe drive-thru lights. Choose fixtures that will be installed flush with the ceiling of the structure. 7 ATTACHMENT C Page 2 June 26, 2003 12. Provide complete information on building signage. (Wail detailing will have to coordinate with wall signage.) 13. Provide a section to clarify the visibility of the northwest elevation. 14. Change the color of the tower return to match the brick. 15. Regarding landscaping: Substitute the Pistache and Catalpa with a large shade tree, 35'. on-center along the EC. Consult the Albemarle County Recommended Plants List for appropriate trees. Consider specifying an urban tolerant, native tree. · Locate the shade trees closer to Route 250 to coordinate with the location of the shade trees proposed for Rivanna Ridge Shopping Center Outparcels. · Do not altemate species of shade trees along the EC, unless the trees have the same shape and form. · Intersperse ornamental trees among the shade trees along the EC. · To promote better overall coordination between the vadous sites within this area, locate the shade trees along Hansen Road 10' off the curbline and 40' on-center. · .Substitute the proposed shrubs with alternate screening shrubs. Consult the Albemarle County Recommended Plants List for appropriate shrubs. Include native shrubs among the selection of shrubs. · Adequate screening of the cars in the parking area, relocate the shrubs along the travelway (southwest of the parking area) parallel to the parking area and along the northeast side of the first space. · The minimum planting height for shrubs shall be 24". Revise the Landscape Schedule accordingly. · Identify each shrub/shrub group. Do not rely on the note "S-4 is a planting combination of S-1 & S-2, alternating in groups of 5 & 7". · Provide an informal mix of native screening trees and ornamentals along the northwest property line. · Substitute the '~/hitespire" Asian White Birch with a Heritage" River Birch, 6'-7', multi-stem form. · Substitute the Washington Hawthorne in the planting island Closest to the building with a "Heritage" River Birch. · Remove the Golden Ball Arborvitae from the Landscape Schedule. · Remove the note "Groundcover shall be provided in Landscape areas". · Provide foundation plants along the north building elevation. 16. Provide all items required by the Checklist for Final Site Plan Review with the ARB. You may submit your application for final ARB review at your earliest convenience. Application forms, checklists and schedules are available on-line at www.albemarle.or.q/~.!.annin,q ATTACHMENT C Page 3 June 26, 2003 Revised drawings addressing the comments listed above are required. Please include a memo outlining how each comment has been addressed. If changes other than those requested have been made, identify those changes in the memo also. If you have any questions concerning any of the above, please feel free to call me. Sincerely, Margaret Maliszewski Design Planner ~ MM/jcf Cc: File Margaret Doherty ? ~8-20NN H~Zt Lim{te~ x,, DRAWING INDEX A1 of 4 COVER SHEET A2 of 4 SITE PLAN A3 of 4- LIGHTING PLAN A4 of 4 DETAILS LEGEND ~ B~nchmork --W/E-- Existing Woterline --O/E-- Overheo~l Electric .e' Power Pole -~m Prop. Light Polk MH Monhole TM 78-15 Derm~ M{netes DB 2128-547 / TM 78-13.4 Pantops Investors, LLC DB 1376-679 , .~e; ~1 ,,,,'~" · .j~.-~ / '~;~ t ! I ! ! I I I I I I I I I I TM 78-73A Hurt Ivestment Company DB 2128-547 DB ~019-~Z5 (P~at) 24.072 Acres 500 Existing Elevation/Contour xEo.e Proposed Spot Elevation ~ Proposed Contour .~;~i~-;~ Existing Critical Slopes APPLICATION PLAN FOR SUNTRUST-PANTOPS BRANCH LOT 4 - A PORTION OF TM 78 PARCEL 73A RIVANNA DISTRICT, ALBEMARLE COUNTY, VIRGINIA .,/ '% ,'%%?o,. " ~% '-., LOT 4 X. · / N' ,/', / ..,g ~ "-~ TM 78-73A2 Pantops Giant, LLC DB 1485-506 TM 78-73AI Pantops G~nt, LLC DB 1485-506 60 0 50 100 1.50 = m . ymmm , SITE DATA LEGAL REFERENCE: TM 78 PARCEL 73A SOURCE OF I1TLE: DB 2128-547 OWNER: HURT INVES'TMENT COMPANY P.O. BOX 8147 CHARLOTIESVILLE, VA 22911 DEVELOPER: SUNTRUST REAL ESTATE CORPORAllON P.O. BOX 26665 RICHMOND, VA 252~1-6665 ATTN: BEHZAD TAMADDON ZONING: PD-MC: PLANNED DEVELOPMENT-MIXED COMMERCIAL LC: ENTRANCE CORRIDOR MAGISTERIAL DISTRICT: RIVANNA SOURCE OF BOUNDARY SURVEY: FIELD SURVEY PREFORMED BY RIVANNA ENGINEERING & SURVEYING, PLC. SOURCE OF' TOPOOEAPHY: ALBEMAR~ COUNTY SERVIC£ AUTHORITY TCPOGRAPHIC MAP. USGS DA1UM SETBACKS: BUILDING -30' FROM PUBLIC R/W BUILOING- 50' FROM RESDEN'I]AL DIS~ICTS PARKING - 10' FROM PUBUC R/W PARKING - 20' FROM RESIDENTAIL DISTRICTS BUFFER ZONE: 20' UNDISTURBED BUFFER ADJACENT TO RESIDENTIAL DISTRICTS MAXIMUM BUILDING HEIGHT: 35' PAVING SPECIFICATIONS: PARKING AREA: 6" - #21A AGOREOATE BASE MATERIAL 2" - SIvI-g~5A SURFAt. E MATERIAL SIDEWALKS: 4" - 4000 PSI CONCRETE PARKING SCHEDULE: BANK REQUIRES ONE SPACE PER 150 SF PLUS 25 SF PER DRIVE-THROUGH WINDOW, 150 + ¢~25=200 SF SPACES REQUIRED: 3850/200=19 SPACES SPACES PROVIDED: 20 (INCLUDE 1 HANDICAP SPACES) LOADING SPACES REQUIRED/PROVIDED: 0 LAND USE SCHEDULE: PRE-DEVELOPMENT % POST-DEVELOPMENT ~ BUILDING: 0 SF 0 3,850 SF 7.8 PAVED; 0 SF 0 22,099 SF 45.2 PI~VIOUS: 43818 SF lO0 22,969 SF 47.0 TOTAL: 48,918 SF 100 48,918 SF 100 SITE SPECIFIC NOTES 1. ZMA 98-20 WAS APPROVED AND AMENDED THE ZONING ,DISTRICT FOR THIS PARCEL TO PD-MC. 2. ZMA 2002-08 .IS IN !NE APPROVAL PROCESS AND I~ILL ALLOW AN OFFICE USE ON 1HE LEASE LOT ADJACENT TO LOT ~, ,3, SDP 02-084 SOUTH PANTOPS OFFICE IS IN THE APPROVAL PROCESS. 4. THIS APPLICATION PLAN IS FOR A SPECIAL USE-PERMIT TO ALLOW THRFF DRIVF-THROIIC, N 'RANK lANES AND ATM 'DRIVE-'fl'IROUGH LANE. No: $£55)0~d ?VAORddV NI SOlddO £dO, tNVd HgflOS PffO- ffO-dq$ / ! &Dl.~oqJ¥ I~ ':miqVN ~' 1VOINVIOB '/ O} ~ JO gdr~J§ U! 6u!louJ~lla '~-S ~' I,-~; ~o uollau!qmoa 6uitur, ldo s. t-$ .'3.tON* / - // 44)0 Watt (IX) High Pressure Sodium ~'"T~- N .... Revisions:  OESCRIPIlON DA'II .~' ~ .. · ExceLine Luninalre Schedule Pr'ojec'b, SUN TRUST Sy~bo' Qty Lcbet Apran~e~eni L s LLF ])escrIption --~ 4 A SINGLE 19100 0.700 SMR253MA -~ ) 7 B SINGL~ '~9100 0.700 SMR~54MA E L ne N,JMepic Su~or7 FC Beyond P~op Line I IUu~lnance IFc I 0.01 I 0,4 I 0.0 I 0.00 I 0,00 open Grass Are~ FC / Ittu~mn~nce Fc 0,88 6,1 0.0 0.00 0,00 ~ P~rking Lot FC o~ Or~d~ [tlu~ln~nce m Fc ~ 8.6B ~ 7.1 ~ 0.4 ~ 6.70 . ~ 1~,~ ALL VALUES 8HD~N ARE HOR]ZONTAL MAINTAINED FOOTCANDLES AT ~ADE vALUES DB NOT INCLUDE SUPPLEMENTAL LIOHT FROM ADJACENT PROPERTIES, CANOPY OR STREET THIS LAYOUT DOES NOT INCLUDE THE LIOHTINO FOR THE CANOPY DR ANY ATM AREA ,0~--,, 1 :$7VD$ 7IV~KI DIIIYDV~£ HDDO~tHg- gAl~ttI · ,0 ~ = ,, ~ 7IVJ$~I gNI~tdgOOd COUNTY OF ALBEMARLE Departmerlt o£ Planning & Community Development 401 M¢Intire Road, Room 218 Charlottesville, Virginia 22902-4596 (434) 296 - 5823 Fax (434) 972 - 4012 August 25, 2003 Randy E. Fox 1968 Avon Street Ext Charlottesville, VA 22902 RE: SP-03-48 Randy E. Fox Home Occupation Class B Tax Map 90, Parcel 31 Dear Mr. Fox: The Albemarle County Planning Commission, at its meeting on August 19, 2003, by a vote of 7:0, recommended approval of the above-noted petition to the Board of Su pervisors. Please note that this approval is subject to the following conditions: 1. There shall be no additional employees outside of family living at 1968 Avon Street Extended. 2. The applicant will be required to submit a Certified Engineers Report demonstrating compliance with the performance standards in the Zoning Ordinance Section 4.14. 3. The applicant will revise the conceptual-plan received by the Planning Department on July 15, 2003 to include a statement limiting the number of vehicle trips weekly to 14. 4. A standard entrance permit for a privatb road entrance shall be required. VD©T specifications for sight distance shall be required. Please be advised that the Albemarle County Board of Supervisors will review this petition and receive public comment at their meeting on September 10, 2003. Any new or additional information regarding your application must be submitted to the Clerk of the Board of Supervisors at least seven days prior to your scheduled hearing date. The Commission, also by a vote of 7:0, approved a waiver for the size of the accessory structure. If you should have any questions or comments regarding the above noted action1 please do not hesitate to contact me (434) 296-5823. Sincerely, Juandiego Wade Transportation Planner JR/jcf Cc: Ella Carey Jack Kelsey Amelia McCultey Steve AIIshouse STAFF PERSON: PLANNING COMMISSION: BOARD OF SUPERVISORS: JUANDIEGO R. WADE AUGUST 19, 2003 SEPTEMBER 10, 2003 SP-03-48 RANI)YE. FOX HOME OCCUPATION CLASS B Applicant's Proposal: The applicant proposes to operate a small engine repair shop fi:om his existing garage (Attachment A). The applicant will go to customer homes to pick up engine parts and then deliver the repaired part to the customer. No customers will travel to the applicant's home. The applicant has also requested a waiver for the size of an accessory structure. Petitions: Request for special use permit to allow a Home Occupation Class B for a small machine shop that repairs parts off engines in accordance with Chapter 18 Section 13.2.2.9 of the Zoning Ordinance which allows for home occupations. The property, described as Tax Map 90 Parcel 31, (Attachment B) contains 5.170 acres, and is zoned R- 1, Residential. The property is located at 1968 Avon Street Extended (Route 742), approximately 100 yards fi:om the intersection of Rt. 20, in the Scottsville Magisterial District. The Comprehensive Plan designates this property as Neighborhood Density in Neighborhood 4. Character of the Area: The area is primarily single family detached residential. The home is not located in a subdivision. The lot across the street is wooded with a house at the rear of the lot near Rt. 20. Plannine and Zoning History: No History Comprehensive Plan: The Comprehensive Plan designates this property as Neighborhood Density in Neighborhood 4. RECOMMENDATION: Staff has reviewed this request for compliance with provisions of Section 31.2.4.1 of the zoning ordinance and recommends approval with conditons. Staff also recommends approval for the size of the accessory structure. STAFF COMMENT: Staffwill address each provision of Section 31.2.4.1 of the Zoning Ordinance. The Board of Supervisors hereby reserves unto itself the right to issue all special use permits permitted hereunder. Special use permits for uses as provided in this ordinance may be issued upon a finding bv the Board of Supervisors that such use will not be of substantial detriment to adiaCent property.. It is staffs determination that'this home occupation will not be of substantial detriment to adjacent properties. All repairs will be done in the existing garage. There will be no equipment that will produce an extraordinary amount of noise. The applicant will pick up and deliver the engine part to be repaired thereby eliminating additonal traffic. The applicant is not requesting approval for any employees. that the character of the district will not be chan ~ed thereby, The character of the area will not be impacted. The home occupation will take place in the existing garage. The garage facade is similar to the applicant's home. The applicant is not proposing to place any signs on the property. and that such use will be in harmony with the purpose and intent of this ordinance, The site is located in a Residential District. Home occupations are permitted as a use by special use permit in residential areas. with the uses permitted by right in the district~ The proposed use would not interfere with the uses permitted by right in the district. with additional regulatiOns provided in Section 5.0' of this Ordinance, 5.2.2.1 The following regulations shall apply to any home occupation: a. Such occupation may be conducted either within the dwelling or an accessory structure, or both, provided that not more than twenty- five (25) percent of the floor area of the dwelling shall be used in the conduct of the home occupation and in no event shall the total floor area of the dwelling, accessory structure, or both, devoted to such occupation, exceed one thousand five hundred (1,500) square feet; provided that the use of accessory structures shall be permitted only in connection with home occ. upation, Class B; The County's real estate records indicate that the applicant's dwelling contains 3056 square feet and the area for the home occupation contains 768 square feet. 768 square feet is 25.13% of 3,056 square feet. This exceeds 25% of the floor area of the house. The Planning Commission can waiver or modify this requirement. The applicant has requested a waiver (Attachment C). Staff supports this waiver because the garage is existing and the amount in which it exceeds the supplemental regulation is so minor. The Zoning Department comments can be found on Attachment D. b. There shall be no change in the outside appearance of the buildings.or premises, or other visible evidence of the conduct of such home occupation provided that 2 a home occupation, Class B, may erect one home occupation Class B sign as authorized by section 4.15 of this chapter. Accessory structures shall be similar in facade to a single-family dwelling, private garage, shed, barn or other structure normally expected in a rural or residential area and shall be specifically compatible in design and scale with other development in the area in which located. Any accessory structure Which does not conform to the setback and yard regulations for main structures in the district in which it is located shall not be used for any home occupation; The applicant will will utlilize the existing garage, which has a similar fagade to the main residence. c. There shall be no saleson the premises, other than items hand crafted On the premises, in connection with such home occupation; this does 'not exclude beauty shops or one-chair barber shops; No sales are involved, so this regulation is not applicable to this request. d. No traffic shall be generated by such hOme occupation in greater volumes than would normally be expected in a residential neighborhood, and any need for parking generated by the conduct of such home occupation shall be met off the street; The applicant is not proposing to have customers travel to his home. The Zoning Department has requested for the applicant to place on the conceptual plan (Attachment E) or in writing the number visits per week to the site that will be associated with the home occupation. The applicant estimated that his home occupation would produce fourteen (14) trips per week. The applicant is willing to place a statement on'the conceptual plan to this effect. The Zoning Department recommended that parking setback be established since there are none in residential districts. Staff does not recommend any parking setback because there will be no customers traveling to the site. Staffwill be prepared to recommend a proffer if the Planning Commission supports a setback. e. All home occupations shall comply with performance standards set forth in section 4.14; The applicant will be required to complete a Certified Engineers Report and submit to the Engineering Department. f. Tourist lodging, nursing homes, nursery schools, day care centers and private schools shall not be deemed home occupations. The proposed home occupation does not fall into this category. and with the public health~ safety and general welfare. 3 The Virginia Department of Transportation will require a 450' sight distance (Attachment F). The site currently has 450' sight distance looking towards R6ute 20 and 400' of sight distance looking townards Charlottesville. V DOT believes the additional 50' of sight distance could be done within VDOT's rights-of-way. A condition of approval has been offered to address this comment. The applicant will not use any chemicals to clean engine parts. The solutions used to clean the' engine parts will be water solutable, so the public health should be preserved. SUMMARY: Staffreceived a letter(Attachment G) fi:om a neighbor listing issues concerning the home occupation. Staff believes its proposed cOnditions addresses the neighbOr concerns. Staff has identified the following factors favorable to this application: · The home occupatiOn will take place in an existing garage. · The applicant will pick up and deliver repaired parts. · There will no employees commuting to the site. Staffhas identified the following factors unfavorable to this application: · Staff found no factors unfavorable to this application. RECOMMENDED ACTION: Based on the findings contained in this staff report, staff recommends Approval with conditions of SP-03-048 and the waiver for the size of an accessory structure. Conditions of Approval: 1. There shall be no additional employees outside of family living at 1968 Avon Street Extended. 2. The applicant will be required to submit a Certified Engineers Report. 3. The applicant will revise the conceptual plan received by the Planning Department on July 15, 2003 to include a statement limiting the number of vehicle trips weekly to 14. 4. A standard entrance permit for a private road entrance shall be required. VDOT specifications for sight distance shall be required. Attachments: ASP 03-048 Application B Location Map C Applicant's Waiver Request D Zoning Department Comments E Applicant's Conceptual Plan F VDOT Comments G Letter from Adjacent Property Owner 4 JOFFIC 'F. USE ONL_Y~ .~- O0 o o 0c3 0TM Application for Special Use Permit F. ','soft ~11 ~ist you wi~ ~c itch) ' - Number of n~ to bc covered by Spcdel Use Pc~it ee.~.~~--~, Is tlds an nmendmcnt to on existin~ Spcd~l Usc Pcrmit~ ~ Y~-~ Are you submit~nc n site development, plun witll ~12 nppli~Oon? ~ Ycs'~ Daytime Phone ( Z/4~*/~ ~,/- ~0~-~ S~x # E-mail E-mail Tax map and parcel Physical Address iir=sig.ca~/.~_~. _/) ~-- ~q'~-~ .~r ~ n ~c,,~ ' Does fha owner of this propemy own (or have any owne~hip iatares~ in) an~ abutting those mx map and p~c.:l numbers ~ ~ If yes, please list OFFICE USE ONLY F~ amount S History: 'El Special Usc P~:rmits: ....... -'- ~ V~rianccs: ~'~r%/ ''1 Concu~cnt ~vic~, of Site Dcv,:!oprncat Plan? ~ 7MAs and Proffers: 0 Letter of Authori.~tion OYes QNo 40 t Mcintire Road + Chartattesviile,.VA 22'902 -:- Voice: 296-5832 ':- Fax: 972-4126 5 Section, 31.2.4. i of the Albemarle County Zoning Ordinance states that, "Thc board of supervisO'rs hereby reserves unto itself the right to issue all special use permits permitted hereunder. Special use permits for uses as l~'rovided in this ordinance may be issued upon a finding by the board of supervisors that such usc will not be of substantial detriment to adjacent property, that the character of the district will not be changed thereby and that such use will be in hannony with the purpose and intent of this ordinance, with the uses permitted by fight in the district, with additional regulations provided in section 5.0 of.this ordinance, and with the public health, safety and general welfare. The items which follow will be reviewed by the staff in their analysis of your request. Please complete this form and provide additional information which will assist the County in its review of your request. If you need assistance filling out these items, staff is available. w Howwillth~proposcdspecmluseal'fectadjacentpropmy? :'lt~/,'l~G ~ ~')/~ ~'"~-4-{t. /~O~;'/L]ce · t r ,, How is the use in harmony with the purpose and intent of the Zoning Ordinance? ,/'.//~- ~ . . ~ ~ - ~ ~ How is ,hc ,,~ in h~rmony with thc usc, perm[ucd by righ, in ,h, dis,6ct~ ~ What additional regulations provided in Section 5.0 of the ~ning Ordinance apply to thia Describe your request in detail and include all pertinent in formation such as the numbers of persons involuted ih the use, operating hours, and any unique features of the use: ~'~-'~tff ! ,'~'~[ ! ~ e-- ~ '3' ATTACHMENTS REQUIRED - provide two(2) copies of each: 1. Recorded plat or boundary survey of the property requested for the rezoning. If there is no recorded plat or boundary survey, please provide legal description of the property and the Deed Book and page number or Plat Book and page number. Note: If you are requesting a special use permit ofily for a portion of the property, it needs to be described ordelineated on a copy of the plat or surveyed drawing. 2. Ownership information - If ownership of the property is in the name of any type of legal entity or organization including, but not limited to, the name of a corporation, partnership or association, or in the name of a trust, or in a fictitious name, a document acceptable to the County .must be submitted certifying that the person signing below has the authority .... to do so. ff the appiicant'i~' a contract purchaser, a document acceptable to the County must be submitted containing the owner's written consent to the application. If the applicant is the agent of the owner, a documen3 acceptable to the County must be submitted that is evidence of the existence and scope of the agency. OPTIONAL ATTACHMENTS: Drawings or conceptual plans, if any. Additional Information, if any. I hereby certify that I own the subject property, or have the legal power to act on behalf of the owner in filing this application. I also certify that the information provided is true and accurate to the best of my Daytime phone number'of Signatory 7 6A / IOE ', IOZ SAMUEL MILLER AND- SOOTTSVILLE DISTRICTS SECTION 90 ATTACHMENT C 1968 Avon S~ Charlottesville, Va. 22902 Alb,mmrle Phone (434-293-2844) July 20, 2003 Randy Fox 1968 Avon St. Ext. Charlottesville, Va, 22902 Attention: Juan Wade, I am wdting this letter to inform you that I wish to waiver the 25% or less requirement on the size of my shop, verses the size of my home. This shop wasan existing building when we purchased the property. The shop has existed on this property for more than 13 years, and it compliments it's surroundings. Sincerely, ATTACHMENT D Albemarle County Development Departments s P-2003-048 SPIN Submission and Comment Randy E. Fox-HomeOccupation Class B Zoning Home Occupation B revision.1 reviewer received reviewed decision John Shepherd 6/4/2003 7/16/2003 pending BOS approval These comments are based on the application and the concept plan received on July 15, 2003. Home occupations are intended to be accessory and subordinate to the established use on the parcel. In this case the primary use is residential and the automotive machine shop home occupation is to be subordinate. The review of this request must assure that the size and scale of the activities and improvements associated with the machine shop business meet the standards contained in SectiOn 5.2 of the ordinance. 1. [5.2.2.1] The following regulations shall apply to any home occupation: The regulations of Section 5.2 are provided below in Italics. The actions required to comply with these regulations recommended by this department are bulleted. The Planning Commission must consider the intent of the regulations governing home occupations and take separate action to approve any waivers of these regulations that are occasioned by this request. [5.2.2. la] Such occupation may be conducted either within the dwelling or an accessory structure, or both, provided that not more than twenty- five (25) percent of the floor area of the dwelling shall be used in the conduct of the home occupation and in no event shall the total floor area of the dwelling, accessory structure, or both, devoted to such occupation, exceed one thousand five hundred (1,500) square feet; provided that the use of accessory structures shall be permitted only in connection with home occupation, Class B; Our real estate records indicate that the building that is proposed for the home occupation contains 768 square feet and the dwelling contains 3056 square feet. Based on these figures, the area devoted to the home occup~ation is 25.13% of the area of the house. Since this exceeds 25% of the floor area of the house, the applicant must either reduce the area devoted to the home occupation or request a waiver or modification of this requirement from the Planning Commission. Staff notes that the applicant has calculated the square footage of the dwelling to be 3280 square feet. [5.2.2.1b] There shall be no change in the outside appearance of the buildings or premises, or other visible evidence of the conduct of such home occupation provided that a home occupation, Class B, may erect one home occupation Class B sign as authorized by section 4.15 of this chapter. Accessory structures shall be similar in facade to a single-family dwelling, private garage, shed, barn or other structure normally expected in a rural or residential area and shall be specifically compatible in design and scale with other development in the area in which lOcated. Any accessory structure which does not conform to the setback and yard regulations for main structures in the district in which it is located shall not be used for any home occupation; The applicant states in the application that the business will be conducted inside and concealed from public view. The building complies with the primary setbacks of the R-1 district: front- 25', side- 15' and rear- 20'. The request will comply with this section. [5.2.2.1c] There shall be no sales on the premises, other than items hand crafted on the premises, in 8/4/2003 02:27 PM Page 1 of 2 ATTACHMENT D Albemarle County Development Departments $ P-2003-048 SPIN Submission and Comment RandyE. Fox-HomeOccupation Class B Zoning Home Occupation B revision.1 reviewer reCeived reviewed decision John Shepherd 6/4/2003 7/16/2003 pending BOS approval connection with such home occupation; this does not exclude beauty shops or one-chair barber shops; This regulation is not applicable to this request. [5.2.2.1d] No traffic shall be generated by such home occupation in greater volumes than would normally be expected in a residential neighborhood, and any need for parking generated by the conduct of such home occupation shall be met off the street; This department considers seven visits per week to meet this standard for Class A home occupations. The maxim um number of visits must be noted on' the concept plan or in writing. That number can be approved by the Board if it is considered to meet the standard of 5.2.2.1 b. [5.2.2.1e] All home occupations shall comply with performance standards set forth in section 4.14; The applicant must work with the Engineering Department to satisfy this requirement. 2. The applicant must place a note on the concept plan that states, "This business is limited to not more than two employees, other than members of the immediate family residing on the premises." 3. There are no parking setbacks in the R1 district. However, it may be appropriate to require the setbacks and screening contained in Section 21, Commercial of the ordinance for parking from the front, side and rear property lines. In any case, please condition appropriate setbacks for parking since 'there are none in the RA district. 4. If lighting is proposed, the following information must be addressed on a plan: ? [32.5.6(n)] Show the location of all outdoor lighting on the plan. ? [4.17.4] Please note on the plan, "Each outdOor lumina~re equipped with a lamp which emits 3,000 or more maximum lumens shall be a full cutoff luminaire and shall be arranged or shielded to reflect light away from adjoining properties and away from adjacent roads." ? [4.17.4.3] Please note on the plan, "The spillover of lighting from outdoor luminaires onto adjoining parcels shall not exceed one-half (%) foot candle." ? [32.6.6(j)] Provide a description and photograph or diagram and show the location of each type of outdoor luminaire that emits 3,000 or more initial lumens. 8/4/2003 02:27 PM Page 2 of 2 1i / ,I ATTACHMENT E ATTACHMENT F Philip A. Shucet COMMISSIONER June 25, 2003 COMiMONWEALTH DEPARTMENT OF TRANSPORTATION 701 VDOT Way Charlottesville, VA 22911 Mr. David Benish Dept. of Planning and Communi .ty Development 401 Mclntire Road Charlottesville, VA 22902 OF VIRGINIA James L Bryan RESIDENT ENGINEER Site Review Comments July 2003 Dear Mr. Benish, The following are my comments regarding the development proposals for the July. 2003 site review committee meeting. SDP-2003-048; Route: 649; TM 32 P29N; Franklin Jones SDP Waiver (Shea Fain-ar) A entrance permit for a standard private road entrance with 450' of sight distance will be required. SDP-2003-049; Route: 29; TM 32, P 41D; Itollyanead TC Area C (Margaret Doherty) The right-in, right-out entrance should be modified to a right-in only. VDOT staff have not finalized the comments with respect to the design of the improvements necessary at the intersection of Timberwood Boulevard and US 29. t~P-2003-048; Route: 742; TM 90, P31; Randy E. Fox (Juan Wade) An entrance permit for a standard private road entrance, with 450' of sight distance will be required. SP-2003-049; Route: 631; TM 61, P 129F; Glenwood Station (Margaret Doherty) A traffic study will be required. This study should analyze both the residential and office portions of the propsed development. The need for this study is based on the anticipated peak hour traffic from the site being in excess of 100 vehicles, and due to the comments that the residency has received about the capacity of the intersection of Rio Road and Rio East Ct. SUB-2003-135; Route: 250; TM 59; P 37B-37F, 38A-38F; Ivy Creek (Francis MacCall) Sanctuary No comments, due the subdivision's location on a pivate road. TRANSPORTATION FOR THE 2t ST CENTURY · ATTACHMENT G August 8, 2003 Albemarle County Planning Commission County of Albemarle 401 Mclntire Road Charlottesville, VA 22902 Subject: SP-03-048 Randy E. Fox-Home Occupation Class B (Sign #2) Dear Sir: The primary concerns relative to ~.he proposed machine shop to repair engine heads are the following three things. Retain the strictly residential appearance of the property in keeping with the neighborhood. No disabled vehicles, or vehicles not owned personal by Fox, are to be parked on the property. This includes automobiles, and the like, which are not to be repaired on the property. Heads only are to be transported onto and away from the property. No signs, of any size, are to be placed to identify .or advertise the business. I believe there are current small businesses in the neighborhood which are unobtrusive to the neighborhood and public and are not registered with the County. This letter is written on behalf of my 96 year old mother, Roberta B. Fitzgerald, 1924 Scottsville Road, Charlottesville, VA 22902. Sincerely, J. Franklin Fitzgerald 39 Country Drive Weston, MA 02493 781-899-5247: frankmarg39~yahoo.com RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS, SERIES 2003A, OF THE COUNTY OF ALBEMARLE, VIRGINIA, IN A PRINCIPAL AMOUNT NOT TO EXCEED $7,205,000 TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND PROVIDING FOR THE FORM AND DETAILS THEREOF WHEREAS, the Board of Supervisors (the "Board") of the CoUnty of Albemarle, Virginia (the "COunty"), has determined that it is necessary and expedient to borrow a principal amount not to exceed $7,205,000 and to issue its general obligation school bonds for the purpose of financing certain capital projects for school purposes; and WHEREAS, the County will hold a public hearing, duly noticed, on October 1, 2003, on the issuance of the Bonds (as hereinafter defined) in accordance with the requirements of Section 15.2-2606, Code of Virginia 1950, as amended Ithe "Virginia Code"); and WHEREAS, the School Board of the County has, by resolution adopted on August 14, 2003, requested the Board to authorize the issuance of the Bonds and consented to the issuance of the Bonds; and WHEREAS, the Bond Sale Agreement (as defined below) shall indicate that $7,205,000 is the amount of proceeds requested (the "Proceeds Requested") from the Virginia Public School Authority (the "VPSA') in connection with the sale of the Bonds; and WHEREAS, the VPSA's objective is to pay the County a purchase price for the Bonds which, in VPSA's judgment, reflects the Bonds' market value (the "VPSA Purchase Price Objective"), taking into consideration such factors as the amortization schedule the County has requested for the Bonds relative to the amortization schedules requested by other localities, the purchase price to be received by VPSA for its bonds and other market conditions relating to the sale of the VPSA's bonds; and WHEREAS, such factors may result in the Bonds having a purchase price other than par and consequently (i) the County. may have to ~ssue a principal amount of Bonds that is less than the Proceeds Requested but in no case greater than the Proceeds Requested in order to receive an amount of proceeds that is substantially equal to the Proceeds Requested, or (ii) if the maximum authorized principal amount of the Bonds set forth in Section 1 below does not exceed the amount of the discount the purchase price to be paid to the County, given the VPSA Purchase Price Objective and market conditions, will be less than the Proceeds Requested; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ALBEMARLE, VIRGINIA: 1. Authorization of Bonds and Use of Proceeds. The Board hereby determines that it ~s advisable to contract a debt and issue and sell its general obligation school bonds in an aggregate principal amount not to exceed $7,205,000 (the "Bonds") for the purpose of financing certain capital projects for school purposes, including without limitation, the projects described in Exhibit B. The Board hereby authorizes the issuance and sale of.the Bonds in the form and upon the terms established pursuant to this Resolution. 2. Sale of the Bonds. It is determined to be in the best interest of the County to accept the offer of the VPSA to purchase from the County, and to sell to the VPSA, the Bonds at a price, determined by the VPSA to be fair and accepted by the County Executive, that is substantially equal to the Proceeds Requested, except that the Bonds may be sold for a purchase price not lower than 95% of the Proceeds Requested if issuing the Bonds in the maximum principal amount authorized by Section 1 of this Resolution is insufficient, given the VPSA Purchase Price Objective and market conditions, to generate an amount of proceeds substantially equal to the Proceeds Requested. The County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to enter into a Bond Sale Agreement dated as of October 1, 2003 (the "Bond Sale Agreement"), with the VPSA providing for the sale of the Bonds to the VPSA. The Bond Sale Agreement shall be in substantially the form submitted to the Board at this meeting, which form is hereby approved. 3. Details of the Bonds. The Bonds shall be dated the date of issuance and delivery of the Bonds; shall be designated "General Obligation School Bonds, Series 2003A"; shall bear interest from the date of delivery thereof payable semi-annually on each January 15 and July 15 beginning July 15, 2004 (each an "Interest Payment Date"), at the rates established in accordance with Section 4 of this Resolution; and shall mature on July 15 in the years (each a "Principal Payment Date")-and in the amounts set forth on Schedule I attached hereto (the "Principal Installments"), subject to the provisions of Section 4 of this Resolution. 4. Interest Rates and Principal Installments. The County Executive is hereby authorized and directed to accept the interest rates on the Bonds established by the VPSA, provided that each interest rate shall be ten one-hundredths of one percent (0.10%) over the interest rate to be paid by the VPSA for the corresponding principal payment date of the bonds to be issued by the VPSA (the "VPSA Bonds"), a portion of the proceeds of which will be used to purchase the Bonds, and provided further that the true interest cost of the Bonds does not exceed six percent (6.00%) per annum. The Interest Payment Dates and the Principal Installments are subject to change at the request of the VPSA. The County Executive is hereby authorized and directed to acce pt changes in the Interest Payment Dates and the Principal Installments at the request of the VPSA, provided that the aggregate principal amount of the Bonds shall not exceed the amount authorized by this Resolution and provided further that the final maturity of the Bonds occurs no later than December 31, 2024. The execution and delivery of the Bonds as described in Section 8 hereof shall conclusively evidence such interest rates established by the VPSA and Interest Payment Dates and the Principal Installments requested by the VPSA as having been so accepted as authorized by this Resolution. 5. Form of the Bonds. The Bonds shall be initially in the form of a single, temporary typewritten bond substantially in the form attached hereto as Exhibit A. the Bonds: Payment; Paying Agent and Bond Registrar. The following provisions shall apply to (a) For as long as the VPSA is the registered owner of the Bonds, all payments of principal, premium, if any, and interest on the Bonds shall be made in immediately available funds to the VPSA at, or before 11:00 a.m. on the applicable Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption, or if such date is not a business day for Virginia banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the business day next preceding such Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption. (b) All overdue payments of principal and, to the extent permitted by law, interest shall bear interest at the applicable interest rate or rates on the Bonds. (c) SunTrust Bank, Richmond, Virginia, is designated as bond registrar and payment agent for the Bonds (the "Bond Registrar"). The County may, in its sole discretion, replace at any time the Bond Registrar with another qualified bank or trust company as successor Bond Registrar. 7. Prepayment or Redemption. The Principal Installments of the Bonds held by the VPSA coming due on or before July 15, 2013, and the definitive Bonds for which the Bonds held by the VPSA may be exchanged that mature on or before July 15, 2013, are not subject to prepayment or redemption prior to their stated maturities. The Principal Installments of the Bonds' held by the VPSA coming due after July '15, 2013, and the definitive bonds for which the Bonds held by the VPSA may be exchanged that mature after July 15, 2013, are subject to prepayment or redemption at the option of the County prior to their stated maturities in whole or in part, on any date on or after July 15, 2013, upon payment of the prepayment or redemption prices (expressed as percentages of Principal Installments to be prepaid or the principal amount of the Bonds to be redeemed)set forth below plus accrued interest to the date set for prepayment or redemption: Dates Prices July 15, 2013, through July 14, 2014 July 15, 2014, through July 14, 2015 July 15, 2015, and thereafter 101.0% 100.5 100.0 Provided., however, that the Bonds shall not be subject to prepayment or redemption prior to their stated maturities as described above without first obtaining the written consent of the registered owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond Registrar to the registered owner by registered mail not more than ninety (90) and not less than sixty (60) days before the date fixed for prepayment or redemption. 8. Execution of the Bonds: The Chairman or Vice Chairman of the Board, either of whom may act, and the Clerk of the Board or any Deputy Clerk, either of whom may act, are authorized and directed to execute and deliver the Bonds and to affix the seal of the County thereto. 9. Pledge of Full Faith and Credit. For the prompt payment of the principal of and premium, if any, and the interest on the Bonds as the same shall become due, the full faith and credit of the County are hereby irrevocably pledged, and in each year while any of the Bonds shall be outstanding there shall be levied and collected in accordance with law an annual ad valorem tax upon all taxable property in the County subject to local taxation sufficient in amount to provide for the payment of the principal of and premium, if any, and the interest on the Bonds as such pnncipal, premium, if any, and interest shall become due, which tax shall be without limitation as to rate or amount and in addition to all other taxes authorized to be levied in the County to the extent other funds of the County are not lawfully available and appropriated for such purpose. 10. Use of Proceeds Certificate and Certificate as to Arbitrage. The Chairman of the Board, the County Executive and such officer or offiCers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute a Certificate as to Arbitrage and a Use of Proceeds Certificate, each setting forth the expected use and investment of the proceeds of the Bonds and containing such covenants as may be necessary in order to show compliance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations relating to the exclusion from gross income of interest on the Bonds and on the VPSA Bonds. The Board covenants on behalf of the County that (i) the proceeds from the issuance and sale of the Bonds will be invested and expended as set forth in such Certificate as to Arbitrage and such Use of Proceeds Certificate and that the County shall comply with the other covenants and. representations contained therein and (ii) the County shall comply with the provisions of the Code so that interest on the Bonds and on the VPSA Bonds will remain excludable from gross income for Federal income tax purposes. 11. State Non-Arbitrage Program; Proceeds Agreement. The Board hereby determines that it is in the best interests of the County to authorize and direct the Director of Finance of the County to participate in the State Non-Arbitrage Program in connection with the Bonds. The Chairman of the Board, the County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute and deliver a proceeds Agreement with respect to the deposit and investment of proceeds of the Bonds by and among the County, the other participants in the sale of the VPSA Bonds, the VPSA, the investment manager and the depository, substantially ~n the form submitted to the Board at this meeting; which form is hereby approved. 12. Continuing Disclosure Agreement. The Chairman of the Board, the County Executive and such officer or officers of the County as either may designate, any of whom may act, are hereby authorized and directed to execute a Continuing Disclosure Agreement, as set forth in Appendix F to the Bond Sale Agreement, setting forth the reports and notices to be filed by the County and containing such covenants as may be necessary in order to show compliance with the provisions of the Securities and Exchange Commission Rule 15c2-12 and directed to make all filings required by SeCtion 3 of the Bond Sale Agreement should the County be determined by the VPSA to be a MOP (as defined in the Continuing Disclosure Agreement). 13. Filing of Resolution. The appropriate officers or agents of the County are hereby authorized and directed to cause a certified copy of this Resolution to be filed with the Circuit Court of the County. · 14. Further Actions. The members of the Board and all officers, employees and agents of the County are hereby authorized to take such action as they or any one of them may consider necessary or desirable in connection with the issuance, and sale of the Bonds and any such action previously taken is hereby ratified and confirmed. 15. Effective Date. This Resolution shall take effect immediately. The undersigned Clerk of the Board of Supervisors of the County of Albemarle, Virginia, hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the Board of Supervisors held on September 10, 2003, and of the whole thereof so far as applicable to the matters referred to in such extract. I hereby further certify that such meeting was a regularly scheduled meeting and that, during the consideration of the foregoing resolution, a quorum was present. Members present at the meeting were: David P. Bowerman; Lindsay G. Dorrier, Jr.; Chades S. Martin; Walter F. Perkins; Dennis S. Rooker; and Sally H. Thomas. Members absent from the meeting were: None. Members voting in favor of the foregoing resolution were: David P. Bowerman; Lindsay G. Dorrier, Jr.; Charles S. Martin; Walter F. Perkins; Dennis S. Rooker; and Sally H. Thomas. Members voting against the foregoing resolution were: None. Members abstaining from voting on the foregoing resolution were: None. WITNESS MY HAND and the seal of the Board of Supervisors of the County of Albemarle, Virginia, this 10th day of September, 2003. '"-~;' Board of S-dpervisors ~of the County of Albemarle, ~inia [SEAL] EXHIBIT A (FORM OF TEMPORARY BOND) NO. TR-1 $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA COUNTY OF ALBENIA_RLE General Obligation School Bond Series 2003A The COUNTY OF ALBEMARLE, VIRGINIA (the .County"), for value received, hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL AUTHORITY the principal amount of DOLLARS ($ ), in annual installments in the amounts set forth on Schedule I attached hereto payable on July 15, 2004, and annually on July 15 thereafter to and including July 15, (each a "Principal Payment Date"), together with interest from the date of this Bond on the unpaid installments, payable semi- annually on January 15 and July 15 of each year, commencing on July 15, 2004 (each an "Interest Payment Date"; together with any Principal Payment Date, a "Payment Date"), at the rates per annum set forth on Schedule I attachedhereto, subject to prepayment or redemption as hereinafter provided. Both principal of and interest on this Bond are payable in lawful money of the United States of America. For as long as the Virginia Public School Authority is the registered owner of this Bond, SunTrust Bank, Richmond, Virginia, or any successor appointed by the County, as bond registrar and paying agent (the "Bond Registrar"), shall make all payments of principal of and premium, if any, and interest on this-Bond, without the presentation or surrender hereof, to the Virginia Public School Authority, in immediately available funds at or before 11:00 a.m. on the 6 applicable Payment Date or date fixed for prepayment or redemption. If a Payment Date or date fixed for prepayment or redemption is not a business day for banks in the Commonwealth of Virginia or for the Commonwealth of Virginia, then the payment of principal of and premium, if any, or interest on this Bond shall be made in immediately available funds at or before 11:00 a.m. on the business day next preceding the scheduled Payment Date or date fixed for prepayment or redemption. Upon receipt by the registered owner of this Bond of said payments of principal, premium, if any, and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar, and the County shall be fully discharged of its obligation on this Bond to the extent of the payment so made. Upon final payment, this Bond shall be surrendered to the Bond Registrar for cancellation. The full faith and credit of the County are irrevocably pledged for the payment of the principal of and the premium, if any, and interest on this Bond. The resolution adopted by the County Board authorizing the issuance of the Bonds provides, and Section 15.2-2624, Code of Virginia 1950, as amended, requires, that there shall be lev/ed and collected an annual tax upon all taxable property in the County subject to local taxation sufficient to provide for the payment of the principal of and premium, if any, and interest on this Bond as the same ,shall become due which tax shall be without limitation as to rate or amount and shall be in addition to all other taxes authorized to be lev/ed in the County to the extent other funds of the County are not lawfully available and appropriated for such purpose. This Bond is duly authorized and issued in compliance with and pursuant to the Constitution and laws of the Commonwealth of Virginia, including the Public Finance Act of 1991, Chapter 26, Title 15.2, Code of Virginia 1950, as amended, and ordinances and resolutions duly adopted by the Board of the County and the School Board of the County to provide funds for capital projects for school purposes. This Bond may be exchanged without cost, on twenty (20) days written notice from the Virginia Public School Authority, at the office of the Bond Registrar on one or more occasions for one or more temporary bonds or definitive bonds in marketable form and, in any case, in fully registered form, in denominations of $5,000 and whole multiples thereof, and having an equal aggregate principal mount, having principal installments or maturities and bearing interest at rates corresponding to the maturities of and the interest rates on the installments of principal of this Bond then unpaid. This Bond is registered in the name of the Virginia Public School Authority on the books of the County kept by the Bond Registrar, and the transfer of this Bond may be effected by the registered owner of this Bond only upon due execution of an assignment by such registered owner. Upon receipt of such assignment and the surrender of this Bond, the Bond Registrar shall exchange this Bond for definitive Bonds as hereinabove provided, such definitive Bonds to be registered on such registration books in the name of the assignee or assignees named in such assignment. The principal installments of this Bond coming due on or before July 15, 2013, and the definitive Bonds for which this Bond may be exchanged that mature on or before July 15, 2013, are not subject to prepayment or redemption prior to their stated maturities. The principal installments of this Bond coming due after July 15, 2013, and the definitive Bonds for which this Bond may be exchanged that mature after July 15, 2013, are subject to prepayment or redemption at the option of the County prior to their stated maturities in whole or in part, on any date on or after July 15, 2013, upon payment of the prepayment or redemption prices (expressed as percentages of principal installments to be prepaid or the principal amount of the Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment or redemption: 8 Dates Prices July 15, 2013, through July 14, 2014 July 15, 2014, through July 14, 2015 July 15, 2015, and thereafter 101.0% 100.5 100.0 Provided, however, that the Bonds shall not be subject to prepayment or redemption prior to their stated maturities as described above without the prior written consent of the registered owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond Registrar to the registered owner by registered mail not more than ninety (90) and not less than sixty (60) days before the date fixed for prepayment or redemption. All acts, conditions and things required by the Constitution and laws 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 in due time, form and manner as so required, and this Bond, together with all other indebtedness of the County, is within every debt and other limit prescribed by the Constitution and laws of the Commonwealth of Virginia. IN WITNESS WHEREOF, the Board of Supervisors of the County of Albemarle, Virginia, has caused this Bond to be issued in the name of the County of Albemarle, Virginia, to be signed by its Chairman or Vice Chairman, its seal to be affixed hereto and attested by the signature of its Clerk of the Board or any of its Deputy Clerks, and this Bond to be dated ,2003. COUNTY OF ALBEMARLE, VIRGINIA (SEA ) ATTEST: Clerk, Board of Supervisors, County of Albemarle, Virginia Chairman, Board of Supervisors, County of Albemarle, Virginia ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns, and transfers unto (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: the within Bond and irrevocably constitutes and appoints attorney to exchange said Bond for definitive bonds in lieu of which this Bond is issued and to register the transfer of such definitive bonds on 'the books kept for registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed: (NOTICE: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Bond Registrar which requirements will include Membership or participation in STAMP or such other "signature guarantee program" as may be determined by Registered Owner (NOTICE: The signature above must correspond with the name of the Registered Owner as it appears on the front of this Bond in every particular, without alteration or change.) the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 10 EXHIBIT B PROJECT DESCRIPTION ADA Structural Changes - ADA compliance for all bleachers, lever hardware locks and other structural changes. $50,000 and will be completed by July 2004. facilities to include stadium The current projects will cost Henley Addition/Renovation - A 20,000 square foot addition to an existing middle school. Design fees of $600,000 were available in 2003 and construction fund in the mount of $3,833,000 is available in 2004. Construction is to be completed .in summer of 2005. Total project cost is $4,433,000.. Hollymead Gym/Restrooms - A new 7,000 square foot gym and 800 square feet of restrooms to be added to the existing elementary school. Construction is to begin summer of 2004. Total project cost is $857,000. Monticello High School Classroom Addition - An addition of 31,500 square feet to accommodate 300 additional students is being designed. Design fees of $933,000 were available in 2002 and construction funding in the amount of $4,512,000 is available in 2003. Construction is expected to be completed by the 2004/05 school year, with a total project cost of $5,445,000. Murray High School Renovations - The existing facility will be renovated to include general remodeling with a new heating/cooling system, replacement of all windows and site work. Design fees of $20,000 were available in 2003 and construction funding in the amount of $1,024,000 will be available in 2004. Total project cost is $1,209,000 and will be completed by July 2005. Scottsville Elementary Library Addition - A 3,000 square foot addition to the existing facility will provide additional library shelving space and auxiliary areas. Design fees of $75,000 were available in 2003 and construction funding in the amount of $420,000 will be available in 2004. Construction is anticipated to begin in the summer of 2004 and cOmpleted by fall of 2005. Total anticipated project cost is $495,000. Walton Middle School Addition - Renovation and addition to existing facilities to accommodate instructional program changes and upgrade systems. Design fees of $100,000 were available in 2002 and construction funding in the amount of $422,000 is available in 2003. The expected construction start date is summer of 2004 with a total project host of $522,000. Western Albemarle High School Weight/Wellness Room Addition - A 4,000 square foot building would be constructed to adjoin the existing auxiliary gymnasium to provide a weight/wellness room, a wrestling room and two restrooms. The expected construction start date is fall of 2003 w/th a total project cost of $293,000. Maintenance Projects - Funding for maintenance and replacement projects including a HVAC replacement and roof replacements. $1,100,000 of the 2003/04 projects will be funded through bonds. 11 SCHEDULE I DRAFT 7t15/2004 1/15/20O5 7/15/2005 1/15/2006 7/15/2006 1t15/2007 7/15/2007 1/15/2008 7/15/2008 1/15/2009 7t15/2009 1/15/2010 7115/2010 1/15/2011 7115/2011 1/1512012 7/15/2012 1/15/2013 7/15/2013 1/15/2014 7/15/2014 1/15/2015 7/1512015 1/15/2016 7115/2016 1/15/2017 7115/2017 1/15/2018 7/15/2018 1/15/2019 7~1512019 1/15/2020 7/15/2020 1/15/2021 7/15/2021 1/15/2022 7/15/2022 1/15/2023 7/15~2023 1/15/2024 7/1 5/2024 Debt Total Premium Grand Total DRAFT Albemarle County Non-Subsidized Local School Bond Principal Rate Interest Total Fiscal Total $365,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 360,000 0 $7,205,000.00 (O.Ol) $7,204,999.99 2.100% $206,555.88 145,485.00 2.100% 145,485.00 141,705.00 3.100% 141,705.00 136,125.00 3.100% 136,125.00 130,545.00 3.100% 130,545.00 124,965.00 4.100% 124,965,00 117,585.00 4.100% 117,585.00 110,205.00 4.100% 110,205.00 102,825.00 4,600% 102,825.00 94,545.00 4.600% 94,545.00 86,265.00 4.350% 86,265.00 78,435.00 4.450% 78,435;00 70,425.00 4.550% 70,425.00 62,235.00 4.650% 62,235.00 53,865.00 4.750% 53,865.00 45,315.00 4.850% 45,315.00 36,585.00 4.975% 36,585.00 27,630.00 5.050% 27,630.00 18,540.00 5.100% 18,540,00 9,360.00 5.200% 9,360.00 0.00 $571,555.88 145,485.00 505,485.00 141,705.00 501,705,00 136,125.00 496,125,00 130,545.00 490,545.00 124,965.00 484,965.00 117,585.00 477 585.00 110 205.00 470 205.00 102 825.00 462 825.00 94 545.00 454 545.00 86,265.00 446,265.00 78,435.00 438,435.00 70,425.00 430,425,00 62,235.00 422,235.0O 53,865.00 413,865.00 45,315.00 405,315,00 36,585.00 396,585,00 27,630.0O 387,630.00 18,540.00 378,540.00 9,360.00 369,360.00 0.00 $717,040.88 647,190.00 637,830.00 626,670.00 615,510.00 602,550.00 587,790.00 573,030.00 557,370.00 540,810.00 524,700.00 508,860.00 492,660.00 476,100~0O 459,180.00 441,900.00 424,215.00 406,170.00 387,900.00 369,360.00 $3,391,835.88 $10,596,835.88 Dated Date 1116/2003 VIRGINIA PUBLIC SCHOOL AUTHORITY BOND SALE AGREEMENT dated as of October 1, 2003 Name of Jurisdicti0n (the "Local Unit"): Sale Date: Not earlier than October 6, 2003, nor later than October 23, 2003 Closing Date: On or about November 6, 2003 Proceeds Requested: Maximum Authorized Par Amount: Amortization Period: 1. The Virginia Public School Authority ("VPSA") hereby offers to purchase your general obligation school bonds at a price, determined by the VPSA to be fair and accepted by you, that, subject to VPSA's purchase price objective and market conditions described below, is substantially equal to Proceeds Requested set forth above (as authorized by your bond resolution) from the proceeds of the VPSA's bonds. The sale of VPSA's bonds is tentatively scheduled for October 15, 2003 but may occur at any time during the period described above as the Sale Date. You acknowledge that VPSA has advised you that its objective is to pay you a purchase price for your bonds which in VPSA's judgment reflects their market value ("purchase price objective ")taking into consideration such factors as the amortization schedule you have requested for your bonds relative to the amortization schedules requested by the other localities for their respective bonds, the purchase price received by VPSA for its bonds and other market conditions relating to the sale of the VPSA's bonds. You further acknowledge that VPSA has advised you that such factors may result in your bonds having a value other than par and that in order to receive an amount of proceeds that is substantially equal to the ProceedS Requested you may need to issue a par amount of bonds that is greater than or lower than the Proceeds Requested. You at the request of VPSA, will issue an amount of the local school bonds not in excess of the Maximum Authorized Par Amount to provide, to the fullest extent practicable given VPSA's purchase price objective and market conditions, a purchase price for your bonds and a proceeds amount that is substantially equal to the Proceeds Requested. You acknowledge that the purchase price for your bonds will be less than the Proceeds Requested should the Maximum Authorized Par Amount be insufficient, based upon VPSA's purchase price objective and market conditions, to generate an amount of proceeds substantially equal to the Proceeds Requested. You represent that on or before October 1, 2003, your local governing body will have duly authorized the issuance of your bonds by adopting a resolution in the form attached hereta as Appendix B (the "local resolution") and that your bonds will be in the form set forth in the local resolution. Any changes that you or your counsel wish to make to the form of the local resolution and/or your bonds must be approved by the VPSA prior to adoption of the local resolution by your local governing body2~ You hereby covenant that you will comply with and carry out all of the provisions of the Continuing Disclosure Agreement in the form attached hereto as Appendix F, which agreement is hereby incorporated by reference herein and expressly made a part hereof for all purp. oses. The VPSA has defined a Material Obligated Person-("MOP") for purposes of the Continuing Disclosure Agreement as .any Local Issuer the principal amount of whose local school bonds pledged under VPSA's 1997 Resolution compromises more than 10% of the total principal amount 'of all outstanding 1997 Resolution bonds. MOP status will be determined by adding the principal amount of your local school bonds to be sbld to the VPSA and the principal amount of your local bonds previously sold to the VPSA and currently pledged under VPSA's 1997 Resolution and measuring the total against 10% of the face value of al~ bonds outstanding as of the Closing Date under VPSA's 1997 Resolution. If you are or may be a MOP, theVPSA will require that you file all the information described in the following paragraph prior to VPSA's distributing its Preliminary Official Statement, currently scheduled for October 3, 2003. You acknowledge that if you are, or in the sole judgment of VPSA may be, a MOP following the issuance of your local school bonds that are the subject of this Bond Sale Agreement, the VPSA will include by specific reference in .its Preliminary Official Statements and final Official Statements (for this sale and, if you remain a MOP or become a MOP again after ceasing to be a MOP, for applicable future sales) the information respecting you (''Your Information") that is on file with the Nationally Recognized Municipal Securities Information Repositories or their respective successors ("NRMSIRs") and the Municipal Securities Rulemaking Board or its successors ("MSRB"). Accordingly, if it appears that you will be a MOP (I) following the delivery of your local school bonds to the VPSA in connection with this sale, or (II) during the course of any future sale, whether or not you are a participant in such sale, you hereby represent and covenant to the VPSA that you will file such additional information, if any, .as is required so that Your Information, as of each of (I) the date of the VPSA's applicable Preliminary Official Statement (in the case of this sale, expected to be October 3, 2003), (II) the date of the VPSA's applicable f'mal Official Statement (in the case of this sale, expected to be October 15, 2003) and (lid the date of delivery of the applicable VPSA bonds (in the case of this sale, expected to be November 6, 2003), will be tree and correct and will not contain any untrue statement of a material fact or omit to state a material fact which should be included in Your Information for the purpose for which it is included by specific reference in VPSA's official statement or which is necessary to make the statements contained in such information, in light of the circumstances under The local resolution has been drafted for the issuance of bonds'by a County. Bond counsel will need to make appropriate changes in the local resolution for the issuance of bonds by a Ci-ty or Town. 2 which they were made, not misleading. You further agree to furnish to the VPSA a copy of all filings you make with NRMSIRs and the'MSRB subsequent to the date of this Agreement. Such copy will be furnished to. the VPSA on or before the day that any such filing is made. The VPSA will advise you within 60. days of the end of each fiscal year if you were a MOP as of the end. of such fiscal year. Upon written request, the VPSA will also advise you of your status as a MOP as of any other date. You hereby covenant that you will provide the certificate described in clause (e) of Section 4 beloW if VPSA includes Your Information by specific reference in its disclosure documents in connection with this sale or any future sale, whether or not you are a participant in such sale. ¢ VPSA's commitment to purchase your bonds is contingent upon (I) VPSA's receipt on the Closing Date of (a) your bonds which shall include and otherwise meet the Standard. Terms and Conditions contained in Appendix A hereto, (b) certified copies of the local resolution (see Appendix B attached hereto) and the school board resolution (see Appendix E attached beret, o), (c) an executed agreement, among VPSA, you and the other local units simultaneously selling their bonds to VPSA, the depository and the investment manager for the State Non-Arbitrage Program ("SNAP"), providing for the custody, investment and disbursement of the proceeds of your bonds and the other general obligation schoOl bonds, and the payment by you and the other local units of the allocable, associated costs of compliance with the Internal Revenue Code of 1986, as amended, and any costs incurred in connection with your participation in SNAP (the "Proceeds Agreement"), (d) an executed copy of the Use of Proceeds Certificate in the form attached hereto as Appendix C, (e) if the VPSA has included by specific reference Your Information into the VPSA Preliminary and final Official Statement, your certificate dated the date of the delivery of the VPSA's bonds to the effect that (i) Your Information was as of the date of the VPSA's Preliminary and final Official Statements, andis as of the date of the certificate, tree and correct and did not and does not contain an untrue statement of a material fact or omit to state a material fact which should be included in your Information for the purpose for which it is included by specific reference in VPSA's official statement or which is necessary to make the statements contained in such information, in light of the circumstances under which they were made, not misleading, and (ii) you have complied with your undertakings regarding the amendments adopted on November 10, 1994 to Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, (f) an approving legal opinion from your bond counsel in form satisfactory to VPSA as to the validity of the bonds and the exclusion from gross income for federal and Virginia income tax purposes of the interest on your bonds, the conformity of the terms and provisions of your bonds to the requirements of this Bond Sale Agreement including the appendices attached hereto, and the due authorization, execution and delivery of this Bond Sale Agreement, Continuing Disclosure Agreement and the Proceeds Agreement, and the validity of the Continuing Disclosure Agreement and the Proceeds Agreement, (g) a transcript of the other customary closing documents not listed above, and (h) the proceeds of VPSA's bonds, (II) if you will be using the proceeds of your bonds to retire a bond anticipation note, certificate of participation or other form of interim financing (the "Interim Security"), receipt by VPSA of (a) an opinion of your bond counsel that, as of the Closing Date, the 3 Interim Security will be paid in full or defeased according to the proVisions of the instrument authorizing the Interim Security (in rendering such opinion bond counsel may rely on a letter or certificate of an accounting or financial professional as to any mathematical computations necessary for the basis for such opinion) and Co) an executed copy of the escrow deposit agreement/letter of instruction providing for the retirement of the Interim Security and (IH) your compliance, with the terms of this agreement. Two complete transcripts (one original) of the documents listed above shall be provided by your counsel to the VPSA on the Closing Date or, with VPSA's permission, as soon as practicable thereafter but in no event more than thirty (30) business days after the Closing Date. 5. This Bond Sale Agreement shall take effect on October 1, 2003. Virginia Public School Authority Name of Jurisdiction: By: Authorized VPSA Representative By:. Name: Tire: 4 (For information only; not part of the Bond Sale Agreement.) Please have the presiding officer, or other specifically designated agent, of your governing body execute 2 (two) copies of this Bond Sale Agreement and return them, along with the tax questionnaire attached hereto as Appendix D, no later than close of business on October 1, 2003 to, Richard A. Davis,.. Public Finance Manager, Virginia Public School Authority, P. O. Box 1879, Richmond, Virginia 23218-1879 or by hand or courier service, James Monroe Building- 3rd Floor, 101 N. 14th Street, Richmond~ Virginia 23219. The VPSA recommends the use of an overnight delivery service to ensure timely arrival of your documents. If your governing body or bond counsel requires more than one originally signed Bond Sale Agreement, please send the appropriate number; all but one will be returned at dosing. APPENDIX A to the Bond Sale Agreement STANDARD TERMS AND CONDITIONS Described below are terms of the local school bonds which must be embodied in your bond resolution and bond form and other conditions which must be met in order for VPSA to purchase your local school bonds on the Closing Date. VPSA will not purchase local school bonds unless and until, such terms are present in the related bond resolution and bond form adopted by your governing body and such conditions are met. Interest and Principal Payments Your bonds will bear interest from the Closing Date~ set forth in the Bond Sale Agreement and will mature on July 15 of the years and in the amounts as established by VPSA. Your bonds will bear interest payable in installments due semiannually on January 15 and July 15. The first principal and interest installment will be payable on July 15, 2004. Your bonds will bear interest at rates 10 basis points (0.10%) above the actual rates on VPSA's bonds with corresponding principal payment dates. Payment For so long as the VPSA is the registered owner of your bonds, the paying agent and bond registrar therefor shall be a bank or trust company qualified to serve as such, and (ii) all payments of principal, premium, if any, and interest shall be made in funds that shall be immediately available to the VPSA on or before 11:00 A.M. on the applicable interest or principal payment date, or date fixed for. prepayment or redemption, or if such date is not a business day for banks in Virginia or for the Commonwealth, then on or before 11:00 A.M. on the business day preceding such scheduled due date. Overdue payments of principal and, to the extent permitted by law, interest shall bear interest at the applicable interest rates on your bonds. If VPSA does not purchase your local school bonds on the Closing Date due to your fault, VPSA will invest, in demand or overnight investments, the amount of its bond proceeds to be used to purchase your local school bonds. If you cure your failure to deliver your local school bonds within the sixty (60) day period following the Closing Date, the VPSA will purchase your local school bonds and your bonds will bear interest from the date of delivery and payment or other date satisfactory to the gPSA. You will, however, be required to pay to VPSA at your actual closing an amount equal to the positive difference, if any, between the amount of interest that wouM have accrued on your local school bonds from the Closing Date to your actual closing date and the lesser of the amount of interest income VPSA was able to earn, during such period, from the investment of its bond proceeds pending their use to purchase your bonds and the arbitrage yield on the VPSA's bonds. A-1 Prepayment or Redemption [Note: Local School Bonds purchased by VPSA as part of the 2003 Interest Rate Subsidy Program are not subject to redemption or prepayment. The following section applies to non-subsidized applicants only.] " Bonds willbe subject to redemption at the option of your governing body, subject to the consent of the VPSA or other registered owner. Your bond resolution shall provide for prepayment or redemption as follows: The bonds maturing after July 15, 2013 are subject to optional prepayment or redemption prior to maturity by [the issuer], from any available moneys, in whole or in part, on any date on or after July 15, 2013, at the following prepayment or redemption prices onthe following prepayment or redemption dates; plus accrued interest to the date fixed for prepayment or redemption: Dates Price July 15, 2013 through July 14, 2014 July 15, 2014 through July 14, 2015 July 15, 2015 and thereafter 101% 100½ 100 Provided, however, that the bonds shah not be subject to prepayment or redemption prior to their respective maturities except with the prior written consent of the registered owner. Notice of any such prepayment or redemption shall be given to the registered owner by registered mail at least 60, but not more than 90, days prior to the date fixed for prepayment or redemption. A-2 Security Your bonds must constitute valid and binding general obligations for .the payment of which the full faith and Credit of the local unit are irrevocably pledged, and all taxable property within the boundaries of the local unit must be subject to the levy of an ad valorem tax, over and above all other taxes and without limitation as to rate or amount, for the payment of the principal of, and premium, if any, and interest on the bonds to the extent other funds of the local unit are not lawfully available and appropriated for such purpose. Tax Matters You shall complete the Questionnaire attached hereto as Appendix D to the Bond Sale Agreement and send along with the Bond Sale Agreement for receipt no later than the close of business on October 1, 2003 to Richard A. Davis, Public Finance Manager, Virginia Public School Authority, either at P.O. Box 1879, Richmond, Virginia 23218-1879 or. if delivered by hand to the James Monroe Building- 3rd Floor, 101 N. 14th Street, Richmond, Virginia 23219. You shall execute the Use of Proceeds Certificate in the form provided in Appendix C attached to the Bond Sale Agreement for receipt by the VPSA at least three business days prior to the Closing Date.2 NO Composite Issue You will covenant not to sell, without VpSA's consent, any general obligation bonds which are part of the same common plan of financing (and payable from the same source of funds) as your local school bonds, during the period beginning 15 days in advance of and ending 15 days after VPSA's Sale Date. Request and Consent of County School Board3 Before the governing body of a County adopts the bond-resolution, the County School Board must first request, by resolution, the governing body to take such action. The County School Board must also consent to the issuance of bonds by the County. (See form of resolution in Appendix E attached hereto.) 2 VPSA requires that the Use of Proceeds Certificate be executed separately from the tax certificates pr. epared by your bond counsel. Your bond counsel may also prepare one or more tax certificates that contain some information found in the Use of Proceeds Certificate in addition to information such as your reasonable expectations as to meeting the requirements to any of the rebate exceptions. 3 Not applicable to cities and towns. (Section 15.2-2640, Code of Virginia) A-3 Public Heating and Notice Before the final authorization of your issuance of the bonds by the governing body, the governing body must hold a public hearing on the proposed issue unless the issuance of such bonds has been approved at referendum. The notice of the-hearing, meeting the requirements of Section 15.2-2606, Code of Virginia 1950, as amended, must be published once a week for 2 successive weeks (notices at least 7 days apart) in a newspaper published or having general circulation in your locality. The public hearing may not be held less than 6 nor more than 21 days after the date the second notice appears.in the newspaper. Delivery VPSA will accept delivery of your bonds only in the form of a single, typewritten, temporary bond,.in registered form, payable to VPSA. The form of the bond is included as Exhibit A to the resolution in Appendix B to the Bond Sale Agreement. On 20 days written notice from VPSA, you agree to deliver, at your expense, in exchange for the typewritten bond, on one or more occasions, one or more temporary bonds or definitive bonds in marketable form and, in any case, in fully registered form, in denominations of $5,000 and whole multiples thereof, and having the same aggregate principal amount and accruing intereSt at the same rates as the bonds surrendered in eXchange, as requested by VPSA. Comprehensive Annual Financial Report gnmually for the life of your bonds, you will be required to submit a copy of your locality's Comprehensive Annual Financial Report ("CAFR") or annual audited finaneial statements to the rating agencies referenced below: Moody's Investors Service, Inc. Public Finance Department Attention: Caroline Cruise 99 Church Street New York, New York 10007 Fitch Ratings Governmental Finance Attention: Claire G. Cohen One State Street Plaza New York, New York 10004 A-4 [Appropriate Changes Will Need to be Made for Cities and Townsl APPENDIX B to the Bond Sale Agreement Resolution No. RESOLUTION AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $ GENERAL OBLIGATION SCHOOL ~BONDS OF THE COUNTY OF ~ VIRGINIA, SERIES 2003 , TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND PROVIDING FOR THE FORM AND DETAILS THEREOF. WHEREAS, the Board of Supervisors (the "Board") of the County. of ., Virginia (the "County"), has determined that it is necessary and expedient to borrow not to exceed $ and to issue its general obligation school bonds for the purpose of financing certain capital projects for school purposes; and WHEREAS, the County [held/will hold] a public heating, duly noticed, on ,2003, on the issuance of the Bonds (as defined below) in accordance with the requirements of Section 15.2-2606, Code of Virginia 1950, as amended (the "Virginia Code"); and~ WHEREAS, the School Board of the County has, by resolution, requested the Board to authorize the issuance of the Bonds (as hereinafter defined) and consented to the issuance of the Bonds; and WHEREAS, the Bond Sale Agreement (as defined below) shall indicate that $ is the amount of proceeds requested (the "Proceeds Requested") from the Virginia Public School Authority (the "VPSA") in connection with the sale of the Bonds; and WHEREAS, the VPSA's objective is to pay the County a purchase price for the Bonds which, in VPSA's judgment, reflects the Bonds' market value (the "VPSA Purchase Price Objective"), taking consideration of such factors as the amortization schedule the County has requested for the Bonds relative to 'the amortization schedules requested by other localities, the purchase price to be received by VPSA for its bonds and other market conditions relating to the sale of the VPSA's bonds; and WHEREAS, such factors may result in the Bonds having a purchase price other than par and consequently (i) the County may have to issue a principal amount of Bonds that is greater than or less than the Proceeds Requested in order to receive an amount of proceeds that is substantially equal to the Proceeds Requested, or (ii) if the maximum authorized principal Omit and substitute appropriate recitative paragraph if bonds have been approved at referendum ~or to expressly elect to issue under the Public Finance Act pursuant to Section 15~2- 2601 without regard to provisions of a charter or local or special act. B-1 amount of the bonds set forth in section 1 below does not exceed the amount of the discount, the purchase .price to be paid to the County, given the VPSA Purchase Price Objective and market conditions, will be less than the Proceeds Requested. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF , VIRGINIA: 1. Authorization of Bonds and Use of Proceeds. The Board hereby determines that it is advisable to contract a debt and issue and sell its general obligation school bonds in an aggregate principal amount not to exceed $ 2 (the "Bonds") for the purpose of financing certain capital projects for school purposes as described in Exhibit B. The Board hereby authorizes the issuance and sale of the Bonds in the form and upon the terms established pursuant to this Resolution. 2. Sale of the Bonds. It is determined to be in the best interest of the County to accept the offer of the VPSA-to purchase from the County, and to sell to the VPSA, the-Bonds at a price, determined by the VPSA to be fair and accepted by the Chairman of the Board and the County [Administrator/Manager], or either of them [that is substantially equal' to the Proceeds Requested, except that the Bonds may be sold for a purchase price not lower than~95% of the Proceeds Requested if issuing the Bonds in the maximum principal amount authorized by Section 1 of this Resolution is insufficient, given the VPSA Purchase Price Objective and market conditions, to generate an amount of proceeds substantially equal to the Proceeds Requested]. The Chairman of the Board, the County [Administrator/Manager], or either of them and such officer or officers of the County as either may designate are hereby authorized' and directed to enter into a Bond Sale Agreement dated as of October 1, 2003, with the VPSA providing for the sale of the Bonds to the VPSA. The agreement shall be in substantially the form submitted to the Board at this meeting, which form is hereby approved (the "Bond Sale Agreement"). 3. Details of the Bonds. The Bonds shall be dated the date of issuance and delivery of the Bonds; shall be designated "General Obligation School Bonds, Series 2003__"; shall bear interest from the date of delivery thereof payable semi-annually on .each January 15 and JUly 15 beginning July 15, 2004 (each an "Interest Payment Date"), at the rates established in accordance with Section 4 of this Resolution; and shall mature on July 15 in the years (each a "Principal Payment Date") and in the amounts set forth on Schedule I attached hereto (the "Principal Installments"), subject to the provisions of Section 4 of this Resolution. 4. Interest Rates and Principal Installments. The County [Administrator/Manager] is hereby authorized and directed to accept the interest rates on the Bonds established by the VPSA, provided that each interest rate shall be ten one-hundredths of one percent (0.10%) over the interest rate to be paid by the VPSA for the corresponding principal payment date of the bonds to be issued by the VPSA (the "VPSA Bonds"), a portion of the proceeds of which will be used to purchase the Bonds, and provided further that the tree interest cost of the Bonds does not exceed five and sixty one-hundredths percent (5.60 %) per annum. The Interest Payment Dates and the Principal Installments are subject to change at the request of the VPSA. The County 105% of the amount of the Proceeds Requested is recommended; B-2 [Administrator/Manager] is hereby authorized and directed to accept changes in the Interest Payment Dates and the Principal .Installments at the request of the VPSA, provided that the aggregate principal amount of the Bonds shall not exceed the' amount authorized by this Resolution. The execution and delivery of the Bonds as described in Section 8 hereof shall conclusively evidence such interest rates established by the VPSA and Interest Payment Dates and the Principal Installments requested by the VPSA as having been so accepted as authorized by this Resolution. 5. Form of the Bonds. The Bonds shall be initially in the form of a single, temporary typewritten bond substantially in the form attached hereto as Exhibit A. 6. payment; Paying Agent and Bond Registrar. The following provisions shall apply to the Bonds: (a) For as long as the VPSA is the registered owner of the Bonds, all payments of principal, premium, if any, and interest on the Bonds shall be made in immediately available funds to the VPSA at, or before 11:00 a.m. on the applicable Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption, or if such date is not a business day for Virginia banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the business day next preceding such Interest Payment Date, Principal Payment Date or date fixed for prepayment or redemption. (b) All overdue payments of principal and, to the extent permitted by law, interest shall bear interest at the applicable interest rate or rates on the Bonds. (c) Paying Agent for the Bonds. Virginia, is designated as Bond Registrar and 7. Prepayment or Redemption. The Principal Installments of the Bonds held by the V~PSA coming due on or before July 1.5, 2013, and the definitive Bonds for which the Bonds held by the VPSA may be exchanged that mature on or before July 15, 2013, are not subject to prepayment or redemption prior to their stated maturities. The Principal Installments of the Bonds held by the VPSA coming due after July 15, 2013, and the definitive bonds for which the Bonds held by the VPSA may be exchanged that mature after July 15, 2013, are subject to prepayment or redemption at the option of the County prior to their stated maturities in whole or in part, on any date on or after July 15, 2013, upon payment of the prepayment or redemption prices (expressed as percentages of Principal Installments to be prepaid or the principal amount of the Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment or redemption: Dates Prices July 15, 2013 through July 14, 2014 July 15, 2014 through July 14, 2015 July 15, 2015 and thereafter 101% 100½ 100 Provided, however, that the Bonds shall not be subject to prepayment or redemption prior to their stated maturities as described above without first obtaining the written consent of the B-3 registered owner of the Bonds: Notice of any such prepayment or redemption shall be given by the Bond Registrar to the registered owner by registered mail not more than ninety (90) and not less than sixty (60)days befo?e the date fixed for prepayment or redemption. 8. Execution of the Bonds. The Chairman or Vice Chairman and the Clerk or any Deputy Clerk of the Board are authorized and directed to execute and deliver the Bonds and to affix the seal of the County thereto. 9. Pledge of Full Faith and Credit. For the prompt payment of the principal of and premium, if any, and the interest on the Bonds as the same shall become due, the full faith and credit of the County are hereby irrevocably pledged, and in each year while any of the Bonds shall be outstanding there shall be levied and-collected in accordance with law an annual a4 valorem tax upon all taxable property in the County subject to local taxation sufficient in amount to provide for the payment of the principal of and premium, if any, and the interest on the Bonds as such principal, premium, if any, and interest shall become due, which tax shall be without limitation as to rate or amount and in addition to all other taxes authorized to be levied in the County to the extent other funds of the County are not lawfully available and appropriated for such purpose. 10. Use of Proceeds Certificate and Certificate as to Arbitrage. The Chairman of the Board, the County [Administrator/Manager] and such officer or officers of the County as either may designate are hereby authorized and directed to execute a Certificate as to Arbitrage and a Use of Proceeds Certificate each setting forth the expected use and investment of the proceeds of the Bonds and containing such covenants as may be necessary in order to show compliance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and' applicable regulations relating to the exclusion from gross income of interest on the Bonds and on the VPSA Bonds. The Board covenants on behalf of the County that (i) the proceeds from the issuance and sale of the Bonds will be invested and expended as set forth in such Certificate as to Arbitrage and such Use of Proceeds Certificate and that the CoUnty shall comply with the other covenants and representations contained therein and (ii) the County shall comply with the provisions of the Code so that interest on the Bonds and on the VPSA Bonds will remain excludable from gross income for Federal income tax purposes. 11. State Non-Arbitrage Program; Proceeds Agreement. The Board hereby determines that~ it is in the best interests of the County to. authorize and direct the County [Treasurer/Director of Finance] to participate in the State NOn-Arbitrage Program in connection with the Bonds. The Chairman of the Board, the County [Administrator/Manager] and such officer or officers of the County as either may designate are hereby authorized and directed to execute and deliver a proceeds Agreement with respect to the deposit and investment of proceeds of the Bonds by and among the County, the other participants in the sale of the VPSA Bonds, the VPSA, the investment manager and the depository, substantially in the form submitted to the Board at this meeting, which form is hereby approved. 12. Continuing Disclosure Agreement. The Chairman of the Board, the County [Administrator/Manager] and such officer or officers of the County as either may designate are hereby authorized and directed to execute a Continuing Disclosure Agreement, as set forth in Appendix F to the Bond Sale Agreement, setting forth the reports and notices to be filed by the B-4 County and containing such covenants as may be necessary in order to show compliance with the provisions of the Securities and Exchange Commission Rule 15c2-12' and directed to make-all filings required by Section 3 of the Bond Sale Agreement should the County be determined by the VPSA to be a MOP (as defined in the Continuing Disclosure Agreement). 13. Filing of Resolution. The appropriate officers or agents of the County are hereby authorized and directed to cause a certified copy of this Resolution to be filed with the Circuit Court of the County. 14. Further Actions. The members of the Board and all officers, employees and agents of the County are hereby authorized to take such action as they or any one of them may consider necessary or desirable in connection with the issuance and sale of the Bonds and any such action previously taken is hereby ratified and confirmed. 15. Effective Date. This Resolution shall take effect immediately. The undersigned Clerk of the Board of Supervisors of the County of ~ Virginia, hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the Board of Supervisors held on ,2003, and of the whole thereof so far as applicable to the matters referred to in such extract. I hereby further certify that such meeting was a regularly Scheduled meeting and that, during the consideration of the foregoing resolution, a quorum was present. Members present at the meeting were: Members absent from the meeting were: Members voting in favor of the foregoing resolution were: Members voting against the foregoing resolution were: Members abstaining from voting on the foregoing resolution were: WITNESS MY }lAND and the seal of the Board of 'Supervisors of the County of , Virginia, this day of ,2003. [SEAL] Clerk, Board of Supervisoi:s of the County of ., Virginia B-5 NO. TR-1 EXHIBIT A (FORM OF TEMPORARY BOND) UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA COUNTY OF General Obligation School Bond Series 2003 [**] The COUNTY OF , VIRGINIA (the "County"), for value received, hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL AUTHORITY the principal amount of DoLLARs ($ ), in annual installments in the amounts set forth on Schedule I attached hereto payable on July 15, 2004 and annually on July 15 thereafter to and including July 15; [2023] (each a "Principal Payment Date"), together with interest from the date of this Bond on the unpaid installments, pa~vable semi, annually on January 15 and July 15 of each year, commencing on July 15, 2004 (each an "Interest Payment Date"; together with any Principal Payment Date, a "Payment Date"), at the rates per annum set forth on Schedule I attached hereto,, subject to prepayment or redemption as hereinafter provided. Both principal of and. interest on this Bond are payable in lawful money of the United States of America~ For as long as the Virginia Public School Authority is the registered owner of this Bond, , as bond registrar (the "Bond Registrar"), shall make all payments of principal, premium, if any, and interest on this Bond, without the presentation or sm'render hereof, to the Letter designation, if any. B-6 Virginia Public School Authority, in immediately available funds at or before 11:00 a.m. on the applicable Payment Date or date fixed for prepayment or redemption. If a Payment Date or date fixed for prepayment or redemption is not a business day for banks in the Commonwealth of Virginia or fOr the Commonwealth of Virginia, then the payment of principal, premium, if any, or interest on this Bond shall be made in immediately' available funds at or before 11:00 a.m. on the business day next preceding the scheduled Payment Date or date fixed for prepayment or redemption. Upon receipt by the registered owner of this Bond of said payments of principal, premium, if any, and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar, and the County shall be fully discharged of its obligation on this Bond to the extent of the payment so made. Upon final payment, this Bond shall be surrendered to the Bond Registrar for cancellation. The full faith and credit of the County are irrevocably pledged for the payment of the principal of and the premium, if any, and interest on this Bond. The resolution adopted by the Board of Supervisors authorizing the issuance of the Bonds provides, and Section 15.2-2624, Code of Virginia 1950, as mended, requires, that there shall be levied and collected an annual tax upon all taxable property in the County subject to local taxation sufficient to provide for the payment of the principal, premium, if any, and interest on this Bond as the same shall become due which tax shall be without limitation as to rate or amount and shall be in addition to all other taxes authorized to be levied in the County to the extent other funds of the County are nOt lawfully available and appropriated for such purpose. This Bond is duly authorized' and issued in compliance with and pursuant to the Constitution and laws of the Commonwealth of Virginia, including the Public Finance Act of 1991, Chapter 26, Title 15.2, Code of Virginia 1950, as amended, and resolutions duly adopted B-7 by the Board of County Supervisors of the County and the School Board of the County to provide funds for capital projects for school purposes. This Bond may be exchanged without cost, on twenty (20) days written notice from the Virginia Public School Authority, at the office of the Bond Registrar on one or more occasions for one or more temporary bonds or definitive bonds in marketable form and, in any case, in fully registered form, in denominations of $5,000 and whole multiples thereof, and having an equal aggregate principal amount, having principal installments or maturities'and bearing interest at rates corresponding to the maturities of and the interest rates on the installments of principal of this Bond then unpaid. This Bond is registered in the name of the Virginia Public SchoOl Authority on the books of the County kept by the Bond Registrar, and the transfer of this Bond may be effected by the registered owner of this Bond only upon due execution of an assignment by such registered owner. Upon receipt of such assignment and the'surrender of this Bond, the Bond Registrar shall exchange this Bond for definitive Bonds as hereinabove provided, such definitive Bonds to be registered on such registration books in the name of the assignee or assignees named in such assignment. The principal installments of this Bond coming due on or before July 15, 2013 and the definitive Bonds for which this Bond may be exchanged that mature on or before July 15, 2013, are not subject to prepayment or redemption prior to their stated maturities. The principal installments of this Bond coming due after July 15, 2013, and the definitive Bonds for which this Bond may be exchanged that mature after July 15, 2013, are subject to prepayment or redemption at the option of the County prior to their stated maturities in whole or in part, on any date on or after July 15, 2013, upon payment of the prepayment or redemption prices (expressed ' B-8 as percentages of principal installments to be prepaid or the principal amount ofthe Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment or redemption: Dates Prices July 15, 2013 through July 14, 2014 July 15, 2014 through July 14, 2015 July 15, 2015 .and thereafter 101% 100lA 100 Provided, however, that the Bonds shall not be subject to prepayment or redemption prior to their stated maturities as described above without the prior written consent of the registered owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond Registrar to the registered owner by registered mail not more than ninety (90) and not less than sixty (60) days before the date fixed for prepayment or redemption. All acts, conditions and things required by the Constitution and laws 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 in due time, form and manner as so required, and this Bond, together with all other indebtedness of the County, is within every debt and other limit prescribed by the Constitution and laws of the Commonwealth of Virginia. IN WITNESS WHEREOF, the Board of Supervisors of the County of has caused this Bond to be issued in the name of the County of ., Virginia, to be signed by its Chairman or Vice-Chairman, its seal to be affixed hereto and attested by the signature of its Clerk or any of its Deputy Clerks, and this Bond to be dated _, 2003. (SEAL) COUNTY OF , VIRGINIA ATTEST: Clerk, Board of Supervisors of the CoUnty of , Virginia Chairman, Board of Supervisors of the CoUnty of , Virginia B-9 ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: the within Bond and irrevocably constitutes and appoints attorney to exchange said Bond for definitive bonds in lieu of which this Bond is issued and to regiSter the transfer of such definitive bonds on the books kept for registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed: (NOTICE: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Bond Registrar which requirements will inclUde Membership or participation in STAMP or such other "signature guarantee program" as may be determined by Registered Owner (NOTICE: The signature above must correspond with the name of the Registered Owner as it appears on the front of this Bond in every particular, without alteration or change.) the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. B-10 APPENDIX C to the Bond Sale Agreement USE OF PROCEEDS CERTIFICATE [FOR NEW MONEY] The $ General Obligation School Bonds, Series 2003 (the "Bonds") issued by [Name of Local Unit] (the "Issuer") will be purchased by the Virginia Public School Authority ("VPSA") from the prOceeds of the VPSA's $ School Financing Bonds (1997 Resolution), Series 2003 C (the "VPSA's Bonds"), pursuant to a Bond Sale Agreement dated as of October 1, 2003. The proceeds of the Bonds will be used to acquire, construct and equip public school facilities owned and/or operated by the school board for the Issuer (the "School Board"). The Issuer and the School Board each recognize that certain facts, estimates and representations set forth in the Certificate as to Arbitrage executed by VPSA in connection with the issuance of the VPSA's Bonds must be based on the representations and certifications of the Issuer and the School Board, upon which VPSA and Sidley Austin Brown & Wood LLP, its bond counsel ("Bond Counsel") rely, and that the exclusion from gross income for federal income tax purposes of the interest on the VPSA's Bonds depends on the use of proceeds of the VPSA's and the Issuer'S Bonds. Accordingly, the Issuer and the School Board hereby covenant that: Section 1. Description of Project. The proceeds of the Bonds, including investment income thereon ("proceeds"), will be used to finance the acquisition, construction, and equipping of public school facilities of the Issuer (the "Project"). Section2. Governmental Use of Proceeds. The Issuer and the School Board covenant the following with respect to the use of proceeds of the Bonds and the facilities financed therewith: (a) In General. (i) Private Business Use. No more than ten percent (10%) of the proceeds of the Bonds or the Project (based on the greatest of: (A) the cost allocated on the basis of space occupied, (B) the fair market value, or (C) the actual cost Of construction) has been or, so long as the Bonds are outstanding, will be, used in the aggregate for any activities that constitute a "Private Use" (as such term is defined below in subsection (d) of this Section 2). (ii) Private Security or Payment. No more than ten percent (10%) of the principal of or interest on the Bonds, under the terms thereof or any underlying arrangement, has been, or, so long as the Bonds are outstanding, will be, directly or 'indirectly, (A) secured by any interest in (I) property used for a Private Use or (II) payments in respect of such property or (B) derived from payments in respect of property used or to be used for a Private Use, whether or not such property is a part ofthe Project. (b) No Disproportionate or Unrelated Use. With respect to private business use disproportionate to or not related to governmental use financed or refinanced with the proceeds of the Bonds, no more than five percent (5%) of the principal of or interest on such Bonds, under the terms thereof or any underlying arrangement, has been, or, so long as the C-1 Bonds are outstanding, will be, directly or indirectly, (x) secured by any interest in (I) property used for a Private Use or (II) payments in respect of such property or (y) derived from payments in respect of property used orto be used for a Private Use, whether or not such property is a part of the Project. (c) No Private Loan Financing. No proceeds of the Bonds will be used to make or finance loans to any person other than to a state or local governmental unit. (d) Definition of Private Use. For purposes of this Certificate, the term "Private Use" means any activity, that constitutes a trade or business that is carded on by persons or entities other than state or local governmental entities: Any activity carried on by a person other than a natural person is treated as a trade or business. The leasing of property financed or refinanced w/th the proceeds of the Bonds or the access of a person other than a state or local governmental unit to property or services on a basis other than as a member of the general public shall constitute Private Use unless the Issuer obtains an opinion of Bond Counsel to the contrary. Use of property financed or refinanced with proceeds of the Bonds by any person, other than a state or local governmental unit, in its trade or business constitutes general public use only if the property is intended to be available and is in fact reasonably available for use on the same basis by natural persons not engaged in a trade or business (''General Public' Use"). In most cases Private Use will occur only ifa nongovernmental person has a special legal entitlement to use the financed or refinanced property under an arrangement with the Issuer or the School Board. SuCh a special legal entitlement~ would include ownership or actual or beneficial use of the Project pursuant to a lease, management or incentive payment contract, output contract, research agreement or similar arrangement. In the case of property that is not available for General Public Use, Private Use may be established solely on the basis of a special economic benefit to one or more nongovernmental persons. In determining whether special economic benefit gives rise to Private Use, it is necessary to consider all of the facts and circumstances, including one or more of the following factors: (i) whether the financed or refinanced property is functionally related or physically proximate to property used in the trade or business of a nongovernmental person; (ii) whether only a small number of nongovernmental persons receive the economic benefit; and (iii) whether the cost of the financed or refinanced property is treated as depreciable by the nongovernmental person. As of the date hereof, no portion of the Project is leased (or will be so leased) by the Issuer or the School Board (or a related party or agent) to a person or entity other than a state or local governmental unit or to members of the general public for General Public Use. (e) Management and Service Contracts. With respect to management and service contracts, the determination of whether a particular use constitutes Private Use under this Certificate shall be determined on the basis of applying Revenue Procedure 97-13, 1997-1 C. B. 632, as modified by Revenue Procedure 2001-39, 2001-28 I.R.B. 38 (collectively, "Revenue C-2 Procedure 97-13"). As of the date hereof, no portion of the proceeds derived from the sale of the Bonds is being used to finance or refinance property subject to contracts or other arrangements with persons or entities engaged in a trade or business (other than governmental units) that involve the management of property or the provision of services with respect to property financed or refinanced with proceeds of the Bonds that does not comply with the standards of Revenue Procedure 97-13. For purposes of determining the nature of a Private Use, any arrangement that is properly characterized as a lease for federal income tax purposes is treated as a lease. Consequently, an arrangement that is referred to as a management or service contract may nevertheless be treated as a lease, In determining whether a management contract is properly characterized as a lease, it is necessary to consider all of the facts and circumstances, including the following factors: (i) the degree of control over the property that is exercised by a nongovernmental person; and (ii) whether a nongovernmental person bears risk of loss of the financed or refinanced property. Section 3. Time Test and Due Diligence Test. The Issuer or the School Board have incurred or will incur within 6 months of the date hereof substantial binding obligations, which are not subject to contingencies within the control of the Issuer or the School Board or a related party, to third parties to expend at least 5% of the net sale proceeds of the Bonds on the Project. The Issuer and the School Board will proceed with due diligence to spend all of the proceeds of the Bonds within three years of the date hereof. Section. 4. Dispositions and Change in Use. (a) No Sale or Disposition. The Issuer and the School Board expect to own and operate and do not expect to sell or otherwise dispose of the Project, or any component thereof, prior to the final maturity date of the VPSA's Bonds (August 1, [2023]). (b) No Change in Use. The Issuer and the School Board represent, warrant and covenant that the facilities financed or refinanced with proceeds of the Bonds will be used for the governmental purpose of the Issuer and the School Board during the period of time the Bonds are outstanding, unless an opinion of Bond Counsel is received with respect to any proposed change in use of the Project. Section 5. No Sinking or Pledged Funds. The Issuer and the School Board have not established and will not establish any funds or accounts that are reasonably expected to be used to pay debt service on the Bonds or that are pledged (including negative pledges) as collateral for the Bonds for which there is a reasonable assUrance that mounts on deposit therein will be available to pay debt service on the Bonds if the Issuer or the School Board encounters financial difficulty. C-3 Section 6. No. Replacement Proceeds. (a) In General. No portion of the proceeds of the Bonds will be used as a substitute for other funds that prior to the Issuer's resolving to proceed with the issuance of the Bonds was used or is to be used to pay any cost of the Project. (b) Safe Harbor. In accordance with Section 1.148-1(c) of the Treasury Regulations regarding the safe harbor against the creation of "replacement proceeds", as of the date hereof, the weighted average maturity of the Bonds does not exceed 120% oft he reasonably expected economic life of the Project financed thereby. Section 7. No Refunding. The proceeds of the Bonds will not be used to provide for the payment of any principal of or interest on any obligations of the Issuer, other than the Bonds, incurred in the exercise of its borrowing power. Section 8. Composite Issue. There are no other obligations of the Issuer that have been, or will be (a) sold within 15 days of the Bonds, (b) sold pursuant to the same plan of financing together with the Bonds, and (c) paid out of substantially the same source of funds as the Bonds. Section 9. No Federal Guarantee. The Issuer and the School Board shall not take or permit any action that would cause (a) the payment of principal of or interest on the Bonds to be guaranteed, directly or indirectly, in whole or in part by the United States or any agency or instrumentality thereof or (b) 5 percent or more 'of the proceeds of the Bonds to be (i) used in making loans the payment of principal of or interest on which is guaranteed in whole or in part by the United States or any agency or instrumentality thereof or (ii) invested directly or indirectly in federally insured deposits or accounts (except as permitted under Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"), or the regulations promulgated thereunder). The Issuer and the School Board have not, and will not enter into, any (i) long-term service contract with any federal governmental agency, (ii) service contract with any federal governmental agency under terms that. are materially different from the terms of any contracts with any persons other than federal government agencies, and (iii) lease of property to any federal government agency that would cause the Bonds to be considered "federally guaranteed" within the meaning of Section 149(b) of the Code. Section 10. No Hedge Bonds. The Issuer and the School each reasonably expects-that all of the net sale proceeds of the Bonds will be used to pay the cost of the Project within three years of the date hereof, Furthermore, not more than 50 percent of the proceeds of the Bonds will be invested in Nonpurpose Investments (as such term is definedin Section 148(f)(6)(A) of the Code) having a substantially guaranteed y/eld for four years or more. Section 11. No Overissuance. The total proceeds derived by the Issuer from the sale of the Bonds and anticipated investment earnings thereon do not exceed the 'total of the amounts necessary to finance the Project. Section 12. Reimbursable Expenses. A portion of the proceeds of the Bonds to be applied to the cost of the Project will be used to reimburse the Issuer for expenditures incurred thereby with respect to the Project in anticipation of the issuance of the Bonds. The Issuer and C-4 the School Board represent the following with respect to the costs of the Project to be reimbursed from the proceeds of the Bonds. (a) Official Intent. The total amount of reimbursed costs incurred by the Issuer with respect to the Project is not expected to exceed $ . Such expenditures were paid prior to the date hereof but no earlier than sixty (60) days prior to , __., which is the date the Issuer or the School Board adopted its "official intent" declaration (the "Official Intent Declaration") in accordance with Section 1.150-2 of the Treasury Regulations. The Official Intent Declaration: (i) was, on the date of its adoption, intended to constitute a written documentation on behalf of the Issuer that states ~that the Issuer reasonably expected to reimburse itself for such expenditures with the proceeds of a taxable or tax-exempt borrowing, (ii) set forth a general description of the Project, and (iii) stated the maximum principal amount of debt expected to be issued for the Project. Neither the Issuer nor the School Board has taken any action subsequent to the expression of such intent that would contradict or otherwise be inconsistent with such intent. (b) Reasonable Official Intent. As of the date of the Official Intent Declaration, the Issuer reasonably expected to reimburse such expenditures with the proceeds of a borrowing. The Issuer does not have a pattern of fa/ling to reimburse expenditures for which an intention to reimburse such expenditures was declared and which were actually paid by the Issuer other than in circumstances that were unexpected and beyond the control of the Issuer. (c) Reimbursement Period Requirement. The proceeds derived from the sale of the Bonds to be applied to reimburse the above-described expenditures will be so applied no later than the later of the date that is (i) eighteen (18) months after the date on which the expenditure being reimbursed was paid, or (ii) eighteen (18) months after the date on which the portion of the Project to which such expenditure relates was placed in service (within the meaning of Section 1.150-2 of the Treasury Regulations) or abandoned. The Issuer shall not, however, use Bond proceeds to reimburse the above-described expenditures later than three (3) years after the date the original expenditure was paid. (d) Reimbursable Expenditures. The expenditures to be reimbursed are either (i) capital expenditures (within the meaning of Section 1.150-1 (b) of the Treasury Regulations), (ii) costs of issuance, (iii) certain Working capital expenditures for extraordinary, nonrecurring items that are not customarily payable from current revenues (Within the meaning of Section 1.148-6 (d) (3) (ii) (B) of the Treasury Regulations), (iv) grants (within the meaning of Section 1.148-6 (d) (4) of the Treasury Regulations), or (v) qualified student loans, qualified mortgage loans or qualified veterans' mortgage loans (within the meaning of Section 1.150-1(b) of the Treasury Regulations). None of the expenditures to be reimbursed were incurred for day-to-day operating costs or similar working capital' items. C-5 No portion of the proceeds of the Bonds being used to reimburse the Issuer for prior expenditures will be used~ directly or indirectly, within one year of the date of a reimbursement allocation, in a manner that results in the creation of replacement proceeds (within the meaning of Section 1.148-1 of the Treasury Regulations), other than amounts deposited in a bona fide debt service fund. (e) Anti-Abuse Rules. None of the proceeds of the Bonds is being used in a manner that employs an abusive arbitrage device under Section 1.148-10 of the Treasury Regulations to avoid the arbitrage restrictions or to avoid the restrictions under Sections 142 through 147 of the Code. Section 13. Private Activity Covenants. The Issuer and the School Board each represents, warrants and covenants that it will take no action that would cause either the Bonds or the VPSA's Bonds t°` be private activity bonds within the meaning of Section 141(a) of the Code and that it will not fail to take any action that would prevent the VPSA's Bonds and the Bonds from being private activity bonds, within the meaning of Section 141(a) of the Code. Furthermore, the Issuer and the School Board have established reasonable procedures to ensure compliance with this covenant. Section 14. Covenant as to Arbitrage. The Issuer and the School Board each represents, warrants and covenants that whether or not any of the Bonds remain outstanding, the money on deposit in any fund or account maintained in connection with the Bonds, whether or not such money was derived from the proceeds of the sale of the Bonds or from any other sources, will not be used in a manner that would cause the Bonds or the VPSA's Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the applicable regulations thereunder. Section 15 Tax Covenant. The Issuer and the School Board each represents, warrants and covenants that it will not take any action which will, or fail to take any action which failure will, cause the interest on the Bonds or the VPSA's Bonds to become includable in the gross income of the owners of the Bonds or the VPSA's Bonds for federal income tax purposes pursuant to the provisions of the Code and the regulations promulgated thereunder in 'effect on the date of original issuance of the Bonds and the VPSA's Bonds. Date: [NAME OF LOCAL ISSUER] By: Name: Title: [NAME OF SCHOOL BOARD] By: Name: Title: C-6 APPENDIX D to the Bond Sale Agreement CONSTRUCTION EXCEPTION AND EIGHTEEN-MONTH EXCEPTION TO THE REBATE REQUIREMENT QUESTIONNAIRE The purpose of this questionnaire is to elicit facts concerning the expenditure of the proceeds of the City/County of (the "Issuer") general obligation school bonds (the "Bonds") in order to .make an initial determination that the construction exception from the rebate requirement provided by Section 148(f)(4)(C) of the Internal Revenue Code of 1986, as amended, or the eighteen month exception from the rebate requirement provided by Section 1.148-7(d) of the Treasury Regulations is available. Please supply the information requested below and send this questionnaire to Richard A. Davis, Public Fin~ance Manager, Virginia Public School Authority, P. O. Box 1879, Richmond, Virginia 23218-1879, for receipt no later October 1, 2003, with a copy to your bond counsel. Briefly describe the project (the "Project")to be financed with the proceeds of the Bonds including the useful life of the. project(s) being financed. (a) Indicate the total amount of proceeds to be derived from the sale of the Bonds. (b) Indicate the amount that you reasonably expect to receive from the investment of the Bond proceeds prior to spending all of the Bond proceeds set forth above in Question 2 (a). (c) Indicate the amount of proceeds derived from the sale of the BondS that you expect to use to finance the issuance costs of the Bonds. (e.g.. your legal fees) (d) The amount set forth in Questions 2(a) plus the amount set forth in Question 2(b) reduced by the amount set forth in Question 2(c) equals $ This amount is hereinafter referred to as "Available Construction Proceeds". Any bond D-1 premium derived from sale of the bonds and any investment earnings thereon will be treated as Available Construction Proceeds. Indicate the amount of money, other than the Available Construction Proceeds of the Bonds, that will be applied toward the cost of the Project and the expected source of such money. Indicate what such money will be used for. Indicate, by principal components, your current estimates of the cost for the acquisition and construction of the Project that will be financed with the Available Construction Proceeds of the Bonds, including: (a) Acquisition of Interest in Land (b) Acquisition of Interest in Real Property (c) Acquisition and/or Installation of Tangible Personal Property2 (d) Site Preparation (e) Construction of Real Property~ (f) Reconstruction of Real Property4 (g) Rehabilitation of Real Property5 (h) Construction of Tangible Personal Prop_erty (i) Specially developed computer software ¥ (j) Interest on the Bonds during Construction (k) Other (please-specify) (1) Total $ (Note: The sum of the amounts described in (a) through (k) must equal the amount of Available Construction Proceeds of the Bonds set forth in Question 2(d).) 1-7 See the Endnotes on pages D-7 and D-8; 5. (a) Have you borrowed, directly or indirectly,~ (such as through an industrial development authority) any money, either through a tax-exempt bank loan, a bond anticipation note, any tax-exempt or taxable obligation or otherwise (a "loan"), to pay for the Project costs? Yes No Do you intend to use the proceeds of the Bonds to refinance or repay any loan used to finance the Project costs? Yes No D-2 (c) If the answer to Question 5(b) is "Yes", please attach a copy of the BAN, COP, or other evidence of the loan and any tax certificate executed with such loan and indicate the following: 6) (ii) (iiO (v) (hi) (viii) ~amaount of loan: Date of loan: Maturity date of loan: Interest rate of loan: Name of lender: Refinance or repayment date: Amount of unspent proceeds, if any: Where unspent proceeds are being held (e.g. SNAP): (d) If the answer to question 5(a) or (b) is "Yes", did you Use the proceeds of the loan to reimburse yourself for expenses paid with respect to the Project before the loan was obtained? Yes No (e) If the answer to question 5(b) is "Yes", do you expect to qualify for the small issuer exception for the loan. (a) Do you intend to reimburse yourself from the proceeds of the Bonds for Project costs advanced from your General Fund or other available sources? Yes No If the answer to Question 5(d) or Question 6 (a) is "Yes", with respect to all such expenditures, please indicate the amount of such expenditure, when such expenditure was paid and the purpose of the expenditure (i.e., architectural fees, engineering fees, other construction costs): (i) Amount expended $ (ii) Date of expenditure: (iii) Purpose of expenditure: (Note: if you intend to reimburse yourself for more than one expenditure, please attach a rider setting forth: (i) amount expended, (ii) date of expenditure, and (iii) purpose of expenditure) If the answer to Question 5(d) or 6(a) is ''Yes" please attach a copy of any other evidence of your intention to reimburse yourself with the proceeds of a borrowing such as the earliest possible resolution, declaration or minutes of a meeting. Include the date such resolution was adopted, meeting was held or declaration made. D-3 [The 'purpose of questions 8, 9 and 10 is to determine if the Bonds may qualify for the Construction Exception from the Rebate Requirement.] Indicate whether the total of the amounts shown in 4(d) through (i) on page D-2 is at least 75% of the amount of Available Construction Proceeds (i.e., 75% of the amount in 4(i). Yes No If the answer to Question 8 is "Yes", answer QueStion 9 and skip Question 10. If the answer to Question 8 is "No", skip Question 9 and answer Question 10. 9. (a) Assuming the Bonds are delivered on November 6, 2003 and funds are made available to you on that date, please complete the following schedule indicating the amount of Available Construction Proceeds that the City/County expects to expend and disburse during the following time periods: From November 6, 2003 to May 6, 2004 From May 7, 2004 to November 6, 2004 From November 7, 2004 to May 6, 2005 From May 7, 2005 to November 6, 2005 Total9 8 and 9 See the Endnotes on page D-8. $ 8 Co) If you do. not expect to spend 100% of Available Construction Proceeds by November 6, 2005~ do you expect to spend 100% of Available COnstruction Proceeds by November 6, 2006? Yes No 10. For purposes of this Question 10, assume that the Bonds are delivered on November 6, 2003 and funds are made available to you on that date. (a) Does the City/County expect to expend and disburse the amount shown in Question 4(a) for the acquisition of land by May 6, 2004? Yes No (b) Does the City/County expect to expend and disburse the amount shown in Question 4(b) for the acquisition of interests in real property by May 6, 2004? Yes No (c) Does the City/County expect to expend and disburse the amount shown in Question 4(c) for the acquisition and/or installation of tangible personal Property by May 6, 2004? Yes No D-4 (d) (i) Does the City/County expect to expend and disburse the mount shown in question 4(1) by November 6, 2006? Yes No (ii) Assuming that the Bonds are delivered on November 6, 2003, and funds are made available to you on that date, please complete the following schedule indicating the amount of Available Construction Proceeds that the City/County expects to expend and disburse during the following time periods: From November 6, 2003 to. May 6, 2004 From May 7, 2004 to November 6, 2004 From November 7, 2004 to May 6, 2005 From May 7, 2005 to November 6, 2005 $ 1 Total $ 10 See the Endmotes on page D-8. [The purpose of question 11 is to determine ffthe Bonds may qualify for the Eighteen Month Exception from the-Rebate Requirement.] 11¸. The sum of the amounts set forth in Questions 2(a) and 2(b) equals $ (the "gross-proceeds"). Assuming that the Bonds are delivered on November 6, 2003 and funds are made available to you on that date, please complete the following schedule indicating the amount of gross proceeds that the City/County expects to expend and disburse during the following time periods: From November 6, 2003 to May 6, 2004 From May 7, 2004 to November 6, 2004 From November 7, 2004 to May 6, 2005 $ 11 Total $ 12. (a) Will this issue qualify for the Small Issuer Exception? Yes No Co) List any general obligation bond financings the City/County has undertaken or is planning to undertake in the calendar year 2003. D-5 I understand that the foregoing information will be relied upon by the Virginia Public School Authority (the "Authority") in determining the applicability of the construction exception to the Authority's School Financing Bonds (1997 Resolution), Series 2003 C. I hereby certify that I am familiar with the Project or have made due inquiry in order to complete this Questionnaire w/th respect to the Project and am authorized by the City/County.to provide the foregoing information with respect to it, which information is tree, correct, and complete, to the best of my knowledge. Name of Person Completing Questionnaire Title Signature Date D-6 ENDNOTES For purposes of this queStionnaire, "real property" means improvements to land, such as buildings or other inherently permanent structures, including items that are structural components of such buildings or structures. For example, real property includes wiring in a building, plumbing systems, central heating or central air conditioning systems, pipes'or ducts, elevators or escalators installed in a building, paved parking areas, road, wharves and docks, bridges and sewage lines. For purposes of this questionnaire, tangible personal property means any tangible property except real property. For example, tangible personal property includes machinery that is not a structural component of a building, fire trucks, automobiles, offiCe equipment, testing equipment and fUrnishings. See description of real property in endnote 1. This includes all capital expenditures that are properly chargeable to or may be capitalized as part of the basis of the real property prior to the date the property is placed in service. For purposes of this questionnaire, expenditures are considered paid in connection with the construction, reconstruction or rehabilitation of real property if the contract between the Issuer and the seller requires the seller to build or install the property (such as under a "turnkey contract") but only to the extent the property has not been built or installed at the time the parties enter into the contract. If the property has been partially built or installed at the time the parties enter into the contract, the expenditures that are allocable to the portion of the property built or installed before that time are expenditures for the acquisition of real property. See endnote 3. See endnote 3. For purposes of this questionnaire, expenditures are in connection with the construction of tangible personal property, as defined in endnote 2, if: (a) A substantial portion of the property or properties is completed more than 6 months after the earlier of the date construction or rehabilitation commenced and the date the Issuer entered into an acquisition contract; (b) Based on the reasonable expectations of the Issuer, if any, or representations of the person constructing the property, with the exercise of due diligence, completion of construction or rehabilitation (and delivery to the Issuer) could not have occurred within that 6-month period; and (c) If the Issuer itself builds or rehabilitates the property, not more than 75% of the capitalizable cost is attributable to property acquired by the Issuer (e.g., components, raw materials and other Supplies). Specially developed computer software means any programs or routines used to cause a computer to perform a desired task or set of tasks, and the documentation required to D-7 o describe and maintain those programs, provided that the sofb~vare is specially developed and is functionally related and subordinate to real property or other constructed personal property. Include amounts expended prior to November 6, 2003 and approved by your bond counsel for reimbursement from your bond proceeds. This does not include any amount used to refinance or repay any loan. Total should equal the amount in 4(1). Include amounts expended prior to November 6, 2003 and approved by your bond counsel for reimbursement from your bond proceeds. This does not include any amount used to refinance or repay any loan. D-8 APPENDIX E to the Bond Sale Agreement RESOLUTION REQUESTING THE BOARD OF SUPERVISORS TO ISSUE GENERAL OBLIGATION SCHOOL BONDS FOR SCHOOL PURPOSES AND CONSENTING TO THE ISSUANCE THEREOF BE IT RESOLVED: 1. The School Board of the County of hereby (i) requests, pursuant to Section 15.2-2640 of the Code of Virginia, 1950, as amended (the "Code"), that the Board of Supervisors of the County of issue its general obIigation school bonds in an aggregate principal amount not to exceed $ (the "Bonds") for the purpose of financing certain capital projects for school purposes and (ii) consents, pursuant to Section 15.2- 2638.B(iii) of the Code and Article VII, Section lO(b) of the Constitution of Virginia, to the issuance of the Bonds. 2. This resolution shall take effect immediately. Members present at the meeting were: meeting were: Members absent from the Members voting in favor of the foregoing resolution were: Members voting against the foregoing resolution were: · Members abstaining from voting on the foregoing resolution were: E-1 APPENDIX F to the Bond Sale Agreement CONTINUING DISCLOSURE AGREEMENT [This Continuing Disclosure Agreement will impose obligations on the Local Issuer if and only if the Local Issuer is or has become and remains a "Material Obligated Person", as defined below] This Continuing Disclosure Agreement (the "Disclosure Agreement")is executed and delivered by the undersigned local issuer (the "Local Issuer") in connection with the issuance by the Virginia Public School Authority (the "Authority") of $ aggregate principal amount of its School Financing Bonds (1997 Resolution) Series 2003 C (the "Series 2003 C Bonds") pursuant to the provisions of a bond resolution (the "1997 Resolution") adopted on October 23, 1997, as amended and restated. The Series 2003 C Bonds and all other parity bonds heretofore and hereafter issued under the 1997 Resolution are collectively called the "Bonds". A portion of the proceeds of the 2003 Series C Bonds are being used by the Authority to purchase certain general obligation school bonds ("Local School Bonds") of the Local Issuer pursuant to a bond sale agreement between the Authority and the Local Issuer (the "Bond Sale Agreement"). Pursuant to paragraph 3 of the Bond Sale Agreement, the Local Issuer hereby covenants and agrees as follows: SECTION 1. Purpose of the Disclosure. Agreement. ThiS Disclosure Agreement is being executed and delivered by the Local Issuer for the benefit of the holders of the Series 2003 C Bonds and in order to assist the Participating Underwriters (defined below) in complying with the RUle (defined below). The Local Issuer acknowledges that it is undertaking primary responsibility for any reports, notices or disclosures that may be required under this Agreement. SECTION 2. Defirdtions. In addition to the definitions set forth in the 1997 Resolution, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Local Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "bond sale agreement" shall mean the Bond Sale Agreement and any other comparable written commitment of the Local Issuer to sell local school bonds to the Authority. "Dissemination Agent" shall mean the Local Issuer, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by such Local Issuer and which has filed with such Local Issuer a written acceptance of such designation. "Filing Date" shall have the meaning given to such term in Section 3 (a) hereof. "Fiscal Year" shall mean the twelve-month period at the end of which financial position and results of operations are determined. Cu/rently, the Local Issuer's Fiscal Year begins July 1 and continues through June 30 of the next calendar year. F-1 "holder" shall mean, for purposes of this Disclosure Agreement, any person who is a record owner or beneficial owner of a Series 2003 C Bond: "Listed Events". shall mean any of the events listed in subsection 5(b)(5)(i)(C) of the Rule. "local school bonds" shall mean any of the Local School Bonds and any other bonds of the Local Issuer pledged as security for Bonds issued under the Authority's 1997 Resolution. "Material Obligated Person" (or' "MOP") shall mean the Local Issuer if it has local school bonds outstanding in an aggregate principal amount that exceeds 10% of the aggregate principal amount of all outstanding Bonds of the Authority. '~ational Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. "Participating Underwriter" shall mean any of the original underwriters of the Authority's Series 2003 C Bonds required to comply with the Rule in connection with the offering of such Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12 adopted by the Securities and' Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository"shall mean any public or private depository or entity designated by the State as a state depository for the purpose of the Rule. As of the date of this Agreement, there is no State Repository. SECTION 3. Provision of Annual Reports. (a) The Local Issuer shall, or shall cause the Dissemination Agent to, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. Such Annual Report shall be filed on a date (the "Filing Date") that is not later than 12 months after the end of any Fiscal Year (commencing with its Fiscal Year ended June 30, 2004) as of the end of which such Local Issuer was a MOP, unless as of the Filing Date the Local Issuer is no longer a MOP.~ Not later than ten (10) days prior to the Filing Date, the Local Issuer shall provide the Annual Report to the Dissemination Agent (if applicable) and shall provide copies to the Authority. In each case, the Annual Report (i) may be submitted as a single document or as separate documents comprising a package, (ii) may cross-reference other information as provided in Section 4 of this Disclosure Agreement and (iii) shall include The Authority will covenant in the Bond Sale Agreement to advise the Local Issuer within 60 days of the end of each Fiscal Year if such Local Issuer was a Material Obligated Person as of the end of such Fiscal Year. Upon written request, the Authority will also'advise the Local Issuer as to its status as a MOP as of any other date. F-2 the Local Issuer's audited financial statements prepared in accordance with applicable State law or, if audited financial statements are not available, such unaudited financial statements as may be required by the Rule. In any event, audited financial statements of such Local Issuer must be submitted, if and when available, together with or separately from the Annual Report. (b) If the Local Issuer is unable to provide an Annual Repo~ to the Repositories by the date required in subsection (a), the Local Issuer shall send a notice to the Municipal Securities Rulemaking Board and any State Repository in substantially the form attached hereto as Exhibit A. SECTION 4. Content of Annual Reports. Except as otherwise agreed, any Annual Report required to be filed hereunder shall contain or incorporate by reference, at a minimum, annual financial information relating to the Local Issuer, including operating data, updating such information relating to the Local Issuer as shall have been included or cross-referenced in the final Official Statement of the Authority. describing the Authority's Series 2003 C Bonds or (ii) if there is no such information described in clause (i), updating such information relating to the Local Issuer as shall have been included or cross-referenced in any comparable disclosure document of the Local Issuer relating to its tax-suppOrted obligations or (iii) if there is no such information described in clause (i) or (ii)above, initially setting forth and then updating the information referred to in Exhibit B as it relates to the Local Issuer, all with a view toward assisting Participating Underwriters in complying with the Rule. Any or all of such information may be incorporated by reference from other documents, including official statements of securities issues with respect to which the Local Issuer is an "obligated person" (within the meaning of the Rule), which have been filed with'each of the Repositories or the Securities and Exchange Commission. If the document incorporated by reference is a f'mal official statement, it must be available from the Municipal Securities Rulemaking Board. The Local Issuer shall clearly identify each such other document so incorporated by reference. SECTION 5. Reporting of Listed Events. Whenever the Local Issuer is a Material Obligated Person required to file Annual Reports pursuant to Section 3 (a) hereof and obtains knowledge of the occurrence of a Listed Event, and if such Local Issuer has determined that knowledge of the occurrence of a Listed Event with respect to its local school bonds would be material, such Local Issuer shall promptly file a notice of such occurrence with each National Repository or the Municipal Securities Rulemaking Board and each State Repository, if any, with a copy to the Authority. SECTION 6. Termination of Reporting Obligation. The Local Issuer's obligations under this Disclosure Agreement shall terminate upon the earlier to occur of the legal defeasance or final retirement of all the Local School Bonds. F-3 SECTION 7. Dissemination Agent. The Local Issuer may, from time to time, appoint or engage a Dissemination Agent to-assist it in Carrying out its obligations under this Disclosure Agreement and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Local Issuer shall advise the Authority of any such appointment or discharge. If at any time there is not any other designated Dissemination Agent, the Local Issuer shall be the Dissemination Agent. [The initial Dissemination Agent shall be .] SECTION 8. Amendment. Notwithstanding any other provision of this Disclosure Agreement, the Local Issuer may amend this Disclosure Agreement, if such amendment has been approved in writing by the Authority and is supported by an opinion of independent counsel, acceptable to the Authority, with expertise in federal securities laws, to the effect that such amendment is permitted or required by the Rule. SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Local Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Local Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is specifically required by this Disclosure Agreement, such Local Issuer shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. Any person referred to in SectiOn 11 (other than the Local Issuer) may take such action as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Local Issuer to file its Annual Report or to give notice of a Listed Event. The Authority may, and the holders of not less than a majority in aggregate principal amount of Bonds outstanding may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to challenge the adequacy of any information provided pursuant to this Disclosure Agreement, or to enforce any other obligation of the Local Issuer hereunder. A default under this Disclosure Agreement shall not be deemed an event of default under the applicable resolution or bonds of the Local Issuer, and the sole remedy under this Disclosure Agreement in the event of any failure of the Local Issuer to comply herewith shall be an action to compel performance. Nothing in this provision shall be deemed to restrict the rights or remedies of any holder pursuant to the Securities Exchange Act of 1934, the rules and regulations promulgated thereunder, or other applicable laws. SECTION 11. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Authority, the Local Issuer, the Participating Underwriters, and holders from time to time of the Authority's Bonds, and shall create no rights in any other person or entity. F-4 SECTION 12. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Date: [LOCAL ISSUER] By. F-5 NOTICE OF FAILURE TO FILE ANNUAL REPORT [AUDITED FINANCIAL STATEMENTS] EXHIBIT A Re: VIRGINIA PUBLIC SCHOOL AUTHORITY SCHOOL FINANCING BONDS (1997 Resolution) SERIES 2003 C CUSIP Numbers. Dated: November 1, 2003 Name of Local Issuer NOTICE IS HEREBY GIVEN that the [Local Issuer] has not provided an Annual Report as required by Section 3(a) of the Continuing Disclosure Agreement, which was entered into in connection with the above-named bonds issued pursuant to that certain Series Resolution adopted on [September 24, 2003 ], by the Board of Commissioners of the Virginia Public School Authority, the proceeds of which were used to purchase $ ~School Bonds] of the [Local Issuer]. [The Local Issuer anticipates that the Annual Report will be filed by .] The Local Issuer is a material "obligated person" within the meaning of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, with respect to the above- named bonds of the Authority. Dated: [LOCAL ISSUER] By. F-6 EXHIBIT B CONTENT OF ANNUALREPORT Description of the Local Issuer. A description of the Local Issuer including a summary of its form of government, budgetary processes and its management and officers. Debt. A description of the terms of the Local Issuer's outstanding tax-supported and other debt including a historical summary of outstanding tax-supported debt; a summary of authorized but unissued tax-supported debt; a summary of legal debt margin; a summary of overlapping debt; and a summary of annual debt service on outstanding tax-suppOrted debt as of the end of the preceding fiscal year. The Annual Report should also include (to the extent not shown in the latest audited financial statements) a description of contingent obligations as well as pension plans administered by the Local Issuer and any unfunded pension liabilities. Financial Data. Financial information respecting the Local Issuer including a description of revenues and expenditures for its major funds and a summary of its tax policy, structure and collections as of the end of the preceding fiscal year. Capital Improvement Plan. A summary of the Local Issuer's capital improvement plan. Demographic, Economic and Supplemental Information. A summary of the Local Issuer's demographic and economic characteristics such as population, income, employment, and public school enrollment and infrastructure data as of the end of the preceding fiscal year. The Annual Report should also include a description of material litigation pending against the LOcal Issuer. 26222.000030 RICHMOND 1057609vl F-7 PROCEEDS AGREEMENT Respecting the Custody, Investment, and Disbursement of Proceeds of Local School Bonds Purchased by the Virginia Public School Authority with the Proceeds of Its $[ School Financing Bonds (1997 Resolution) Series 2003 C SABW Draft August 28, 2003 Dated November 6, 2003 Among Virginia Public School Authority Wachovia Bank, N.A. Evergreen Investment Management Company LLC and 1 Table of Contents Page Section 1. Recitals ........................................................................................................................... 1 Section 2. Definitions ....................................................................................................................... 3 Section 3. Disposition o£VPSA Bond Proceeds ....................................................................... i ..... 9 Section 4. Establishment of Accounts ................................... i ......................................................... 9 Section 5. Disposition of Local School Bond Proceeds ................................................................ 10 Section 6. Investment of Principal Subaccount ............................................................................. 11 Section 7. Disbursements from Principal Subaccount .................................................................. 11 Section 8. Investment of Income SubaCcount ............................................................................... 12 Section 9. income Subaccount ...................................................................................................... 12 Section 10. Investment Losses ...................................................................................................... 14 Section 11. Rebate Computations .................................................................................................. 15 Section 12. Transfers to Income Subaccount ................................................................................ 16 Section 13. Disposition of Excess Proceeds .................................................................................. 16 Section 14. Rebate Payments and Penalty Payments .................................................................... 17 Section 15. Duties of VPSA ................................. '. ........................................................................ 18 Section 16. Duties 'of the Depository ....... , ..................................................................................... 19 Section 17. Duties of Local Units ...................................................................................... i ........... 19 Section 18. Responsibilities of the Investment Manager .............................................................. 20 Section 19.~ Costs ........................................................................................................................... 21 Section 20. Opinions of Counsel ................................................................................................... 21 Section 21. Amendment ................................................................................................................ 21 Section 22. Notices .............. i ......................................................................................................... 22 Section 23. No Third Party Beneficiaries .................................. ~ ............................................. 2 ..... 23 -i- Section 24. Severability ................................................................................................................. 23 Section 25. No Personal Liability .................................................................................................. 24 Section 26. Applicable Law .......................................................................................................... 24 Section 27. Counterparts ............................................................................................................... 24 Section 28. Effective Date; Term .................................................................................................. 24 -ii- PROCEEDS AGREEMENT Respecting the Custody, Investment, and Disbursement of Proceeds of Local School Bonds Purchased by the Virginia Public School Authority with the Proceeds of Its $[ School Financing Bonds (1997 Resolution) Series 2003 C This PROCEEDS AGREEMENT, dated November 6, 2003 (this "Agreement"), is among the Virginia Public School Authority, a public body corporate and instrumentality of the Commonwealth of Virginia ("VPSA"), the [ ] counties and [ ] cities that are signatories to this Agreement (collectively, the "Local Units", and each a "Local Unit"), Waehovia Bank, N.A., a banking institution organized under the laws of the United States and having an office in Richmond, Virginia, and Evergreen Investment Management Company LLC, a corporation organized under the laws of Delaware and having an office in Richmond, All capitalized terms used herein shall have the meaning given to them in Section 2 Virginia. hereof. The parties hereto agree and covenant as follows: Section 1. Recitals. A. On or before October 1, 2003, VPSA and each of the Local Units entered into a Bond Sale Agreement, pursuant to which VPSA agreed to purchase, and the Local Unit agreed to sell its Local School Bonds. B. On October 15, 2003, VPSA's Bonds were awarded at competitive bidding to the Purchaser. The Purchaser is obligated by the terms'of its bid to pay the purchase price for the VPSA's Bonds on the Closing Date. VPSA will apply certain of the proceeds of the sale of VPSA's Bonds, together with other available funds, to the purchase of the Local School Bonds on November 6, 2003, the Local School Bonds Closing Date. VPSA will also apply certain of the proceeds of the sale of VPSA's Bonds, together with other, available funds, to pay accrued interest and costs of issuance of the VPSA' Bonds. C. The Code imposes requirements on VPSA and the Local Units selling their Local School Bonds to VPSA that must be met if interest on VPSA's Bonds and interest on the Local School Bonds are to be excludable from gross income for federal income tax purposes, including a requirement that in certain circumstances, certain investment income with respect to the Local School Bonds, which income is deemed for federal income tax purposes, to be investment income of VPSA's Bonds, be subject to payment, or in lieu thereof certain payments be made, to the United States Treasury. D. VPSA has determined that in order to fulfill its representations respecting the maintenance of the exclusion of the interest on VPSA, s Bonds from gross income for federal income tax purposes, VPSA must establish a mechanism to provide accountability for the custody, investment and disbursement of the proceeds' of VPSA's Bonds and the proceeds of the Local School Bonds. E. It is the purpose of this Agreement to enable VPSA (i) to fulfill the representations mentioned in the preceding subsection; (ii) subject to the constraints of the Code affecting the investment of the proceeds of tax-exempt obligations, to achieve the optimum, practicable income by the professional management of the investment and reinvestment of the proceeds of the Local School Bonds; (iii) to provide for the custody, investment and disbursement of the proceeds of the Local School Bonds, and for the maintenance of appropriate records thereof; (iv) to meet the rebate requirement imposed by Section 148(/) of the Code, in part through the payment of either the Local Unit Rebate Requirement by each of the Local-Units or the Penalty if the Penalty Election has been made on behalf of a Local Unit; and (v) to' provide -2- for the allocation and payment of the costs associated with the establishment and maintenance of this Agreement. F. The purposes set forth in the preceding subsection E shall be accomplished through SNAP. The proceeds of the Local School Bonds shall be invested in accordance with the Information Statement. Any statements of facts contained in these recitals pertaining to the sale of the VPSA's Bonds and the application of such proceeds, other than the purchase of the Local School BondS, will not be deemed to be made by the Local Units except to the extent they have knowledge of such facts. Section 2. Definitions. In addition to the words and terms elsewhere defined in this Proceeds Agreement including the Exhibits attached hereto, the following words and terms shall have the following meanings: "Aggregate Local Units Rebate Requirement" shall be the amount calculated pursuant to the Letter Agreement. "Agreement" or "Proceeds Agreement" shall mean the Proceeds Agreement, dated November 6, 2003, among the Authority, the Local Units, the Depository and the Investment Manager. "Authorized Representative" shall mean, as applied to VPSA, the Depository, the Investment Manager and the Local Units, the person or each of the persons thereby deSignated, from time to time, in accordance with and as listed on the page of this Agreement executed by such party. "Available Construction Proceeds" shall mean, as applied to each Local Unit, the sum of (i) the amount initially deposited to the Principal Account of such Local Unit pursuant to -3- Section 5 hereof, and (ii) the investment earnings thereon, reduced by the mount of issuance costs financed by such Local Unit's Local School BOnds. In the event that the'Local Unit has made the Bifurcation Election on its Signature page, "Available Construction Proceeds" shall- mean the sum of the amount set forth on the signature page as the portion of the issue used for construction and the investment, earnings thereon, reduced by the amount set forth on the signature page as allocable to issuance expenses. "Bifurcation Election", with respect to each issue of Local School Bonds, shall mean the election made by the Local Unit to treat a portion of its Local School Bonds used for construction as a separate issue pursuant to Section 148(f)(4)(C)(v) of the Code. "Bond Sale Agreements" shall refer to the respective Bond Sale Agreements, dated as of October 1, 2003, between VPSA and each Local Issuer. "Capital Expenditure" shall mean any cost of a type that is properly chargeable to a capital account (or would be so chargeable with a proper election) under general federal income tax principles as determined at the time the expenditure is paid with respect to-the property. "Capital Project" shall mean all Capital Expenditures, plus related working capital expenditures to which the de minJmis exception provided by Section 1.148-6(d)(3)(ii)(A) of the Treasury Regulations to the proceeds-spent-last role applies, that carry out the governmental purpose of the Local School Bond issue. "Closing Date" shall mean, with respect to VPSA Bonds, the date of delivery by VPSA of such Bonds to the Purchaser. The Closing Date is scheduled to be November 6, 2003. "Code" shall mean the Internal Revenue Code of 1986, as amended. -4- "Computation Date" shall mean each of the Installment Computation Dates and the Final Computation Date. "Contract" shall mean the Contract respecting the Virginia State Non-Arbitrage Program, between the Treasury Board of the Commonwealth of Virginia and the Investment Manager, including the Depository Agreement appearing as Appendix A thereto. "Depository" shall mean Wachovia Bank, N.A, a banking institution organized under the laws of the United States of America and having an office in Richmond, Virginia and its future :successors and assigns under the Depository Agreement. "Eighteen-Month Exception" shall mean the exception to the Rebate Requirement provided by. Treasury Regulation Section 1.148-7(d). "Final Computation Date" shall mean the date the last bond that is part of the issue of VPSA's Bonds is discharged. "Gross Proceeds" shall have the meaning given to such term in the Letter Agreement. "Income Subaccount" shall mean the Income Subaccount established pursuant to Section 4 of this Proceeds Agreement for each Local Unit and (ii) both Income Subaccounts established pursuant to Section 4(b) of this Proceeds Agreement for the [ ] Local Units described therein. "Income Subaccount Set Aside" shall have the meaning given to such term by Section 9(b) of this Agreement. "Individual Portfolio" shall have the meaning given to such term in the Information Statement. "Information Statement" shall mean the current Information Statement describing SNAP, as the same may be supplemented and amended. "Installment Computation Dates" shall mean November 6, 2008, and each fifth (5th) anniversary date thereafter. "investment Manager" shall mean the investment manager of SNAP and its successors and assigns, on the Closing Date being Evergreen Investment Management Company LLC, a corporation organized under the laws of Delaware and having an office in Richmond, Virginia. "investment Report" shall have the meaning given to such term in Part A of the Letter Agreement. "Letter Agreement" shall mean the Letter Agreement; dated the date hereof, attached to this Agreement as Exhibit C. "Local School Bonds" shall mean general obligation school bonds ~of a Local Unit having the terms and provisions required by the Bond Sale Agreement. "Local School Bonds Closing Date" shall mean the Closing Date, except as otherwise provided on the page of.this Agreement executed by a Local Unit; provided, however, the Local SchoOl Bonds Closing Date with respect to an issue of Local School Bonds shall not be deemed to have occurred until the related Local Unit shall have delivered the Local School Bonds to VPSA and otherwise complied with the terms of its Bond Sale Agreement. "Local Unit" or "Local Units" shall have the meaning accorded to such term by the first paragraph of this Agreement. -6- "Local Unit Rebate Computation", with respect to each issue of Local School Bonds, shall mean a Rebate ComPutation for each Local Unit made on each Computation Date pursuant to Section 11 of this Proceeds Agreement. "Local Unit's Rebate Requirement", with respect to each issue of Local School Bonds, shall mean the amount payable to the United States Treasury calculated pursuant to the Letter Agreement. "Penalty" shall mean the amount that must be paid to the United States Treasury pursuant to the Penalty Election. "Penalty Election", with respect to each issue of Local School Bonds, shall mean the election made by the Local Unit to pay a penalty in lieu of rebate pursuant to Section 148(f)(4)(C)(vii) of the Code. "Principal Subaccount" shall mean the Principal Subaccount established pursuant to Section 4(a) of this Proceeds Agreement for each Local Unit and (ii) both Principal Subaccounts established pursuant to Section 4(b) of this Proceeds Agreement for the three (3) Local Units described therein. "Proceeds Account" shall mean, with respect to each Local Unit, its account established under Section 4 of this Proceeds Agreement. "Purchaser" shall mean [ ], the bidder offering to pay the lowest tree interest cost of VPSA's Bonds and to which VPSA awarded the VPSA's Bonds at a competitive sale. "Rebate Calculation Agent" shall have the meaning given to such term in the Letter Agreement. -7- "Rebate Computation" shall mean the computation, as of a Computation Date, of the Local Unit Rebate Requirement to such Computation Date. The amount so computed may be a positive or a negative number. "Rebate Exceptions" shall mean the Spending Exceptions and the Small-Issuer Exception, collectively. "Rebate Report" shall mean the Local Unit Rebate Computations. "Rebate Requirement" shall mean the rebate requirement imposed by Sections 148(0(2) and (3) of the Code. "Six-Month Exception" shall mean the exception to the Rebate Requirement provided by Section 148(f)(4)(B) of the Code. "Small-Issuer Exception" shall mean the exception to the Rebate Requirement provided by Section 148(f)(4)(D) of the Code. "SNAP" shall mean the State Non-Arbitrage Program established pursuant to Article 7.1, Chapter 14, Title 2.1, Code of Virginia, as amended. "SNAP Documents" shall mean the Information Statement and the Contract. "Spending Exceptions" shall mean the Six-Month Exception, the Eighteen-Month Exception and the Two-Year Exception, collectively. "Two-Year Exception" shall mean the exception to the Rebate Requirement provided by Section 148(f)(4)(C) of the Code. "VPSA" shall mean the Virginia Public School Authority, a public body corporate and instrumentality of the Commonwealth of Virginia. "VPSA's Bond Yield" shall mean the Yietd on VPSA's Bonds asset forth in the Letter Agreement. As provided in Treasury Regulation Section 1.148-4(a), the yield on each -8- issue of Local' School Bonds of a Local Unit the interest on which is excluded from gross income shall equal the VPSA's Bond Yield. "VPSA's Bonds" shall mean the $[ ] aggregate principal amount of VPSA's School Financing Bonds (1997 Resolution) Series 2003 C. "Withdrawal Date" shall mean the date as of which an interim Rebate Calculation is made pursuant to Section 9 of this Proceeds Agreement. "Yield" shall have the meaning accorded to such term by the Letter Agreement. Section 3. Disposition of VPSA Bond Proceeds. A. Prior to the Closing Date, each Local Unit will complete and submit, to the Investment Manager, the program registration form and the SNAP account registration form annexed to the Information Statement. B. On the Closing Date, VPSA will transfer to the Depository for deposit in SNAP, in immediately available funds, an amount equal to the aggregate purchase price of all of the Local School Bonds ($[ ]). C. Each Local Unit hereby agrees to adhere strictly- to the prescribed and recommended procedures described in the Information Statement. Each Local Unit hereby further agrees that it will not deviate from or request an exception to such procedures without first obtaining the prior written approval of VPSA. In the event of a conflict between the provisions of this Agreement and the Information Statement, the provisions of this Agreement shall control. Section 4. Establishment of Accounts. (a) Except as provided in Section 4(b) below, the Investment Manager will establish on its books for each Local Unit one (1) account and two (2) subaccounts therein as follows: -9- VPSA-(Name of Local Unit) Proceeds Account - Series 2003 C Issue Principal SubaccOtmt Income Subaccount (b) The Investment Manager shall establish on its books [ ], within the one (1) Proceeds Account for each such Local Unit, two subaccounts therein, and two subaccounts within each such subaccount, as -follows: VPSA- (Name of Local Unit) Proceeds Account -Series 2003 C Issue Non Subsidy Subaccount Principal Subaccount Income Subaccount Subsidy Subaccount Principal Subaccount Income Subaccount for each of (2) The amounts in the Principal Subaccounts and Income Subaccounts of each of these Local Units shall be combined for purposes of this Agreement. Requisitions from [ ] shall specify the Subaccount from which moneys are being requisitioned. If a Local Unit has elected to treat a portion of its Local School Bonds issue used for construction as a separate issue as set forth on its signature page, the Investment Manager shall maintain such records as necessary to determine the portion of the Principal Subaccount and Income Subaccount of such Local Unit allocable to the construction issue and the non- construction issue. Section 5. Disposition of Local School Bond Proceeds. A. The Investment Manager shall allocate the proceeds of the Local School Bonds on the Local SChool Bonds Closing Daie(s) to the Local Unit(s), dollar for dollar, in accordance w/th the respective purchase prices of their Local School Bonds set forth in Exhibit A to this Agreement. There is no accrued interest on the Local School Bonds. Except as provided in Section 5(B) - ([ ]) below, the proceeds of VPSA's Bonds allocated to each Local Unit shall be credited to the Principal Subaccount of the Local Unit in the amounts set forth in Exhibit A with respect to the Subsidy Local School Bonds and/or the Non-Subsidy Local School Bonds, as the case may be. B. With respect to [ ]. Section 6. Investment of Principal'Subaccount. The Investment Manager shall invest and reinvest moneys to the credit of the Principal Subaccount of each Local Unit for the benefit of such Local Unit in accordance with the provisions of the Information Statement and Section 18 of this Agreement. The Investment Manager shall credit to the Local Unit's Income Subaccount all income and profits from the investment and reinvestment of moneys to the credit of its respective Principal Subaccount. Section 7. Disbursements from Principal Subaccount. Beginning on its Local School Bonds Closing Date, each Local Unit may at any time withdraw all or any portion of the proceeds of its Local School Bonds credited to its Principal Subaccount (including amounts transferred to the credit of the Principal Subaccount from the Income Subaccount pursuant to Section 9), in accordance with the Information Statement and, in the case of a reimbursement to the Local Unit, by filing with the Investment Manager a requisition or requisitions therefor in the form of Exhibit B to this Agreement signed by an Authorized Representative of the Local Unit. Notwithstanding anything to the contrary in the Information Statement, the Investment Manager agrees that, in the case of a reimbursement to the Local Unit, it shall not disburse any money from the Principal Subaccount unless and until it has received such requisition from the Local Unit. -11- Section 8. Investment of Income Subaccount. The Investment Manager shall invest and reinvest moneys to the credit of the Income Subaccount of each Local Unit for the benefit of such Local Unit in accordance with the provisions .of the Information Statement and Section 18 of this Agreement. The Investment Manager shall credit to the Local-Unit's Income Subaccount all income and profits from the investment and reinvestment of moneys to the credit thereof. Section 9. Income Subaccount. A. The Investment Manager will notify a Local Unit and VPSA when the balance to the credit o£the Principal Subaccount of such Local Unit shall have been reduced to zero ($0). Such Local Unit may then withdraw from its Income Subaccount an amount not in excess of the amount then to the .credit of its Income Subaccount if the Local Unit qualifies for any one of the Rebate Exceptions or if such withdrawal is necessary to qualify for one of the Spending Exceptions. 1. In order to qualify for the SmalMssuer Exception, the Local Unit must deliver to VPSA and the Investment Manager no later than the end of calendar year 2003 (a) a letter from, or opinion of, nationally recognized bond counsel that the Local School Bonds of such Local Unit purchased by VPSA with the proceeds of the VPSA's Bonds will be treated as meeting the requirements of Code Sections 148(0(2) and (3), pursuant to Code Section 148(f)(4)(D); and (b) the Local Unit's covenant that it shall provide for the payment or reimburse VPSA for its payment of the Local Unit's Rebate Requirement in the event that the Local School Bonds of such Local Unit fail to meet all of the requirements of the Small Issuer Exception. 2. In order to determine if a Local Unit qualifies for either the Six-Month Exception or the Eighteen-Month Exception, the Investment Manager shall advise each -12- Local Unit and VPSA of the amount that has been disbursed from the Principal Subaccount and the Income Subaccount of such Local Unit (a) six (6) months from the Local School Bonds Closing Date, (b) twelve (12) months from the Local School Bonds Closing Date, and (c) eighteen (18) months from the Local School Bonds Closing Date. To facilitate such determination, each Local Unit shall set forth on(the signature page for such Local Unit the amount of investment proceeds that such Local Unit reasonably expects as of the Local School Bonds Closing Date to earn. 3. In order to determine if a Local Unit qualifies for the Two-Year Exception, the Investment Manager shall advise each Local Unit and VPSA, of the amount of Available Construction Proceeds that has been disbursed from the Principal Subaccount and the Income Subaccount of such Local Unit (a) six (6) months from the Local School Bonds Closing Date, (b) twelve (.12) months from the Local School Bonds Closing Date, (c) eighteen (18) months from the Local School Bonds Closing Date, and (d) twenty-four (24) months from the Local School Bonds Closing Date. To facilitate such determination, each Local Unit shall set forth on the signature page for such Local Unit the amount of'investment proceeds that such Local Unit reasonably expects as of the Local School Bonds Closing Date to earn and the elections that it requests VPSA t° make on its behalf. Furthermore, such Local Unit shall set forth in a certificate delivered to VPSA on the Local School Bonds Closing Date such facts and circumstances as necessary to show that it reasonably expects to qualify for the Two-Year Exception. 4. The portion of the proceeds of the VPSA Bonds applied to purchase the [ ] Bonds and the refunding portions of the -13- [ ] Bonds do not qualify for the Eighteen-Month Exception or Two-Year Exception. B. ExcePt to the extent that a Penalty Election has been made on behalf of a Local Unit, if the Local Unit fails to qualify for one of the Spending 'Exceptions, or is otherwise subject to the Rebate Requirement, then prior to a withdrawal from its Income Subaccount and upon receipt of such notification, the Local Unit shall promptly request, pursuant to the terms of the Information Statement, an interim Rebate Computation with respect to such Local Unit or an estimate of such Local Unit's Rebate Requirement for purposes of determining 'what amount, if any, to the credit of the Income Subaccount may be subject to rebate. Any estimate of the Local Unit's Rebate Requirement made by the Investment Manager shall also be provided to VI'SA in writing. Notwithstanding anything to the contrary in the Information Statement, no disbursement will be made from the Income Subaccount until the aforementioned calculation shall have been made. The amount to the credit of the Income Subaccount that may be subject to rebate is the Income Subaccount Set Aside. On the Withdrawal Date, the Investment Manager shall (i) reserve, in the Income Subaccount, the amount of the "Income Subaccount Set Aside" until the next Rebate Computation required by Section 11 shall have been made and (ii) credit the remaining balance to the credit of the Income Subaccount to the credit of the Local Unit's Principal Subaccount. Section 10. Investment Losses. The Investment Manager shall charge any loss realized from the investment or reinvestment of moneys to the credit of the Income Subaccount and the Principal Subaccount of a Local Unit as follows: 1. losses on moneys to the credit of the Principal Subaccount shall be charged thereto; and -14- Computation for [ [ Spending Exceptions or if the [ meet all of the requ/rements of the Small Issuer Exception. 2. losses on moneys to the credit of the Income Subaccount shall be charged first to the Principal Subaccount and then to the Income Subaccount. Section 11. Rebate Computations. On or before each Computation Date, VPSA will prepare, or cause to be prepared, in accordance with the provisions of the Letter Agreement the Local Unit Rebate Computations. The Local Unit Rebate Computation for each Local Unit shall be made on the basis of the Investment Reports maintained by the Investment Manager for each Proceeds Account. With respect to the amounts on deposit in the [ ] Transferred Proceeds Account, such amounts will be taken into account for purposes of the Local Unit Rebate ], respectively as applicable, only if the ], respectively as applicable, do not qualify for one of the ], respectively as applicable, fail to As set forth in the Letter Agreement, the Local Unit Rebate Requirement shall be calculated separately for each Local Unit. If it is determined, however, that the .Local Unit Rebate Requirement is required to be calculated in the aggregate, the Local Unit Rebate Requirement for each Local Unit shall be equal to a percentage of the Aggregate Local Units Rebate Requirement determined by multiplying the Aggregate Local Units Rebate Requirement by a fraction, the numerator of which is the positive Local Unit Rebate Requirement calculated separately and the denominator of .which is the sum of all of the positive Local Unit Rebate Requirements calculated separately. If any provision of this Agreement shall become inconsistent' with any regulation or regulations promulgated Under Section 148(f) of the Code subsequent to the date hereof, VPSA hereby agrees and covenants to prepare, or cause to be prepared, as soon as practicable, a -15- Local Unit Rebate Computation for each Local Unit, in compliance with such regulation or regulations, and VPSA, the Investment Manager and each of the Local Units hereby further agree and covenant immediately to make any and all transfers and payments required by Sections 12 and 14 of this Agreement from any moneys on deposit in the Income Subaccount and any other moneys of the Local Unit legally available for such purpose. Section 12. Transfers to Income Subaccount. Upon receipt by a Local Unit of the Rebate Report from VPSA, if the amount on deposit in the Local Unit's Income Subaccount (including the Income Subaccount Set. Aside) is less than the Local Unit Rebate Requirement of such Local Unit, the Investment Manager shall promptly charge the Principal Subaccount of such Local Unit an amount equal to the deficiency and credit its Income Subaccount such amount. To the extent that the amount on deposit in the Principal Subaccount is insufficient to remedy the deficiency, the Investment Manager shall advise VPSA and such Local Unit of the amount of the remaining deficiency, and, to the extent permitted by law, the Local Unit agrees to transfer promptly to the Depository, from any funds that are or may be made legally available for such purpose, the amount equal the remaining deficiency. To the extent that the amount on deposit in the Income Subaccount exceeds the Local Unit Rebate Requirement for the Local Unit, such excess shall be transferred to the Principal Subaccount of the Local Unit. Section 13. Disposition of Excess Proceeds. A. When a Local Unit shall certifY to VPSA and the Investment Manager that there are balances to the credit of the Local Unit's Principal Subaccount or Income Subaccount that will not be used for Capital Projects prior to. November 6, 2006, such amount shall be retained in the Proceeds Account and, to the extent such amount is not required to be deposited -16- to the Income Subaccount pursuant to Section 12, VPSA will, except as provided in the last sentence of this Section 13A, direct the Depository to apply such amount to redeem such Local Unit's Local School Bonds on the earliest possible date that such Bonds may be called without a penalty or premium. Notwithstanding the foregoing, when a Local Unit shall certify to YPSA and the Investment Manager that it has made an election under Section 148(f)(4)(C)(viii) or (ix) of the Code to terminate the Penalty Election; and that, pursuant to Code Section 148(f)(4)(C)(viii)(III) of such termination election, such Local Unit indicates the amount of Available Construction Proceeds to be applied to the redemption of its Local School Bonds and the date of such redemption, VPSA will direct the Investment Manager and the Depository to apply such amount toward the redemption of such Local Unit's Local School Bonds on the date indicated. B. In the event that there are any balances remaining on deposit in either the Principal Subaccount or Income Subaccount of any Local Unit on November 6, 2006, such amounts will be' invested by the Investment Manager in an Individual Portfolio at a Yield not in excess of the VPSA's Bond Yield or in tax-exempt obligations. With respect to the [ ] Transferred PrOceeds Account~ in the event that there are any balances remaining on deposit in such account on [ l, such amounts will be invested by the Investment Manager in an Individual Portfolio at a Yield not in excess of the VPSA's Bond Yield or in tax exempt investments. Section 14. Rebate Payments and Penalty Payments. A. The Local Unit Rebate Requirement of each Local Unit shall be paid to the United States Treasury at the direction of VPSA on behalf of and for the accounts of the Local Unit and VPSA in accordance with the Letter Agreement. -17- B: The payment of the Local Unit Rebate Requirement of each Local Unit shall be in partial satisfaction with respect to the VPSA's Bonds, and total satisfaction with respect to the proceeds of the Local School Bonds on deposit in the Proceeds Account, of the requirements of Section 148(0 of the Code except to the extent that such issue of Local School Bonds may be treated as a composite issue under Treasury Regulation §1.150-1(c) with another issue of obligations. C. Notwithstanding anything to the contrary herein, if VPSA has made the Penalty Election on behalf of a Local Unit and if such Local Unit fails to qualify for one of the Spending Exceptions, then, prior to any further disbursements from the Principal Subaccount or Income Subaccount, the Local Unit shall promptly request, pursuant to the terms of the Information Statement, a computation of the amount of the Penalty that must be paid to the United States Treasury pursuant to the Penalty Election. If the amount on deposit in the Local Unit's Income Subaccount and Principal Subaccount is less than the amount of the Penalty due by such Local Unit, the Investment Manager' shall advise VPSA and such Local Unit of the amount of the deficiency, and to the extent permitted by law, the Local Unit agrees to transfer promptly to the Depository, from any funds that are or may be made legally available for such purpose, the amount of the deficiency. The Penalty of each Local Unit shall be paid to the United States Treasury at the direction of VPSA on behalf of and for the accounts of the Local Units no later than ninety (90) days after the end of the spending period to which the Penalty relates~ SeCtion 15. Duties of VPSA. VPSA shall carry out its duties and responsibilities under this Agreement and may retain agents, independent contractors and others that it deemS qualified to carry out any or all of such duties and responsibilities. -18- VPSA shall carry out, or cause to be carried out, all of its respOnsibilities under the Letter Agreement. VPSA shall retain a copy of ~ll Rebate Computations for at least six (6) years after the retirement of the last of VPSA's Bonds. VPSA agrees that, except as provided in this Agreement, any rebate liability that VPSA may have on account of the investment and reinvestment of the Gross Proceeds of VPSA's bonds, including, by way of example and not of limitation, any. rebate liability as a result of the investment of money credited to funds and accounts created under its bond resolutions or as a result of the advance refunding of its bonds, shall be the sole responsibility of VPSA and not any Local Unit. Section 16. Duties of the Depository. The Depository shall carry out its duties and responsibilities under the SNAP Documents and this Agreement. Section 17. Duties of Local Units. A. The Local Units will cooperate with VPSA, the Investment Manager and the Depository in order to ensure that the purposes of this Agreement are fulfilled. To that end, each Local Unit covenants and agrees that it will take any and all action and refrain from taking any and all action, as recommended by its bond counsel, to maintain the exclusion fi:bm gross income for federal income tax purposes of interest on its Local School Bonds to the same extent such interest was so excludable on the Closing Date. B. If a Local Unit is required to restrict the Yield on its investments, in order to comply with such covenant or to maintain the exclusion from gross income for federal income tax purposes of the interest on VPSA's Bonds, it shall timely notify the Investment Manager to restrict such Yield to the VPSA's Bond Yield. Each Local Unit agrees not to charge its general -19- fund or otherwise set aside or earmark funds with which to pay debt service on its Local School Bonds (other than as a budget item) prior to the date of payment thereof to VPSA. C. Each Local Unit agrees to provide-for the payment of its Local Unit Rebate Requirement and/or Penalty and acknowledges that the payment of its Local Unit Rebate Requirement and/or Penalty is necessary to maintain the exclusion from gross income for federal income tax purposes of interest on its Local School Bonds as well as the VPSA's Bonds. Each Local Unit agrees to complete and to provide to VPSA such forms as VPSA may request for filing in connection with the payment of the Local Unit Rebate Requirement and/or Penalty. D. Each Local Unit hereby covenants and represents that neither the Local Unit nor any related party, as defined in Section 1.150-1(b) of the Treasury Regulations~ to such Local Unit, pursuant to any arrangement, formal or informal, will purchase the VPSA's Bonds in an amount related to the amount of Local School Bonds to be acquired from such Local Unit by VPSA: Section 18. Responsibilities of the Investment Manager. The Investment Manager shall be the agent of, and serve at the expense of, the Local Units, to manage and direct the temporary investment and reinvestment of all moneys to the credit of the Proceeds Accounts pending their disbursement to the Local Units and to make~ such computations as required by this Agreement. In general, the duties of the Investment Manager shall include those described in the SNAP Documents. In particular, the Investment Manager will direct the investment and reinvestment of moneys to the credit of the Subaccounts of each Local unit in accordance with the Information Statement, the Contract and this Agreement. -20- Section 19. Costs. Costs of SNAP are payable as provided in the Information Statement. The difference in the interest rates between VPSA's Bonds and the Local School Bonds shall be collected and retained by VPSA as partial payment of the administrative costs incurred by VPSA in connection with issuing, carrying, and repaying VPSA's Bonds, and the underwriting discount, if any, and the cost of purchasing, carrying, and selling or redeeming the Local School Bonds. VPSA will not charge any other fee to the Local Units for its services or seek reimbursement for its fees and expenses; including counsel fees, incurred in connection with the discharge of-its duties and responsibilities under this Agreement. Section 20. Opinions of Counsel. On the Closing Date, VI)SA and each Local Unit shall furnish an opinion of counsel addressed, in the case of counsel to VPSA, to all the Local Units, and in the case of counsel to the Local Units, to VI)SA, to the effect that the obligations of its client under this Agreement are valid, binding and enforceable against such client in accordance with its terms. Section 21. Amendment. This Agreement may be amended only with the consent of all the affected parties; provided, however, that this Agreement shall be amended whenever, in the judgment of VPSA, based on an opinion of its counsel, such amendment is required in order to insure that interest on VPSA's Bonds shall remain excludable from gross income for federal income tax purposes to the same extent it was, in the opinion of such counsel, so excludable on the Closing Date. VPSA shall offer to amend this Agreement whenever it shall in good faith determine, based on an opinion of its counsel, that any one or more of the restrictions or requirements imposed by this Agreement upon the Local Units, or any of them, may be removed or modified without adversely -21- affecting the exclusion of interest on VPSA's Bonds from gross income for federal income tax purposes. Section 22. Notices. Whenever notice is to be given pursuant to the provisions of this Agreement, such notice shall be deemed to have been satisfactorily given on the same day if hand delivered or telecopied during regular business hours or three (3) days after the date of postmark if mailed, first class mail, postage prepaid, as follows: If to VPSA, to by hand by mail by telecopier in any case If to the Depository, to By hand By mail By telecopier In any case If to the Investment Manager, to By hand Virginia Public School Authority c/o State Treasurer 3rd Floor, James Monroe Building 101 North 14th Street Richmond, Virginia 23219 Post Office Box 1879 Richmond, Virginia 23218-1879 (804) 225-3187 Attention: Public Finance Manager Wachovia Bank, N.A. 1021 East Car5, Street Richmond, Virginia 23219 Post Office Box 27602 Richmond, Virginia 23261 (804) 697-7370 Attention: Richard H. Grattan Senior Vice President Evergreen Investment Management Company LLC 951 East Byrd Street Riverfront Plaza, 6th Floor Richmond, Virginia 23219 -22- By mail By telecopier In any case 951 East Byrd Street Riverfront Plaza, 6th Floor Richmond, Virginia 23219 (804) 344-6520 Attention: A1 Samper Senior Vice President If to a Local Unit, to the address or telecopier number indicated on the page of this Agreement executed by such Local Unit. Any such address or number may be changed by written notice given to all the other parties to this Agreement and the Investment Manager, except that a Local Unit need give such notice only to VPSA, the Depository and the Investment Manager. Section 23. No Third Party Beneficiaries. Except as herein otherwise expressly provided, nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person, firm or corporation other than the parties hereto any right, remedy or claim, legal or equitable, under or by reason of this Agreement or any provision hereof, this Agreement and all its provisions being intended to be and being for the sole.and exclusive benefit of the parties hereto. Section 24. Severability. In case any one or more of the provisions of this Agreement shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this Agreement and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been contained herein. In case any covenant, stipulation, obligation or agreement contained in this Agreement shall for any reason be held to be in violation of law, then such covenant, stipulation, obligation or agreement shall be deemed to be the covenant, stipulation, obligation or agreement of the affected party to the full extent permitted by law. -23 - Section 25. No Personal Liability. All covenants, stipulations, obligations and agreements of VPSA contained in this Agreement shall be deemed to be covenants, stipulations, obligations and agreements of VPSA to the full extent authorized by the laws and permitted by the Constitution of Virginia. No covenant, stipulation, obligation or agreement contained herein shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, employee or agent of VPSA or any Local Unit in his individual capacity. No commissioner, officer, employee or agent of VPSA or any Local Unit shall incur any personal liability in acting or proceeding or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement and the applicable laws of the Commonwealth of Virginia. Section 26. Applicable Law. This Agreement is executed with the intent that the laws of the Commonwealth of Virginia shall govern its construction. Section 27. Counterparts. This Agreement may be executed in one or more counterparts. Section 28. Effective Date; Term. This Agreement shall take effect on the Closing Date and shall expire on the date on which VPSA shall make the final rebate payment required by Part D of the Letter Agreement. -24- Virginia Public School Authority By: NalTle.' Title: Richard A. Davis Assistant Secretary and Assistant Treasurer Wachovia Bank, N.A. l y: Name: Richard H. Grattan Title: Senior Vice President Evergreen Investment Management Company LLC Name: A1 Samper Title: Senior Vice President -25- NAME OF ISSUER: Page 1 of 2 A. Address for notices, by hand, by mail and by telecopier, if any, as referred to in Section 22 above: B. Authorized Representative(s): Name Title Specimen Signature C. Local School Bonds Closing Date (if not November 6, 2003, enter Date of Issue of Local School Bonds): D. Is the Small Issuer Exception applicable to this Issuer? (If yes, an opinion of Bond CoUnsel and Issuer's covenant is required as per Section 9 herein). Yes No E. Eighteen Month Exception Estimated InVestment Earnings for purposes of the Eighteen-Month Exception: $ If any proceeds are used to refund prior debt, please indicate: (a) proceeds used to refund prior debt: $ (b) issuance expense allocable to the refunding portion of the issue: $ NAME OF ISSUER: Page 2 of 2 F. Elections with respect to Two-Year Exception: 1. Election.to use actual facts in lieu of reasonable expectations for purposes of the Two-Year Exception: Yes No 2. Estimated Investment Earnings: $ 3. If any proceeds are used to refund prior debt, please indicate: (a) proceeds used to refund prior debt: $ (b) issuance expenses allocable to the refunding portion of the issue: $ 4. Bifurcation Election to treat the portion of the issue used for construction as a separate issue: Yes No If yes, state the portion of the issue used for construction and non-construction, respectively; (the sum of the following mounts must. equal the issue price of $ reduced by any portion used for refunding purposes): (a) portion of the issue used for construction: $ (b) issuance expenses allocable to the construction portion of the issue: $ (c) portion of the issue used for non-construction: $ (d) issuance expenses allocable to the non-construction portion of the issue: $ 5. Penalty Election to pay One and One-Half Percent Penalty in lieu of rebate: Yes No City/County By: Name: Title: Exhibit A Page 1 of 2 LOCAL SCHOOL BONDS- NON-SUBSIDY Local Unit Principal Amount of Bonds Purchase Price TOTAL: sr 1 Exhibit A Page 2of2 LOCAL SCHOOL BONDS- SUBSIDY Local Unit Principal Amount of Bonds Purchase Price Total: $[ 1 A-2 Exhibit B [No requisition is required in conjunction with a check payable to a vendor in respect of an invoice due and payable.] FORM OF REQUISITION FOR REIMBURSEMENT BY PRE-AUTHORIZED WIRE [To be used for REIMBURSEMENT to a Local Unit from Local School Bond proceeds for an invoice or obligation that has been paid and is eligible for payment from Local School Bond Proceeds.] Evergreen Investment Management Company LLC 901 East Byrd Street Riverfront Plaza, 6th Floor Richmond, Virginia 23219 VIRGINIA PUBLIC SCHOOL AUTHORITY [Name of Local Unitl BOND PROCEEDS ACCOUNT - SERIES 2003 C ISSUE Requisition from the Principal Subaeconnt Requisition No. __ ("item number") This requisition for payment from the Priru:ipal Subaccount of the Proceeds Account is submitted in accordance with the provisions of the Proceeds Agreement dated November 6, 2003, among the Virginia Public School Authority ("VPSA"), the undersigned (the "Local Unit") and the other units of local government signatory thereto, Evergreen Investment Management Company LLC, as Investment Manager and Wachovia Bank, N.A., as Depository. You are hereby notified that you are authorized and directed by the Local Unit to pay the following obligation from the Principal Subaccount: 1. The item number of such payment: 2. The amount[s] to be paid: $ 3. Purpose by general classification for which such obligation was incurred: B-1 4. The date(s) the expenditure(s) was/were made: To reimburse the Local Unit for costs of the through ,20_ as follows: School paid by the Local Unit Dated 5. A copy of each supporting [invoice, work order, statement] for which reimbursement is to be made is attached hereto. 6. The obligation[s] in the stated amount[s] have been paid, and each item thereof is a proper charge against the proceeds of the Local Unit's Proceeds Account and has not been the subject of a previous withdrawal from the Proceeds Account. 7. All of which is hereby certified. [Name of Local Unit] By: Authorized Local Unit Representative B-2 Exhibit C Virginia Public School Authority 101 North 14th Street Richmond~ Virginia 23219 LETTER AGREEMENT November 6, 2003 Re: Custody, Investment, and Disbursement of Proceeds of Local School Bonds Purchased by the Virginia Public School Authority with the Proceeds of Its $[ ] School Financing Bonds (1997 Resolution) Series 2003 C This LETTER AGREEMENT, dated the date shown above (this "Letter Agreement"), is between the Authority and the Investment Manager. All capitalized terms used herein shall have the meaning given to them in Part E of this Letter Agreement 0r in Section 2 of the Proceeds Agreement to which this Letter Agreement is attached as Exhibit C. With respect to the VPSA's Bonds, the Code requires that an amount equal to the VPSA's Rebate Requirement be paid to the United States Treasury. With respect to each issue of Local School Bonds, the Code requires that an amount equal to the Local Unit's Rebate Requirement be paid to the United States Treasury. Accordingly, VPSA hereby directs the Investment Manager, as provided below, to assist VPSA and each Local Unit to comply with the VPSA's Rebate Requirement and the respective Local Unit's Rebate Requirement. To enable VPSA and the Local Units to fulfill their respective obligations under the Proceeds Agreement and to make such payments, and to enable the Investment Manager to fulfill its obligations under this Letter Agreement, the Investment Manager will prepare, on or before December 1, 2004 and each December 1 thereafter, the Investment Reports for VPSA as of the preceding November 6 and each Local Unit as of the preceding November 6. On the basis of such Investment Reports, VPSA shall cause the Rebate Calculation Agent to prepare the Local Unit Rebate Computation setting forth the Local Unit Rebate Requirement as of each Computation Date for each Local Unit with respect to its issue of Local School Bonds as described in paragraph 3 of Part B hereto. In addition, the Investment Manager w/Il, based on the Rebate Report, transfer, within thirty (30) days after the Computation Date of each Local Unit, frOm its Principal Subaccount, if necessary, to its Income Subaccount, the amount required so that the amount to the credit of the Income Subaccount of each Local Unit shall equal its Local Unit Rebate Requirement. A. Investment Report With respect to all. Nonpurpose Investments acquired during the term of this Letter Agreement with Gross Proceeds of each issue of Local School Bonds, the Investment Manager shall maintain separate Investment Reports for each issue of Local School-Bonds. C-1 The Investment Report for each Local Unit shall reflect the investments made with respect to its Proceeds Account. B. Rebate Computation on Local School Bonds VPSA shall compute each Local Unit's Rebate Requirement with respect to its issue of Local School Bonds in accordance with the procedure described below: 1. As of each Computation Dar'e, VPSA shall cause the Rebate Calculation Agent to determine the Future Value of all nonpurpose payments made with respect to the Nonpurpose Investments purchased with or allocated to the Gross Proceeds of the Local School Bonds, as well as any rebate payments made, to such Computation Date in accordance With the requirements of the Treasury Regulations. Unless VPSA shall otherwise direct, transaction costs incurred in acquiring, carrying, :selling or redeeming such obligations; shall be accounted for as provided in the Information Statement. 2. As of each Computation Date, VPSA shall cause the Rebate Calculation Agent to determine the Furore Value of all nonpurpose receipts received with respect to the Nonpurpose Investments purchased with or alloCated to the Gross Proceeds of the Local School Bonds, as well as any iebate payments recovered, to such Computation Date in accordance with the requirements of the Treasury Regulations. 3. As of each Computation Date, VPSA shall subtract the amount computed pursuant to paragraph 1 from the amount computed pursuant to paragraph 2. Such amount shall be the ~"Local Unit Rebate Requirement" as of the Computation Date. 4. Each of the Local Units has coverianted in Section 17 of the Proceeds Agreement not to charge its general fund or otherwise set aside or earmark funds with which to pay debt service on its Local School Bonds (other than as a budget item) prior to the date of payment thereof to VPSA. 5. Except as provided in Section 9(A)(4) of the Proceeds Agreement, the Local Unit Rebate Requirement may be treated as being met and no rebate computation shall be required with respect to the proceeds of the VPSA's Bonds applied to purchase such Local Unit's Local School Bonds if the VPSA receives the opinions and covenants or certification described in Section 9A of the Proceeds Agreement that a Local Unit meets the requirements of the (a) Six- Month Exception, (b) Eighteen-Month Exception, (c) Small Issuer Exception, or (d) Two-Year Exception, subject to the provisions described below. (a) Six-Month Exception. Notwithstanding the fact that all of the Gross Proceeds of the Local School Bonds are spent w/thin six (6) months of the date of issue and no other Gross Proceeds of the Local School Bonds are anticipated for the remainder of the term of the issue, if Gross Proceeds of the Local School Bonds become available after the end of the initial six-month period, the Local Unit Rebate Requirement shall be computed with respect to such Gross Proceeds in accordance with the Procedure described above. (b) Eighteen-Month Exception. Notwithstanding the fact that all of the Gross Proceeds of the Local School Bonds are spent w/thin eighteen (18) months of the date of C-2 issue and no, other Gross Proceeds of the Local School Bonds are anticipated for the remainder of the term of the issue, if Gross Proceeds of the Local School Bonds become available alter the end of the initial eighteen-month period, the Local Unit Rebate Requirement shall be computed with respect to such Gross Proceeds in accordance with the procedure described above. (c) Small Issuer Exception. If a Local Unit delivers to VPSA no later than the end of calendar year 2003 (i) the opinion of nationally recognized bond counsel that the Local School Bonds of such Local Unit purchased by VPSA with the proceeds of the VPSA's Bonds will be treated as meeting the requirements of Code Sections 148 (0(2) and (3) pursuant to Code Section 148 (f)(4)(D) and (ii) the Local Unit's covenant that it shall provide for the payment of or reimburse VPSA for its payment of the Local Unit Rebate Requirement in the event that the Local School Bonds of such Local unit fail to meet all the requirements of the Small Issuer Exception, then no rebate computation shall be made with respect to the proceeds of VPSA's Bonds applied to purchase such LoCal School Bonds. Although the Local School Bonds of a Local Unit may qualify for the Small Issuer Exception, custody, investment and disbursement of the proceeds of the VPSA's Bonds applied to the purchase of the Local Unit's Local School Bonds shall continue under the Proceeds Agreement, and the Investment Manager shall continue to provide an Investment Report for such Local Unit. Notwithstanding the foregoing, the [ ] Bonds and the refunding portions of the [ ] Bonds do not qualify for the Eighteen Month Exception or the Two Year Exception. Furthermore, with respect to the amounts on deposit in the [ ] Transferred Proceeds Account, such amounts will be taken into account for purposes of comPuting the Local Unit Rebate Requirement for [ ], respectivelY as applicable, but only if the [ ], respectively as applicable, do not qualify for one of the Spending Exceptions or if the [ .], respectively as applicable, fail to meet all of the requirements of the Small Issuer Exception. 6. In addition to the foregoing, no rebate computation shall be required with respect to the proceeds of the VPSA's Bonds applied to purchase a Local Unit's Local School Bonds ifa Penalty Election has been made on behalf of the Local Unit with respect to such Local School Bonds. C. Aggregate Rebate Computation on Local School Bonds In the event that the Treasury Regulations require that the Local Units' Rebate Requirements be calculated in the aggregate, VPSA shall compute the Aggregate Local Units' Rebate Requirement in accordance with the procedure set forth below. 1. As of each Computation Date, VPSA shall cause the Rebate Calculation Agent to determine the Future Value of all nonpurpose payments made .with respect to the Nonpurpose Investments purchased with or allocated to the Gross Proceeds of all of the Local School Bonds in the aggregate (except those qualifying for one of the Rebate Exceptions or those that have C-3 made the Penalty Election), as well as any rebate payments made, to such Computation Date in accordance with the requirements of the Treasury. Regulations. 2. As of each Computation Date, VPSA shall cause .the Rebate Calculation Agent to determine the Future Value of all nonpurpose receipts received w/th respect to the Nonpurpose Investments purchased with or allocated to the Gross Proceeds of all of the Local School Bonds in the aggregate (except those qualifying for one of the Rebate Exceptions or those that have made the Penalty Election), as well as any rebate receipts recovered, to such Computation Date in accordance with the requirements of the Treasury Regulations. 3. As of each Computation Date, VP. SA shall subtract the amount computed pursuant to paragraph 1 from the amount computed pursuant to paragraph 2. Such amount shall be the "Aggregate Local Units' Rebate Requirement" as of the Computation Date. D. Rebate Payment 1. Upon the calculation of the Local Unit Rebate Requirement for each Local Unit, VPSA shall notify the Investment Manager thereof. The Investment Manager shall promptly charge the Principal Subaccount of a Local Unit to the extent the amount on deposit to the credit of its Income Subaccount is less than its Local Unit Rebate Requirement and credit its Income Subaccount with an amount such that the balance to the credit of the Income Subaccount is equal to such Local Unit Rebate Requirement (taking into account prior amounts credited to the Income Subaccount including investment income thereon). To the extent that the amount on deposit in the Principal Subaccount is insufficient to provide for a deposit to the Income Subaccount such that the balance in the Income Subaccount is equal to the Local .Unit Rebate Requirement for the Local Unit, the Investment Manager shall advise VPSA and such Local Unit of the amount of the deficiency so that the Local Unit may promptly transfer to the Depository the amount required pursuant to Section 12 of the Proceeds Agreement. 2. In addition to the computation of the Local Units' Rebate Requirement, VPSA shall calcUlate its Rebate Requirement with respect to Nonpurpose Investments that were acquired with the Gross Proceeds of the VPSA's Bonds in accordance with the procedures set forth in the Tax Certificate executed by VPSA in connection with the issuance of the VPSA's Bonds. 3. The Local Unit Rebate Requirement for each Local Unit, if a positive number, shall be paid at the direction of VPSA to the United States in installments. Each payment shall be made not later than sixty (60) days after each Computation Date. Each payment must be in an amount not less than the total of ninety percent (90%) of the Local Unit Rebate Requirement for each Local Unit as of each Installment Computation Date. All of the Local Unit Rebate Requirement must be paid to the United States within sixty (60) days after the Final Computation Date. Payment shall be made to the Internal Revenue Service Center, Ogden, Utah 84201 and be accompanied by Form 8038-T. VPSA shall make such payment as required. Investment Reports and records of the determinations made hereunder shall be retained by the Investment Manager and by VPSA, respectively, until six (6) years after the retirement of the last of VPSA's Bonds. E. Definitions C-4 In addition to the words and terms defined in the Proceeds Agreement to which this Letter Agreement is attached as Exhibit C, the following words and terms shall have the following meamngs: "Bond Resolution" shall mean the resolution of the Authority adopted on October 23, 1997, as amended and restated on October 5, 1998, and as supplemented. "Fair Market Price" shall mean the purchase price and disposition price of a Nonpurpose Investment. Any Nonpurpose Investment purchased must be purchased at the Fair Market Price. An investment that is not of a tYPe traded on an established market, within the meaning of Section 1273 of the Code~ is rebuttably presumed to be acquired or disposed of at a price that is not equal to its fair market value. Accordingly, a premium may not be paid to adjust the yield on an investment, a lower interest rate than is usually paid may not adjust the yield on an investment and no transaction may result in a smaller profit or larger loss than would have resulted if the transaction had been at arm's-length and had the yield with respect to the Bonds not been relevant to:either party.. Pursuant to Treasury Regulation Section 1.148-5(d), the following are safe harbors for establishing the Fair Market Price of certificates of deposit and guaranteed investment contracts: (i) Certificate of Deposit. A certificate of deposit with a fixed interest rate, fixed payment schedule and a substantial penalty for early withdrawal will be deemed purchased for fair market value if the y/eld on the certificate of deposit is not less than (i) the y/eld on reasonably comparable direct obligations of the United States and (ii) the highest yield published or posted by the provider to be currently available from the provider on reasonably comparable Certificates offered to the pubhc. See Section 1.I48- 5(d)(6)(ii) of the Treasury Regulations. (ii) Investment Agreement. Investments pursuant to a guaranteed investment contract will be regarded as being made at fair market value if (a) A bona fide solicitation for a guaranteed investment contract is made that satisfies all of the following requirements: (A) the bid specifications are in writing and are timely forwarded to potential providers, (B) the bid specifications include all material terms that may directly or indirectly affect the y/eld or the cost of the guaranteed investment contract, (C) the bid specifications include a statement notifying potential providers that submission of a bid is a representation that the potential provider did not consult with any other potential provider about its bid, that the bid was determined without regard to any other formal or informal agreement that the potential provider has with the Issuer or any other person .(whether or not in connection with the issuance of the Bonds), and that the bid is not being submitted solely as a courtesy to the Issuer or any other person for purposes of satisfying the requirements contained in Section 1.148- 5(d)(6)(iii)(B)(1) or (2) of the Treasury Regulations, (D) the terms of the bid specifications are commercially reasonable in that there is a legitimate business purpose for each term other than to increase the purchase price or reduce the y/eld of the guaranteed investment contracts, (E) the terms of the solicitation take into account the reasonably expected deposit and drawdown schedule for the amounts C-5 to be invested, (F) all potential providers have. an equal opportunity to bid and no potential provider is given the opportunity to review other bids (i.e., a "last look") before providing a bid, (G) in those cases where the Issuer engages a bidding agent to conduct the bidding, such agent did not bid to provide the investment, and (H) at least three reasonably competitive providers are solicited for bids. A "reasonably competitive provider" is a provider that has an established industry reputation as a competitive provider of investments of the same type as such guaranteed investment contract; (b) At least three bona fide bids on the guaranteed investment contract are received from providers that have no material financial interest in the BOnds. The following are deemed" to have a material financial interest in the Bonds: (A) thelead purchaser in a negotiated underwriting transaction until I5 days after the issue date of the. issue, (B)any entity acting as a financial advisor with respect to the purchase of the guaranteed investment contract at the time the bid specifications are forwarded to potential providers, and (C) a provider that is a related party to a provider that has a material financial interest in the execution and delivery of the Bonds; (c) At least one of the three bids received is from a reasonably competitive provider, as described above; (d) The winning bidder provides a certificate that (A) lists the recipients, amounts and purposes of any brokerage fee, placement fee, commission or administrative costs that it is paying (or expects to pay) to third parties in connection with supplying the guaranteed investment contract, (B) states that the yield on the guaranteed investment contract is not less than the yield available from the provider on reasonably comparable guaranteed investment contracts offered to other persons from sources of funds other than gross proceeds of tax-exempt obligations, and (C) in those agreements wherein the Issuer deposits amounts (other than amounts deposited in debt service funds or reasonably required reserve or replacement funds) states that the Issuer's draw- down schedule was a significant factor in determining the terms of the guaranteed investment contract; -(e) The highest yielding guaranteed investment contract for which a bona fide bid was made is purchased (determined net of broker's fees, if any); and (f) The following records are retained with the bond documents until three years after the last outstanding Bond is redeemed: (A) a copy of the guaranteed investment contract, (B) the receipt or other record amount actually paid for the guaranteed investment contract, including a record of any administrative costs paid and the certification under subsection (d) hereof, (C) for each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the bid results, and (D) the bid solicitation form and, if the terms of the guaranteed investment contract deviated from the bid C-6 solicitation form or a submitted bid is modified, a brief statement explaining the deviation and stating the purpose for the deviation. "Future Value" of a payment or receipt at the end of any period is determined using the economic accrual method and equals the value of that payment or receipt when it is paid or received (or treated as paid or received), plus interest assumed to be earned and compounded over the period at a rate equal to the Yield on the VPSA's Bonds, using the same compounding interval and financial conventions used to compute that yield. "Gross Proceeds'" shall have the meaning ascribed to such term in Section 148 of the Code and shall mean: (a) amounts actually received or cOnstructively received by VPSA from the sale of the VPSA's Bonds and the amounts actually or constructively received by the Local Units from the sale of the Local School Bonds, other than any interest accruing on the VPSA's Bonds from the dated date to the issue date of such bonds; (b) amounts treated as Transferred Proceeds (as defined in Treasury Regulations Section 1.148-9) of the VPSA's Bonds or the Local School Bonds, if any; (c) amounts that are reasonably expected to be or are in fact Used to pay debt service on the Bonds including amounts in the sinking fund .portion of the 1997 Income Fund under the Bond Resolution and the 1997 Sinking Fund under the Bond Resolution; (d) securities or obligations pledged bY the VPSA or Local Unit as security for payment of debt service with respect to the VPSA's Bonds or the Local. School Bonds; (e) amounts received with respect to any investments acquired with Gross Proceeds for the purpose of carrying out the governmental purpose for which the VPSA's Bonds or the Local School Bonds were issued, including the Local School Bonds, except that such amounts shall not include amounts, if any, that are properly allocable to qualified administrative costs recoverable under Treasury Regulation Section 1.148-5(e) or to the higher yield permitted under Treasury Regulation Section 1.148-2(d) or Section 143(g) of the Code; (f) amounts treated as "replacement proceeds" of the VPSA's Bonds or the Local School Bonds within the meaning of section 1.148-I(c) of the Treasury RegulationS; (g) any funds that are part of a reserve or replacement fund for the VPSA Bonds or Local School Bonds; and (h) amounts received as a result of investing any Gross Proceeds. C-7 Gross Proceeds shall include amounts that are on deposit in the Income Subaccount tothe extent that suCh amounts are derived from Gross Proceeds of the VPSA's Bonds or the Local School Bonds. The determination of whether an amount is included within this definition shall be made without regard to whether the amount is credited to any fund or account established under the Bond Resolufibn, or whether the amount is subject to the pledge of the Bond Resolution. For purposes of subsection (d) above, an amount is pledged to pay principal or interest with respect to VPSA's Bonds or Local School Bonds if there is a reasonable assurance that the amount will be available for such purposes in the event that the VPSA or Local Unit encounters financial difficulties. An amount can be indirectly pledged to pay principal or interest with respect to VPSA's Bonds or Local School Bonds if it is pledged to a guarantor of either or both. such bonds. An amount may be "negatively" pledged to pay principal or interest with respect to VPSA's Bonds or Local School Bonds if it is held under an agreement to maintain the amount at a particular level for the direct or indirect benefit of the holders of the bonds or a guarantor of the bonds. An amount is not negatively pledged however if (i) VPSA or the Local Units may grant rights in the amount that are superior to the rights of the holders of the bonds or a guarantor of the bonds, or (ii) the amount does. not exceed reasonable needs for which it is maintained, the required level is tested no more frequently than every 6 months, and the amount may be spent without any substantial restriction other than a requirement to replenish the amount by the next testing date. If a decision is made to apply any insurance or condemnation proceeds to the redemption of VPSA's Bonds or Local School Bonds instead of using such proceeds for repair or replacement, any such proceeds become Gross Proceeds on the date of such a decision. The definition of Gross Proceeds has been set out in full for the sake of completeness. With respect to each Local School Bond, all of the Gross Proceeds are on deposit in such Local Unit's Proceeds Account except to the extent that the Local School Bonds may be part of a composite issue under Treasury Regulation §1.150-1(c), or the Local Unit may have retained Transferred Proceeds. With respect to the VPSA's Bonds, all of its Gross Proceeds are the total of the amounts on deposit in the Proceeds Accounts of the Local Units, except as provided above, and the amounts on deposit in the sinking fund portion of its 1997 Income Fund under the Bond Resolution and the 1997 Sinking Fund under the Bond Resolution. "Investment Report" shall mean the record of investment activity maintained by the Investment Manager with respect to the investment property and the Local Units, as described in the Letter of Instructions to the Investment Manager from the Treasury Board of the Commonwealth of Virginia dated [May 1, 2000]. "Local Unit's Rebate Requirement" shall mean the sum of (i) the excess of (A) the aggregate amount earned on all Nonpurpose Investments acquired with the Gross Proceeds of the Local School Bonds over (B) the amount that would have been earned if the Nonpurpose Investments had a Yield equal to the VPSA's Bond plus (ii) any income attributable to the excess described in clause (i). C-8 "Nonpurpose Investments" shall mean any security, obligations, annuity contract or any other investment-type property (as such term is defined in Section 1.148-1(b) of the Treasury Regulations) that is not acquired to carry out the governmental purpoSe of the VPSA's Bonds or the Local School Bonds. Nonpurpose Investments shall not include Tax-Exempt Investments. Any Nonpurpose Investments shall be purchased by the Investment Manager only if the purchase price of the Nonpurpose Investment is the Fair Market Price. "Rebate Calculation Agent" shall mean that accounting firm with a favorable national reputation in the field of the calculation of amounts subject to rebate to the United States under Section 148(f) of the Code and the Temporary Regulations that has been appointed under Section 9.2 of the Contract or by VPSA. "Tax-Exempt Investments" shall include: (i) obligations the interest on which is excludable from gross income for federal income tax purposes, and not treated as an item of tax preference under SectiOn 57(a)(5)(C) of the Code, (ii) stock in a regulated investment company to the extent that at least 95% of the income to the holder of the interest is excludable from gross income under Section 103 of the Code, and (iii) certificates of indebtedness issued by the United States Treasury pursuant to Demand Deposit State and Local Government Series program described in 31 CFR part 344 ("SLGs"). "Treasury Regulations" shall mean the Treasury Regulations Sections 1.148-0 through 1.148-11, 1.149(b)-1, 1.149(d)-1, 1.149(e)-1, 1.149(g)-1, Section 1.150-1 and Section 1.150-2, as amended from time to time hereafter, and other regulations promulgated under Section 148 of the Code. "VPSA's Rebate Requirement" shall mean the sum of (i) the excess of (A) the aggregate amount earned on all Nonpurpose Investments acquired with the Gross Proceeds of VPSA's Bonds over (B) the amount that would have been earned if the Nonpurpose Investments had a Yield equal to VPSA's Bond Yield plus (ii) any income attributable to the excess described in clause (i). "Yield", for purposes of this Letter Agreement, shall be calculated pursuant to the Treasury Regulations by means of an actuarial method of yield calculation whereby "yield" means that discount rate which, when used in computing the present value of all the unconditionally payable payments of principal and interest and all the payments for a qualified guarantee paid and to be paid with respect to the bond, produces an amount equal to the issue price of the bond. For purposes of this Letter Agreement, the Yield on VPSA's Bonds ~s [ ]%. The Yield on investments must be computed by the use of the same frequency interval of compounding interest as is used in computing the Yield on the VPSA's Bonds and the Local School Bonds. F. Amendments C-9 In order to comply with the covenants by VPSA and each of the Local' Units regarding compliance with the requirements of the Code and the exclusion from federal income taxation of the interest paid and to be paid on the Local School Bonds and VPSA's Bonds, the procedures described in this Letter Agreement. may be modified as necessary, based on the-advice of counsel, to comply with rulings, regulations, legislation or judicial decisions as may be applicable to such bonds. Very truly yours, VIRGINIA PUBLIC SCHOOL AUTHORITY By: Name: Richard A. Davis Title: Assistant Secretary and Assistant Treasurer Accepted: Evergreen Investment Management Company LLC By: Name: A1 Samper Title: Senior Vice President C-10 Exhibit D AUTHORIZED REPRESENTATIVES The following are the Authorized Representatives of Virginia Public School Authority, Wachovia Bank, N.A. and Evergreen Investment Management Company LLC: VIRGINIA PUBLIC SCHOOL AUTHORITY: NalTie Richard A. Davis Dora D. Fazzini Title Assistant Secretary and Assistant Treasurer Assistant Secretary and Assistant TreasUrer Specimen Signature Name Richard H. Grattan WACHOVIA BANK, N.A.: Title Senior Vice President Specimen Signature EVERGREEN INVESTMENT MANAGEMENT COMPANY LLC: Name Title Specimen Signature A1 Samper Senior Vice President 26222.000030 RICHMOND 1060102vl D-1