September 28, 1993 Special Meeting
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A Special Meeting of the Frederick County Board of Supervi-
sors was held on September 28, 1993, at 6:30 P.M. in the Board
of Supervisors' Meeting Room, Frederick County Courthouse,
Loudoun Street Mall, Winchester, Virginia.
PRESENT: Richard G. DiCk, Chairman; W. Harrington Smith,
Jr., Vice Chairman; James L. Longerbeam; Robert M. Sager;
Beverly J. Sherwood and Charles W. Orndoff, Sr.
Mr. Lawrence R. Ambrogi, county attorney, was also present
along with John R. Riley, Jr., county administrator.
Mr. DiCk, chairman, announced at this time that the meeting
would begin, once Mr. Riley and Mr. Dick Cranwell arrived.
CALL TO ORDER
The Chairman called the meeting to order, and asked Mr.
Sager to have the invocation.
BOARD RETIRED INTO EXECUTIVE SESSION
Mr. Dick stated that according to the agenda, the board
would at this time retire into executive session, and called for
a motion to do so.
Upon motion made by James L. Longerbeam, seconded by W.
Harrington Smith, Jr., for the board to go into executive
session under section 2.1-344 subsection A (7) discussion of
legal matters.
Mr. Dick called for any discussion.
Mrs. Sherwood stated that she would hope that the board
would not go into executive this evening, the boards' integrity
is being questioned because of secret meetings, and she feels it
would be terribly important to stay in open meeting for the
discussions this evening.
Mr. Dick - are you making a motion, or you making an
amendment, comment, or what's the discussion.
Mrs. Sherwood - I'm making a comment.
Mr. Dick - In reply to that, executive session is not
secret session, I believe I would decline - category it a little
bit differently, so - anyone else have a comment.
Mr. Orndoff stated that he would not go into executive
session without the commonwealth attorney.
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Mr. Dick - you will not go in without the commonwealth
attorney.
Mr. Orndoff - I will not.
Mr. Dick - what about the county attorney.
Mr. Orndoff - I mean the county attorney.
Mr. Dick - You mean the county attorney or commonwealth
attorney.
Mr. Orndoff - county attorney, he is acting as our attor-
ney, Mr. Chairman.
Mr. Dick - He is not acting, he is an attorney.
Mr. Orndoff - That is right, so I will not go into execu-
tive session unless Mr. Ambrogi is in executive session from now
on. I would like to make a motion that from now on we have no
executive sessions --
Mr. Dick - I have one motion on the floor. Are you making
a statement that you want Mr. Ambrogi in executive session from
now on.
Mr. Dick - I can't control Mr. Ambrogi, but I'm sure that
he will be more than happy to go in with us. Any other discus-
sion. Hearing none, the chairman called for the vote. Mr.
Orndoff - We are voting to go into executive session, that's the
motion and it has been seconded.
Mr. Orndoff - with my man going or not going.
Mr. Dick - you can ask him, don't ask me.
Mr. Longerbeam - Mr. Ambrogi do you have any objections to
going into executive session.
Mr. Ambrogi - Of course not.
Mr. Dick - I don't think he ever has had.
Mr. Orndoff - Mr. Chairman lets get back to the point. He
has never been asked.
Mr. Dick - I called for the vote, the discussion is off.
Mr. Orndoff - No the discussion is still in.
Mr. Dick - I believe I have the gavel, Mr. Orndoff, and you
asked for Mr. Ambrogi to go into executive session and that
question has been answered. How do you vote, yes or no.
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Mr. Orndoff - He will go into executive session with me,
yes sir.
Mr. Sager - Yes
Mrs. Sherwood - No
Mr. Smith - Yes
Mr. Longerbeam - Yes
Chair votes to go into executive session.
Based upon written opinion from county Attorney Lawrence R.
Ambrogi to Mr. Dick indicating a possible conflict of interest,
Mr. Dick did not go into Executive Session.
For the record, it was noted that Mr. Dick and Mrs.
Sherwood did not go into Executive Session.
BOARD WITHDREW FROM EXECUTIVE SESSION
vice Chairman, W. Harrington Smith, Jr., took over the
chair and gavel at this time.
Upon motion made by Charles W. Orndoff, Sr., seconded by
James L. Longerbeam, the board withdrew from executive session
by the following recorded vote:
Richard G. Dick - Aye
W. Harrington Smith, Jr. - Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Abstained
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
BOARD RECONVENED INTO REGULAR SESSION
Upon motion made Charles W. Orndoff, Sr., seconded by
Robert M. Sager, the board reconvened into regular session and
certified nothing other than what was noted as reason for going
into executive session was discussed.
The above motion was passed by the following recorded vote:
Richard G. Dick - Aye
W. Harrington Smith, Jr. - Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Abstained
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
D. RICHARD CRANWELL ADDRESSES BOARD
Mr. Chairman, members of the board, with respect to the
propertied sales contract with Courthouse Associates, we have
completed our evaluation and research, and we are of the opinion
that the propertied agreement is of no legal effect for a number
of reasons.
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1. The constitution of virginia article VII, section lOB,
says that a county cannot contract for a debt that is for a
period that is greater than one year, without the referendum.
So there is no authority in the board to contract for that debt
without a referendum so that contract would be ultra vires for
that reason.
2. There is case law in Virginia to the effect that you
cannot encumber public property. So the attempt to encumber a
piece of property with a deed of trust would also make it an
ultra vires act, which would mean that it would be inappropri-
ate. Also the contract with respect to section IX of the
contract, envisions that the contract in its form as written on
August 26, 1993 have the sanction of a resolution by the board
accepting the contract, and authorizing either some member of
the board to chair or vice chair, to execute on behalf of the
county and take the necessary steps to bring to a closing.
Without that additional governmental action, the contract has no
validity. Because boards only act by ordinances or resolutions
or official actions of the board. The contract contemplated
that, that has not occurred so therefore there is the condition
precedent to a binding agreement, a resolution this board did
not occur, so the signature to the contract is a nullity.
Finally the conditions with respect to reaching the annexation
agreement in paragraph nine of the agreement are in conflict
with the provisions in paragraph four of the agreement, in
specifically the buyer has to satisfy the condition under
section nine, under section four it says that if the written
notice is not received that the seller can deem that the condi-
tion has been met. There is conflict in those two provisions.
The seller actually drafted or had control of the drafting of
the document, if there is a conflict and any ambiguity under the
law there is a presumption that it be construed against the
person drafting the document, so again we would probably prevail
there, in addition to the partnership law there is a very clear
statement that actual notice to a partner constitutes notice to
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the partnership and there is no question that there was actual
notice.
Mr. Chairman and members of the board we are very confident
that should the board and the county be sued for any enforcement
of the contract that we would be able to prevail on your behalf
in the litigation, hopefully that will not occur, hopefully
things will get back to normal and everybody will find that the
coming of the cool weather we can focus our attention on foot-
ball and world series and things of that nature and that this
matter can be laid to rest.
Mr. Smith - Thank you, Mr. Cranwell.
Mr. Cranwell - Now I have another engagement and if I could
I would like to be excused, and if anybody in the media wants to
ask me any questions I will be glad to answer them, but I do
need to move to another meeting.
Mr. Smith - Does anyone have any questions of Mr. Cranwell,
he does have to leave, anybody sitting on this board.
Mr. smith - Mr. Cranwell we certainly thank you very much.
Mr. Riley - Mr. Chairman would you excuse me to take Mr.
Cranwell back to the airport.
Mr. Smith - Yes sir, I certainly will.
Mr. Riley - In my absence the appropriate motion would be
to direct Mr. Cranwell to so notify Courthouse Associates in
writing of our position.
Mr. Sager - I make that in a form of a motion.
Mr. Longerbeam - seconded the motion.
Mr. Smith - It has been moved and seconded that we author-
ize Mr. Cranwell to notify Courthouse Associates, is there any
discussion. Is there any discussion. Those in favor please
signify by saying Aye.
Richard G. Dick - Abstained
W. Harrington Smith, Jr. - Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Aye
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
Mr. smith - Now then, is there anything else to come before
this -- Mr. Chairman do you want to take back over now. We pass
back and forth here like
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Mr. Dick - You are doing fine.
Mr. Riley - One point Mr. Chairman, if I might before I
take Mr. Cranwell back. This scenario has been, to put it
mildly, a tough situation for this board. I would like to
accept responsibility for this action, simply because of the
fact, even though I was not here as I was on vacation, I did not
draft the contract. I think the buck stops with my office as
far as trying to get information out to you all in a timely
basis. For some reason this piece of information did not get to
you, and as you all know I try and get everything out as expedi-
tiously as possible, I do not know how it happened, why it
happened. I offer you my apologies for what has happened and I
take full responsibility for it.
Mr. Smith - Mr. Riley in answer to what you just said, may
I state that I have been on this board five years, and I have
been allover this Commonwealth of Virginia Association of
Counties and I have talked to county chairman's and vice chair-
man's and county administrators and you are rated at the top as
a county administrator, but you are only human sir, like all of
us.
Mr. Riley - Well I offer the Board my apology in public
session because there is no excuse for it, I don't know how it
happened, but it happened, and hopefully we can move on and be
the board working together to get the job done for the communi-
ty.
Mr. Smith - Just remember sir, to err is human to forgive
is - you know where it goes.
Mr. Riley - Excuse me.
Mr. Longerbeam - If I could, I think it is probably the
appropriate time, before Mr. Riley walks out, I would just
simply say that I would think under the circumstances that we
probably owe Mr. Riley a vote of confidence, and I would so
move.
Mr. Smith - Is there a second to that motion.
Mr. Orndoff - What are you saying.
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Mr. Smith - A vote of confidence for Mr. Riley, as county
administrator, do I hear a second.
Mr. Orndoff - I would speak to it, I'll second it, but.
Mr. Smith - Discussion.
Mr. Orndoff - I personally, I know that John has had a lot
on him and everything, but I personally don't think that it was
all together John's fault, myself, so I will leave it at that.
Mr. Smith - Any further discussion.
Mrs. Sherwood - Mr. Chairman, I think as a board we have
not been conducting ourselves as we should ln public as much as
possible. I am not happy with the set of circumstances as they
were unfolding. I have not been happy with the lack of informa-
tion that I have had from time to time. I think as a board we
must be demonstrating that we can do better than this, we need
to be much more open with the public, addressing issues as much
as in the open as possible and we have many many more business
decisions to be making and I think that there are some things
that this board needs to be accomplishing in a much more profes-
sional manner. I am not here to place blame, although I would
probably specifically have some questions as to how we finally
did arrive at the predicament we seem to be in, and I am really
outraged at this set of circumstances in particular. We as a
board need to be discussing how we are conducting our business.
Mr. Orndoff - Another comment, Mr. Chairman.
Mr. smith - Yes sir, Mr. -
Mr. Orndoff - The way it was handled a lot of it in execu-
tive session I was dissatisfied, which we don't take any votes
or anything, and nobody heard what I said, and I am dissatisfied
with the way some of it was handled and things. I got the
information a lot of times after the fact was already made, and
that is the part I was unhappy with everything, the way every-
thing was done ahead of time. The agreements were made and then
brought in and set down, here is what we did, I didn't like
that. If we have an idea to do something I think the six board
memcers should set down and discuss it and then go and make the
deal, not make the deal than come back and let us have to eat
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it, couple of us, and that is what seem to happen a couple of
times and I was unhappy about it.
Mr. smith - Any further discussion.
Mr. Longerbeam - Call for the question.
Mr. Dick - I need to make a statement, but I will make it
later.
Mr. smith - Call for the question. Those in favor, signify
by saying.
Mr. Sager - Was there a second.
Mr. smith - Yes, Mr. Orndoff seconded it.
Mr. Smith - Those in favor, signify by saying Aye.
Richard G. Dick - Aye
W. Harrington smith, Jr. - Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Aye
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
Mr. smith - So carried, a vote of confidence for Mr. Riley.
Mr. Longerbeam - .Now if I could Mr. Chairman, I would like
to address some comments. I think probably what has happened
here is that --- Look I got big broad shoulders, I take blame
for things, I don't point fingers, I am not going to do it here
tonight. I would just like to layout for you my involvement in
this process from day one, and you tell me where the errors were
made and I will assure you that I will not make those same
errors again. I think that the board made the decision in
discussion in executive discussion and the decision in open
session to pursue a contract with Courthouse Associates, and Mr.
Riley and I were directed to head up that negotiation. Mr.
Riley and I did that in negotiating the price, to be perfectly
open and frank the price we negotiated down to was probably
seven or eight hundred thousand less than what the opening bid
was. We had several meetings and we did negotiate that price
and the other conditions of the contract. That information, I
believe was brought to the board in executive session, we dis-
cussed it, I personally wrote out the resolution that was read
and we voted on in open session to enter into that contract. At
that point I left the process until such time as the contract
was written.
Mr. Ambrogi was asked to put the contract
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together, I personally asked him to put the contract together.
Mr. Ambrogi proceeded, in some matter, to put the contract
together. It was faxed to me a number of days later, I read
through it, it was obvious to me that the language in the
contract was perfectly legitimate and legal as I construed it to
be, real estate language and the ordinary type things you find
in a real estate contract, and at that point, my next involve-
ment was some seven or eight days later by some how it came to
me that it had not been signed. At that point I called Mr. Dick
who - and told him I did not think the agreement had been signed
and forwarded to the Courthouse Associates. At that point Mr.
Dick took some actions that I am assuming that ended up with Mr.
Smith signing the document and getting it over to them. That is
my total involvement in it, I had no other discussions, I have
never met with anybody at Courthouse Associates with the excep-
tion of Mr. Dickinson and Mr. McLaughlin. At any time I spoke
to them Mr. Riley was there and we did it in joint - you know,
and we did it and there was nothing, there was nothing secret
about anything I have done, and I really kind of resent the fact
that the implication is that I somehow did something secret,
because I didn't. I did nothing, I don't think that - that
members of this board were not aware of. Now if there is
something I should do different than that than I will be happy
to do it.
Mr. Orndoff - Mr. Longerbeam, Mr. Chairman
Mr. Smith - Yes, can you give me a moment. Are you fin-
ished.
Mr. Longerbeam - Sure.
Mr. Smith - I would like to state something. The chairman
has prerogative to state something here. I will tell you where
I came into the act. We all went through the executive ses-
sions. It dawned on me that an agreement should have been
written by August 15, because we had given the City a deadline
of September 15. I called Mr. Riley and I said today is the
26th, where is this agreement, its suppose to be a thirty day
agreement to expire on midnight the same as the deadline on the
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annexation. With that Mr. Ambrogi brought the contract to my
place of business accompanied by our treasurer, Mr. Billy
Orndoff, we went in the conference room, we closed the door. I
read it three times, three times and when I was finished reading
it I looked up and I said, Larry, I am not a lawyer, but you
have studied this, how does it look, is it alright to sign this
document. Larry said, it certainly is, it's a good document. I
signed it. I gave it to Mr. Ambrogi, I had no copy, the one I
signed I gave to him. It was not my prerogative or my place to
have to follow through and make sure letters were written to
this business and that business. That's the reason you have
administrative people, so I did not give it another thought, not
another thought until I received the letter from the Courthouse
Associates, then I immediately went down and had a letter
written to the Courthouse Associates saying it's off. The whole
deal is off. Now in addition to that, after I sent that letter
down there I went down to the county office building and John
was not there, Mrs. Bayliss, I don't know if you were there or
not, however I walked in and said we have to get a letter to
Courthouse Associates right away, has every board member, this
was before I was hearing complaints about board members not
getting anything. I said, has every board member been notified
of this. One of the girls said, no I don't think so. I said,
well I want it done, like yesterday. That's when you picked
yours up Charlie, that was the day you were down there, remember
that Mrs. Bayliss.
Mrs. Bayliss - Yes sir.
Mr. Smith - I want it mailed out like yesterday. So then
it was allover as far as Harrington smith was concerned until
fit hit the shan, and when it came out in the news media of
course, then it created havoc, the people - the natives got
restless in the county and I don't blame them one bit, I don't
blame them one bit. As my wife said this afternoon I'm chairing
this meeting right now, so I will talk all night if I want. She
said, Harrington it has to be approached with intelligence,
honesty and accuracy and that is exactly what we have to do.
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Some of the things referred to me in the paper, they hurt me, I
- they - they questioned my integrity, they questioned every-
thing under the sun. The Democrats are saying the Republicans
are setting me up, and the Republicans are saying the Democrats
are setting me up. Well my mother set me up at about a month
old and I have been setting myself ever since, and if they want
to try and set me up, set up and be damned. That is all I have
to say.
Mr. Dick - I will tell my involvement. I believe, one
statement that you made, you may not remember. After Mr.
Longerbeam called me, I called you, John happened to be out of
town, and I asked you - I told you that the conflict of interest
that applied to me, I was not going to sign it, did you have any
problems signing it, you said no. From there on the rest of the
story you have already repeated it.
Mr. Smith - You are exactly right sir.
Mr. Dick - I have on many occasions, shied away from this,
have not participated, have left executive sessions. I have not
any involvement because of the possibility, the possible con-
flict of interest that is there. I try to do all of those
things and have some ethics and so forth and I -- yesterday
received a letter stating that alleged conflict of interest,
well I immediately asked Mr. Ambrogi for an opinion, I have that
and it states that there is conflict of interest, however the
Freedom of Information Act does not mandate it. I also went on
vacation, long - planned long before Courthouse Associates was a
known fact, or discussed in anyway shape or form. I received a
letter saying that I was in Hilton Head until after the 30th
implying that I was probably hiding down there or something. I
resent that. I have never run from anything in my life, nor do
I intend to start now. I also resent in the newspaper today
stating that I should have checked the - dotted the i's and
crossed the t'S. Do I have a conflict or not, am I an attorney
_ what is the case. I think we have a county attorney, I think
it was properly utilized, I think - you know - that the ball was
dropped and that is it. I certainly do not intend to share the
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blame for - what ever responsibilities I have I will take the
hit for, but not something I don't deserve and therein is the
end of my story.
Mr. smith - Thank you Mr. Chairman.
Mr. smith - Mr. Ambrogi - let me ask you one question.
When I gave you that document back, where did it go from there.
That is something that has never been answered. I never asked
the question.
Mr. Ambrogi - You are talking about the agreement that you
gave me that you signed in your office that day.
Mr. smith - Yes, the agreement that I signed that day. Did
it go directly or did it go to the county office building.
Mr. Dick - It didn't go anywhere.
Mr. Ambrogi - I don't know if it went back to Courthouse
Associates or to
Mr. smith - Yes it was dated the 26th.
Mr. Orndoff - They signed it on the 25th.
Mr. Ambrogi - Do you remember Jim?
Mr. Longerbeam - No I did not see it.
Mr. Ambrogi - Do you know where it went Carol?
Mrs. Bayliss - It was brought back to the office long
enough for me to notarize Harrington's signature and then it
went back to your office.
Mr. Ambrogi - Alright then, I was to give it back to
Courthouse Associates.
Mr. smith - Then it went back. That's the only question
that I had ah, ah, I hate to see, I hate to see the political
get involved in this. This board has got to be by partisan on
the local level it's going to be absolutely utter chaos and we
just can't do it. I try not to be a part of it, I get accused
by this group and that group, I do my own thing, I'm my own man
and I will continue to do my own thing and my own man, but now
they have got my opponent in on this thing, they got my opponent
in on it who doesn't know whether he is coming or going, and he
this guy states he wants Mr. Ambrogi to do an investigation,
well Mr. Ambrogi is a part of it. I tell my opponent lets just
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call the state police and have a state police investigation
let's have a really good one. God.
Mr. Orndoff - Jim on negotiating the contract. You said Mr.
Ambrogi, do you mean he wrote it.
Mr. Longerbeam - No, I am not saying - I don't know who
wrote the contract Charlie. I am finding out now that I don't
think Mr. Ambrogi did, but Mr. Ambrogi was directed to get the
contract in order, that's all, and I believe Larry told me
later, and Larry can correct me if I am wrong, that he had one
of the partners write the contract because they knew what the
elements of the contract should be. Is that essentially right.
Mr. Ambrogi - They had already written it. Nobody called me
Mr. Longerbeam - I had no knowledge, when I last left it, I
left it with Larry that's why when somebody called me about the
contract hadn't been signed, I called Larry and I called Dickie
and it was signed.
Mr. Orndoff - That is when Mr. Longerbeam took it to you
and you read it.
Mr. Ambrogi - John called me about a contract, which is the
first -- well I had known there had been discussions, I think
Harrington was maybe triggered by the late date.
Mr. Smith - The late date is what triggered me.
Mr. Ambrogi - That the time had passed. I guess it was Jim
or John that called me. I said well sure let me get in touch
with someone at Courthouse Associates. I called George Johnston
said George we better get together and draft a contract. George
said, well my partner Eds Coleman already has it on disk,
apparently it had already been negotiated, and done so they just
ran it off the disk, they got it to me, as soon as I got it I
faxed it, I mean I read it, and studied it and faxed it to Jim
Long
Mr. Dick - You read the contract and studied it.
Mr. Ambrogi - Several times, in fact I mentioned--
Mr. Longerbeam - Somebody, and I didn't know who because
there was no cover sheet, but it was faxed to me, I read it, I
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called Larry's office to say that I saw nothing wrong with the
contract. Larry was not there and I ended up talking to Glen
Williamson. At that point, I had - that was my last contact I
had with it. Now I am a real estate agent. I knew what was in
the contract, I knew the language of the contract. It is common
everyday language in every real estate contract that I deal with
and if you write a contingency in there, generally if you don't
do something to exercise it, it it become a factor complete, it
just becomes in force. I knew that, I could have called, I
could have -- I never even thought about it, to be perfectly
honest, I never thought about it, if I would of thought about it
I would have done it, I didn't even think about it, it never
even dawned on me, that I should call somebody to make sure that
a letter was written. It just didn't dawn on me.
Mr. Sager - I want to fix the problem, not the blame, Sir.
I would like to make two proposals. It may be inappropriate at
this meeting, but I would like for the proposals to be as a part
of our next agenda in the October meeting, sir. one, eviden-
tially we have a problem with monitoring, since we froze the
position of Assistant County Administrator we have put that
burden on Mr. Riley and he so delegates some of it to other
staff, but we have encumbered him with a lot of additional work
load. So I would like to see the Assistant County Administrator
position unfrozen, and action taken to receive applications for
that position, sir. At this point and time when all of this is
completed I would hope sir that there would be no more occasions
when deadlines are not met, letters are not sent or board
members are not informed.
Mr. smith- Do you want to make that in the form of a
motion?
Mr. Sager - That is a motion sir. For the October meet-
ing, yes sir.
Mr. Smith - Do we all understand that, is there a second to
that motion.
Mr. Longerbeam - I second that.
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441
Mr. smith - Is there any discussion, being no discussion I
call for the vote.
Richard G. Dick - Aye
w. Harrington smith, Jr. Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Aye
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
Mr. Orndoff - Mr. Ambrogi has not been allowed to go into
executive session with us. Mr. Dick did not -- every time has
been asked, I have asked John that, Mr. Dick has indicated that
we don't need him. I think we did need him. This would not
have happened if Mr. Ambrogi would have been it, and I am going
to make a motion right now that we have no executive sessions
unless Mr. Ambrogi is there, unless he is out of town and we
have to have an executive session any way shape or form at that
point.
Mr. smith - You have heard the motion is there a second to
the motion.
Mrs. Sherwood - Second
Mr. Smith - It has been moved and seconded that Mr. Ambrogi
attends all executive committee meetings, is there any discus-
sion on the subject.
Mr. Dick - Yes sir. I think there has been occasions were
I have said I don't see that he is needed, but nobody has ever
said, that a legal matter or something that --- I have never
said during a legal matter that he is not welcome or not invit-
ed. I don't think one iota would have been changed had Mr.
Ambrogi been at that executive meeting, nothing would have been
done differently, there was nothing said, or done other than get
a contract so what -- I don't know what he would have offered
had he been there, I don't know anything about that, but I don't
believe there is one thing that would have been done differently
had Mr. Ambrogi been there, he was apprised of the situation, he
has read the contract, he was ah - through the board action, Mr.
Longerbeam and Mr. Riley was to get to him, that happened and ah
- I don't know what would have been done in executive session
that would have changed that in any way shape or form, but I
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have no objections to Mr. Ambrogi staying as long as he wants to
in executive session or anytime, he is welcome forever.
Mr. Orndoff - He has never been asked.
Mr. smith - Thank you Mr. Dick.
Mr. Dick - Well I didn't know that I had to ask him to be
honest with you, I didn't know that it was my position to ask
him.
Mr. smith - I want you all to direct it to the chair I
don't want this back and forth, I won't stand for it.
Mr. Longerbeam - As a matter of policy, I think that is an
excellent move Charlie, I don't have --- as a matter of policy I
think that is fine.
Mr. smith - Is there any further discussion on the subject.
Mrs. Sherwood - Mr. Chairman.
Mr. smith - Mrs. Sherwood.
Mrs. Sherwood - I recall at the second executive session,
quite frankly that discussion came up about where was the
contract, and I think we were realizing there was a date and
really no one physically knew where this contract happened to
be. I think it would of been a benefit to have had Mr. Ambrogi
in that particular executive session as well as to hear our con-
cerns as board members as to what was going to be in this
contract. We can't read minds and I concur that Mr. Ambrogi
should be in every executive session.
Mr. Smith - Thank you Mrs. Sherwood, is there any --
Mr. Dick - Yes, I would ask Mrs. Sherwood what would of
been asked of a board member to be in the contract etc. had Mr.
Ambrogi been there. We have done contracts before on landfill
etc., I think it has been boom here it is, boom that's it.
Mr. smith - Have you finished Mr. Dick.
Mr. Dick - Yes.
Mr. Orndoff - Why pay the commonwealth attorney to be our
legal acting accountant or legal advisor and have him setting
out on the street. Now Mr. Dick can argue all he wants to I
know that he is using politics in this situation, because anyone
would of brought up one night at the board meeting to cut the -
443
the supplemental income on the Commonwealth Attorney must have
been looking at the politics.
Mr. Smith - Mr. Orndoff to answer you as chairman of this
meeting it is exactly what I am trying to get away from on all
our parts.
Mr. Orndoff - Mr. Chairman, its no point in letting one
person take the authority and try to down the rest of the board
members and then expect to get by with it. Well I am not going
to take it, I am honest, I am not a liar and I am not going to
sit on this board and take part in it, and have to be criticized
like I have this week, because I did not have anything to do
with this contract. It was never given to me and everything
else has been given to me, as far as my knowledge except the
school budget was put in front of me the day before, I mean the
same day I came in and was told not to give it to me, that came
straight to me. Now
Mr. Smith - Mr. Orndoff I agree with what you are saying
sir, and I am going to take a personal privilege here and tell
you just what I wrote since all of this is being aired. (Mr.
Smith read from a prepared statement at this time).
Mr. Sager - Mr. Chairman, call the motion, please sir.
Mr. Smith - Call for the motion, has it been seconded.
Mr. Sager - Yes sir.
Richard G. Dick - Aye
W. Harrington Smith, Jr. - Aye
James L. Longerbeam - Aye
Beverly J. Sherwood - Aye
Robert M. Sager - Aye
Charles W. Orndoff, Sr. - Aye
Mr. Smith - Is there any further discussion now, I hope we
can put this thing to rest once and for all.
Mr. Sherwood - Mr. Chairman?
Mr. Smith - Yes, Mrs. Sherwood.
Mrs. Sherwood - I have one further question and one that
has been posed to me by a constituent and I feel very obligated
to ask it, because I do not know the answer. Who engaged Mr.
Cranwell for this particular - being a contract rather than an
annexation item, and do we know what the cost is?
444
Mr. smith - Oh ha - I told you as far as my involvement was
in it, now this is not a cop out on my part I will just answer I
do not know. I am chairing tonight because of possible conflict
with our permanent chairman.
Mr. Dick - I don't - I think -
Mr. Longerbeam - I would suspect that that one of two
things happened. Either somebody told Dickie Cranwell to call
John, where is John, to call John or John called Dickie, I don't
know, but let me say that - that - let me say that that it had
to be one of the better moves made in this whole thing, I don't
know who did it.
Mr. smith - with the response we got tonight, it certainly
is.
Mr. Sager - I would think this would be within Mr. Riley's
authority, he has monies to expend for legal ah - legal counsel,
rather it be local or and I don't see any
Mr. Smith - Mr. Riley while you were gone you got a vote of
confidence from this board, it was unanimous.
Mr. Riley - Ah thanks.
Mr. Longerbeam - No pay raise.
Mr. smith - I didn't want you to sit there and have a
seizure on us. The question facing us right now sir is Mrs.
Sherwood asked the question who authorized who hired the honor-
able Dickie Cranwell to represent us in this situation.
Mr. Riley - He was already hired under our previous retain-
er as far as annexation was concerned, and since the contract
involved those issues I went ahead and hired him under that same
provision.
Mr. smith - And Mrs. Sherwood asked - do you mind me
speaking for you Mrs. Sherwood.
Mrs. Sherwood - Not at all - you are accurate so far.
Mr. smith - She asked another question, she wanted to know
what the approximate cost would be of this.
Mr. Riley - I don't know, ah I told the reporters that his
contract, Moore & Cranwells contract for him as principle is
$200 an hour and as you go down the scale as far as other
445
lawyers concerned and paralegal it's less. So it goes from $200
down to $45 an hour.
Mr. smith - I guess maybe we are fortunate somebody from
Front Royal told me this afternoon they are using Mr. Cranwell
and it's $250 an hour.
Mr. Longerbeam - I don't think we paid for his transporta-
tion this time either, not today, because I think he was already
up here.
Mr. Riley - No.
Mr. Smith - Yep.
Mr. smith - Alright are there any more questions, discus-
sions ---
Mr. Orndoff - One question.
Mr. smith - Yes sir, Mr. Orndoff
Mr. Orndoff - I ask Jim, what was the interest rate on that
loan.
Mr. Longerbeam - On the rent loan at the bank?
Mr. Orndoff - On that loan if we had bought that building.
Mr. Longerbeam - The interest rate - the interest rate was
- I believe Mr. Feltner had agreed that the interest rate would
be less than prime, and I defy you to get that any place. We
had already negotiated this.
Mr. Orndoff - I had never heard what the interest rate was
going to be.
Mr. Longerbeam - At that point we really didn't know, and
we wouldn't have known - we wouldn1t have known until until it
actually - until we got down and discussed with Mr. with Mr. Mr.
Feltner, but in my conversation, and Mr. Riley and ours conver-
sation with Mr. Feltner it was going to be less than prime, less
than the prime rate, which would be some place under 6%.
Mr. Orndoff - Well I was thinking we was - indicated that
it would resume the same loan.
Mr. Longerbeam - They - their - their - their rate is at ah
half above prime I believe, and Mr. Feltner indicated because we
were a government entity and there were certain tax advantages
that we would be down below prime.
446
Mr. Smith - Any other questions, anybody wish to make a
statement on this board. If not I will entertain a motion to
adjourn.
Mr. Longerbeam - So moved.
Mr. Sager - Second.
Mr. Smith - moved and seconded - discussion. Adjourned.
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