014-04
BOARD OF SUPERVISORS
COUNTY OF FREDERICK
FREDERICK, VIRGINIA
RESOLUTION
At a regular meeting of the Frederick County Board of Supervisors held on the 24th day
of August, 2004, the following resolution was adopted by a majority of the members of the
Board of Supervisors by the following roll call vote, as recorded in the minutes of the meeting:
PRESENT: VOTE:
Richard C. Shickle, Chairman Aye
Barbara E. Van Osten Aye
Lynda J. Tyler Aye
Bill M. Ewing Aye
Gary W. Dove Aye
Gina A. Forrester Aye
ABSENT:
BOARD OF SUPERVISORS
A RESOLUTION AUTHORIZING FREDERICK COUNTY
TO SUBMIT AN APPLICATION TO VPSA FOR SCHOOL FINANCING
AND TO SCHEDULE A PUBLIC HEARING
WHEREAS, the Board of Supervisors has determined that it is advisable to contract a debt and
issue general obligation bonds of the County in the maximum amount of $9,200,000 to finance certain
capital improvements for public school purposes (the "Bonds") and to sell such bonds to the Virginia
Public School Authority ("VPSA"); and
WHEREAS, the Board of Supervisors has determined that it may be necessary or desirable to
advance money to pay the costs for such capital projects for public school purposes (the "Projects") and
to reimburse such advances with proceeds of one or more financings;
NOW, THEREFORE, BE IT RESOLVED BY THE FREDERICK COUNTY BOARD OF
SUPERVISORS:
The Board of Supervisors adopts this declaration of official intent under Treasury Regulations
Section 1.150.2. The Board of Supervisors reasonably expects to reimburse advances made or to be
made by the County or the School Board to pay the costs of acquiring, constructing and equipping the
Projects from the proceeds of the Bonds to be issued in the maximum amount of $9,200,000.
The County Administrator is authorized and directed to submit an application to the VPSA in
order to sell the Bonds to the VPSA at the Fall 2004 VPSA bond sale.
The County Administrator is authorized to advertise a public hearing to be held on September
22, 2004 on the issuance ofthe Bonds.
This resolution shall take effect immediately upon its adoption.
Adopted this 24th day of August, 2004.
Board of Supervisors Resolution No.: 014-04
cc: Cheryl Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
Lisa Frye, School Finance Director
ATIACHMENTB
WNG AND INTERMEDIATE-TERM FINANCING APPLICATION
VIRGINIA PUBLIC SCHOOL AUTHORITY
SCHOOL FINANCING BONDS (1997 RESOLUTION) SERIES 2004 B
1. Name of County/City:
GENERAL INFORMATION
Frederick County
540-665-5666
540-667-0370
jriley@co.frederick.vaus
JohnR Riley; Jr
107 N. Kent Street
Wmchester, VA 22601
2. Name and address of County Administrator/City Manager:
Telephone:
Fax:
E-mail:
540-662-3888
540-722-2788
deanw@frederick.kI2.vaus
William C. Dean, Ph.D., Superintendent
P.o. Box 3508
Winchester, VA 22601
3. Name and address of School Superintendent:
Telephone:
Fax:
E-mail:
4. Name of Principal Contact (All further cOJTeSpondence will be directed to 1his person unless noted)
Telephone:
Fax:
E-mail:
JohnR Riley, Jr. (copy to William C. Dean, Ph.D., Superintendent
540-665-5666
540-667-0370
jriley@co.frederick. va us
Mailing Address: 107 N. Kent Street
Winchester, VA 22601
Hand Delivery Address: same
McGuireWood UP
Bomrie France
901 East CaIy Street
Richmond, VA 23219
(firm, attorney, address, telephone, fax & E-mail:)
5. Bond Counsel:
bfrance@mcguirewoods.com
804-775-4395 TEL
804-698-2054 FAX
Note: Localities are required to take all action necessary to procure 1he services of qualified Bond
Counsel prior to the submission of this application.
1
PROJECT INFORMATION
THE FOlLOWING SECTION OF THE APPUCATION IS RESERVED FOR STANDARD
REQUESTS FORFINANCINGS AMORTIZED FROM ELEVEN YEARS AND LONGER
L Requests for LoIU!- Term Proiect FinandnlF (See page 4 for Intermediate-Term Financing)
Section A - Project Description
1. Briefly describe 1he Project(s) and indicate whether the Project(s) will be subject to any leases or
management or service contracts: (a separate page may be used).
(a) fotn1h middle school- construction
(b) 11th elementary school- continued design, site work, and construction
2. Total Expected Costs:
(a) $8,500,000
(b) $700,000
3. Cost by Project(s) and Phase: (separate page may be used)
Project(s)
Phase
(a) 4th middle school
th
(b) 11 elementary
Estimated
Cost
$26,600,000
$12,900,000
Estimated
Useful Life
30+ years
30+ years
Estimated
Completion
Date
Fall 2005
Fall 2006
4. Amount ofVPSA financing applied for (proceeds requested): $ 9.200.000
Note: The VPSA can only purchase local school bonds in whole multiples of $5,000. If your actual cost
is not a whole multiple of $5,000, please revise that amount up or down, (e.g., actual amount $5,032,600
should be revised to either $5,035,000 or $5,030,000). Do not request a greater dollar amount than you
will reasonably expect to be able to spend.
Minimum proceeds required, if applicable: $
Maximum authorized par amount: $
Explanation for minimum proceeds requirement:
Note: In order to meet requests for a minimum amount of proceeds, such as in COnnectiOD with the
refunding of a prior obligation, it will be necessary to have sufficiently broad bond issuance authority
to accommodate possible adjustments needed in the par amount of local school bonds issued at the time
of the VPSA bond sale. School and governing body resolutions and notices of public hearing should be
prepared accordingly.
2
5. Has the County/City applied for a Literary Fund Loan 10 fund all or a portion of the Project(s)? (Indicate
whe1her loan was for the entire cost)
yes X no
If yes, please list amount applied for and date of application.
Amount $
Date:
Date of Approval :from Board of Education if Literary Funds are expected:
Date:
Note: If fimds are borrowed from the VPSA in lieu of receiving a Literary Fund loan, the locality will be
removed from the Literary Fund waiting list for this Project. This does not apply if a locality permanently
fimds a portion of the Project with VPSA bonds and fimds the remainder with a Literary Fund loan In any
event, future Literary Fund loans may not be used 10 redeem bonds sold 10 the VPSA
6. Olher Funding Sources:
Section B - Project Stotus
What is the status ofpIanning, design and construction for the Project(s)? Answer the following questions for
the Project(s): (a separate page may be used).
1. Have the final plans and specifications, architect's or engineer's statement and the division
superintendent's approval been submitted 10 1he Superintendent of Public Instruction (as required by
~22.1-140 of the Code ofVirginia,)?
_(a) yes .Q:!) no
2. What is the bid date for the Project(s): (a)August 2003; (b) February 2005
3. Estimated Construction Start Date: (a) October 2003 ; (b) April 2005
4. Estimated Construction Comple1ionDate: (a) Fall 2005; (b) Fall2oo6
5. Has any money been expended on the Project(s)? W yes ~
If yes, indicate (i) the source of such money (iI) 1he date(s) of expenditure of such money, and (ill) the
type of expenditure. (See questions 4 and 5, on page 6, under "Project Authorization")
(i) VPSA
(ii) Summer 2002 to present
(iii) design and purchase of property and site improvement
6. HastheProject(s)beencompleted? _yes _X_no
3
Section C - Finonc:ing Requested
Preferred Amortization Schedule:
Principal is expected to be paid in annual installments starting on July 15, 2005. The Authority will consider
permitting the use of amortization schedules other 1han level principal and will consider amortization periods
other 1han twenty years. To request an alternative amortization schedule for such loans, please indicate your
preference on the application
Preferred Amortization Period:
Preferred Principal Structure:
11-20 years 20 years _ X_
Over 20 years (Explain)
Level Principal
Level Debt Service
Other (Explain)
X
--
THE FOILOWING SECTION OF THE APPUCATION IS RESERVED FOR REQUESTS FOR
FINANCING EQUIPMENT OR OTHER PROJECTS AMORTIZED OVER A PERIOD OF TEN
YEARS OR LESS.
II. Reouests For Intermediate-Term Financinl!: (See page 2 for Long-Term Financing)
Section A - Project Description
1. Briefly describe the Project(s) and indicate whether the Project(s) will be subject to any leases or
management or service contracts: (a separate page may be used).
2. Total Expected Costs:
3. Cost By Project(s) and Phase (Construction or Equipment Acquisition Schedule) (separate page may be
used)
Estimated
Completion
Date
Project(s)
Phase
Estimated
Cost
Estimated
Useful Life
4
4. Am01.mt ofVPSA Financing applied for (proceeds requested): $
Note: The VPSA can only purchase local school bonds in whole multiples of $5,000. If your actual cost
is not a whole multiple of $5,000, please revise 1hat amount up or down, (e.g., actua1 amount $5,032,600
should be revised to ei1her $5,035,000 or $5,030,000). Do not request a greater dollar amount than you
will reasonably expect to be able to spend.
Minimum proceeds required, if applicable: $
Maximum authorized par amount: $
Explanation for minimum proceeds requirement
Note: In order to meet requests for a minimum amount of proceeds, such as in connection with the
refunding of a prior obligation, it will be necessal)' to have sufficiently broad bond issuance au1hority
to accommodate possible adjustments needed in 1he par amount of local school bonds issued at 1he time
of 1he VPSA bond sale. School and governing body resolutions and notices of public hearing should be
prepared accordingly.
5. Has 1he County/City applied for a Literal)' Fund Loan to fimd all or a portion of1he Project(s)? (Indicate
whe1her loan was for 1he entire cost)
yes
no
If yes, please list amount applied for and date of application
Amount $
Date:
Date of Approval from Board of Education ifLitermy Funds are expected:
Date:
Note: If funds are borrowed from 1he VPSA in lieu of receiving a Litermy Fund loan, 1he locality will be
removed from 1he Literal)' Fund waiting list for 1his Project This does not apply if a locality permanently
funds a portion of1he Project wi1h VPSA bonds and funds 1he remainder wi1h a Literary Fund loan. In any
event, future Literary Fund loans may not be used to redeem bonds sold to 1he VPSA .
6. Other Funding Sources:
Section B - Project Stotus
. What is 1he status of planning, design and construction or acquisition for 1he Project(s) or Equipment?
. Answer the following questions for the Project(s):
1. Estimated Start Date:
5
2. Estimated Completion Date:
3. Has any money been expended on the Project(s)? ----yes no
If yes, indicate (i) the source of such money (ii) the date(s) of expenditure of such money, and (ill) 1he
type of expenditure. (See questions 4 and 5, on page 6, under "Project Au1horization")
4. Has1heProject(s)beencompleted? _yes no
. Answer the following questions for the Project(s) (if applicable):
5. For Projects, have 1he final plans and specifications, architect's or engineers statement and the division
superintendent's approval been submitted to the Superintendent of Public Instruction (as required by
~22.1-140 of the Code ofVircinia)?
_yes _no
6. What is 1he bid date(s) for the Project(s):
Section C - FllUInCing Requested
Amortization Schedule Preferred
(Debt Service is expected to be paid wi1h semi-annual payments. The first interest payment is due
July 15, 2005 with principal amortization starting on January 15, 2006.)
5 years
10 years
Other
6
PLEASE COMPLETE EACH OF THE FOLLOWING QUESTIONS:
IlL Proiect Authorization
1. Have your Boards approved the Project(s) and authorized this application to VPSA for the needed
financing?
Approved by School Board
Approved by County Board! City Council
_x--'yes _no
_X--'yes _no
NOTE: Please enclose certified copies of resolutions.
2. Were these bonds or any school Projects the subject of a referendum within the previous
5 years?
-----yes _x_no
If yes, provide the date of referendum:
Did the referendum pass?
-----yes _no
NOTE: Please enclose a copy of the baUot question and the official results.
3. Person(s) responsible for disbursing and investing bond proceeds.
Name:
Address:
Telephone:
Fax:
Lisa K Frye, Director of Finance
P.O. Box 3508, Winchester, VA 22601
540-662-3888
540-722-2788
4. Will bond proceeds from this sale be used to repay a Bond Anticipation Note, Certificate of Participation
or other form of interim/temporary financing (the ''Prior Obligation")?
-----Yes_x_no
If Yes, please provide the following terms of the Prior Obligation:
(i) Name and Amount of Prior Obligation and Bond Counsel for Transaction
(ii) Date of Issue and Maturity of Prior Obligation
(ill) Redemption Provisions (e.g., notice, premium, etc.)
(iv) Amount of Prior Obligation to be Refimded with VPSA bond proceeds
7
(v) Please provide a brief description of 'the o1her anticipated sources of fimds to refund 'the Prior
Obligation (e.g., local general fimds)
(vi) Please provide any o1her amounts needed to refimd 'the Prior Obligation, including any accrued
interest and redemption premium
(vii) Unexpended proceeds as of date of application
(viii) Date Prior Obligation is intended to be redeemed
5. (a) Were the proceeds of 'the Prior Obligation used to reimburse yourself for expenses paid before
'the Prior Obligation was obtained?
-----yes _x_no
(b) Will bond proceeds from this sale be used to reimburse you for prior expenditures?
_x ---'yes _no
H the answer to 5(a) or 5(b) is Yes, please attach a copy of your reimbursement resolunon.
Also, please include a list briefly describing the expenditures you plan to reimburse with
proceeds from 1his sale. The proceeds would be used to reimburse 'the comrty for any
site or construction invoices which may be paid prior to receipt of 'the bond proceeds.
(c) What amount of proceeds of 'the Prior Obligation have been spent?
(d) What amount of proceeds of 'the Prior Obligation do you anticipate having been spent by
Novemberl0,2004?
(e) Are 'the proceeds of 'the Prior Obligation invested wi'th SNAP? -----yes _no
If no, where are they invested?
6. Have you executed any undertaking in regards to continuing disclosure not associated with 'the
VPSA?
_x---'yes _no
If Yes, please include copies ofany such undertakings. Please refer to 'the Fall 2002
issue for copies of the undertaking. It is an Industrial Development AuIhority issue dated November 2001.
8
BY SIGNING THIS APPLICATION, THE LOCAL OFFICIALS ACKNOWLEDGE mAT IF
FUNDS ARE BORROWED FROM THE VPSA TO FUND A PROJECT IN LIEU OF
RECEIVING A LITERARY FUND WAN, THE WCALITY WILL BE REMOVED FROM
THE LITERARY FUND WAITING LIST FOR THIS PROJECT. THE LOCAL OFFICIALS
ALSO ACKNOWLEDGE mAT FUTURE LITERARY FUND MONIES MAY NOT BE USED
TO REDEEM BONDS SOLD TO THE VPSA.
m ') /1..,
S;g.,.wrerequlled (eOUM ~?
Signature required t ~l.i-. t. ~
(Superintendent)
THIS APPLICATION MUST BE COMPLETED AND RETURNED BY 5:00 PM ON AUGUST
31,2004 TO:
Richard A Davis, Public Finance Manager
Department of 1he Treaswy
Commonweal'th of Virginia
Bv Delivery 10:
101 ~or1h 14th St., 3rdFloor
Richmond, Virginia 23219
Bv U.S. Mail 10:
P.O. Box 1879
Richmond, VA 23218-1879
LOCALITIES NOT RETURNING THIS FORM WILL NOT BE INCLUDED IN THE SALE.
9
YFrederick County Public Schools
/ ... to ensure all students an excellent education
D~ector of Finance fryel@frederick.k12.va.us
DATE:
August 18, 2004
TO: John R. Riley, County Administrator
t.'~
THROUGH:William C. Dean, Ph.D., SuperintendMi"Y"\
FROM: Lisa K Frye, Director of FinancetfJrtJ5JJ-SJ
SUBJECT: Requested Board of Supervisor Actions Regarding:
. Revised 11th Elementary School Project Cost
. Beginning Transportation Facility Project
. Fa1l2004 VPSA Bond Issue
The above-listed items related to the Capital Improvement Plan (CIP) and to the FY2005
budget require Board of Supervisor action. The school board requests discussion and
action at the supervisors' meeting on August 24, 2004. Please review the information
herein and provide direction. The VPSA application is due August 31, 2004.
Revised Project Cost for the 11th Elementary School
On July 20, 2004, the school board approved the increased capacity of the 11th
elementary school in the southeastern part of Frederick County to 644 at an increased
estimated project cost of $12.9 million. The original project estimate was $10.8 million.
Appropriation is requested to reflect the increase. (see attached letter from AI Orndorff)
Beginning Transportation Facility Project
The CIP reflects the next project priority to be the new transportation facility. This
project was removed from the Spring 2004 borrowing, delayed six months, and is now
included in the Fall 2004 application. Appropriation of $1 million for the purchase of
land and initial design work for the project is requested before proceeding.
Fall 2004 VPSA Bond Issue
The application is being prepared based on school board approval of its capital
improvement plan and subsequent revisions. Board of supervisor action regarding
approval of the application and commibnent for a public hearing is necessary at their
August 24, 2004 meeting in order to meet the required deadline. (see attached
resolution)
C: School Board Members
.rFrederick County Public Schools
.7 ... to ensure all students an excellent education
Assistant Superintendent for Administration
orndorfa@frederick.k12.va.us
TO:
William C.' Dean, Ph. D.
Superintendent of Schools
FROM:
AI Orndorff
Assistant Superintendent for Administration
aF
SUBJECT:
DATE:
Revised 11th Elementary School Project Cost
August 9, 2004
Attached is a revised project schedule for construction and cost estimate for the 11th
elementary school scheduled to open the Fall of 2006. This revision is necessary to
accommodate the larger program capacity of 644 members as adopted by the school board at
their June 15, 2004 meeting. The original scoping of this school was for the 2000 capital
improvement plan and was for a smaller 528 program capacity facility. The larger 644 member
program capacity adds five additional classrooms, one at each grade level, first through fifth,
and additional hallway floor space. The projected building square footage is at 81,000 square
feet.
1415 Amherst Street
P.O. Box 3508
Winchester, Virginia 22604-2546
www.frederick.k12.va.us
540-662-3888
fax 540-722-2788
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YFrederick County Public Schools
7" ... to ensure all students an excellent education
Director of Finance fryel@frederick.k12.va.us
DATE:
August 18, 2004
TO:
John R. Riley, County Administrator , ~
Lisa K. Frye, Director of Finance ~~oY
VPSA Fall 2005 Bond Sale Application, Purpose and Resolution
FROM:
SUBJECT:
This memo outlines the actions needed to apply for and approve the fall bond sale.
The application:
Attached is the application for the fall 2004 bond issue, which has been signed by Bill Dean and needs to
be signed by you. No other signatures are required. The application deadline is August 31, 2004. Please
review, sign the application at your convenience, and call me when it is ready.
The 1st resolution:
Also attached is the VPSA resolution for the board of supervisors to consider at their August 24, 2004
meeting. The supervisor's resolution authorizes the application, states its intent to issue bonds, and
authorizes advertisement of a public hearing on September 22, 2004. This initial resolution and the notice
of public hearing have been e-mailed to your office. As a reminder, the requirement for advertisement of
the hearing is once a week for two consecutive weeks in the same newspaper with the second publication
at least a week before the hearing.
The resolution is for a total of $9,950,000. This amount is based on the estimated cash needed until May
2005 (the date of the next bond sale) and is intended for the fourth middle school construction
($8,500,000), construction of the eleventh elementary school ($700,000), and land acquisition and
design for the transportation facility ($750,000).
The 2nd resolution:
If the public hearing and subsequent action can take place on September 22, 2004, then the September
30th filing deadline for the adoption resolution can be met. The authorizing resolution has been reviewed
by bond counsel.
Please let me know if this schedule, or any piece of it, is not suitable for you. If you have any questions,
concerns, or changes, please contact me. Thank you.
pc: William C. Dean, Ph.D., Superintendent
1415 Amherst Street
PO Box 3508
Winchester, Virginia 22604-2546
wwwJrederick.k12.va.us
540-662-3888
fax 540-722-2788