Board of Supervisors 08.28.08


Thursday, August 28, 2008

PRESENT: Mr. Tommy Harvey, Mr. Allen Hale, Mr. Tommy Bruguiere,
Ms. Connie Brennan and Mr. Joe Dan Johnson

COURTHOUSE PROJECT – Mr. Randy Vaughn and staff with Wiley & Wilson
presented the final (95% complete) design for the courthouse complex. The
review showed the final layout, parking, entrance, landscaping and interior
finishes for the complex. Mr. Vaughn then presented the final project
budget of $11,172,970. Mr. Carter noted that some of the A/E fees and
Testing/Survey fees have already been paid and financial planning has,
therefore, been based on $10,371,550.

Mr. Roland Kooch, Davenport & Company, presented three options for financing
the project. The options are based on $10,371,550 as the total to be
financed less $2,294,588 equity available to be used for the project –
leaving a total of $8,076,962 to be financed.

Option 1: A Bank-Qualified (“BQ”), Tax-Exempt Private Placement – a direct
bank loan for the entire amount. This option allows the county to finance
the entire amount at 4.5% interest. Terms of financing may be limited to 20

Option 2: Rural Development Loan – allows the county to borrow a maximum of
$7.5 million for this project at 4.125%. The loan allows for a flexible
prepayment plan with no penalties. A second financing vehicle or the use of
county monies will be required to cover the $577,000 not covered by this

Option 3: Virginia Resource Authority “VRA” – allows the county to borrow
the entire amount at 4.22%. This loan has financing terms up to 30 years
but higher upfront costs.

After reviewing all options, Mr. Kooch recommended Option 2 utilizing an RD
loan. The county would pay the $577,000 up front from the General Fund and
finance the project for 40 years. After repaying the $577,000 to the
General Fund over the first two years of the loan, the county would then
accelerate repayment to pay the loan off in 19 years (in 2027) instead of 40

Mr. Carter said that the project is ready to go to bid in mid-September. He
suggested that staff prepare a resolution accepting the final design and
selecting a financing option for the September Board meeting to allow the
project to proceed. Supervisors agreed.

Ms. Brennan held a town hall meeting in Faber with 60 people attending. He
said that attendees expressed opposition to the county’s proposed use of the
Bunny Lane and Cove Valley sites and the residents of Schuyler asked that
the site remain in Schuyler. Mr. Hale said that he went back to the
potential Schuyler site and walked over it again. Mr. Hale said that that
site is for sale and the county should move forward with the purchase of
that property. Mr. Hale then made a motion (Ms. Brennan seconded) to
authorize staff to hire professional services to evaluate the site and
negotiate the purchase of the property.

Mr. Johnson said that the motion does not preclude the county from
proceeding with one of the other options on the table. He noted that the
county offered the asking price for the Bunny Lane property which is on the
market. He said that if the Schuyler site is not suitable, the county has
options. Mr. Harvey said that he still wants to consider the Cove Valley
site, noting that he thought the group was willing to pursue the issue. Mr.
Hale said that he does not see that group as willing to move forward with
the county. Mr. Harvey said that the proposed Schuyler site is within just
½ mile of the Albemarle County line with a completely different service area
from the Faber site. Mr. Harvey said that the Schuyler site is isolated and
will not be utilized by county residents traveling along Rt. 29. Mr. Hale
said that the site is not isolated if you live in Schuyler. Mr. Harvey said
that the county should go back then and build a site in Afton. He said that
others in the county have had to give up their sites. Mr. Hale said the
Board needs to move ahead with a site. He said that putting one where folks
want it versus where it will cause an uproar makes sense. Mr. Harvey asked
whether the county plans to blow $10,000 for evaluation of a site that is
not feasible. Mr. Hale said that he is not sure whether the site is
feasible. He noted that his motion says that the county will evaluate the
site from an engineering point of view. Mr. Hale noted that the site does
have county water and sewer, three-phase power and a commercial entrance
onto a state-maintained road. Mr. Johnson asked what the costs would be for
the land. Mr. Hale said that it would cost much less than the others but
the price would have to be negotiated.

Mr. Harvey said that he is totally opposed to the Schuyler site, noting that
the site is not in the normal traffic flow for most people and no one from
Rt. 29 is going to go down there. He said that the Board has heard from the
Bunny Lane group, the Cove Valley group and the Schuyler group. He said
that the Board has not met with the service area to tell them that the
county is moving their site to Schuyler. Mr. Hale said that he has talked
to a lot of people. He agreed that the site is not perfect but that he
wants to move forward. Mr. Hale said that while it is true that the site
will not be convenient for anyone traveling on Rt. 29, it is within the
population area. Mr. Bruguiere said that he is willing to examine the
Schuyler site but that it is outside the scope of the Board’s solid waste
plan. He said that it makes more sense to put the site in the Faber area.
Ms. Brennan said that she is willing to examine the Schuyler site but wants
to continue to look for other potential sites. Mr. Hale then amended his
motion to authorize staff to contract professional services at a cost not to
exceed $10,000 to evaluate the suitability of the Schuyler site for a
collection center. Supervisors voted 4-1 (Mr. Harvey voting no). Mr.
Harvey agreed to work with the Cove Valley group to see if there is an
option for that property.

Mr. Hale said that the Board had previously authorized staff to advertise
and close the Schuyler dumpster site while the county consolidated the
collection system. He then made a motion to keep the dumpster site in place
in Schuyler while the county is pursuing their options. He suggested
putting a cable across the entrance with an area volunteer to open the site
from 7am-7pm each day. Supervisors voted 5-0 to keep the site in place with
a cable. Supervisors agreed to review the status of the site at each of
their monthly meetings, noting that the site would be closed if the mess at
the site again becomes a problem.

Supervisors voted 5-0 to authorize staff to advertise for the proposed
amendments for public hearing on Tuesday, October 14th at 7:30pm.


BIOSOLIDS – Mr. Bruguiere said that applications have been received to apply
biosolids in the county and the county, therefore, needs to hire an
inspector. He suggested hiring the same inspector working in Amherst now.
Mr. Carter reported that that inspector has been contacted and will not be
able to do the work in Nelson. He noted that staff is working on a job
description for the position and will be moving forward with contracting or
hiring someone shortly.

With no Public Comment, the meeting was adjourned.

Copyright 2000-2008 by Rural Nelson, Inc. All rights reserved. Reports may
be reprinted or excerpted with attribution.


Please enter your comment!
Please enter your name here