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<br />March 24, 2009
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<br />indicates the quantity of gas may be adequate for purposes of electric power
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<br />generation. Engineering work is continuing on all of these options. All work
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<br />currently being done in regard to these projects is strictly voluntary on behalf of
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<br />the City and not currently required or mandated by any federal, state, or local
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<br />law. The purpose of the resolution (which may ultimately serve to protect the
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<br />City's interest in revenue generation from the project) is to establish a written
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<br />record of Council's acknowledgment and support of the project on a voluntary
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<br />basis, before any regulatory action is imposed requiring such a project. Council
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<br />directed that the signed resolutions and a letter be sent to area legislators
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<br />advising them of this project.
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<br />On a motion by Gene Teague, seconded by Kimble Reynolds, with the
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<br />following 5-0 recorded vote: Mrs. Lawson, aye; Mr. Reynolds, aye; Mr. Stroud,
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<br />aye; Mr. Teague, aye; and Mr. Turner, aye, Council approved the following
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<br />resolution authorizing an RFP for possible bond re-financing and for anticipated
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<br />capital needs for FYIO:
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<br />RESOLUTION SETTING PUBLIC HEARING AND APPROVING RELATED ACTIONS RELATED TO POTENTIAL ISSUANCE OF
<br />REFUNDING AND NEW MONEY BONDS
<br />WHEREAS, the City of Martinsville, Virginia (the "City") has previously issued its General Obligation Bond (Landfill Project), Series 2005
<br />(the "2005 Landfill Bond") in order to finance City landfill improvements and its General Obligatim Ref wIding Bond, Series 2005 (the "2005
<br />Refunding Bond") in order to refinance school and redevelopment project; in the City: and WHEREAS, a plan has been presented to the City
<br />Cooocil (the "City Council") of the City to refinance the Series 2005 Landfill Bond and the 2005 Refunding Bond, projecting that such refinancing,
<br />including the costs of issuance to be incurred in connection with such refinancing, will result in significant debt service savings to the City (the "2009
<br />Refinancing"): and
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<br />WHEREAS, the City Cooocil is also considering financing capital purchases and improvements (the "2009 New Money Financing"), including
<br />municipal building improvements, land/ill ga~ collection system iJlllrovements and purchase of a bucket truck (the "2009 Project"), and it would be
<br />cost effective to comline the 2009 New Money Financing with the proposed 2009 Refinancing: and
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<br />WHEREAS, the 2009 Refinancing and the 2009 New Money Financing would be accomplished through the issuance by the City of its
<br />general obligation bond or bonds. Series 2009 in a principal amount not to exceed $5,535,000 (the "2009 Bonds").
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MARTINSVILLE, VIRGINIA:
<br />IThe City Manager, with Sands Anderson Marks & Miller, a Professional Corporatim as Bond COOOSe! and Davenport & Company LLC as financial
<br />advisor to the City, is authorized to issue a Request for Proposals in order to receive proposals horn banks regarding the proposed 2009 Refinancing
<br />(to determine actual debt service savings that would bene/it the City) and 2009 New Moncy Financing. Such bank proposals shall be considered by
<br />the City Council at its meeting on April 14,2009.
<br />2.The City Manager, Assistant Finance Director, City Attorney, bond cooosel to the City, the tinancial advisor to the City and all other officers,
<br />employees and agents of the City are hereby authorized and directed to take such further action decmed necessary or desirable to facilitate
<br />consideration of the issuance of the proposed 2009 Bonds, including but not limited to the publication and broadcasting, as required by the City
<br />Charter, of notice of a public hearing to be held prior to final authorization by the City Council of the issuance of the Bonds The public hearing shall
<br />be held on April 28, 2009 at 7:30 p.m. at the City Council Chambers, Second Floor, City of Martinsville Municipal Building, 55 West Church Street,
<br />Martinsville, Virginia 24112. All actions of the City Manager, Assistant Finance Director, City Attorney, Bond COOOSe!, the City's financial advisor
<br />and all other officers, employees and agents oftlle City in furtherance ofthe issuance of the 2009 Bonds are hereby approved and ratified.
<br />3The City Council hereby declares, in accordance with U.S Treasury Regulation Section 1,150-2, as amended from time to time, the City's intent to
<br />reimburse the City from the proceeds of the 2009 Bond for expenditures with respect to the 2009 Project The City reasonably expects that it will
<br />reimburse the expenditures with the proceeds of the 2009 Bond. The maximum principal amount of tax exempt obI igations expected to be issued for
<br />the 2009 Project is $1,200,000,
<br />4This Resolution shall take elTect inunediate!y.
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<br />On a motion by Gene Teague, seconded by Kimble Reynolds, with the
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<br />following 5-0 recorded vote: Mrs. Lawson, aye; Mr. Reynolds, aye; Mr. Stroud,
<br />aye; Mr. Teague, aye; and Mr. Turner, aye, Council approved on first reading the
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