September 12, 2007 (1)

September 12, 2007

A Regular Meeting of the Rockingham County Board of Supervisors was held at 3:00 p.m. at the Rockingham County Administration Center, Harrisonburg, Virginia. The following members were present:

PABLO CUEVAS, Election District #1 CHARLES W. AHREND, Election District #2 DEE E. FLOYD, Election District #3 WILLIAM B. KYGER, JR., Election District #4 MICHAEL A. BREEDEN, Election District #5

Also present:

JOSEPH S. PAXTON, County Administrator THOMAS H. MILLER, JR., County Attorney STEPHEN G. KING, Deputy County Administrator JAMES L. ALLMENDINGER, Director of Finance WARREN G. HEIDT, Director of Public Works FRANKLIN P. O’BYRNE, Director of Information Systems ROBERT A. SYMONS, Fire & Rescue Chief WILLIAM L. VAUGHN, Community Development Director DIANA C. STULTZ, Zoning Administrator DOTTIE L. BOWEN, Deputy Clerk DONALD F. KOMARA, Residency Administrator Virginia Department of Transportation

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CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION.

Chairman Kyger called the Regular Meeting to order at 3:00 p.m.

County Attorney Miller led the Pledge of Allegiance, and Supervisor Cuevas gave the Invocation.

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September 12, 2007 (2)

APPROVAL OF MINUTES.

On motion by Supervisor Cuevas, seconded by Supervisor Floyd and carried by a vote of 5 to 0, voting recorded as follows: AHREND - AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board approved the minutes of the Regular Meeting of August 22, 2007, and the Recessed Meeting of September 4, 2007.

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RESOLUTION NO. 07-17 – TURNER ASHBY BASEBALL TEAM – VHSL GROUP AA STATE CHAMPIONS.

On motion by Supervisor Ahrend, seconded by Supervisor Breeden and carried by a vote of 5 to 0, voting recorded as follows: AHREND - AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board approved the following resolution. A framed copy of the resolution was presented to team members and their coaches.

RESOLUTION TURNER ASHBY HIGH SCHOOL KNIGHTS

WHEREAS, the Turner Ashby High School Knights Baseball Team was organized in the school year of 1956-57; and

WHEREAS, the Turner Ashby High School Knights Baseball Team has brought great honor and esteem to its school, community and this County, by winning the Valley District Regular Season and the Region II Championship; and

WHEREAS, the Turner Ashby High School Knights Baseball Team, by virtue of these victories, qualified for the Virginia State AA Championship; and

WHEREAS, on June 9, 2007, in Radford, Virginia, the Turner Ashby High School Knights Baseball Team, under the tutelage of its coach Mr. Richie Anderson, with a 26-1 record, won a hard-fought game 6 to 4 against Hidden Valley of Roanoke to become champions of the Virginia State Group AA for 2007, their sixth state championship and second consecutive championship, earning the respect and admiration of our entire community; and

WHEREAS, this team, in the 51st year of the school, is to be admired as much for its off-the-field accomplishments as the aforementioned on-field accolades, by the high standards that they set for all student athletes of our area, both in terms of academic achievement and community involvement;

NOW, THEREFORE, the Rockingham County Board of Supervisors, on behalf of the citizens of Rockingham County, hereby RECOGNIZES the Turner Ashby High School Knights Baseball Team and its coach for the exemplary skill they have displayed in their accomplishments and calls upon September 12, 2007 (3)

the citizens of this community to join the Board in congratulating this outstanding group of young citizens.

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RESOLUTION NO. 07-18 – HONORING ARCHBISHOP DESMOND TUTU.

A RESOLUTION HONORING ARCHBISHOP DESMOND TUTU

WHEREAS, Archbishop Desmond Tutu, recipient of the 1984 Nobel Peace prize and winner of the Albert Schweitzer Award for Humanitarianism, will be visiting Harrisonburg and James Madison University on September 21, 2007; and

WHEREAS, Archbishop Tutu is known for his outspoken opposition to apartheid and his message of tolerance and peace; and

WHEREAS, Archbishop Tutu’s message of interfaith dialogue, forgiveness and respect is one that continues to have resonance in today’s world; and

WHEREAS, his contributions to peace, encouragement of a non-violent approach to human relations and world affairs, and efforts to promote reconciliation will be recognized by his being awarded the Mahatma Gandhi Global Nonviolence Award from the James Madison University Mahatma Gandhi Center for Global Nonviolence on September 21, 2007, International Day of Peace;

NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors of Rockingham County Virginia, hereby welcomes Archbishop Desmond Tutu to Rockingham County and extends its congratulations to him for this prestigious award.

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TRANSPORTATION DEPARTMENT.

The Board heard Mr. Komara's report on the activities of the Transportation Department.

In response to a question from Supervisor Cuevas, Mr. Komara said VDOT would look to see if improvement could be made to the slope coming out on to Route 744. He noted September 12, 2007 (4)

that the brush had been trimmed on Route 257, and his staff would see what further action could be taken to improve that area where the “bank needs to be laid back a little more.”

Supervisor Floyd asked that, when Route 689 is repaved, Mr. Komara makes sure that the crossover at the golf course has something added to make it more noticeable.

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RESOLUTIONS NO. 07-19, 07-20, 07-21, 07-22 - APPLICATION FOR LITERARY LOANS FOR NEW EASTSIDE ELEMENTARY AND HIGH SCHOOLS.

RESOLUTION NO 07-19

WHEREAS, the School Board for the County of Rockingham, Virginia, on the 11th day of September 2007, presented to this Board an application addressed to the State Board of Education of Virginia for the purpose of borrowing from the Literary Fund $7,500,000 for the new elementary school building (or for adding to or improving the present school building) in Elkton to be paid in 20 annual installments, and the interest hereon at 3 percent paid annually.

BE IT RESOLVED that the application of the Rockingham County School Board to the State Board of Education of Virginia for a loan of $7,500,000 from the Literary Fund is hereby approved, and authority is hereby granted the said County School Board to borrow the said amount for the purpose set out in said application.

The Board of Supervisors for said County will each year during the life of this loan, at the time they fix the regular levies, fix a rate of levy for schools or make a cash appropriation sufficient for operation expenses and to pay this loan in annual installments and the interest thereon, as required by law regulating loans from the Literary Fund.

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September 12, 2007 (5)

RESOLUTION NO. 07-20

WHEREAS, the School Board for the County of Rockingham, Virginia, on the 11th day of September 2007, presented to this Board an application addressed to the State Board of Education of Virginia for the purpose of borrowing from the Literary Fund $7,500,000 for the new high school building (or for adding to or improving the present school building) in Elkton to be paid in 20 annual installments, and the interest hereon at 3 percent paid annually.

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RESOLUTION NO. 07-21

WHEREAS, the ROCKINGHAM COUNTY School Board presented to this Board on September 12, 2007 an application addressed to the Virginia Board of Education for the purpose of borrowing $7,500,000 from the Literary Fund for the purpose set out in said application for New Elementary School in Elkton to be paid in 20 annual installments, and the interest thereon at 3 percent paid annually.

RESOLVED that the application of the ROCKINGHAM COUNTY School Board to the Virginia Board of Education for a loan of $7,500,000.00 from the Literary Fund is hereby approved, and authority is hereby granted to the ROCK1NCHAM COUNTY School Board to borrow $7,500,000.00 for the purpose set out in said application.

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September 12, 2007 (6)

RESOLUTION NO. 07-22

WHEREAS, the ROCKINGHAM COUNTY School Board presented to this Board on September 12, 2007 an application addressed to the Virginia Board of Education for the purpose of borrowing $7,500,006 from the Literary Fund for the purpose set out in said application for New High School in Elkton to be paid in 20 annual installments, and the interest thereon at 3 percent paid annually.

RESOLVED that the application of the ROCKINGHAM COUNTY School Board to the Virginia Board of Education for a loan of $7,500,000.00 from the Literary Fund is hereby approved, and authority is hereby granted to the ROCKINGHAM COUNTY School Board to borrow $7,500,000.00 for the purpose set out in said application.

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RESOLUTION 07-23 - UP TO $7,500,000 GENERAL OBLIGATION SCHOOL BOND, SERIES 2007, TO BE SOLD TO VIRGINIA PUBLIC SCHOOL AUTHORITY.

On motion by Supervisor Breeden, seconded by Supervisor Cuevas and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board adopted the following Resolution.

RESOLUTION NO. 07-23

VPSA 2007 Subsidy Bond Sale Montevideo Elementary – DOE Waiting List #33

RESOLUTION AUTHORIZING THE ISSUANCE OF A NOT TO EXCEED $7,500,000 GENERAL OBLIGATION SCHOOL BOND OF THE COUNTY OF ROCKINGHAM, VIRGINIA, SERIES 2007 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 Rockingham, Virginia (the "County"), has determined that it is necessary and expedient to enter into borrowings from time to time, in one or more series, and to issue general obligation school bonds for the purpose of paying capital costs to finance the acquisition, construction, reconstruction, expansion, and equipping of public school facilities in the County in order to meet the needs of present and future enrollments; and September 12, 2007 (7)

WHEREAS, the School Board of the County (the “School Board”), by resolution duly adopted on February 13, 2007, requested and consented to the Board’s authorization of the issuance of up to aggregate $90,000,000 general obligation school bonds of the County in order to pay all or a portion of the costs of capital projects for school purposes in the County, all as required by law; and

WHEREAS, the County held a public hearing, duly noticed, on March 14, 2007, in accordance with the requirements of Section 15.2-2606, Code of Virginia 1950, as amended (the “Virginia Code”), on the issuance of up to $90,000,000 general obligation school bonds to the Virginia Public School Authority (“VPSA”), from time to time, in order to pay all or a portion of the costs of capital projects for school purposes in the County; and

WHEREAS, the Board duly adopted an Initial Resolution on March 14, 2007 (the “Initial Resolution”), authorizing up to $90,000,000 general obligation school bonds of the County to be sold to the VPSA, in one or more series, and providing, among other things, for the Board to approve authorizing resolutions, from time to time, setting forth the form and details thereof, all as may then be deemed advisable; and

WHEREAS, further, the Board duly adopted a bond authorizing resolution on March 14, 2007, authorizing an up to $11,100,000 general obligation school bond of the County to be issued to the VPSA in connection with its 2007 Spring Sale (the “March 14, 2007 Resolution”); and

WHEREAS, pursuant to the Initial Resolution and the March 14, 2007 Resolution, as described above, the County issued its $10,610,000 Rockingham County, Virginia General Obligation School Bond, Series 2007, to the VPSA on May 10, 2007, leaving the principal amount of $79,390,000 general obligation school bond capacity being authorized but not issued by the County under such Initial Resolution as of the date hereof; and

WHEREAS, in April, 2007, the Commonwealth of Virginia Board of Education (the "Board of Education") placed the application (the "Application") of the School Board of Rockingham County, Virginia (the "School Board") on the First Priority Waiting List for a loan in connection with the Montevideo Elementary School in the amount of $7,500,000 from the Literary Fund (the "Literary Fund"), a permanent trust fund established by the Constitution of Virginia, to pay the costs for capital projects for the acquisition, construction, reconstruction, expansion and/or equipping of such school facilities in the County; and

WHEREAS, the acquisition, construction, reconstruction, expansion and/or equipping of capital projects for school purposes in the County, including but not limited to, Montevideo Elementary School, are collectively referenced hereinafter as the “Project”; and

WHEREAS, the Board of Education was to have approved the release of Literary Fund moneys to the School Board and make a commitment to loan such moneys to the School Board (the "Commitment") within one (1) year of placement of the Application on the First Priority Waiting List upon receipt of the Literary Fund of an unencumbered sum available at least equal to the amount of the Application and the approval, by the Board of Education, of the Application as having met all conditions for a loan from the Literary Fund (the “Literary Fund Loan”); and

WHEREAS, the Board of Education was thereafter to have given advances on the amount of the Commitment for the Literary Fund Loan to the School Board, as the acquisition, construction, and equipping of the Project progressed, in exchange for a temporary notes from the School Board to the Literary Fund (the "Temporary Notes") for the amounts so advanced; and

WHEREAS, after the completion of the Project and the advance of the total amount of the Commitment, the Temporary Notes were to have been consolidated into a permanent September 12, 2007 (8)

loan note of the School Board to the Literary Fund (the "Literary Fund Obligation") to evidence the obligation of the School Board to repay the Literary Fund Loan; and

WHEREAS, the Literary Fund Obligation was to have borne interest at three percent (3%) per annum and mature in annual installments for a period of twenty (20) years; and

WHEREAS, in connection with the 2007 Interest Rate Subsidy Program (the "Program"), and, further, depending upon the sufficiency of funds therefore, the VPSA has offered to purchase the general obligation school bond of the County, and the Board of Education has offered to pay, to the County, a lump sum cash payment (the "Lump Sum Cash Payment") equal to the sum of (i) net present value difference, determined on the date on which the VPSA sells its bonds, between the weighted average interest rate that the general obligation school bond of the County will bear upon sale to the VPSA and the interest rate that the Literary Fund Obligation would have borne plus (ii) an allowance for the costs of issuing such bonds of the County; and

WHEREAS, the School Board has, by resolution duly adopted on August 14, 2007, further requested and consented to the issuance of the Bond (as hereinafter defined) in an aggregate principal amount not to exceed $7,500,000, whether in the Program offered in 2007 or in a subsequent Program, as the case may be; and

WHEREAS, the Board has determined that it is necessary and expedient to borrow not to exceed $7,500,000 and to issue its general obligation school bond for the purpose of providing a portion of the permanent financing for the Project, as described above.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF ROCKINGHAM, VIRGINIA:

1. Authorization of Bond and Use of Proceeds. The Board hereby determines that it is advisable to contract a debt and issue and sell its general obligation school bond in an aggregate principal amount not to exceed $7,500,000 (the "Bond") for the purpose of financing the Project. The Board hereby authorizes the issuance and sale of the Bond in the form and upon the terms established pursuant to this Resolution.

2. Sale of the Bond. 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 Bond at a price, determined by the VPSA to be fair and accepted by the Chairman of the Board and the County Administrator. The Chairman of the Board, the County Administrator, 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 September 28, 2007, with the VPSA providing for the sale of the Bond to the VPSA in substantially the form submitted to the Board at this meeting, which form is hereby approved (the "Bond Sale Agreement").

3. Details of the Bond. The Bond shall be issuable in fully registered form; shall be dated the date of issuance and delivery of the Bond; shall be designated "Rockingham County, Virginia General Obligation School Bond, Series 2007"; shall bear interest from the date of delivery thereof payable semi-annually on each January 15 and July 15 beginning July 15, 2008 (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 to be provided by the VPSA and attached thereto (the "Principal Installments"), subject to the provisions of Section 4 of this Resolution.

4. Interest Rates and Principal Installments. The Chairman or the Vice- Chairman of the Board, and the County Administrator, any one or more of whom may act, are each hereby authorized and directed to accept the interest rates on the Bond established by the VPSA, provided that each interest rate shall be ten one-hundredths of one percent September 12, 2007 (9)

(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 Bond, and provided further, that the true interest cost of the Bond does not exceed five and fifty one-hundredths percent (5.50 %) per annum. The Interest Payment Dates and the Principal Installments are subject to change at the request of the VPSA. The County Administrator 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 Bond shall not exceed the amount authorized by this Resolution. The execution and delivery of the Bond 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 Bond. The Bond 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 Bond:

(a) For as long as the VPSA is the registered owner of the Bond, all payments of principal, premium, if any, and interest on the Bond shall be made in immediately available funds to the VPSA at, or before 11:00 a.m. on the applicable Interest Payment Date or Principal Payment Date, 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 or Principal Payment Date.

(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 Bond.

7. No Redemption or Prepayment. The Principal Installments of the Bond shall not be subject to redemption or prepayment. Furthermore, the Board covenants, on behalf of the County, not to refund or refinance the Bond without first obtaining the written consent of the VPSA or the registered owner of the Bond.

8. Execution of the Bond. The Chairman or Vice Chairman and the Clerk or any Deputy Clerk of the Board are authorized and directed to execute and deliver the Bond 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 Bond as the same shall become due, the full faith and credit of the County are hereby irrevocably pledged, and in each year while the Bond 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 Bond 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 Non-Arbitrage. The Chairman of the Board, the County Administrator and such officer or officers of the County as either may designate are hereby authorized and directed to execute a Certificate as to Non-Arbitrage (or other tax certificate) and a Use of Proceeds Certificate each setting forth the expected use and investment of the proceeds of the Bond 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 Bond and on the VPSA Bonds except as September 12, 2007 (10)

provided below. The Board covenants on behalf of the County that (i) the proceeds from the issuance and sale of the Bond will be invested and expended as set forth in such Certificate as to Non-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 Bond 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 to participate in the State Non-Arbitrage Program in connection with the Bond, as may be necessary or convenient in connection with the Bond. The Chairman or Vice- Chairman of the Board, the County Administrator and such officer or officers of the County as either may designate, any one or more of whom may act, are each hereby authorized and directed to execute and deliver a Proceeds Agreement with respect to the deposit and investment of proceeds of the Bond 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 as used in prior school bond sales by the County to the VPSA, which form in connection with the Bond is hereby approved and confirmed, with such additions or other modifications as may be requested by the VPSA or otherwise required by law.

12. Continuing Disclosure Agreement. The Chairman of the Board, the County Administrator 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 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 Bond and any such action previously taken is hereby ratified and confirmed.

15. Effective Date. This Resolution shall take effect immediately.

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EXHIBIT A

NO. TS-1 $- ______

UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA ROCKINGHAM COUNTY General Obligation School Bond Series 2007

The ROCKINGHAM COUNTY, VIRGINIA (the "County"), for value received, hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL AUTHORITY the principal amount of ______MILLION ______HUNDRED ______THOUSAND ______HUNDRED DOLLARS ($______), in annual installments in the amounts set forth on Schedule I attached hereto payable on July 15, 2008 September 12, 2007 (11)

and annually on July 15 thereafter to and including July 15, 2027 (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, 2008 (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. 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, [U.S. Bank National Association], a banking association organized under the laws of the United States, with offices located in Richmond, Virginia, among others, including any successors thereto, as bond registrar (the "Bond Registrar"), shall make all payments of principal, 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 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 amended, 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 by the Board of Supervisors of the County and the School Board of the County in order 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 two or more temporary bonds or definitive bonds in fully registered form in denominations of $5,000 and whole multiples thereof, and; in any case, having an equal aggregate principal amount having 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 are not subject to redemption or prepayment. 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.

September 12, 2007 (12)

IN WITNESS WHEREOF, the Board of Supervisors of Rockingham County, Virginia has caused this Bond to be issued in the name of the Rockingham County, 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 November 8, 2007.

ROCKINGHAM COUNTY, VIRGINIA

(SEAL) By: ______Chairman, Board of Supervisors

ATTEST:

______Clerk, Board of Supervisors of Rockingham County, Virginia

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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: ______Registered Owner Signature Guaranteed: (NOTICE: The signature above must correspond with the name ___ of the Registered Owner as it (NOTICE: Signature(s) must be appears on the front of this guaranteed by an “eligible guarantor Bond in every particular, institution” meeting the requirements without alteration or change.) of the Bond Registrar which September 12, 2007 (13)

requirements will include Membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

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RESOLUTION 07-24 LINVILLE CREEK WATERSHED.

On motion by Supervisor Ahrend, seconded by Supervisor Cuevas and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board adopted the following resolution.

SUPPLEMENTAL WATERSHED AGREEMENT NO. 1 (CLOSE-OUT) between the Rockingham County Board of Supervisors Shenandoah Valley Soil and Water Conservation District (Referred to herein as Sponsors) and the Natural Resources Conservation Service (formerly the Soil Conservation Service) United States Department of Agriculture (Referred to herein as NRCS)

The purpose of this supplemental watershed agreement is to close out the project.

Whereas, the watershed plan for the Linville Creek Watershed, State of Virginia, executed by the Sponsors named therein and NRCS, became effective on the 30th day of September , 1985; and

Whereas, in order to carry out the watershed plan for said watershed, it has become necessary to modify said watershed agreement; and

Whereas, the responsibility for administration of the Flood. Control Act, as amended, has been assigned by the Secretary of Agriculture to the NRCS;

Now, therefore, the Secretary of Agriculture through the NRCS and the Sponsors hereby agree upon the following modifications of the terms, conditions, and stipulations of said watershed agreement;

(1) Land treatment measures planned for in the Linville Creek Watershed Plan, but not installed, are hereby deleted from the planned works of improvement. This action closes out the project.

The Sponsors and NRCS further agree to all other terms, conditions, and stipulations of said watershed agreement not modified herein.

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September 12, 2007 (14)

AUTHORIZATION FOR REFUND OF OVERPAYMENT OF TAXES BY GREAT EASTERN RESORT CORPORATION.

Lowell R. Barb, Real Estate Assessor, advised that, due to a clerical error in the assessed value on timeshare properties, Great Eastern Resort Corp. overpaid 2006 taxes.

On motion by Supervisor Cuevas, seconded by Supervisor Ahrend and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board authorized a refund of $35,187.21 to Great Eastern Resort Corporation for overpayment of taxes for the year 2006.

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PUBLIC HEARING – INTENT TO DISPOSE OF 421.5 SQUARE FEET OF LAND BEING PART OF RICHMOND ROAD ADJOINING LOT 118, SECTION 9, HIGHLAND PARK SUBDIVISION.

At 3:30 p.m., Chairman Kyger declared the meeting open for a public hearing regarding the County’s intent to transfer to Aaron R. and Courtney Z. Crummett the following property:

That certain tract or parcel of land consisting of 421.5 square feet, being part of Richmond Road adjoining Lot 118, Section 9, Highland Park Subdivision, Ashby District, Rockingham County, Virginia. The consideration for the property is a parcel of land containing 444.8 square feet currently part of Lot 147, Section 9, Highland Park Subdivision, Ashby District, Rockingham County, Virginia.

Stephen Weaver, representing Mr. and Mrs. Crummett, stated, “There is a slight change in the road between the two lots. We are asking that it be moved over a little. The County will pick up the same amount of road on the other side, and it will bring the house into compliance with the setback requirements.”

There were no other requests to speak.

At 3:33 p.m., Chairman Kyger declared the public hearing closed and the regular meeting back in session.

On motion by Supervisor Floyd, seconded by Supervisor Breeden and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board agreed to transfer to Aaron R. and Courtney Z. Crummett that certain tract or parcel of land consisting of 421.5 square feet, being part of Richmond Road adjoining Lot 118, Section 9, Highland Park Subdivision, Ashby District, Rockingham County, Virginia. The consideration for the property is a parcel of land containing 444.8 square feet currently part of Lot 147, Section 9, Highland Park Subdivision, Ashby District, Rockingham County, Virginia. The following is a plat of this boundary line adjustment. September 12, 2007 (15)

September 12, 2007 (16)

COUNTY ADMINISTRATOR’S STAFF REPORT.

The Board received and reviewed Administrator Paxton’s staff report dated September 7, 2007. He advised the Board that he would discuss several matters in closed session.

He referred to correspondence from the District Ranger, North River Ranger District, George Washington National Forest, regarding some timber management activities in the northern Rockingham County area. He noted that, if the Board has suggestions to be submitted, the submittal date for comments is September 30, 2007.

Supervisor Cuevas said those who would be removing logs from the forest and crossing people’s properties, need to be responsible for any damage that results to those properties.

Mr. Paxton noted that County and School staff met to discuss collaborative efforts to assist the School Board in making its decisions regarding an enrollment area for the fourth high school and to look at a means to incorporate the upcoming school census into the County's GIS system. He advised that alternatives to provide staffing for these efforts are being investigated. Mr. Vaughn will report back to the Board at a later date.

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COUNTY ATTORNEY'S STAFF REPORT.

The Board received and reviewed County Attorney Miller’s staff report dated September 6, 2007, including information on the Jail inmate Health Services Agreement, a Columbia Gas request to revise tariff and, comments, if any, on a Virginia Electric and Power Company request for certificate of public convenience and necessity to construct and operate an electric generation facility in Wise County.

On motion by Supervisor Cuevas, seconded by Supervisor Ahrend and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board agreed to renew the Jail inmate Health Services Agreement with Southern Health Partner for the contract period July 1, 2007, through June 30, 2008, with no compensation rate increase.

Board members did not comment on the Columbia Gas and Virginia Electric and Power Company requests.

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September 12, 2007 (17)

PROPOSAL RE CASH PROFFERS.

County Attorney Miller reported that staff had been working on proposed policy guidelines for the County’s receipt of cash proffers by rezoning applicants. Administrator Paxton reviewed the proposed guidelines, and Attorney Miller reviewed the state statutes.

Supervisor Cuevas suggested that the Board have a committee of two Supervisors review the information and make a recommendation to the full Board as to what would be in the interests of the County. Chairman Kyger agreed that the Board should proceed with caution and that the entire Board should be involved. Without objection, this matter was referred back to staff to further define a proposed policy to bring back to the Board for consideration in a work session.

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DEPUTY COUNTY ADMINISTRATOR’S STAFF REPORT.

The Board received and reviewed Deputy Administrator King’s staff report dated September 7, 2007.

He reported that the work on the new addition to the County Administration Center is scheduled to begin on September 17, 2007.

He reported that County staff and VDOT representatives had visited the Blue Hole swimming site in the Rawley Springs area, and he provided to the Board photographs of the property. He advised that staff did not believe it would be feasible, from a financial or environmental cost perspective, to provide additional parking on the County property; and even if a parking area could be constructed, it would not be possible to provide an entrance/exit onto Route 33 with adequate sight distance. He noted that staff had observed a limited amount of trash left behind by visitors to the site; and one of the Deputies (dressed in plain clothes) actually observed someone policing the area for trash before they left the swimming hole. He stated that the County’s litter control group would place the site on their regular schedule. He stated that the Deputies observed a number of individuals drinking alcohol at the site; and staff would need direction from the Board as to whether enforcement, or stronger enforcement, of drinking in public laws is desired at the site. If stronger enforcement was desired, he advised that additional signage would need to be installed and maintained by County staff. He reported that residents and property owners along Rawley Springs Road have complained about individuals parking along private property and parking out into the public roadway, and they have requested that VDOT install “no parking” signs in this area. He started further that some residents have also indicated that they intend to install September 12, 2007 (18)

“no parking” signs on their property in this area. He noted that staff recommended that VDOT provide and maintain signage only along Route 33, where traffic speeds are greater.

Supervisor Ahrend asked why the County wanted to keep the property.

Administrator Paxton noted that, in the past, when the Board suggested disposing of the site, a large number of citizens asked that it be retained as the “public’s property.”

Supervisor Cuevas suggested that perhaps “society had changed” and it may be time to make the proposal again.

On motion by Supervisor Cuevas, seconded by Supervisor Ahrend and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board authorized staff to advertise a public hearing on a proposal to declare the property as surplus with the intention of selling it.

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PUBLIC WORKS DIRECTOR'S STAFF REPORT.

The Board received and reviewed Public Works Director Heidt’s staff report dated September 12, 2007, including information concerning the schedule for Penn Laird Drive and Water Tower Road sewer (project is 35% complete); McGaheysville WWTP (letters to landowners scheduled for mid-September); Phase III/IV Landfill expansion (project substantially complete); Three Springs Water system (RMH advised of line sizing requirements); Pleasant Run Sewer Interceptor and Water Supply Line(progressing on schedule); Lilly Gardens(County may request construction extension); City of Harrisonburg Waste to Energy Plant; Landfill Pro- Forma Study & Landfill Gas Utilization Feasibility Study; and Highland Park and Belmont Sewage Lift Stations.

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COMMUNITY DEVELOPMENT DIRECTOR'S STAFF REPORT.

The Board received and reviewed Community Development Director Vaughn's staff report dated September 12, 2007, including information concerning priority projects underway, a Board of Zoning Appeals vacancy, tabled requests, and upcoming requests.

On motion by Supervisor Ahrend, seconded by Supervisor Cuevas and carried by a vote of 5 to 0, voting recorded as September 12, 2007 (19)

follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board removed from the table S07-36, request of Croy Building & Excavating, Inc., 716 Foley Road, Harrisonburg for a small contractor’s office on property located on the east side of Jesse Bennett Way (Route 859) approximately 500 feet south of Linville Edom Road (Route 721), Election District #2, zoned RS1. Tax Map #79-(A)-55 and a portion of tax map #56. (This request was tabled by the Board on August 27, 2007.)

(1) The use shall be located in substantial accordance with plot plan as approved by the Board of Supervisors.

(2) The building shall comply with the Virginia Uniform Statewide Building Code. A change of use building permit shall be required to convert the building to office space. All other requirements of the Building Official and all necessary permits shall be obtained to bring the building up to current code.

(3) A commercial entrance permit shall be obtained from VDOT’s Residency Office and submitted to the Zoning Administrator prior to obtaining building permits. The entrance shall be constructed and approved by VDOT prior to occupancy of the building. No certificate of occupancy shall be issued from the County until such time as the Community Development Department is notified by VDOT that the entrance is completed and has passed inspection.

(4) This permit is contingent upon applicant obtaining a sewage disposal system permit from the Health Department. A copy of said permit shall be presented to the Community Development Department prior to obtaining building permits for this use.

(5) This permit is contingent upon a site plan being submitted to and approved by the County. No permits shall be issued by the Department of Community Development and no work shall be done on the property until such time as a site plan is approved.

(6) Off-street parking shall comply with the Rockingham County Code.

(7) On-premise advertising sign shall comply with the Rockingham County Code, and a permit shall be obtained for any sign.

(8) There shall be no off-premise signs allowed unless all County and VDOT requirements for outdoor advertising signs are met.

September 12, 2007 (20)

(9) This business shall meet all requirements of the definition of small contractor’s business as follows:

a) The minimum lot size requirement for the zoning district in which the business is located shall be met for each main use on the property to allow for later divisions of land, and there shall be no other businesses located on the parcel.

b) No more than five (5) persons shall be engaged in the operation of the business, including part- time employees and proprietors.

c) No more than five (5) vehicles or pieces of equipment (other than employees’ personal vehicles) shall be operated from the site or stored there overnight.

d) The area covered by all structures used in connection with this use shall not exceed a total of thirty-five hundred (3,500) square feet and all business, excluding a parking area for vehicles, shall be conducted under roof.

e) There shall be no outside storage except for large contracting equipment, which shall be screened from view.

(10) If at any time the business exceeds the requirements of the small business contractor, the special use permit shall become null and void.

(11) The necessary paperwork adding the portions of tax parcel 56 & 57 to parcel 55 shall be submitted to the Community Development Department for approval.

(12) This business shall not begin operation until such time as a certificate of occupancy is issued by the County. No certificate of occupancy shall be issued until all other conditions of this permit are met.

(13) The violation of any of the above conditions shall result in the revocation of this special use permit.

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On motion by Supervisor Ahrend, seconded by Supervisor Breeden and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board removed from the table RZ00-21, request of Leon Burkholder to rezone .892 acre from A1 (Prime Agriculture) to B1 (General Business) on property located on the southeast side of Lumber Mill Road (Route 734) approximately 100 feet north of Honey Run Road (Route 743) in the Ashby Magisterial District, Election District #3. (This request was tabled by the Board on November 15, 2000.)

September 12, 2007 (21)

Supervisor Ahrend made the following statement.

This area of Rockingham County has a long-standing farming heritage. The sale of farm machinery is an appropriate agriculture-related business and supports this heritage, provided the size of the operation is modest and in keeping with other agriculture-related businesses in the rural areas. This request is on a .892-acre parcel which also has a machinery repair shop on it, so the entire parcel is not available for machinery sales.

I have given much thought as to whether B1, General Business, zoning is the most appropriate zoning for this use. It seems to me that the B2 district, which is the Rural Business Service district, is a more appropriate designation. To choose B2 zoning for this parcel, rather than the B1 the applicant requested, would not require the County to undergo additional public hearings because B2 zoning is more restrictive than B1.

With these considerations, I wish to put forth a motion to approve this request.

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Supervisor Breeden stated, “The three rezoning applications in the McGaheysville area are still on the table. We do not have the sewer capacity out there that would allow us to take action on these requests.”

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On motion by Supervisor Floyd, seconded by Supervisor Cuevas and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board removed from the table RZ06-11 Interchange Group, Inc., Manager for Lispen, LLC, and Shen Valley, LLC, to rezone 97.44 acres from M1-C, A1, and A2 to B1-C (General Business with Conditions) on tax parcels 123 (A) 72A, 137 (A) 82, and 137 (A) 83 and a portion of 123 (A) 74. The site is located on the south side of Cecil Wampler Road (Route 704) approximately 0.5 mile east of South Valley Pike (Route 11) in Election District #3. (This request was tabled by the Board on July 26, 2006.)

Group, Inc., Manager for Lispen, LLC, and Shen Valley, LLC, subject to the following proffers.

1. The following Permitted Uses will be prohibited on the Property: (j) Bus Station; (n) Fruit packing plant; (o)(2) Club; (o)(6) Theater production (outdoor); (o)(4) Laundromat, dry cleaners, laundry; (r)(7) Funeral home; (s) Church or other house of worship; (ad) Partial prohibition on sale of manufactured homes only; (ah) Water tilling station, natural source; and (ai) Water hauling.

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INFORMATION SYSTEMS DIRECTOR’S REPORT.

The Board received and reviewed Information Systems Director O’Byrne's staff report dated September 6, 2007, including information concerning various projects. He advised that the Treasurer’s office now offers the capability for citizens to pay their taxes on line.

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FIRE AND RESCUE CHIEF’S STAFF REPORT.

The Board received and reviewed Chief Symons’ staff report dated September 5, 2007, including information concerning personnel, activities in Training Division, Prevention Division activities, and Public Education.

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RECREATION & FACILITIES DIRECTOR’S STAFF REPORT.

The Board received and reviewed Recreation and Facilities Director Eberly’s staff report dated August 2, 2007, including information concerning facilities and recreation programs.

Chairman Kyger noted Elkton, Grottoes and Broadway had very successful little league programs.

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September 12, 2007 (23)

COMMITTEE REPORTS.

The Board heard Committee Reports by Board members and staff.

FINANCE COMMITTEE

• Increased the mileage reimbursement from $0.445 to $0.485 per mile to match the Commonwealth’s rate, effective September 12, 2007.

• As requested by the Director of Social Services, approved a supplemental appropriation in the amount of $295,035 on behalf of the Community Policy and Management Team to close FY2006-07 for the Comprehensive Services Act. These amounts are for services obligated before June 30, 2007 but for which invoices were not received until after the beginning of FY2007-08. Of this amount, $182,686 will be state funding, and the balance of $112,349 requires an increase in the local match from the City of Harrisonburg.

$295,035 GL Code: 220-05318-200-5714-000 CSA services $182,686 GL Code: 220-02401-0200 CSA State funding $112,349 GL Code: 220-01899-0600 City of H’burg-Local funding

• As requested by the Director of Recreation and Facilities, approved a carryover of unencumbered FY2006-2007 funds in the amount of $3,200. Of this amount, $1,200 is for fence repair that was finished in the current year, but for which the insurance check was received in the previous fiscal year. The remaining $2,000 is for extending the guttering underground at the School Office Building and should be completed soon.

$1,200 GL Code: 001-04302-000-3301-000 Bldg & Grounds-Repairs & Maintenance $2,000 GL Code: 001-04305-000-3301-000 School Off Bldg- Repairs & Maintenance $3,200 GL Code: 001-05201-0100 General Fund Reserve

September 12, 2007 (24)

PUBLIC WORKS

On motion by Supervisor Cuevas, seconded by Supervisor Breeden and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board accepted the staff recommendation to engage in a contract with SCS Engineers for the implementation of the first two phases of the groundwater corrective action plan at the landfill at a cost not to exceed $129,149.

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STUDENTS RECOGNIZED.

The Board recognized students from government classes at Spotswood and Turner Ashby High Schools.

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CLOSED MEETING.

On motion by Supervisor Ahrend, seconded by Supervisor Floyd and carried by the following vote: AHREND – AYE; BREEDEN – AYE; CUEVAS – AYE; FLOYD - AYE; and KYGER – AYE; the Board recessed the meeting from 4:55 p.m. to 5:30 p.m. in accordance with State Code Pursuant to Section 2.2- 3711(A)(7) Consultation with Legal Counsel and Briefing by Staff Members pertaining to Actual or Probable Litigation.

At 5:30 p.m., Chairman Kyger called the meeting back to order and the following motion was adopted.

MOTION: SUPERVISOR AHREND NO: X07-18 SECOND: SUPERVISOR FLOYD MEETING DATE: Sept. 12, 2007

CERTIFICATION OF CLOSED MEETING

WHEREAS, the Rockingham County Board of Supervisors has convened a Closed Meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of The Virginia Freedom of Information Act; and

WHEREAS, Section 2.2-3712 of the Code of Virginia requires a certification by this Board of Supervisors that such Closed Meeting was conducted in conformity with Virginia law;

NOW, THEREFORE, BE IT RESOLVED that the Rockingham County Board of Supervisors hereby certifies that, to the best of each member’s knowledge, (i) only public business September 12, 2007 (25)

matters lawfully exempted from open meeting requirements by Virginia law were discussed in the Closed Meeting to which this certification resolution applies; and (ii) only such public business matters as were identified in the motion convening the Closed Meeting were heard, discussed or considered by the Board of Supervisors.

VOTE: AYES: AHREND, BREEDEN, CUEVAS, FLOYD, KYGER NAYS: NONE ABSENT: NONE

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MEMORANDUM OF UNDERSTANDING – BRIDGEWATER.

On motion by Supervisor Cuevas, seconded by Supervisor Ahrend and carried by a vote of 5 to 0, voting recorded as follows: AHREND – AYE; BREEDEN - AYE; CUEVAS - AYE; FLOYD - AYE; KYGER - AYE; the Board approved the following Memorandum of Understanding between the County and Bridgewater to allow an easement across Town property that will allow a sewer line for Dynamic Aviation to be connected to the Harrisonburg Rockingham Sewer Authority line.

MEMORANDUM OF UNDERSTANDING

This Memorandum is made this — day of September, 2007, by the Town of Bridgewater, Virginia (the “Town”), a municipal corporation of the Commonwealth of Virginia, and the County of Rockingham, Virginia (the “County”), a political subdivision of the Commonwealth of Virginia.

The Town and the County have reached certain understandings with respect to boundary line adjustment and annexation, and this memorandum sets out those understandings:

1. This Memorandum—and the County’s obligations referred to herein—serve as partial consideration for a lease of even date in which the Town authorizes the placement of a County sanitary sewer line (the “Line”) across Town property.

2. In response to the Town’s concern for the potential residential development which may occur with property adjacent to the property served by the Line, the Town and the County agree provisions should be made for a boundary line adjustment to include certain properties as identified for future growth in Exhibit 1 in vicinity of the Line in the Town should such development be approved.

3. The County and the Town agree that

September 12, 2007 (26)

a. The Town will be authorized to annex through boundary line adjustment any of the property identified for future growth in Exhibit 1, if a residential subdivision is approved for such property or there is a rezoning of such property for residential use. The County and Town shall endeavor to see that all such properties, if rezoned, are in compliance with the then current zoning ordinance in force within the Town, and shall take into consideration the County’s and Town’s concern for orderly, sustained growth to minimize the impact on county and town services. (Property for which there has been such a subdivision or rezoning shall be referred to as “Developing Property”).

b. Any such annexation should be accomplished by the adoption of a boundary line adjustment ordinance, without further process.

c. In order to provide for an orderly process and good planning, the Town may also include in such boundary line adjustment land adjoining Developing Properties or between Developing Properties and the then- existing Town; provided that this clause shall not permit the annexation of land not identified for future growth in Exhibit I.

4. The Town and County agree to cooperate fully with one another on an ongoing basis to implement the annexations authorized by paragraph three of this memorandum.

5. The principles set out in this memorandum address only circumstances arising from the Line. The parties may reach additional agreements concerning annexation in other contexts.

EXHIBIT 1 is attached to and made a part of this minute book page.

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ADJOURNMENT.

On motion by Supervisor Breeden, seconded by Supervisor Ahrend, and carried unanimously, the meeting was adjourned at 5:35 p.m.

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______, September 12, 2007 (27)

Chairman