AT A SPECIAL MEETING OF THE RAPPAHANNOCK COUNTY BOARD OF SUPERVISORS HELD ON THE 12th DAY OF FEBRUARY, TWO THOUSAND AND NINE AT SIX O'CLOCK P.M. AT THE RAPPAHANNOCK COUNTY COURTHOUSE

Present	Present	Absent
Robert P Anderson, Chairman Ronald L. Frazier, V-Chm S. Bryant Lee Roger A Welch Edward D. Wayland	Peter H. Luke, Co. Atty. John McCarthy, Co. Adm. Diane Bruce, Clerk	None

Chairman Anderson called the meeting to order at 6:00 o'clock p.m.

Audit Report for FY08: Randy Jones and Mary Ann Costello, appearing on behalf of Robinson, Farmer Cox Associates, presented a brief overview of the FY08 audit and audit recommendations, as required by law. Mr. Jones commented on the audit findings and recommendations set forth in the audit letter entitled "Communication with Those Charged with Governance," dated January 30, 2009.

He noted that the Recreation Authority is included in this audit for the first time and he emphasized, that as a management point, someone outside the Treasurer's Office should be appointed to review the revenue side of the budget on a monthly basis. Mr. Jones also encouraged the Board to contact him or his firm at any time. In response to an inquiry from the Board, he added that the budget process was being handled quite well by county staff. The FY08 Financial Report with audit memoranda is filed with the papers of this meeting.

Energy Performance Contracting by Energy Service Contractors: (ESCOs): Charles Barksdale, from the Department of Mines, Minerals and Energy, discussed the process being considered to improve energy consumption in school and county buildings. Following energy audits of buildings, ESCO contracts to upgrade those buildings to be more energy efficient can be executed. All contractors are bonded for their work. The energy savings from the repairs is guaranteed to offset the cost of the work. If the savings do not offset the costs as projected in the audits, the county/school will be reimbursed annually for the amounts not realized. Financing for the projects can be obtained through loans from the Virginia Resources Authority or through bonds.

Mr. Barksdale's office is the state agency that is responsible for overseeing all ESCO projects and he is available to guide the county through any projects they may wish to pursue.

7:00 O'clock P.M.:

Public Hearing, Amendment to County Budget:

Mr. McCarthy explained that the county is considering purchasing the Washington Arts Building, owned by Peter Kramer and located on Gay Street across from the former Methodist Church now owned by the county. The proposed contract price is $985,000. If a contract to purchase is signed, the FY09 budget must be amended. Mr. McCarthy further explained that the county has set aside funds over the past four years for office space and has $1,080,000 cash on hand for the project. No additional tax dollars will be needed other than renovation for office space costs which would be programmable over two or more fiscal years and absorbed in annual budgets and the general fund surplus. This building contains 12,500 square feet compared to the Bank Road building which would be limited to 7500 square feet. (See cost comparison between Kramer Building and Bank Road building attached hereto as Exhibit A.)

Chairman Anderson opened the public hearing and called for comments from the audience. The following persons spoke: Phil Irwin, Bill Fletcher, Jerry Martin, Peggy Ralph, Ron Makela, Jean Lillard, Roger Cordani, Chris Parrish, Tom Junk, Peter Hitchins, Aline Johnson, Mitzi Young, Charlene James, Steve Dareing, Rich Payne, Jay Miller and Nancy Freeman. Their questions and comments related to ADA and Architectural Review Board (ARB) requirements and costs, whether there has been a termite inspection or recent appraisal, study of comparables, adequate parking space, cost of sewer hookup, opposition to the purchase price that significantly exceeds the county assessment, use of other buildings already owned by the county (former Methodist Church on Gay St and farm house adjacent to the Library), other options such as Avon Hall and the former Rappahannock National Bank building and the current difficult economic times. Dr. Jerry Martin offered to sell the building he rents to the Department of Social Services for the same amount as the county assessment. Several speakers supported the purchase as the best prospect available and noted the importance of keeping offices located within the Town of Washington.

Mr. McCarthy responded that there has been no appraisal or termite inspection, but that the engineering studies used to arrive at the renovation costs have considered all handicap (ADA) requirements, ARB requirements, asbestos problems and upgrades to wiring. He called attention to the Cost Comparison document distributed at the beginning of the meeting that addresses the issues relating to building on Bank Road compared to purchasing the Kramer Building and the savings realized as a result of housing all offices in county-owned buildings instead of renting. (Same exhibit as heretofore described as Exhibit A).

At the conclusion of comments from the audience, Chairman Anderson closed the public hearing. Following discussion among the Board members, on motion of Mr. Lee, seconded by Mr. Wayland, the Board voted unanimously to continue its consideration of purchasing the Kramer Building until the April Board meeting to allow adequate time to address the concerns raised at this public hearing. The vote was recorded as follows: AYE: Anderson, Lee, Welch, Wayland, Frazier. NAY: None.

There being no further business, the meeting adjourned at 9:30 o'clock pm.

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Robert P. Anderson, Chairman