Having a police department does not make a locality an incorporated city in the eyes of the state. Only incorporation can do that. Plenty of localities have police departments, including tiny communities like Crewe and Burkeville, medium towns like Farmville, and large counties like Chesterfield, but none of these localities hold city status
The way I understand the LAW, it doesn't matter if it's a VT policy or not, Commonwealth preemption law does not allow ANY locality, town, city, county, municipality, etc from overriding STATE law. That's the point of preemption. While you may face sanctions from the university (expulsion, termination of employment, etc), but if you were arrested and charged, I would be very confident that the case would be thrown out. That's one good part about the judicial system, is that once a BAD LAW is brought to light (by way of a criminal charge), the BAD LAW can be discarded. While this proactive attempt to replace the BAD LAW iwth a GOOD LAW failed, it doesn't necessarily mean that the BAD LAW would hold up in court.
The one exception is Virginia Commonwealth University, which is expressley listed in the Code