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HomeMy WebLinkAbout6/10/2019 - City Council - Minutes - RegularCi ty Counci l Meeti ng M INUTES Monday, June 10, 2019, 7:30 P M Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 1.C all to Order A regular meeting of the Council of the City of Salem, Virginia, was called to order at 7:30 p.m., there being present the following members to wit: Byron Randolph Foley, Mayor, J ane W. J ohnson, Vice-Mayor, Council members: William D. J ones, J ames A. Martin, and J ohn E. Saunders; with Byron Randolph Foley, Mayor, presiding; together with J ames E. Taliaferro, II, Interim C ity Manager and Clerk of C ouncil; Rosemarie B. J ordan, Director of Finance; Melinda J . Payne, Director of Economic Development; Mike Stevens, C ommunications Director; Charles E. VanAllman, J r., C ommunity Development Director; J udy Hough, Deputy C ity C lerk; and Stephen M. Yost, City Attorney. Mayor Foley recognized new Salem Police Officer David Huynh and noted he is joining Salem from the City of Roanoke. He thanked Officer Huynh for his service to the Salem community and the entire Roanoke Valley. He also recognized members of BSA Troop 51G who were in attendance. He noted that this group is the first all girl troop in the Roanoke Valley. 2.Pledge of Allegiance 3.C onsent Agenda A.Minutes Consider acceptance of the minutes from the May 28, 2019, work session and regular meeting. Accepted as presented 4.New Business A.P roposed Tax Rates for F iscal Year 2019-2020 Hold a public hearing on the effective real estate tax rate, proposed real estate tax rate, and proposed tangible personal property tax rate for fiscal year 2019- 2020. Amended I tem Mr. Taliaferro noted the Salem High School project has been under conceptual design for several years, and the initial costs were over $50 million for the complete addition and renovation project. City staff has worked with the school system to try to find an affordable solution and believe they have found one. T he project cost currently for primarily additions is $36 million. In order to pay for this, we are proposing that $32 million be from a borrowing, $2 million from the school system, and from revenue generated before the first payment on the bond, which would be about $2 million, we are proposing that some roof work and other work be done. At the next meeting, staff would like to bring some other ideas to Council for their consideration. He further discussed the proposed project. In order to pay for the $32 million borrowing, the budget includes a 2 cent increase per $100 in real estate taxes, fifteen cents increase per $100 in personal property taxes, and an increase of $3 in the garbage toter fee. It is proposed that these increases only be used for a high school or for city capital projects in the future. Mayor Foley opened the public hearing. J osh Kier of 909 C itadel Lane appeared before the C ouncil. He noted over the past two years of being involved and looking at three budgets in this time, he has noticed a tendency of an ad-hoc problem solving of the C ity. Part of this has been pushed on us from the economic downturn of 12 years ago, but we are 12 years removed from this, and he sees this tax increase as an opportunity to show that we are being more proactive than reactive. He is not opposed to the tax increase, but he does not think we are being as proactive as we could be. He has several questions and not sure if they can be answered tonight, but he would be interested in knowing the answers later. First, do we as a city abide by a stated written limitation on debt service? He further explained this question. What is our current reserve in the C ity and how is that a percentage of the total budget? And do we require a transfer for any city department incurring debt to the general fund to take care of that debt service? Finally, what is our outstanding long term debt? Is this number published in the annual budget? T hese are questions he would like to see answered before he could be really happy about the C ity being proactive. He further discussed some recommendations. David Foster of 342 High Street appeared before the C ouncil. He noted like the previous speaker he is not opposed to tax increases. He believes that Salem residents are used to a high level of services and a good quality of life in the city, and we should be willing to pay for this. His comments revolve around probably a niche issue in this total package, and this is the trash tote fee. It is the only city service we have currently that is not based on usage. He noted that some people may remember when the city used to charge a minimum water use of 5,000 gallons a month whether it was used or not. He stated that he used to come and complain that this is not fair to residents who are not using much water. In fact, it encouraged waste as he and his wife used to let their lawn sprinkler run because they had to pay for it anyway. T his has now been fixed, and he can now buy 2,600 gallons or whatever amount and pay for only that amount. T he water, sewage and electricity are all based on usage. T he trash tote fee is a very regressive tax. He and his wife are retired, and they generate very little waste which is partly due to the fact that they are aggressive recyclers and composters so there is not much that goes in the tote. Further, the tote is only taken to the street maybe once a month. He noted that there are probably a lot of citizens who abuse the city's free trash pickup. We can drive through a neighborhood on the day when the trash truck is coming and see enormous piles of stuff. Long term he would like to recommend that the city think about ways where the trash fee is based on use. We have to come up with a way to make it fair. He further discussed the toter fee increase. Mayor Foley asked if there was anyone else who would like to speak regarding this issue. T here was no response, and the public hearing was closed. Mr. J ones noted that three of the current C ouncil members were here when the economy hit the bottom. At that point, the city did not do any capital projects and did not lay off employees off and tried to keep the C ity functioning as we have been known for the most part. As the economy began to change, Council and staff started to look at the things we needed to do. We have known for a number of years that we needed to renovate the high school. T his increase is due to the fact we need to take care of capital needs that we have not been able to do for the past eleven years. He believes that we need to take care of things now while times are good because as we know everything circulates. He further discussed the need for the tax increases. Mr. Martin stated that the largest capital need here is in relation to the high school. T his is an important investment that the city needs to make. Also there have been years of no capital improvements, deferred maintenance, etc., and this has added up. With these things in mind, he believes we are trying to be proactive when we have the ability to take care of some of these things now. In terms of where the money is coming from, it is not just one group as we are spreading it across real estate, personal property, and the toter fee. In regards to the increase in the tote fee, the $10 mark is actually closer to the actual operational costs to the city. Mrs. J ohnson noted she wanted to add to what Mr. J ones and Mr. Martin have already said, and that she totally agrees with their viewpoints. Having been on the C ouncil the longest of the members, she was first elected when times were good. But she was not here in the 1980s when the city had so much money that they saw fit to lower the real estate taxes. She noted that being a business owner she knows that her costs have gone up over the last 20 or 30 years. She has seen all the departments do so much more with less and she believes it is nothing short of a miracle that we have not had to raise taxes before now. She stated to partially answer one of Mr. Kier's questions this C ouncil as well as the Councils before have always been very fiscally conservative and made sure that we have those reserves we need to have. T his is very important when we go to borrow money as this is one of the things the lenders look at to determine our bond rating and the amount that we are charged to borrow. It is important to the city to maintain a good level of that reserve. With regards to the toter fee going up, it is not quite at break even with regards to the operational costs. Further, she agrees with Mr. Foster and understands his frustration because she creates very little trash as she recycles, too. Mr. Saunders noted that he is the only C ouncil member who was a previous employee of the city. He noted that when he saw the capital improvements list, he noticed this has been the same list that he was submitting 5, 6, 7, or 8 years ago. He thought this was never going to happen. He is proud of the fact that we are addressing the capital projects as he ran for Council on the pretense that we are going to fix the infrastructure and facilities. T he high school just happens to be first on the list. If we do not take care of what we have, then we have absolutely nothing to sell as a community. He is very proud of the way this body has looked at this and did not want to put the entire load on one section. Being a former employee, he is excited that one of his votes was being able to approve capital money that he had seen in the capital improvement projects for years. He is hopeful with the way things are structured that we should be able to have capital money for the next few years and to be able to keep fixing issues that have been around during the last 10 years. Mayor Foley noted that being a business person we need to remember that this is driven by the free market, the private sector -- to pay the consultants, to pay for the equipment we have purchased from the private sector, etc. We are not making these numbers up what it cost to build a school or to purchase a tractor or a fire truck. It is what the market is dictating, and we need those funds to pay the private sector what they are requiring or demanding for these products and services. He just thinks this is something to think about that is a little different. B.Tax Rates Resolution Consider adoption of Resolution 1357, a resolution imposing taxes on real estate, tangible personal property, machinery and tools, and all legal subjects of taxation for City purposes including the property of railroad, express, telephone, telegraph, water, heat (gas), light and power companies. Audit - Finance Committee (Supplemental I tem) Mr. J ones noted the Audit Finance Committee met this morning to discuss this request. C hapter 8, Section 8.3 of the C ity Charter requires the C ity Council to annually lay a tax levy for the ensuing fiscal year on all property, real and personal, subject to taxation for city purposes. State law requires a public hearing be held when the assessment increase for real estate is in excess of 1 percent or a tax rate change is proposed in real estate, personal property or machinery and tools tax. T he 2019 reassessment increased the assessed value by more than 1 % and an increase in the tax rate from $1.18 to $1.20 per $100 of assessed value is proposed. A public hearing was held on J une 10, 2019. T he tax rate is proposed to increase from $3.25 to $3.40 per $100 of assessed value for personal property and remain at $3.20 per $100 of assessed value for machinery and tools. T he Committee reviewed the request and recommended levying the tax rates for the 2019-2020 fiscal year per Resolution 1357. William J ones motioned to adopt Resolution 1357, a resolution imposing taxes on real estate, tangible personal property, machinery and tools, and all legal subjects of taxation for C ity purposes including the property of railroad, express, telephone, telegraph, water, heat (gas), light and power companies. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders C .P resentation of the Annual Budget for 2019-2020 Hold a public hearing on the proposed annual budget and consider an ordinance on first reading adopting the budget for fiscal year 2019-2020. A summary of the proposed budget was advertised in the Salem Times Register on May 16, 2019. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee also discussed this item. T his time has been set aside for a public hearing on the proposed annual budget for fiscal year 2019-2020. T he proposed budget was presented to Council on March 22, 2019 and advertised in the Salem Times Register on May 16, 2019. Copies of the budget were placed in the C ity library and C ity Manager’s Office and made available to the public on the C ity website. T he Council held a work session on the budget on April 29, 2019. T he adoption of the FY 2019-2020 budget is being requested to fulfill our legal requirement of adopting, and having a first and second reading of the adoption ordinance before J uly 1. Approval of the City budget is for informative and fiscal planning purposes only and does not actually commit or appropriate funds for expenditure. T he commitment of funds will not occur until the approval of the second reading of the FY 2019-2020 appropriation ordinance. T he C ommittee reviewed the request and recommends approving the ordinance on first reading adopting the fiscal year 2019-2020 budget. Mayor Foley opened the public hearing and asked if there was anyone present who would like to speak regarding the 2019-20 budget as proposed. Macel J anoschka of 200 Bentwood Court appeared before the C ouncil. She noted that she currently serves as the Salem Council of PTAs President. T he Salem C ouncil of PTAs is comprised of the PTAs from all four elementary schools, Andrew Lewis and Salem High School. On behalf of the Council, they would like to thank City C ouncil for their continued support of Salem C ity Schools and the commitment and support they are showing them in the future through the proposed budget and the proposed tax rates which were just discussed. As we are very well aware, we have exceptional schools. We are well known in the Roanoke Valley and throughout the state for just how good Salem schools are. She noted there are articles in the Roanoke Times regularly about other school systems in southwest Virginia that have deteriorating facilities and trouble recruiting teachers, and we do not have these problems in Salem. She is very glad her children go to Salem schools, and it is largely in part to C ouncil's commitment to the schools. Council thanked Mrs. J anoschka for her comments regarding the schools and the budget. Eddie Hite of 122 Par Drive, recent retiree of the C ity, appeared before the C ouncil. He noted he had a couple questions about the budget as a citizen. One major concern he has is that we are only giving a three percent raise across the board to all employees; however, on the other side, there is a 8% increase in health insurance and 5% increase for dental insurance. With these increases and considering those employees on the lower end of the pay scale, we are not taking them forward but taking them way back. He noted that the City does take care of their employees, but he has a deep concern for the lower end employees who are out working on the streets. He hopes that Council in the future can take a look at some way to find pay raises for these employees. T he second question or concern he has is in relation to infrastructure for water lines. When he looks at the budget, he does not see and has not seen any major plan for the city's water lines. He noted he has seen tanks and pressure and things of that nature, but he has not seen anything related to infrastructure for our water system. He would like to know if this something that is being considered. Mr. J ones noted that he believed we are currently working on upgrades to the water and sewer lines. Further, he asked Mr. Taliaferro if this is part of federal money we will receive. Mr. Taliaferro noted that this is correct. Mr. J ones also noted that he could not agree with Mr. Hite more. We are trying to fix infrastructure that has not been addressed in many, many years. We are not going to fix everything at one time, but water and sewer lines have been addressed. Mr. Hite thanked C ouncil for everything they do. He noted being a retiree of the city the employees need to be taken care of because this is what makes the city work. C ouncil thanked Mr. Hite for his comments. Mayor Foley asked if there was anyone else to speak regarding this request. T here was no response, and the public hearing was closed. William J ones motioned to adopt an ordinance on first reading adopting the budget for the 2019-2010 fiscal year. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders D.Budget Appropriation Ordinance Consider ordinance on first reading appropriating funds for the fiscal year 2019- 2020 budget. Audit - Finance Committee Mr. J ones noted the Audit Finance Committee also discussed this request. He noted the fiscal year 2019-2020 budget was presented to the Council on March 22, 2019. C opies of the budget were made available to the public on the C ity website as well as in the City Library and in the C ity Manager's office. A public hearing was held on J une 10, 2019, to receive written and oral comments from the public concerning the budget, and the budget was presented for adoption on J une 10, 2019. In addition to adopting the annual budget, the local government must appropriate the funds. T his is the first reading of the ordinance to appropriate the funds for the FY2019-2020 budget. A second reading is scheduled for J une 24, 2019, following the adoption of the budget. T he C ommittee reviewed the request and recommends approval of the ordinance on first reading appropriating funds for the fiscal year 2019-2020 budget. William J ones motioned to adopt an ordinance on first reading appropriating funds for the fiscal year 20190-2020 budget. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders E.Appropriation of F unds Consider request to appropriate funding for Oakey's Field lighting relocation. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee also discussed this request. T he Virginia Department of Transportation (VD O T ) awarded the C ity of Salem funding of $70,775 to cover part of the cost of upgrading and relocating lighting at Oakey's Field. T he relocation was necessary as part of the VD O T East Main Street widening project, UPC 8753. T he funds received, along with proceeds received from the 2019 General Obligation bonds, will be used for this project. T he C ommittee reviewed the request and recommends appropriating the $70,775 for the upgrading and relocation of the Oakey Field lighting. Mayor Foley asked if someone from staff could describe what is taking place on this project. Mr. Taliaferro noted that the lighting at Oakey Field is something the city has wanted to replace for several years. We are fortunate that the East Main Street project came along, and VD O T needed to use a portion of the field for storm water which meant the lights had to be moved. So the city was given $70,000 to move the lights, and they were fine with us purchasing new lights, we just had to pay the difference. William J ones motioned to appropriate $70,775 received from VD O T (East Main Street project) for the relocation of Oakey Field lights. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders F.Appropriation of F unds Consider request to appropriate funding for the East Main Street Project UPC 8753. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee also reviewed this request. T he Virginia Department of Transportation (VD O T ) East Main Street Project (UPC 8753) will widen Route 460 (East Main Street) to three lanes with curb and sidewalk. T he project scope extends from T hompson Memorial Drive to Kessler Mill Road. T his project is currently under construction. VD O T is managing this project and will bill the C ity of Salem for its portion of charges to complete the project. Local funding is needed to cover the City's share of the East Main Street Project. Local funding of $149,000 is already included in the FY2018-2019 General Fund operating budget as a Transfer to Capital Projects. T he Committee reviewed the request and recommends appropriating $149,000 to cover the City’s share of this project. William J ones motioned to appropriate $149,000 for the local match of the East Main Street Project UPC 8753. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders G.Appropriation of F unds Consider request to appropriate funding for the Western Roanoke River Greenway. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee also reviewed this request. T he C ity of Salem is working in collaboration with the C ounty of Roanoke to engineer and complete the Western Roanoke River Greenway. T his portion of the Greenway will extend from Greenhill Park in Roanoke County to West Riverside Park in Salem. T he Western Roanoke River Greenway is in the final stages of design and engineering. T he C ity of Salem and the County of Roanoke will need to provide local funding to cover certain aspects of this project. Local funding of $50,000 in FY2018-2019, along with funds contributed by the County of Roanoke, will allow both localities to begin the design and engineering of the Western Roanoke River Greenway as well as gain easements and appraisals as necessary. T he $50,000 is already included in the FY2018-2019 General Fund operating budget as a Transfer to Capital Projects. T he Committee reviewed the request and recommends appropriating $50,000 for the C ity’s portion of the Western Roanoke River Greenway. William J ones motioned to appropriate $50,000 for the C ity's portion of the West Roanoke River Greenway. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders H.Appropriation of F unds Consider request to appropriate proceeds from the sale of equipment. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee also reviewed this request. T he City sells equipment that is no longer used on GovDeals, which is an on-line auction established specifically for governments to use to dispose of surplus equipment. A 1990 Hazmat Hesse Trailer was sold on GovDeals in May and proceeds of $17,206 were received. Since the trailer was originally purchased with Hazmat state grant funds, the proceeds from the sale of the trailer must be used to purchase Hazmat supplies and equipment. Proceeds from the sale of equipment will be used to purchase needed Hazardous Materials supplies and equipment. T he C ommittee reviewed the request and recommends appropriating $17,206 for the purchase of Hazardous Materials supplies and equipment. William J ones motioned to appropriate $17,206 received from the sale of a trailer for the purchase of Hazardous Materials supplies and equipment. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders I.Appropriation of F unds Consider request to amend the Civic C enter Fund Operating budget. Audit - Finance C ommittee Mr. J ones stated the Audit Finance Committee also reviewed this request. T he Salem Civic C enter budget is adopted before all events are scheduled for the fiscal year. In fiscal year 2019, actual show revenues and expenses are higher than budgeted due to show activity during the year. Revenue and expense budgets need to be increased by $200,000 based on this activity. T he C ivic Center operating budgets need to be adjusted based on current year activity. T he C ommittee reviewed the request and recommends appropriating $200,000 in the Civic C enter operating budget. William J ones motioned to appropriate $200,000 in the C ivic Center Fund Operating Budget. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders J .Burwell P oint P roject Consider setting bond for erosion and sediment control and landscaping for Burwell Point Project to be located at 509, 515, 517 and 523 East Burwell Street. Audit - Finance C ommittee Mr. J ones stated the Audit FInance C ommittee also reviewed this request. T he C ommittee reviewed the estimate for erosion and sediment control and landscaping for Burwell Point to be located in the 500 block of East Burwell Street. T he C ommittee concurs with the C ity Engineer’s office recommendation that bond be set in the amount of $30,421 and a time frame for completion set at twelve (12) months. Mr. VanAllman noted this property is right off Route 311. It is on Burwell and C alhoun Streets. T he developer would like to construct seven attached single- family homes with separate ownership. T here will be a common area with storm water management. Mr. Martin noted based on review in Audit Finance earlier today this project will be similar to other projects the developer has built. Mr. VanAllman noted that this will be similar to a project built on Kesler Mill Road. It was noted that Mark Henrickson, developer, was present in the audience. Mrs. J ohnson noted that with more going on in the downtown area she believes more people will want to be close to downtown. She thinks this will be a great project, and she wished the developer luck. Mr. J ones thanked Mr. Henrickson for his investment in this project. William J ones motioned to approve the bond for erosion and sediment control and landscaping for the Burwell Point project to be located in the 500 block of East Burwell Street. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders K.Webster L and Disturbance P lan Consider setting bond for erosion and sediment control for the Webster Land Disturbance Plan located in the 900 block of Eighth Street & 900 block of Missouri Avenue. Audit - Finance Committee (Supplemental I tem) Mr. J ones noted the Audit Finance Committee also reviewed this request. T he C ommittee reviewed the estimate for erosion and sediment control for the Webster Land Disturbance Plan located in the 900 block of Eighth Street and Missouri Avenue. T he C ommittee concurs with the C ity Engineer’s office recommendation that bond be set in the amount of $15,796 and a time frame for completion set at twelve (12) months. Mr. VanAllman stated this site is located about 300' west of the Boulevard on Eighth Street on the right side of the street. It is an undeveloped piece of property about a little over an acre in area. T he property owner basically wanted to remove the trees; however, in order to remove the tree root system, it is considered a land disturbance activity by the state since it over an acre. T herefore this project required a state permit for storm water management and erosion and sediment control. He further explained the purpose of the bond and noted that there are presently no development plans for this property to his knowledge. William J ones motioned to approve the bond for erosion and sediment control for the Webster Land Disturbance Plan located in the 900 block of Eighth Street and Missouri Avenue. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 5.C losed Session Mayor Foley noted there is an additional item for the agenda this evening regarding a C losed Session. Mr. Taliaferro noted that this was correct. Vice Mayor J ohnson motion to move to closed session at 8:17 p.m. in accordance with the provisions of Section 2.2-3711A(3) of the 1950 C ode of Virginia, as amended, for a discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the City. J ames Martin seconded the motion. Ayes: Saunders, Martin, J ones, J ohnson, Foley J ane J ohnson motioned to reconvene at 8:46 p.m. and that in accordance with Section 2.2-3712D of the C ode of Virginia, 1950 as amended to date, C ouncil hereby certifies that in C losed Session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the Closed Session was convened were heard, discussed, or considered by the Council. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 6.Adjournment T he meeting was adjourned at 8:46 p.m.