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HomeMy WebLinkAbout1/14/2019 - City Council - Minutes - RegularCi ty Counci l Meeti ng M INUTES Monday, January 14, 2019, 6:00 PM 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 all the members to wit: Byron Randolph Foley, Mayor, J ane W. J ohnson, Vice-Mayor, C ouncil members: William D. J ones, J ames A. Martin, and J ohn E. Saunders; along with Kevin S. Boggess, C ity Manager; J ames E. Taliaferro, II, Assistant City Manager and C lerk of C ouncil; Rosemarie B. J ordan, Director of Finance; Melinda J . Payne, Director of Economic Development (absent); Mike Stevens, C ommunications Director; Charles E. VanAllman, J r., C ommunity Development Director; and Stephen M. Yost, C ity Attorney. 2.Pledge of Allegiance 3.C losed Session A.Closed Session Hold a closed session pursuant to Section 2.2-3711A(1) of the 1950 C ode of Virginia, as amended, to discuss a personnel matter. Vice Mayor J ohnson motioned to move to closed session at 6:00 p.m. in accordance with the provisions of Section 2.2-3711A(1) of the 1950 C ode of Virginia, as amended, to discuss a personnel matter. William J ones seconded the motion. J ane J ohnson motioned to reconvene at 7:30 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 ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 4.C onsent Agenda A.Minutes Consider acceptance of the minutes from the December 10, 2018, work session and regular meeting. Accepted as presented B.F inancial Report Consider the acceptance of the Statement of Revenues and Expenditures for the five months ending November 30, 2018. Received 5.Old Business A.Amendment to City Code Consider ordinance on second reading amending Chapter 14, Article IV, Section 14- 106, pertaining to adequate space and tethering of companion animals. William J ones motioned to adopt an ordinance on second reading amending Chapter 14, Article IV, Section 14-106, pertaining to adequate space and tethering of companion animals. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 6.New Business A.Vacation of Right of Way Hold public hearing to consider adoption of Resolution 1350 appointing viewers to consider permanently vacating and disposing of an approximate 0.066 acres of an 18' unopened alley situate off Mount Vernon Avenue for Lewis S. and Susan F. Bohannon. (As advertised in the December 27, 2018, and J anuary 3, 2018, issues of the Salem Times Register.) Mr. VanAllman noted the C ity has received a request to vacate this unused section of right of way. He stated that there is a partial encroachment of the sanitary sewer line and a water line; however, these would remain in a utility easement if C ouncil chooses to vacate the right of way. He is not aware of any other issues. Mr. Martin asked if the right of way would be split and shared by both adjoining property owners. Mr. VanAllman noted that by code it would be split equally between the adjacent properties, and it would be incorporated into a single lot. So the property owners would not have to go through a resubdivision in order to incorporate that piece into their existing parcel. Mayor Foley opened the public hearing and asked if anyone would like to speak on this matter. T here was no response, and the public hearing was closed. J ane J ohnson motioned to adopt Resolution 1350 appointing viewers to consider permanently vacating and disposing of an approximate 0.066 acres of an 18' unopened alley situate off Mount Vernon Avenue for Lewis S. and Susan F. Bohannon. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders B.Av id Hotel Consider setting bond for physical improvements and erosion and sediment control for the Avid Hotel project to be located at 501 Wildwood Road. Audit - Finance Committee Mr. J ones noted the Audit Finance Committee met earlier to discuss this request. T he Committee reviewed the estimate for erosion and sediment control and physical improvements for the Avid Hotel project to be located at 501 Wildwood Road. T he C ommittee concurs with the C ity Engineer’s office recommendation that bond be set in the amount of $64,438 and a time frame for completion set at twelve (12) months. William J ones motioned to approve the bond for physical improvements and erosion and sediment control for the Avid Hotel project to be located at 501 Wildwood Road. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders C .Appropriation of F unds Consider request to appropriate Sewer Fund Net Position. Audit-Finance Committee Mr. J ones noted the Audit Finance Committee also discussed this request. Funding of $100,000 was included in the Sewer Fund FY2018 budget for Building Improvements to the Tidewater Street building. After an engineering evaluation, it was determined the building could not be improved to meet existing building code requirements without significant financial investment. In addition, asbestos was found on the site that required remediation. Given these facts, staff intended to use the funding for asbestos removal and demolition of the old building. T he project was bid in spring 2018, but no bids were received. Staff requests that these funds be re- appropriated from net position for the intended purpose so the project can be completed. Contract documents have been modified, which should result in the C ity receiving responses to the bid. T he C ommittee reviewed the request and recommends re-appropriating $100,000 from Sewer Fund net position for asbestos removal and demolition of the old Tidewater Street building. William J ones motioned to approve the request to appropriate $100,000 of the Sewer Fund balance for the demolition of three properties on Tidewater Street. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders D.Salem Band B oosters Consider request for a donation ($594.86) from the Salem Band Boosters equal to the admissions tax paid in connection with the Blue Ridge Regional High School Band Competition held on October 27, 2018. Mr. Boggess noted as the City always does with the Salem Band Boosters when they hold an event in an effort to raise funds, they ask for the admissions tax to be returned in the form of a donation. T his is another one of the requests before C ouncil this evening. William J ones motioned to approve a donation in the amount of $594.86 to the Salem Band Boosters equal to the amount of the admissions tax paid in connection with the Blue Ridge Regional High School Band C ompetition held on October 27, 2018. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders E.Salem Body Shop, L L C - P erformance Agreement Amendment Consider the request for a Performance Agreement Amendment between Salem Body Shop, LLC, the Economic Development Authority of the C ity of Salem, Virginia, and the C ity of Salem and to authorize the C ity Manager to execute the same. Mr. Boggess noted C ouncil has before them the options which were presented by the Economic Development Authority (ED A) at their meeting on J anuary 8th. T he Salem Body Shop project began as an estimated 1.7 million dollar project in the old West Salem Body Shop property. T he project initially was projected to include one restaurant and several apartments. As the project progressed and as the developers looked at the market and evaluated C ouncil's desire to see the greatest tax generation return possible on the property, they expanded their investment in the building considerably and now have two restaurant spaces which will generate meals tax and instead of 18 apartments there are now 18 hotel rooms which will generate lodging tax. But as part of this, their investment almost doubled. So they went from an estimated 1.7 million dollars investment in the building to over 3.6 million invested in the building thus far. T he developers asked some time back, and it has been reviewed by Council in work session and reviewed by the ED A in their meeting last week to consider an additional 1.1 million dollar loan to offset the additional costs for development. He further discussed the project, proposed loans for the project, and the alternatives proposed by the ED A. Mr. Martin asked if the original performance triggers of $3,500 a month in tax revenue, was this based on having one restaurant and the apartments upstairs. Mr. Boggess noted that it was not based on this. It was based on looking at the two restaurants each doing the minimum of $500,000 per year, divide this by 12 and it ends up at approximately $62,000 a month and also 50% occupancy in the hotel. He stated that about $4,000 a month is the trigger. T here was further discussion regarding the trigger amounts for the project. Mr. Martin asked Mr. Yost about some sections in the original document that were stricken and may have been re-written in some ways. He noted Section 5 Responsibilities of Parties, Section 6 C ompliance with Laws, Section 9 Severability, Section 11 Assignment, Section 19 Agreement Subject to Funding; and Section 22 Reports to ED A and the City. He asked if those items were sort of recaptured in the new language of the document. Mr. Yost noted that the significant change in the document is the additional 1.1 million dollar loan. He further discussed the changes in the Performance Agreement amendment document. If any of the sections were removed, they were replaced in the amendment. Mr. J ones asked if this was for 20 years, not 25 years, and Mr. Yost noted that it is for 20 years. Mr. J ones asked at what point would they receive their historical tax credits. Is it credits or is it actual money. Mr. Boggess noted that it is tax credits and it is different between the state and the federal over the years over which they draw. It is anywhere from three to seven years the specific credit and whether it is federal or state. T here was additional discussion regarding the Performance Agreement amendment. William J ones motioned to approve the request for a Performance Agreement Amendment, Alternative #2, between Salem Body Shop, LLC, the Economic Development Authority of the C ity of Salem, Virginia, and the C ity of Salem and to authorize the C ity Manager to execute the same. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 7.Adjournment Mayor Foley noted there is an additional supplemental item that has been added to the agenda, Item 6F, regarding city management. Mr. Martin noted as a result of the Closed Session held earlier this evening relating to a personnel matter, the outcome of that meeting was a motion would be made to request the resignation of the City Manager, Kevin Boggess. Mayor Foley noted he had some comments regarding this motion. He thought this was a poor decision which was made for selfish, foolish, and undefendable reasons exemplified by what was on the Council's agenda this evening; i.e. all the economic development that has taken place in Salem, two new hotels, two new restaurants, etc. It is beyond him that this body can make this action. Vice Mayor J ohnson noted that she is without words, but that Mayor Foley said it well, and she concurs with this sentiment. She is very disappointed that this body is taking this direction. She does not think it is in the best interest of the C ity of Salem and its citizens. J ames Martin motioned to request the resignation of the City Manager, Kevin Boggess. J ohn Saunders seconded the motion. Ayes: Saunders, Martin, J ones Nays: J ohnson, Foley Mr. Boggess asked if C ouncil would also authorize the Mayor to work with the City Attorney to negotiate the severance and authorize him to execute the severance package as discussed. J ane J ohnson motioned to authorize the Mayor to work with the C ity Attorney to negotiate the severance and to execute the severance package as discussed. Bill J ones seconded the motion. Mayor Foley thanked Mr. Boggess for his honorable and professional service. His time with the City reflects great credit upon his family, himself, and the entire Salem community. His leadership will be missed. Godspeed. Mr. Boggess thanked Mayor Foley. T he meeting was adjourned at 7:55 p.m.