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HomeMy WebLinkAbout6/13/2016 - City Council - Minutes - Regular UNAPPROVED MINUTES CITY COUNCIL WORK SESSION June 13, 2016 A work session of the Council of the City of Salem, Virginia, was held in the City Manager’s Conference Room, 114 North Broad Street, Salem, Virginia, on June 13, 2016, at 6:30 p.m., there being present the following members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, William D. Jones, and James L. Chisom; with Byron Randolph Foley, presiding; together with Kevin S. Boggess, City Manager; Tammy Todd, Assistant Director of Finance, Mary Ellen Wines, Zoning Administrator, John Prillaman, Fire Chief, Matt Rickman, Deputy Fire Chief, and the following business was transacted: Mayor Foley reported that this date, place, and time had been set in order for the Council to hold a work session; and WHEREAS, Ms. Wines gave a presentation on Blight Abatement; and WHEREAS, Chief Prillaman and Deputy Chief Rickman gave an update on Fire & EMS; and WHEREAS, there was no further discussion to be had, Mayor Foley adjourned at 7:27 p.m. ____________________________________ Mayor _____________________________________ Clerk of Council City Counci l Meeting MINUTES Monday, June 13, 2016, 7:30 PM Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 1.Call 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, John C. Givens, Vice-Mayor, Councilmembers: Jane W. Johnson, William D. Jones, and James L. Chisom; along with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Melinda J. Payne, Director of Planning and Economic Development; Rosemarie B. Jordan, Director of Finance; Charles E. Van Allmann, Jr., City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney. 2.Pledge of Allegiance 3.Bid Openings, Awards, Recognitions 4.Consent Agenda A.Minutes Consider acceptance of the minutes from the May 23, 2016 Work Session and regular meetings of Salem City Council. B.Financial Report Consider the Acceptance of the Statement of Revenues and Expenditures for ten months ending April 30, 2016. 5.Old Business A.Tax Exempt Property City Code Consider the Ordinance on second reading of Chapter 82, Article I, Section 82- 8 amending the City Code to direct triennial applications. (Passed on first reading at May 23, 2016 meeting.) Vice-Mayor John Givens motioned to approve the ordinance on second reading of Chapter 82, Article I, Section 82-8, amending the City Code to direct triennial applications. (Item passed on first reading at May 23, 2016 meeting). Jane Johnson seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones B.Vacation of Right of Way Receive report of viewers and consider ordinance on first reading permanently vacating an undedicated right of way located on the South side of Rose Lane approximately 340' to North Stonewall Street, bounded on the East by the City of Salem. (Viewers appointed at May 23, 2016 meeting.) Mr. Taliaferro stated the viewers met and reviewed the vacation request and recommended approval of the vacation subject to the City retaining an easement for utilities.Vice-Mayor John Givens motioned to approve the ordinance on second reading permanently vacating an undedicated right of way located on the South side of Rose Lane approximately 340' to North Stonewall Street, bounded on the East by the City of Salem. (Viewers appointed at May 23, 2016 meeting). Jim Chisom seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones 6.New Business A.Vacation of Right of Way Hold a public hearing and consider adoption of Resolution of 1296 appointing viewers to consider permanently vacating two portions of Peery Drive with the right-of-way on the northern and southern sides at Thompson Memorial Drive, containing less than 0.1 acre, adjacent to "John's Bridge," in the City of Salem. (As advertised in the May 29, 2016 and June 5, 2016 issues of the Roanoke Times.) Mr. Taliaferro stated Roanoke College has requested to vacate portions of the Peery Drive right-of-way, adjacent to Thompson Memorial Drive, being the two eastern corners of the right-of-way on Peery Drive. Roanoke College would like to place the name of the college on John's Bridge and create a main entrance into the campus. Due to the sign ordinance not allowing off-site advertising, the college cannot put the sign on City right-of-way. The City's recommendation to Roanoke College is to vacate a portion of the right-of-way around the parapet walls of the bridge. Mayor Foley asked if there were any comments. There were none and the public hearing was closed. Jim Chisom motioned to adopt Resolution 1296 appointing viewers to consider permanently vacating two portions of Peery Drive with the right-of-way on the northern and southern sides at Thompson Memorial Drive, containing less than 0.1 acre, adjacent to "John's Bridge," in the City of Salem. (As advertised in the May 29, 2016 and June 5, 2016 issues of The Roanoke Times). William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones B.Roanoke Valley Resource Authority Joinder Public Hearing Hold a public hearing to receive public comment on the joinder of the City of Salem to the Roanoke Valley Resource Authority and on approval and execution of Amended and Restated Articles of Incorporation of the Roanoke Valley Resource Authority for accomplishing such joinder of City of Salem, Virginia, together with any related matters. (As advertised in the May 12, 2016 issue of the Roanoke Times.) Mr. Boggess gave some background information to explain what options were available in regards to Solid Waste Disposal. Mr. Boggess further stated he had difficulty finding the right answer to make a recommendation because there were so many variables, including the number of employees involved. Jay Taliaferro, Rosemarie Jordan and Mike Tyler assisted in helping with the process to evaluate the options. The term of the City's agreement with Waste Management expires July 1, 2016. The group started reviewing the solid waste options early 2013. Prior to bidding out, the group met with Solid Waste Management and the Roanoke Valley Resource Authority to research option, available to the City. Mr. Boggess went on site visits both at the Roanoke Valley Resource Authority. Jim Fender went along with Mr. Boggess and together they spent most of the day talking to the Waste Management group. There was a lot of research done in addition to evaluating bids. As part of the evaluation, the City had a consulting engineering firm, Draper Aden and Associates put together a review and analysis of the existing operation and an overview of the options the City was evaluating, including the continuation of the option as the City had been running it if the City moved into another five or 10 year agreement. The main option Draper Aden evaluated was what it would look like if the City would become a part of the Roanoke Valley Resource Authority and become a part of the regional solid waste management effort for the Roanoke Valley. This was done both from a operational and a financial perspective from the City of Salem and also a look at the regional advantages to having the City become a member of the Roanoke Valley Resource Authority. The City put out an RFP last summer seeking proposals for waste disposal to what we do currently as well as opening alternative options which is what the Roanoke Valley Resource Authority took advantage of, ultimately offering alternative options to City Council. Currently, the City manages the tipping floor, the day to day operation, compacting the trash into tractor trailers; and Waste Management through a contract with Thompson Trucking, delivers the trash to a Waste Management facility in Amelia County where the tractor trailer goes on a tipper and dumps into a landfill. The alternative would be joining the Roanoke Valley Resource Authority where trash would be handled differently and that process is still in discussion but would go to the Smith Gap Landfill in Roanoke County. Mr. Boggess then gave the pros and cons of the options being evaluated. The financial analysis did not give a black and white answer. The majority of staff recommended in favor of membership to the Roanoke Valley Resource Authority after negotiating fees and buy in cost that would leave the City with no debt and would provide fair job offers to City employees who would become Roanoke Valley Resource Authority employees. There was one employee that decided to stay with the City as he is near retirement. The long term analysis showed better long term pricing trends for the City of Salem and the Roanoke Valley Resource Authority. The public hearing was opened. Albert Crowder of 114 Valleydale Avenue, stated after hearing the comments from Mr. Boggess there are still unanswered questions. He expressed concern over the comment that "the majority of the staff agreed" and thought Council should consider that since someone on the staff felt the joinder was not the right thing to do. There were no further comments and the public hearing was closed. Mr. Jones stated he made his decision based on what is best for the citizens for Salem. He further stated he was not in favor of the joinder at first but after looking at it, this solution will be a long term fix for the City of Salem. Vice-Mayor Givens stated the City has been talking about this issue for the last year and a half and while he also was not in favor in the beginning, however after weighing the pros and cons, along with the reduction of the City's debt, he felt this was best for the City of Salem. Jane Johnson stated she agrees with Mr. Jones and Mr. Givens. She further stated Council has done due diligence and looked at what would be best for the employees and the citizens. Mr. Jones stated after looking further, he felt the staff member that was not originally in agreement had changed their mind but would not speak for that person. Mr. Chisom stated he agreed with the previous comments and from a financial perspective this is a good option for citizens. He also felt it is smart to partner regionally and will give the City an opportunity to partner with our community and the citizens will not see any difference in their disposal of waste. Mayor Foley stated once you look at the numbers it makes perfect sense to join the Roanoke Valley Resource Authority as well as if you look at the cost and the savings to the City. There were no further comments. C.Conv eyance of Property Hold a public hearing and consider conveyance of 1271 Indiana Street, approximately 7.0 acres, more of less, being a portion of Tax Map # 198-6-2.1 and Tax Map # 219-1-1 in relation to the joinder with the City of Salem and the Roanoke Valley Resource Authority. (As advertised in the June 6, 2016 issue of the Roanoke Times.) A public hearing was held. There were no comments. D.Roanoke Valley Resource Authority Joinder Agreement Consider and adopt resolution 1293 approving the reorganization and expansion of the Roanoke Valley Resource Authority by providing that the City of Salem join the authority, approving and authorizing the execution of amended and restated Articles of Incorporation. Jim Chisom motioned to adopt resolution 1293 approving the reorganization and expansion of the Roanoke Valley Resource Authority by providing that the City of Salem join the authority, approving and authorizing the execution of amended and restated Articles of Incorporation. Vice-Mayor John Givens seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones E.Roanoke Valley Resource Authority Members and Facilities Use Agreement Consider adoption of Resolution 1294 authorizing the amended and restated Roanoke Valley Resource Authority Members and Facilities Use Agreement, upon certain terms and conditions. Jim Chisom motioned to adopt Resolution 1294 authorizing the amended and restated Roanoke Valley Resource Authority Members and Facilities Use Agreement, upon certain terms and conditions. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones F.Roanoke Valley Resource Authority Extension Consider adoption of resolution 1295 authorizing and providing for an additional period of time for the Roanoke Valley Resource Authority to exist as a corporation, upon certain terms and conditions. Jim Chisom motioned to adopt resolution 1295 authorizing and providing for an additional period of time for the Roanoke Valley Resource Authority to exist as a corporation, upon certain terms and conditions. Vice-Mayor John Givens seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones G.Amendment to Solid Waste Agreement Consider request to amend the Solid Waste Disposal Agreement between the City of Salem and Botetourt County. William Jones motioned to approve the amendment to the Solid Waste Disposal Agreement between the City of Salem and Botetourt County. Vice-Mayor John Givens seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones H.Amendment to Solid Waste Agreement Consider request to amend the Solid Waste Disposal Agreement between the City of Salem and Craig County. Vice-Mayor John Givens motioned to approve the amendment to the Solid Waste Disposal Agreement between the City of Salem and Craig County. Jane Johnson seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones I.Public Improv ements Bond Hold a public hearing and consider adoption of ordinance, with emergency provisions to authorize the issuance of general obligation public improvement bonds in the City of Salem, Virginia in an aggregate principal amount not to exceed $11,500,000. (As advertised in the May 29, 2016 and June 5, 2016 issues of the Roanoke Times.) Audit - Finance Committee Doug Gebhart with Davenport & Company, a financial advisor to the City of Salem gave presentation. On May 9, 2016, after consulting with City staff, Davenport & Company distributed an RFP to obtain a commercial bank loan on 2016A and 2016B bonds. There were responses from six banks, local and national which include, Bank of Floyd, Capital One, Carter Bank, Key Bank, Pinnacle Public Financing and Union Bank. The terms include: a 20-year, fixed rate at 2.50% with no closing costs and prepayable at anytime. The taxable rate was at 2.50% for 10 years. Mr. Boggess gave the figures of what the money would be used for. Approximately $5,000,000 of the bond is an enterprise obligation for automated meter reading for water and electric meters being replaced. The remainder is for the Red Sox ball field improvements, a ladder truck and fire engine, new roof at the library, new roof and reorientation for security purposes at the courthouse, Salem Stadium turf, social services building rehabilitation, downtown improvements, Red Sox field scoreboard and three pieces of equipment, an excavator, rubber tire loader and dump truck for the Street Department. A public hearing was held and no comments were made. Vice-Mayor John Givens motioned adoption an ordinance, with emergency provisions to authorize the issuance of general obligation public improvement bonds in the City of Salem, Virginia in an aggregate principal amount not to exceed $11,500,000. (As advertised in the May 29, 2016 and June 5, 2016 issues of the Roanoke Times). William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones J.General Obligation Public Improv ement Bond Consider adoption of resolution 1297 authorizing the issuance and sale of General Obligation Public Improvement Bond, Series 2016A and Series 2016B. Audit - Finance Committee Ms. Boggess stated just prior to the meeting there was an amendment to resolution 1297 under number 2 Bond Details, Item A. Due to part of the bond being taxable and part tax exempt, the City is only allowed to use up to $10,000,000 in private placement of tax exempt bond. The Regional Jail Authority also has issuance and due to the City being a part of the authority some of that debt is assigned to the City which would exceed the $10,000,000 limit. Therefore, since the rate is the same the City would move the money between the taxable and tax exempt sides. Jim Chisom motioned to adopt the amended resolution 1297 authorizing the issuance and sale of General Obligation Public Improvement Bond, Series 2016A and Series 2016B. Jane Johnson seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones K.Appropriation of Funds Consider request to accept and appropriate $10,245,561 in FY2016 bond proceeds for capital projects. Audit - Finance Committee Vice-Mayor John Givens motioned to accept and appropriate $10,245,561 in FY2016 bond proceeds for capital projects. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones L.Admissions Tax Consider and adopt an ordinance imposing an admissions tax on certain events within the City of Salem, by amending the admissions tax definitions and rate. Audit - Finance Committee Vice-Mayor John Givens motioned to adopt an ordinance imposing an admissions tax on certain events within the City of Salem, by amending the admissions tax definitions and rate. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones M.Water Rates Consider ordinance on first reading to amend Chapter 90, Article IV Division 2, Section 90-257 of the City Code to adopt water rates for fiscal years 2017 - 2021. Audit - Finance Committee Vice-Mayor John Givens motioned to adopt ordinance on first reading to amend Chapter 90, Article IV Division 2, Section 90-257 of the City Code to adopt water rates for fiscal years 2017 - 2021. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones N.Sewer Rates Consider ordinance on first reading to amend Chapter 90, Article IV, Division IV, Section 90-303, Subdivision I, and Chapter 90 , Article IV, Division IV, Section 90- 322, Subdivison II, of the City Code to adopt changes pertaining to charges for sewage disposal for fiscal years 2017 - 2021. Audit - Finance Committee Vice-Mayor John Givens motioned to adopt an ordinance on first reading to amend Chapter 90, Article IV, Division IV, Section 90-303, Subdivision I, and Chapter 90, Article IV, Division IV, Section 90-322, Subdivison II, of the City Code to adopt changes pertaining to charges for sewage disposal for fiscal years 2017 - 2021. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones O.Appropriation of Funds Consider request to accept and appropriate VML Insurance Programs (VMLIP) grant in the amount of $2,899. Audit - Finance Committee Vice-Mayor John Givens motioned to accept and appropriate VML Insurance Programs (VMLIP) grant in the amount of $2,899. William Jones seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones 7.Closed Session A.Closed Session Hold a closed session pursuant to provision of Section 2.2-3711A(3) of the 1950 Code of Virginia, as amended, to discuss property the City may wish to sell. The certification was read by Vice-Mayor Givens for Council to move into a Closed Session.Vice-Mayor John Givens motioned hold closed session pursuant to provision of Section 2.2-3711A(3) of the 1950 Code of Virginia, as amended, to discuss property the City may wish to sell. Jane Johnson seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones 8.Adjournment The meeting adjourned at 9:15 p.m.Vice-Mayor John Givens motioned for adjournment. Jane Johnson seconded the motion. Ayes: Chisom, Foley, Givens, Johnson, Jones