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Home My WebLink About12/14/2015 - City Council - Agenda -RegularSalem City Council Work Session Agenda December 14, 2015 City Manager’s Conference Room City Hall 114 North Broad Street, Salem 6:30-7:30p.m. I. Call to Order II. Roll Call III. Discussion Items a. Real Estate Values Update, Justin Kuzmich b. Economic Development Update, Melinda Payne c. Other topics for discussion (Council) IV. Adjournment City Council Meeting Monday, December 14, 2015, 7:30 PM Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 I.Call to Order A.Minutes Consider ac c eptance of the minutes of the November 23, 2015, Salem City Council meeting. B.Financial Report Consider ac c eptance of the Statement of Revenues and Expenditures fo r four mo nths end ing October 31, 2015. II.Pledge of Allegiance III.Bid Openings, Awards, Recognitions IV.Consent Agenda V.Old Business A.Natural Gas Distribution Franchise 1. Consider o rdinanc e o n s ec ond reading providing for one or mo re no n-exc lusive franc hises to c onstruct, recons truct, op erate, maintain, rep air, and extend a natural gas distrib ution s ystem within the City of S alem. 2. Consider ordinance on second reading accepting a bid for a franchise to construct, operate, and maintain a natural gas distribution system in the City of Salem. Both passed on first reading, November 23, 2015, meeting. B.Appalachian Power Company Consider o rd inanc e o n sec ond reading to extend the franchise agreement between Appalachian Power Company, do ing business as American Electric Po wer, and the City o f Salem. Passed on first read ing November 23, 2015, meeting. VI.New Business A.Vacation of Alley Hold p ublic hearing and c onsider ad optio n o f Res olution 1277 app ointing viewers to co ns id er permanently vacating a certain unimproved 12' alley located off P yrtle Drive, 150' so uth o f the Kimb all Avenue intersectio n. (Advertis ed in November 26, and December 3, 2105, iss ues o f Salem Times-Register.) B.Appropriation of Funds Consider reques t to ac c ept and ap propriate the 2015 State Homeland Security Program Grant (SHSP). Audit-Finance Committee C.Dunkin' Donuts Consider setting bo nd for erosion and sediment control fo r the Dunkin' Donuts project. Audit-Finance Committee D.School Grants Fund Consider reques t to amend the School Grants Fund bud get as approved b y the Sc hool Board on Dec ember 8, 2015. Audit-Finance Committee Supplemental Item E.Estate Refunding Bond Consider ap proval o f the exec ution of a refund ing bo nd regard ing the es tate of Nic holas G. Econo my and autho rize the City Manager to exec ute suc h b ond. Supplemental Item VII.Closed Session A.Closed Session Hold a closed session purs uant to provisions of Section 2.2-3711A(1) o f the 1950 c ode of Virginia, as amended , to d iscus s a personnel matter. VIII.Adjournment Audit Financ e Committee, Monday, Dec ember 14, 2015, 8:00 a.m., City Manager's Conferenc e Room Work Session, Monday, Dec ember 14, 2015, 6:30 p.m., City Manager's Conferenc e Room City Council Meeting Monday, December 14, 2015, 7:30 PM Council Cham bers, City Hall, 114 North Broad Street, Salem, Virginia 24153 I.Call to Order A.Minutes Co ns ider accep tance of the minutes of the No vember 23, 2015, Salem City Co unc il meeting. B.Financial Report Co ns ider accep tance of the Statement of Revenues and Expenditures for four months ending Oc tober 31, 2015. II.Pledge of Allegiance III.Bid Openings, Awards, Recognitions IV.Consent Agenda V.Old Business A.Natural Gas Distribution Franchise 1. Consid er ordinance on second read ing providing for o ne o r more non-exc lusive franc hises to c o ns truc t, rec o ns truc t, op erate, maintain, rep air, and extend a natural gas dis trib ution s ystem within the City of Salem. 2. Consider ordinance on second reading accepting a bid for a franchise to construct, operate, and maintain a natural gas distribution system in the City of Salem. Both passed on first reading, November 23, 2015, meeting. B.Appalachian Power Company Consid er o rd inanc e o n sec o nd reading to extend the franc hise agreement between Appalachian Power Comp any, do ing busines s as Americ an Electric P o wer, and the City of Salem. Pass ed o n firs t reading Novemb er 23, 2015, meeting. VI.New Business A.Vacation of Alley Hold public hearing and consid er adoption o f Res olutio n 1277 appointing viewers to c onsider permanently vacating a certain unimproved 12' alley located off P yrtle Drive, 150' s outh o f the Kimball Avenue intersec tio n. (Ad vertised in No vember 26, and Dec emb er 3, 2105, iss ues of Salem Times -Register.) B.Appropriation of Funds Consid er reques t to acc ept and ap pro priate the 2015 State Homeland Security Program Grant (SHSP ). Audit Financ e Committee C.Dunkin' Donuts Consid er s etting bond for eros io n and sediment c o ntrol fo r the Dunkin' Donuts p rojec t. VII.Closed Session A.Closed Session Hold a c los ed ses sio n pursuant to p rovis ions of Section 2.2-3711A(1) of the 1950 code of Virginia, as amended , to dis cus s a p ers o nnel matter. VIII.Adjournment Audit Finance Committee, Monday, December 14, 2015, 8:00 a.m., City Manager's Conference Room Work Session, Monday, December 14, 2015, 6:30 p.m., City Manager's Conference Room Schedule A city Of Salem, Virginia General Fund Statement Of Revenues And Expenditures For Four Months Ending October 31,2015 Current Year Current Year o/o of Prior Year Budget Year to Date Budget Year to Date Variance Revenues: Beginning Balance 7-1-15 General Property Taxes Other Local Taxes Permits And Licenses Fines And Forfeitures Revenue From Use Of Money And Property Charges For Services Payment ln Lieu Of Taxes from Electric Fund Payment ln Lieu Of Taxes from Water Fund Miscellaneous Revenue Non-Categorical Aid Shared Expenses CategoricalAid Total Revenues Expenditures: General Government Judicial Administration Public Safety Public Works Health And Welfare Education Parks, Recreation And Cultural Community Development Non-Departmental Contingency Reserve For Fund Balance Replenishment Reserve For Capital Total Exp€nditures Revenues Over/(Under) Expenditures _q_.€4tE!ZI 25,736,591 1,417 399 _9__l!19!lB4 _9___\1_3171J5)_ $ 3,158,994 33,226,300 20,560,500 240,160 110,000 433,028 5,535,514 3,160,000 130,000 94,691 3,926,272 't,265,862 5,561,399 77,402,720 6,355,628 2,048,564 16,123,984 15,279,901 2,27 4,631 22,119,957 4,665,915 1,161,524 6,410,879 626,487 310,000 25,250 77,402,720 $ 11734,OA2 3 710,022 1 12,666 27 ,055 197,850 1,968,5s3 1,580,000 44,679 56,158 286,425 287 ,654 1,443,206 21,452,352 0% 35% 18./" 470/o 25./" 460k 360/o 50% 37% 590/" 7% 23% 26% 28% 34o/o 34'/o 340/0 360k 220/0 400 32o/o 18% 33% o% 0% O'/o 35'/o $- 12,114,267 3,342,O70 170,251 41,380 258,396 1,805,648 1,580,000 40,865 44,148 257,634 294,620 1,302,851 2't,252j29 2.149,123 618,279 5,778,819 3,916,979 629,778 8,869,748 1,450,276 232,4s2 2,091,137 $ (380,185) 367,953 (57,585) (14,325\ (60,546) 162,906 7,814 12,O11 2A,791 (6,966) 140,355 200,223 2,179,O87 704.725 5,555,991 5,561,588 504,704 8,805,708 1,509,873 205,158 2,127,157 86,446 \222,828) 1,644,609 (125,07 5) (64,040) 59,597 (27 ,295J 36,020 27 153 989 Schedule B City of Salem Sales Tax Summary For FiscalYears 2014 - 2015 J uneMar Apr MaYFebDec Jan FY 2015 FY 2015 July Aug SePt Oct 750,000.00 700,000.00 650,000.00 600,000.00 550,000.00 500,000.00 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 t I r il r I Schedule C City of Salem Meals Tax Summary For FiscalYears 2014 -2OLG 600,000.00 ss0,000.00 s00,000.00 450,000.00 400,000.00 350,000.00 300,000.00 2s0,000.00 200,000.00 150,000.00 100,000.00 50,000.00 Nov FY 2014 Feb MarDec Jan FY 2015 FY 2016 f fl III f lt July Schedule D City of Salem Lodging Tax Summary For FiscalYears 2014 -20t6 JuneMaYAprDec Jan Feb Mar Fv 20t4 FY 2015 FY 2016 NovSept 22s,000.00 200,000.00 175,000.00 150,000.00 125,000.00 100,000.00 75,000.00 s0,000.00 25,000.00 AugJ uly Current Year Budget $ 805,000 340,000 3,000,000 100.000 4,245,000 Current Year Year to Dat€ $ 231,304 111,364 1 ,214.131 19.254 1,576.052 olo of Budget 29va 330/a 400k '190/o 370k Prior Year Year to Date $ 233,s88 112,970 1,093,046 29,593 1,469,'197 SCHEDULE E Variance $ (2,284) (1,606) '121 ,085 (10,339) 106,856 City Of Salem, Virginia Solid Waste Disposal Statement Ot Operations For Four Months Ending October 31, 2015 Operating Revenues: Revenuea For Waste Dispogal: Toter Fees Container Fees Waste Collection & Disposal Charges Recycling Proceeds Total Revenues For Waste Disposal Operating Expenditures: Refuse Collection: Salaries Fringe Benefits Contractual Services Printing and Binding Travel and Training Miscellaneous lriscellaneous Credits ilaterials and Supplies CapitalOutlay Total Refuse Collection Containerg: Salaries Fringe Benefits Contractual Services Miscellaneous Miscellaneous Credits Materials And Supplies Total Containers Transfer Station: Salaries Fringe Benefits Contractual Services Utilities Communications Travel and Training [riscellaneous Waste Disposal Materials and Supplies Machinery and Equlpment Total Transfsr Station Total Operating Expenditures Net Cost For Solid Waste Disposal 631,300 304,758 199,225 1,500 625,) ono (45,000) 56,204 1,151,521 45.827 20,304 s0,000 2,300 202.7 55 95,809 69,583 253 s70 (10,191 ) 6,343 320k 31% 35vo 174/o 0% 33v" 23vo 110/o 212.646 94,906 73,858 751 (6,656) 45 756 (9,891) 902 14,275) 21; (3,53s) (39,413) 365,521 15,265 6,676 8,860 585 (593) 431,300 14,953 6,573 14,524 (551) 158,968 63,586 41,487 8,575 223 755 8,809 1,203,285 1,587 (65,779) '103 (5,664) \42) 364,263 203,496 96,800 35,000 1,000 2,000 45,560 3,400,173 '10,050 150,100 56,616 7 5,032 9,603 247 1.292 8,502 1 ,251,485 3,400 (8,868) (6,970) 33,545 1 029 24 537 (307) 48,200 1 ,814 16,500 85,502 16.500 16 500 1000/0 4,174,842 1,572.777 380k 1 ,487 ,275 5.465.274 1 ,982,530 360/a '1,954 s92 27,938 10 038 (10,038) 32lo 33yo 33% 180/o 250/0 0% 41% 280k 784/o 270/o 250/a 650k 190k 370/a 340/a 20 480 13,440 66% 13.440 138 91 1 44 233 32"/" 36,017 8.215 406.478 (78 917) City of Salem, Virginia Debt Outstanding For Period Ending October 31 , 2015 Balance 7 t1t2015 lssuances Schedule F Balance 10t3112015 City Debt Outstanding 2003A Public lmprovement Bonds 2004 Refunding Bonds (of 1995 & 1996 PIB) 2006 Public lmprovement Bonds 20108 VMLA/ACO Series G Build America Bonds 2010C VMLA/ACO Series H Taxable Bonds 2010D VMLA/ACO Bonds I Tax Exempt Bonds 2011 Union First Market Refunding Bonds 2013 Public lmprovement Bonds 2015 Key Bank Refunding Bonds Total city Debt outstanding School Debt Outstanding 20034 Public lmprovement Bonds 2004 Refunding Bonds (of 1995 & 1996 PIB) 2010D VMLA/ACO Bonds lTax Exempt Bonds 2011 Union First Market Refunding Bonds 2012A Public lmprovement Bonds 2013 Public lmprovement Bonds Total School Debt Outstanding Total Debt Outstanding 400,000 zJ, bb6 86,278 2,700,000 s0,000 3,1 98,379 3,330,576 1,692,950 1,932,097 13,41 3,848 Principal Payments (400,000) (41,814) (89,425) za, soa 86,278 2,700,000 50,000 3,1 98,379 3,288,762 1,603,525 1,932,097 700,000 271 ,027 s60,388 5,829,424 8,590,500 5,217 ,050 21 ,168,389 271 ,027 560,388 5,756,238 8,1 13,250 (55T750- 12.88-f6-og (700,000) (73,186) (477 ,250) (27 5,575) 4,941,47s (1 ,s26,01 1) 19,642,378 ---eortz1q -a5z4sfr- Budget Project To Date 223.879 302,400 150,000 123,800 115,000 38,045 12,500 13,000 65,875 7.319 20,658 1 ,151 4,246 80.330 15,127 5,406 77.062 't7,868 1.892 2.379 Year To Date Schedule G 162.428 (720) 254.994 _______193i99r City of Salem, Virginia Capital Projects Fund Statemenl of Revenues and Expendalures For Period Ending October 31, 2015 Tolal Encumbrances Proiect Available Balance Fund Balance, July 1,2015 Revenues: ERP-Transfer From GF ERP-Transfer From EF ERP-Transfer From Schools ERP-2013 Bonds Cama System-Transfer From GF GTG-2013 Bonds Sharepoin!2013 Bonds Document Mgmt Solution-20'1 3 Bonds Bicycle & Ped Safety lmpr Prog-Federal Bicycle & Ped Safety lmpr Prog-Stale Greenway Phase 2B-Enhancemenl Greenway Phase 2B-2013 Bonds lnteresl Greenway Phase 2B-Xfer GF Greenway Phase 4'RSTP Greenway Phase 4-Enhancemenl Greenway Phase 4-2013 Bonds Greenway Phase 4-Xfer GF Greenway Phase 5-RSTP Greenway Phase 5-Enhancement Greenway Phase 5-2013 Bonds Greenway Phase s-Xfer GF Greenway Donations Mason Creek Greenway Phase 2-Federal Mason Creek Greenway Phase 2-Local TotalRevenues Exoenditures: ERP - New World ERP. PCI Cama System GTG Sharepoint Documenl l\4gmt Solution Bicycle & Pedesirian Safety lmpr Prog Rke River Greenway Phase 2B Rke River Greenway Phase 4-Apperson Rke River Greenway Phase s-Eddy Greenway Donations Mason Creek Greenway Phase 2 Field Turf Replacement Salem Stadium Tolal Expenditures Fund Balance, October 31, 2015 223.879 302,400 150.000 123,800 115,000 38,045 12,500 '13,000 299,789 33,310 450,903 1,109 4,246 800,000 80,330 15,127 5.407 262,600 251,503 17,869 1,892 2,380 400,972 108,994 3,7'15,055 500,079 300,000 '115.000 38,045 12.500 13,000 333,099 456,258 900,864 533,864 2,380 509,966 80,330 15,127 5,406 1 - 262,600 77,062 174,441 17,868 I 1,8922,379 1 233,914 25,991 430,245 \42) 800,000 400,972 108,994 2,437,118 9,130 21,967 13,554 38,M5 12,500 13,000 257,aU 330,458 676.212 409.O44 2,380 509,966 (251,294\ 2,M2,U6 223,479 302,400 150,000 123,800 1't5,000 38,045 12,500 13,000 65,875 7,319 20,658 1,151 4,246 (762) 42 1,277.937 470,949 266,893 82,334 ,u,r'r, 26,775 100,862 96,902 251.294 trt^ - 1,277,937 20.000 490,949 11,140 278,03319.112 101 446 - 75.215 99,025 125,800 123,790 224,65227,91A 124,A20 251,294 1.672,209 1,600 ,,oro 80 ,u., ino 3,715,055 300,985 City of Salem, Virginia Electric Fund Statement of Operations For Four Montls Ending October 31, 2015 Prior Year Year to Date Schedule H Variance o/o of Budget 25vo 31yo 36% 4o/o uo/o 350/o 34yo 't60/0 9% 29v. 0% Operating Revenues Sale of Power Other Electric Revenue Total Operating Revenues Operating Expenses Olher Power Generation - Operation Other Power Generation - Maintenance Purchased Power Transmission - Operation Transmission - Maintenance Distribution - Operations Distribution - lvlaintenance Customer Service Administration & General - Operation Administration & General - Maintenance Capital Contingency Total Operating Expenses lncome (loss) Before Transfers Transfers lncome (loss) Current Year Budget s 39,725,000 895,284 40,620,284 135,000 55,688 24,950,641 3,510,500 24,000 875,907 1,0u,246 494.323 2,535,512 149,500 3,175,389 519,578 37,460,284 3,160,000 (3,160,000) $ 13,839,697 92,871 13,932,568 17 ,',t67 13,970 7,826,0U '1,253,000 '1,007 301,143 358,422 167,895 411,208 13,903 934,965 Current Year Year to Date 11,298,742 2,633,826 (1,580,000) _9___r..9!9i?9_ 24,606 4,855 8,535,536 1 ,199,426 979 265,197 300,819 118,229 43'1,739 28,103 655,398 (7,439) 9,115 (709,4721 53,574 27 35,945 57 ,602 49,666 (20,531) (14,200) 279,567 35% 10% 34% $ 13,796,509 I 43,188 64,835 28,036 13,861,344 71.224 500/" 11,564,887 (266,145) 2,296,457 337.369 (1,580,000) _$_____z19r9l _$___99ri99_ City of Salem, Virginia Water Fund Statement of Operations For Four Months Ending October 31, 2015 Current Year Year to Date o/o ol Budget 34vo 26vo 3svo 28vo 320/0 110/o 1ovo 34vo 590/0 47o/o 3',tvo 7gvo 22vo 20k 0o/o Prior Year Year to Date Schedule I Variance $ 60,092 36,405 6,804 (1,03s) 40,861 899 50 3,300 (201) 350 2,217 3,',t92 5,285 (12,846\ Operating Revenues Services Other Revenue Total Operating Revenues Operating Expenses Production Salaries of Personnel Fringe Benefits Contractual Services Printing and Binding Advertising Utilities Communications lnsurance Travel and Training Miscellaneous Materials and Supplies Capital Contingency Total Production Expenses Distibution Salaries of Personnel Fringe Benefits Contractual Services Communications lnsurance Lease/Rent of Equipment Travel and Training Miscellaneous Miscellaneous Credits Materials and Supplies Capital lnterest Obligations Total Distribution Expenses lncome (loss) Before Transfers Transfers lncome (loss) Current Year Budget $ 6,606,000 399,125 7,005,125 695,998 45s,964 631,969 8,200 500 367,000 5,000 15,100 8,000 42,423 163,500 373,064 532,256 3,298,974 521,398 275,496 743,260 4,550 '10,000 2,000 3,600 10,488 (312,000) 277 ,293 240,000 1,800,066 3,576,151 130,000 (130,000) $ 2,229,524 101,869 2,331,392 243,365 129,172 200,779 899 50 124,677 2,972 7,156 2,508 33,485 35,416 7,383 330/o 2.234,895 96,498 $ 2,169,432 65,463 236,561 130,21 1 159,918 121.377 3,173 6,806 291 30,293 30,131 20,228_ 7 87 ,861 240/,t 738,989 48,872 177 ,545 76,014 163,930 126_ 1.354 3,007 (81 ,671) 46,844 15,924 3,112 406,185 1 ,137 ,346 (48,679) $ 1,088,667 185,803 81,843 216,612 ur: 1.343 1,825 (73,781) 75,994 12,981 4,',t49 (8,2se) (5,829) (52,681) (412) 11 1 ,.t82 (7,8e0) (29,',t49) 2,944 (1,037) 340/0 280/0 22o/o 3o/o 00/o ovo 38Yo 290k 26vo 17o/o 7o/o lvo 11vo 370/o 507,306 (101,120) 988,600 148.746 (40,865) (7.814) _l___j{rl1 _l___11!j2 City of Salem, Virginia Sewer Fund Statement of Operations For Four Months Ending October 31, 2015 Prior Year Year to Date Schedule J Variance Current Year Year to Date $ 2,319,889 42,124 2,362,013 o/o of Budget 280k 210k 280/0 8vo 160/0 1% 27yo ovo 't2Yo 51% 33% 39o/o 90k 3% 00/o Operating Revenues Services Other Revenue Total Operating Revenues Operating Expenses Salaries of Personnel Fringe Benefits Contractual Services Advertising Utilities Communications lnsurance Lease/Rent of Equipment Travel and Training Miscellaneous Miscellaneous Credits Materials and Supplies Capital lnterest Obligations Contingency Total Operating Expenses lncome (loss) Current Year Budget $ 7,061,000 793,0',t7 7,854,0',t7 493,216 343,145 3,374,086 3,000 4,000 9,050 19,000 3,000 6,600 27 ,O45 (325,000) 78,000 1 ,525,272 1,780,071 513,532 7,854,0',t7 330/0 5% $ 2,369,970 21 ,',t72 1 13,856 61 ,967 853,748 702 538 4,247 774 4,207 (82,465) 7 ,249 40,916 30,037 $ (s0,080) 20,952 30%2 ,391 ,1 42 (29 ,129) 139,500 72,627 949,776 249 643 126 5,066 759 13,7 41 (108,596) 30,218 138,315 57 ,641 25,643 10,660 96,028 249 (60) (412) 819 (15) 9,534 (26,131) 22,969 97,399 27 ,604 1,300,063 $ 1,06'1,950 170k 1,035,776 264,287 _$_L9!!!99_ _$__e$4q City of Salem, virginia Salem Civic Center Statement of Operations For Four Months Ending October 31, 2015 Current Year Year to Date Prior Year Year to Date Schedule K Variance o/o of Budget 340/0 33o/o 24o/o 320/0 58% 60/o 20/a 107o/o 0o/o ova Current Year Budget $ 385,000 1,060,000 156,000 119,000 62,500 20,100 307,000 142,500 10,000 132,580 353,954 38,216 38,537 36,285 1,155 6,363 152,839 g 122,648 225,725 43,427 40,001 47,542 1,092 35,083 166,718 108,395 $ 9,932 128,230 (5,211) (1,464) (11 ,257) 63 (28,72',t) (13,879) (108,395) Operating Revenues Shows/rentals Box offlce shows Catering and concessions Merchandise and commissions Static advertising Miscellaneous income NCM events Salem Fair Blue Ridge Music Festival Reserve for encumbrances Total Operating Revenues Operating Expenses Salaries of personnel Fringe benefits Maintenance and contractual services Printing and binding Advertising Utilities Communications lnsurance Travel and training Miscellaneous Show expense NCM expense Blue Ridge Music Festival lvlaterials and supplies Capital Reduction Total Operating Expenses lncome (loss) Before Transfers Transfers lncome (loss) 2,262J00 759,930 34%790,630 (30,700) 957,639 421,636 164,680 3,500 51,000 252,285 24,OOO 20,000 15,500 56,114 1,060,000 307,000 52,416 372,',t14 127,172 44,995 29 14,430 94,931 7,768 10.530 16,398 117,602 't6,764 12.322 368,978 125,947 70,749 945 21,836 97,578 7,963 11.46',1 13,905 14,'160 21,588 16,278 13,187 3,136 1,225 (25,754\ (e16) (7,406) (2.6481 (1e5) (e31) 2,494 't03,441 (4,824\ (16,278\ (865) 30va 27'/o 't% 28o/o 38va 32o/o 00/o 68% 29% 11% 5o/o 00/o 24% ovo Oo/o 3,385,770 835,054 (1123,670) (75.124) 1j23,670 561 ,835 $ - $ 486.711 784,575 50,479 6,055 (81,179) 50%561.835 $ 567,890 $ (81,179) Currenl Year Budget $ 651,082 143.500 47,000 16,000 857 ,582 191 ,950 107,495 12,500 1,000 13,000 850 135,583 Current Year Year lo Date Yo ol Budget Prior Year Year to Date Schedule L Variance $ (84) 11 ,452 9,901 (528) 20,741 City of Salem, virginia Salem Catering and Concessions Statement of Operations For Four Months Ending October 31, 2015 Operating Revenues: Catering Concessions Moyer Concessions Salem High Concessions Total Operating Revenues Operating Expenses: Caterinq Salaries of personnel Fringe benefits Conlraclual services Printing and binding Laundry and Cleaning Communications lnsurance Travel and training Miscellaneous Materials and supplies Capital Reduction Total Catering Expenses Concesslons Salaries of Personnel Fringe Benefits Miscellaneous lvlaterials and Supplies Total Concessions Expenses Mover Concessions Salaries of Personnel Fringe Benefits Contractual services Miscellaneous Materials and Supplies Total Moyer Expenses Salem Hioh Concessions Salaries of Personnel Fringe Benefits Miscellaneous Materials and Supplies Total Salem Hlgh Expenses lncome (loss) $ 225,325 19,331 32.231 6,016 286,903 a7 ,209 24,221 3,503 4.141 . 41,385 73,197 450/0 230/a Zao/o 00/o 320k 26% 00/o oo/o 310k 480/0 00k 00h 38vo 184/a 154/o 110/a 120/a $ 229,409 7,879 22,330 6,544 266,162 77 ,O97 23,318 3,8',t2 80 4,406 200 75 5'l ,'109 49,9'10 350/0 130/a 69% 38Vo 1 0,'1 13 903 (30e) (80) (266) 25 (75) (9,724\ 23,287 616,576 55,639 16,787 51,3s0 35,500 159,276 28,972 8,902 2,500 6,750 14,500 61,624 12,714 4,242 300 2,850 20,106 233,882 I,797 2,512 5,885 4,288 22,482 18,527 4,818 833 4,933 7,430 36,541 7 ,O71 1 ,860 't.297 'tr* _9__!949t 210,008 5,353 't,476 2,637 2,328 't 1 ,795 20,975 6,234 OJJ 3,421 7,265 4,36.1 ,t,235 1,472 7,094 23,873 14o/o 4,444 1,036 3,247 1,960 10,687 (2,448) (1,416) , .,; 164 64yo o/o 33% 73% 51% 59%38,728 (2,187) 56% 444/o 1a/a 464/a 2,709 625 (261 (175) 51% _$____t1l93r _9.__({9gL City of Salem, Virginia Health lnsurance Fund Statement of Revenues and Expenses For Four Months Ending October 31, 2015 Budget Current Year Year to Date Schedule M Variance Percent Prior Year to Date Year to Date Beginning Fund Balance Revenue Premiums Paid - City Premiums Paid - School Premiums Paid - Retirees lnterest Earnings Miscellaneous Total Year to Date Revenues Expenses Claims Employee Health Clinic Consulting Services Miscellaneous Total Year to Date Expenses Ending Fund Balance 10,596 184/o 57,300 3,404 6!o 12,020,280 3,370,805 28yo _9__9!9;98 6,015,780 5,284,000 715,000 5.500 $ 724,351 1 ,8't5,561 1,463,627 295,142 2,372 40 $ 1,159,384 30% 1,876,9'18 280/0 1,491,659 41o/o 281,323 430/0 2,328 00/o $ (435,033) (61,357) (28,032) 13,619 44 (75,486) (334,E51) 14,949 180 1 ,054 (318,668) 12,020,280 1 'l ,496,406 407,274 59,300 3,576,742 30Vo 3,1E1,443 28o/o 175,362 43Vo 3,652,228 3,516,294 160,413 10,416 2,350 3,689,473 j_!ry3s_ _9.__[9L!!1I ITEM: Natural Gas Dis trib utio n Franchis e SUBJECT: 1. Cons ider o rd inance o n s econd reading provid ing for o ne o r more no n-exc lus ive franc hises to cons truc t, rec o ns truc t, operate, maintain, rep air, and extend a natural gas dis trib utio n s ystem within the City o f S alem. 2. Consider ordinance on second reading accepting a bid for a franchise to construct, operate, and maintain a natural gas distribution system in the City of Salem. Both passed on first reading, November 23, 2015, meeting. ATTACHMENT S: Des crip tion Type Distribution Ordinance Ordinance Franchise Ordinance Ordinance REVIEWER S: Dep artment Clerk of the Council Item #: V. A. 1. Date: 12-14-2015 1 AN ORDINANCE PROVIDING FOR ONE OR MORE NON-EXCLUSIVE FRANCHISES TO CONSTRUCT, RECONSTRUCT, OPERATE, MAINTAIN, REPAIR, AND EXTEND A GAS DISTRIBUTION SYSTEM WITHIN THE CITY OF SALEM, VIRGINIA; ESTABLISHING AN EFFECTIVE DATE; BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM AS FOLLOWS: 1. The non-exclusive franchises to construct, reconstruct, operate, maintain, repair, and extend a Gas Distribution System within the City of Salem, Virginia shall provide as follows: SECTION 1. DEFINITIONS. For the purposes of this Ordinance, unless the context otherwise requires or it is otherwise herein expressly provided, the following terms shall have the following meanings: a. “City” shall mean the City of Salem, Virginia. b. “City Manager” shall mean the person appointed City Manager by Salem City Council pursuant to the Salem City Charter or the City Manager’s designee. In the absence of the City Manager, the term shall include the Assistant City Manager. c. “Franchise” shall mean the formal agreement, which authorizes the specific Grantee to construct, reconstruct, operate, maintain, repair, and extend a Gas Distribution System in the area defined by, and pursuant to the terms and conditions of, this Ordinance. d. “Franchise Fee” shall mean the fee paid by the Grantee to the City in consideration of the use of its Streets and administration of this Ordinance and the Franchise. e. “Gas Distribution System” or “System” shall mean the complete system in a physical sense including gas distribution lines, pipes, manholes and all other actual appliances and appurtenances necessary and incidental to the usual operation and maintenance of a gas works, or any portion of the System, in the Streets within the Territorial Limits of the City. f. “Grantee” shall mean the Person granted a Franchise pursuant to the Franchise Agreement and this Ordinance and Grantee’s agents, servants, employees, contractors, subcontractors and any other person or entity authorized by the Grantee to act on its behalf. g. “Ordinance” shall mean this Franchise Ordinance. h. “Person” shall mean any person, firm, partnership, association, corporation, company, organization, or other entity. i. “Street” shall mean the surface of and the space above and below any public street, road, highway, avenue, sidewalk, way, bridge, viaduct, alley, or other public right-of-way, including non-paved surfaces, now or hereafter held by the City for the purpose of public travel, communications, alarm, street lighting, power distribution, or similar public use. j. “Territorial Limits” shall mean the corporate limits of the City as such corporate limits now exist or may hereafter be extended or otherwise altered. k. “Work” shall mean Grantee’s use of the Streets of the City; the acquisition, construction, reconstruction, erection, installation, operation, maintenance, repair, or extension of Grantee’s Gas Distribution System; and the exercise of any right or privilege granted by or under this Ordinance or any Franchise. 2 SECTION 2. GRANT OF AUTHORITY. The Franchise granted by the City and accepted by Grantee pursuant to the Franchise Agreement and this Ordinance shall provide to Grantee the right, privilege, and authority to construct, reconstruct, operate, maintain, repair, and extend a Gas Distribution System in the Territorial Limits of the City for the term specified in the Franchise. SECTION 3. STREET AND RIGHT-OF-WAY USE NOT EXCLUSIVE. For the purpose of constructing, operating, maintaining, and extending a Gas Distribution System in the Territorial Limits of the City, Grantee may erect, install, construct, repair, replace, relocate, reconstruct, remove, and retain in the Streets within the Territorial Limits of the City such pipes, lines, manholes, and any and all other additional appliances and appurtenances necessary and incidental to the usual operation of a Gas Distribution System, provided that all applicable permits are applied for and granted, all fees paid, and all other applicable local ordinances, codes, and regulations are otherwise complied with. Subject to State law, the right to use and occupy the Streets for the purposes set forth herein is not exclusive. The City reserves the right to grant one or more additional Franchises or other authorizations for similar use to any other Person at any time. SECTION 4. PUBLIC WORKS. The rights and privileges granted by this Ordinance shall not be in preference or hindrance to the rights at the City and any other lawful governmental authorities having jurisdiction to perform or carry out any public works or public improvements. Should the Gas Distribution System interfere with the construction, maintenance, or repair of such public works or improvements, Grantee, at its expense, shall protect or relocate the Gas Distribution System, or any applicable part thereof, as directed by the City or other governmental authorities having jurisdiction. SECTION 5. USE OF STREETS. (a) General control. Grantee, in any opening it shall make in the Streets of the City, shall be subject to the provisions of this Ordinance and to all applicable ordinances, codes and regulations of the City. The Gas Distribution System of the Grantee shall be located so as not to interfere with the public safety or with the convenience of persons using the Streets. (b) Right of designation. The City reserves the right by resolution of the City Council or otherwise through proper representatives of the City to specifically designate the location of the Gas Distribution System of Grantee with reference to municipal facilities, such as sewer and water mains, drainage facilities, fiber optic cable, signal poles and lines and similar services, other facilities, such as public telephone utilities, public electric utilities, public cable television utilities, and railway communication and power lines, in such a manner as to protect the public safety and public and private property and to facilitate the creation of a convenient, attractive, and harmonious community. Failure by the City to so designate does not relieve Grantee of its responsibilities in matters of public safety as provided in this Ordinance. Grantee shall construct, maintain, and locate its Gas Distribution System so as not to interfere with the construction, location, and maintenance of sewer, water, drainage, electrical, signal, and fiber optic facilities of the City. Any designation of location required or authorized by this Ordinance shall be accomplished by the City so as not to unnecessarily delay the Grantee in any of its operations. (c) Notice to City. Except in the cases of emergencies under Subsection (d) of this Section, Grantee shall not move, alter, change, or extend any of its Gas Distribution System in any Street unless prior written notice of its intention so to do is given to the City Manager and permission in writing so to do is granted by the City Manager or such requirement is waived by the City Manager. Such permission 3 shall be conditioned upon compliance with the terms and conditions of this Ordinance, with such other terms and conditions as will preserve, protect, and promote the safety of the public using the Streets, and as will prevent undue interference with or obstruction of the use of the Streets by the public, the City or by any other public utility or public service corporation for their respective purposes and functions, and shall not be unreasonably withheld. (d) Written permits. The City Council may require that written permits, in any and all cases, be obtained by Grantee whenever it becomes necessary for Grantee to excavate in the Streets in order to install, construct, maintain or extend the Gas Distribution System. Such permits, if required, may be made applicable to any and all types of excavations in the Streets, as prescribed by City Council, and City Council may, by resolution, establish a fee for each excavation made in a Street by the Grantee. Such permits may state the particular part or point of the Streets where construction or excavation is to be conducted, the length of time in which such permit shall authorize such Work to be done and the hours of each day during which such Work shall be undertaken. A single permit may be issued for multiple excavations to be made in Streets; provided, however, any Street opening fee established by City Council shall apply to each excavation made in Streets of the City. Exceptions to the requirement for a written permit shall be allowed in cases of emergencies involving public safety or restoration of service. In the case of emergency excavations made in the Streets without permit, Grantee shall make a report of each such excavation to the City within two (2) working days and pay such fee as may be established by City Council for excavations in Streets by public utilities. Any permit applications and inspections related to repair of excavations shall be promptly acted upon by the City s o as not to unnecessarily delay the Grantee in efficiently discharging its public service obligation. Any fees for permits or inspections charged by the City shall be based on the City’s actual costs of administering the program of issuing permits and conducting inspections. (e) Restoration of Streets. Immediately after installation, repair, or extension of the Gas Distribution System or any portion thereof or any pavement cut by Grantee in any Street of the City, the incidental trenches or excavations shall be refilled by Grantee in a manner consistent with the policies, procedures, and regulations promulgated by the City Engineer. Grantee shall maintain, repair and keep in good condition for a period of two (2) years following such disturbance all porti ons of public ways disturbed by Grantee, provided such maintenance and repair shall be necessary because of defective workmanship or materials supplied by Grantee. (f) Removal of obstructions and defects. Grantee shall promptly remove or correct any obstruction or defect in any Street which may have been caused by Grantee in the installation, operation, maintenance, or extension of Grantee’s Gas Distribution System. Any such obstruction or defect which is not promptly removed, repaired, or corrected by Grantee after proper notice so to do, given by the City to Grantee, may be removed or corrected by the City, and the cost thereof shall be charged against Grantee and may be enforced as a lien upon any of Grantee’s properties or assets. Any expense of damage, relocation, or replacement to City water, sanitary sewer, storm sewer, storm drainage, or communication facilities resulting from construction or maintenance of Grantee’s Gas Distribution System shall be borne by Grantee and any expense incurred in connection therewith by the City shall be reimbursed by the Grantee. (g) Minimum inconvenience; protection of public. Grantee shall not open, disturb, or obstruct, at any one time, any more of the Streets, than reasonably may be necessary to enable it to proceed with advantage in laying or repairing its Gas Distribution System. Neither shall Grantee permit any Street so opened, disturbed, or obstructed by it in the installation, construction, repair, or extension of its Gas Distribution System to remain open or the public way disturbed or obstructed for a longer period of time than reasonably shall be necessary. In all cases where any Street shall be excavated, disturbed, or obstructed by Grantee, Grantee shall take all precautions necessary or proper for the protection of the 4 public and shall maintain adequate warning signs, barricades, signals, and other devices necessary or proper to adequately give notice, protection, and warning to the public of the existence of all actual conditions present. (h) Relocation of City facilities. Whenever the City shall widen, reconstruct, realign, pave, or repave any Street, or shall change the grade or line of any Street, or shall construct or reconstruct any water, sanitary sewer, storm sewer, drainage, or communications facility of the City, it shall be the duty of Grantee to move, alter, or relocate its Gas Distribution System or any part thereof as requested by the City at Grantee’s cost and expense. Upon written notice by the City Manager of the City’s intention to perform work as specified above, Grantee shall within a reasonable period of time accomplish its obligation in accordance with and to conform to the plans of the City for such construction, reconstruction, or improvements. Should the Grantee fail, refuse or neglect to comply with such notice, the Gas Distribution System or any part thereof may be removed, altered, or relocated by the City, the cost of which shall be paid by Grantee, and the City shall not be liable to Grantee for any damages resulting from such removal, alteration, or relocation. In cases where Grantee believes the costs of relocation by Grantee would be cost prohibitive and an alternative location of the City’s facilities would be feasible, the City and Grantee shall jointly evaluate whether Grantee could reasonably pay any additional costs to the City of the alternative City facility location in lieu of relocating Grantee’s facilities. Grantee shall not be required by the City to relocate its Gas Distribution System when any Street in which such System is located is vacated, closed, or abandoned by the City for the convenience of abutting property owners and not as an incident to a public improvement. The City shall give Grantee notice in writing of such proposed abandonments or Street closings to allow Grantee to protect its access interests. SECTION 6. SERVICE STANDARDS. The rights and privileges granted and conferred upon the Grantee are granted upon the express condition and understanding that Grantee will render to the public and the City of Salem at all times during the term of this Franchise adequate and efficient gas service at reasonable rates and that it will maintain its properties, works, structures, facilities, and the Gas Distribution System located within the City in good order throughout the term of this Franchise. By accepting this Franchise, Grantee expressly agrees that the State Corporation Commission of Virginia shall have jurisdiction, to the full extent and in the same manner now or hereafter during the life of this Franchise provided by law, to require Grantee to render efficient service as aforesaid at reasonable rates and to maintain its properties in good order throughout the term of this Franchise and otherwise enforce, together with the City, in the Circuit Court for the City of Salem, the provisions of this Franchise to the full extent provided by law. SECTION 7. SAFETY STANDARDS. Grantee shall at all times employ a high standard of care and shall install and maintain in use approved methods and devices for preventing failure or accidents which are likely to cause damages, injuries, or nuisances to the public. SECTION 8. RESTORATION OF IMPAIRED SERVICE. In the event of any interruption or impairment of service by reason of force, nature, act of God, strike, breakdown, accident, or other happening beyond the control of Grantee, Grantee shall use every reasonable effort and shall exercise prompt diligence to restore such service with as little interruption as reasonably possible and, in all events, within a reasonable time, but any such interruption or failure 5 of service caused by any of the aforesaid reasons shall not, of itself, constitute a breach of this Franchise. SECTION 9. COMPLIANCE WITH ALL LAWS. Grantee agrees to and will comply with all applicable federal, state, and local laws, ordinances, and regulations, including, but not limited to all applicable licensing requirements and environmental regulations. Grantee further agrees that Grantee does not and shall not during the performance of this Agreement; knowingly employ an unauthorized alien as defined in the Federal Immigration Reform & Control Act of 1986. SECTION 10. POLICE POWER. All rights and privileges granted hereby are subject to lawful exercise of the police power of the City to adopt and enforce local laws, rules, and regulations necessary to the health, safety, and general welfare of the public. Expressly reserved to the City is the right to adopt, in addition to the provisions of this Ordinance, the Franchise and existing laws, such additional ordinances and regulations as are necessary for the lawful exercise of its police power, for the benefit and safety of the public. SECTION 11. TAXES. Nothing contained in this Ordinance or in the Franchise shall be construed to exempt Grantee from any tax, levy, or assessment of the City, which is now or may hereafter be authorized by law. SECTION 12. GRANTEE TO OWN SYSTEM. Grantee shall, at all times during the term of this Franchise, have full possessory rights to all facilities and property, real and personal, of the Gas Distribution System, whether by ownership, lease, license, or otherwise. Grantee may discard or replace any property, real or personal, as long as Grantee can satisfy its obligations hereunder. SECTION 13. APPROVAL OF TRANSFER. No sale, assignment or lease by the Grantee of the privileges granted under this Ordinance shall be effective until Grantee's successor shall have agreed in writing with the City to accept the terms and conditions of this Ordinance and Franchise and to perform in accordance with its terms and conditions. SECTION 14. LIABILITY. Grantee agrees and binds itself to indemnify, keep, and hold the City, its officers, agents and employees free and harmless from liability on account of injury or damage to persons or property growing out of or directly or indirectly resulting from: (a) Grantee’s use of the Streets of the City; (b) the acquisition, construction, reconstruction, erection, installation, operation, maintenance, repair or extension of Grantee’s Gas Distribution System; (c) the exercise of any right or privilege granted by or under this Ordinance or any Franchise; or (d) the failure, refusal or neglect of Grantee to perform any duty imposed upon or assumed by Grantee by or under this Ordinance or any Franchise. In the event that any suit or proceeding shall be brought against the City at law or in equity, either independently or jointly with Grantee on account thereof, Grantee, upon notice given to it by the City, will defend the City in any such action or other proceeding, at the cost of the Grantee. In the event at a final judgment being awarded against the City, either independently or jointly with Grantee, then Grantee will pay such judgment or will comply with such decree, pay all costs and expenses of whatsoever nature and hold the City, its officers, agents, employees and volunteers harmless therefrom. 6 SECTION 15. INSURANCE AND BOND REQUIREMENTS. (a) Requirement of insurance. Grantee shall, at its expense, obtain and maintain during the life of this Franchise, the insurance and bonds required by this Agreement. Any required insurance and bonds shall be effective prior to the effective date of the Franchise. All such insurance shall be primary and noncontributory to any insurance or self-insurance the City may have. (b) Commercial General Liability. Grantee shall maintain during the life of its Franchise, Commercial General Liability insurance coverage on an occurrence basis insuring against all claims, loss, cost, damage, expense, or liability from loss of life or damage or injury to persons or property arising out of any of the work or activity under or by virtue of this Franchise. The minimum limits of liability for this coverage shall be $10,000,000 combined single limit for any one occurrence. (c) Contractual Liability. Grantee shall maintain during the life of its Franchise broad form Contractual Liability insurance including the indemnification obligation set forth in this Agreement. (d) Workers’ Compensation. Grantee shall maintain during the life of its Franchise Workers’ Compensation insurance covering Grantee’s statutory obligation under the laws of the Commonwealth of Virginia and Employer’s Liability insurance for all its employees engaged in work under its Franchise. Minimum limits of liability for Employer’s Liability shall be $100,000 bodily injury each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to the Workers’ Compensation coverage, the Grantee’s insurance company shall waive rights of subrogation against the City, its officers, agents, employees, and volunteers. (e) Automobile Liability. Grantee shall maintain during the life of its Franchise Automobile Liability insurance. The minimum limit of liability for such insurance shall be $1,000,000 combined single limit applicable to owned or non-owned vehicles used in the performance of any work under its Franchise. (f) Umbrella Coverage. The insurance coverages and amounts set forth in subsections (b), (c), (d), and (e) of this Section may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $10,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by subsections (b), (c), (d), and (e), and it is further agreed that such statement shall be made a part of the certificate of insurance furnished by Grantee to the City. (g) Evidence of Insurance. All insurance, shall be written on an occurrence basis. In addition, the following requirements shall be met: (1) The Grantee shall furnish the City a certificate or certificates of insurance showing the type, amount, effective dates, and date of expiration of the policies. Certificates of insurance shall include any insurance deductibles, the amount of such deductible being subject to approval by the City. (2) The required certificate or certificates of insurance shall include substantially the following statement: “The insurance covered by this certificate shall not be canceled or materially altered, except after thirty (30) days written notice has been provided to the City of Salem.” (3) The required certificate or certificates of insurance shall name the City of Salem, its officers, agents and employees as additional insureds with regard to general liability, auto, and 7 pollution coverages and the certificate of insurance shall show if the policies provide such coverage. Where waiver of subrogation is required with respect to any policy of insurance required under this Section, such waiver shall be specified on the certificate of insurance. Additional insured and waiver endorsements shall be received by Salem Risk Management from the insurer within 30 days of the beginning of this contract. The City’s Risk Manager may approve other documentation of such insurance coverages. (4) Insurance coverage shall be in a form and with an insurance company approved by the City which approval shall not be unreasonably withheld. Any insurance company providing coverage under this Agreement or any Franchise granted under this Agreement shall be authorized to do business in the Commonwealth of Virginia. (5) The Grantee shall notify the City in writing within five (5) calendar days if any of the insurance coverages or policies are cancelled, changed, or modified and Grantee shall immediately replace such policies and provide documentation of such to the City. (i) Ranges and Limits. At the end of ten (10) years, the City shall have the right to require increases in the amounts of insurance specified above. Any adjustments shall bear a reasonable relation to any change in the cost of living or cost of repair or replacement, as measured by changes in the Consumer Price Index of the United States Bureau of Labor Statistics applicable to the Commonwealth of Virginia or comparable measure if the Consumer Price Index is no longer being issued. (j) Bond. Grantee shall post and maintain for the term of this Franchise a performance bond in favor of the City in the amount of $25,000. The bond shall be conditioned upon Grantee’s full and punctual performance of Grantee’s obligations and undertakings under this Agreement . The bond shall be issued by a bonding company approved by the City and deposited with the City Clerk of Council. SECTION 16. REPORTS, MAPS, AND PLATS. (a) Grantee shall file annually with the City Manager a copy of Grantee’s annual report, which report shall contain and reflect the audit and financial statement as pertains to the business operations of Grantee for the immediately preceding business year. Grantee’s books and systems of account showing the gross income derived by Grantee from its supply and sale of gas in the City, the City of Roanoke, and the Town of Vinton shall be made available at all reasonable times for audit or inspection and verification by a duly authorized officer or agent of the City. (b) Grantee shall, upon written and reasonable request at any time from the City Manager, make available or furnish to the City Manager maps, plats, or plans, or copies thereof, showing the location of any or all of its Gas Distribution System located in any Street of the City. SECTION 17. LIEN OF CITY. All debts, penalties, or forfeitures accruing to the City under the terms of this Ordinance shall constitute a lien upon the property and Franchise of Grantee within the City, subject, however, to then- existing prior liens. SECTION 18. JURISDICTION OF GOVERNMENTAL REGULATORY COMMISSIONS. If any provision of this Ordinance shall be in conflict with any constitutional provision, or any federal, State, or local law, or any lawful rule of the State Corporation Commission of Virginia, or of any other duly constituted body or commission legally authorized to prescribe rules governing the conduct of Grantee within the City, so that Grantee cannot reasonably comply with both the provisions of this Ordinance and such provision, law, or rule of such commission or body, then Grantee shall comply with such specific provision, law, or rule instead of with the conflicting provision of this Ordinance, 8 but Grantee shall comply with each and all of the provisions of this Ordinance where such can be done without violating constitutional provisions, valid laws or rules of the said commission or body. Whenever Grantee has knowledge of such a conflict, Grantee shall immediately notify the City Manager in writing. SECTION 19. NON-DISCRIMINATION. Grantee shall not discriminate on the basis of race, religion, color, sex, or national origin in its employment practices, contracting or provision of services. SECTION 20. NOTICE. All notices required under this Ordinance shall be given as provided in the Franchise Agreement. 2. This Ordinance shall be in full force and effect on January 1, 2016. Upon a call for an aye and a nay vote, the same stood as follows: Byron Randolph Foley - John C. Givens - Jane W. Johnson - William D. Jones - Lisa D. Garst - ATTEST: ____________________________ James E. Taliaferro, II Clerk of Council City of Salem, Virginia Item #: V. A. 2. Date: 12-14-2015 AN ORDINANCE ACCEPTING A BID FOR A FRANCHISE TO CONSTRUCT, OPERATE, AND MAINTAIN A NATURAL GAS DISTRIBUTION SYSTEM IN THE CITY, UPON CERTAIN TERMS AND CONDITIONS, FOR A TWENTY (20) YEAR TERM; AUTHORIZING THE EXECUTION OF A GAS FRANCHISE AGREEMENT BY THE CITY MANAGER; AUTHORIZING THE CITY MANAGER TO TAKE SUCH FURTHER ACTIONS AND EXECUTE SUCH OTHER DOCUMENTS AS MAY BE NECESSARY TO IMPLEMENT, ADMINISTER, AND ENFORCE THE GAS FRANCHISE AGREEMENT; ESTABLISHING AN EFFECTIVE DATE; WHEREAS, by public notice published in The Roanoke Times pursuant to Sections 15.2- 2100 and 15.2-2101, Code of Virginia (1950), as amended, City Council has invited bids for a franchise to construct, operate, maintain, and extend a natural gas distribution system upon certain property of the City for a term of twenty (20) years; WHEREAS, the written bid of Roanoke Gas Company, was delivered to City Council in open session of the Council at 7:30 p.m. on November 23, 2015; WHEREAS, such bid was referred to the City Manager for evaluation and negotiation with Roanoke Gas Company as to the final terms and conditions of a Gas Franchise Agreement, consistent with the terms of the Franchise Ordinance being adopted simultaneously with this ordinance; WHEREAS, Roanoke Gas Company has agreed to accept the terms and conditions of the Gas Franchise Ordinance being adopted simultaneously with this ordinance and to enter into a Gas Franchise Agreement, a copy of such Gas Franchise Agreement is attached to the City Council Agenda Report dated November 23, 2015, and the City Manager recommends that City Council accept the bid of Roanoke Gas Company, such recommendation being fully set forth in the City Council Agenda Report dated November 23, 2015; WHEREAS, after proper and timely notice by advertisement as required by the Code of Virginia, City Council held a public hearing on this matter at its regular meeting on November 23, 2015, at which public hearing all parties in interest and other persons were given an opportunity to be heard, both for and against the proposed Gas Franchise Agreement; and WHEREAS, after closing the public hearing, City Council believes that granting a franchise in accordance with the terms of the Franchise Ordinance to Roanoke Gas Company will benefit the City and its citizens. THEREFORE, BE IT ORDAINED by the Council of the City of Salem as follows: 1. The bid of Roanoke Gas Company for a franchise to construct, operate, maintain and extend a natural gas distribution system upon certain public property of the City, such bid being on file in the City Manager’s Office and attached to the City Council Agenda Report, is hereby ACCEPTED. 2 2. The City Manager and the Clerk of Council are hereby authorized, for and on behalf of the City, to execute and attest, respectively, a Gas Franchise Agreement, effective January 1, 2016, a copy of which is on file in the City Manager’s Office and is also attached to the City Council Agenda Report dated November 23, 2015, and such Gas Franchise Agreement shall be in such form as is approved by the City Attorney. 3. The City Manager is further authorized to take such further actions and to execute such other documents as may be necessary to implement, administer, and enforce the Gas Franchise Agreement. 4. This ordinance shall be in full force and effect ten (10) days after its final passage. Upon a call for an aye and a nay vote, the same stood as follows: Byron Randolph Foley - John C. Givens - Jane W. Johnson - William D. Jones - Lisa D. Garst - ATTEST: ____________________________ James E. Taliaferro, II Clerk of Council City of Salem, Virginia ITEM: Appalac hian Power C o mp any SUBJECT: Cons id er ordinanc e o n s econd reading to extend the franc hise agreement between Appalac hian Po wer Company, d oing b us ines s as American Electric P o wer, and the City of Salem. P as s ed on first reading Novemb er 23, 2015, meeting. ATTACHMENT S: Des crip tion Type Franchise Extension Ordinance Cover Memo REVIEWER S: Dep artment Clerk of the Council Item # V. B. Date: 12-14-2015 AN ORDINANCE AUTHORIZING THE EXTENSION OF THE FRANCHISE TO APPALACHIAN POWER COMPANY, DOING BUSINESS AS AMERICAN ELECTRIC POWER, FOR AN ELECTRIC LIGHT, HEAT, AND POWER TRANSMISSION AND DISTRIBUTION SYSTEM IN THE CITY OF SALEM, VIRGINIA. WHEREAS, by Franchise Ordinance dated April 10, 1995, the City Council of the City of Salem, Virginia, granted a franchise over the streets and thoroughfares of the City of Salem, Virginia, to Appalachian Power Company, doing business as American Electric Power, to erect and maintain lines for the transmission and distribution of electric energy, with all necessary appurtenances, for the purpose of supplying electric energy; and WHEREAS, by ordinance dated April 12, 2010, said Franchise was granted for an additional term of five (5) years until February 14, 2015; and WHEREAS, said Franchise Ordinance provides for extension of the Franchise for an additional term of five (5) years upon the mutual agreement of the City of Salem, Virginia, and Appalachian Power Company; and WHEREAS, the City of Salem, Virginia, and Appalachian Power Company have agreed that it is in their best interest to extend the Franchise Ordinance for an additional five-year term. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, THAT: 1. The Franchise Ordinance of April 10, 1995, be extended for an additional five- year term to terminate on February 14, 2020. 2. All other terms and conditions of the Franchise Ordinance of April 10, 1995, shall remain in full force and effect. 3. This ordinance shall be in full force and effect ten (10) days after its final passage. Item # V. B. Date: 12-14-2015 Upon a call for an aye and a nay vote, the same stood as follows: Lisa D. Garst – William D. Jones – Jane W. Johnson – John C. Givens – Byron Randolph Foley – Passed: Effective: /s/ Mayor ATTEST: James E. Taliaferro, II Clerk of Council City of Salem, Virginia ITEM: Vac ation of Alley SUBJECT: Hold p ublic hearing and cons id er adoptio n of Res olution 1277 ap p o inting viewers to c o nsider p ermanently vac ating a c ertain unimp ro ved 12' alley loc ated off Pyrtle Drive, 150' s o uth of the Kimb all Avenue inters ectio n. (Ad vertis ed in No vember 26, and December 3, 2105, issues o f S alem Times -Regis ter.) ATTACHMENT S: Des crip tion Type Resolution 1277 file Cover Memo REVIEWER S: Dep artment Clerk of the Council rEM #\l!- A -omrlW4S IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, December 14,2015: RESOLUTION 1277 A RESOLUTION providing for the appointment of not less than three nor more than five freeholders, any three of whom may act, as viewers in connection with the application of Ronald Lee & Betty Clingenpeel and 17th Century Builders, LLC to permanently vacate a certain unimproved 12' alley, located off Pyrtle Drive, with the entrance located 150' South from the intersection of Kimball Avenue and Pyrtle Drive extending a total of 480' per City of Salem GIS map at a bearing 5.74"-23'E to previously vacated point, NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, thAt Howard Packett, Joseph E. Yates, Jr., and William R. Shepherd be and they hereby are appointed as viewers to view vacate a certain unimproved 12' alley, located off Pyrtle Drive, with the entrance located 150' South from the intersection of Kimball Avenue and Pyrtle Drive extending a total of 480' per City of Salem GIS map at a bearing 5.74"-23'E to previously vacated point, as provided by Section 15.2-2006 of the Code of Virginia, as amended to date, and to report in writing, whether or not in their opinion any, and if any, what inconvenience would result from permanently vacating said alley. Upon a call for an aye and a nay vote, the same stood as follows: Lisa D. Garst - William D. Jones - Jane W. Johnson - John C. Givens - Byron Randolph Foley - ATTEST: James E. Taliaferro, II Clerk of Council City of Salem, Virginia 3{3- rl,ll ru'Sltu"' NOTICE OF PUBUC HEARING TO WHOM IT MAY CONCERN: TAKE NOTICE the undersigned will apply to the Council of City of Salem at a public hearing on December 14, 2015, at 7:30 p.m., or as soon thereafter as may be heard, in the Council Chambers of the City of Salem, at 114 North Broad Street, Salem, Virginia, based on an application to permanently vacate an unimproved alley more particularly described as follows: A certain unimproved 12' alley, located off Pyrth Drive, with the entrance located 15ry South from the intersection of Kimball Avenue and Pyrtle Drive extending a total of 48O per Cit| of Salem GIS map at a bearing S.74923'E to previously vacated point. All parties in interest and citizens may appear on the above date and be heard on the question. Ronald Lee & Betty Clingenpeel and 17s Century Builde6 LLC, Steve Poff. M l' a6n 116896 216 ar:B\ --\ 2-aq\ a i'r" 4 ? 4 ", Moran Avenil ,O""atr. Ori[' ,i[ & : rfTif _:vql" (o(., c{ 0 E 2a E 3at, 244 ooI c I o CITY OF SALEM ENGINEERING DEPARTMENT 1,I4 NORTH BROAD STREET P.O. BOX 669 SALEM, VIRGINIA 24153.0E69 (5,f0) 375-3032 N A MAPPING COMPUTED ON THE VIRGINIA STATE PLANE COORDINATE SYSTEM - SOUTH ZONE . ADJUSTED TO THE NORTH AMERICAN DATUM OF,I9E3. TIC COORDINATE INFORMATION IS AVAILABLE IN THE CITY OF SALEM ENGINEERING DEPARTMENT. 1 inch = 100 feet 100 50 0 100 map Features ,"..,' SubdiMsion Unes ! fa earcet ZaS / \ - ' Tax Map crid I I city ot saum earer ,^y' city of Sdm Boundery MAP NUMBER 235 ocToBER 2015 r 7 !l!/ r 1o I n l/ I .'i !". \-. 3 ITEM: Appropriation of Funds SUBJECT: Cons id er reques t to ac cept and appropriate the 2015 State Homeland Security Program Grant (SHSP). Aud it Financ e Committee ATTACHMENT S: Des crip tion Type Appropriation of Funds memo Cover Memo REVIEWER S: Dep artment Finance nEM#w.-b- wd?rW-E> ATA REGULAR MEETING OF THE CIry COUNCIL OF THE CIryOF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE:December 14,2015 Request to accept and appropriate the 2015 State Homeland Security Program Grant (SHSP) Rosemarie B. Jordan Director of Finance AGENDA ITEM: SUBMITTED BY; SUMMARY OF INFORMATION: The City has been awarded $13,500 in SHSP grant funds from the US Department of Homeland Security Federal Emergency lvlanagement Agency. The grant is administered by the Virginia Department of Emergency Management. Funds will be used to purchase a mobile utility vehicle. The vehicle being purchased isfourwheel drive and can traverse numerous types of terrain to include flooding conditions. lt will be used to patrol the greenways and provide assistance during large scale events such as the Blue Ridge Music Festival and the Salem Marathon. ln addition, the vehicle will be used to help transport crash/crime scene equipment in the event that trains and vehicles are involved in an accident. No local match is required. FISCAL IMPACT: The $13,500 grant will allow us to purchase a mobile utility vehicle that is not included in the current budget. STAFF RECOMMENDATION: Staff recommends accepting the $'13,500 from the SHSP grant and appropriating $13,500 in state grant revenue to account 10-030-010048395 and $13,500 to Police State Grant Expenditures to account 10-030-31 10-55859 for the purpose state above. ITEM: Dunkin' Donuts SUBJECT: Cons id er setting bond for ero s io n and s ed iment c ontrol fo r the Dunkin' Do nuts p ro ject. ATTACHMENT S: Des crip tion Type Dunkin' Donuts Cover Memo REVIEWER S: Dep artment Clerk of the Council rrEM# V-! L oerc* W)4-15- WILLIAM L. SIMPSON, JH, PE ASSISTANT CITY ENGINEER TELEPHONE: (540) 375-3032 FAX: (540) 375-4040 CHARLES E. VAN ALLMAN, JR., PE, LS CITY ENGINEER P.O. BOX 869 SALEM, VIRGINIA 24.I 53.0869 crTY o[' SALEM, \rrRGrNrA DEPARTMENT OF ENGINEERING December 3,2015 Council of the City of Salem Salem, VA Council Members: The City Engineer's office has reviewed the estimate for erosion and sediment control for Dunkin' Donuts It is recommended that the project be bonded in the amount of $6,864.00 and time frame for completion set at twelve (12) months. CEVj/llp Attachment: City Engineer's Estimate 1238 WEST MAIN STREET Sincerely, o/;etAnru,*Sl Charles E. VanAllman, Jr., PE,/LS City Engineer PROPERTY: OWNER(S): December 3, 2015 DUNKIN'DONUTS 1803 W MAIN STREET LSW.HMW FAMILY LIMITED PARTNERSHIP Silt Fence lnlet Protection Permanent Seeding Temporary Seeding Listed below are the erosion and sediment control measures to be constructed in conjunction with the property of the referenced contractor, and the recommended security required for each from the contractor. 1,860.00 150.00 2,350.00 1,880.00 SUBTOTAL: 6,240.00 10 7O CONTINGENCY 624.00 TOTAL BOND:$ 6.864.00 ITEM: Closed Sessio n SUBJECT: Hold a c lo s ed s es s io n p ursuant to provis io ns of Sec tion 2.2-3711A(1) o f the 1950 code o f Virginia, as amended, to d is c us s a p ers o nnel matter. REVIEWER S: Dep artment Clerk of the Council