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HomeMy WebLinkAbout7/27/2015 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION July 27, 2015 A work session of the Council of the City of Salem, Virginia, was held in the Council Chambers Conference Room, 114 North Broad Street, Salem, Virginia, on July 27, 2015, at 6:30p.m., there being present the following members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, William D. Jones (absent), and Lisa D. Garst; with Byron Randolph Foley, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council, Rosie Jordan, Director of Finance; and Mary Ellen Wines, Zoning Administrator; 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, Vice-Mayor Givens was presented with his twenty-year service award; and WHEREAS, a discussion was held regarding proposed code changes from the Commissioner of the Revenue; and WHEREAS, a discussion was held regarding the FieldTurf installation; and WHEREAS, a discussion was held regarding the annual real estate report; and WHEREAS, there were no other topics for discussion. There being no further business to come before the Council, the work session was adjourned at 7:26p.m. ____________________________________ Mayor _____________________________________ Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING July 27, 2015 A regular meeting of the Council of the City of Salem, Virginia, was held in Council Chambers, City Hall, 114 North Broad Street, on July 27, 2015, at 7:30 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 (absent), and Lisa D. Garst, with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Rosie Jordan, Director of Finance; Melinda J. Payne, Director of Planning and Economic Development, Mike Stevens, Communications Director, Charles E. Van Allman Jr., City Engineer, and Stephen M. Yost, City Attorney; and the following business was transacted: The July 13, 2015, work session and regular meeting minutes were approved as written. Mayor Foley stated that Council is amending the agenda by adding supplemental item number two, a closed session to consider property the City may wish to sell; and Mayor Foley reported that this date and time had been set to hold a public hearing to consider the conveyance of City of Salem real property designated as 3.6834 acre tract located at 113 Corporate Boulevard, being a portion of Tax Map #149-1-4. (Advertised in the July 20, 2015, issue of The Roanoke Times.) WHEREAS, Mr. Boggess stated this piece of property the City owns on the Elizabeth Campus has been sold and repurchased at least once and this would be the third public hearing to consider selling it; Patrick Wilkinson bought this piece of property initially and kept it for several years and was unable to develop it and asked City Council to buy it back. Subsequently, another public hearing to sell a portion of the same property to the Salem Montessori School in order to construct and operate a day care facility there had taken place, but the sale has not gone through; this would be an opportunity for City Council to hold a public hearing on the entire remaining piece of property on that side of the street bounded by Texas Street, the City’s storm water detention pond and Commerce Drive; therefore we would conduct one sale for the entire 3.6834 acres and would generally identify it as a piece of property that the City wants to sell ; we have had a general public hearing that the City is interested in selling this piece of property without identifying, at this point, a specific buyer or contract or use which is what Council normally does; but because we know we want to sell this and certainly City Council is capable of deciding and approving appropriate uses, contractors and buyers in the future, that we simply hold a public hearing that we want to sell this piece of property so that if this particular purchase does not go through we would not have ITEM 1 CONVEYANCE OF REAL PROPERTY DESIGNATED AS A 3.6834 ACRE TRACT LOCATED AT 113 CORPORATE BOULEVARD, BEING A PORTION OF TAX MAP #149- 1-4 APPROVED to go through yet another public hearing in the future if we want to sell it to a different user or buyer; and WHEREAS, Mayor Foley stated this is a public hearing, so if anyone would like to address this issue of the City potentially selling 3.6834 acres please come forward; WHEREAS, no one appeared during the public hearing; Mayor Foley closed the public hearing; and WHEREAS, Mr. Yost stated if in fact Council wished to proceed with the sale or to look for potential purchasers, Council would proceed with a motion directing that any sale or proposal that might be received would be brought back to City Council and any proposal received would be considered at a later meeting, and ON A MOTION MADE BY COUNCILWOMAN GARST, SECONDED BY VICE-MAYOR GIVENS, AND DULY CARRIED, the request to convey the property at 113 Corporate Boulevard, be hereby approved and that any future proposal for the use of the land be brought back before City Council – the roll call vote: Lisa D. Garst – aye, William D. Jones – (absent), Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider the amendment to the Elizabeth Medical Park LLC deed pertaining to the uses to be made on property; and WHEREAS, Mr. Boggess stated as Council is aware when the option to sell the property to Mr. Friesland was first drafted the subsequent contract had very limited uses that were to be allowed on the Elizabeth Campus on that particular piece of property. The use that has come forward – Mount Regis residential inpatient drug and rehabilitation facility – was not included in that. In order to abide by the deed restrictions, the deed would need to be amended to allow that particular use on that property and that is what is before Council this evening, an amendment to the deed that would allow the particular use of Mount Regis inpatient drug and alcohol facility, and WHEREAS, Mr. Yost agreed stating it was an excellent explanation, and ON A MOTION MADE BY VICE-MAYOR GIVENS, SECONDED BY COUNCLILWOMAN JOHNSON, AND DULY CARRIED, the request to amend the Elizabeth Medical Park LLC deed pertaining to the addition of the use of a residential inpatient drug and alcohol rehabilitation facility is hereby approved – the roll vote: Lisa D. Garst – aye, William D. Jones – (absent), Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. ITEM 2 AMENDMENT OF DEED OF CONVEYANCE FOR ELIZABETH MEDICAL PARK LLC APPROVED Mayor Foley requested Council to consider the acquisition and demolition of property or properties for the PDM project, and WHEREAS, Vice-Mayor Givens, Chair of Council’s Audit-Finance Committee, stated that the City Engineer’s office has received approval from FEMA PDM (Pre-Disaster Mitigation) project for the acquisition and demolition of the flood prone structure at 918 South Market Street; this project has a seventy- five percent federal share and twenty-five percent local share and total project costs should not exceed twenty thousand dollars, ten thousand for acquisition costs to homeowner, and the remainder for attorney fees, demolition, administration and in- kind costs; this Committee recommended approval of the acquisition and demolition of said property for the PDM project; Mr. Van Allman further discussed that once this house is demolished and cleaned up that property will no longer be available to build on – a parking lot or anything; it will be left as open green space; we could plant trees or flowers, but no structure; and WHEREAS, Councilwoman Garst revisited a previous statement by Mr. Van Allman for confirmation that these funds are harder to come by these days for some of these properties; and WHEREAS, Mr. Van Allman stated that the general consensus is yes, these funds are harder to come by, and the PDM program is actually a nationwide competitive program; so we are competing against acquisitions all across the country, not just in Virginia; so we met a certain criteria and a certain percentage of the top ones actually get funding out of the PDM; and WHEREAS, Mr. Boggess added the fact that we were able to do this is in large part because of the expertise that our Engineering Department has built up over the last few years and the reputation they have with FEMA for doing good projects and getting them done efficiently and cost effectively; and Mr. Van Allman is the reason we are able to do this; and WHEREAS, Vice-Mayor Givens added a thank you to Mr. Van Allman and his staff; and WHEREAS, Mayor Foley inquired about another piece of property where this was done a few years ago; does the City have to retain ownership of the property; for example, if a neighbor wanted to own the property just to maintain it, can he or she do so or do we have to maintain the property; and WHEREAS, Mr. Boggess stated he had discussed that exact example with Mr. Van Allman and asked Mr. Van Allman to explain further; and WHEREAS, Mr. Van Allman stated as part of the deed there are certain stipulations that we have to put in the deed; one is the City will maintain the property in perpetuity; essentially, the best comparison is a land trust or ITEM 3 ACQUISITION AND DEMOLITION OF PDM PROPERTY (918 SOUTH MARKET STREET) APPROVED conservancy trust that the property must be kept as open space; the criteria is based on the fact that the land is not suitable to build upon and must remain wild and open; and WHEREAS, Mayor Foley stated we need to be careful with the wild, that’s what has come up with some of these types of properties; neighbors complain that the City is not perhaps maintaining them to the level that they would like them maintained; and WHEREAS, Mr. Boggess stated there can be an understanding with the neighbors that they are welcomed to maintain the property(ies) and use it(them); obviously there some concerns liability wise and otherwise, but if they are willing to maintain them, the City would absolutely love for the neighbors to do so and then let their kids play football on the properties or whatever; and WHEREAS, Mayor Foley stated the City has to retain ownership is the bottom line but other arrangements could be possible; and WHEREAS, Mr. Van Allman stated that FEMA does have some examples of that; however the deed would have to stay with the City; they do have examples of neighbors taking over these areas and using them; they are not against it being used as open space for kids to play, temporary structures like swing sets, things like that; it is where they get into a permanent structure or pavement that poses the problem; FEMA is now starting to switch their emphasis into water quality so they do not want impervious surfaces; that has changed within the last five or six years due to water quality issues and the EPA; and WHEREAS, Councilwoman Garst stated that Mr. Van Allman and his department have done a great job, thank you; now these pieces of property which are now multiple pieces of property, in essence a land trust, so what is the City’s maintenance plan for maintaining these pieces of properties; I am sure it just flows under the Street Department, but are they being supplemented each time a piece of property is added; and WHEREAS, Mr. Boggess responded negatively; and WHEREAS, Councilwoman Garst continued that is wherein the issue lies; so at some point there is such an inventory of these things there has to be an action plan for them; Mr. Givens said some type of tree planting or turning them over to some neighborhood gardening should be considered; there has to be some long-range planning for those pieces of property; and WHEREAS, Mr. Van Allman stated that his department can explore talking to neighbors and seeing if there would be some voluntary action; also, most of the low-hanging fruit has been picked; most of the houses that are left, either do not want to sell r they do not have the benefit cost ratio that would qualify, so there are not too many properties left; and WHEREAS, Vice-Mayor Givens stated there are not many family neighbors in that area; it is pretty much a commercial area; and WHEREAS, Mr. Van Allman added, it is residential but it is not in a residential area; and ON MOTION MADE BY VICE-MAYOR GIVENS, SECONDED BY , COUNCILWOMAN JOHNSON, AND DULY CARRIED, the request for acquisition and demolition of property or properties for the PDM project is hereby approved – the roll call vote: Lisa D. Garst – aye, William D. Jones – (absent), Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider the cancellation of the August 10, 2015, work session and Council meeting due to multiple vacations; and ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the August 10, 2015, Salem City Council work session and regular meeting are hereby cancelled – the roll call vote: Lisa D. Garst – aye, William D. Jones – (absent), Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider adoption of Resolution 1273 amending the financing agreement with Virginia Resources Authority for 2010 borrowing; and WHEREAS, Vice-Mayor Givens, Chair of Council’s Audit-Finance Committee, stated that the City issued Taxable General Obligation Public Improvement Bonds, Series 2010 in a maximum principal amount of $3,792,584 to fund sewer rehabilitation work; Virginia Resources Authority (VRA) has informed the City that the Virginia Department of Environmental Quality has authorized a reduction of the Cost of Funds on this Series 2010 borrowing from 3.35% to 2.65%; this is the result of efforts taken to refund the Clean Water State Revolving Fund Revenue Bonds that were the source of funding for the loan; implementation of this rate reduction will require an amendment to the Financing Agreement and an allonge to the bond; this Committee recommended adoption of Resolution 1273 amending the financing agreement with Virginia Resources Authority for 2010 borrowing; and WHEREAS, Mayor Foley verified that it is an annual reduction of $14,400 until 2031; and ON MOTION MADE BY VICE-MAYOR GIVENS, SECONDED BY , ITEM 4 AUGUST 10, 2015, COUNCIL WORK SESSION AND REGULAR MEETING CANCELLED ITEM S1 RESOLUTION 1273 AMENDING FINANCING AGREEMENT FOR TAXABLE GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, 2010 APPROVED COUNCILWOMAN GARST, AND DULY CARRIED, Resolution 1273 amending the financing agreement with Virginia Resources Authority for 2010 borrowing is hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – (absent), Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider the request of the City Manager to hold a closed session pursuant to provisions of Section 2.2-3711 A(3) of the 1950 Code of Virginia, as amended, to discuss the disposition of property; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, in accordance with Section 2.2-3711 A. of the Code of Virginia, 1950 as amended to date, Council convened to Closed Session at 7:46 p.m. for the purpose of discussing the following specific matter: 1. Discussion of a real estate matter pertaining to property the City may desire to sell, which is authorized by Section 2.2-3711 A. 3. of the Code of Virginia, 1950 as amended to date; -- the roll call vote: all present aye. Upon reconvening at 8:24 p.m.; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, in accordance with Section 2.2-3712 D. of the Code of Virginia, 1950 as amended to date, Council hereby certifies that in Closed 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 -- the roll call vote: all present - aye. There being no further business to come before the Council, the same on motion adjourned at 8:25 p.m. ITEM S2 CLOSED SESSION