HomeMy WebLinkAbout5/22/2023 - City Council - Minutes - RegularCity Council Meeting
MINUTES
Monday, May 22, 2023, 6:30 PM
Work Session is cancelled for May 22, 2023
Regular Session 6:30 P.M. Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153
WORK SESSION
WORK SESSION IS CANCELLED
REGULAR SESSION
1. Call to Order
A regular meeting of the Council of the City of Salem, Virginia was called to
order at 6:30 p.m., there being present the following members to wit: Renée
Ferris Turk, Mayor; James W. Wallace, III, Vice-Mayor; Councilmembers:
Byron Randolph Foley, William D. Jones, and H. Hunter Holliday (absent); with
Renée Ferris Turk, Mayor, presiding together with James E. Taliaferro, II, City
Manager; Rob Light, Assistant City Manager and Clerk of Council; Rosemarie
B. Jordan, Director of Finance; Chuck Van Allman, Director of Community
Development; Mike Stevens, Director of Communications; and Jim Guynn, City
Attorney.
2. Pledge of Allegiance
3. Bid Openings, Awards, Recognitions
Mayor Turk expressed appreciation to all of the Fire and Safety EMS
personnel that were present this evening and for their dedication and hard
work in caring for the citizens of the City of Salem.
4. Consent Agenda
A. Citizen Comments
Comments from the public, limited to five minutes, on matters not
already having a public hearing component at the same meeting.
Eddie Hite, 122 Par Drive, was the only citizen to address Council this evening.
He expressed concern about the issue of salary compression and meeting the
salary needs of the following departments: Electric, Water/Sewer,
Streets/Sanitation, Public Education, Fire/EMS, and Public Safety. He spoke of a
number of positions that had been vacated in these departments and requested that
Council take a critical look at compression during the pay study process in an
attempt to retain tenured employees. Mr. Hite specifically requested that Council
consider raising the pay for part time paramedics. The second request that Mr.
Hite presented to Council was to consider appointing a 5 -person citizen Review
Committee to review how the City operates. He noted that he had a list of names
to be considered for such a committee and that he would get this list to Council.
He thanked Council for their support and what was being done through the Pay
Study.
B. Minutes
Consider acceptance of the May 8, 2023, Work Session and Regular
Meeting minutes.
The minutes were accepted as written.
C. Financial Report
Consider acceptance of the Statement of Revenues and Expenditures for the
ten months ending April 2023.
The financial reports were received.
5. Old Business
There was no old business this evening.
6. New Business
A. Amendment to the Zoning Ordinance
Hold public hearing and consider ordinance on first reading for the request of
Salem Montessori School, Inc., property owner, for rezoning the property at
112 Corporate Boulevard (Tax Map # 148-1-2.2) from RSF Residential
Single-Family District and BCD, Business Commerce District with
conditions to RSF Residential Single-Family District. (Advertised in the May
4 and 11, 2023, issues of the Salem Times-Register). Planning Commission
recommended approval. See page 5 of the May 10, 2023, minutes. STAFF
REPORT
Mayor Turk opened the public hearing.
Barney Horrell, 3553 Carvins Cove Road, Brushy Mountain Engineering, spoke
on behalf of Montessori School. He explained that this rezoning request was to
clean up the zoning lines for this property as the zoning lines did not match the
property lines. This was a remnant from when the property was divided
differently as part of the old Elizabeth Campus. They are requesting to bring the
whole property to Residential Single-Family with the intent in Item 6B, the
Special Exception request, to build a new school.
Mayor Turk closed the public hearing.
William Jones motioned to adopt ordinance on first reading for the request of
Salem Montessori School, Inc., property owner, for rezoning the property at 112
Corporate Boulevard (Tax Map # 148-1-2.2) from RSF Residential Single-Family
District and BCD, Business Commerce District with conditions to RSF
Residential Single-Family District. Randy Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
B. Special Exception Permit Amendment Hold public hearing to consider the request of Salem Montessori School, Inc.,
property owner, to revise the Special Exception Permit approved February 28,
2011, to allow the construction of an educational facility, primary/secondary
on the property located at 112 Corporate Boulevard, (Tax Map # 148 -1-2.2).
(Advertised in the May 4, and 11, 2023 issues of Salem Times-Register.)
Planning Commission recommended approval with conditions. See page 6 of
the May 10, 2023, minutes. STAFF REPORT
Mayor Turk opened the public hearing.
Barney Horrell, 3553 Carvins Cove Road, addressed Council. He noted that this
item is intended to address the development of the property from Item 6A. The
intent is to build a new school consistent with the two across the street. They are
currently housing students in an old house across the street from GE on Roanoke
Boulevard. As the school continues to grow, additional space is needed, and they
can either put money into the old building or build a new building. They would
like to create a "campus" atmosphere with all three buildings in the same place.
Conditions were put on the purchase of the property in 2011 when this property
along with 101 Corporate Boulevard was acquired for the first Montessori School.
Part of the property is a wooded lot that has been used for outdoor education. As
the school has grown, they have met with the City Horticulturist and Community
Development and have identified some trees that need to be preserved. The
Concept Plan will be modified to reflect trees that are to be preserved. The intent
is to preserve as many trees as possible. The condition that the entire lot remain
wooded (a deed restriction) needs to be removed. Before the deed can be
modified, the Special Exception request must be approved. Other conditions were
consistent with the site plan.
Mayor Turk asked if the older Oak trees will be preserved. Mr. Horrell responded
affirmatively, to the extent that this is possible. These trees are grouped together
as well. In addition, he noted that there is an easement at the bottom of the slope
of the YMCA for the future greenway.
Mayor Turk questioned if the language needed to include City staff and not just
the City Horticulturist. Mr. Light responded affirmatively.
Mr. Van Allman noted that Community Development is also working with the
developer on parking requirements and that it is challenging staying out of the
drip line of trees.
Mayor Turk closed the public hearing.
Randy Foley motioned to approve the request of Salem Montessori School, Inc.,
property owner, to revise the Special Exception Permit approved February 28,
2011, to allow the construction of an educational facility, primary/secondary on
the property located at 112 Corporate Boulevard, (Tax Map # 148 -1-2.2) with the
conditions that the oak trees will remain and other trees can be eliminated with the
approval of City Staff. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
C. Proposed Real Estate Tax Rate for Fiscal Year 2023-2024
Hold a public hearing on the effective real estate tax rate for fiscal year
2023-2024.
Mayor Turk opened the public hearing.
Ms. Jordan gave background on the requirement for the public hearing. She
noted that when reassessment is completed each year, if the assessment increases
by more than 1%, the City must publish the effective tax rate increase in the
newspaper. This information was published in the April 20, 2023, issue of the
Salem Times-Register. The effective tax rate increase would be 9.63% based on
the reassessment. There is no proposed change to tax rates. No action is required
at this time.
Mayor Turk closed the public hearing.
D. Tax Rates Resolution
Consider adoption of Resolution 1451, a resolution imposing taxes on real
estate, tangible personal property, machinery and tools, and all legal subjects
of taxation for City purposes, including the property of railroad, express,
telephone, telegraph, water, heat (gas), light and power companies. Audit -
Finance Committee
Mr. Wallace noted that real estate tax rates, personal property tax rate,
and machinery and tools tax rate will stay the same as last year.
James Wallace motioned to adopt Resolution 1451 which will set the tax rates for
the 2023-2024 fiscal year. The request is to levy the following tax rates for the
2023-2024 fiscal year:
a) Real Estate tax rate of $1.20 per $100 assessed valuation b) Personal property tax rate of $3.40 per $100 assessed valuation
c) Machinery and tools tax rate of $3.20 per $100 assessed valuation.
William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
E. Approval of Electric Rates
Consider adoption of Resolution 1452 amending the Electric Rate
Tariffs. Audit - Finance Committee
Vice-Mayor Wallace noted that once a year the Power Cost Adjustment (PCA)
must be assessed. City staff has calculated that the PCA that is needed for
electric bills beginning July 1, 2023, to be $0.013126 per kilowatt hour (KWH).
The electric rate tariffs have been updated to include this PCA.
James Wallace motioned to approve Resolution 1452 approving the updated
electric rate tariffs to be effective for all bills issued on or after July 1, 2023.
William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
F. Book of Rates- 2023
Consider the adoption of Resolution 1453 regarding the Book of Rates
for 2023-2024. Audit-Finance Committee
Vice-Mayor Wallace explained that this item pertains to the Book of Rates, which
is the City's book of charges for City services. The Book of Rates and Fees are
adopted each year along with the budget.
James Wallace motioned to adopt Resolution 1453 amending the Book of Rates
and Fees for the 2023-2024 fiscal year. Randy Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
G. Miscellaneous Fees - 2023
Consider the adoption of Resolution 1454 regarding the Miscellaneous Fees
for 2023-2024. Audit-Finance Committee
Vice-Mayor Wallace noted that the Miscellaneous Fees are also adopted each
year along with the budget.
James Wallace motioned to adopt Miscellaneous Fees Resolution 1454 for
the 2023-2024 fiscal year. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
H. Proposed Budget for Fiscal Year 2023-2024
Hold a public hearing on the proposed budget for fiscal year 2023-2024.
Mr. Light suggested that if Council was going to continue a couple of the other
budget items to the June 12, 2023, meeting that they also continue the public
hearing to that meeting as well.
Mayor Turk noted that Council desired to look more closely at a couple of items
and had staff working on these to bring more information to Council. Once
Council has had the opportunity to review this, they will be able to move
forward.
Mr. Foley clarified that part of the delay was due to receipt of some of the Job
Comp. and Class information later and the fact that Council had not been able
to study this information as thoroughly as they would like.
James Wallace motioned to continue the public hearing on the proposed budget
for fiscal year 2023-2024 to the June 12, 2023 meeting. Randy Foley seconded
the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
I. Salem School Division Budget
Consider adoption of Resolution 1456 approving the Salem School
Division budget for fiscal year 2023-2024. Audit - Finance Committee
Mr. Foley shared for the benefit of the public that because of the delayed
decision on the state budget, there could be an impact on the School's budget.
James Wallace motioned to approve Resolution 1456 approving the budget for
Salem City Schools for the 2023-2024 fiscal year to fulfill our legal requirement
of approving the budget. The budget is prepared for informative and fiscal
planning purposes only and does not actually commit or appropriate funds for
expenditure. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
J. Budget Adoption Ordinance
Consider an ordinance on first reading adopting the budget for fiscal year
2023-2024. A summary of the proposed budget was advertised in the Salem
Times-Register on April 27, 2023 and May 4, 2023. Audit - Finance
Committee
Mayor Turk stated that since Council had continued the public hearing for the
proposed budget that she would make a motion to continue the first reading of
the ordinance adopting the budget and the ordinance appropriating the budget.
Mr. Wallace stated that he would like to amend the motion to make it more
specific.
James Wallace motioned to continue the first reading of the ordinance adopting
the budget and the ordinance appropriating the budget for fiscal year 2023-2024
to the June 12, 2023 meeting. Randy Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
K. Budget Appropriation Ordinance
Consider an ordinance on first reading appropriating funds for the fiscal
year 2023-2024 budget. Audit - Finance Committee
This item was also continued by the action taken for Item 6J.
L. Appropriation of Funds
Consider request to appropriate proceeds from the sale of equipment. Audit
- Finance Committee
Mr. Wallace noted that the Street Department sold a very old truck on auction
for government bids in the amount of $13, 900 and that these funds were going
back to their budget.
James Wallace motioned to appropriate revenue from the sale of surplus
equipment in the amount of $13,900 to Sale of Equipment account and increase
the expenditure budget for Machinery & Equipment account by $13,900. Also,
that any proceeds not expended in the fiscal year received be administratively
appropriated in the subsequent fiscal year. Randy Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
M. Appropriation of Funds Consider request to transfer and appropriate Highway Maintenance funding
in the Capital Projects Fund for Apperson Drive Bridge. Audit - Finance
Committee
Mr. Jones noted that this bridge is the one past the bowling alley where Outdoor
Fitters used to be located. This is the first of three bridges on that road that will
be worked on in the next few years.
James Wallace motioned to transfer $74,772 from the Bridge Repairs Highway
Maintenance account to the Transfer to Capital Projects Highway Maintenance
account for repairs to the Apperson Drive Bridge located just west of Cook Drive.
Also, in the Capital Projects Fund, to appropriate $74,772 to the Transfer from
General Fund account and to the Apperson Drive Bridge Repairs #1800 account
for the purposes stated above. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
N. Appropriation of Funds
Consider request to amend the School Grant Fund and School Cafeteria
Fund budgets as approved by the School Board on April 11, 2023. Audit –
Finance Committee
James Wallace motioned to approve the School Board’s appropriation changes
to the Grant Fund budget to increase revenues and expenditures by $87,503 and
the Cafeteria Fund budget to increase revenues and expenditures by $192,741 as
approved by the School Board at their April 11, 2023 meeting. William Jones
seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
O. Appropriation of Funds
Consider request to amend the School Grant Fund budget as approved by
the School Board on May 9, 2023. Audit - Finance Committee
Mr. Foley clarified that this was Item 6O on the agenda.
James Wallace motioned to approve the School Board’s appropriation changes
to the Grant Fund budget to increase revenues and expenditures by $151,500 as
approved by the School Board at their May 9, 2023 meeting. William Jones
seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
P. Appropriation of Funds
Consider request to appropriate net position for Electric upgrades for
the development at the former Valleydale Plant. Audit - Finance
Committee
Mr. Wallace noted that this item pertained to incentives granted by the City for
the Valleydale project.
James Wallace motioned to appropriate $335,000 from Electric Fund net position
and increasing the budget in the Valleydale Project Improvements account by
$335,000 for the rerouting of overhead power lines on 8th Street and Indiana
Street. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
Q. Appropriation of Funds
Consider request to reappropriate Virginia Fire Programs funding. Audit -
Finance Committee
Each year, the City receives funding from the Virginia Fire Programs Fund,
which must be spent in accordance with state guidelines. If funds are not spent
in the fiscal year received, localities are allowed to carryover these funds.
James Wallace motioned to appropriate $13,000 of such funds accumulated in
previous years from fund balance to Fire Program Expenditures Account for use
in purchasing structural firefighting gear. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
R. Take 5 Oil Change and Car Wash Express Consider setting bond for erosion and sediment control and landscaping and
physical improvements for Take 5 Oil Change and Car Wash Express.
Audit - Finance Committee
Mr. Wallace clarified for the benefit of the public that this item pertained to the
property in front of Lowe's which they may have known as the old Fast Freddy's,
the old donut shop, or the old Sonic Drive-In.
James Wallace motioned to approve bonding in the amount of $1,650,416.00 for
erosion and sediment control and landscaping and physical improvements for
Take 5 Oil Change and Car Wash Express, located at 830, 816 & 800 Blk. W.
Main Street, with a time frame for completion set at twelve (12) months. Randy
Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
S. Valleydale Multifamily Community Consider setting bond for erosion and sediment control and landscaping and
physical improvements for Valleydale Multifamily Community. Audit -
Finance Committee
James Wallace motioned to approve bonding in the amount of $516,573.50 for
erosion and sediment control and landscaping and physical improvements for
Valleydale Multifamily Community, located at 710 8th Street, with a time frame
for completion set at twelve (12) months. Randy Foley seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
T. STS Group North America Inc. - Resolution 1457
Consider adoption of Resolution 1457 authorizing the City Manager to
execute a support agreement with the City of Salem Economic Development
Authority, as required, to allow the EDA to execute a bank loan, issue a
revenue bond, and use the proceeds of such loan for economic development
incentives by funding a separate loan to STS Group North American, Inc.
This resolution supersedes Resolution 1448 that was adopted at the April 10,
2023, meeting.
Mr. Light clarified that on April 10, 2023, Council adopted a resolution for a
Support Agreement to allow the Economic Development Authority to provide a
loan to STS Group North America for improvements they are making at the
former GE building. The loan structure has changed slightly, so this is a
housekeeping item. The original proposed loan was based on a fixed interest rate
throughout the term of the loan. The revised loan terms incorporate a variable
rate, including interest only payments for twelve months. At the twelve-month
mark, the loan converts to a fixed rate for the principal they draw down with
semi-annual interest payments and annual principal payments. This is just
clarifying that as the project moved on, the loan terms changed a little bit.
Mr. Foley motioned to adopt Resolution 1457 authorizing the City Manager
to execute a support agreement with the City of Salem Economic
Development Authority.
Mr. Wallace requested that the text be amended to remove the word
"proposed" from the text of the resolution and the support agreement. Mr.
Light noted that it was his understanding in speaking with Mr. Miller that this
was being addressed.
Randy Foley motioned to amend text to strike the word "proposed" in the
resolution and support agreement and to adopt Resolution 1457 authorizing the
City Manager to execute a support agreement with the City of Salem Economic
Development Authority, as required, to allow the EDA to execute a bank loan,
issue a revenue bond, and use the proceeds of such loan for economic
development incentives by funding a separate loan to STS Group North
American, Inc. This resolution supersedes Resolution 1448 that was adopted at
the April 10, 2023, meeting. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
U. Amendment to City Code - Chapter 82
Consider adoption of ordinance amending Section 82 -43, Article II, Chapter
82 of the Code of the City of Salem pertaining to Tax Relief for the Elderly
and Disabled.
Mr. Light clarified that this item would modify the ordinance for Section 82 -43 of
the City Code, Article II, Chapter 82 pertaining to Tax Relief for the Elderly and
Disabled. The limits were last updated in 2001. Council recently held a Work
Session with the Commissioner of Revenue, and they provided information for
Council's consideration and made some recommendations on increasing the
income limit and the asset limit. The proposal would raise the income limit from
$50,000 to $65,000 and the asset limit from $100,000 to $185,000. There would
be no other changes to the Tax Code section.
Randy Foley motioned to adopt on first reading an ordinance amending Section
82-43, Article II, Chapter 82 of the Code of the City of Salem pertaining to Tax
Relief for the Elderly and Disabled. William Jones seconded the motion.
Ayes: Foley, Jones, Turk, Wallace
Absent: Holliday
7. Adjournment
The meeting was adjourned at 7:08 p.m.