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HomeMy WebLinkAbout5/28/2013 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION MAY 28, 2013 A work session of the Council of the City of Salem, Virginia, was held in the City Manager’s Conference Room, City Hall, 114 North Broad Street, Salem, Virginia, on May 28, 2013, at 6:30 p.m., there being present all the members of said Council, to wit: Byron Randolph Foley; John C. Givens, Jane W. Johnson, William D. Jones, and Lisa D. Garst; with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; Krystal M. Farmer, Deputy Clerk of Council; Rosie Jordan, Director of Finance; A. K. Briele, Director of Electric Department; Angela Sellers, Director of Technology Planning; Mike Crew; and Tammy Todd; 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, a presentation was given by a representative of GDS Associates, Inc. regarding the electric rate study; and WHEREAS, the Director of Technology Planning gave an update regarding Kronos and New World software implementation; and WHEREAS, a discussion was held regarding an appropriation for paving equipment; 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 7:25p.m. ____________________________________ Mayor _____________________________________ Deputy Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING May 28, 2013 A regular meeting of the Council of the City of Salem, Virginia, was held in Council Chambers, City Hall, 114 North Broad Street, on May 28, 2013, at 7:30 p.m., there being present all the members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, William D. Jones, and Lisa D. Garst; with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; Krystal M. Farmer, Deputy Clerk of Council; Melinda J. Payne, Director of Planning and Economic Development; Stephen M. Yost, City Attorney; Charles E. Van Allman, Jr., City Engineer; Mike Stevens, Communications Director; and Rosie Jordan, Director of Finance; and the following business was transacted: The May 13, 2013, work session and regular meeting minutes were approved as written. The report by the Director of Finance of the City’s financial status for a ten-month period ending April 30, 2013, was received and ordered filed. Councilman Jones questioned why the non-departmental expenditures were over $188,000 according to the report. The Director of Finance stated that she would research and find out the answer. Mayor Foley reported that this date and time had been set to hold a public hearing to consider the request of Concrete Pipe & Precast, Inc., to authorize a Rights-of-Way Use Agreement; the item was continued from the May 13, 2013, meeting; and WHEREAS, the City Manager stated that Hanson Concrete on Industrial Drive has two locations and would like to connect the two locations for computer network; in order to do that, the company has to come across the right-of-way because their properties are separated by the right-of-way; staff has reviewed the request and recommends approval; and WHEREAS, no other person(s) appeared regarding the request; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the request of Concrete Pipe & Precast, Inc. for a rights-of-way use agreement was hereby authorized – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. ITEM 1 RIGHTS-OF-WAY USE AGREEMENT AUTHORIZED WITH CONCRETE PIPE & PRECAST, INC. 2 Mayor Foley reported that this date and time had been set to hold a public to consider the request of Briar Oak Investments IV LP, property owner, and Kick The Can LLC, lessee, for the issuance of an “Use Not Provided For” Permit with proffered conditions, to allow a brewery/restaurant/retail sales business on the properties located at 739 & 751 Kesler Mill Road (Tax Map #’s 34-1-1 and 29-1-2); item was continued from the April 22, 2013 meeting; and WHEREAS, the Planning Commission at its regular meeting held on May 15, 2013, recommended approval of said request; and WHEREAS, staff noted the following: the subject property consists of wo parcels of 1.81 and 1.28 acres, located on Kesler Mill Road adjacent to the Hanging Rock Battlefield Trail greenway and near the intersection with Garst Street; the property is currently zoned LM Light Manufacturing District; this request is for an Use Not Provided For Permit allowing the existing manufacturing business to also include restaurant and retail sales activities; the brewery portion of the business is a manufacturing use, and currently the retail and restaurant operations are of an incidental nature, some of which is permitted by state law; granting this use not provided for permit would allow those uses to represent a larger share of the business operations; the lessee plans to develop the property at 751 Kesler Mill Road to provide additional parking for the business; the following conditions were voluntarily proffered in a rezoning approved by the Salem City Council on February 12, 1979: (a) The topographical crest of the hill mass located on the westerly portion of the subject parcels which presently shields the view of property owners to the west will not be reduced in altitude; and (b) All reasonable efforts will be exerted to retain the trees which presently grow along the westerly boundary of the subject parcels to the end that the view of owners of property to the west will remain screened thereby; this condition is, however, subject to the provision that the owners of the property sought to be rezoned may clear brush and other unsightly vegetation from their property and may plant additional trees; Update: the petitioners voluntarily proffered the following conditions for the Use Not Provided For permit: (1) A brewery with a tasting room to include up to 5,000 square feet of indoor retail/restaurant space and up to 5,000 square feet of outdoor retail/restaurant space will be permitted; and (2) the retail/restaurant use shall be only accessory to the operation of the brewery; and WHEREAS, Mike Snyder of 2221 Carolina Avenue, Roanoke, manager and part owner, representing Parkway Brewing Company and Kick The Can LLC, appeared before the Council in support of the request; he stated that at the time the brewery opened, the state had not passed the law that allows the brewery to sell retail; the patrons/guests that have been coming to the brewery have ITEM 2 USE NOT PROVIDED FOR PERMIT WITH PROFFERED CONDITIONS APPROVED TO ALLOW A BREWERY/ RESTAURANT/RETAIL SALES BUSINESS ON THE PROPERTIES LOCATED AT 739 & 751 KESLER MILL ROAD (T/M #’S 34-1-1 & 29-1- 2) 3 been great and they would like to continue to provide the services patrons would enjoy; and WHEREAS, the Director of Planning and Economic Development asked that Mr. Snyder explain what is currently offered and what is planned if the request is approved; and WHEREAS, Mr. Snyder stated that the outside is limited somewhat in retail and would like to expand the retail area to include the outdoor area with a small beer garden; food trucks do pull up from time to time but there are no intentions to build a restaurant, but would like to expand the retail area to accommodate the patrons; and WHEREAS, Councilwoman Johnson noted that she had read that they would also like to expand the parking; and WHEREAS, Mr. Snyder stated that there are plans to expand the parking sometime in the future, and that would be beneficial; he stated that they are waiting to see how the business operates during the hot months; and WHEREAS, Councilwoman Garst questioned if bands would play inside or outside near the beer garden area; and WHEREAS, Mr. Snyder stated that the idea is to keep the bands inside; if there were anything to be held outside, it would be on a Saturday during the day, and it would be acoustic; and WHEREAS, a discussion was held regarding parking; and WHEREAS, no other person(s) appeared related to the request; ON A MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the request of Briar Oak Investments IV LP, property owner, and Kick The Can LLC, lessee, for the issuance of an “Use Not Provided For” Permit with proffered conditions, to allow a brewery/restaurant/retail sales business on the properties located at 739 & 751 Kesler Mill Road (Tax Map #’s 34-1-1 and 29-1-2) was hereby approved reading – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. 4 Mayor Foley stated that this date and time had been set to hold a public hearing and to consider an ordinance on first reading considering the request of Frank G. Sr. and Mary Ann L. Monsour, property owners, for rezoning the property located at 129-131 Mill Lane (Tax Map #165-2-1.2) from BCD Business Commerce District to HBD Highway Business District; notice of such hearing was published in the May 8 and 15, 2013, issues of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, the Planning Commission at its regular meeting held May 15, 2013, recommended approval; and WHEREAS, staff noted the following: the subject property consists of one parcel of .61 acres, located on the east side of Mill Lane between the Roanoke River and the railroad crossing; the property is currently zoned BCD Business Commerce District; it is occupied by two vacant buildings; the property owners initially purchased the property for their residence; however, due to the zoning, they were not able to use it for residential purposes; recently, they had interest from Ziggy’s Entertainment, but the deal fell through when it was determined the zoning did not accommodate this use; this request is to rezone the property to HBD Highway Business District to accommodate future uses found in that zoning category; and this property lies partially within the Roanoke River Floodway and other associated flood zones; and WHEREAS, Frank G. Monsour, Sr., property owner, appeared before the Council in support of the request; he stated that he is trying to rezone the property to allow more options for business development; he stated that he believes that the possible tenants who wanted to lease the property for five years may enter into a lease agreement if the property is rezoned; and WHEREAS, the Director of Planning and Economic Development noted that the property was looked at several years ago as part of the Flood Mitigation Program, but because of the nature of the business, the funds were not available to do that; the property is located right along the river and having a business located on the property makes better sense than a residence; the request is a down-zoning and staff feels that it is compatible with the use of the property; and WHEREAS, no other person(s) appeared regarding the request; and WHEREAS, Mayor Foley noted that Council normally does not favor down-zoning, he feels that there is no other alternative in this instance; ITEM 3 ORDINANCE REZONING 129-131 MILL LANE FROM BCD TO HBD PASSED ON FIRST READING 5 ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, an ordinance rezoning the property of Frank G. Sr. and Mary Ann L. Monsour located at 129 -131 Mill Lane (Tax Map #165-2-1.2) from BCD Business Commerce District to HBD Highway Business District was hereby passed on first reading – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley reported that this date and time had been set to hold a public hearing to consider the request of Sidera Networks, LLC, to authorize a Rights-of-Way Use Agreement; also, consider authorization of the Pole Attachment License Agreement; notice of such hearing was published in the May 13 and 20, 2013, issues of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, the City Manager stated that Sidera Networks, LLC, would like to provide telecommunications service through part of the City in which they would need to use both the rights-of-way and attach to the City’s poles; they have agreed to the terms related to the rights-of-way use and pole attachment agreements, and have agreed to pay any costs required to accommodate their facilities on our poles; he noted that the Director of the Electric Department was also present if Council had any questions; and WHEREAS, Councilwoman Garst questioned if any of the pole locations Sidera would like to attach were at capacity; and WHEREAS, the Director of the Electric Department stated that he believes there are a few locations at capacity, but Sidera would absorb the costs associated with changing out the poles, etc.; and WHEREAS, no other person(s) appeared regarding the request; ON MOTION MADE BY COUNCILMAN JONES, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the request of Sidera Networks, LLC, for a rights-of-way use agreement and pole attachment agreement was hereby authorized – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley stated that this date and time had been set to hold a public hearing and to consider an ordinance on first reading amending Section 82-242, ITEM 4 RIGHTS-OF-WAY USE AGREEMENT AND POLE ATTACHMENT AGREEMENT AUTHORIZED WITH SIDERA NETWORKS, LLC ITEM 5 ORDINANCE AMENDING SECTION 82-242, ARTICLE VIII, CHAPTER 82 OF THE CODE OF THE CITY OF SALEM, VIRGINIA, PERTAINING TO AN INCREASE IN THE CIGARETTE TAX PASSED ON FIRST READING 6 Article VIII, Chapter 82, of the Code of the City of Salem, Virginia, pertaining to an increase in the Cigarette Tax; notice of such hearing was published in the May 20, 2013, issue of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, the Director of Finance noted that the City’s current cigarette tax rate is $0.15 per pack or $0.0075 per cigarette; it is proposed as part of the budget to increase the rate to $0.0226 per cigarette or $0.45 per pack; she stated that Council was provided information on where the increase would place the City in regards to other cities within the Commonwealth; and WHEREAS, Teresa, 2112 Bainbridge Drive, appeared before the Council and stated that she is a 40-year employee Layman Candy and Tobacco Company; she stated that through her 40 years, she has seen cities increase the cigarette tax to where cigarettes have priced themselves out of the cities and towns; within two miles of the City of Salem, a person can go to Roanoke County and save $4.50 per carton of cigarettes; she stated that people will drive to Roanoke County to save the money and will also purchase gasoline and other items at the convenience stores outside of Salem; she stated that through the years she has seen convenience store sales slowly decrease and the cigarette sales decrease; she stated that Layman Candy and tobacco Company has had to find other avenues for sources of income; she noted that cigarette sales have decreased due to health reasons, and the high costs through federal, state, and local taxes; she realizes that the City needs to generate more revenue, but feels that to keep increasing something that only the working-class contributes to; she also feels that the City needs to do more things to generate more revenue such as better restaurants other than chicken; she does not support the increase in the cigarette tax and asked that if the tax is increased, that it only be increased a minute amount; and WHEREAS, Dan Schultheis, Princeton, WV, Sheetz District Manager, appeared before the Council in opposition to the proposed increase; he stated that the proposed increase will affect the stores he oversees; the two stores in Salem currently employ 57 employees; he stated that the current price of a pack of cigarettes at his store on Peters Creek Road in Roanoke City is $5.45; Salem is asking for a $0.45 increase per pack of cigarettes; and WHEREAS, it was noted that the proposed increase is $0.30 per pack, not $0.45 per pack; and WHEREAS, Mr. Schultheis stated that when the rate was increased in Roanoke City, Store 295 on Peters Creek Road lost $1,000 per week in cigarette 7 sales, $10,000 per week in total sales because the customers that stop don’t only buy cigarettes, they buy gasoline, drinks, food, etc.; he stated that it was a very significant loss for the store; the store went from 32 employees to 26 employees; he stated that the two stores located in Salem employ 57 employees and he is not sure how it will affect those employees; he stated that about one - third of the customers come from Roanoke to Salem to purchase cigarettes, etc., and he feels that those people will no longer come from Roanoke to Salem if the cigarette tax is increased; and WHEREAS, Kirtesh Patel, 2126 River Oaks Drive, appeared before the Council and stated that he was speaking on behalf of the Asian American Business Owners Association, who represent many convenience stores from Harrisonburg to Abingdon, VA; he stated that there are 300 members in the association; he questioned if the decision to increase the cigarette tax was based on health reasons or for financial reasons; and WHEREAS, Mayor Foley stated that for him it is more revenue driven than health driven; and WHEREAS, Mr. Patel stated that if the increase was based upon health reasons, then he would support the increase; he feels that Council needs to consider a different revenue source because the percentage of the increase will not generate the same increase in revenue; he stated that the increase would be beneficial if Salem was an isolated city, but there are other options for people to go to purchase cigarettes other than Salem in order to save money; and WHEREAS, Kamlesh Jhaveri, 100 Kimball Avenue, Apartment D42, appeared before the Council; he stated that he is also representing the same organization as Mr. Patel and concurs with Mr. Patel; he gave Council a graph/study showing that the consumer who just purchases cigarettes spends an average of $10 on each visit and makes on average 10 visits to the store each month; the average cigarette consumer purchases more than just cigarettes, spends an average of $12.50 per visit and makes on average 12 visits a month; he stated that if the cigarette tax is increased, he will lose business; if he loses business, he will not be able to stay in business for a long time; he stated that if one convenience store closes, it affects nine (9) families; he asked that Council not increase the cigarette tax; and WHEREAS, Pinkesh Patel, 351 Wildwood Road, appeared before the Council and stated that he used to operate four stores in Salem and currently only operates one store in Salem; he asked that Council not increase the cigarette tax; and 8 WHEREAS, Councilman Jones stated that during the discussions based upon past experiences, cigarette sales decreased, but it was a temporary decrease; and WHEREAS, the Director of Finance stated that in her prior experience when the cigarette tax was first implemented and they increased the cigarette tax, there is a slight timing change and there is a decrease; she stated that there was a small decrease and then it leveled out at some point that was not proportional to the increase—if the rate was doubled, the revenue did not double but it did increase and it took a few months for that to happen; and WHEREAS, a discussion was held regarding the cigarette tax increase, stores relocating, etc.; and WHEREAS, it was noted that Council has also increased its lodging tax, and food tax as other revenue sources; and WHEREAS, Mayor Foley questioned what is the point where an increase in the cigarette tax would hurt retailers; currently, consumers can currently save $1.50 per carton of cigarettes by purchasing cigarettes in Roanoke County; therefore, what amount of increase would not cause consumers to drive elsewhere to purchase cigarettes; and WHEREAS, a discussion was held regarding what tax would be fair to retailers, “market forces,” etc.; and WHEREAS, Andy Gil, 610 Colorado Street, appeared before the Council and stated that he represents Gil Brothers Market on 41 West Fourth Street; he stated that the customers he sees in his store are every day, local customers; he stated that the customers who come into his store will continue to come to his store even with a $0.30 tax increase on a pack of cigarettes; he stated that he feels that he may lose a few customers, but not a lot overall; if the consumer wants to purchase a carton of cigarettes, they are going to drive to the County to purchase a carton of cigarettes; he stated that Salem already has the cheapest gas in the area and people are going to drive to Salem to purchase gas and will also purchase other items as well; and WHEREAS, Kirtesch Patel reappeared before the Council and questioned at what point will the consumers stop coming to Salem to purchase cigarettes; he is not sure if Salem will actually see an increase in revenue from the increase due to its close proximity to cheaper areas; and 9 WHEREAS, Mayor Foley noted that the State of Virginia is 50 th out of 51 states and territories; and there are only two cities in Virginia that have a cigarette tax less than the proposed increase; and WHEREAS, no other person(s) appeared related to said request; ON MOTION MADE BY COUNCILMAN JONES, SECONDED BY VICE MAYOR GIVENS, AND DULY CARRIED, an ordinance amending Section 82-242, Article VIII, Chapter 82, of the Code of the City of Salem, Virginia, pertaining to an increase in the Cigarette Tax was hereby passed on first reading – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley stated that this date and time had been set to hold a public hearing regarding the 2013-2014 recommended budget; notice of such hearing was published in the May 19, 2013, issues of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, Monica Farris, 718 Delaware Street, appeared before the Council on behalf of the Salem Council of PTAs to thank Council for its continued day-to-day support and its commitment to making sure the schools have the financial backing to successfully educate our students; and WHEREAS, the Director of Finance gave a brief overview of the proposed 2013-2014 budget; and WHEREAS, it was noted that the revenue from the increase in the cigarette tax will go in to the reserve account, and will not be used for operating or capital costs; and WHEREAS, Council thanked staff for their efforts on the budget; and WHEREAS, no other person(s) appeared related to the budget; THEREUPON, public hearing regarding the 2013-2014 budget was closed. Mayor Foley requested that Council consider an ordinance on first reading appropriating funds for the 2013-2014 fiscal year budget; ITEM 6 PUBLIC HEARING REGARDING 2013- 2014 BUDGET ITEM 7 ORDINANCE PASSED ON FIRST READING APPROPRIATING FUNDS FOR THE 2013-2014 FISCAL YEAR BUDGET 10 ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, an ordinance appropriating funds for the 2013-2014 budget was hereby passed on first reading – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider adopting Resolution 1228 amending/establishing the Schematic List of Job Classes and Pay Scale to be effective July 1, 2013; and WHEREAS, the Director of Finance stated that the City annually approves the Schematic List of Job Classes and Pay Scale that is included in the budget; she noted that the pay scale does not reflect any changes for fiscal year 2013-14, but there are changes in the Schematic Job Listing that are reflected in the budget; and WHEREAS, Councilwoman Garst noted that many positions that were “frozen” have been permanently cut from the budget; and WHEREAS, Mayor Foley noted that no pay increases have been given to employees the past few years and Council appreciates the efforts of all city and school employees; ON A MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, Resolution 1228 amending/establishing the Schematic List of Job Classes and Pay Scale effective July 1, 2013, was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider adopting Resolution 1229 reaffirming tax rates for Real Estate, Personal Property, and Machinery and Tools effective July 1, 2013; and WHEREAS, the Director of Finance stated that Chapter 15, Section 8.3 of the City Charter requires City Council to annually lay a tax levy for the ensuing fiscal year for all property, real and personal, subject to taxation for city purposes; state law also requires a public hearing be held when the assessment increase for real estate is in excess of one percent; the 2013-2014 real estate assessment did not increase the tax rate by more than one percent; therefore, a ITEM 8 RESOLUTION 1228 ADOPTED AMENDING/ ESTABLISHING THE SCHEMATIC LIST OF JOB CLASSES AND PAY SCALE ITEM 9 RESOLUTION 1229 ADOPTED REAFFIRMING TAX RATES FOR REAL ESTATE, PERSONAL PROPERTY, AND MACHINERY AND TOOLS 11 public hearing is not required for this year; tax rates remain the same as in 2012 - 2013; ON A MOTION MADE BY COUNCILWOMAN GARST, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Resolution 1229 reaffirming tax rates for Real Estate, Personal Property, and Machinery and Tools effective July 1, 2013, was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider and ordinance on second reading amending Chapter 66 – Signs, Article I, Section 66-1 and 66-6; Article II, Section 66-37; Article III, Division I, Section 66-72, and Division 5, Section 66-162; Article IV, Section 66-254, 256, 258, and 259; also enacting Section 66-77 of the Code of the City of Salem, Virginia, pertaining to Signs; ordinance was passed on first reading at the May 13, 2013, meeting; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, an ordinance amending Chapter 66 – Signs, Article I, Section 66-1 and 66-6; Article II, Section 66-37; Article III, Division I, Section 66-72, and Division 5, Section 66-162; Article IV, Section 66- 254, 256, 258, and 259; also enacting Section 66-77 of the Code of the City of Salem, Virginia, pertaining to Signs was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. There being no further business to come before the Council, the same on motion adjourned at 8:35 p.m. ITEM 10 ORDINANCE AMENDING CHAPTER 66 OF THE CODE OF THE CITY OF SALEM, VIRGINIA, PERTAINING TO SIGNS ADOPTED