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HomeMy WebLinkAbout5/29/2012 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION May 29, 2012 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 29, 2012, 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; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Krystal M. Coleman, Deputy Clerk of Council; Mary Ellen H. Wines, Deputy Zoning Administrator; Frank P. Turk, Director of Finance; Tammy Todd, Finance Department; and Mary Ann Penney, Finance Department; 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 discussion was held regarding the keeping of chickens; and WHEREAS, a discussion was held regarding city decals for vehicles; and WHEREAS, a discussion was held regarding a press conference to be held on May 30, 2012, regarding open access fiber in the Roanoke Valley; 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 7:24 p.m. Mayor Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING May 29, 2012 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 29, 2012, 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; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Frank P. Turk, Director of Finance; Melinda J. Payne, Director of Planning and Economic Development; Charles E. Van Allman, Jr., City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney, and the following business was transacted: Mayor Foley thanked all the military personnel and their families who gave their lives in service of our country. It was noted that Boy Scout Troop 449 was present at the meeting. The May 14, 2012, 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, 2012, was received and ordered filed. WHEREAS, Councilwoman Garst asked the Director of Finance about the deficit of approximately $700,000 in waste disposal; and WHEREAS, the Director of Finance stated that was correct; he stated that the City collects the garbage and transports it to another location/community; the net cost in the general fund is the $700,000, which is less th an the cost of collection; if you take the cost of the transfer station and subtract the people that pay to dispose of waste (i.e. businesses, etc.) the $700,000 as a whole is not a large amount of money; he stated that he does not have the numbers in front of him, but stated that the out-of-pocket per ton for the disposal of solid waste is less than $10; and WHEREAS, Councilwoman Garst questioned if the figure was fairly consistent from year to year; she stated that she does not want to see the number continue to rise and rates were not increased like what was done with water and sewer; and 2 WHEREAS, the Director of Finance stated that the figure is fairly consistent level of less than $10; he stated that if the figure was between $12 and $13, he would request that Council increase tipping fees at the plant; he stated that the City is also in a competitive business relating to tipping fees because places like Waste Management have other choices to take their waste; and WHEREAS, Councilwoman Garst stated that if the City is losing money than, it doesn’t make sense to keep losing money; and WHEREAS, the Director of Finance stated that solid waste is not intended to make money; and WHEREAS, Councilwoman Garst questioned if it should at least break even; and WHEREAS, the Director of Finance stated that it should not; he further noted that the cost of disposal is approximately $42 a ton; he stated that the City is taking other people’s money and reducing its cost down to $10 a ton; and WHEREAS, the City Manager stated that the revenue generated from the sale of dumpster service off-sets a lot of what it would cost if the city was just collecting municipal garbage; he stated that the $700,000 it costs the city is what it costs to collect municipal solid waste, as well as waste from commercial agencies; if the commercial was removed, the amount would be considerably larger than $700,000 in terms of what it cost the city to collect residential waste; and WHEREAS, Councilwoman Garst stated that commercial is used to subsidize the residential; and WHEREAS, the Director of Finance stated that is correct. Mayor Foley reported that this date and time had been set to hold a public hearing and consider an ordinance on first reading adopting the budget for fiscal year 2012-2013; notice of such hearing was published in the May 21, 2012, issue of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, stated that Council held a budget work session on May 14, 2012; the ITEM 1 PUBLIC HEARING AND ORDINANCE PASSED ON FIRST READING ADOPTING THE BUDGET FOR FISCAL YEAR 2012-13 3 Committee reviewed the budget for the fiscal year 2012 -2013 and recommends approval by ordinance, both by line-item and fund totals, as written; and WHEREAS, the Director of Finance stated that the budget was presented to Council at the end of April 2012; the grand total was $150 million (in round numbers); he stated that on May 14, 2012, a work session was held regarding the budget and no changes were made that substantially affected the $150 million; he stated that there is some level of grown in certain areas, but nothing significant at this point; he stated that the effect of increasing the meals tax will be seen in the 2012-2013 budget, which will be used to pay for the construction of a new South Salem Elementary School; additional money for Salem Schools to take care of VRS issues; rates for water and sewer were previously approved by Council that has an increase January 2013 and January 2014; the Power Cost Adjustment Factor will increase and pass through costs to citizens actual costs of the City for acquiring electricity from AEP; he stated that there was a question about a large “true-up” at the end of June 30, 2011, and there is a very small one this year; he stated that the reasoning behind that is in the last round of negotiations with AEP, AEP agreed to take away certain environmental case issues that do not deal directly with power that is purchased by the City; he stated that in addition, some of the increases the City would experience at June 30th in a true-up have taken place during the year which means the monthly bills have been a tad bit higher, but there is not a “settle up” at the end of the year; he stated that last year AEP required the city to pay an additional $2.7 million, and this year the amount was approximately $30,000; he further stated that the cost of electricity will continue to rise under the terms of the 20-year contract with AEP; he then discussed the items to be adopted relating to the budget (Personnel Pay Plan, resolutions due to VRS mandates, etc.); he noted that community service agencies were level-funded; and WHEREAS, the City Manager noted that there are still a couple of community service agencies in question, which will be held until there is more information for Council; and WHEREAS, Dottie Cook, Moran Avenue, current President of the Salem Council of PTAs, appeared before the Council and stated that there was an increase in PTA memberships this year; she attributed the increase to the support Council provides to the School Division; she stated that through Council’s support, Salem is not like other areas where programs such as arts and vocational programs have been discontinued; she believes this is due to Council’s support of the schools; she thanked Council f or being able to meet the School Division’s needs; and 4 WHEREAS, Council thanked Mrs. Cook for her service to the schools; and WHEREAS, Councilman Jones noted that the state has placed mandates upon the City and its employees without any input from Council; he stated that he feels that the mismanagement begins at the federal level, passes to the state level, and is then dropped on the localities to handle; he stated that people need to speak to our legislative representatives and question why the localitie s have become responsible for the mismanagement at the upper levels of government; he compared the federal government’s mismanagement of social security with the State of Virginia’s mismanagement of the Virginia Retirement System; he feels that the state has sent a bad message and that we as citizens and public officials need to send a message to our legislators that we have had enough; and WHEREAS, Councilwoman Johnson concurred with Councilman Jones and feels that if enough people speak up, then maybe so mething will change; she encouraged residents to contact their legislators either by sending letters, at meet and greets, or through Council; and WHEREAS, Councilwoman Garst also concurred with Councilman Jones and Councilwoman Johnson; and WHEREAS, Mayor Foley noted that essentially the State of Virginia has mandated that the City send the federal government more money, but no one is getting paid any more money in the end; he voiced his frustration with the upper level of governments’ mismanagement of funds; he commended the employees of the City of Salem; and WHEREAS, a discussion was held regarding mandates and the affect the mandates have on the employees and citizens of Salem; and WHEREAS, Mayor Foley further noted that the State of Virginia has passed the mandates onto the localities, but has not communicated what it is trying to accomplish; he stated that there is an assumption of what the state is trying to accomplish, but the steps taken thus far have not been clear about what plan the state has to resolve the issue of the unfunded liability for retirement in the State of Virginia; and WHEREAS, Councilman Jones also commended the employees of the City of Salem; he stated that if the federal and state level governments had “lived within their means,” the local governments would not be in the current situation of having to find funding for mandates being placed on the local governments by the federal and state levels without proper funding; and 5 WHEREAS, Councilwoman Garst reminded citizens to speak to our legislators about proper funding for education; and WHEREAS, no other person(s) appeared related to the hearing; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, an ordinance adopting the budget for fiscal year 2012-2013 in the amount of $150,203,066 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 1203 amending/establishing the Schematic List of Job Classes and Pay Ranges and Steps for fiscal year 2012-2013 to be effective July 1, 2012; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, stated that the Committee reviewed the Job Classes and Pay Ranges and Steps for fiscal year 2012-2013 and recommends approval of Resolution 1203 amending/establishing the Schematic List of Job Classes and Pay Ranges and Steps for fiscal year 2012-2013 to be effective July 1, 2012; it was noted that the pay ranges and steps include a 5 percent pay increase as mandated by the State of Virginia for VRS Contributions and a 1 percent cost -of-living increase to cover the taxes as a result of the shift of VRS funds from benefits to salaries; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1203 amending/ establishing the Schematic List of Job Classes and Pay Ranges and Steps for fiscal year 2012-2013 was hereby adopted: (HERE SET OUT RESOLUTION) – 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 adoption of Resolution 1204 amending schedule P.C.A. IN THE Book of Electric Rates; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, stated that the City has a long-term contract to purchase electric ITEM 2 RESOLUTION 1203 ADOPTED AMENDING/ ESTABLISHING THE SCHEMATIC LIST OF JOB CLASSES AND PAY RANGES FOR FISCAL YEAR 2012-13 ITEM 3 RESOLUTION 1204 ADOPTED AMENDING SCHEDULE P.C.A. IN THE BOOK OF ELECTRIC RATES 6 power from Appalachian Power Company; this contract provides for increasing cost based upon a formula filed with FERC; the Committee reviewed this contract and recommends approval of Resolution 1204 authorizing an increase to the power cost adjustment factor (PCA) charged to Salem customers from $0.010 per KWH to $0.019 per KWH; the purpose is to recapture only the increased cost of power to the city; ON MOTION MADE BY COUNCILMAN JONES, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Resolution 1204 amending schedule P.C.A. in the Book of Electric Rates was hereby adopted: (HERE SET OUT RESOLUTION) – 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 8:03 p.m.