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HomeMy WebLinkAbout7/13/2009 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION July 13, 2009 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 July 13, 2009, at 6:30 p.m., there being present the following members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, and Lisa D. Garst (William D. Jones – absent); with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; and Frank P. Turk, Director of Finance; 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 received from Melinda Payne, Director of Planning and Economic Development and a discussion was held regarding Center in the Square; and WHEREAS, a discussion was held regarding a joint work session with the School Board to be held on October 13, 2009; 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 7:12 p.m. Mayor Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING July 13, 2009 A regular meeting of the Council of the City of Salem, Virginia, was held in the Council Chambers, City Hall, 114 North Broad Street, on July 13, 2009, 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, and Lisa D. Garst (William D. Jones – absent); 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, City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney; and the following business was transacted: It was noted that Master Wesley Oliver with Troop 519 was present at this meeting of Council. Mayor Foley recognized Walter Martin Lipes for being present at this meeting of Council; he stated that the City has declared July 13, 2009, as Walter Martin Lipes Day in the City of Salem; he further stated that Mr. Lipes was a member of the Roanoke County Board of Supervisors and was instrumental in building the Salem Civic Center; he thanked Mr. Lipes for his contribution s to the County of Roanoke and the City of Salem. The June 22, 2009, work session minutes and regular meeting minutes were approved as written. Mayor Foley requested that Council consider adopting Resolution 1140 allowing Salem City Schools to participate in the City’s Other Post Employment Benefits (OPEB) Trust Fund; and WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit Finance Committee, reported that in many localities throughout Virginia, School Divisions have joined with their localities to operate under a single trust agreement with segregated accounting for the two entities; Resolution 1140 would allow the School Division to participate in Salem’s OPEB Trust Fund; this would also add one individual to the Local Finance Board (to be determined by the School Division); the Committee reviewed this resolution and recommended adoption allowing the School Division to participate in Salem’s OPEB Trust Fund; and WHEREAS, the Director of Finance stated that OPEB came about because the Governmental Accounting Standard Board Statement 45 which requires ITEM 1 RESOLUTION 1140 ADOPTED ALLOWING SALEM CITY SCHOOLS TO PARTICIPATE IN THE CITY’S OPEB TRUST FUND 2 localities to accrue funds for post-employment benefits or health benefits for both Salem’s present and future retirees; he stated that the OPEB Trust Fund will accomplish the requirement in the least costly method available to the City; he further stated that the OPEB Trust was previously approved by Council at its June 8, 2009, meeting; he stated that approval of this resolution will allow the School Board to participate in the City’s OPEB Trust, which will save a considerable amount of money in terms of administrative costs and the establishment of an account; and WHEREAS, Mayor Foley questioned if other localities are allowing their school boards to participate in its OPEB Trust; and WHEREAS, the Director of Finance stated that the first localities that have established OPEB Trust Funds have included their school board in the trust funds; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Resolution 1140 was hereby adopted allowing Salem City School to participate in the City’s Other Post Employment Benefits (OPEB) Trust Fund: (HERE SET OUT RESOLUTION 1140) – the roll call vote: all present – aye. Mayor Foley requested that Council consider adopting Resolution 1141 amending electric utility rates to become effective September 1, 2009; and WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance Committee, reported that the cost to purchase power has increased 8 percent annually and is anticipated to continue in 2009-10; with this in mind, the power cost adjustment (PCA) for the coming year would be $0.01300; rather than continually increase the PCA, it is prudent to periodically review the entire rate structure and update it to reflect the current co st of conducting business; the Electric and Finance Departments, along with the City’s consultants, GDS Associates, Inc., conducted the study with the goal of incorporating all prior year increases in PCA and the estimated increase for 2010 back to base rates; the Committee reviewed Resolution 1141 and recommends adoption reducing the PCA back to $0.0000 with an overall average increase for all rate classes of 10.62 percent; these rates will be slightly less than those now pending before the SCC submitted by Appalachian Power; this increase would be effective on all bills ITEM 2 RESOLUTION 1141 ADOPTED AMENDING ELECTRIC UTILITY RATES (EFFECTIVE SEPTEMBER 1, 2009) 3 rendered on or after September 1, 2009; and WHEREAS, the Director of Finance stated that the City had a contract with Cinergy to purchase electricity at very cheap electric rates; he stated that the contract expired and a 20-year contract with Appalachian Power/AEP was entered into; he further stated that the rate the city pays for electricity can be affected by all of the things AEP is currently experiencing (i.e. coal fired powered plants, pollution controls, etc.) that affect the cost of producing power, generating power and selling power to the city; he stated that when the contract was entered into five years ago, the electric rates were redone to bring the rates up to date with the original costs and added the Power Cost Adjustment (PCA) factor into the rates so that each year the amount of increase for the cost of power that Appalachian sends to the city can be added to the retail rates charged to the city’s customers; he stated that the PCA factor for this year would have increased to 1.3 cents per KWA; he stated that the overall rate increase for all rate classes is 10.6 percent; he further stated that 8 percent of the increase would have happened regardless because the wholesale rate for electricity increased 8 percent this year and has increased 8 percent each year since implementing the contract with AEP; he stated that the way the rates are structured is not changing, the base power cost adjustment factor will be included in the base rates; he further stated that AEP currently has two rate increases pending before the State Corporation Commission—one was filed last fall concerning environmental issues and fuel, and another one was filed several months ago that affects the rest of the cost of doing business; if the State Corporation Commission grants AEP’s request for rate increases, then the City’s electrical rates will be approximately 5 percent below AEP’s rates; if the SCC does not grant AEP’s request for rate increases, then the city’s electric rates will be very comparable to what AEP charges; and WHEREAS, Councilwoman Garst questioned when AEP’s rate increase would take effect; and WHEREAS, the Director of Finance stated that some rates already have been implemented, subject to refund; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Resolution 1141 amending electric utility rates was hereby adopted: (HERE SET OUT RESOLUTION 1141) -- the roll call vote: all present – aye. 4 Mayor Foley requested that Council receive the report and consider awarding contract for the Roanoke River Greenway Phase 2A project ; and WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance Committee, reported that the Committee reviewed the Request for Bid and the two accepted bids for the Roanoke River Greenway Phase 2A project (from Colorado Street bridge to Rotary Park on Route 419) and recommends awarding the contract to Allegheny Construction Company, contingent upon VDOT approval, in the amount of $470,566.00; and WHEREAS, Councilwoman Garst asked the City Engineer to explain how funding for the project was obtained; and WHEREAS, the City Engineer stated that most of the project will be paid for by enhancement funds previously received and the Commonwealth Transportation Board has annually added small amounts to the money allocated for the greenway; he stated that the city applied for and received $600,000 in stimulus money from the government to apply toward Phase 3A of the greenway, which would be from the Moyer Complex to the park across from the Water Treatment Plant (approximately 1.4 miles); the stimulus money is money to be used for the greenway that does not have to be matched by the city; and WHEREAS, Vice Mayor Givens stated that the City is also planning to build a bridge over the creek that comes into the Roanoke River below the Colorado Street bridge; and WHEREAS, the City Engineer stated that the City has reserved that project as an option to use city forces, which provides the City an opportunity to provide in-kind, match, and material and cash match to the overall project; the City must provide a 20 percent match for projects utilizing enhancement funds, which can be personnel time, usually at a significant cost-savings for the City; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the contract for the Roanoke River Greenway Phase 2A project was hereby awarded to Allegheny Construction Company, contingent upon VDOT approval, in the amount of $470,566.00 -- the roll call vote: all present – aye. Mayor Foley requested that Council consider adopting Resolution 1142 authorizing the City Manager to execute certain contracts; and ITEM 4 RESOLUTION 1142 ADOPTED AUTHORIZING THE CITY MANAGER TO EXECUTE CERTAIN CONTRACTS ITEM 3 CONTRACT FOR ROANOKE RIVER GREENWAY PHASE 2A PROJECT AWARDED TO ALLEGHENY CONSTRUCTION COMPANY, CONTINGENT UPON VDOT APPROVAL, IN THE AMOUT OF $470,566.00 5 WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance Committee, reported that the Committee reviewed and recommends adopting Resolution 1142 amending the Project Development and Administration Agreement by the City of Salem Roanoke River Greenway Project of February 6, 2002, as follows: 1. Revise Appendix A to show $232,000 allocated to this project by the Commonwealth Transportation Board in 2007, and the $600,000 in ARRA Enhancement Funds recently allocated to this project for the construction of Phase 3; 2. Change the time limit for project completion to October 1 , 2011; and 3. All other terms and conditions of the original agreement shall remain unchanged; the resolution further resolves that the City Manger will have full authority to execute project administration agreements for any approved revenue sharing, enhancement, locally administered, and any other VDOT/locality projects; ON MOTION MADE BY COUNCILWOMAN GARST, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Resolution 1142 was hereby adopted authorizing the City Manager to execute certain contracts: (HERE SET OUT RESOLUTION 1142) -- the roll call vote: all present – aye. Mayor Foley requested that Council receive a report regarding the Byrne JAG Recovery Fund (Byrne Grant) application; and WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance Committee, reported that the Committee accepted and reviewed the report concerning the Byrne JAG Recovery Fund (Byrne Grant) application; he stated that fund is money that will be allocated to the police department for the use of buying updated radio equipment; the current equipment being used dates back to the mid-1990s; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, the report concerning the Byrne JAG Recovery Fund (Byrne Grant) application was hereby accepted and filed -- the roll call vote: all present – aye. ITEM 5 REPORT RECEIVED CONCERNING BYRNE JAG RECOVERY FUND APPLICATION 6 Mayor Foley requested that Council consider appointments to fill vacancies on various boards and commissions; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, James W. Thweatt, Jr. was hereby reappointed to the Personnel Board for a two-year term, said term will expire July 31, 2011; J. Chris Conner and Margaret Humphrey were hereby reappointed to the Personnel Board for two-year terms, said terms will expire August 12, 2011 -- the roll call vote: all present – aye. There being no further business to come before the Council, the same on motion adjourned at 7:52 p.m. ITEM 6 JAMES W. THWEATT, JR. ; J. CHRIS CONNER, AND MARGARET HUMPHREY WERE HEREBY REAPPOINTED TO THE PERSONNEL BOARD