HomeMy WebLinkAbout3/23/2009 - City Council - Minutes - RegularUNAPPROVED MINUTES
COUNCIL MEETING
March 23, 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 March 9, 2009, 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; Charles E. Van Allman, City
Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City
Attorney; and the following business was transacted:
The minutes of the March 9, 2009, work session and regular meeting of
Council were approved as written.
The report by the City Manager of the City’s activities for February 2009
was received and ordered filed.
The report by the Director of Finance of the City’s financial status for an
eight-month period ending February 28, 2009, was received and ordered filed.
Mayor Foley reported that this date and time had been set to hold a
public hearing and consider an ordinance on first reading rezoning the property
of Marvin R. Clark, Whisman-Via Properties LLC, and Joseph Alfred and Treva Via
Mullins Estate, property owners, located at 1705 and 1719 Electric Road (Tax
Map #’s 258-3-9 & 17) and the rear portion of a parcel located at 1536 Cliffview
Drive (Tax Map #258-3-8) from RSF Residential Single Family District to HBD
Highway Business District with proffered conditions; and
WHEREAS, the request was continued from the January 26, 2009,
meeting, and has been withdrawn by the petitioners without prejudice;
THEREUPON, request was withdrawn without prejudice.
Mayor Foley reported that this date and time had been set to hold a
public hearing and consider amending the 2008-2009 budget; notice of such
public hearing was published in the March 19, 2009, issue of the Salem Times
Register, a newspaper published and having general circulation in the City of
Salem; and
ITEM 1
REQUEST
WITHDRAWN BY
PETITIONERS
WITHOUT
PREJUDICE
ITEM 2
2008-2009 MID-
YEAR BUDGET
ADJUSTMENTS
2
WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance
Committee, reported that each year amendments to the current year budget are
necessary; this year, however, is extraordinarily unique because the downturn in
the national, state, and local economies is so dramatic that it has required us to
look at the fundamentals of the City Budget; the results of the economic decline
are far reaching, and will affect fiscal years 2008-09 and 2009-10; the
amendments adjust the current year and set the stage for the 2009-10 budget to
be presented in late April; the Committee thoroughly reviewed the amendments
presented by City staff and has noted a decline in key revenue sources such as
Personal Property, Machinery and Tools, Sales Tax, Franchise Tax, and Interest
Income which total $1,515,000; a list of budget amendments which includes
deferral of capital outlay, savings from personnel vacancies, solid waste disposal
and health insurance savings are expected to offset the revenue decline in the
current year; the Committee recommends approval of the mid -year budget
amendments as presented and concurrence with the action of the School Board
regarding its budget amendments; and
WHEREAS, Vice Mayor Givens commended City staff for their efforts in
reviewing every aspect to determine what can be trimmed from the budget; and
WHEREAS, Mayor Foley also commended City staff and the City Manager
for their diligence throughout the year; and
WHEREAS, no one appeared in opposition to the proposed mid-year
budget amendments;
ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY
COUNCILWOMAN JOHNSON, AND DULY CARRIED, the 2008-2009 Mid-Year
Budget Amendments are hereby approved as follows:
(HERE SET OUT MID-YEAR BUDGET AMENDMENTS)
– the roll call vote: all – aye.
Mayor Foley requested that Council consider appointments to fill
vacancies on various boards and commissions;
THEREUPON, no action was taken.
ITEM 3
NO ACTION TAKEN
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Mayor Foley requested that Council consider approval of the lease on the
Salem Memorial Baseball Stadium between the Salem Red Sox and the City of
Salem; and
WHEREAS, the City Manager appeared before the Council and stated that
the lease to be considered with the Red Sox organization is essentially a
continuation of the existing lease; he stated that there are a few minor changes
included in the lease document, but it is basically the same set of terms; he
further stated that it is a two-year term lease in an effort to allow time to
develop a longer term lease the City hopes to have with the Red Sox/Fenway
Sports Group organization within a year; he stated that the second year of the
proposed lease agreement may not be necessary if a long-term agreement is
reached with Fenway Sports Group; he further stated that the proposed lease
gives the Red Sox organization twenty-five (25) dates over the two-year period
to hold events at the baseball stadium outside of the regular baseball season; he
stated that if the Red Sox wanted to hold a concert at the baseball stadi um, the
ability to do so is available as long as City Council approves the event; and
WHEREAS, Councilwoman Garst questioned if Council could veto the
event or the date; and
WHEREAS, the City Manager stated that Council could veto either the
event or the date; he stated that if the events planned at the baseball stadium
are held as planned, the City will receive ten percent of the gross receipts from
the ticket sales, as well as the concession sales outside of the tax revenue
generated from the event; he stated that the rental amount for the baseball
stadium is the same as in the previous contract ($22,500 per year paid in five -
monthly installments of $4,500); also the same as in the previous agreement:
$500 per month lease of the office building, one percent of the gross ticket
receipts less the admissions tax, ten percent of the gross ticket receipts will be
paid to the City if more than $800,000 in revenue is generated per year in ticket
receipts; he stated that the $800,000 amount has been in the contract for a
while and has not been reached yet; it is not anticipated for ticket sales to reach
the $800,000 mark this year, but the goal is to reach that amount by the second
year; he also stated that in no circumstance can the cumulative rent be less than
the previous year’s rent; also in the lease agreement is the commitment to do
approximately $300,000 worth of improvements to the ballpark over the term of
this lease; he further stated that contracts have already been awarded for some
painting and sign work at the ballpark, which has cost approximately $150,000 to
$160,000 in the current year and the remainder of the $300,000 is subject to
appropriation for next year; he stated that projects will be presented to the City
and the City decides if the projects are appropriate and if it will spend any of the
ITEM S1
LEASE APPROVED
BETWEEN
FENWAY SPORTS
GROUP/SALEM
RED SOX AND THE
CITY OF SALEM
4
remaining money committed for improvements; and
WHEREAS, Councilman Jones questioned if the money will come from the
General Fund of the budget; and
WHEREAS, the City Manager stated that the money will come from the
General Fund of the budget; he stated that all money generated from the
ballpark goes into the General Fund as well; and
WHEREAS, Vice Mayor Givens questioned if there were going to be any
major changes structurally or seating wise to the ballpark; and
WHEREAS, the City Manager stated that there will not be any structural
changes to the ballpark; however, large coverings will be placed over sections of
the general admission seating which will reduce the seating capacity of the
ballpark; he further stated that some formal language has been added to the
agreement stating that the City has the ability and the right to hold events during
the year at the ballpark; he stated that the event has to be agreed upon mutually
and cannot conflict with a date needed for the baseball season; and
WHEREAS, Councilwoman Johnson questioned if the City would have to
staff the extra events held by the Red Sox; and
WHEREAS, the City Manager stated that the City would not staff any of
the extra events held at the ballpark by the Red Sox/Fenway Sports Group; he
stated that a police presence is required at the events and the City would be paid
to provide the police presence at the events; and
WHEREAS, Councilman Jones questioned if the City could hold events at
the ballpark during the baseball season; and
WHEREAS, the City Manager stated that the City could hold an event
during the season as long as it does not conflict with a regularly scheduled game
or a make-up game; and
WHEREAS, Councilman Jones questioned if Fenway Sports Group is
interested in holding events with the City; and
WHEREAS, the City Manager stated that he felt like Fenway Sports Group
was interested in holding events together with the City; he stated that FSG is
interested in finding new and different ways to promote the Red Sox and the
ballpark; and
5
WHEREAS, a discussion was held regarding possible events that could be
held at the ballpark; and
WHEREAS, the City Manager stated that the highlights of the lease
agreement have been discussed and requested that Council grant permission to
execute the lease agreement so that the agreement will be in place prior to the
beginning of the baseball season;
ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY
COUNCILWOMAN GARST, AND DULY CARRIED, the agreement between the City
of Salem and Fenway Sports Group/Salem Red Sox for a two -year lease of the
baseball stadium was hereby approved and the City Manager is authorized to
execute said agreement – the roll call vote: all – aye.
Mayor Foley requested that Council consider eliminating the April 13,
2009, Council meeting due to the Easter holiday; and
WHEREAS, the City Manager stated that a work session or a meeting will
be held if necessary;
ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY
COUNCILMAN JONES, AND DULY CARRIED, the April 13, 2009, Council meeting
was hereby cancelled due to the Easter holiday – the roll call vote: all – aye.
There being no further business to come before the Council, the same on
motion adjourned at 7:49 p.m.
ITEM S2
APRIL 13, 2009,
COUNCIL MEETING
CANCELLED DUE
TO THE EASTER
HOLIDAY