Loading...
HomeMy WebLinkAbout2/14/2022 - City Council - Agenda -RegularCity Council Meeting AGENDA Monday, February 14, 2022, 6:30 PM Work Session 5:45 P.M. Parlor A, Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia 24153 Regular Session 6:30 P.M. Community Room, Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia 24153 WORK SESSION 1.Call to Order A.Roll Call 2.Consent Agenda 3.New Business A.Discussion Items Discussion of Draft Chapter 106 and Chapter 78 Amendments to City Code 4.Adjournment REGULAR SESSION 1.Call to Order 2.Pledge of Allegiance 3.Bid Openings, Awards, Recognitions 4.Consent Agenda A.Citizen Comments Comments from the public, limited to five minutes, on matters not already having a public hearing component that same meeting. The following have signed up to speak at this meeting: 1) Patricia Clark, 318 Maple Street - Requesting sign to restrict vehicles from parking inappropriately on this street 2) Alexander Stein, 506 Main Street - Mandates AMENDED AGENDA 3) C ynthia Munley, 425 Roanoke Boulevard - Recognizing and employing citizens' love for Salem B.Minutes C onsider acceptance of the J anuary 24, 2022 Work Session and Regular Meeting minutes. C .F inancial Reports C onsider acceptance of the Statement of Revenues and Expenditures for the six months ending December 31, 2021. 5.Old Business A.Amendment to the Zoning Ordinance C onsider ordinance on second reading for rezoning the property of Scott A. Boggs, property owner, located at 407 East Burwell Street (Tax Map # 120-1-5) from RB Residential Business District to T BD Transitional Business District. (Approved on first reading at the January 24, 2022 meeting.) B.Amendment to the Zoning Ordinance C onsider ordinance on second reading for the request of Union Plaza, LLC , contract purchaser, and the C ity of Salem, property owner, for rezoning the property located at 630 Union Street (Tax Map # 160-11-2) from HM Heavy Manufacturing District to HBD Highway Business District. (Approved on first reading at the January 24, 2022 meeting.) C .Amendment to the City Code - Chapter 86 C onsider ordinance on second reading amending Chapter 86 Traffic and Vehicles, Article XII Dockless Mobility Operations; Shared Mobility Systems, of T he C ode of T he City of Salem, Virginia to establish a pilot program for shared mobility devices. (Approved on first reading at the J anuary 24, 2022, meeting.) 6.New Business A.Use Not P rov ided F or P ermit C A N C EL L ED A S TH E P R O P ERTY O WN ER H A S WI TH D R AWN TH EI R R EQ U ES T Hold public hearing to consider the request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map # 165-4-2.1. (As advertised in the December 23 and 30, 2021 issues of the Salem Times-Register). (Planning Commission recommends approval with conditions: see pages 3-7 of Planning Commission minutes) (Continued from J anuary 10, 2022 C ouncil Meeting.) STA FF REPO RT B.P ublic I mprov ement Bonds Hold a public hearing and consider adoption of ordinance to authorize the issuance and sale of general obligation public improvement bonds in an aggregate principal amount not to exceed $2,350,000. (As advertised in the J anuary 20 and J anuary 27, 2022 issues of the Salem Times Register.) Audit - Finance Committee C .General Obligation P ublic I mprovement B onds C onsider adoption of Resolution 1419 authorizing the issuance, sale and award of General Obligation Public Improvement Bonds, Series 2022. Audit - Finance C ommittee D.Appropriation of F unds C onsider request to amend the School Operating Fund and School Grants Fund budgets as approved by the School Board on January 11, 2022. Audit - Finance E.Appropriation of FundsConsider request to appropriate grant funds awarded by Community Foundation. Audit - Finance Committee F.Appropriation of Funds Consider request to appropriate proceeds from the sale of equipment. Audit - Finance Committee G.Taxicabs Consider setting the date for a public hearing in accordance with Section 98-94 of THE CODE OF THE CITY OF SALEM, VIRGINIA, for the issuance of Certificates of Public Convenience and Necessity for the next twelve (12) months. (Suggest March 14, 2022). H.Olde Salem Days 2022 Consider adoption of Resolution 1418 closing Main Street on Saturday, September 10, 2022. I.Street Acceptance Consider adoption of Resolution 1420 requesting the Commonwealth Transportation Commissioner and the Commonwealth Transportation Board to approve and accept certain new streets for maintenance payments. J.Amendment to Miscellaneous Fees Consider adoption of Resolution 1421 amending Miscellaneous Fees for 2021-2022. K.Boards and Commissions Consider appointments to various boards and commissions. 7.Closed Session A.Closed Session Hold a closed session in accordance with Sections 2.2-3711 A (3) and (6) of the 1950 Code of Virginia as amended for discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body, specifically the acquisition of real property; and for discussion or consideration of the investment of public funds where competition or bargaining is involved, where, if made public initially, the financial interest of the government unit would be adversely affected. 8.Adjournment Audit-Finance Committee Meeting, February 10, 2022, 4:00 p.m., Council Chambers, City Hall, 114 N. Broad Street, Salem City Council Meeting MINUTES Monday, January 24, 2022, 6:30 PM Work Session 6:00 P.M. Parlor A, Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia 24153 Regular Session 6:30 P.M. Community Room, Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia 24153 WORK SESSION 1.Call to Order A.Roll Call A work session of the Council of the City of Salem, Virginia, was held in Parlor A at the Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia, on January 24, 2022, at 6:00 p.m., there being present the following members of said Council to wit: Renée Ferris Turk, Mayor; James W. Wallace, III, Vice-Mayor; Council members; Byron Randolph Foley, William D. Jones, and John Saunders; 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; Crystal Williams, Assistant to the City Manager; Laura Lea Harris, Deputy Clerk of Council; and Chuck Van Allman, Director of Community Development; and the following business was transacted; Mayor Turk reported that this date, place , and time had been set in orderfor the Council to hold a work session; and 2.New Business A.Discussion Items 1)Marijuana Retail Sales Regulations Discussion WHEREAS, Mary Ellen Wines, Zoning Administrator, shared points of interest in reference to current marijuana market statistics. A couple of the facts given were that in 2020, the illicit marijuana market in Virginia was estimated at $1.8 billion in illegal sales and that Virginia has the 4th largest market in the nation. Proposed allowances that are part of proposed legislation were shared. Some additional facts that were shared were that the state will cap the number of licenses for specific purposes and that the State Board will notify the City Manager of any applications received and the City will have 30 days to respond with objections or concerns. The Cannabis Control Act must be reenacted in 2022 to become effective. The Virginia Cannabis Control Authority may allow certain persons to be granted or have Item #4B Date: 2/14/2022 interest in a license in more than one of the license categories. State Code Section 4.1-629 states that Council may, by resolution, petition the circuit court for a referendum on the question of whether retail marijuana stores should be prohibited. Details on this were explained as well as how current House Bill 43 would impact a referendum. Retail sales are slated to begin on January 1, 2023. Additional information and regulations were explained and discussed. Zoning options were presented in the eventuality that the General Assembly allows the retail sale of marijuana. Use and Design Standards were also presented as well as potential allowable adult business locations in the City of Salem. Information was also presented by Ms. Wines in relation to signage, sales tax and business licenses, personal privilege permits, and current House and Senate Bills. Council discussed the information that was presented, and Ms. Wines answered questions that were posed; and 3. Adjournment WHEREAS, there being no further business, Mayor Turk adjourned the meeting at 6:20 p.m. 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 John Saunders; 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 welcomed from the Salem Police Department Senior Police Officer Rachel Frith and the four new officers that have completed the academy and are currently in the middle of their Field Training period. Officer Frith introduced officers Z. C. Pinkston, W.P. Ey, M.A. Phillips, and B.C. Carroll and stated they were due to finish their training in February. Mayor Turk expressed appreciation for their willingness to go through the training and commit their careers to protecting the citizens of Salem in these challenging and difficult times. 4. Consent Agenda A. Citizens Comments Comments from the public, limited to five minutes, on matters not already having a public hearing component that same meeting. The following have signed up to speak at this meeting: 1) Cynthia Munley, 425 Roanoke Boulevard - Citizen Input 2) Tessa Warner, 745 Virginia - Tree Planting Cynthia Munley, 425 Roanoke Boulevard, appeared before Council. She spoke on the power of tapping citizen input and the need for respecting citizen input by Council. Mrs. Munley requested that Council set up volunteer citizen committees to encourage citizens to work on various issues, problems, and planning and contribute to citizens feeling comfortable coming forth. Tessa Warner, 745 Virginia Avenue, was the last citizen to address Council. She expressed concerns related to climate warming. She spoke of the benefit of planting trees to address the climate issues and requested that Council vote to set up a volunteer citizen tree committee. B. Minutes Consider acceptance of the January 10, 2022 Work Session an d Regular Meeting minutes. The minutes were accepted as written. 5. Old Business 6. New Business A. Amendment to the Zoning Ordinance Hold public hearing and consider ordinance on first reading for rezoning the property of Scott A. Boggs, property owner, locat ed at 407 East Burwell Street (Tax Map # 120-1-5) from RB Residential Business District to TBD Transitional Business District. (As advertised in the January 6 and 13, 2022 issues of the Salem Times-Register.) Planning Commission recommends approval; see pages 3-4 of Planning Commission minutes). STAFF REPORT Mr. Van Allman explained that the petitioner has applied for a 20 square foot sign. He shared that this Residential Business District was previously a light commercial district and over time has become more residential in nature and that the sign allowance has been reduced to reflect this. Only a 6-foot square sign is allowed at this time. The petitioner has requested to rezone the property to TBD, Transitional Business District, which would allow for the larger sign. Mayor Turk opened the public hearing. No one came forward to speak. Mayor Turk closed the public hearing. Randy Foley motioned to adopt ordinance on first reading for rezoning the property of Scott A. Boggs, property owner, located at 407 East Burwell Street (Tax Map # 120-1-5) from RB Residential Business District to TBD Transitional Business District. William Jones seconded the motion. Ayes: Foley, Jones, Saunders, Turk, Wallace B. Amendment to the Zoning Ordinance Hold public hearing and consider ordinance on first reading for the request of Union Plaza, LLC, contract purchaser, and the City of Salem, property owner, for rezoning the property located at 630 Union Street (Tax Map # 160-11-2) from HM Heavy Manufacturing District to HBD Highway Business District. (As advertised in the January 6 and 13, 2022 issues of the Salem Times- Register.) Planning Commission recommends approval; see pages 4-5 of Planning Commission minutes). STAFF REPORT Mr. Van Allman noted that this parcel is clos e to 4th Street and Moyer Sports Complex and the Greenway. He further clarified that this is behind the Shell Station and former Little Caesar's. In order to expand commercial options in this area, the property needs to be rezoned from Heavy Manufacturing District to Highway Business District to accommodate more viable commercial use. The proposed development consists of two 6,000 square foot multi-tenant commercial buildings with a shared parking area between them. The parcel has been filled in order to raise above the flood plain level. Mayor Turk opened the public hearing. Cynthia Munley, 425 Roanoke Boulevard, came forward and expressed concern about this property being commercial. She spoke of potential for this property as an entrance to the Moyer field area, which would have added municipal value. No other speakers came forward. Mayor Turk closed the public hearing. Randy Foley motioned to adopt ordinance on first reading for the request of Union Plaza, LLC, contract purchaser, and the City of Salem, property owner, for rezoning the property located at 630 Union Street (Tax Map # 160-11-2) from HM Heavy Manufacturing District to HBD Highway Business District. William Jones seconded the motion. Ayes: Foley, Jones, Saunders, Turk, Wallace C. Special Exception Permit Hold public hearing to consider the request of 2936 Salem Inc., dba Sunshine Spa and 217 NY Ave Corp, property owner, fo r the issuance of a Special Exception Permit to allow a massage parlor at 2936 West Main Street (Tax Map # 210-1-2). (As advertised in the January 6 and 13, 2022 issues of the Salem Times-Register.) Planning Commission recommends denial; see pages 5-6 of Planning Commission minutes). STAFF REPORT Mayor Turk noted that information had been provided from the Planning Commission meeting in reference to this item for review. Mr. Van Allman gave a brief explanation for this item. Sunshine Spa originally applied for a business license for acupuncture. After further research, it was determined that they offer full body massage. Without the benefit of a massage therapist license issued by the Virginia Board of Nursing, the business is considered a massage parlor. A massage parlor requires a Special Exception permit in the Highway Business District. If the permit is approved, the petitioner will then need to apply for the massage parlor license through the Police Department. Mayor Turk opened the public hearing. Liz Bowles, 2248 Mt. Regis Drive, appeared before Council and expressed concerns about having a massage parlor in Salem. Cynthia Munley, 425 Roanoke Boulevard, requested clarification of the original application by the petitioner, the location of the busin ess, and the history of this business in this location. Mayor Turk closed the public hearing. Randy Foley motioned to deny the request of 2936 Salem Inc., dba Sunshine Spa and 217 NY Ave Corp, property owner, for the issuance of a Special Exception Permit to allow a massage parlor at 2936 West Main Street (Tax Map # 210-1-2). William Jones seconded the motion. Ayes: Foley, Jones, Saunders, Turk, Wallace D. Amendment to City Code - Chapter 106 Hold public hearing and consider ordinance on first reading amending Chapter 106, Zoning, Article IV. Development Standards, Section 106 -400 pertaining to site plan review. (As advertised in the January 6 and 13, 2022 issues of the Salem Times-Register.) Planning Commission recommends approval; see pages 6-7 of Planning Commission minutes). STAFF REPORT Mary Ellen Wines, Zoning Administrator, 21 South Bruffey Street, presented proposed changes to Section 106 -400 of the Zoning ordinance regarding Site Plan Review to Council. The proposed amendment includes the addition of the minor site plan. Typically, a full-size site plan is 15 - 20 pages and includes stormwater management and major utility changes and requires a minimum of a $500 fee. In instances of small-scale redevelopment, such as interior alterations only or small additions, a full plan is not needed. The minor site plan is being introduced in the interest of helping small business owners. A minor site plan requiring only a page or two could be submitted. This would typically be depicting items such as landscaping and parking. This would require a smaller fee of $150. In addition, staff proposes the requirement of elevation drawings to be included with a site plan submittal. This will assist staff in the review of proposed development. Typically, elevations are included in building permit applications. Roanoke City requires elevation drawings at some point during their site plan review process and Roanoke County requires them at the building permit level. Some housekeeping items in this Code section include the allowance of agreements in lieu of plan, approved by the City Engineer, for sites that result in a 5,000 - 9,999 square foot increase in impervious surface area of the site. This was done in practice but is not explicitly stated in the Code. The second housekeeping item is amending the responsible party from the Director of Planning and Development to the Zoning Administrator. This just states that the site plan review process is overseen by the Administrator. Site plans are reviewed and accepted by each corresponding department or division throughout the process. The last housekeeping item is the format of the site plan submission. Over the course of the last couple of years, Community Development has learned that digital submissions work quite well. This C ode change applies to digital submissions and the scale and type of documents submitted for review. Ms. Wines opened the floor to questions. Mr. Foley explained that this is not replacing the responsible party but just clarifying this role as the position of Director of Planning and Development is a position that no longer exists. Mayor Turk opened the public hearing. John Breen, 142 Bogey Lane, spoke before Council. He expressed concern about the clarity of the language used in the proposed amendment. He expressed concern that the Code needs to be precise and specific in all of the details. He also spoke on the need for the city to have the City Attorney review all changes to Code and ordinances prior to approval. Mr. Breen also spoke with concern about consistency in having public review prior to final decisions. Liz Bowles, 2248 Mt. Regis Drive, also appeared before Council. She expressed concern at the amount of responsibility that was being put in the hands of one individual and the need to have the involvement of the City Engineer and the City Attorney's review as well. She stated that even small plans are important, and she would like to see this item revised. There were no further comments. Mayor Turk closed the public hearing. Mr. Wallace requested that Mr. Guynn respond to Mr. Breen's comments. Mr. Guynn stated that he was comfortable with the proposed amendment and that it was important to read the material in its entirety. Mr. Guynn confirmed that he had reviewed the proposed changes that staff had authored. Mayor Turk asked for confirmation that Ms. Wines was in communication with the City Engineers in approving these site plan reviews. Mr. Van Allman stressed the communication and collaboration that occurred within the department in the process and that Ms. Wines is the person that is making sure that all of the boxes on the checklist are being comple ted in the process. He emphasized that representatives from all involved divisions are included in the process and review the plans and provide comments. Mr. Wallace asked if there is a written procedure that is followed when presented with a site plan. Mr. Van Allman said that there is basically a checklist that is followed. Mr. Wallace asked if this is a written document. Mr. Van Allman said that there is a procedure in place that needs to be updated as the City Planner is no longer a position. He stressed again the procedure that is followed and that at times there are multiple reviews. Randy Foley motioned to adopt the ordinance on first reading amending Chapter 106, Zoning, Article IV. Development Standards, Section 106 -400 pertaining to site plan review. There was no second. The motion failed. Mayor Turk asked if this was an issue that needed to be continued to a Work Session. Bill Jones motioned to continue this item to a Work Session to try to get some more answers to questions that were posed ton ight. He also emphasized the quality of the work of Mr. Van Allman, Ms. Wines, and the City Engineer as well as City Staff and stated that we need to put our confidence in them to do their jobs. He also mentioned the job that the Streets Department had done with snow removal even while being shorthanded. Mr. Foley stated that we need to not get tangled up with titles and trust staff with what the roles that are delegated. Mr. Wallace stated that he agreed but just wanted to make sure that there was a documented procedure that was being followed in this process. As this is a big process it is important to have a checklist that is being followed to ensure that all steps are being followed. Mr. Taliaferro confirmed that there is a three-page checklist online. John Saunders seconded the motion and requested that a Work Session be set up to walk through the entire procedure so that Council knows ex actly what is going on. Mr. Taliaferro suggested that there is not a time crunch and if Council would like to continue both this item and the next one, staff could set up a Work Session and go over all of this information in detail. William Jones motioned to amend motion to continue New Business Items 6D and 6E to March 14, 2022. John Saunders seconded the motion. Ayes: Foley, Jones, Saunders, Turk, Wallace E. Amendment to City Code - Chapter 78 Hold public hearing and consider ordinance on first reading amending Chapter 78, Subdivisions, Article I Generally, Sections 78-103 and 78-105, Article II Administration, 78-201, Article III Definitions, Section 78-300, Article IV Review of Plats, Sections 78-402, 78-403, 78-406, 78-408, 78-416, and 78- 421.4 of the CODE OF THE CITY OF SALEM, VIRGINIA pertaining to the review of subdivision site plans and plats. (As advertised in the January 6 and 13, 2022 issues of the Salem Times-Register.) Planning Commission recommends approval; see pages 7-8 of Planning Commission minutes). STAFF REPORT Mr. Breen requested to speak on this item as he came prepared to speak at the public hearing that was advertised for this date. Mayor Turk opened the public hearing. John Breen, 142 Bogey Lane, expressed the need to define the term "agent" in regard to Section 78 as well as what the qualifications are. He sees that different agents could potentially need to be applied in different situations that that it is important and make sure that this definition matches the individual that has those qualifications. He emphasized the importance of having a process of review and re-review at different levels and how this affords protection to any one individual. He also expressed concern that citizens are not able to express opinions and ask questions in Work Sessions. Mayor Turk closed the public hearing as no one else came forward to speak on this topic. The motion had already been presented and continued along with New Business Item 6D. F. Amendment to City Code - Chapter 86 Consider ordinance on first reading amending Chapter 86 Traffic and Vehicles, Article XII Dockless Mobility Operations; Shared Mobility Systems, of The Code of The City of Salem, Virginia to establish a pilot program for shared mobility devices. Mr. Guynn explained that the State Legislature determined several years ago that all localities must allow scooters. As a result, at that time, the City passed an ordinance to regulate and put in place some conditions under which scooters would be allowed. At the time, no provision was included for a pilot program. The City has now been approached by a company that is seeking to place scooters here. In reviewing ordinances across the state, quite of few of them include pilot programs. The have been successful in managing the rollout of scooters. A pilot program would allow the City to have more flexibility in managing the program and would provide options for terminating the program if the regulations were not being followed. Mayor Turk restated that the City is required by the State legislature to allow scooters and that a pilot program would enable Salem to set some guidelines and to make sure that the guidelines were being followed and to have something to stand on if the guidelines are not being followed. If the program goes well, the pilot program would also provide guidance for continuing in the future. Mayor Turk shared a few of the guidelines: there will be a restricted area in which the scooters will be allowed, they will cut off if they try to leave the restricted area, they will be corralled where they should be parked, and they will be confiscated, and the company will be charged if they are not corralled correctly. The guidelines provided with the pilot program give the City some measure of control in the program. Randy Foley motioned to adopt on first reading the ordinance amending Chapter 86-Traffic and Vehicles, Article XII Dockless Mobility Operations; Shared Mobility Systems, of The Code of The City of Salem, Virginia, to establish a pilot program for shared mobility devices. William Jones seconded the motion. Ayes: Foley, Jones, Saunders, Turk, Wallace 7. Adjournment The meeting was adjourned at 7:28 p.m. Schedule A Current Year Current Year % of Prior Year Budget Year to Date Budget Year to Date Variance Revenues: Beginning Balance 7-1-21 2,568,051$ -$ 0%-$ -$ General Property Taxes 40,605,600 15,807,919 39%15,184,951 622,968 Other Local Taxes 22,027,515 7,854,523 36%6,241,189 1,613,335 Permits and Licenses 337,800 238,769 71%155,408 83,361 Fines and Forfeitures 61,000 34,409 56%21,131 13,278 Revenue from Use of Money and Property 867,809 350,840 40%352,887 (2,047) Charges for Services 3,354,271 1,470,343 44%1,270,055 200,289 Payment in Lieu of Taxes from Electric Fund 3,160,000 1,580,000 50%1,580,000 - Payment in Lieu of Taxes from Water Fund 181,000 89,739 50%90,498 (760) Miscellaneous Revenue 266,500 148,437 56%123,182 25,256 Non-Categorical Aid 3,688,907 504,980 14%543,457 (38,477) Shared Expenses 1,558,777 599,696 38%564,635 35,061 Categorical Aid 8,176,237 3,536,898 43%6,347,144 (2,810,246) Non-Revenue Receipts 60,224 68,719 -8,578 60,141 Total Revenues 86,913,691 32,285,273 37%32,483,115 (197,842) Expenditures: General Government 7,495,980 3,825,277 51%4,147,040 (321,763) Judicial Administration 2,475,695 1,281,601 52%1,250,981 30,621 Public Safety 18,788,370 9,817,283 52%9,859,379 (42,096) Public Works 12,047,634 4,880,754 41%9,074,663 (4,193,909) Health and Welfare 5,177,833 2,251,461 43%2,085,636 165,825 Education 23,971,731 13,807,871 58%13,481,909 325,961 Parks, Recreation and Cultural 6,416,813 2,834,491 44%2,754,313 80,178 Community Development 2,803,195 1,595,012 57%2,077,348 (482,336) Non-Departmental 6,325,925 2,484,272 39%2,437,253 47,019 Contingency 1,310,515 - 0%- - Contingency for Economic Dev. Opportunities 100,000 - 0%- - Total Expenditures 86,913,691 42,778,023 49%47,168,524 (4,390,501) Revenues Over/(Under) Expenditures -$ (10,492,750)$ (14,685,409)$ 4,192,659$ City of Salem, Virginia General Fund Statement of Revenues and Expenditures For Six Months Ending December 31, 2021 Item #4C Date: 2/14/2022 Schedule B - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 550,000.00 600,000.00 650,000.00 700,000.00 750,000.00 800,000.00 850,000.00 900,000.00 950,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Sales Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 Schedule C 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 550,000.00 600,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Meals Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 Schedule D - 25,000.00 50,000.00 75,000.00 100,000.00 125,000.00 150,000.00 175,000.00 200,000.00 225,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Lodging Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 City of Salem, Virginia Debt Outstanding For Period Ending December 31, 2021 Schedule E Balance Principal Balance 7/1/2021 Issuances Payments 12/31/2021 City Debt Outstanding 2011 Union First Market Refunding Bonds 1,170,792$ (399,960)$ 770,832$ 2013 Public Improvement Bonds 1,156,400 - (89,425) 1,066,975 2016B Public Improvement Bonds 717,601 - - 717,601 2019 Public Improvement Bonds 4,670,000 - - 4,670,000 2020 Public Improvement Bonds 2,375,000 - - 2,375,000 2020 Public Improvement Refunding Bonds 5,519,026 - - 5,519,026 2021 Public Improvement Refunding Bonds 1,555,000 - - 1,555,000 Total City Debt Outstanding 17,163,819 - (489,385) 16,674,434 School Debt Outstanding 2011 Union First Market Refunding Bonds 2,049,208 - (700,040) 1,349,168 2012A Public Improvement Bonds 5,727,000 - (477,250) 5,249,750 2013 Public Improvement Bonds 3,563,600 - (275,575) 3,288,025 2020 Public Improvement Bonds 23,835,000 - - 23,835,000 Total School Debt Outstanding 35,174,808 - (1,452,865) 33,721,943 Total Debt Outstanding 52,338,627$ -$ (1,942,250)$ 50,396,377$ City of Salem, Virginia Capital Projects Fund Statement of Revenues and Expenditures For Period Ending December 31, 2021 Schedule F Project Total Available Year To Budget To Date Encumbrances Project Balance Date Fund Balance, July 1, 2021 12,736,529 Revenues: Federal Grants 11,023,764 1,563,144 - 1,563,144 9,460,620 24,193 State Grants 8,630,523 673,146 - 673,146 7,957,377 278,501 Proceeds From Debt Issuance 31,340,422 31,340,419 - 31,340,419 3 - Interest Income 48,312 51,664 - 51,664 (3,352) 3,352 Transfer From General Fund 2,574,638 2,574,637 - 2,574,637 1 250,000 Total Revenues 53,617,659 36,203,010 - 36,203,010 17,414,649 556,046 Expenditures: Fire Truck 2020 698,200 688,955 - 688,955 9,245 678,429 Next Generation 911 378,493 160,400 - 160,400 218,093 89,057 Street Department Equipment 2016 522,032 522,014 - 522,014 18 39,014 Colorado St Bridge Replacement 6,450,000 542,312 362,358 904,670 5,545,330 302,377 Apperson Drive Bridge Replacement 3,364,939 419,952 323,868 743,820 2,621,119 102,377 Street Department Equipment 2019 718,342 718,342 - 718,342 - 46,182 VDOT E Main Project UPC 8753 217,955 165,885 - 165,885 52,070 - Street Department Equipment 2020 1,221,293 1,187,164 22,823 1,209,987 11,306 180,841 Hanging Rock Battlefield Phase 2 570,310 150,038 9,146 159,184 411,126 4,864 Western Roanoke River Greenway 50,000 1,500 - 1,500 48,500 - Elizabeth Campus Greenway 1,104,400 85,350 104,150 189,500 914,900 25,548 Kiwanis Field Lighting Upgrades 644,727 644,727 - 644,727 - 182 Longwood Park Restroom Replacement 150,000 116,435 - 116,435 33,565 111,698 Library Sidewalk Replacement 36,800 32,395 - 32,395 4,405 32,395 Kiwanis Roof/Infrastructure Renovations 399,919 15,827 3,282 19,109 380,810 7,518 Moyer Sports Complex Renovation 870,500 225,834 644,667 870,501 (1) 220,834 Mason Creek Greenway Phase 3 2,610,310 371 - 371 2,609,939 371 Downtown Impr - E Main St/Broad St 974,799 844,540 65,807 910,347 64,452 - Downtown Impr - E Main St/Broad St-CDBG 250,000 250,000 - 250,000 - - Downtown Impr - CDBG Community Impr 285,000 27,983 25,165 53,148 231,852 853 Downtown Impr - E Main St/Union St 1,453,861 85,263 33,630 118,893 1,334,968 26,295 Downtown Impr - E Main St/Market St 3,629,869 88,074 84,210 172,284 3,457,585 24,104 Capital Projects Local Reserve 15,910 - - - 15,910 - Transfer to Schools-2020 Bonds 27,000,000 19,796,353 - 19,796,353 7,203,647 1,966,340 Total Expenditures 53,617,659 26,769,714 1,679,106 28,448,820 25,168,839 3,859,279 Fund Balance, December 31, 2021 9,433,296 Schedule G Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Sale of Power 39,501,333$ 20,393,206$ 52%19,560,526$ 832,681$ Other Electric Revenue 761,000 187,142 25%415,427 (228,285) Reserve for Encumbrances 8,829,167 - 0%- - Total Operating Revenues 49,091,500 20,580,349 42%19,975,953 604,396 . Operating Expenses Other Power Generation - Operation 80,000 17,767 22%9,826 7,941 Other Power Generation - Maintenance 83,613 42,944 51%16,097 26,847 Purchased Power 20,540,000 10,167,595 50%9,795,544 372,051 Transmission - Operation 7,510,500 3,813,368 51%3,039,185 774,183 Transmission - Maintenance 14,000 1,304 9%2,138 (834) Distribution - Operations 944,150 415,563 44%503,307 (87,744) Distribution - Maintenance 1,221,665 473,089 39%559,499 (86,409) Customer Service 598,409 291,539 49%324,365 (32,826) Administration & General - Operation 2,854,285 806,426 28%654,283 152,143 Administration & General - Maintenance 189,490 71,452 38%79,987 (8,535) Depreciation - 676,958 0%657,939 19,020 Capital 11,266,304 3,470,964 31%3,745,039 (274,076) Contingency 629,084 - 0%- - Total Operating Expenses 45,931,500 20,248,970 44%19,387,210 861,760 Income (loss) Before Transfers 3,160,000 331,379 588,743 (257,364) Transfers (Payment in Lieu of Taxes)(3,160,000) (1,580,000) 0%(1,580,000) - Income (loss)-$ (1,248,621)$ (991,257)$ (257,364)$ Income (loss)-$ (2,497,242)$ (1,982,514)$ (514,728)$ City of Salem, Virginia Electric Fund Statement of Operations For Six Months Ending December 31, 2021 Schedule H Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Services 7,049,799$ 3,806,461$ 54%3,562,300$ 244,160$ Other Revenue 380,000 194,854 51%151,823 43,031 Reserve for Encumbrances 504,038 - 0%- - Appropriated from Net Position 1,660,000 - 0%- - Total Operating Revenues 9,593,837 4,001,315 42%3,714,123 287,192 . Operating Expenses Salaries of Personnel 810,926 468,788 58%429,425 39,363 Fringe Benefits 375,370 192,133 51%166,969 25,164 Contractual Services 766,591 237,816 31%237,093 177,990 Printing and Binding 2,500 68 3%84 (17) Advertising 1,000 698 70%195 503 Utilities 417,200 191,389 46%193,287 (1,898) Communications 5,800 2,142 37%1,863 280 Insurance 29,750 13,546 46%13,316 230 Travel and Training 9,800 2,708 28%579 2,129 Miscellaneous 58,834 40,783 69%43,949 (3,166) Materials and Supplies 199,100 83,771 42%41,090 42,681 Depreciation - 427,602 0%427,908 71,585 Capital 1,176,111 169,812 14%13 169,799 Contingency 311,040 - 0%- - Total Production Expenses 4,164,022 1,831,256 44%1,555,771 275,485 Salaries of Personnel 633,244 282,566 45%281,697 869 Fringe Benefits 301,120 119,754 40%118,653 1,102 Contractual Services 721,621 307,339 43%272,228 35,111 Communications 4,950 1,756 35%1,594 162 Insurance 24,000 7,152 30%- 7,152 Lease/Rent of Equipment 2,000 911 46%911 - Travel and Training 5,300 2,465 47%137 2,328 Miscellaneous 24,834 12,147 49%12,930 (783) Miscellaneous Credits (240,000) (124,505) 52%(130,140) 5,635 Materials and Supplies 135,800 70,929 52%48,374 22,556 Depreciation - 52,350 0%48,194 4,157 Capital 2,154,926 98,008 5%444,482 (346,474) Interest Obligations 1,481,020 116,820 8%134,587 (17,768) Total Distribution Expenses 5,248,815 947,692 18%1,233,646 (285,954) Income (loss) Before Transfers 181,000 1,222,367 924,706 297,661 Transfers (Payment in Lieu of taxes)(181,000)(89,739) 50%(90,498) 760 Income (loss)-$ 1,132,628$ 834,208$ 298,420$ - Production Distribution City of Salem, Virginia Water Fund Statement of Operations For Six Months Ending December 31, 2021 Schedule I Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Services 6,756,019$ 3,518,711$ 52%3,447,052$ 71,659$ Other Revenue 149,000 80,415 54%53,762 26,653 Reserve for Encumbrances 846,533 - 0%- - Appropriated from Net Position 950,000 - 0%- - Total Operating Revenues 8,701,552 3,599,126 41%3,500,813 98,312 . Operating Expenses Salaries of Personnel 717,508 357,732 50%309,048 48,684 Fringe Benefits 337,897 148,529 44%140,546 7,983 Contractual Services 3,918,758 1,199,770 31%1,337,661 (137,892) Printing and Binding 1,500 194 13%- 194 Advertising 1,500 3,201 213%- 3,201 Utilities 4,500 1,485 33%2,223 (738) Communications 14,700 7,790 53%6,373 1,417 Insurance 18,000 11,164 62%- 11,164 Lease/Rent of Equipment 3,000 911 30%911 - Travel and Training 9,000 4,285 48%968 3,317 Miscellaneous 36,834 16,060 44%19,766 (3,706) Miscellaneous Credits (325,000) (81,231) 25%(58,906) (22,325) Materials and Supplies 100,800 15,942 16%16,816 (874) Depreciation - 684,517 0%649,696 34,821 Capital 1,631,673 203,060 12%538,094 (335,034) Interest Obligations 1,631,321 48,224 3%82,929 (34,705) Bond Costs - 9,961 0%- 9,961 Contingency 599,561 - 0%- - Total Operating Expenses 8,701,552 2,631,592 30%3,046,125 (414,533) Income (loss) before Transfers - 967,533 454,688 512,845 Income (loss)-$ 967,533$ 454,688$ 512,845$ City of Salem, Virginia Sewer Fund Statement of Operations For Six Months Ending December 31, 2021 Schedule J Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Shows/rentals 302,600$ 168,621$ 56%88,014$ 80,607$ Box office shows 960,000 403,132 42%42,527 360,605 Catering and concessions 120,000 66,855 56%7,547 59,308 Merchandise and commissions 103,000 79,024 77%5,680 73,344 Static advertising 48,000 28,417 59%14,750 13,667 Miscellaneous income 16,000 8,293 52%16,085 (7,792) Salem Fair 563,000 532,019 94%(3,500) 535,519 Reserve for encumbrances 11,914 - 0%- - Shuttered Venue Operator Grant (SVOG)- 1,268,542 0%- 1,268,542 Total Operating Revenues 2,124,514 2,554,903 120%171,102 2,383,800 Operating Expenses Salaries of personnel 1,064,979 579,086 54%468,091 110,995 Fringe benefits 460,057 195,525 43%184,320 11,205 Maintenance and contractual services 276,834 101,289 37%49,469 51,819 Printing and binding 500 116 23%- 116 Advertising 25,000 9,093 36%15,284 (6,191) Utilities 221,600 160,718 73%96,444 64,273 Communications 13,900 6,376 46%6,251 124 Insurance 21,000 2,852 14%- 2,852 Leases and Rentals 1,000 - 0%- - Travel and training 4,300 1,567 36%199 1,368 Miscellaneous 89,948 39,939 44%40,456 (517) Show expense 1,040,000 428,239 41%57,477 370,762 Fair 2020 expense 443,080 515,708 116%6,370 509,338 Materials and supplies 34,980 6,881 20%3,153 3,729 Capital - 2,933 116,167 (113,234) Depreciation - 144,133 0%151,221 (7,089) Contingency 86,504 - 0%- - Total Operating Expenses 3,783,682 2,194,454 58%1,194,903 999,551 Income (loss) Before Transfers (1,659,168)360,449 (1,023,801)1,384,250 Transfers 1,659,168 829,584 50%926,076 (96,492) Income (loss)-$ 1,190,033$ (97,725)$ 1,287,758$ 0.00 City of Salem, Virginia Salem Civic Center Statement of Operations For Six Months Ending December 31, 2021 Schedule K Operating Revenues: Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Catering 378,080$ 268,081$ 71%41,332$ 226,749$ Concessions 106,756 45,987 43%4,295 41,691 Moyer Concessions 46,363 42,119 91%36,137 5,982 Salem High Concessions 7,200 879 12%- 879 Total Operating Revenues 538,399 357,066 66%81,764 275,302 . Operating Expenses: Salaries of personnel 193,823 110,680 57%71,019 39,661 Fringe benefits 81,405 33,356 41%27,622 5,734 Contractual services 6,500 3,318 51%3,314 4 Printing and binding 300 149 50%21 127 Laundry and Cleaning 10,000 4,589 46%683 3,907 Communications 300 76 25%72 4 Insurance 1,200 1,740 0%- 1,740 Miscellaneous 114,661 66,304 58%13,318 52,986 Materials and supplies 127,761 79,613 62%18,506 61,107 Depreciation - 2,192 0%2,192 - Contingency 6,214 - 0%- - Total Catering Expenses 542,164 302,016 56%136,747 165,269 Salaries of Personnel 41,473 19,449 47%6,017 13,432 Fringe Benefits 11,219 3,664 33%1,644 2,020 Miscellaneous 33,750 15,896 47%694 15,202 Materials and Supplies 25,600 13,604 53%1,525 12,079 Total Concessions Expenses 112,042 52,613 47%9,880 42,733 Salaries of Personnel 18,720 15,944 85%21,797 (5,853) Fringe Benefits 4,922 3,093 63%8,997 (5,903) Contractual services 2,500 1,250 50%1,250 - Miscellaneous 4,400 6,386 145%5,452 934 Materials and Supplies 9,600 10,314 107%9,967 347 Total Moyer Expenses 40,142 36,987 92%47,463 (10,476) Salaries of Personnel 4,155 901 22%- 901 Fringe Benefits 949 108 11%- 108 Materials and Supplies 1,880 564 30%81 483 Total Salem High Expenses 6,984 1,573 23%81 1,492 Income (loss) Before Transfers (162,933)(36,124)(112,407)76,284 Transfers 162,933 - 0%- - Income (loss)-$ (36,124)$ (112,407)$ 76,284$ Moyer Concessions Salem High Concessions City of Salem, Virginia Salem Catering and Concessions Statement of Operations For Six Months Ending December 31, 2021 Catering Concessions Schedule L Budget Current Year Year to Date Percent to Date Prior Year Year to Date Variance Beginning Net Position -$ 6,222,030$ 6,331,003$ (108,973)$ Revenue Premiums Paid - City 5,400,000 2,101,505 39% 2,196,454 (94,949) Premiums Paid - School 4,410,000 1,828,925 41% 1,836,400 (7,475) Premiums Paid - Retirees 910,000 414,112 46% 440,471 (26,359) Dental Premiums Paid 604,300 247,758 41% 261,886 (14,128) Interest Earnings 22,000 7,885 36% 8,333 (448) Miscellaneous - 5,346 0% 13,891 (8,545) Total Year to Date Revenues 11,346,300 4,605,531 41% 4,757,435 (151,904) Expenses Health Claims 10,237,109 4,020,096 39% 4,498,303 (478,207) Dental Claims 604,300 207,742 34% 213,172 (5,430) Employee Health Clinic 443,691 161,886 36% 152,791 9,095 Consulting Services 52,400 34,938 67% 32,004 2,934 Miscellaneous 8,800 3,817 43% 3,675 142 Total Year to Date Expenses 11,346,300 4,428,479 39% 4,899,945 (471,466) Ending Net Position -$ 6,399,082$ 6,188,493$ 210,589$ City of Salem, Virginia Health Insurance Fund Statement of Revenues and Expenses For Five Months Ending November 30, 2021 City of Salem, Virginia Schedule of Deposits and Investments For Period Ending December 31, 2021 Schedule M FV as a Cash Value Net Change Fair Value % of 12/31/2021 in Fair Value 12/31/2021 Portfolio Demand & Time Deposits Concentration Account 128,481,306$ -$ 128,481,306$ 91.2% Payroll Account 10,097 - 10,097 0.0% Revenue Recovery Account 21,599 - 21,599 0.0% Utilitiy Billing Account 14,165 - 14,165 0.0% Box Office Account 1,153,974 - 1,153,974 0.8% Held as Fiscal Agent of: Cardinal Academy 898,312 - 898,312 0.6% Court Community Corrections 1,606,187 - 1,606,187 1.1% Held on Behalf of: Economic Development Authority 316,534 - 316,534 0.2% Total Demand & Time Deposits 132,502,174 - 132,502,174 93.9% Investments Local Government Investment Pool (LGIP) 16,884 - 16,884 0.0% Local Government Investment Pool EM (LGIP EM*) 862,864 32,368 895,232 0.6% VA State Non-Arbitrage Program (SNAP) 7,796,178 - 7,796,178 5.5% Total Investments 8,675,926 32,368 8,708,294 6.1% Total Deposits and Investments 141,178,100$ 32,368$ 141,210,468$ 100.0% * Extended Maturity Item # 5A Date: 2-14-2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER AGENDA ITEM: SUBMITTED BY: Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of Scott A. Boggs, property owner, located at 407 East Burwell Street (Tax Map # 120-1-5) from RB Residential Business District to TBD Transitional Business District. Approved on first reading at January 24, 2022 Council meeting. Mary Ellen Wines, CZA CFM Zoning Administrator SUMMARY OF INFORMATION: Zoning: RB Residential Business Land Use Plan Designation: Downtown Proposed Zoning: TBD Transitional Business District Existing Use: Office and Retail Sales Proposed Use: Office and Retail Sales BACKGROUND INFORMATION: The subject property consists of a single parcel located at the corner of East Burwell Street and Thompson Memorial Drive (Northbound), east of the intersection with South College Avenue. The size is approximately 0.1 acres and is currently occupied by a two-story single family residence that was converted to an office/commercial space. The subject property is currently zoned RB, Residential Business. As you may remember, Residential Business was previously a light commercial district. Through various changes over the last several years, it is more residential than business in nature. As a result, the sign regulations have been amended to limit the amount of signage more appropriate to residential districts. Chapter 66 of The Code of City of Salem regulates signage. RB limits the total square footage of signage to 78 square feet. More specifically, wall signs are limited to one per business at a maximum size of 6 square feet. The petitioner had applied for, and was denied, a permit for a 24 square foot wall sign. Therefore, the petitioner has requested to rezone the property to TBD, Transitional Business District. This would allow for the larger sign. Staff Recommendation: As the future land use designates this area for Downtown, the TBD, Transitional Business District would be appropriate as the district allows for commercial areas near downtown that exhibit patterns of development similar, but less intensive than the Downtown Business District. AN ORDINANCE TO AMEND SECTION 106-110, ARTICLE I, CHAPTER 106, OF THE CODE OF THE CITY OF SALEM, VIRGINIA, RELATING TO ZONING AND DIVIDING THE CITY INTO BUILDING DISTRICTS AND ESTABLISHING DISTRICT BOUNDARY LINES ON THE ZONING MAP OF THE CITY OF SALEM, VIRGINIA. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that Section 106-110, Article I, Chapter 106 of The Code of the City of Salem, Virginia, relating to building district boundary lines be amended in the following particular and no other, viz: That the following described property in the City of Salem of Scott A. Boggs, property owner, located at 407 East Burwell Street (Tax Map # 120-1-5) be and the same is hereby changed from RB Residential Business District to TBD Transitional Business District. And the map referred to shall be changed in this respect and no other, said property being described as follows: BEING all of Lots 11 and 12, of the Dropmore Estate, excepting therefrom, however, the western 50 feet of Lot 12, which was heretofore conveyed to Gay Dame (Roanoke County Deed Book 155, page 116) and further excepting therefrom 10.166 square feet previously conveyed to the Commonwealth of Virginia by deed dated April 17, 1969, and recorded in the Clerk's Office of the Circuit Court for the City of Salem, Virginia, in Deed Book 7, page 575. BEING the same property conveyed unto Sandra S. Ferris by deed from Virginia Tech Foundation, Inc. dated 05/21/1991 and recorded in the Clerk's Office of the Circuit Court for the City of Salem, Virginia in Deed Book 171, Page 211. All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and the same are hereby repealed. This ordinance shall be in full force and effect ten (10) days after its final passage. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders – William D. Jones – Byron Randolph Foley – James W. Wallace, III – Renee F. Turk – Passed: Effective: /s/____ _ Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item # 5B Date: 2-14-2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER AGENDA ITEM: SUBMITTED BY: Amendment to the Zoning Ordinance Consider ordinance on second reading for the request of Union Plaza, LLC, contract purchaser, and the City of Salem, property owner, for rezoning the property located at 630 Union Street (Tax Map # 160-11-2) from HM Heavy Manufacturing District to HBD Highway Business District. Approved on first reading at January 24, 2022 Council meeting. Mary Ellen Wines, CZA CFM Zoning Administrator SUMMARY OF INFORMATION: Zoning: HM Heavy Manufacturing Land Use Plan Designation: Commercial Proposed Zoning: HBD Highway Business District Existing Use: vacant Proposed Use: Restaurant and Retail Sales BACKGROUND INFORMATION: The subject property consists of a single parcel located on the north side of Broome Street at the corner of Union Street and Broome Street and at the corner of Chapman Street and Broome Street. The size is approximately 1.403 a cres and is currently vacant. The subject property is located within the FEMA designated Zone AE, 100-year floodplain. The contract purchaser has been adding fill to the property to conform to the requirements of development in the floodplain. The contract purchaser proposes two 6,000 square foot multi-tenant commercial buildings with a shared parking area in between. The intended use is for restaurant/retail space as the property has proximity to b oth 4 th Street and to the Moyer Sports Complex. Staff Recommendation: As the future land use designates this area for commercial, the HBD, Highway Business District would be appropriate as the district allows for a wide variety of commercial uses that are typically found near major transportation arterials such as 4th Street. AN ORDINANCE TO AMEND SECTION 106-110, ARTICLE I, CHAPTER 106, OF THE CODE OF THE CITY OF SALEM, VIRGINIA, RELATING TO ZONING AND DIVIDING THE CITY INTO BUILDING DISTRICTS AND ESTABLISHING DISTRICT BOUNDARY LINES ON THE ZONING MAP OF THE CITY OF SALEM, VIRGINIA. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that Section 106-110, Article I, Chapter 106 of The Code of the City of Salem, Virginia, relating to building district boundary lines be amended in the following particular and no other, viz: That the following described property in the City of Salem of Union Plaza, LLC, contract purchaser, and the City of Salem, property owner, located at 630 Union Street (Tax Map # 160-11-2) be and the same is hereby changed from HM Heavy Manufacturing District to HBD Highway Business District. And the map referred to shall be changed in this respect and no other, said property being described as follows: Real Property known as Tax No. 160-11-2 (formerly 160-11-2 & 160-11-3), as shown on Resubdivision Plat for City of Salem, Showing Combination of 0.9689 acre (Instrument No. 030004899) and 0.4937 acre (Instrument No. 030004898) and Dedication of 0.0594 acre (2,587 sq.ft.) of Right-Of-Way for Union Street and Broome Street Creating Hereon Lot A 1.4032 acres, Situate Union Street and Chapman Street, City of Salem, Virginia. Said Plat prepared by Caldwell White Associates Dated July 05, 2006 and Recorded in Salem Plat Book 11, Pages 60 & 61. Property described as: Beginning on an Iron Pin on east Right-Of-Way of Union Street; Thence N80⁰00’00”E 165.30’ to an Iron Pin along west Right-Of-Way of Chapman Street, Thence following the west Right-Of-Way of Chapman Street S10⁰10’00”E 420.28’ to an Iron Pin; Thence following the Right-Of-Way of Broome Street along a curve to the right along a radius of 126.51’ an arc distance of 50.59’ (Chord bearing N77⁰22’10”W, chord distance 50.26’) to an Iron Pin; Thence following the Right-Of-Way of Broome Street N66⁰34’47”W 102.75’ to an Iron Pin; Thence following the Right-Of-Way of Broome Street along a curve to the right along a radius of 60.00’ an arc distance of 63.62’ (Chord bearing N38⁰47’20”W, chord distance 60.68’) to an Iron Pin; Thence following the east Right-Of-Way of Union Street N10⁰50’55”W 200.61’ to an Iron Pin; Thence following the east Right-Of-Way of Union Street N11⁰22’33”W 90.60’ to the Point of Beginning; Containing 1.4032 Acres (61,123 sq.ft.). All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and the same are hereby repealed. This ordinance shall be in full force and effect ten (10) days after its final passage. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders – William D. Jones – Byron Randolph Foley – James W. Wallace, III – Renee F. Turk – Passed: Effective: /s/____ _ Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item # 5C Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Consider ordinance on second reading to amend Chapter 86- Traffic and Vehicles, Article XII Dockless Mobility Operations; Shared Mobility Systems, of The Code of The City of Salem, Virginia, to establish a pilot program for shared mobility devices. Approved on first reading at the January 24, 2022, meeting. SUBMITTED BY: Jim Guynn, City Attorney SUMMARY OF INFORMATION: Section 46.2-1315 of Code of Virginia allows for the use of motorized skateboards or scooters, bicycles, or electric power-assisted bicycles for hire. This section also allows for localities to adopt a demonstration or pilot program regulating the operation of such businesses. Currently, the City Code does not include the necessary language to utilize a demonstration or pilot program to allow the City to monitor and structure related requirements. The proposed changes to Chapter 86 of the City’s Code will allow for the utilization of such a demonstration or pilot program related to the operation of such a business. STAFF RECOMMENDATION: Staff recommends approval of this ordinance by Council. AN ORDINANCE TO AMEND CHAPTER 86 – TRAFFIC AND VEHICLES, ARTICLE XII – DOCKLESS MOBILITY OPERATIONS; SHARED MOBILITY SYSTEMS OF THE CODE OF THE CITY OF SALEM TO ESTABLISH A PILOT PROGRAM FOR SHARED MOBILITY DEVICES WHEREAS, Section 46.2-1315(A) of the Code of Virginia authorizes municipalities to regulate the operation of companies providing motorized skateboards or scooters for hire; and WHEREAS, on December 9, 2019, the City of Salem, Virginia passed an ordinance regulating dockless mobility operations and shared mobility systems; and WHEREAS, Section 46.2-1315(B) of the Code of Virginia permits localities “to first enact, revise, or amend any ordinance . . . prior to a person offering motorized skateboards or scooters, bicycles, or electric power-assisted bicycles for hire in the locality.” NOW, THEREORE, be it ordained BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA as follows: Chapter 86 – TRAFFIC AND VEHICLES ARTICLE XII. – DOCKLESS MOBILITY OPERATIONS; SHARED MOBILITY SYSTEMS. Sec. 86-481. – Permit application procedures. (a) Any person seeking to operate a shared mobility system within the city shall first obtain a permit from the city manager’s designee, conditioned on compliance with the operating regulations contained in this article. The permittee will be required to obtain a business license and will be responsible for all applicable local fees and taxes. (b) No person shall operate a shared mobility system within the city without a permit. Upon receipt of an application for a permit, the city manager’s designee may implement a pilot program for shared mobility devices prior to acting on an application. If a pilot program is employed, the city manager ’s designee may defer action upon or deny the permit application until such time as the pil ot program expires. If a pilot program is not employed, the city manager ’s designee may: (1) approve the shared mobility device permit with or without additional conditions if it meets the standards for approval set forth in this article; or (2) deny the s hared mobility device permit if it does not meet the standards for approval set forth in this article. Any person who operates a shared mobility system without a permit shall be subject to a civil penalty not to exceed $1,000.00 for each violation within t he discretion of the court. Each day of violation shall constitute a separate offense. (c) The city manager or the manager’s designee may revoke any permit without prior notice for failure to comply with the operating regulations. (d) Any person whose permit application has been denied, or whose permit has been revoked or terminated, may file an appeal with the city manager by submitting a written statement to the city manager within ten business days of the denial or revocation. The written statement shall describe the basis of the objection. The city manager shall issue a final decision on the appeal within ten business days. Any permittee whose permit has been revoked may not apply for another permit within six months. All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and the same are hereby repealed. This ordinance shall be in full force and effect ten (10) days after its final passage. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III – Renee F. Turk – Passed: Effective: Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item #6A Date: 2 -14-2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER AGENDA ITEM: Use Not Provided For Permit Hold public hearing to consider the request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LTD, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map # 165-4- 2.1). Advertised in the December 23 and 30, 2021 issues of the Salem Times-Register. Recommended approval with conditions, see pages 3-7 of Planning Commission minutes. Continued item from January 10, 2022 Council meeting. SUBMITTED BY: Mary Ellen Wines, CZA CFM Zoning Administrator SUMMARY OF INFORMATION: “Cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. Cryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.” “All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” These miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency for verifying each transaction and adding it to the blockchain.” There is a cap on the number of “coins” produced and the time it takes to create each coin increases over time. This process utilizes multiple computers, processors, and servers which produce a lot of heat, which require a lot of cooling, in which all use an enormous amount of electricity which can increase the carbon emissions. In researching this type of business, as there are none locally, it has become apparent that in addition to the carbon emissions concerns, the noise level of the HVAC systems required to keep these systems cool, can be detrimental to neighboring properties. The applicant has discussed the electric service with the Building Inspections Division. An 800-to-1000-amp service has been requested. C/Net reported that one bitcoin (a type of cryptocurrency) takes 1,544 kWh to complete. This is equivalent of approximately 53 days of power for the average US household. The goal for the applicant is to have 150 Asic Pro A19 computers at completion. There are few if any jobs created in association with this type of business. A business license will be required, and the city would receive tax on any equipment in addition to the sale of electricity. CRYPTOCURRENCY BITCOIN What Is Bitcoin Mining? Bitcoin mining is the process by which new bitcoins are entered into circulation; it is also the way that new transactions are confirmed by the network and a critical component of the maintenance and development of the blockchain ledger. "Mining" is performed using sophisticated hardware that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of bitcoins and the process begins again. Cryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it? However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we'll use "Bitcoin" when referring to the network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a quantity of individual tokens). How Does Bitcoin Mining Work? By Updated November 30, 2021EUNY HONG Reviewed by JULIUS MANSA TABLE OF CONTENTS What Is Bitcoin Mining? A New Gold Rush Mining to Prevent Double Spend Mining and Bitcoin Circulation How Much a Miner Earns EXPAND + SUBMITTED BY APPLICANT Click Play to Learn How Bitcoin Mining Works A New Gold Rush The primary draw for many mining is the prospect of being rewarded with Bitcoin. That said, you certainly don't have to be a miner to own cryptocurrency tokens. You can also buy cryptocurrencies using fiat currency; you can trade it on an exchange like Bitstamp using another crypto (as an example, using Ethereum or NEO to buy Bitcoin); you even can earn it by shopping, publishing blog posts on platforms that pay users in cryptocurrency, or even set up i t t i t t KEY TAKEAWAYS By mining, you can earn cryptocurrency without having to put down money for it. Bitcoin miners receive Bitcoin as a reward for completing "blocks" of verified transactions, which are added to the blockchain. Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the total mining power on the network. You need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to set up a mining rig. SUBMITTED BY APPLICANT interest-earning crypto accounts. An example of a crypto blog platform is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called STEEM. STEEM can then be traded elsewhere for Bitcoin. The Bitcoin reward that miners receive is an incentive that motivates people to assist in the primary purpose of mining: to legitimize and monitor Bitcoin transactions, ensuring their validity. Because these responsibilities are spread among many users all over the world, Bitcoin is a "decentralized" cryptocurrency, or one that does not rely on any central authority like a central bank or government to oversee its regulation. Mining to Prevent Double Spend Miners are getting paid for their work as auditors. They are doing the work of verifying the legitimacy of Bitcoin transactions. This convention is meant to keep Bitcoin users honest and was conceived by Bitcoin's founder, Satoshi Nakamoto.[1 ] By verifying transactions, miners are helping to prevent the "double-spending problem."  Double spending is a scenario in which a Bitcoin owner illicitly spends the same bitcoin twice. With physical currency, this isn't an issue: once you hand someone a $20 bill to buy a bottle of vodka, you no longer have it, so there's no danger you could use that same $20 bill to buy lotto tickets next door. While there is the possibility of counterfeit cash being made, it is not exactly the same as literally spending the same dollar twice. With digital currency, however, as the Investopedia dictionary explains, "there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original." Let's say you had one legitimate $20 bill and one counterfeit of that same $20. If you were to try to spend both the real bill and the fake one, someone that took the trouble of looking at both of the bills' serial numbers would see that they were the same number, and thus one of them had to be false. What a Bitcoin miner does is analogous to that—they check transactions to make sure that users have not illegitimately tried to spend the same bitcoin twice. This isn't a perfect analogy—we'll explain in more detail below. Important:Only 1 megabyte of transaction data can fit into a single bitcoin block. The 1 MB limit was set by Satoshi Nakamoto, and this has become a matter of controversy as some miners believe the block size should be increased toSUBMITTED BY APPLICANT accommodate more data, which would effectively mean that the bitcoin network could process and verify transactions more quickly. "So after all that work spent mining, I might still not get any bitcoin for it?" That is correct. To earn bitcoins, you need to be the first miner to arrive at the right answer, or closest answer, to a numeric problem. This process is also known as proof of work (PoW). "What do you mean, 'the right answer to a numeric problem'?" The good news: No advanced math or computation is really involved. You may have heard that miners are solving difficult mathematical problems—that's true but not because the math itself is hard. What they're actually doing is trying to be the first miner to come up with a 64- digit hexadecimal number (a "hash") that is less than or equal to the target hash. It's basically guesswork.[1 ] The bad news: It's a matter of guesswork or randomness, but with the total number of possible guesses for each of these problems being on the order of trillions, it's incredibly arduous work. And the number of possible solutions only increases the more miners that join the mining network (known as the mining difficulty). In order to solve a problem first, miners need a lot of computing power. To mine successfully, you need to have a high "hash rate," which is measured in terms gigahashes per second (GH/s) and terahashes per second (TH/s). Tip:If you want to estimate how much bitcoin you could mine with your mining rig's hash rate, the site Cryptocompare offers a helpful calculator. Other web resources offer similar tools. Mining and Bitcoin Circulation In addition to lining the pockets of miners and supporting the Bitcoin ecosystem, mining serves another vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of September 2021, there were around 18.82 million bitcoins in circulation, out of an ultimate total of 21 million. [2 ] Aside from the coins minted via the genesis block (the very first block, which was created by f d S t hi N k t ) i l f th bit i i t b i b fSUBMITTED BY APPLICANT founder Satoshi Nakamoto), every single one of those bitcoins came into being because of miners. In the absence of miners, Bitcoin as a network would still exist and be usable, but there would never be any additional bitcoin. However, because the rate of bitcoin "mined" is reduced over time, the final bitcoin won't be circulated until around the year 2140. This does not mean that transactions will cease to be verified. Miners will continue to verify transactions and will be paid in fees for doing so in order to keep the integrity of Bitcoin's network.[3 ] Aside from the short-term Bitcoin payoff, being a coin miner can give you "voting" power when changes are proposed in the Bitcoin network protocol. This is known as a BIP (Bitcoin Improvement Protocol). In other words, miners have some degree of influence on the decision-making process on such matters as forking. How Much a Miner Earns The rewards for Bitcoin mining are reduced by half roughly every four years.[1 ] When bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. By 2016, this was halved again to 12.5 BTC. On May 11, 2020, the reward halved again to 6.25 BTC. In September of 2021, the price of Bitcoin was about $45,000 per bitcoin, which means you'd have earned $281,250 (6.25 x 45,000) for completing a block.[4 ] Not a bad incentive to solve that complex hash problem detailed above, it might seem. Image SUBMITTED BY APPLICANT Image by Sabrina Jiang © Investopedia 2021 If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clock, which updates this information in real-time. Interestingly, the market price of Bitcoin has, throughout its history, tended to correspond closely to the reduction of new coins entered into circulation. This lowering inflation rate increased scarcity and historically the price has risen with it. Tip:If you are interested in seeing how many blocks have been mined thus far, there are several sites, including Blockchain.info, that will give you that information in real-time. What You Need to Mine Bitcoins Although early on in Bitcoin's history individuals may have been able to compete for blocks with a regular at-home personal computer, this is no longer the case. The reason for this is that the difficulty of mining Bitcoin changes over time. In order to ensure the smooth functioning of the blockchain and its ability to process and verify transactions, the Bitcoin network aims to have one block produced every 10 minutes or so. However, if there are one million mining rigs competing to solve the hash problem, they'll likely reach a solution faster than a scenario in which 10 mining rigs are working on the same problem. For that reason, Bitcoin is designed to evaluate and adjust the difficulty of mining every 2,016 blocks, or roughly every two weeks.[1 ] When there is more computing power collectively working to mine for bitcoins, the difficulty level of mining increases in order to keep block production at a stable rate. Less computing power means the difficulty level decreases. At today's network size, a personal computer mining for bitcoin will almost certainly find nothing. All of this is to say that, in order to mine competitively, miners must now invest in powerful computer equipment like a GPU (graphics processing unit) or, more realistically, anSUBMITTED BY APPLICANT application-specific integrated circuit (ASIC). These can run from $500 to the tens of thousands. Some miners—particularly Ethereum miners—buy individual graphics cards (GPUs) as a low-cost way to cobble together mining operations. An Analogy Say I tell three friends that I'm thinking of a number between one and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number; they just have to be the first person to guess any number that is less than or equal to the number I am thinking of. And there is no limit to how many guesses they get. Let's say I'm thinking of the number 19. If Friend A guesses 21, they lose because 21>19. If Friend B guesses 16 and Friend C guesses 12, then they've both theoretically arrived at viable answers, because of 16 < 19 and 12 < 19. There is no "extra credit" for Friend B, even though B's answer was closer to the target answer of 19. Now imagine that I pose the "guess what number I'm thinking of" question, but I'm not asking just three friends, and I'm not thinking of a number between 1 and 100. Rather, I'm asking millions of would-be miners and I'm thinking of a 64-digit hexadecimal number. Now you see that it's going to be extremely hard to guess the right answer. If B and C both answer simultaneously, then the analogy breaks down. In Bitcoin terms, simultaneous answers occur frequently, but at the end of the day, there can only be one winning answer. When multiple simultaneous answers are presented that are equal to or less than the target number, the Bitcoin network will decide by a simple majority— 51%—which miner to honor. Typically, it is the miner who has done the most work or, in other words, the one that verifies the most transactions. The losing block then becomes an "orphan block." Orphan blocks are those that are not added to the blockchain. Miners who successfully solve the hash problem but who haven't verified the most transactions are not rewarded with bitcoin. What Is a "64-Digit Hexadecimal Number"? Here is an example of such a number:  0000000000000000057fcc708cf0130d95e27c5819203e9f967ac56e4df598eeSUBMITTED BY APPLICANT 000000000000000005 cc 08c 0 30d95e c58 9 03e9 96 ac56e d 598ee The number above has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that? To understand what these letters are doing in the middle of numbers, let's unpack the word "hexadecimal." The decimal system uses as its base factors of 100 (e.g., 1% = 0.01). This, in turn, means that every digit of a multi-digit number has 100 possibilities, zero through ninety-nine. In computing, the decimal system is simplified to base 10, or zero through nine. "Hexadecimal," on the other hand, means base 16, as "hex" is derived from the Greek word for six and "deca" is derived from the Greek word for 10. In a hexadecimal system, each digit has 16 possibilities. But our numeric system only offers 10 ways of representing numbers (zero through nine). That's why you have to stick letters in, specifically letters a, b, c, d, e, and f.  If you are mining Bitcoin, you do not need to calculate the total value of that 64-digit number (the hash). I repeat: You do not need to calculate the total value of a hash.  Image SUBMITTED BY APPLICANT Image by Sabrina Jiang © Investopedia 2021 So, what do "64-digit hexadecimal numbers" have to do with Bitcoin mining?  Remember that analogy, where the number 19 was written on a piece of paper and put it in a sealed envelope? In Bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash. What miners are doing with those huge computers and dozens of cooling fans is guessing at the target hash. Miners make these guesses by randomly generating as many "nonces" as possible, as fast as possible. A nonce is short for "number only used once," and the nonce is the key to generating these 64-bit hexadecimal numbers I keep talking about. In Bitcoin mining, a nonce is 32 bits in size—much smaller than the hash, which is 256 bits. The first miner whose nonce generates a hash that is less than or equal to the target hash is awarded credit for completing that block and is awarded the spoils of 6.25 BTC. In theory, you could achieve the same goal by rolling a 16-sided die 64 times to arrive at random numbers, but why on earth would you want to do that? The screenshot below, taken from the site Blockchain.info, might help you put all this information together at a glance. You are looking at a summary of everything that happened when block #490163 was mined. The nonce that generated the "winning" hash was 731511405. The target hash is shown on top. The term "Relayed by Antpool" refers to the fact that this particular block was completed by AntPool, one of the more successful mining pools (more about mining pools below). As you see here, their contribution to the Bitcoin community is that they confirmed 1768 transactions for this block. If you really want to see all 1768 of those transactions for this block, go to this page and scroll down to the heading "Transactions." SUBMITTED BY APPLICANT (source: Blockchain.info) How do I guess at the target hash All target hashes begin with a string of leading zeroes. There is no minimum target, but there is a maximum target set by the Bitcoin Protocol. No target can be greater than this number:SUBMITTED BY APPLICANT 00000000ffff0000000000000000000000000000000000000000000000000000 The winning hash for a bitcoin miner is one that has at least the minimum number of leading zeroes defined the mining difficulty. Here are some examples of randomized hashes and the criteria for whether they will lead to success for the miner: Note: These are made-up hashes. Image by Sabrina Jiang © Investopedia 2021 To find such a hash value, you have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined Bitcoin. Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners. In other words, it's literally just a numbers game. You cannot guess the pattern or make a di ti b d i t t h h At t d ' diffi lt l l th dd f fi di th Image SUBMITTED BY APPLICANT prediction based on previous target hashes. At today's difficulty levels, the odds of finding the winning value for a single hash is one in the tens of trillions.[5 ] Not great odds if you're working on your own, even with a tremendously powerful mining rig. Not only do miners have to factor in the costs associated with expensive equipment necessary to stand a chance of solving a hash problem. They must also consider the significant amount of electrical power mining rigs utilize in generating vast quantities of nonces in search of the solution. All told, Bitcoin mining is largely unprofitable for most individual miners as of this writing. The site Cryptocompare offers a helpful calculator that allows you to plug in numbers such as your hash speed and electricity costs to estimate the costs and benefits. (Source: Cryptocompare) Cryptocompare hash calculator SUBMITTED BY APPLICANT What Are Coin Mining Pools? Mining rewards are paid to the miner who discovers a solution to the puzzle first, and the probability that a participant will be the one to discover the solution is equal to the portion of the total mining power on the network.  Participants with a small percentage of the mining power stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.001% of the network's mining power. With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse. The miner may never recoup their investment. The answer to this problem is mining pools.  Mining pools are operated by third parties and coordinate groups of miners. By working together in a pool and sharing the payouts among all participants, miners can get a steady flow of bitcoin starting the day they activate their miners. Statistics on some of the mining pools can be seen on Blockchain.info. "I've done the math. Forget mining. Is there a less onerous way to profit from cryptocurrencies?" As mentioned above, the easiest way to acquire Bitcoin is to simply buy it on one of the many exchanges. Alternately, you can always leverage the "pickaxe strategy." This is based on the old saw that during the 1849 California gold rush, the smart investment was not to pan for gold, but rather to make the pickaxes used for mining. To put it in modern terms, invest in the companies that manufacture those pickaxes. In a cryptocurrency context, the pickaxe equivalent would be a company that manufactures equipment used for Bitcoin mining. You may consider looking into companies that make ASICs equipment or GPUs instead, for example. Downsides of Mining  The risks of mining are often that of financial risk and a regulatory one. As mentioned, Bitcoin mining, and mining in general, is a financial risk since one could go through all the effort of purchasing hundreds or thousands of dollars worth of mining equipment only to have no return on their investment. That said, this risk can be mitigated by joining mining pools. If you are considering mining and live in an area where it is prohibited you should reconsider. It maySUBMITTED BY APPLICANT g g p y y also be a good idea to research your country's regulation and overall sentiment towards cryptocurrency before investing in mining equipment. One additional potential risk from the growth of Bitcoin mining (and other proof-of-work systems as well) is the increasing energy usage required by the computer systems running the mining algorithms. While microchip efficiency has increased dramatically for ASIC chips, the growth of the network itself is outpacing technological progress.[6 ] As a result, there are concerns about the environmental impact and carbon footprint of Bitcoin mining.[7 ] There are, however, efforts to mitigate this negative externality by seeking cleaner and green energy sources for mining operations (such as geothermal or solar), as well as utilizing carbon offset credits. Switching to less energy-intensive consensus mechanisms like proof-of-stake (PoS), which Ethereum has transitioned to, is another strategy; however, PoS comes with its own set of drawbacks and inefficiencies such as incentivizing hoarding instead of using coins and a risk of centralization of consensus control. Why is it called bitcoin "mining"? Mining is used as a metaphor for introducing new bitcoins into the system, since it requires (computational) work just as mining for gold or silver requires (physical) effort. Of course, the tokens that miners find are virtual and exist only within the digital ledger of the Bitcoin blockchain. Why do bitcoins need to be mined? Since they are entirely digital records, there is a risk of copying, counterfeiting, or double- spending the same coin more than once. Mining solves these problems by making it extremely expensive and resource-intensive to try to do one of these things or otherwise "hack" the network. Indeed, it is far more cost-effective to join the network as a miner than to try to undermine it. What do you mean mining confirms transactions? In addition to introducing new BTC into circulation, mining serves the crucial role of confirming and validating new transactions on the Bitcoin blockchain. This is important because there is no central authority such as a bank, court, government, or anything else d t i i hi h t ti lid d hi h t I t d th i iSUBMITTED BY APPLICANT determining which transactions are valid and which are not. Instead, the mining process achieves a decentralized consensus through proof-of-work (PoW). Why does mining use so much electricity? In the early days of Bitcoin, anybody could simply run a mining program from their PC or laptop. But, as the network got larger and more people became interested in mining, the difficulty of the mining algorithm became more difficult. This is because the code for Bitcoin targets finding a new block once every ten minutes, on average.[1 ] If more miners are involved, the chances that somebody will solve the right hash quicker increases, and so the difficulty is raised to restore that 10-minute goal. Now imagine if thousands, or even millions more times of mining power joins the network. That's a lot of new machines consuming energy. Is Bitcoin Mining Legal? The legality of Bitcoin mining depends entirely on your geographic location. The concept of Bitcoin can threaten the dominance of fiat currencies and government control over the financial markets. For this reason, Bitcoin is completely illegal in certain places. Bitcoin ownership and mining are legal in more countries than not. Some examples of places where it was illegal according to a 2018 report were Algeria, Egypt, Morocco, Bolivia, Ecuador, Nepal, and Pakistan.[8 ] Overall, Bitcoin use and mining remain legal across much of the globe. ARTICLE SOURCES SUBMITTED BY APPLICANT MBLU Location Owner Name Co-Owner Name Address 1 Address 2 City, State, Zip 165-4-2.1 1401 SOUTHSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-2 1491 SOUTHSIDE DR WILLIAM P THURMAN JILL ANNETTE WRIGHT HELM 1491 SOUTHSIDE DR SALEM VA 24153 165-4-1 1700 MILL LN NILAM CORPORATION 2223 WILLIAMSON RD ROANOKE VA 24012 179-2-2 1510 & 1506 SOUTHSIDE DR WM S TRIMBLE CO INC 2200 ATCHLEY ST KNOXVILLE TN 37920 179-2-3 1490 SOUTHSIDE DR CALVIN CECIL PARKS 1490 SOUTHSIDE DR SALEM VA 24153 179-2-4.1 1400 SOUTHSIDE DR STOVER W CARTER TRUSTEE REVOCABLE LIVING TRUST 5298 GLENVAR HEIGHTS BLVD SALEM VA 24153 165-4-3 1399 SOUTHSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-3.1 1260 W RIVERSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-4 1389 SOUTHSIDE DR J & A SPIKES LLC 2131 RIVER OAKS DR SALEM VA 24153 165-3-1 1263 W RIVERSIDE DR DAVID L PRICE ANN S PRICE 1263 W RIVERSIDE DR SALEM VA 24153 At its peak, cryptocurrency mining was an arms race that led to increased demand for graphics processing units (GPUs). In fact, Advanced Micro Devices, a GPU manufacturer, posted impressive financial results (https://www.cnbc.com/2017/07/26/wall-street- stunned-over-amds-cryptocurrency-mining-demand.html) as demand for the company’s stock skyrocketed and shares traded at their highest level in a decade. Despite the increased demand for GPUs, thecrypto mining gold rush quickly came to an end, as the difficulty of mining top cryptocurrencies like Bitcoin increased just as quickly. Mining cryptocurrencies, however, can still be profitable. So, what is crypto mining, is it legal, and how can you get started?   This article takes a closer look at these questions. What Is Crypto Mining? (https://freemanlaw.com/) Most people think of crypto mining simply as a way of creating new coins. Crypto mining, however, also involves validating cryptocurrency transactions on a blockchain network and adding them to a distributed ledger.  Most importantly, crypto mining prevents the double-spending of digital currency on a distributed network. Like physical currencies, when one member spends cryptocurrency, the digital ledger must be updatedby debiting one account and crediting the other. However, the challenge of a digital currency is that digital platforms are easily manipulated. Bitcoin’s distributed ledger, therefore, only allows verified miners to update transactions on the digital ledger. This gives miners the extra responsibility of securing the network from double-spending. Meanwhile, new coins are generated to reward miners for their work in securing the network. Since distributed ledgers lack a centralized authority, the mining process is crucial for validating transactions. Miners are, therefore, incentivized to secure the network by participating in the transaction validation process that increases their chances of winning newly minted coins. In order to ensure that only verified crypto miners can mine and validate transactions, a proof-of-work (PoW) consensus protocol has been put into place. PoW also secures the network from any external attacks. Proof-of-Work Crypto mining is somewhat similar to mining precious metals   . While miners of precious metals will unearth gold, silver, or diamonds, crypto miners will trigger the release of new coins into circulation. For miners to be rewarded with new coins, they need to deploy machines that solve complex mathematical equations in the form of cryptographic hashes. A hash is a truncated digital signature of a chunk of data. Hashes are generated to secure data transferred on a public network. Miners compete with their peers to zero in on a hash value generated by a crypto coin transaction, and the first miner to crack the code gets to add the block to the ledger and receive the reward. Each block uses a hash function to refer to the previous block, forming an unbroken chain of blocks that leads back to the first block. For this reason, peers on the network can easily verify whether certain blocks are valid and whether the miners who validated each block properly solved the hash to receive the reward. Over time, as miners deploy more advanced machines to solve PoW, the difficulty of  equations on the network increases. At the same time, competition among miners rises, increasing the scarcity of the cryptocurrency as a result. How to Start Mining Cryptocurrencies Mining cryptocurrencies requires computers with special software specifically designed to solve complicated, cryptographic mathematic equations. In the technology’s early days, cryptocurrencies like Bitcoin could be mined with a simple CPU chip on a home computer. Over the years, however, CPU chips have become impractical for mining most cryptocurrencies due to the increasing difficulty levels. Today, mining cryptocurrencies requires a specialized GPU or an application-specific integrated circuit (ASIC) miner. In addition, the GPUs in the mining rig must be connected to a reliable internet connection at all times. Each crypto miner is also required to be a member of an online crypto mining pool as well. Different Methods of Mining Cryptocurrencies Different methods of mining cryptocurrencies require different amounts of time. In the technology’s early days, for example, CPU mining was the go-to option for most miners. However, many find CPU mining to be too slow and impractical today because it takes months to accrue even a small amount of profit, given the high electrical and cooling costs and increased difficulty across the board. GPU mining is another  method of mining cryptocurrencies. It maximizes computational power by bringing together a set of GPUs under one mining rig. For GPU mining, a motherboard and cooling system is required for the rig. Similarly, ASIC mining is yet another method of mining cryptocurrencies. Unlike GPU miners, ASIC miners are specifically designed to mine cryptocurrencies, so they produce more cryptocurrency units than GPUs. However, they are expensive, meaning that, as mining difficulty increases, they quickly become obsolete. Given the ever-increasing costs of GPU  and ASIC mining, cloud mining is becoming increasingly popular. Cloud mining allows individual miners to leverage the power of major corporations and dedicated crypto mining facilities. Individual crypto miners can identify both free and paid cloud mining hosts online and rent a mining rig for a specific amount of time. This method is the most hands-free way to mine cryptocurrencies. Mining Pools Mining pools allow miners to combine their computational resources in order to increase their chances of finding and mining blocks on a blockchain. If a mining pool succeeds, the reward is distributed across the mining pool, in proportion to the amount of resources that each miner contributed to the pool. Most crypto mining applications come with a mining pool; however, crypto enthusiasts now also join together online to create their own mining pools. Because some pools earn more rewards than others, miners are free to change pools whenever they need to. Miners consider official crypto mining pools more reliable, since they receive frequent upgrades by their host companies, as well as regular technical support. The best place to find mining pools is CryptoCompare (https://www.cryptocompare.com/mining/#/pools), where miners can compare different mining pools based on their reliability, profitability, and the coin that they want to mine. Is Crypto Mining Worth It? Determining whether crypto mining is worthwhile depends on several factors. Whether a propsective miner chooses a CPU, GPU, ASIC miner, or cloud mining, the most important factors to consider are the mining rig’s hash rate, electric power consumption, and overall costs. Generally, crypto mining machines consume a considerable amount of electricity and emit significant heat. For instance, the average ASIC miner will use about 72 terawatts (https://www.thebalance.com/how-much-power-does-the-bitcoin-network-use- 391280#:~:text=Regardless%20of%20the%20number%20of,usage%20provided%20by%20ASIC of power to create a bitcoin in about ten minutes. These figures continue to change as technology advances and mining difficulty increases. Even though the price of the machine matters, it is just as important to consider electricity consumption, electricity costs in the area, and cooling costs, especially with GPU and ASIC mining rigs. It is also important to consider the level of difficulty for the cryptocurrency that an individual wants to mine, in order determine whether the operation would even be profitable. Is Crypto Mining Legal? Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear. Under the Financial Crimes Enforcement Network (FinCEN (https://www.fincen.gov/resources/statutes-regulations/guidance)), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States appear friendly to crypto mining. However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining. Conclusion: The Sustainability of Crypto Mining For aspiring crypto miners, curiosity and a strong desire to learn are simply a must. The crypto mining space is constantly changing as new technologies emerge. The professional miners who receive the best rewards are constantly studying the space and optimizing their mining strategies to improve their performance. On the other hand, climate change advocates have become increasingly concerned, as more and more fossil fuels are burned to fuel the mining process. Such concerns have  pushed cryptocurrency communities like Ethereum to consider switching from PoW frameworks to more sustainable frameworks, such as proof-of-stake frameworks. C R Y P T O C U R R E N C Y C R Y P T O C U R R E N C Y S T R AT E G Y & E D U C AT I O N Cr yptocurrencies have come a long way from their relatively obscure origins. While the mainstream financial world once disdained digital currencies as tools for criminals and speculators, the industr y has made significant progress in establishing itself as a legitimate and (potentially) world-changing space. Bitcoin (BTC) and ether (ETH) have seen massive growth in price and users, but there are still doubts about the consequences of wide cr yptocurrency adoption. In particular, many skeptics and environmentalists have raised concerns about the energy consumption of cr yptocurrency mining, which may cause increased carbon emissions and climate change. What's the Environmental Impact of Cryptocurrency? By Updated August 26, 2021NATHAN R E I F F Reviewed by E R I K A R A S U R E K E Y TA K E AWAY S Bitcoin and other proof-of-work cr yptocurrencies require large amounts of energy, due to the computations needed for mining. By the latest estimates, the bitcoin network uses as much energ y in one year as the countr y of Argentina. 65% of bitcoin miners are located in China, a country that generates most of its energy from coal. Some proponents say that as much as 74% of bitcoin's energy needs come from renewable sources, although these figures are disputed. The bitcoin network also generates 11.5 kilotons of e-waste every year. Not all cryptocurrencies have significant environmental impacts. Many of them do not use mining at all. Bitcoin Mining Explained Why Mining Requires Energy These astronomical energy costs are due to the competitive nature of proof-of-work (PoW) blockchains. Instead of storing account balances in a central database, cr yptocurrency transactions are recorded by a distributed network of miners, incentivized by block rewards. These specialized computers are engaged in a computational race to record new blocks, which can only be created by solving cr yptographic puzzles. Cr yptocurrency advocates believe that this system has numerous advantages over centralized currencies because it does not rely on any trusted intermediar y or single point of failure. However, the puzzles for mining require many energy-intensive computations. Bitcoin, the most widely-known cr yptocurrency network, uses 121 Terawatt-hours of electricity every year, the BBC reported in 2021—more than the entire countr y of Argentina. According to Digiconomist, a cr yptocurrency analytics site, the Ethereum network uses as much power as the entire nation of Qatar.[1 ] One major concern among environmentalists is that mining tends to become less efficient as the price of cryptocurrency increases. In the case of bitcoin, the mathematical puzzles to create blocks get more difficult as the price goes up, but transaction throughput remains CLICK TO PLAYCLICK TO PLAY 1:30 constant. This means that over time, the network will consume more computing power and energy to process the same number of transactions. Fossil Fuels and Digital Currencies All of this has combined to link cryptocurrencies with fossil fuels in a way that many investors have yet to acknowledge. According to researchers at the University of Cambridge, around 65% of bitcoin mining takes place in China, a countr y that gets most of its electricity by burning coal.[2 ] Coal and other fossil fuels are currently a major source of electricity worldwide, both for cryptocurrency mining operations and other industries. However, burning coal is a significant contributor to climate change as a result of the carbon dioxide that the process produces. According to a report by CNBC, bitcoin mining accounts for about 35.95 million tons of carbon dioxide emissions each year—about the same amount as New Zealand. Cryptocurrency Advocates Defend Mining Supporters have downplayed the energy consumption of cr yptocurrencies, claiming that mining operations tend to concentrate around areas with surplus renewable energy. A 2019 report by CoinShares, a pro-cr yptocurrency research firm, estimated that 74.1% of the electricity powering the bitcoin network came from renewable sources, making bitcoin mining "more renewables-driven than almost every other large-scale industr y in the world."[3 ] These claims rest on the fact that cr yptocurrency miners are not geographically fixed, allowing them to move in search of surplus energy. According to CoinDesk, some petroleum companies are exploring ways to power mining rigs from gas flares, which would other wise be wasted energy. Some Chinese mining firms migrate from one province to another in search of the cheapest energy, thereby supporting cheap renewable providers in those locations. Calculations of bitcoin's renewable energy usage are controversial and often disputed. For example, a report by the Cambridge Center for Alternative Finance found that only 39% of bitcoin mining comes from renewable energy. Even with the most optimistic estimates of renewable energy use, the network represents a net contributor to carbon emissions.[4 ] Other Environmental Impacts of Cryptocurrency Mining In addition to energy consumption, cryptocurrency mining also generates a significant amount of electronic waste as hardware becomes obsolete. This is especially true for Application-Specific Integrated Circuits, specialized hardware for mining the most popular cryptocurrencies. Unlike other computer hardware, these circuits cannot be reused for any other purpose, and they quickly become obsolete. According to Digiconomist, the bitcoin network generates between eight and 12 thousand tons of electronic waste ever y year. Cryptocurrencies Without Mining It's also worth noting that a large number of cryptocurrencies have far lower energy demands. In particular, proof-of-stake (PoS) blockchains do not utilize mining, for instance EOS, Cardano, and more recently a switch to PoS by Ethereum. Although this model has clear energy consumption advantages over mining, other concerns arise with PoS such as concentration of staking, The Bottom Line Whether you're in favor of cr yptocurrencies or against them, there's little doubt that bitcoin and other proof-of-work blockchains use enormous amounts of energy. Much of this energy usage comes from burning coal and other fossil fuels, although cr yptocurrency advocates have argued that renewable sources are also a major component. While the exact figures are disputed, even the best case scenarios indicate that mining is a major factor in carbon dioxide emissions. A R T I C L E S O U R C E S K E Y POI N T S Ma c Ke n zie Siga l os @ K E N Z I E S I G A L O S C R Y P T O D E C O D E D Bitcoin mining isn’t nearly as bad for the environment as it used to be, new data shows P U B L I S H E D T U E , J U L 2 0 2 0 2 1 •5 :3 3 P M E D T U P D A T E D T U E , J U L 2 0 2 0 2 1 •5 :3 3 P M E D T WATC H L IV E After Beijing decided to expel its miners in May, more than 50% of the hashrate – the collective computing power of miners worldwide – dropped off the network.  The United States has fast become the new hotspot for the world’s global crypto miners. In the last six months, the country has jumped from fifth to second place and now accounts for nearly 17% of all global bitcoin miners.  Two technicians work at a bitcoin mining facility in Quebec. lars Hagbarg | AFP | Getty Images China’s mining exodus  For years, bitcoin critics have maligned the world’s biggest cryptocurrency for polluting the planet. But new data from Cambridge University shows that the geography of mining has drastically changed over the last six months, and experts tell CNBC this will improve bitcoin’s carbon footprint. China’s big crypto crackdown this spring set off a chain reaction in the mining world. For one, it took half the world’s bitcoin miners offline practically overnight. Fewer people mining has meant less machines running and less power being consumed overall, which slashed bitcoin’s environmental impact. Beijing’s new crypto rules also permanently took a lot of older and more inefficient gear offline. And crucially, China shutting its doors to crypto mining has set off a massive migration. Miners are now heading to the cheapest sources of energy on the planet, which more often than not are renewable. “The bitcoin network is ruthless in its drive for the lowest cost,” said Mike Colyer, CEO of digital currency company Foundry. “Miners around the world are looking for stranded power that is renewable. That will always be your lowest cost. Net-net this will be a big win for bitcoin’s carbon footprint.” China has long been the mecca of the crypto mining world, accounting for nearly three- quarters of all bitcoin miners at its peak, according to the Cambridge Centre for Alternative Finance. But after Beijing decided to expel its miners in May, more than 50% of the hashrate – the collective computing power of miners worldwide – dropped off the network. Today, bitcoin draws roughly 70 terawatt hours of energy per year, or 0.33% of the world’s total electricity production. That is almost half of what it was in May and is roughly equivalent to the annual energy draw of countries like Bangladesh and Chile. The exodus from China also means that a lot of older mining equipment that was probably long-past due for retirement will never be turned back on. “It took off, likely forever, a large amount of the most energy inefficient rigs,” explained Alex Brammer of Luxor Mining, a cryptocurrency pool built for advanced miners. Colyer says the overall bitcoin network will now be mostly made up of more efficient rigs that get about double the hashpower for the same amount of electricity. “This continues to significantly improve the security-to-energy ratio of the bitcoin network,” he said. But not all of China’s miners are going dark. Many have begun to patriate elsewhere, gravitating to the world’s cheapest sources of power. “The cool thing about bitcoin that is under appreciated by a lot of the naysayers is that it’s...like a portable market; you can bring it right to the source of energy,” explained Steve Barbour, founder of Upstream Data, a company that manufactures and supplies portable mining solutions for oil and gas facilities. Because miners at scale compete in a low-margin industry, where their only variable cost is typically energy, they are incentivized to migrate to the world’s cheapest sources of power. “They need to constantly reduce their electricity costs, which is their number one expense, in order to be competitive,” said Ria Bhutoria, former director of research for Fidelity Digital Assets.  Read more about cryptocurrencies from CNBC Pro Clean energy on the rise in the U.S. The data shows that a whole lot of these miners are headed for cheaper pastures in the U.S. The United States has fast become the new hotspot for the world’s global crypto miners. In the last six months, the country has jumped from fifth to second place and now accounts for nearly 17% of all global bitcoin miners. Although China was still solidly in first place as of April, with 46% share, America’s share of the market is likely a lot higher now since the Chinese government booted miners in May. U.S.-based bitcoin mining operators have seen a huge uptick in business. Whit Gibbs, CEO and founder of Compass, a bitcoin mining service provider, says that retail hardware and hosting sales have increased nearly 300% since mid-June. Stocks that are inflation plays are moving closely with cryptocurrency, Trivariate Research found As Coinbase struggles, you were better off just buying bitcoin, according to one analyst Darin Feinstein, founder of Blockcap and Core S cientific, says he’s seen a rapid rise in mining operations looking to relocate in Nor th America, mostly in the U.S., and Fred Thiel of Marathon Digital, another major player in the U.S. mining industry, tells CNBC that if the roughly 500,000 formerly Chinese miner rigs looking for homes in the U.S. are deployed, this would mean that Nor th America would account for close to 40% of the global hashrate by the end of 2022. Long-term, this is good news for bitcoin’s carbon footprint. Energy consumption is not equivalent to carbon emissions. While it is relatively easy to determine the amount of energy that is consumed by the bitcoin network, it is much harder to determine its carbon footprint. An accurate read of bitcoin’s carbon emissions would require exact knowledge of the energy mix used to generate electricity used by each bitcoin mining operation. One unit of hydropower, for example, does not have the same environmental impact as the equivalent amount of power sourced from coal. And China’s bitcoin mining operations were known for both. But on the whole, the market is pushing North American energy sources to get greener. Each year, investment bank Lazard releases a breakdown of energy costs by source. Its 2020 report shows that many of the most common renewable energy sources are either equal to or less expensive than conventional energy sources like coal and gas. And the cost of renewable power keeps going down. Thiel says that most miners new to North America will be powered by renewables, or gas offset by renewable energy credits. Gibbs estimates that bitcoin mining in the U.S. is more than 50% powered by renewables. Miners migrating to North America are also preparing for a future in which their energy usage is questioned by putative investors -- and possibly regulated. Brammer has been helping Chinese clients find new homes. He says that most are aware of the political and normative winds in Nor th America and want to hedge themselves against regulatory risks in the future by establishing new facilities in primarily renewable-powered locations. “The largest of them are also looking at the potential of going public or are looking for investors to help them grow,” Brammer told CNBC. “They realize that public markets nowadays have no appetite for proof of work mining that is powered by non-renewable [energy sources]. I have yet to even have a discussion about a deal involving coal power, which is hear tening to us.” Bitcoin mining engineer Brandon Arvanaghi tells CNBC that in the long run, the migration to the U.S., where innovation around bitcoin and renewables is already underway, will be an overwhelming positive for bitcoin’s energy mix.  Then, there’s Kazakhstan “Places like Texas have cheap electricity, in large part because of subsidies toward wind power,” according to Arvanaghi. Miami Mayor Francis Suarez has also popularized the idea of mining bitcoin with nuclear power in Florida. “And all this is largely voluntary — the federal and state governments haven’t even gotten involved to require any renewable mix,” continued Arvanaghi. Not all miners, however, are headed to renewable destinations. Kazakhstan is now just behind the U.S. in terms of its share of the global bitcoin mining market, with about 8% of all crypto mining. It’s home to coal mines that provide a cheap and abundant supply of energy — but also ample carbon dioxide emissions. However, several mining exper ts tell CNBC they think that Kazakhstan, which neighbors China, is just a temporary stopover on a longer migration west. Brammer sees large miners going there in the short-term with older-generation equipment. “But as older-generation machines reach the end of their service lives, those companies will likely deploy new machines into more stable and energy efficient and renewable jurisdictions,” he said. Also likely to put a damper on Kazakhstan’s popularity is a law newly signed by the president that will introduce extra taxes for crypto miners starting in 2022. “This will significantly change the incentives for people to deploy capital in Kazakhstan,” said Brammer.  Planni ng Commi ssi on Meeti ng M INUTES Wednesday, December 15, 2021, 7:00 P M Work Session 6:00P M Council Chambers Conference Room, City Hall, 114 North Broad Street: WORK SE SSI ON 1.C all to Order A work session of the Planning Commission of the City of Salem, Virginia, was held in C ouncil C hambers Conference Room, C ity Hall, 114 North Broad Street, at 6:30 p.m. on December15, 2021; there being present the members of said Commission, to wit: Vicki G. Daulton, Chair; Denise P. King, Vice C hair, Reid A. Garst II, J ackson Beamer, and Neil L. Conner; together with Charles E. Van Allman, J r., Director of C ommunity Development, Mary Ellen Wines, Zoning Administrator, and J im H. Guynn, J r., City Attorney; and the following business was transacted: C hair Daulton called the meeting to order at 6:09 p.m. and reported that this date, place, and time had been set for the Commission to hold a work session. 2.New Business A.Discussion of items on the January 12th agenda 1. C odes changes - Subdivision and site plan 2. Rezoning 630 Union Street - HM to HBD 3. Rezoning 407 East Burwell Street - RB to T BD 4. Special Exception Permit 2936 West Main Street - Massage Parlor C ode C hanges - Subdivision and Site Plan: discussed adding minor site plan and allowing subdivision site plans to be approved administratively. Rezoning 630 Union Street from HM to HBD: discussed multitenant commercial building. Rezoning 407 East Burwell Street from RB to T BD: discussed rezoning to allow for a larger sign. Special Exception Permit for 2936 West Main Street - Massage Parlor: discussed difference between massage therapists and massage parlors. B.Discussion item on the December 15th agenda 1. Use Not Provided For - 1401 Southside Drive - crypto mining Use Not Provided For Permit - request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map #165-4-2.1: discussed what crypto mining was and utilities needed; sound nuisances. C .Discussion of proposed bylaws 1. C ontinue the discussion of bylaws Bylaws discussed and Member Garst suggested two changes. 3.Adjournment C hair Daulton inquired if there were any other items for discussion and hearing none, adjourned the work session at 6:57 p.m. RE GU L AR SE S SI ON 1.C all to Order A regular meeting of the Planning C ommission of the C ity of Salem, Virginia, was held after due and proper notice in the C ouncil C hambers, C ity Hall, 114 North Broad Street, Salem, Virginia, at 7:00 p.m., on December 15, 2021. Notice of such hearing was published in the December 2 and 9, 2021, issues of the "Salem Times Register," a newspaper published and having general circulation in the C ity of Salem. All adjacent property owners were notified via the U. S. Postal Service. T he Commission, constituting a legal quorum, presided together with J im H. Guynn, J r., City Attorney; J ames E. Taliaferro, II, C ity Manager and Executive Secretary, ex officio member of said C ommission, to wit; C harles E. Van Allman, J r., Director of C ommunity Development; and Mary Ellen Wines, Zoning Administrator; and the following business was transacted: C hair Daulton called the meeting to order at 7:01 p.m. 2.Pledge of Allegiance 3.C onsent Agenda A.Minutes Consider acceptance of the minutes from the November 10, 2021, work session and regular meeting. 4.New Business A.Use Not P rov ided F or P ermit Hold public hearing and consider request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map # 165-4-2.1. Hold public hearing and consider request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1). Staff noted the following: “Cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. C ryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.” “All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” T hese miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency for verifying each transaction and adding it to the blockchain.” T here is a cap on the number of “coins” produced and the time it takes to create each coin increases over time. T his process utilizes multiple computers, processors, and servers which produce a lot of heat, which require a lot of cooling, in which all use an enormous amount of electricity which can increase the carbon emissions. In researching this type of business, as there are none locally, it has become apparent that in addition to the carbon emissions concerns, the noise level of the HVA C systems required to keep these systems cool, can be detrimental to neighboring properties. T he applicant has discussed the electric service with the Building Inspections Division. An 800-to-1000-amp service has been requested. C /Net reported that one bitcoin (a type of cryptocurrency) takes 1,544 kWh to complete. T his is equivalent of approximately 53 days of power for the average US household. T he goal for the applicant is to have 150 Asic Pro A19 computers at completion. T here are few if any jobs created in association with this type of business. A business license will be required, and the city would receive tax on any equipment in addition to the sale of electricity. Edward "Teddy" Dyer, 357 Penguin Lane, property owner, appeared before the C ommission and stated that he also owns the three properties beside 1401 Southside Drive; he stated the crypto mining business would not impact anything as it would all be inside the warehouse and doesn't change anything; the tenant to be has requested that the City of Salem provide additional electrical service to the building; there is no outside impact to the structure or any changes that will need to be done to the structure; the tenant to be informed him that there will be approximately 16 server racks that will be mining; there will be one person on site to manage the facility; the tenant to be has also already spoken to the C ity about adding three-phase power to the back of the building to meet the energy needs; the tenant has committed to a three-year lease with up to a five-year extension; the tenant to be also owns other businesses in the City of Salem; he requested that the C ommission approve the request. Member Garst questioned if 3-phase, 480 is being requested and how much total power would be for the service. Mr. Dyer stated that they are requesting 3-phase, 480; and the tenant expects the electric bill to be somewhere between $16,000 and $20,000 a month. He stated that the tenant to be currently has the business set up somewhere else and that is what they are currently paying a month. T he location where the tenant is currently located does not have as much space; their process has been proven for them. He performed a credit check on the individuals and everything has been good on his part as a land owner. Member C onner questioned if the HVA C system would have to be upgraded for the business. Mr. Dyer stated that it would need to be--adding two 5-ton units has been discussed and they would be ground-mounted units so there wouldn't be any changes to the building. T he proposed units wouldn't have any more noise than a couple of big commercial units. He further stated that the tenant hasn't determined if they will use chilled water or air to cool the facility as it depends on the type of servers available. T here are exhaust fans already in the building to circulate air, which could keep the servers at the correct temperature--it's trial and error to determine what is the best way to keep the servers at the correct temperature. Member Garst noted that the Commission's biggest concern is the noise associated with cooling the facility. Based on research, that has been the biggest complaint regarding this type of business--noise from the HVA C units. Mr. Dyer stated that the building is already an conditioned space. It is 5,000 square feet--2,000 square feet is office space and will remain office space and the servers will be boxed in an approximate 12'x25' area so the entire structure will not be cooled, just that box. T he units the tenant has proposed to place are equivalent to two residential units. T he Commission questioned why no one representing the business was present as they have questions. Mr. Dyer stated that he does not know the answer to that as he was doing his part as the property owner. He further stated that noise-wise he doesn't feel there will be any more noise than anywhere else. If he were to place two A/C units on the structure himself it would be permitted. T he closest residential property is the farm which is 500 yards away. He stated that there would not be anymore noise than a typical A/C unit running in an industrial area. Member Garst noted that it's 1,000 amp, 480-volt. Mr. Dyer stated that it is correct. T he business is power related--the business can do only have so many servers based on power capacity. Southside Drive gives them the opportunity because there are only so many places in the Roanoke Valley that have that type of power that's accessible. T here is already 3-phase power to the building, but it's small 3-phase so they have been in contact with the Electric Department to make this happen. T he infrastructure is already there for the power upgrade. Member C onner questioned if the tenant intends to scale the business. Mr. Dyer stated that if they scale the business, they would have to move as he doesn't feel that anything more than what they propose will fit the building. He feels the proposed business will have the least impact on Southside Drive and if you talk to the other businesses on Southside Drive it will be better than J ES was as J ES took up the whole street and parked wherever illegally--blocked driveways, etc. Member C onner asked how Mr. Dyer's other properties were configured around the proposed business. Mr. Dyer stated that his other properties surround the proposed business--Blue Ridge C ontracting is right beside it, IC EE building is the back corner lot to the back of the lot, his office is in between that and the gas station, and then he is also two down. Deli-Matic is there as well and he has spoken with them and they are fine with the business (they are located two-doors down). Sheldon Henderson owns the building three-doors down and he is ok with the business. T hen Bill J ones' car lot and his new warehouse so there is a good buffer around the proposed business. He has also spoken with Trimble across the street and they are okay with the business as well. T here is also a machine shop across the street as well. Member Garst again noted the concern regarding noise associated with the business. Mr. Dyer stated that the business is in an industrial area and is a good two-tenths of a mile from any residential property and he could go in and install two 5-ton A/C units on the building without any special permission as it currently stands. It was noted that no comments have been received by the Zoning Division regarding the request. Vice C hair King stated that it concerns her that no one from the business is present at the meeting. A discussion was held regarding the electrical upgrade needed for the business, issues with getting supplies/equipment needed for upgrade, etc. Mr. Van Allman noted that a permit to install two 5-ton units on the property would be issued without question. Mr. Dyer further stated that they have done their due-diligence and the Electric Department has agreed that there is enough power to serve the facility and won't blackout any neighborhood or anyone beside it. T he Electric Department has been out two different times as he is going to also need three-phase for a trucking company going in down the street from the facility. Mr. Dyer stated that he is building a 255,000 square-foot server farm for Microsoft in Leesburg, Virginia, and when you talk about noise, that facility is going to generate noise because they are setting 15 pads. T he building is 750-feet long and they are placing a 40-ton unit every 20 feet down the side of the building. T here are nine going in Boykins, Virginia, and six going in Leesburg. T hose facilities cause blackouts. T he proposed facility is equivalent to using a laptop compared to the Microsoft facilities, which are placed beside a transformer. Dominion Power is putting in three different sub-stations to hit that and a server farm. T he machine shops on Southside Drive can pull just as much energy as the proposed facility. Member Garst questioned if Mr. Dyer knew where the current facility is located. Mr. Dyer stated that he does not know. Member Beamer stated that he draws comfort from Mr. Dyer's knowledge, his vested interest, and the fact that his business is located next to the proposed facility. A further discussion was held regarding noise, electrical needs, industrial areas, location, etc. No other person(s) appeared related to the request. Member C onner proposed a motion to approve the request. Member Garst proposed an amendment to the motion that the switch-gear is limited to the proposed 1,000-amp, 480-volt. Member C onner did not feel that the limit on the switch-gear is necessary. Member Beamer seconded the motion. Vice C hair seconded the amended motion. Another discussion was held regarding noise, electricity, etc. Member Garst withdrew his amended motion. Mr. Dyer further explained how the proposed business could not be expanded on the property. A discussion was held regarding placing conditions on the request. A vote was held to approve the request as presented: Member C onner - aye, Member Beamer - aye, Member Garst - nay, Vice C hair King - nay, Chair Daulton - nay. Motion denied. Vice C hair King motioned that the request be approved with the following conditions: the C ity of Salem Electric Department approve the use of electricity, and the tenant comply with the noise ordinance. Denise King motioned Consider request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1).. Reid Garst seconded the motion. Ayes: Beamer, Conner, Daulton, Garst, King 5.Adjournment Meeting adjourned at 7:54 p.m. Neil C onner motioned adjournment. J ackson Beamer seconded the motion. C ity C ouncil meeting, January 10, 2021, 6:30 p.m. C o mmunity R oom, S alem C ivic C enter, 1001 R oano ke Boulevard Item #6B Date: 2/14/2022 1 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Hold a public hearing and consider adoption of ordinance authorizing the issuance and sale of general obligation public improvement bonds SUBMITTED BY: Rosie Jordan, Director of Finance SUMMARY OF INFORMATION: This time has been set aside for a public hearing on the proposed issuance of general obligation public improvement bonds to finance the City’s share of the costs to renovate the existing anaerobic digestion facilities at the Western Virginia Regional Wastewater Treatment Plant. This bond issue is in an aggregate principal amount not to exceed $2,350,000. The bonds will be general obligations of the City and the full faith and credit of the City shall be pledged for the repayment of these bonds. STAFF RECOMMENDATION: Staff recommends adopting the attached ordinance authorizing the issuance of general obligation public improvement bonds in an aggregate principal amount not to exceed $2,350,000. COVERING CERTIFICATE FOR ORDINANCE The undersigned Clerk of Council of the City of Salem, Virginia (the “City”), certifies as follows: 1. Attached hereto is a true, correct and complete copy of an ordinance entitled “ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF SALEM, VIRGINIA, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,350,000” (the “Ordinance”). Having been the subject of a duly noticed public hearing in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as amended, held on February 14, 2022, the Ordinance was adopted at a regular meeting of the Council of the City (the “Council”) held on February 14, 2022, by a majority of all members elected to Council by an affirmative roll-call vote. 2. The Council meeting at which the Ordinance was adopted was held at the time and place established by the Council for its regular meetings. The minutes of such meeting reflect the attendance of the members and their votes on the Ordinance as follows: Member Attendance (Present/Absent) Vote (Aye/Nay/Abstain) Renee F. Turk, Mayor James W. Wallace, III, Vice- Mayor Byron Randolph “Randy” Foley William D. Jones John Saunders 3. The Ordinance has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Salem, Virginia, this 14th day of February, 2022. (SEAL) Clerk of Council, City of Salem, Virginia ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF SALEM, VIRGINIA, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,350,000 WHEREAS, acting pursuant to directions of the Council (the “Council”) of the City of Salem, Virginia (the “City”), the City proposes to finance the City’s share of the costs to renovate the existing anaerobic digestion facilities at the Western Virginia Water Authority Regional Wastewater Treatment Plant, together with related expenses (collectively, the “Project”), and to pay the associated financing and issuance costs; BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, THAT: 1. It is hereby determined to be necessary and expedient for the City to undertake the Project, which will promote the development and general welfare of the City and its residents, to borrow money for such purpose and to issue the City’s general obligation bonds therefor. 2. There are authorized to be issued general obligation public improvement bonds of the City in an aggregate principal amount not to exceed $2,350,000 to finance the Project and to pay the associated financing and issuance costs. Such bonds shall be issued pursuant to the provisions of the Public Finance Act of 1991 and, as permitted by such Act, without regard to the requirements, restrictions or other provisions contained in the City Charter. 3. The bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations and form, be executed in such manner and be sold at such time or times and in such manner, all as the Council may hereafter provide by appropriate resolution or resolutions. 4. The bonds shall be general obligations of the City, and the full faith and credit of the City shall be irrevocably pledged to the payment of the principal of and premium, if any, and interest on such bonds. 5. The Clerk of Council, in collaboration with the City Attorney, is authorized and directed to see to the immediate filing of a certified copy of this ordinance in the Circuit Court of the City of Salem, Virginia. 6. This ordinance shall take effect immediately. 7. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III – Renee F. Turk – Passed: Effective: __________________________ Mayor ATTEST: ___________________________ H. Robert Light Clerk of Council City of Salem, Virginia Item #6C Date: 2/14/2022 1 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Request to adopt Resolution 1419 authorizing the issuance, sale and award of General Obligation Refunding Bonds, Series 2022 SUBMITTED BY: Rosemarie B. Jordan, Director of Finance SUMMARY OF INFORMATION: The City needs to issue bonds to fund its share of the costs to renovate the existing anaerobic digestion facilities at the Western Virginia Regional W astewater Treatment Plant. This bond issue is in an aggregate principal amount not to exceed $2,350,000. The bonds will be general obligations of the City and the full faith and credit of the City shall be pledged for the repayment of these bonds. STAFF RECOMMENDATION: Staff recommends adopting the attached resolution authorizing the issuance, sale and award of a general obligation bond, series 2022, in a principal amount not to exceed $2,350,000. COVERING CERTIFICATE FOR RESOLUTION The undersigned City Clerk of the City of Salem, Virginia (the “City”), certifies as follows: 1. Attached hereto is a true, correct and complete copy of a resolution entitled “RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND AWARD OF A GENERAL OBLIGATION PUBLIC IMPROVEMENT BOND OF THE CITY OF SALEM, VIRGINIA, IN THE MAXIMUM PRINCIPAL AMOUNT OF $2,350,000 AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF” (the “Resolution”). The Resolution was adopted at a regular meeting of the Council of the City (the “Council”) held on February 14, 2022, by a majority of all members elected to the Council by an affirmative roll-call vote. 2. The Council meeting at which the Resolution was adopted was held at the time and place established by the Council for its regular meetings. The minutes of such meeting reflect the attendance of the members and their votes on the Resolution as follows: Member Attendance (Present/Absent) Vote (Aye/Nay/Abstain) Renee F. Turk, Mayor James W. Wallace, III, Vice- Mayor Byron Randolph “Randy” Foley William D. Jones John Saunders 3. The Resolution has not been repealed, revoked, rescinded or amended and remains in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Salem, Virginia, this 14th day of February, 2022. (SEAL) City Clerk, City of Salem, Virginia IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, FEBRUARY 14, 2022: RESOLUTION NO. 1419 RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND AWARD OF A GENERAL OBLIGATION PUBLIC IMPROVEMENT BOND OF THE CITY OF SALEM, VIRGINIA, IN THE MAXIMUM PRINCIPAL AMOUNT OF $2,350,000 AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, on February 14, 2022, the Council (the “Council”) of the City of Salem, Virginia (the “City”), adopted an ordinance (the “Ordinance”) authorizing the issuance of general obligation public improvement bonds in an aggregate principal amount not to exceed $2,350,000 to finance the City’s share of the costs to renovate the existing anaerobic digestion facilities at the Western Virginia Water Authority Regional Wastewater Treatment Plant, together with related expenses (collectively, the “Project”), and to pay the associated financing and issuance costs, and none of such bonds has been issued and sold; and WHEREAS, the City has applied to the State Water Control Board for the financing of the Project, and the Virginia Resources Authority (“VRA”), as administrator of the Virginia Water Facilities Revolving Fund (the “Fund”), has agreed to purchase the Bond (as hereinafter defined) pursuant to the terms of a Commitment Letter dated December 22, 2021, and in accordance with the terms of a Financing Agreement between VRA, as Administrator of the Fund, and the City (the “Financing Agreement”), the form of which has been made available prior to this meeting; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA: 1. Authorization and Award of Bond. Pursuant to the authorization contained in the Ordinance, the City hereby provides for the issuance and sale of the Bond in an aggregate principal amount not to exceed $2,350,000 to provide funds, together with other available funds, to pay the costs of the Project and to pay associated financing and issuance costs. The Bond is hereby awarded and sold to VRA in accordance with the terms of this Resolution and the Financing Agreement. 2. Authorization of Financing Agreement. The form of the Financing Agreement submitted to this meeting is hereby approved. The Mayor and the Vice Mayor of the City and the City Manager, any of whom may act, are hereby authorized to execute the Financing Agreement in substantially such form, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officer executing the Financing Agreement, whose approval shall be evidenced conclusively by the execution and delivery thereof. All capitalized terms used but not otherwise defined herein shall have the same meanings as set forth in the Financing Agreement. 3. Bond Details. The Bond shall be issued as a single, registered bond and designated “General Obligation Public Improvement Bond, Series 2022,” or such other series designation as the City Manager may choose (the “Bond”). The Bond shall be dated the date of its delivery to 2 VRA, shall be numbered R-1 and shall mature no later than December 31, 2048. The Bond shall bear interest per year (or Cost of Funds) at a fixed rate to be determined by VRA, and agreed to by the City Manager, prior to the issue date; provided, however, that such interest rate shall not exceed 1.75% per year. The Bond shall provide for VRA to make principal advances from time to time in an aggregate amount not to exceed $2,350,000 and to note such advances on the Bond as moneys are advanced by VRA thereunder. An authorized representative of VRA shall enter the amount and the date of each such principal advance on the Certificate of Principal Advances on the Bond when the proceeds of each such advance are delivered to the City. The Bond shall be payable in principal installments, together with interest (or Cost of Funds), in such amounts and on such dates as shall be determined by the City Manager to be in the best interests of the City. If principal disbursements up to the maximum authorized amount of the Bond are not made, the principal amount due on the Bond shall not include such undisbursed amount. However, unless the City and VRA agree otherwise in writing, until all amounts due under the Bond and the Financing Agreement shall have been paid in full, less than full disbursement of the maximum authorized amount of the Bond shall neither postpone the due date of any semi-annual installment due on the Bond nor change the amount of such installment. In addition, the City shall pay a late payment charge as provided in the Financing Agreement if any payment is not received within 10 days of its due date, but only from its legally available funds. Principal and interest (or Cost of Funds) shall be payable in lawful money of the United States of America by (a) check or draft mailed to the registered owner at its address as it appears on the registration books kept for that purpose by the Registrar (as hereinafter defined) or (b) wire transfer pursuant to the most recent wire instructions received by the Registrar from such registered owner. 4. Prepayment. The Bond shall be subject to prepayment as set forth in the Financing Agreement. 5. Pledge of Full Faith and Credit. The full faith and credit of the City are hereby irrevocably pledged for the payment of the principal of and interest (or Cost of Funds) on the Bond. Unless other funds are lawfully available and appropriated for timely payment of the Bond, the Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay when due the principal of and interest (or Cost of Funds) on the Bond. 6. Execution and Form of Bond. The Bond shall be signed by the Mayor or the Vice Mayor, and the City’s seal shall be affixed thereto and attested by the City Clerk or the Deputy City Clerk. The Bond shall be substantially in the form attached hereto as Exhibit A, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officers signing the Bond, whose approval shall be evidenced conclusively by the execution and delivery of the Bond. 7. Preparation of Printed Bond. The City shall initially issue the Bond in typewritten form. Upon request of the registered owner and upon presentation of the Bond in typewritten form at the office of the Registrar (as hereinafter defined), the City shall arrange to have prepared, executed and delivered in exchange as soon as practicable the Bond in printed form in an aggregate principal amount equal to the unpaid principal of the Bond in typewritten form, in denominations of $5,000 and multiples thereof, of the same form and maturity and registered in such names as requested by the registered owners or their duly authorized attorneys or legal representatives. The printed Bond 3 may be executed by manual or facsimile signature of the Mayor or the Vice Mayor, the City’s seal affixed thereto and attested by the City Clerk or Deputy City Clerk; provided, however, that if both such signatures are facsimiles, no Bond shall be valid until it has been authenticated by the manual signature of the Registrar and the date of authentication noted thereon. The typewritten Bond surrendered in any such exchange shall be canceled. 8. Registration and Transfer of Bond; Persons Treated as Owners. The Council appoints the City Treasurer as paying agent and registrar (the “Registrar”) for the Bond. If deemed to be in the best interests of the City, the Council may at any time appoint a qualified bank or trust company as successor Registrar. Upon surrender of the Bond at the office of the Registrar, together with an assignment duly executed by the registered owner or its duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall execute and deliver in exchange a new Bond having an equal aggregate principal amount, of the same form and maturity and registered in such name as requested by the then registered owner or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner of the Bond as the person or entity exclusively entitled to payment of principal and interest (or Cost of Funds) and the exercise of all other rights and powers of the owner of the Bond, except that regular installment payments shall be paid to the person or entity shown as owner on the registration books on the 15th day of the month preceding each payment date. 9. Mutilated, Lost or Destroyed Bond. If the Bond has been mutilated, lost or destroyed, the City shall execute and deliver a new Bond of like date and tenor in exchange and substitution for, and upon cancellation of, such mutilated Bond or in lieu of and in substitution for such lost or destroyed Bond; provided, however, that the City shall so execute and deliver such new Bond only if the registered owner has paid the reasonable expenses and charges of the City in connection therewith and, in the case of a lost or destroyed Bond, (a) has filed with the City evidence satisfactory to the Registrar that such Bond was lost or destroyed and (b) has furnished to the Registrar satisfactory indemnity. 10. Preparation and Delivery of Bond. The officers of the City are hereby authorized and directed to take all proper steps to have the Bond prepared and executed in accordance with its terms and to deliver it to VRA as the purchaser thereof upon payment therefor. The officers of the City are further authorized and directed to agree to and comply with, on behalf of the City, any and all further conditions and requirements of VRA not inconsistent with this Resolution in connection with its purchase of the Bond. 11. Other Actions. All other actions of officers of the City in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bond are hereby ratified, approved and confirmed. The officers of the City are hereby authorized and directed to execute and deliver all certificates and other instruments considered necessary or desirable in connection with the issuance, sale and delivery of the Bond pursuant to this Resolution and the Financing Agreement. 4 12. Effective Date. This Resolution shall take effect immediately upon the effective date of the Ordinance. Adopted_________________. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders – William D. Jones – Byron Randolph Foley – James W. Wallace, III – Renée F. Turk – Passed: Effective: ____ Mayor ATTEST: ____________ H. Robert Light Clerk of Council City of Salem, Virginia A-1 Exhibit A - Form of Bond REGISTERED REGISTERED R-1 [______ __, 2022] UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF SALEM General Obligation Public Improvement Bond Series 2022 The City of Salem, Virginia (the “City”), a political subdivision of the Commonwealth of Virginia, for value received, acknowledges itself indebted and promises to pay to Virginia Resources Authority, as Administrator of the Virginia Water Facilities Revolving Fund (“VRA”), or its registered assigns or legal representative, the principal sum equal to the sum of the principal advances shown on the Certificate of Principal Advances below, but not to exceed [TWO MILLION THREE HUNDRED FIFTY THOUSAND] DOLLARS ($__________). This bond bear interest (or Cost of Funds) at a fixed rate of ____% per year. Combined installments of principal and interest (or Cost of Funds) of $___________ shall be payable beginning on _______ 1, 20__, and continuing on each ________ 1 and _________ 1 thereafter, with a final installment of $_________ due on ____________ 1, 20__. If principal disbursements up to $___________ are not made, the principal amount due on this bond shall not include such undisbursed amount. However, unless the City and VRA agree otherwise in writing, until all amounts due under this bond and the Financing Agreement (as hereinafter defined) shall have been paid in full, less than full disbursement of $[2,350,000] shall not postpone the due date of any semi-annual installment due on this bond and shall not change the amount of such installment unless the principal amount due hereunder is less than the amount of such installment. If not sooner paid, all amounts due under this bond shall be due and payable on _______ 1, 20__. All amounts due hereunder are payable in lawful money of the United States of America by (a) check or draft mailed to the registered owner at its address as such appears on the registration books kept for that purpose at the office of the City Treasurer, who has been appointed paying agent and registrar (the “Registrar”), on the [15th day of the month preceding] the payment date or (b) wire transfer pursuant to the most recent wire instructions received by the Registrar from such registered owner. No notation is required to be made on this bond of any payment or prepayment of principal. THEREFORE, THE FACE AMOUNT OF THIS BOND MAY EXCEED THE PRINCIPAL SUM REMAINING OUTSTANDING AND DUE HEREUNDER. This bond is authorized and issued pursuant to an ordinance and a resolution adopted by the Council of the City (the “Council”) on [February 14], 2022, a Financing Agreement dated as of _________ 1, 2022, between the City and VRA (the “Financing Agreement”), and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991 (Chapter 26, Title 15.2, A-2 Code of Virginia of 1950, as amended), but, as permitted by such Act, without regard to the requirements, restrictions or other provisions contained in the City Charter. The proceeds of this bond shall be used to provide funds, together with other available funds, to (a) finance the City’s share of the costs to renovate the existing anaerobic digestion facilities at the Western Virginia Water Authority Regional Wastewater Treatment Plant, together with related expenses, and (b) pay the associated financing and issuance costs. Capitalized terms used but not otherwise defined herein shall have the same meanings assigned to them in the Financing Agreement. The full faith and credit of the City are irrevocably pledged for the payment of the principal of and interest (or Cost of Funds) on this bond and the performance of the City’s obligations under the Financing Agreement. Unless other funds are lawfully available and appropriated for timely payment of this bond, the Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay when due the principal of and interest (or Cost of Funds) on this bond. This bond is subject to prepayment to the extent and under terms set forth in the Financing Agreement. This bond is registered as to principal upon the registration books of the Registrar. The registered owner shall be treated as the person or entity exclusively entitled to payment of principal and interest (or Cost of Funds) and the exercise of all other rights and powers of the owner. Transfer of this bond may be registered upon due presentment for registration of transfer by the registered owner. Notwithstanding anything in this bond to the contrary, in addition to the payments of debt service provided for by this bond, the City shall also pay, but only from legally avail able funds, such additional amounts, if any, that may be necessary to provide for payment in full of all amounts due under the Financing Agreement, including late payment charges equal to 5.0% of any payment received by the registered owner of this bond more than 10 days from its due date. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in connection with the issuance of this bond have happened, exist and have been performed, and this bond, together with all other indebtedness of the City, is within every debt and other limitation prescribed by the Constitution and statutes of the Commonwealth of Virginia. IN WITNESS WHEREOF, the City of Salem, Virginia, has caused this bond to be signed by its Mayor or Vice Mayor, the City’s seal to be affixed hereto and attested by the City Clerk or Deputy City Clerk, and this bond to be dated the date first above written. (SEAL) _______________________________________ [Vice] Mayor, City of Salem, Virginia A-3 ATTEST: _______________________________________ [Deputy] City Clerk, City of Salem, Virginia A-4 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto ______________________________________________________________________________ (please print or typewrite name and address including postal zip code of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE ___________________________________ : : : : : : the within bond and all rights thereunder, hereby irrevocably constituting and appointing _____________________________________________________________________________, Attorney, to transfer said bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: _________________ Signature Guaranteed NOTICE: Signature(s) must be guaranteed (Signature of Registered Owner) by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, NOTICE: The signature above must Securities Broker/Dealer, Credit Union or correspond with the name of the Savings Association who is a member of a registered owner as it appears on the medallion program approved by The Securities front of this bond in every particular, Transfer Association, Inc. without alteration or enlargement or any change whatsoever. A-5 CERTIFICATE OF PRINCIPAL ADVANCES The amount and date of principal advances not to exceed the face amount hereof shall be entered hereon by an authorized representative of the registered owner of this bond when the proceeds of each such principal advance are delivered to the City. Amount Date Authorized Signature 043454.0000035 EMF_US 88011012v5 Item #6D Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Request to amend School Operating Fund and School Grants Fund budgets as approved by the School Board on January 11, 2022 SUBMITTED BY: Rosemarie B. Jordan, Director of Finance SUMMARY OF INFORMATION: The School Operating Fund and School Grants Fund budgets were amended for fiscal year 2021-2022 by the School Board at their meeting on January 11, 2022. The Board amended the School Operating Fund budget to increase revenues and expenditures by $20,000. The School Grants Fund budget was amended to increase revenues and expenditures by $175,219. The attached memo details the appropriation changes. FISCAL IMPACT: Appropriation changes totaling $20,000 and $175,219 are to be made to the School Operating Fund and the School Grants Fund, respectively. STAFF RECOMMENDATION: Staff recommends that Council approve the School Board’s appropriation changes of $20,000 and $175,219 to the School Operating Fund and the School Grants Fund, respectively, per the attached report. Salem City Schools Budget Adjustments Report January 11, 2022 Summary of Issue: At times during the year, additional funding may be r eceived by the school division through donation, grant, increased funding due to ADM (Average Daily Membership) increases, or some other means. This revenue increases the budget requiring Board approval. The general fund budget needs to be adjusted at this time because new funds have been awarded or received since budget adoption and they need to be accounted for on the books. On October 29, 2020, Salem applied for a Diesel Emissions Reduction Act (DERA) school bus rebate through the EPA, where one of our current buses must be scrapped and taken out of service and a rebate of $20,000 would be given to go towards the purchase of a replacement bus to help with reductions in diesel emissions and exposure. The EPA had multiple delays in awarding these grants, and we were notified back in March of 2021 that we were officially selected for funding under the 2020 rebate program. After receiving that notification, the required steps were taken for providing proof of scrapping the vehicle, etc. so that the funds could be sent to us to complete the rebate process. On December 9, 2021, the funds were finally wired to us and this board report will allocate these funds appropriately. The replacement bus was ordered back in March when we received the official letter and is currently used in our fleet. The grant fund budget needs to be adjusted at this time because a new grant has been awarded since budget adoption and they need to be accounted for on the books. On January 5, 2021, we received notification from the Virginia Department of Education (VDOE) that we were awarded a School Security Equipment grant in the amount of $175,219. The approval is to purchase surveillance cameras, vaping detectors, uninterrupted power supply for the security equipment, two-way radios and technology equipment and software to support security systems at all locations except South Salem. Policy Reference: DA-BR Budget Transfers Fiscal Impact: These budget adjustments will increase the revenue and expenditure budgets in the School General Fund by $20,000 and in the School Grants Fund by $175,219 (attachment A). Recommended Action: Move approval of the budget adjustments in the School General Fund and School Grants Fund as presented and recommend that City Council approve the same To set up budget for new revenues received in FY 22 Account Code Description Revenue Amount Expenditure Amount General Fund 30-110-00-00-9-000-61530 DERA National Grant 66.039 20,000.00$ 30-130-63-63-9-350-78030 School Buses and Other Vehicles 20,000.00$ 20,000.00$ 20,000.00$ Grant Fund 32-340-00-00-9-000-61301 School Security Grant 175,219.00$ 32-340-64-64-2-460-73181 Repair/Maint - Other Contracted - Carver 45,000$ 32-340-64-64-2-460-73182 Repair/Maint - Other Contracted - West 35,000$ 32-340-64-64-2-460-73183 Repair/Maint - Other Contracted - East 30,219$ 32-340-64-64-3-460-73180 Repair/Maint - Other Contracted 30,000$ 32-340-64-64-4-460-73180 Repair/Maint - Other Contracted 35,000$ 175,219.00$ 175,219.00$ Salem City Schools Budget Adjustments 1/11/2022 Attachment A Item #6E Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Appropriate grant funds awarded by Community Foundation SUBMITTED BY: Rosemarie B. Jordan, Director of Finance SUMMARY OF INFORMATION: The City of Salem was awarded $50,000 from Community Foundation for gateway signage. The grant was secured by Virginia’s Blue Ridge for a consistent signage plan throughout the region. The initial sign under review will be at the entrance to Salem from Roanoke City where Main Street meets Melrose Avenue. The sign will be two -sided and will be situated in the median on the Salem side. A local match of $25,000 is required and is available in the Tourism budget, account 10-053-8170-55883. FISCAL IMPACT: Proceeds from the grant will cover the cost of items not included in the FY22 operating budget. STAFF RECOMMENDATION: Appropriate $50,000 in grant revenue to account 10-053-0100-47095 and increase the budget for the grant - other account, 10-053-8170-55957, by $50,000. It is also recommended that any of this grant not spent in the current fiscal year be administratively appropriated in the subsequent fiscal year. Budget Entry Date GL Account Account Name Increase/   (Decrease)Description 2/14/2022 10‐053‐0100‐47095 Grants ‐ Other 50,000       Appropriate grant funds per 2/14 council action 2/14/2022 10‐053‐8170‐55957 Grants ‐ Other 50,000       Appropriate grant funds per 2/14 council action Item #6F Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Request appropriation of proceeds from the sale of equipment. SUBMITTED BY: Rosemarie B. Jordan, Director of Finance SUMMARY OF INFORMATION: The City sells equipment that is no longer used on GovDeals, which is an on-line auction established specifically for governments to use to dispose of surplus equipment. A 1995 International 4700 Truck was sold on GovDeals in January and proceeds of $10,830 were received. The proceeds will be used to purchase new Street equipment. FISCAL IMPACT: Proceeds from the sale of equipment will be used to purchase new Street equipment. STAFF RECOMMENDATION: Staff recommends appropriating revenue of $10,830 to account 10-012-0100-47050, Sale of Equipment, and increase the expenditure budget for account 10-018-4200-58001, Machinery & Equipment, by $10,830. It is also recommended that any proceeds not expended in the fiscal year received be administratively appropriated in the subsequent fiscal year. Budget Entry Date GL Account Account Name Increase/   (Decrease)Description 2/14/2022 10‐012‐0100‐47050 Sale Of Equipment 10,830       Appropriate proceeds from sale of equipment per 2/14 Council action 2/14/2022 10‐018‐4200‐58001 Machinery And Equipment 10,830       Appropriate proceeds from sale of equipment per 2/14 Council action Item # 6G Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Consider setting the date for a public hearing in accordance with Section 98-94 of THE CODE OF THE CITY OF SALEM, VIRGINIA, for the issuance of Certificates of Public Convenience and Necessity for the next twelve (12) months. (Suggest March 14, 2022). SUBMITTED BY: Rob Light, Assistant City Manager SUMMARY OF INFORMATION: As prescribed in section 98-94 of the Code of the City of Salem: The council shall conduct a hearing each year between January 1 and March 31 for the purpose of determining the number of taxicabs for which certificates shall be issued during the next year and for the purpose of determining to which persons such certificates shall be issued, after a consideration of the factors prescribed in section 98-87. No certificate shall be renewable as a matter of right, but the council shall decide in the exercise of its sound discretion and after consideration of the factors prescribed in section 98-87 to which persons such certificates shall be issued for the next certificate year. Such hearing shall be public, after notice thereof has been given by mail to all holders of certificates and applicants for certificates, at the address shown on such certificates and applications and after notice thereof by publication at least once and not less than ten days prior to the hearing in some newspaper published or having a general circulation in the city. Any such hearing may be continued from time to time without further notice. FISCAL IMPACT: None STAFF RECOMMENDATION: Staff recommends Council set a public hearing date of March 14, 2022 Salem, VA Code of Ordinances Sec. 98-94. -Council's annual hearing. The council shall conduct a hearing each year between January 1 and March 31 for the purpose of determining the number of taxicabs for which certificates shall be issued during the next year and for the purpose of determining to which persons such certificates shall be issued, after a consideration of the factors prescribed in.section 98-87. No certificate shall be renewable as a matter of right, but the council shall decide in the exercise of its sound discretion and after consideration of the factors prescribed in section 98-87 to which persons such certificates shall be issued for the next certificate year. Such hearing shall be public, after notice thereof has been given by mail to all holders of certificates and applicants for certificates, at the address shown on such certificates and applications and after notice thereof by publication at least once and not less than ten days prior to the hearing in some newspaper published or having a general circulation in the city. Any such hearing may be continued from time to time without further notice. (Code 1969, § 28-37) about:blank 2/5/2020 Item 6G 2-14-22 Item # 6H Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Resolution requesting the Virginia Department of Transportation (VDOT) approve City Council’s request for the temporary closure of Main Street on September 10, 2022 for the Olde Salem Days event SUBMITTED BY: Jay Taliaferro, City Manager SUMMARY OF INFORMATION: The Rotary Club of Salem and City staff have begun planning for the return of the Olde Salem Days event on September 10, 2022. This popular event requires the temporary closure of multiple street sections in the downtown area on this day from 5:30 a.m. to 7:00 p.m. The closure of the Main Street (US Route 460) section from Chestnut Street/Lewis Avenue to Thompson Memorial Drive requires approval from VDOT. This resolution will provide a formal request to VDOT by the City to approve this temporary closure on Main Street. All other street sections requiring closure during the event can be administratively approved by the City. STAFF RECOMMENDATION: Staff recommends Council approval of this resolution. IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, February 14, 2022: RESOLUTION 1418 WHEREAS, the Salem Rotary Club has planned activities in the downtown area of Salem to involve citizens on September 10, 2022, from 5:30 a.m. to 7:00 p.m. that will require the closing of Main Street (Route 460) between Chestnut Street and Lewis Avenue to Thompson Memorial Drive; and WHEREAS, Council concurs in the request from The Rotary Club of Salem for the closing of Main Street for this date and time and has developed alternate routing for traffic around the downtown area; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that Council doth request the Virginia Department of Transportation to concur and approve Council's request to allow the closing of Main Street (Route 460) between Chestnut Street and Lewis Avenue to Thompson Memorial Drive on Saturday, September 10, 2022; BE IT FURTHER RESOLVED that a certified copy of this Resolution be forwarded to the Virginia Department of Transportation. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Renée F. Turk - ATTEST: __________________________ H. Robert Light Clerk of Council City of Salem, Virginia ltem#6I Date: 2/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: AGENDA ITEM: SUBMITTED BY: February 14, 2022 Consider adoption of Resolution 1420 requesting the Commonwealth Tra nsportation Commissioner and the Commonwealth Transportation Board to approve and accept certain new streets for maintenance payments. William L. Simpson, Jr., P.E., City Engineer SUMMARY OF INFORMATION: As part of the construction of North Oaks subdivision and the St John's Enterprise Center, roads were constructed for access to these two developments. North Oaks Drive, Bentwood Court, Live Oak Court, and Deer Run Circe were all part of the North Oaks Subdivision, while St John Road is part of St John Enterprise Center. All of the above roads were constructed in accordance with all applicable state and local standards and were inspected by City and VDOT staff to ensure compliance with said standards. These roads were all found to be in compliance and acceptable to be added to the City's list of maintained roads. FISCAL IMPACT: All maintenance for the above mentioned roads are paid for through State Highway Maintenance funds provided by the Virginia Department of Transportation. STAFF RECOMMENDATION: Staff recommends approval of this resolution for the acceptance of roads into the City's maintenance system. IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, FEBRUARY 14, 2022: RESOLUTION 1420 A RESOLUTION REQUESTING THE COMMONWEALTH TRANSPORTATION COMMISSIONER AND THE COMMONWEALTH TRANSPORTATION BOARD TO APPROVE AND ACCEPT CERTAIN NEW STREETS FOR MAINTENANCE PAYMENTS. WHEREAS, there have been constructed in the City certain new streets complying in all respects with the requirements of Section 33.1-41.1 of the 1950 Code of Virginia, as amended; and WHEREAS, said new streets are described in that certain Request for Street Additions or Deletions for Municipal Assistance Payments prepared by the City Engineer for submission to Urban Division, Virginia Department of Transportation; and WHEREAS, said new streets are known as St. John Road, North Oaks Drive, Bentwood Court, Live Oak Court, and Deer Run Circle; WHEREAS, said Request to Urban Division, Virginia Department of Transportation, requests municipal assistance payments for said new street from the Commonwealth Transportation Commissioner and the Commonwealth Transportation Board; and WHEREAS, it is in the best interests of the City to request said assistance payments for utilization in maintaining streets in the City; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that the Request for Municipal Assistance Payments be immediately submitted to the Commonwealth Transportation Commissioner, the Commonwealth Transportation Board, and any other appropriate entity, requesting approval and acceptance of the foregoing street for the purpose of receiving maintenance payments in accordance with the provisions of Section 33.1-41.1 of the 1950 Code of Virginia, as amended. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Renée F. Turk - ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item #6J Date: 02/14/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT THE SALEM CIVIC CENTER MEETING DATE: February 14, 2022 AGENDA ITEM: Consider the adoption of Resolution 1421 regarding the amendment of Miscellaneous Fees for 2021-2022 SUBMITTED BY: Rob Light, Assistant City Manager SUMMARY OF INFORMATION: The Miscellaneous Fees are adopted by resolution each fiscal year along with the budget. The fee for the purchase of a dumpster by a City business is currently $1,440. The City has realized an increased cost for the purchase of dumpsters that exceeds this fee. This resolution would increase the fee for the sale of a dumpster to $1,800 in order to address this disparity. STAFF RECOMMENDATION: Staff recommendations is to review and adopt an amended Miscellaneous Fees Resolution 1421 for the 2021-2022 fiscal year. IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, FEBRUARY 14, 2022: RESOLUTION 1421 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that the following fees and policies for the 2022 fiscal year be amended in the City of Salem effective upon passage of this resolution: DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 COMMUNITY DEVELOPMENT FEES: Appeal to Uniform Statewide Building Code $ 250.00 Board of Building Code Appeals Fee $200.00 and petitioner pays the full advertisement cost Boundary Line Adjustment or Vacation of Interior Lot Lines $ 75.00 Building Plan Review Commercial Construction (New or Expansion) 10% of permit fee or $30.00, whichever is greater to be paid when dropping plans off at the office Building Plan Review Residential $ 30.00 Building Plan Review with a Stormwater Plan $250.00 for under an acre Building Plan Re-Review $ 75.00 Certificate of Occupancy $ 30.00 Certificate of Occupancy Temporary $ 30.00 Chicken Permit $ 25.00 Commencing Work without a Building Permit Double of the permit up to $250.00 Demolition Permit Use the Uniform Statewide Building Code Table and is based on the cost of the demolition Elevator Inspection Fee $ 30.00 Erosion and Sediment Control $100.00 plus $50.00 per acre greater than one acre Erosion and Sediment Control Agreement in Lieu of Plan $ 50.00 Land Disturbing Fee $ 30.00 Litter Cleanup on Private Property Fee $250.00 plus 2 $25.00 administrative fee up to one hour, plus $200.00 each additional hour DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 Community Development Fees Continued Home Occupation Fee $ 30.00 Manufactured Home Park Operation Permit $ 20.00 Mowing Personal Property Fee $250.00 plus $25.00 administrative fee up to one hour, plus $200.00 each additional hour Planning Unit Developments (PUD) Review and Approval $200.00 plus $25.00 per acre greater than one acre plus petitioner pays full advertisement cost Property Maintenance Code Compliance $ 30.00 Re-Inspection Code Compliance $ 30.00 Refund of Building Permit Retain $30.00 or 25% of the permit, whichever is higher Rezoning $200.00 plus $25.00 per acre greater than one acre plus petitioner pays full advertisement cost Right of Way Permit $50.00 for a 30- day permit $100.00 for a 60- day permit If worked started without a permit the cost is doubled Site Plan Approval $500.00 plus $25.00 per acre greater than one acre. This fee 3 covers two reviews: the initial review and one re- review. A fee of $75.00 will be charged for additional reviews. DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 Community Development Fees Continued Special Exception Permit and Use Not Provided $200.00 plus $25.00 per acre greater than one acre plus petitioner pays full advertisement cost State Levy Tax on all Permit Fees (Pass through to the State) 2% Storm Water Appeal $ 200.00 Street and Alley Closure Review Fee $250.00 plus the cost of the advertising Subdivisions Minor (5 or less lots) $ 100.00 Subdivisions Major (6 or more lots or any subdivision involving the creation of public right of way) $220.00 plus $45.00 per lot Temporary Electric Inspection Fee $ 30.00 Variances (Board of Zoning Appeals) $200.00 plus petitioner pays full advertisement cost Zoning Certification Letter (Charge for background investigation for zoning and building compliance, not just zoning designation) $ 100.00 Zoning Permit $ 20.00 GENERAL FEES: Return Check Charge $ 40.00 East Hill Cemetery Single Space for Burial $800.00 (no charge for Salem residents ages 0- 17) East Hill Cemetery Open/Close for full burial $ 800.00 4 DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 General Fees Continued East Hill Cemetery Open/Close for cremains $ 450.00 East Hill Cemetery Open/Close for children No charge (Salem residents ages 0- 17) Farmer’s Market - First-time Application – For all potential Vendors who have not submitted an application in 3 years, a one- time processing fee of $35.00 is required with the application. $ 35.00 Farmer’s Market Rental Daily Fee-Per day per space. $5.00 per week day, $10.00 on Saturday Farmer’s Market Rental Monthly Fee – Please indicate specific months on application $ 35.00 Farmer’s Market Rental Full Season - $30.00 per month for the full season (April 1- December 31). Two payments allowed - $135.00 due by April 1 and September 1. $ 270.00 Fireworks Permit $100.00 per event Fire/EMS Incident Reports $10.00 per request Police Fingerprints $ 10.00 Police Incident Reports $10.00 per request Taxicab Service Charge Fees: Application Fee $ 3.00 Renewal of License Fee $ 1.00 Background check for each application $ 20.00 Yard Sale Permit $ 5.00 FOIA Fees ( Freedom of Information Act): Staff member search time, charged at an estimated rate of $5.00 per quarter hour Computer search time, requests for materials which exist electronically, or transmission of electronic files are charged at the rate of $8.00 per quarter hour Attorney Fees Charged at current rate to the extent allowed by law Large format printing Actual cost for large print plus staff time rate estimated at $5.00 5 per quarter hour DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 General Fees Continued FOIA Fees Continued Electronic recordings Actual cost for electronic recordings plus staff time rate estimated at $5.00 per quarter hour Computer print outs $0.10 per page Photocopies (including those necessary to perform reactions) $0.10 per page Incidental out-of-pocket costs necessary to assemble the records (ex: phone, postage or courier charges) Will be itemized If the requester has asked for an advanced determination of the cost, or if the cost exceed $200.00, the requester shall be notified in advance. The City Manager may, before continuing to process the request, require the requester to agree to payment of a deposit not to exceed the amount of the advance determination. Library Fines and Fees: Adult material except hot items: video’s and games $0.20 per day; $5.00 maximum All Hot items: video’s and games $1.00 per day; $5.00 maximum Children’s material except hot items: video’s and games $0.20 per day; $1.00 maximum Damaged or missing CD or DVD case $ 1.00 Fax Services $3.00 for the first page; $1.00 per additional page Interlibrary Loan Fee $4.00 per item Lost books on CD-Adult or Children Retail cost plus processing fee of $5.00 Lost items Retail cost plus processing fee of $5.00 Lost Music Retail cost plus processing fee of $5.00 6 DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 General Fees Continued Library Fines and Fees Continued Lost Video’s or DVD’s Retail cost plus processing fee of $5.00 Missing barcode $ 0.25 Notary Fee $5.00 per notary Out-of-State Library Card $15.00 per year Photocopies $0.20 per page Printing Services Black/White $0.20 per page; Color $0.50 per page Processing fee for lost items-except paperbacks $ 5.00 Processing fee for lost paperbacks $ 1.00 Replacement CD Audio Book $ 10.00 Replacement Library Card $ 1.00 Temporary Library Card (Non-resident) No charge Sidewalk Dining Permit $ 100.00 Parks and Recreation Fees: Adult Sports Team Participation Fee $350.00 – Softball and Basketball $400.00 – Touch Football Participation Fee (Non-resident/Tuition Students only) $50.00 per sport Sports Uniform Fee $40.00 per sport Late Registration for all youth sports $ 25.00 Youth Summer Camps-Baseball, Basketball, Cheerleading, Football, Lacrosse, Soccer, Softball, Tennis and Volleyball $10.00 per participant Taliaferro Complex Facility Fee $1.00 on tickets equal to or > $8.01 $0.50 on tickets equal to or < $8.00 Sanitation Fees: Bulk Collection/Pickup If the debris placed to be picked up becomes a health, safety or nuisance, 7 then the city will charge $250.00 plus $25.00 administrative fee up to one hour, plus $200.00 each additional hour. No charge otherwise. DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 General Fees Continued Sanitation Fees: Dumpster Collection Fees: Dumpster Collection Fee-per dumpster, collected on a weekly schedule $ 24.00 Dumpster Once a Week Pickup $ 104.00 Dumpster Twice a Week Pickup $ 208.00 Dumpster Three Times a Week Pickup $ 312.00 Dumpster Four Times a Week Pickup $ 416.00 Dumpster Five Times a Week Pickup $ 520.00 Dumpster Service-Collection Fee for Extra Pickup with a Contract $ 28.00 No Charge for companies participating in City’s Cardboard Recycling Program No Charge Dumpster Service-Collection Fee for each call-in not on a contract $ 50.00 Lease of Dumpster-monthly $ 14.00 Purchase a Dumpster $ 1,440.00 $1,800.00 Toter Purchase Fee (additional toter) $ 65.00 each Toter Replacement Fee (first toter) $10.00 per month $1.00 per month if qualify for Tax Relief for the Elderly or Veteran Relief from the Commissioner of the Revenue Office 8 DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 UTILITY FEES: Bulk Water Charge $50.00 plus $5.00 per 1,000 gallons Fire Hydrant Connection Fees: Deposit $500.00 for use of a back flow meter. This is refunded when the meter if returned, pending any outstanding charges owed the city or damage to the returned meter. Connection fee $ 10.00 Water Usage The rate of the small commercial rate with a base fee plus the rate per 1,000 gallons used per month: See the City of Salem Water and Sewer Rates on their website: www.salemva.gov Minimum charged 10,000 gallons will be charged per month. Any water used over 10,000 gallons will be charged at actual gallons used per month. Cost to move the meter Contractor is not allowed to move the meter and the cost for the city to move the meter is $10.00 each occurrence. Locate Lateral in Existing Sewer $250.00 plus $100.00 per hour Low Pressure Complaint (If not within City system) $ 100.00 9 DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 Utility Fees Continued Meter Check for Accuracy-Electric $50.00 (payment of fee is required for this service and will be refunded if the degree of error is greater than 2%) Meter Re-reads $10.00 for a second trip Penalty for Late Payment $5.00 per service if residential or 5% of bill if commercial or industrial. Reconnect Fee for Non-Payment $25.00 for Residential or Small General Service $75.00 for Residential or Small General Service if done after hours or weekends All other customers will be charged the cost of making the reconnection, with a minimum of $250.00 Customers where service has been disconnected for fraudulent use of electricity or where access to the meter has been denied will be actual cost of making the reconnection, with a minimum of $250.00 10 Approved in the Electric Book of Rates DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 Utility Fees Continued Sewer Availability Fees: 5/8” or ¾” Water Meter Size $ 1,000.00 1” Water Meter Size $ 2,000.00 1 ½” Water Meter Size $ 3,000.00 2” Water Meter Size $ 6,000.00 3” Water Meter Size $ 12,000.00 4” Water Meter Size $ 20,000.00 6” Water Meter Size $ 40,000.00 8” Water Meter Size $ 75,000.00 Sewer Backup Complaint (if not found in City System) $ 200.00 Sewer Cleanout Installation Contact Sewer Department for a 50/50 contract Sewer Connection Fees: 6” or smaller – based on lateral diameter The greater of $2,100.00 or actual cost plus 29% Larger than a 6” – based on lateral diameter The greater of $2,100.00 or actual cost plus 29% Shut off Water Service at Meter after hours $ 100.00 Utility Turn on Fees for Electric/Water Service $ 10.00 per service Water Availability Fees: 5/8” or ¾” Water Meter Size $ 2,000.00 1” Water Meter Size $ 4,000.00 1 ½ “ Water Meter Size $ 7,000.00 2” Water Meter Size $ 13,000.00 3” Water Meter Size $ 25,000.00 4” Water Meter Size $ 40,000.00 11 DESCRIPTION PRESENT FEE 2021-2022 AMENDED FEE 2021-2022 Utility Fees Continued Water Availability Fees: 6” Water Meter Size $ 80,000.00 8” Water Meter Size $155,000.00 Water Connection Fees: 5/8” or ¾” Water Meter Size $ 1,500.00 1” Water Meter Size $ 1,800.00 1 ½” Water Meter Size $ 2,700.00 2” Water Meter Size $ 3,300.00 Larger than 2” Water Meter Size Actual cost plus 29% Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Reneé F. Turk - ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item #6K Date: 2/14/2022