The URL can be used to link to this page

Home My WebLink About11/12/2024 - City Council - Agenda -Regular Agenda Tuesday, November 12, 2024, 6:30 PM Work Session, 5:45 PM Council Chambers Conference Room, City Hall, 114 North Broad Street, Salem, Virginia 24153 Regular Session, 6:30 PM, City Hall, 114 North Broad Street, Salem, Virginia 24153 WORK SESSION 1. Call to Order 2. New Business A. Discussion Items 1) Update on borrowing results for Water/Sewer Department Projects - Rosemarie Jordan, Director of Finance 2) Follow-up on Potential Code Changes - Mary Ellen Wines, Planning and Zoning Administrator 3. Adjournment REGULAR SESSION 1. Call to Order 2. Pledge of Allegiance 3. Bid Opening, Awards, Recognitions 4. Consent Agenda A. Citizen Comments Comments from the public, limited to five minutes, not already having a public hearing at the same meeting. B. Minutes Consider acceptance of the October 24, 2024, Special Joint Work Session with the Salem City School Board and the October 28, 2024, Regular Meeting minutes. 5. Old Business Page 1 of 73 6. New Business A. Resolution for Energy Contracts Resolution 1486 authorizing the City Manager to finalize and execute EEI Master Service Agreements with multiple counterparties and a subsequent single Confirmation Agreement in forms acceptable to the City Attorney with the least-cost supplier for the purchase of a fixed load shape energy product for the term of June 1, 2026, through December 31, 2028. B. Resolution for Battery Storage Resolution 1487 authorizing the City Manager to execute a Battery Energy Storage Services (BESS) agreement and other associated documents between Delorean Power, LLC dba Lightshift Energy and the City of Salem, in a form acceptable to the City Attorney. C. Resolution 1488- Performance Bonds Consider Resolution 1488 delegating the establishment of amounts and approval of performance bonds upon completion of the site or subdivision plan approval process to Community Development as an administrative function. D. Public Improvement Bonds Hold a public hearing and consider adoption of ordinance authorizing the issuance and sale of general obligation public improvement bonds series 2024 in an aggregate principal amount not to exceed $3,700,000. (As advertised in the October 24 and October 31, 2024 issues of the Salem Times Register.) Audit - Finance Committee E. General Obligation Public Improvement Bonds Consider adoption of Resolution 1485 authorizing the issuance, sale and award of General Obligation Improvement Bonds, Series 2024. Audit - Finance Committee F. Appropriation of Funds Consider request to amend the School Operating Fund, School Cafeteria Fund and School Grants Fund budgets as approved by the School Board on October 8, 2024. Audit - Finance Committee G. Appropriation of Funds Consider request to amend the School Grants Fund, School Capital Projects Fund and School Reserve Fund budgets as approved by the School Board on October 24, 2024. Audit - Finance Committee H. Appropriation of Funds Request to Appropriate Fund Balance for Software Purchase. Audit - Finance Committee I. New Metal Building - 744 Electric Road Consider setting bond for erosion and sediment control and landscaping for New Metal Building - 744 Electric Road. Audit - Finance Committee Page 2 of 73 J. School Board Appointment Consider the appointment of two School Board positions for three-year terms ending December 31, 2027. K. Boards and Commissions Consider vacancies to various boards and commissions. 7. Adjournment Page 3 of 73 City Council Special Meeting MINUTES Thursday, October 24, 2024, 5:30 PM Joint Meeting with Salem City School Board Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 1.Call to Order A.Roll Call 1)Renée Ferris Turk, Mayor Salem City Council 2)Dr. Nancy Bradley, Chair Salem City School Board A Joint Special Meeting/Work Session of the Council of the City of Salem, Virginia, along with the City of Salem School Board was held in Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia, 24153, on October 24, 2024, at 5:30 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 (absent), William D. Jones, and H. Hunter Holliday; Chris Dorsey, City Manager; H. Robert Light, Assistant City Manager and Clerk of Council; Rosemarie B. Jordan, Director of Finance; Clark Ruhland, Communications Specialist; Todd Sutphin, Director of Streets and Maintenance; and Crystal Williams, Assistant to the City Manager. Also present were: Dr. Curtis Hicks, Superintendent; Dr. Forest Jones, Director of Administrative Services; Mandy Hall, Chief Financial Officer; Jennifer Dean, Assistant Superintendent of Instruction; and Susan Young, Clerk of the Board and Executive Secretary. School Board members present were: Dr. Nancy Bradley, Chair; Andy Raines, Vice-Chair; and School Board members Teresa Sizemore (remote participation), and Macel Janoschka; and the following business was transacted; Mayor Turk reported that this date, place, and time had been set for the Council to hold a Joint Work Session and called the meeting to order. Item #4.B. Date: 11/12/2024 Page 4 of 73 Nancy Bradley, Chair of the Salem City School Board, called the School Board meeting to order. A motion was made by Andy Raines to approve the School Board's agenda for this evening. Macel Janoschka seconded the motion. All members of the School Board voted by voice vote to approve the agenda. 2. New Business A. Discussion Items Joint Work Session with the Salem School Board to include: (1) Presentation of the Salem City Schools Capital Improvement Plan Mrs. Hall began the presentation by reviewing a recommendation to amend the previously approved CIP to reflect the full amount of the meals tax transfer thereby increasing it from $1,861,701 (the amount known at the August school board meeting) to $2,018,973 (an increase of $157,272). Mrs. Hall further noted a necessary project was also added to the list of requests per City Maintenance. Recently, while cleaning the boilers at ALMS, it was discovered that four boiler burners needed replacement; an essential function of heating the building. Therefore, $27,975 was added under City Requests on the list to address the need. Motion by Macel Janoschka, second by Andy Raines to approve the Capital Improvement Plan with the amended total of $1,887,777 as presented. Final Resolution: Motion Carries Yea: Nancy Bradley, Andy Raines, Teresa Sizemore, Macel Janoschka Mrs. Hall and Dr. Hicks presented an overview of the division’s Capital Improvement Plan (CIP). The amounts of CIP Revenue for 2024-2025 were presented as well as grant amounts and required expenditures for repairs. The plan also detailed Salem City Maintenance requests and School Safety audit recommendations. Dr. Hicks highlighted various projects being funded and expanded on one; an AI Weapon Detection System. Dr. Hicks noted school safety is always a top priority for the board and division leadership. He shared he’d had the opportunity to see demonstrations of the project that showed it could further improve the safety of our students and staff. Page 5 of 73 Todd Sutphin, Director of Streets and Maintenance for the City of Salem presented an overview of roofing conditions for each of the Salem City Schools. He pointed out the improvements that had been made from 2019 to the present. He also shared updates on how the epoxy coating had significantly improved the condition of roofs throughout the division. (2) Discussion of State Championship signs. Dr. Hicks then reviewed proposals for updating the state championship signs throughout the city. Dr. Hicks noted the proposed changes would better inform citizens and visitors about the long, rich, and varied history of state championships in Salem. Discussion was held and questions were asked by both Council and School Board members. City Council thanked Nancy Bradley for her service on the board for the many years she has served. Members of the School Board also thanked Bill Jones for his service to the City of Salem for the many years he has served. 3. Adjournment There being no further business, Mayor Turk and Chair Bradley adjourned the respective meetings of the Council and the Salem City School Board at 6:30 p.m. Page 6 of 73 City Council Meeting MINUTES Monday, October 28, 2024, 6:30 PM Regular Session 6:30 P.M. Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 WORK SESSION WORK SESSION IS CANCELLED FOR OCTOBER 28, 2024. 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 (participated remotely), William D. Jones, and H. Hunter Holliday; with Renée Ferris Turk, Mayor, presiding together with Chris Dorsey, City Manager; Rob Light, Assistant City Manager and Clerk of Council; Rosemarie B. Jordan, Director of Finance; Will Simpson, City Engineer; Clark Ruhland, Communications Specialist; and Jim Guynn, City Attorney. 2.Pledge of Allegiance Mayor Turk requested that Mr. Light read a request from Councilman Foley to participate remotely in this Council meeting. The request from Councilman Foley stated: "in accordance with Section 2.2- 3708.3 B(1) of the Code of the Commonwealth of Virginia and the Remote Participation Policy of the City of Salem, I hereby request to participate remotely due to a temporary medical condition that prevents my physical attendance. William Jones motioned to accept the remote participation of Councilman Foley. H. Hunter Holliday seconded the motion. Ayes: Holliday , Jones, Turk, Wallace Abstain: Foley Page 7 of 73 3.Bid Openings, Awards, Recognitions Mayor Turk recognized Stuart Hill and his son, Gabe Hill, from Boy Scout Troop #51. Gabe shared that he was working on his Citizenship In the Community Merit Badge and that one of the requirements was to attend a local meeting. Mayor Turk welcomed them and thanked them for their attendance this evening. She shared the Council meeting schedule. 4.Consent Agenda A.Citizen Comments Comments from the public, limited to five minutes, on matters not already having a public hearing at the same meeting. John Breen, 142 Bogey Lane, was the first citizen to address Council this evening. He expressed concerns in relation to City Code, Code enforcement, blight, and nonconforming issues. He offered six governing principles for consideration of adoption by Council. He also requested that Council create an annual Citizenship Leadership Seminar and offered specific suggestions for this. He offered $1,500 as seed money for this seminar if Council was amenable to such a seminar. Ronald Thompson, 1000 W. Riverside Drive, expressed continued concern about trees falling on their property. He noted that they had discussed the situation with Community Development and updated Council and staff on their situation since the previous meeting at which he had spoken. B.Minutes Consider acceptance of the October 7, 2024, Work Session and Regular Meeting minutes. The minutes were approved as written. C.Financial Reports Consider acceptance of the Statement of Revenues and Expenses for the three months ending September 30, 2024. The financial reports were received. 5.Old Business A.Amendment to the City Code - Chapter 106 Zoning Consider ordinance on second reading enacting Chapter 106, Zoning, Article III, Use and design standards, section 106-310.25 and amending Chapter 106, Zoning, Article II, District Regulations, Section 106-214.2(B)(5) Commercial use Types, Article VI. Definitions and use types, Section 106-602.9 Page 8 of 73 Commercial use types and adopting Section 106-310.25 pertaining to retail sales, Smoke Shop of the CODE OF THE CITY OF SALEM, VIRGINIA (Adopted on first reading at the October 7, 2024, meeting.) Mayor Turk asked Mr. Simpson to share information on this item for the benefit of the public, He explained that this was a new section that would be added to the City Code that would regulate specifically vape shops. This would add in a special use and would give regulations for where these shops can be located, what kind of signage they can have, and the type of advertising in windows that can be used in those different types of shops. Mayor Turk noted that this was a law passed by the General Assembly that gives localities the power to be able to put restrictions on where they can be located, visibility, and signage. She added that Council had been provided with maps in their packets indicating the location of current schools, daycare centers, and other sites that deal with children. William Jones motioned to adopt ordinance on second reading enacting Chapter 106, Zoning, Article III, Use and design standards, section 106-310.25 and amending Chapter 106, Zoning, Article II, District Regulations, Section 106-214.2(B)(5) Commercial use Types, Article VI. Definitions and use types, Section 106-602.9 Commercial use types and adopting Section 106-310.25 pertaining to retail sales, Smoke Shop of the CODE OF THE CITY OF SALEM, VIRGINIA. H. Hunter Holliday seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace 6.New Business A.Vacation of Right of Way Hold a public hearing on the request of Mount Sinai Properties-Salem, LLC, a Virginia limited liability company, to consider permanently vacating and disposing of an approximate 1.908 acres of a dead-end street section of Glenmore Drive and consider adoption of Resolution 1484 appointing viewers to review and report on this request. (As advertised in the October 3 and 10, 2024, issues of the Salem Times-Register). Mayor Turk asked Vice-Mayor Wallace to open the public hearing and noted that she would recuse herself because one of the potential viewers was a relative of hers. Vice-Mayor Wallace opened the public hearing. Phoebe Brannock, addressed Council on behalf of Carter Machinery, which is a Page 9 of 73 parent company of Mount Sinai Properties-Salem, LLC. She noted from the agenda packet that all of the parcels surrounding Glenmore Drive are owned by Mount Sinani Properties-Salem and that they are all Carter Machinery parcels.She also noted that the notice had been advertised appropriately and that Mount Sinai was prepared to cooperate with any utility easements that the City requested based on the viewers' findings. She requested that Council appoint the viewers. Vice-Mayor Wallace requested that Ms. Brannock state her address for the record. Ms. Brannock clarified that she was Legal Counsel with the law firm Gentry Locke. Mr. Jones asked to clarify if the purpose tonight was simply to appoint the viewers. Mr. Light responded affirmatively and noted that when the City receives a request, the City is required to hold a public hearing by State Code and that the next action was for Staff to request Council to appoint viewers. City Staff will then work with the viewers to evaluate the request and they will come back before Council with a recommendation at a subsequent meeting. Mr. Jones asked if the motion to appoint viewers was the only action that would take place this evening. Mr. Light confirmed this. John Breen, 142 Bogey Lane, noted that he was not opposed to this reversion of land to the abutting property owners but that he had a concern that he wished to raise. He expressed that as this was public property, he suggested that the property be appraised so that the taxpayers would receive some money for the abandonment. Stella Reinhard, 213 North Broad Street, was the last citizen to address Council. She asked to clarify if this request was for an alley. It was clarified by Council that this was a public street. She asked to clarify if the request was for Mount Sinai Properties to acquire the street and then get rid of the public street. It was confirmed by Mr. Jones that this was the intent. Ms. Reinhard expressed concern about not retaining the original grid of the street and alley system of the City and the value they hold in some instances. Vice-Mayor Wallace closed the public hearing and indicated that he would entertain a motion to appoint a committee to study the matter. Mr. Jones asked to confirm how many viewers. Mr. Light responded that three viewers were needed. He added that staff would recommend that Council consider William R. Shepherd, Wendell Ingram, Jr., and Page 10 of 73 Frank P. Turk as viewers. Councilman Foley asked if there were any other options. He noted that he had no issue with Mr. Turk but that he thought it would be wise to select an alternative viewer for Mr. Turk so that Mayor Turk would not need to recuse herself from the vote. Mr. Light noted that the City does not currently have a pool of more people as these requests are fairly infrequent. He stated that staff could reach out and come up with someone else. He continued that the intent was to have varied expertise from the viewers that gave an unbiased look to work with staff. Mr. Foley noted that if the Mayor had to recuse herself from this vote that she would have to recuse herself from future votes of this type if Mr. Turk served. Mr. Light indicated that this would be up to Council. He noted that Council could make a motion to appoint the other two and that if they were amenable to staff selecting the other administratively, then they could do that. Mr. Light and Mr. Dorsey indicated that these three had served in this capacity for quite a few years and were not just randomly selected. Mr. Jones asked Mayor Turk to clarify what part of her family was involved. Mayor Turk clarified that her brother-in-law was under consideration as a viewer. Mr. Jones stated that under the circumstances that he was not involved as a member of Carter Machinery as applicant that he would like to make a motion to select the three viewers as stated by Mr. Light to review the property and come back with a recommendation to Council. William Jones motioned to adopt Resolution 1484 appointing viewers to review and report on this request. H. Hunter Holliday seconded the motion. Ayes: Foley, Holliday, Jones, Wallace Abstain: Turk B.Roanoke College Science Center - Phase I Consider setting bond for physical improvements and erosion and sediment control and landscaping for Roanoke College Science Center - Phase I. Audit - Finance Committee The City Engineer’s office has reviewed the estimate for physical improvements and erosion and sediment control and landscaping for Roanoke College Science Page 11 of 73 Center - Phase I located at 240 N. Market Street. James Wallace motioned that the project be bonded in the amount of $115,322.00 for a time frame for completion set at twelve (12) months. William Jones seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace C.Bojangles Drive Thru Improvements Consider setting bond for erosion and sediment control for Bojangles Drive Thru Improvements. Audit - Finance Committee The City Engineer's office has reviewed the estimate for erosion and sediment control for Bojangles Drive Thru Improvements located at 1590 West Main Street. James Wallace motioned that the project be bonded in the amount of $4,640.00 for a time frame for completion set at twelve (12) months. William Jones seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace D.Boards and Commissions Consider appointments to various boards and commissions. Mayor Turk encouraged citizens to look online under Boards and Commissions for the City of Salem. She noted that a number of different positions are listed there and to put an application in with the City for any that they had an interest in for future openings. James Wallace motioned to reappoint Dr. Steven L. Powers for a three-year term ending November 8, 2027, to the Roanoke Valley Greenway Commission. William Jones seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace 7.Closed Session A.Closed Session Hold a closed session in accordance with Section 2.2-3711 A(1), A(3) and A(8) of the 1950 Code of Virginia, as amended, for discussion of the following specific matters: (1) Discussion of a personnel matter pertaining to School Board appointments. (2)Consultation with legal counsel employed or retained by a public body Page 12 of 73 regarding specific legal matters requiring the provision of legal advice by such counsel; and 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. Vice-Mayor Wallace motioned that, in accordance with Section 2.2-3711 A (1), A(3), and A(8) of the 1950 Code of Virginia, as amended, Council hereby convenes to closed session at 6:58 p.m. for the purpose of discussing the following matters: 1)Discussion of a personnel matter pertaining to School Board appointments. 2)Consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel; and 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. William D. Jones seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace Mayor Turk noted that it was not anticipated that any action would be taken this evening. James Wallace motioned to reconvene at 7:51 p.m. in accordance with Section 2.2- 3712 D. of the Code of Virginia, 1950 as amended to date, Council certifies that in closed session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the closed session was convened were heard, discussed, or considered by the Council. William Jones seconded the motion. Ayes: Foley, Holliday, Jones, Turk, Wallace 8.Adjournment The meeting was adjourned at 6:58 p.m. Page 13 of 73 Item #: 6.A. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Resolution for Energy Contracts Resolution 1486 authorizing the City Manager to finalize and execute EEI Master Service Agreements with multiple counterparties and a subsequent single Confirmation Agreement in forms acceptable to the City Attorney with the least-cost supplier for the purchase of a fixed load shape energy product for the term of June 1, 2026, through December 31, 2028. SUBMITTED BY: Rosemarie Jordan, Director of Finance, A.K. Briele, Director of Electric SUMMARY OF INFORMATION: The City’s electric power supply contract with Appalachian Power Company (APC.) will be expiring on May 31, 2026. The City is a member of the Blue Ridge Power Agency (BRPA), which was formed to promote the most reliable and lowest cost wholesale electric power supplies for its members. BRPA and its consultant, GDS Associates, Inc. issued a Request for Proposals (RFP) on behalf of the City to select the most advantageous electric power supply option The Electric Department is now considering new counterparties and options to meet the City’s energy needs from June 1, 2026, through December 31, 2028. As part of that process, the Electric Department is requesting approval to execute Edison Electric Institute (EEI) master agreements with five counterparties: • AEP Energy Partners, Inc. • CMS Energy Corporation • NextEra Energy Power Marketing, LLC • Shell Energy North America (U.S.), L.P. • Tidal Energy Marketing (U.S.) LLC Page 14 of 73 The request also includes authorization to execute a confirmation agreement with the least-cost supplier at the time of the “live pricing”. FISCAL IMPACT: Approving resolution 1486 will allow the City Manager to approve the EEI agreements with the counterparties and execute a new power supply agreement for the period of June 1, 2026, through December 31, 2028, with the least-cost supplier. Resolution 1486 also establishes the pricing parameters for which the execution of the agreement documents may proceed. It authorizes that the average energy price will not exceed $59.72/MWh. If the fixed load shape energy product with delivery to BRPA Residual Aggregate is more than $2.00/MWh higher than the fixed load shape energy product with delivery to AEP Dayton Hub, the City Council authorizes the procurement of a fixed load shape energy product with delivery to AEP Dayton Hub. Otherwise, the fixed load shape energy product will be procured at BRPA Residual Aggregate STAFF RECOMMENDATION: Staff recommends adopting the attached resolution 1486 authorizing the City Manager to finalize and execute EEI Master Service Agreements with multiple counterparties and a subsequent single Confirmation Agreement in form acceptable to the City Attorney with the least-cost supplier for the purchase of a fixed load shape energy product for the term of June 1, 2026, through December 31, 2028. ATTACHMENTS: 1. Item 6A 11-12-24 Resolution 1486 Authorization to Execute VEP Supply Agreements 11.12.2024 Page 15 of 73 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, November 12, 2024: RESOLUTION 1486 A RESOLUTION OF THE SALEM CITY COUNCIL REQUESTING AUTHORIZATION TO EXECUTE CITY OF SALEM, VIRGINIA ELECTRIC POWER SUPPLY AGREEMENTS (JUNE 1, 2026 THROUGH DECEMBER 31, 2028) WHEREAS, The City of Salem, Virginia staff requests City Council authorization to execute the purchase of a fixed load shape energy product for the term of June 1, 2026 through December 31, 2028, and it is authorized at an average energy price not to exceed $59.72/MWh. If the fixed load shape energy product with delivery to BRPA Residual Aggregate is more than $2.00/MWh higher than the fixed load shape energy product with delivery to AEP Dayton Hub, the City Council authorizes the procurement of a fixed load shape energy product with delivery to AEP Dayton Hub. Otherwise, the fixed load shape energy product will be procured at BRPA Residual Aggregate; and WHEREAS, The City of Salem, Virginia has a long-standing power supply agreement with the Appalachian Power Company (APCo), which expires on May 31, 2026. The City is now considering new counterparties and options to meet the city’s energy needs from June 1, 2026 through December 31, 2028; and WHEREAS, The City Manager therefore requests approval to execute Edison Electric Institute (EEI) master agreements with the following counterparties: •AEP Energy Partners, Inc. •CMS Energy Corporation •NextEra Energy Power Marketing, LLC •Shell Energy North America (U.S.), L.P. •Tidal Energy Marketing (U.S.) LLC; and WHEREAS, The City Manager therefore requests approval to execute a confirmation agreement from the least-cost supplier meeting the requirements below: 1. A Fixed Load Shape product, which is sized and intended to meet energy requirements during the proposed term. a. No capacity, ancillary services, renewable energy goal, or any other requirements will be covered by this approval. b. PJM Market Participation account established by City of Salem. c. Term, delivery node, and proposed Not To Exceed (NTE) price as in Proposed New Products table below. 2. The selected supplier for a final confirmation agreement on energy requirements shall have participated in good standing in the Blue Ridge Power Agency (BRPA) RFP process, which has been ongoing since September 2023, and be selected as the best offer within the relevant “live pricing” terms listed above for City of Salem, Virginia. Page 16 of 73 3. The requested fixed load shape energy product electric requirements may be adjusted downward in 2028 to include Salem’s considered participation in a solar Purchased Power Agreement (PPA). 4. Supplier shall by time of “live pricing” have fully executed an EEI master agreement with City of Salem, Virginia; and WHEREAS, Proposed New Products: The following new power supply product is that which the Electric Department is requesting permission to procure in the 2024 RFP. Wholesale Power Proposal < $/MWh Start End Fixed Load Shape Product $59.72 Jun 2026 Dec 2028 ;and NOW THEREFORE BE IT RESOLVED that the Salem City Council, this 12th day of November, 2024, authorizes the City Manager to finalize and execute the requested EEI Master agreements and a single confirmation agreement, in a form acceptable to the City Attorney, according to the aforementioned approval criteria. Upon a call for an aye and a nay vote, the same stood as follows: H. Hunter Holliday - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Reneé F. Turk - ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 17 of 73 Item #: 6.B. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Resolution for Battery Storage Resolution 1487 authorizing the City Manager to execute a Battery Energy Storage Services (BESS) agreement and other associated documents between Delorean Power, LLC dba Lightshift Energy and the City of Salem, in a form acceptable to the City Attorney. SUBMITTED BY: Rosemarie Jordan, Director of Finance, A.K. Briele, Director of Electric SUMMARY OF INFORMATION: The City is a member of the Blue Ridge Power Agency (BRPA), which was formed to promote the most reliable and lowest cost wholesale electric power supplies for its members. BRPA and its consultant, GDS Associates, Inc. issued a Request for Proposals (RFP) on behalf of the City to select the most advantageous provider for (BESS). Pursuant to the RFP, the City has negotiated a proposed Energy Storage Services Agreement with Delorean Power, LLC dba Lightshift Energy to own, operate, and maintain the BESS in order to promote reduced power supply costs in the City, including reduced PJM locational reliability charges and AEP transmission charges during the term of the 20-year agreement. The location for the BESS will be the City’s electric substation on the corner of Electric Road and Lynchburg Turnpike. In addition to the BESS agreement, associated documents necessary to execute for implementation include: 1. Electricity Interconnection Agreement which formally documents the terms and conditions related to the BESS operation and maintenance to the City’s electrical distribution system. Authorization for the City Manager to execute this agreement in a form acceptable to the City Attorney is included in the attached Page 18 of 73 resolution. 2. Access Agreement to facilitate due diligence and planning needs at the site prior to the effective date of the BESS. Authorization for the City Manager to execute this agreement in a form acceptable to the City Attorney is included in the attached resolution. 3. Anticipated Lease Agreement to define the area and terms for the 20-year BESS placement. Per the Code of Virginia, lease agreements with the City as the Lessor require a public hearing prior to execution. Staff intends to advertise and schedule this public hearing and an associated action item to authorize the City Manager to execute this agreement in a form acceptable to the City Attorney at a subsequent Council meeting. FISCAL IMPACT: This agreement will promote reduced power supply costs in the City, including reduced PJM locational reliability charges and AEP transmission charges during the term of the 20-year agreement. Resolution 1487 establishes the maximum price authorized for execution of the BESS agreement for up to four (4) Megawatts of energy storage at a price of up to $8.92/kW- mo. STAFF RECOMMENDATION: Staff recommends Council authorize the City Manager to execute a Battery Energy Storage Services (BESS) agreement and other associated documents as enumerated in the attached resolution, between Delorean Power, LLC dba Lightshift Energy and the City of Salem, in a form acceptable to the City Attorney. ATTACHMENTS: 1. Item 6B 11-12-24 Resolution 1487 (Energy Storage Services Agreement- LightShift-Salem-11.12.24) Page 19 of 73 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, November 12, 2024: RESOLUTION 1487 RESOLUTION TO APPROVE ENERGY STORAGE SERVICES AGREEMENT BETWEEN DELOREAN POWER, LLC DBA LIGHTSHIFT ENERGY AND THE CITY OF SALEM, VIRGINIA WHEREAS, the City of Salem, Virginia (the “City”) desires to provide for a battery energy storage system (“BESS”) in order to reduce power supply peak costs in the City; and WHEREAS, the City is a member of the Blue Ridge Power Agency (“BRPA”), which was formed to promote the most reliable and lowest cost wholesale electric power supplies for its members; and WHEREAS, BRPA and its consultant, GDS Associates, Inc., issued a Request for Proposal (the “RFP”) on behalf of the City to select the most advantageous provider for the BESS; and WHEREAS, pursuant to the RFP, the City has negotiated a proposed 20-year Energy Storage Services Agreement with Delorean Power, LLC dba Lightshift Energy (“Lightshift); and WHEREAS, Lightshift will own, operate, and maintain the BESS to promote reduced power supply costs in the City, including reduced PJM locational reliability charges and AEP transmission charges during the term of the Storage Agreement; and WHEREAS, the City Council of the City of Salem, Virginia (the “City Council”) has determined it appropriate and in the best interests of the City to approve the Storage Agreement, subject to the terms and conditions of this Resolution. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Salem that the City Manager is authorized to finalize and execute the Storage Agreement, in a form acceptable to the City Attorney, on behalf of the City; provided, however, that the Storage Agreement will provide for up to four (4) Megawatts of energy storage at a price of up to $8.92/kW-mo. And, be it FURTHER RESOLVED, by the Council of the City of Salem that, the City Manager is authorized to negotiate and execute a proposed interconnection agreement and site access agreement, as necessary for the Storage Agreement, in a form acceptable to the City Attorney. And, BE IT FURTHER RESOLVED by the Council of the City of Salem that the City Manager is authorized to execute such other documents, and take such additional actions, as are necessary to effectuate the purposes of this Resolution. Page 20 of 73 Upon a call for an aye and a nay vote, the same stood as follows: H. Hunter Holliday - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Reneé F. Turk - Date of Adoption: ________________________ ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 21 of 73 Item #: 6.C. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Resolution 1488- Performance Bonds Consider Resolution 1488 delegating the establishment of amounts and approval of performance bonds upon completion of the site or subdivision plan approval process to Community Development as an administrative function. SUBMITTED BY: Chuck Van Allman, Director of Community Development SUMMARY OF INFORMATION: The City of Salem Community Development Department (Engineering Division) reviews and validates subdivision and site plan performance bond amounts. Currently, these bonds are then reviewed by the Audit Finance Committee and then subsequently approved by Council at their next regular meeting. A performance bond is to ensure that regulations such as erosion and sediment control, stormwater management, public utilities, public roads, and other regulations are met by the developers. The City can use the bond to restore the site or complete the development if it is not done by the developer. The City normally only has one Audit Finance Committee meeting per month and thus the bond estimate can only be approved once a month. The bond estimate is submitted for approval when site/subdivision plan review is completed and approved. This can cause up to a one-month delay from site plan approval to the issuance of a land disturbing permit and a notice to proceed. The development community has regularly expressed concern about this delay vs. the more streamlined process in neighboring localities. For example, Roanoke City and Roanoke County delegate administrative approval of bond amounts to staff. Virginia State Code section §15.2-2241-5 authorizes the local governing body to delegate performance bond approval to their designated administrative agency. Should Council approve this resolution, staff will provide a monthly summary of all bonds approved in each monthly Department report to Council for informational purposes. Page 22 of 73 FISCAL IMPACT: None STAFF RECOMMENDATION: Staff recommends Council adopt Resolution 1488 delegating the establishment of amounts and the approval of performance bonds upon completion of the site or subdivision plan approval process to Community Development as an administrative function. ATTACHMENTS: 1. Resolution 1488 Delegating Performance Bonds 11.12.2024 Page 23 of 73 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, November 12, 2024: RESOLUTION 1488 A RESOLUTION OF THE SALEM CITY COUNCIL DELEGATING THE ESTABLISHMENT OF AMOUNTS AND APPROVAL OF PERFORMANCE BONDS UPON COMPLETION OF THE SITE OR SUBDIVISION PLAN APPROVAL PROCESS TO COMMUNITY DEVELOPMENT AS AN ADMINISTRATIVE FUNCTION WHEREAS, The City of Salem Community Development Department (Engineering Division) reviews and validates subdivision and site plan performance bond amounts. Currently, these bonds are then reviewed by the Audit Finance Committee and then subsequently approved by Council at their next subsequent regular meeting. A performance bond is to ensure that regulations such as erosion and sediment control, stormwater management, public utilities, public roads, and other regulations are met by the developers. The City can use the bond to restore the site or complete the development if it is not done by the developer; and WHEREAS, The City normally only has one Audit Finance Committee meeting per month and thus the bond estimate can only be approved once a month. The bond estimate is submitted for approval when site/subdivision plan review is completed and approved. This can cause up to a one-month delay from site plan approval to the issuance of a land disturbing permit and a notice to proceed. The development community has regularly expressed concern about this delay vs. the more streamlined process in neighboring localities. For example, Roanoke City and Roanoke County delegate administrative approval of bond amounts to staff; and WHEREAS, Virginia State Code section §15.2-2241-5 authorizes the local governing body to delegate performance bond approval to their designated administrative agency; and NOW THEREFORE BE IT RESOLVED that the Salem City Council, this ___ day of November, 2024, delegates the establishment of amounts and the approval of performance bonds upon completion of the site or subdivision plan approval process to Community Development as an administrative function. Upon a call for an aye and a nay vote, the same stood as follows: H. Hunter Holliday - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Reneé F. Turk - ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 24 of 73 Item #: 6.D. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Public Improvement Bonds Hold a public hearing and consider adoption of ordinance authorizing the issuance and sale of general obligation public improvement bonds series 2024 in an aggregate principal amount not to exceed $3,700,000. (As advertised in the October 24 and October 31, 2024 issues of the Salem Times Register.) Audit - Finance Committee SUBMITTED BY: Rosemarie 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 for the purpose of acquiring, constructing and equipping capital improvements for the City’s water and wastewater system. This bond issue is in an aggregate principal amount not to exceed $3,700,000. 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. Note that per the Public Finance Act, only one reading of this ordinance is required. FISCAL IMPACT: 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 $3,700,000. ATTACHMENTS: 1. Salem - 2024 GO - Ordinance - 308621621-v3-c Page 25 of 73 COVERING CERTIFICATE FOR ORDINANCE The undersigned Clerk of Council of the City of Salem, Virginia (the “City”), certifies as follows: 1. At a special meeting on November 12, 2024, the City Council of the City (the “Council”) held a public hearing, duly noticed, in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as amended. 2. 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 $3,700,000” (the “Ordinance”), which was adopted at the special meeting of the Council following the public hearing held on November 12, 2024, by the recorded affirmative roll-call vote of a majority of all members of the Council. 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 Hunter Holliday William D. Jones 3. The Council meeting at which the Ordinance was adopted was held at the time and place established by the Council for such special meeting after appropriate notice. 4. 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 ____ day of November, 2024. (SEAL) H. Robert Light, Clerk of Council, City of Salem, Virginia Page 26 of 73 ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF SALEM, VIRGINIA, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $3,700,000 WHEREAS, acting pursuant to directions of the City Council (the “Council”) of the City of Salem, Virginia (the “City”), the City proposes to acquire, construct and equip capital improvements for the City’s water and wastewater systems (collectively, the “Project”), and now desires to provide for the financing of the Project; BE IT ORDAINED BY THE CITY 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, 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 $3,700,000 to finance (together with other available funds) the Project and to pay related costs of issuance. 3. The bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their dates, 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. As permitted by Section 15.2-2601 of the Code of Virginia of 1950, as amended, the Council elects to authorize the issuance of the bonds pursuant to the provisions of the Public Finance Act of 1991, Chapter 26 of Title 15.2 of the Virginia Code, without regard to the requirements, restrictions or other provisions contained in the City Charter. 6. 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. 7. This ordinance shall take effect immediately. 8. All prior ordinances or parts of prior ordinances in conflict with the provisions of this ordinance are hereby repealed. Page 27 of 73 Upon a call for an aye and a nay vote, the same stood as follows: H. Hunter Holliday - 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 Page 28 of 73 Item #: 6.E. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: General Obligation Public Improvement Bonds Consider adoption of Resolution 1485 authorizing the issuance, sale and award of General Obligation Improvement Bonds, Series 2024. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The City needs to issue bonds for the purpose of acquiring, constructing and equipping capital improvements for the City’s water and wastewater systems. These projects include new well infrastructure and a replacement of the Franklin St. water tank. The projects were approved as part of the fiscal year 2024 budget. FISCAL IMPACT: Issuing bonds will allow the City to proceed with improvements to the water and wastewater systems. STAFF RECOMMENDATION: Staff recommends adopting the attached resolution authorizing the issuance, sale and award of its general obligation public improvement bonds, series 2024. ATTACHMENTS: 1. Salem - 2024 GO - Bond Resolution - 308621475-v4-c Page 29 of 73 COVERING CERTIFICATE FOR RESOLUTION 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 a resolution entitled “RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND AWARD OF A GENERAL OBLIGATION PUBLIC IMPROVEMENT BOND OF THE CITY OF SALEM, VIRGINIA, HERETOFORE AUTHORIZED, IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,700,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF” (the “Resolution”). The Resolution was adopted at a special meeting of the Council of the City (the “Council”) held on November 12, 2024, by a majority of all members of the Council by a roll-call vote. 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 Hunter Holliday William D. Jones 2. The Council meeting at which the Resolution was adopted was held at the time and place established by the Council for such special meeting after appropriate notice. 3. The Resolution 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 ____ day of November, 2024. (SEAL) H. Robert Light, Clerk of Council, City of Salem, Virginia Page 30 of 73 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, NOVEMBER 12, 2024: RESOLUTION 1485 RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND AWARD OF A GENERAL OBLIGATION PUBLIC IMPROVEMENT BOND OF THE CITY OF SALEM, VIRGINIA, HERETOFORE AUTHORIZED, IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,700,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, on November 12, 2024, the Council (the “Council”) of the City of Salem, Virginia (the “City”), adopted an ordinance (the “Ordinance”) authorizing the issuance of its general obligation bonds in an aggregate principal amount not to exceed $3,700,000 to (a) finance the acquisition, construction and equipping of capital improvements for the City’s water and wastewater systems (collectively, the “Project”), and (b) pay related costs of issuance; and WHEREAS, the City’s administration, in collaboration with the City’s financial advisor, Davenport & Company LLC (the “Financial Advisor”), has recommended that the City issue and sell a general obligation public improvement bond through a direct bank loan with a banking or other financial institution; WHEREAS, the Financial Advisor has solicited and received, on behalf of the City, bids from various banking and other financial institutions to make a loan to the City to be evidenced by the purchase of the Bond (as hereinafter defined); and WHEREAS, the Council desires to delegate to the City Manager (which term shall include the Director of Finance for purposes of this Resolution) the authority to award the sale of the Bond to one of the bidders and to negotiate the final pricing terms of the Bond within the parameters set forth herein; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA: 1. Issuance and Sale of Bond. Pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act, the Council hereby provides for the issuance and sale of a general obligation public improvement bond (the “Bond”) in a principal amount not to exceed $3,700,000 to provide funds to (a) finance the Project and (b) pay related costs of issuance. Further, the Council hereby authorizes the City Manager, in collaboration with the Financial Advisor, to negotiate with the bidders the final pricing terms of the Bond, subject to the parameters set forth below, and, on the basis of such negotiations, to determine which bidder offers the best terms to the City (such winning bidder referred to herein as the “Lender”). 2. Election to Proceed under the Public Finance Act. In accordance with the authority contained in Section 15.2-2601 of the Code of Virginia of 1950, as amended (the “Virginia Code”), the Council elects to issue the Bond pursuant to the provisions of the Public Page 31 of 73 3 Finance Act of 1991, Chapter 26 of Title 15.2 of the Virginia Code (the “Public Finance Act”), without regard to the requirements, restrictions or other provisions contained in the City Charter. 3. Bond Details. (a) Subject to the provisions and limitations of this Resolution, the Council authorizes the City Manager to undertake the issuance and sale of the Bond and to determine the final pricing terms of the Bond as he shall deem to be in the best interests of the City. The Bond shall be designated “General Obligation Public Improvement Bond, Series 2024,” or such other designation as may be determined by the City Manager. The Bond shall be in registered form, shall be dated such date as may be determined by the City Manager and shall be numbered R-1. The issuance and sale of the Bond are authorized on such final pricing terms as shall be satisfactory to the City Manager; provided, however, that the Bond shall (i) be issued in a principal amount not exceeding the limit set forth in Section 1 above, (ii) bear interest at an annual rate not to exceed 5.50% per year (subject to adjustment, if any, as required by the terms of the bid submitted by the Lender and approved by the City Manager), (iii) be sold to the Lender at a price of 100% of the original principal amount thereof, and (iv) mature no later than December 31, 2045. The principal of and interest due on the Bond shall be payable on dates and in amounts as determined by the City Manager to be in the best interests of the City. (b) Following the determination of the final pricing terms of the Bond, the City Manager shall execute a certificate setting forth such final pricing terms and shall file such certificate with the records of the Council. The actions of the City Manager in selling the Bond shall be conclusive, and no further action with respect to the issuance, sale and award of the Bond shall be necessary on the part of the Council. (c) If the date on which any payment is due with respect to the Bond is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day with the same effect as if made on the stated payment date, and no additional interest shall accrue. “Business Day” shall mean a day on which banking business is transacted, but not including a Saturday, Sunday, legal holiday or any other day on which banking institutions are authorized or required by law to close in the Commonwealth of Virginia. (d) Principal and interest shall be payable by the Registrar (as hereinafter defined) by check or draft mailed to the registered owner at the address as it appears on the registration books kept by the Registrar on the dates selected by the City Manager as the record dates for the Bond (the “Record Dates”); provided, however, that, at the request of the registered owner of the Bond, payment may be made by wire transfer pursuant to the most recent wire instructions received by the Registrar from such registered owner. Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. 4. Prepayment Provisions. The Bond may be subject to prepayment prior to maturity at the option of the City in accordance with the terms of the Lender’s bid or as otherwise agreed to by the City Manager, provided that any prepayment premium shall not exceed 2.0% of the principal amount thereof to be prepaid. 5. Execution and Authentication. The Bond shall be signed by the manual or facsimile signature of the Mayor or Vice Mayor, and the City’s seal shall be affixed thereto or a facsimile thereof printed thereon and shall be attested by the manual or facsimile signature of the Page 32 of 73 4 Clerk of Council (which term shall include any Acting, Interim or Deputy Clerk of Council); provided, however, that no Bond signed by facsimile signatures shall be valid until it has been authenticated by the manual signature of an authorized officer or employee of the Registrar and the date of authentication noted thereon. 6. Bond Form. The Bond shall be in substantially the form of Exhibit A hereto, 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. Pledge of Full Faith and Credit. The full faith and credit of the City are irrevocably pledged for the payment of principal of and premium, if any, and interest 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 upon all locally taxable property within the City, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, sufficient to pay when due the principal of and premium, if any, and interest on the Bond. 8. Registration, Transfer and Owner of Bond. The City Treasurer is hereby appointed paying agent and registrar for the Bond (together with any successor paying agent and registrar, the “Registrar”). The City Manager is hereby authorized, on behalf of the City, to appoint a qualified bank or trust company as successor paying agent and registrar of the Bond if at any time the City Manager determines such appointment to be in the best interests of the City. The Registrar shall maintain registration books for the registration of the Bond and transfers thereof. Upon presentation and surrender of the Bond to the Registrar, or its corporate trust office if the Registrar is a bank or trust company, together with an assignment duly executed by the registered owner or the owner’s duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall execute, and the Registrar shall authenticate, if required by Section 5, and deliver in exchange, a new Bond or Bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate, and registered in the name(s) as requested by the then registered owner or the owner’s 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 as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the Record Date. 9. Preparation and Delivery of Bond. The officers of the City are authorized and directed to take all proper steps to have the Bond prepared and executed in accordance with its terms and to deliver the Bond to the Lender upon payment therefor. 10. 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 Page 33 of 73 5 such lost or destroyed Bond; provided, however, that the City shall so execute and deliver the 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 City that such Bond was lost or destroyed and (b) has furnished to the City satisfactory indemnity. 11. Arbitrage Covenants. (a) The City represents that there have not been issued, and covenants that there will not be issued, any obligations that will be treated as part of the same issue of obligations as the Bond within the meaning of Treasury Regulations Section 1.150-1(c). (b) The City covenants that it shall not take or omit to take any action the taking or omission of which will cause the Bond to be an “arbitrage bond” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued pursuant thereto (the “Code”), or otherwise cause interest on the Bond to be includable in the gross income for federal income tax purposes of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision of existing law that may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Bond, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest on the Bond from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law. The City shall pay any such required rebate from its legally available funds. 12. Non-Arbitrage Certificate and Elections. Such officers of the City as may be requested by the City’s bond counsel are authorized and directed to execute an appropriate certificate setting forth (a) the expected use and investment of the proceeds of the Bond in order to show that such expected use and investment will not violate the provisions of Section 148 of the Code and (b) any elections such officers deem desirable regarding rebate of earnings to the United States for purposes of complying with Section 148 of the Code. Such certificate shall be prepared in consultation with the City’s bond counsel, and such elections shall be made after consultation with bond counsel. 13. Limitation on Private Use. The City covenants that it shall not permit the proceeds of the Bond or the facilities financed therewith to be used in any manner that would result in (a) 5% or more of such proceeds or facilities being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, (b) 5% or more of such proceeds or facilities being used with respect to any output facility (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Section 141(c) of the Code; provided, however, that if the City receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Bond from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law, the City need not comply with such covenants. 14. Qualified Tax-Exempt Obligation. If the City Manager determines that the City is able to meet the requirements of Section 265(b)(3) of the Code with respect to the Bond, Page 34 of 73 6 including (with certain exceptions) a restriction on the issuance by the City of more than $10,000,000 (in the aggregate) of tax-exempt obligations during the current calendar year, the City Manager is hereby authorized to designate the Bond as a “qualified tax-exempt obligation” for the purpose of Section 265(b)(3) of the Code. 15. SNAP Investment Authorization. The Council has previously received and reviewed the Information Statement describing the State Non-Arbitrage Program of the Commonwealth of Virginia (“SNAP”) and the Contract Creating the State Non-Arbitrage Program Pool (the “Contract”), and the Council hereby authorizes the City Treasurer in her discretion to utilize SNAP in connection with the investment of the proceeds of the Bond. The Council acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the City in connection with SNAP, except as otherwise provided in the Contract. 16. Provision of Financial Information. The City Manager is hereby authorized and directed to make available to the Lender, for so long as the Bond remains outstanding, a copy of the City’s comprehensive annual financial report and such other financial information as may be reasonably requested by the Lender, as soon as is practicable upon the release of such information. 17. 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 authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection with the issuance, sale and delivery of the Bond. 18. Repeal of Conflicting Resolutions. All prior resolutions or parts of prior resolutions in conflict herewith are repealed. 19. Effective Date. This Resolution shall take effect immediately. Page 35 of 73 A-1 EXHIBIT A [FORM OF BOND] REGISTERED REGISTERED No. RB-1 $__________ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF SALEM General Obligation Public Improvement Bond, Series 2024 The City of Salem, Virginia (the “City”), for value received, promises to pay, to [_______________________________] (the “Lender”), or registered its assigns or legal representative, the principal sum of [____________] DOLLARS ($[_____]), together with interest from the date of this bond on the unpaid principal, at the annual rate of [____]%, calculated on the basis of a 360-day year of twelve 30-day months, subject to prepayment as hereinafter provided. Interest shall be payable semi-annually on each [_____ __] and [_____ __], commencing [_____ __, 20__], and principal shall be payable annually on _____ __ in the amounts and years as set forth on Schedule I attached hereto. Principal of and premium, if any, and interest on this bond are payable in lawful money of the United States of America by the City Treasurer, who has been appointed the initial paying agent and registrar for this bond, or by such bank or trust company as may be appointed as successor paying agent and registrar by the City Manager (the “Registrar”). If any payment date is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day with the same effect as if made on the stated payment date, and no additional interest shall accrue. “Business Day” shall mean a day on which banking business is transacted, but not including a Saturday, Sunday, legal holiday or any other day on which banking institutions are authorized or required by law to close in the Commonwealth of Virginia. This bond is issued pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991. This bond has been authorized by and is being issued pursuant to an ordinance and a resolution adopted by the City Council of the City (the “Council”) on [November 12,] 2024, to (a) finance the costs to acquire, construct and equip capital improvements to the City’s water and wastewater systems, and (b) pay related costs of issuance. The full faith and credit of the City are irrevocably pledged for the payment of principal of and premium, if any, and interest on this bond. 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 upon all locally taxable property within the City, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, sufficient to pay when due the principal of and premium, if any, and interest on this bond. Page 36 of 73 A-2 [The City has designated this bond as a “qualified tax-exempt obligation” for the purpose of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.] [At the option of the City, this bond is subject to prepayment prior to maturity, in whole or in part at any time, upon payment of a prepayment price equal to ____% of the principal amount to be prepaid, plus accrued and unpaid interest, if any, to the date fixed for prepayment.] The Registrar shall treat the registered owner of this bond as the person exclusively entitled to payment of principal of and premium, if any, and interest on this bond and the exercise of all others rights and powers of the owner, except that interest payments shall be made to the person shown as the owner on the registration books on the ___ day of the month [preceding] [in which] each interest payment [is due]. 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 limit prescribed by the Constitution and statutes of the Commonwealth of Virginia. [Remainder of page intentionally left blank.] Page 37 of 73 A-3 IN WITNESS WHEREOF, the City of Salem, Virginia, has caused this bond to be to be signed by the Mayor or Vice Mayor, its seal to be affixed hereto and attested by the Clerk of Council of the City, and this bond to be dated the date first above written. (SEAL) ________________________________________ [Vice] Mayor, City of Salem, Virginia (ATTEST) _________________________________ Clerk of Council, City of Salem, Virginia Page 38 of 73 A-4 ASSIGNMENT FOR VALUE RECEIVED the undersigned sell(s), assign(s) and transfer(s) unto ______________________________________________________________________________ (Please print or type 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 correspond with the name of the or Savings Association who is a member registered owner as it appears on the of a medallion program approved by The front of this bond in every particular, Securities Transfer Association, Inc. without alteration or enlargement or any change whatsoever. Page 39 of 73 A-5 TRANSFER OF BOND Transfer of this bond may be registered by the registered owner or its duly authorized attorney upon presentation hereof to the Registrar who shall make note of such transfer in books kept by the Registrar for that purpose and in the registration blank below. Date of Registration Name of Registered Owner Signature of Registrar ____________________ ________________________ ______________________ ____________________ ________________________ ______________________ ____________________ ________________________ ______________________ ____________________ ________________________ ______________________ Page 40 of 73 A-6 SCHEDULE I [Final Maturity Schedule to be attached at closing] Page 41 of 73 Item #: 6.F. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Appropriation of Funds Consider request to amend the School Operating Fund, School Cafeteria Fund and School Grants Fund budgets as approved by the School Board on October 8, 2024. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The School Operating Fund, School Cafeteria Fund and School Grants Fund budgets were amended for fiscal year 2024-2025 by the School Board at their meeting on October 8, 2024. The Board amended the Operating Fund budget to increase revenues and expenditures by $2,299,994, the Cafeteria Fund by $178,143 and the Grants Fund to increase revenues and expenditures by $333,512. The attached memo details the appropriation changes. FISCAL IMPACT: Appropriation changes totaling $2,299,994, $178,143 and $333,512 to be made to the School Operating, Cafeteria and Grants Funds, respectively. STAFF RECOMMENDATION: Staff recommends that Council approve the School Board’s appropriation changes of $2,299,994 to the School Operating Fund, $178,143 to School Cafeteria Fund and $333,512 to the School Grants Fund, per the attached report. ATTACHMENTS: 1. Budget Adjustments for Grants, General Fund & Cafe Accts Narrative 10082024 2. Budget adjustments for Grant Fund 10082024 Attachment A 3. Budget adjustments for General & Cafe Fund 10082024 Attachment B Page 42 of 73 Salem City Schools Budget Adjustments Report October 8, 2024 Summary of Issue: At times during the year, additional funding may be received by the school division through donation, grant, or some other means. This revenue increases the budget requiring Board approval before the funds can be utilized. Grant budgets need to be adjusted at this time each year because: 1. The actual grant award for the current year was either larger or smaller than the adopted budget estimate. 2. The actual unspent funds carried forward from June 30, 2024 for grants that have not ended are either larger or smaller than the adopted budget estimate, or to reallocate funds between line items to bring budgets up to date with consolidated application. 3. New grants may have been awarded since budget adoption and need to budgeted on the books Grant activity to note:  We were notified by the Blue Ridge Partnership on September 6, 2024 that we were awarded $58,058 from the Claude Moore Charitable Foundation for the establishment of an EMT program at Salem High School. The funds will be used to purchase classroom materials for students to fulfil the new classes’ requirements.  Multiple grants had allowable carryover balance amounts that were unknown at budget creation time totaling a net of $359,911. A few general fund budgets need adjustment based on notifications we have received from the State such as CTE Equipment, Skills Assessment and Certification Cost accounts based on State amounts awarded. We also need to adjust for the local accounts for the VPI grant based on updated State amounts. Lastly, we have agreed to a second year with K12 Management (STRIDE) to provide administration of the online school started last school year. That was not decided as of the time the budget was created. Within this budget adjustment request, $2,169,720 was added to the budget for this program. The revenue to offset this will come from the increase in State revenue accounts that are based on enrollment, as the divisions enrollment will increase based on the number of students in the division, including the online students in the STRIDE program. A few cafeteria fund budgets need adjustment based on historical data for commodities. Commodity revenue has never been budgeted before , but is consistently received. To avoid having to do an adjustment at year-end for this each year, this will add it to the budget early and it will be added in the budget process for next year so it doesn’t have to be addressed in an adjustment moving forward. These budgets were increased based on the average of the actual amounts received in the last 4 years. Policy Reference: DA-BR Budget Transfers Page 43 of 73 Fiscal Impact: The budget adjustments will increase the revenue and expenditure budgets in the School Grant Fund (attachment A) in total by the same amount of $333,512 and increase the revenue and expenditure budgets in the School Operating Fund (attachment B) in total by the same amount of $2,299,994. The Cafeteria Fund budget will also increase by $178,143 (attachment B). Recommended Action: Move approval of the budget adju stments in the School Operating, School Grant and School Cafeteria Funds as presented and recommend that City Council approve the same. Page 44 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed REVENUES 32-250-00-00-9-000-62000 NCLB Title I A 84.010 $36,009.00 32-270-00-00-9-000-62150 NCLB Title II A Improving Teacher Quality 84.367 $44,045.00 32-280-00-00-9-000-62060 NCLB Title III A LEP 84.365 $6,246.00 32-310-00-00-9-000-62270 Perkins Voc Ed 84.048 $567.00 32-440-00-00-9-000-62250 Title IV A Student Support & Acad Enrichment 84.424 $20,355.00 32-460-00-00-9-000-71402 Year Round School Start-Up Grant $102,756.00 32-300-00-00-9-000-62120 Flow Thru Title VI B 84.027 ($20,566.00) 32-300-00-00-9-000-62121 Flow Thru Title VI B Carryover 84.027 $966.00 32-230-00-00-9-000-62210 IDEA Part B Sec 619 Spec Ed Preschool 84.173 ($285.00) 32-230-00-00-9-000-62211 IDEA Part B Sec 619 Spec Ed Preschool Carryover 84.173 $7,246.00 32-200-00-00-9-000-61300 ISAEP - GED Prep ($147.00) 32-420-00-00-9-000-61621 PBIS of the VTSS Carryover 240427 $31,126.00 32-640-00-00-9-000-62275 School-Based Health Workforce Grant 93.354 ($80,005.00) 32-660-00-00-9-000-62460 Community Schools Grant 84.215J ($131,188.00) 32-540-00-00-9-000-62264 CRRSA ESSER III 84.425U ($18,362.00) 32-225-00-00-9-000-63250 Claude Moore Foundation EMT Grant $58,058.00 32-590-00-00-9-000-62266 ARP Homeless II Children and Youth 84.425W $2,403.00 32-340-00-00-9-000-61301 School Security Grant $2,561.00 32-680-00-00-9-000-61119 ALL In Tutoring Per Pupil Funding $169,044.00 32-400-00-00-9-000-61615 Virginia Preschool Initiative Grant 240281 $102,683.00 REVENUES Total $333,512.00 EXPENSES 32-215-61-10-2-110-71151 Compensation - Instructional Asst $4,000.00 32-215-61-10-2-110-72100 FICA $380.00 Page 45 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-215-61-10-2-110-73037 Contractual Services - Other ($4,380.00) 32-250-61-10-2-110-71120 Compensation - Instructional Salaries ($131,356.00) 32-250-61-10-2-110-71151 Compensation - Instructional Asst $94,410.00 32-250-61-10-2-110-72100 FICA $4,949.00 32-250-61-10-2-110-72210 VRS Pension Contribution ($4,622.00) 32-250-61-10-2-110-72300 Group Health and Dental Insurance ($16,806.00) 32-250-61-10-2-110-72400 VRS Group Life Insurance ($10.00) 32-250-61-10-2-110-72750 VRS Retiree Health Care Credit $491.00 32-250-61-10-2-110-73037 Contractual Services - Other ($20,363.00) 32-250-61-10-2-110-76435 Supplies - Instructional $109,316.00 32-270-61-10-2-110-71120 Compensation - Instructional Salaries $4,000.00 32-270-61-10-2-110-72100 FICA $306.00 32-270-61-10-2-110-73225 Professional Development - Conferences $45,305.00 32-270-61-10-2-110-75530 Travel - Other ($5,543.00) 32-270-61-10-2-110-76115 Supplies - Training ($23.00) 32-280-61-10-2-110-71120 Compensation - Instructional Salaries ($2,690.00) 32-280-61-10-2-110-72100 FICA $3,153.00 32-280-61-10-2-110-73037 Contractual Services - Other $2,039.00 32-280-61-10-2-110-76435 Supplies - Instructional $3,744.00 32-310-61-10-3-130-73037 Contractual Services - Other ($275.00) 32-310-61-10-3-130-76435 Supplies - Instructional $842.00 32-440-61-10-4-150-71620 Compensation - Extracurricular Supplements $1,042.00 32-440-61-10-4-150-72100 FICA $80.00 32-440-61-10-4-110-73037 Contractual Services - Other $18,704.00 32-440-61-10-4-110-76435 Supplies - Instructional $529.00 32-460-61-10-6-164-71120 Compensation - Instructional Salaries $87,908.00 32-460-61-10-6-164-72100 FICA $6,725.00 32-460-61-10-6-164-73037 Contractual Services - Other $8,123.00 32-520-61-10-3-110-75530 Travel - Other $316.00 Page 46 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-520-61-10-3-110-76435 Supplies - Instructional ($316.00) 32-230-61-10-8-180-71151 Compensation - Instructional Asst $6,466.00 32-230-61-10-8-180-72100 FICA $495.00 32-200-61-10-3-120-71120 Compensation - Instructional Salaries ($100.00) 32-200-61-10-3-120-72100 FICA ($47.00) 32-420-61-10-2-110-76435 Supplies - Instructional $10,376.00 32-420-61-10-3-110-76435 Supplies - Instructional $10,375.00 32-420-61-10-4-110-76435 Supplies - Instructional $10,375.00 32-640-62-62-9-222-71131 Compensation - School Nurses ($19,990.00) 32-640-62-62-9-222-72100 FICA ($1,529.00) 32-640-62-62-9-222-72210 VRS Pension Contribution ($3,322.00) 32-640-62-62-9-222-72300 Group Health and Dental Insurance ($2,574.00) 32-640-62-62-9-222-72400 VRS Group Life Insurance ($268.00) 32-640-62-62-9-222-72750 VRS Retiree Health Care Credit ($242.00) 32-640-62-62-9-222-73037 Contractual Services - Other ($3,780.00) 32-640-62-62-9-222-73255 Professional Development ($24,548.00) 32-640-62-62-9-222-76045 Furniture and Equip <$5,000 ($23,752.00) 32-670-61-10-3-110-71665 Bonus Payments to Teachers ($1,000.00) 32-670-61-10-3-110-72100 FICA ($77.00) 32-670-61-21-2-110-71124 Compensation Guidance Counselors ($22,000.00) 32-670-61-10-2-110-71665 Bonus Payments to Elem. Teachers $2,000.00 32-670-61-10-2-110-72100 FICA ($1,368.00) 32-670-61-10-2-110-72210 VRS Pension Contribution ($6,920.00) 32-670-61-10-2-110-72300 Group Health and Dental Insurance $135.00 32-670-61-10-2-110-72400 VRS Group Life Insurance ($764.00) 32-670-61-10-2-110-72750 VRS Retiree Health Care Credit ($690.00) 32-670-61-10-2-110-76435 Supplies-Instructional $3,967.00 32-670-61-10-3-110-71665 Bonus Payments to Teachers ($15,800.00) 32-670-61-10-3-110-72100 FICA $2,463.00 Page 47 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-670-61-10-3-110-71124 Compensation to Guidance Counselors $49,500.00 32-670-61-10-4-110-72300 Group Health and Dental Insurance $585.00 32-670-61-10-4-110-71665 Bonus to Teachers $2,000.00 32-670-61-10-4-110-72210 VRS Pension Contribution ($8,227.00) 32-670-61-10-4-110-72400 VRS Group Life Insurance ($663.00) 32-670-61-10-4-110-72750 VRS Retiree Health Care Credit ($599.00) 32-670-6-62-9-212-73035 Consultants $535.00 32-670-6-62-9-212-75530 Travel ($2,000.00) 32-670-6-62-9-212-71665 Bonus Payment to Teachers-Technology ($1,000.00) 32-670-6-62-9-212-71665 FICA ($77.00) 32-660-62-62-9-222-73037 Contractual Services - Other ($123,188.00) 32-660-62-62-9-222-76435 Supplies-Instructional ($8,000.00) 32-540-61-10-2-110-71120 Compensation-Instructional Salaries $13,264.00 32-540-61-10-2-110-72100 FICA $1,015.67 32-540-61-10-2-110-72210 VRS Pension Contribution $836.44 32-540-61-10-2-110-72300 Group Health and Dental Insurance ($12,189.11) 32-540-61-10-2-110-72400 VRS Group Life Insurance $86.00 32-540-61-10-2-110-72750 VRS Retiree Health Care Credit $161.04 32-540-61-10-3-110-71120 Compensation-Instructional Salaries ($12,866.00) 32-540-61-10-3-110-72100 FICA ($983.76) 32-540-61-10-3-110-72210 VRS Pension Contribution ($2,352.45) 32-540-61-10-3-110-72300 Group Health and Dental Insurance ($9,407.00) 32-540-61-10-3-110-72400 VRS Group Life Insurance ($187.07) 32-540-61-10-3-110-72750 VRS Retiree Health Care Credit ($155.41) 32-540-61-10-4-110-71120 Compensation-Instructional Salaries $8,892.00 32-540-61-10-4-110-72100 FICA $680.24 32-540-61-10-4-110-72210 VRS Pension Contribution $1,263.55 32-540-61-10-4-110-72300 Group Health and Dental Insurance $0.00 32-540-61-10-4-110-72400 VRS Group Life Insurance $104.93 Page 48 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-540-61-10-4-110-72750 VRS Retiree Health Care Credit $107.59 32-540-62-62-9-222-71131 Compensation-School Nurses ($3,730.00) 32-540-62-62-9-222-71135 Compensation-Board Cert. Behavior Analyst $17,009.00 32-540-62-62-9-222-72100 FICA $1,016.33 32-540-62-62-9-222-72210 VRS Pension Contribution $1,362.76 32-540-62-62-9-222-72300 Group Health and Dental Insurance ($7,142.00) 32-540-62-62-9-222-72400 VRS Group Life Insurance $121.44 32-540-62-62-9-222-72750 VRS Retiree Health Care Credit $160.95 32-540-68-10-9-800-71139 Compensation-ITRT ($6,796.00) 32-540-68-10-9-800-72100 FICA ($519.41) 32-540-68-10-9-800-72210 VRS Pension Contribution ($1,129.32) 32-540-68-10-9-800-72300 Group Health and Dental Insurance ($6,789.00) 32-540-68-10-9-800-72400 VRS Group Life Insurance ($115.45) 32-540-68-10-9-800-72750 VRS Retiree Health Care Credit ($81.96) 32-225-61-10-3-110-76290 Health $58,058.00 32-590-61-10-3-110-73037 Contractual Services - Other $700.00 32-590-63-63-9-330-71172 Compensation - Bus Aides $1,582.00 32-590-63-63-9-330-72100 FICA $121.00 32-340-64-64-2-460-73183 Repair/Maint - Other Contracted - East $2,561.00 32-300-61-10-2-120-71120 Compensation-Instructional Salaries $0.00 32-300-61-10-2-120-71151 Compensation-Instructional Asst ($42,000.00) 32-300-61-10-2-120-72100 FICA ($1,840.00) 32-300-61-10-2-120-72210 VRS Pension Contribution ($2,060.00) 32-300-61-10-2-120-72220 VRS Hybrid Pension Contribution $0.00 32-300-61-10-2-120-72300 Group Health and Dental Insurance ($4,200.00) 32-300-61-10-2-120-72400 VRS Group Life Insurance ($1,150.00) 32-300-61-10-2-120-72510 Hybrid Disability Insurance $0.00 32-300-61-10-2-120-72750 VRS Retiree Health Care Credit ($610.00) 32-300-61-10-3-120-71120 Compensation-Instructional Salaries $18,924.00 Page 49 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-300-61-10-3-120-71151 Compensation-Instructional Asst $12,200.00 32-300-61-10-3-120-72100 FICA $314.00 32-300-61-10-3-120-72210 VRS Pension Contribution $6,330.00 32-300-61-10-3-120-72220 VRS Hybrid Pension Contribution ($68.00) 32-300-61-10-3-120-72300 Group Health and Dental Insurance ($6,024.00) 32-300-61-10-3-120-72400 VRS Group Life Insurance $20.00 32-300-61-10-3-120-72510 Hybrid Disability Insurance $22.00 32-300-61-10-4-120-72750 VRS Retiree Health Care Credit $118.00 32-300-61-10-4-120-71120 Compensation-Instructional Salaries ($55,589.00) 32-300-61-10-4-120-71151 Compensation-Instructional Asst $54,560.00 32-300-61-10-4-120-72100 FICA $2.00 32-300-61-10-4-120-72210 VRS Pension Contribution ($5,850.00) 32-300-61-10-4-120-72220 VRS Hybrid Pension Contribution ($3,803.00) 32-300-61-10-4-120-72300 Group Health and Dental Insurance $2,390.00 32-300-61-10-4-120-72400 VRS Group Life Insurance $518.00 32-300-61-10-4-120-72510 Hybrid Disability Insurance $5,110.00 32-300-61-10-4-120-72750 VRS Retiree Health Care Credit $120.00 32-300-61-10-2-120-76435 Supplies - Instructional $2,966.00 32-680-61-10-2-110-76130 Textbooks $82,350.00 32-680-61-10-2-110-71120 Compensation-Instructional Salaries $331,690.00 32-680-61-10-2-110-72100 FICA $25,374.00 32-680-61-10-2-110-72210 VRS Pension Contribution $54,861.00 32-680-61-10-2-110-72300 Group Health and Dental Insurance $37,628.00 32-680-61-10-2-110-72400 VRS Group Life Insurance $4,212.00 32-680-61-10-2-110-72750 VRS Retiree Health Care Credit $4,013.00 32-680-61-10-2-120-71146 Compensation - ELL ($65,000.00) 32-680-61-10-2-120-72100 FICA ($4,973.00) 32-680-61-10-2-120-72210 VRS Pension Contribution ($10,803.00) 32-680-61-10-2-120-72300 Group Health and Dental Insurance ($9,407.00) Page 50 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-680-61-10-2-120-72400 VRS Group Life Insurance ($871.00) 32-680-61-10-2-120-72750 VRS Retiree Health Care Credit ($787.00) 32-680-61-10-3-121-71120 Compensation-Instructional Salaries ($65,000.00) 32-680-61-10-3-121-72100 FICA ($4,973.00) 32-680-61-10-3-121-72210 VRS Pension Contribution ($10,803.00) 32-680-61-10-3-121-72300 Group Health and Dental Insurance ($9,407.00) 32-680-61-10-3-121-72400 VRS Group Life Insurance ($871.00) 32-680-61-10-3-121-72750 VRS Retiree Health Care Credit ($787.00) 32-680-61-10-4-121-71120 Compensation-Instructional Salaries ($65,000.00) 32-680-61-10-4-121-72100 FICA ($4,973.00) 32-680-61-10-4-121-72210 VRS Pension Contribution ($10,803.00) 32-680-61-10-4-121-72300 Group Health and Dental Insurance ($9,408.00) 32-680-61-10-4-121-72400 VRS Group Life Insurance ($871.00) 32-680-61-10-4-121-72750 VRS Retiree Health Care Credit ($787.00) 32-680-61-10-4-121-76435 Supplies - Instructional ($10,062.00) 32-680-61-22-2-110-71120 Compensation-Instructional Salaries ($18,000.00) 32-680-61-22-2-110-72100 FICA ($1,377.00) 32-680-61-22-2-110-72210 VRS Pension Contribution ($2,992.00) 32-680-61-22-2-110-72300 Group Health and Dental Insurance ($2,822.00) 32-680-61-22-2-110-72400 VRS Group Life Insurance ($241.00) 32-680-61-22-2-110-72750 VRS Retiree Health Care Credit ($218.00) 32-680-61-22-2-120-71120 Compensation-Instructional Salaries ($12,000.00) 32-680-61-22-2-120-72100 FICA ($918.00) 32-680-61-22-2-120-72210 VRS Pension Contribution ($1,994.00) 32-680-61-22-2-120-72300 Group Health and Dental Insurance ($1,881.00) 32-680-61-22-2-120-72400 VRS Group Life Insurance ($161.00) 32-680-61-22-2-120-72750 VRS Retiree Health Care Credit ($145.00) 32-680-61-22-3-110-71120 Compensation-Instructional Salaries ($18,000.00) 32-680-61-22-3-110-72100 FICA ($1,377.00) Page 51 of 73 Grant Fund Budget Adjustments Attachment A Adjustment G/L Account Number Account Description Needed 32-680-61-22-3-110-72210 VRS Pension Contribution ($2,992.00) 32-680-61-22-3-110-72300 Group Health and Dental Insurance ($2,822.00) 32-680-61-22-3-110-72400 VRS Group Life Insurance ($241.00) 32-680-61-22-3-110-72750 VRS Retiree Health Care Credit ($218.00) 32-680-61-22-3-120-71120 Compensation-Instructional Salaries ($12,000.00) 32-680-61-22-3-120-72100 FICA ($918.00) 32-680-61-22-3-120-72210 VRS Pension Contribution ($1,994.00) 32-680-61-22-3-120-72300 Group Health and Dental Insurance ($1,881.00) 32-680-61-22-3-120-72400 VRS Group Life Insurance ($161.00) 32-680-61-22-3-120-72750 VRS Retiree Health Care Credit ($145.00) 32-400-61-10-8-180-71120 Compensation-Instructional Salaries $26,457.00 32-400-61-10-8-180-71151 Compensation - Instructional Asst $32,549.00 32-400-61-10-8-180-72100 FICA $4,515.00 32-400-61-10-8-180-72210 VRS Pension Contribution $9,488.00 32-400-61-10-8-180-72300 Group Health and Dental Insurance $8,855.00 32-400-61-10-8-180-72400 VRS Group Life Insurance $512.00 32-400-61-10-8-180-72750 VRS Retiree Health Care Credit $714.00 32-400-61-10-8-180-73255 Professional Development $6,531.00 32-400-61-10-8-180-76435 Supplies - Instructional $6,531.00 32-400-61-10-8-180-78020 Furniture & Equipment >$5,000 $6,531.00 EXPENSES Total $333,512.00 Fund REVENUE Total: 30 - School General Fund $333,512.00 Fund EXPENSE Total: 30 - School General Fund $333,512.00 Fund Total: 30 - School General Fund ($0.00) Page 52 of 73 General & Cafeteria Fund Budget Adjustments Attachment B Adjustment G/L Account Number Account Description Needed REVENUES 30-110-00-00-9-000-61321 Career & Technical Ed - Equipment ($1,887.00) 30-110-00-00-9-000-61354 Industry Certification Costs ($3,483.00) 30-110-00-00-9-000-61355 CTE STEM-H Industry Credentials ($576.00) 30-110-00-00-9-000-61104 Virginia Workplace Readiness Skills Assessment ($346.00) 30-110-00-00-9-000-61006 Basic Aid $1,597,383.00 30-110-00-00-9-000-61009 Vocational Education $37,353.00 30-110-00-00-9-000-61012 Gifted Education $15,519.00 30-110-00-00-9-000-61015 Special Education $173,531.00 30-110-00-00-9-000-61018 Textbooks (SOQ)$38,656.00 30-110-00-00-9-000-61050 VRS Teacher Retirement Reimb - Instructional $210,495.00 30-110-00-00-9-000-61053 FICA Reimb - Instructional $90,293.00 30-110-00-00-9-000-61056 VRS Group Life Insurance Reimb - Instructional $6,490.00 30-110-00-00-9-000-61101 At Risk $136,566.00 $2,299,994.00 EXPENSES 30-111-61-10-3-110-76167 CTE State Equipment ($1,887.00) 30-110-61-10-3-110-73018 CTE Testing ($4,405.00) 30-110-61-10-2-110-73037 Contractual Services - Other $1,258,637.00 30-110-61-10-3-110-73037 Contractual Services - Other $296,789.00 30-110-61-10-4-110-73037 Contractual Services - Other $492,804.00 30-110-61-10-2-120-73037 Contractual Services - Other $74,656.00 30-110-61-10-3-120-73037 Contractual Services - Other $17,604.00 30-110-61-10-4-120-73037 Contractual Services - Other $29,230.00 30-111-61-10-3-110-76140 Health Sciences ($30,000.00) 30-112-61-10-4-120-71120 Compensation - Instructional Salaries $16,257.00 Page 53 of 73 General & Cafeteria Fund Budget Adjustments Attachment B Adjustment G/L Account Number Account Description Needed 30-112-61-10-4-120-72100 FICA $1,244.00 30-112-61-10-4-120-72220 VRS Hybrid Pension Contribution $2,689.00 30-112-61-10-4-120-72300 Group Health and Dental Insurance $9,407.00 30-112-61-10-4-120-72400 VRS Group Life Insurance $206.00 30-112-61-10-4-120-72750 VRS Retiree Health Care Credit $197.00 30-116-61-10-8-180-71151 Compensation - Instructional Asst $839.00 30-116-61-10-8-180-72100 FICA $65.00 30-116-61-10-8-180-72220 VRS Hybrid Pension Contribution $122.00 30-116-61-10-8-180-72300 Group Health and Dental Insurance $2,907.00 30-116-61-10-8-180-72400 VRS Group Life Insurance ($4.00) 30-116-61-10-8-180-72750 VRS Retiree Health Care Credit $10.00 30-113-61-10-8-180-73037 Contractual Services - Other $250.00 30-116-61-10-8-180-73255 Professional Development $1,250.00 30-116-61-10-8-180-76435 Supplies - Instructional $35,737.00 30-113-61-10-8-180-73037 Contractual Services - Other $250.00 30-113-61-10-8-180-73255 Professional Development $1,250.00 30-113-61-10-8-180-76435 Supplies - Instructional $36,237.00 30-115-61-10-8-180-73037 Contractual Services - Other $250.00 30-115-61-10-8-180-73255 Professional Development $1,250.00 30-115-61-10-8-180-76435 Supplies - Instructional $36,237.00 30-115-61-10-8-180-73037 Contractual Services - Other $250.00 30-114-61-10-8-180-73255 Professional Development $1,250.00 30-114-61-10-8-180-76435 Supplies - Instructional $18,416.00 EXPENSES Total $2,299,994.00 Fund REVENUE Total: 30 - School General Fund $2,299,994.00 Fund EXPENSE Total: 30 - School General Fund $2,299,994.00 Fund Total: 30 - School General Fund $0.00 Page 54 of 73 General & Cafeteria Fund Budget Adjustments Attachment B Adjustment G/L Account Number Account Description Needed Café Fund REVENUES 33-111-65-65-9-510-62395 Federal Aid - Commodities $32,484.00 33-112-65-65-9-510-62395 Federal Aid - Commodities $35,389.00 33-113-65-65-9-510-62395 Federal Aid - Commodities $29,562.00 33-114-65-65-9-510-62395 Federal Aid - Commodities $26,655.00 33-115-65-65-9-510-62395 Federal Aid - Commodities $26,417.00 33-116-65-65-9-510-62395 Federal Aid - Commodities $27,636.00 REVENUES Total $178,143.00 EXPENSES 33-111-65-65-9-510-76120 Food Products $32,484.00 33-112-65-65-9-510-76120 Food Products $35,389.00 33-113-65-65-9-510-76120 Food Products $29,562.00 33-114-65-65-9-510-76120 Food Products $26,655.00 33-115-65-65-9-510-76120 Food Products $26,417.00 33-116-65-65-9-510-76120 Food Products $27,636.00 EXPENSES Total $178,143.00 Fund REVENUE Total: 33 - School Cafeteria Fund $178,143.00 Fund EXPENSE Total: 33 - School Cafeteria Fund $178,143.00 Fund Total: 33 - School Cafeteria Fund $0.00 Page 55 of 73 Item #: 6.G. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Appropriation of Funds Consider request to amend the School Grants Fund, School Capital Projects Fund and School Reserve Fund budgets as approved by the School Board on October 24, 2024. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The budget for various School funds was amended for fiscal year 2024-2025 by the School Board at their meeting on October 24, 2024. The Board amended the budgets to appropriate $1,887,777 from the unallocated capital reserve funds. The attached memo covers the various appropriation changes. Also included is the CIP document for the six-year period, fiscal years 2026 – 2031. FISCAL IMPACT: Appropriation changes totaling $1,887,777 to be made to the School Grants, Capital Projects and Reserve Funds. STAFF RECOMMENDATION: Staff recommends that Council approve the School Board’s appropriation changes of $108,760 to the School Grants Fund, $368,001 to the School Reserve Fund and $1,411,016 to the School Capital Projects Fund per the attached reports. Staff also recommends approval by City Council of the six-year CIP document submitted by the School Board. ATTACHMENTS: 1.CIP Board Report October 2024 2.Amended Attachment A General Fund Requests FY 2024 Fund Balance 10242024 3.Attachment B 6 Year CIP 10082024 4.Attachment C Schools Capital HVAC & Roofing List 10082024 Page 56 of 73 Salem City Schools Capital Improvement Plan (CIP) for 2026-2031 and Projects for FY 2025 October 8, 2024 Summary of Issue: This report is to request the Board to: 1. Approve the proposed projects for FY 2025 from the 6/30/2024 year-end balance and the funding of these projects (Capital Reserve) (Attachment A) 2. Approve the proposed 2026-2031 Six Year CIP (Attachment B, with Appendix C for HVAC & Roofing lists) Background: Salem’s school buildings require on-going major maintenance projects on a regular basis due to age. In recent years this has included such things as roofing replacement, heating and air conditioning work, building renovations, door and window updates, classroom upgrades and similar. In addition, the division has used capital reserve funds traditionally to replace buses, supplement its technology budget, and replace major cafeteria equipment on a planned regular basis to even out future necessary outlays. With the balance available from this past fiscal year, the projects in attachment A are the requests from the Division on how to use these funds. There are 4 categories of how a fund balance is to be reported in the Capital Projects Fund for financial reporting purposes within the statement: 1. Restricted Fund Balance - restricted by external creditors (debt covenants) grantors, contributors 2. Committed Fund Balance - amounts that can only be used pursuant to constraints imposed by legislation, resolution, or ordinance and the constraints can only be removed by the same method 3. Assigned Fund Balance - amounts that are constrained by the government’s intent to be used for specific purposes, but neither restricted or committed 4. Unassigned Fund Balance - any residual fund balance not in the first 3 categories. Policy Reference: FB, Facilities Planning Fiscal Impact: At this time, $1,859,802 of the unallocated capital reserve funding will be categorized in Assigned Fund Balance. The total projects anticipated during the current fiscal year Page 57 of 73 from capital reserve are listed in Attachment A. The total project requests in the CIP for the six-year period FY 2026-2031 are $25,219,818 per Attachment B. Recommended Motion: Move approval of the projects for FY 2025 using funding from the 6/30/2024 year-end balance and meals tax, and request that City Council appropriate funding from these balances as required, and also move approval of the FY 2026-2031 CIP. Page 58 of 73 10/24/2024 Attachment A Capital reserve balance at 6/30/2024 - UNAUDITED $2,018,973 Name of Project Notes Estimated Cost Local Match for Extended School Year Grant We received the grant of $124,588 with a 0.3713 (LCI) match requirement. That would be $46,260.$46,260.00 Local Match for School Security Grant We applied for the max grant of $250,000 with a 25% match requirement. That would be $62,500. $62,500.00 West Gym Floor Resanding Was an insurance claim, but funds were rec'd before work could be completed. Revenue in FY 24 and expenses in FY 25. Hold this revenue back from available fund balance to cover expenses.$26,700.00 Requirement $135,460 SHS Replace Chiller #1 (1996 York) 1 of 2 City Maintenance Request. Due for replacement.$500,000.00 West Salem Gym (replace 2 split system units)City Maintenance Request. Due for replacement.$175,000.00 Continued Division Roof Work Continued roof work by City to our facilities.$130,000.00 Boiler Burner Replacement at ALMS City Maintenance Request. Due for replacement.$27,975.00 GWC HVAC Classroom Units Replacement City Maintenance Request. Due for replacement.$25,000.00 Central Office HVAC Repair 3 Indoor Fan Coil Units City Maintenance Request. Due for replacement.$15,000.00 Replace Central Board on Chiller at SHS City Maintenance Request. Due for replacement.$10,500.00 City Requests $883,475 AI Weapon Detection System (Zero Eyes) Setup Fee for Implementation of System, to include IT infrastructure rqmt's, for an AI weapons detection system for SHS.$181,000.00 Division Security Updates & Storage Needs Repairing SHS main doors, replace doors on storage closet doors at West Salem, & providing storage bldg, adding card reader access for an additional door at West Salem, replacing SHS building doors near tennis courts, removing exterior door handles on 1 door at SHS gym, & replacing broken fireproof student record file cabinets at ALMS.$59,529.00 Phase II Smoke/Duct Work at ALMS Phase II of work at ALMS to replace as necessary per fire marshall.$25,000.00 Walking Path Repairs at West Girls Who Run group (students) use it, and the public, and there are areas that need help on there for safety. Partial repairs with adt'l repairs next year.$12,000.00 Safety $277,529 Network Virtual Server Infrastructure Replacement of 6 year old Cisco Hyperflex environment that has been sunsetted by vendor. The replacement solution would replace an existing 4 node solution running ESXi with 20TB of data that provides access to 95% of the SCS server infrastructure. The anticipated life of the replacement solution would be approximately 5 years.$174,516.00 ALMS Business Labs Computer Update - Phase I 51 PCs - existing lab PCs are aged out. Systems are 5 years old. OptiPlex small form factor. Phase I will replace approx 25 computers.$25,000.00 Technology $199,516 Division Flooring & Finishes Flooring updates at West Salem Cafeteria, removing carpet & polishing concrete in 4 classrooms at SHS, replacing carpet with tile in PreK/Primary classrooms at GWC, AIIMS flooring replacement, Preschool Playground fencing at West Salem, Painting of classrooms at ALMS, & Replacing steps, flooring and railing of SHS band tower.$157,412.00 Phase II of SHS Stage & Auditorium Lighting Project To replace remaining stage lights conversion to LED started in Summer 2024.$100,000.00 SHS Football Fieldhouse Updates Replace bathroom, showers, etc. 1983 editions still.$90,000.00 New stove, 2-Section Upright Refrigerator & Combi Oven in Culinary Arts at SHS This stove would replace the current stove that is old and needs replacing. We had several "gas" related issues last year. The upright fridge is old and larger than what's needed, with unusable shelves. The combi oven is larger than current and a need for the program.$34,385.00 New Scoreboard @ Spartan Field Parks and Rec - $60,000 and they are replacing the lights $700,000.$10,000.00 Instruction & Division Needs $391,797 Total $1,887,777 (Over)/Under Budget $131,196 Salem City Schools CIP Requests from Principals and Central Administrators - FY 2024 Fund Balance Page 59 of 73 October 2024 School Board Meeting Inflation factor 1.03 TBD=Date To Be Determined YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 WHERE THE FUNDING WILL COME FROM: Bond Funds $0 $0 $0 $0 $0 $0 $0 $0 City Funding $0 $0 $0 $0 $0 $0 $0 $0 Schools Funding $0 $0 $0 $0 $0 $0 $0 $0 State Construction Funds $0 $0 $0 $0 $0 $0 $0 $0 Capital Reserve Funds Available Now $0 $0 $0 $0 $0 $0 $0 $0 Future Capital Reserve Funds $5,397,739 $3,376,321 $3,316,988 $5,467,805 $1,500,266 $4,288,936 $1,635,000 $24,983,055 Other Funding Already Appropriated $0 $0 $0 $0 $0 $0 $0 $0 Cafeteria Fund Balance $102,689 $33,370 $24,071 $24,793 $25,537 $26,303 $0 $236,763 $5,500,428 $3,409,691 $3,341,059 $5,492,598 $1,525,803 $4,315,239 $1,635,000 $25,219,818 $25,219,818 WHERE THE FUNDING WILL BE SPENT: YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total Category 1: Recurring Projects FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 General System-Wide Roof Replacement on Regular Schedule $605,000 FCR $575,000 FCR $592,250 FCR $610,018 FCR $628,319 FCR $647,169 FCR $3,657,756 Two School Buses Annually $335,244 FCR $345,301 FCR $355,660 FCR $366,330 FCR $377,320 FCR $388,640 FCR $2,168,495 School Technology- Infrastructure $50,000 FCR $50,000 FCR $100,000 School Technology- Computer Replacement $323,078 FCR $332,770 FCR $342,753 FCR $353,036 FCR $363,627 FCR $374,536 FCR $2,089,800 School Technology- General - Other Computer/Smart Board Replacement $100,000 FCR $100,000 FCR $200,000 Cafeteria/Kitchen Equipment Replacement $22,689 FCR $23,370 FCR $24,071 FCR $24,793 FCR $25,537 FCR $26,303 FCR $146,763 Division Vehicle Replacement $35,000 FCR $35,000 FCR $70,000 Category 2: Future standalone projects East Salem Air Handler Replacement $275,000 FCR $275,000 Replace Air Cooled Chiller at Central $250,000 FCR $250,000 Replace Gym A/C Unit at East $275,000 FCR $275,000 Upsize AHU in Section D at ALMS $300,000 FCR $300,000 Replace Boilers at Carver $165,000 FCR $165,000 Replace Makeup Air units (4) at ALMS Phase I $430,000 FCR $430,000 Replace Makeup Air units (4) at ALMS Phase II $430,000 FCR $430,000 Salem City Schools 10/8/2024 Six Year Capital Improvement Plan (CIP) for FY 2026-2031 Attachment B Page 60 of 73 October 2024 School Board Meeting Inflation factor 1.03 TBD=Date To Be Determined YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 Salem City Schools 10/8/2024 Six Year Capital Improvement Plan (CIP) for FY 2026-2031 Attachment B West Salem Office Roof Top Unit $40,000 FCR $40,000 Replace Boilers at West Salem Phase II $175,000 FCR $175,000 Replace Chiller #2 at SHS Phase II $600,000 FCR $600,000 West Salem Replace Pumps Boiler & Chiller Pumps $250,000 FCR $250,000 West Pump for HVAC Fan Coil Unit Replacement Project $250,000 FCR $250,000 SHS Fieldhouse Football Weight Room RTU Replacement $65,000 FCR $65,000 SHS Storage Building Concrete Pad & Bldg Installation $40,000 FCR $50,000 FCR $90,000 Central Replace Indoor Fan Coil Units $600,000 FCR $600,000 South Salem Replace 2 of 4 Boilers $350,000 FCR $350,000 AIIMS Replace HVAC $10,000 FCR $10,000 Roof Survey/Study $27,000 FCR $27,000 East Walk-in Freezer (evap/condenser/ compressor)$10,000 FCR $10,000 SHS Walk-in Refrigerator (evap/condenser /compressor)$40,000 FCR $40,000 SHS Walk-in Freezer (evap/condenser/ compressor)$40,000 FCR $40,000 Band Instrument Replacement **$60,000 FCR $60,000 FCR $120,000 Connectivity for Transportation (Buses Wi-fi, GPS, etc.) **$78,760 FCR $78,760 Calculator Replacement at Secondary levels $20,000 FCR $20,000 Repave Tennis Courts at SHS $200,000 FCR $200,000 Grand Piano & Risers at SHS **$28,000 FCR $28,000 New Basketball Goals at ALMS Main Gym **$20,000 FCR $20,000 Rider Floor Scrubbers & Building Maintenance $21,000 FCR $21,000 FCR $42,000 Gym Projector for PE at East **$20,000 FCR $20,000 Renovate Art Room at West **$10,000 FCR $10,000 Update Car Drop Off Area at West $26,000 FCR $26,000 Tormach PCNC 100 Package for CTE Program $50,000 FCR $50,000 Haas VF-2 CNC Package $47,000 FCR $47,000 Page 61 of 73 October 2024 School Board Meeting Inflation factor 1.03 TBD=Date To Be Determined YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 Salem City Schools 10/8/2024 Six Year Capital Improvement Plan (CIP) for FY 2026-2031 Attachment B Transportation Office Interior Renovations $50,500 FCR $50,500 2 Phase Replacement of Fitness Equipment at ALMS $15,960 FCR $15,000 FCR $30,960 Walking Path Repairs at West **$38,000 FCR $38,000 GW Carver Wiring Upgrade (IT)$288,000 FCR $288,000 Old Fieldhouse Weightroom Equipment Replacement $70,000 FCR $70,000 Removing carpet and polishing concrete in last 8 remaining rooms at SHS $40,000 FCR $40,000 Remodel Track Field House at SHS**$300,000 FCR $300,000 Painting at SHS in CTE & Hallways**$200,000 FCR $200,000 Build new team room(s) in boys locker room at SHS**$200,000 FCR $200,000 Replace Carpet with Tile in PreK rooms and Primary Classes at Carver**$40,000 FCR $40,000 Replace playground equipment at Carver $50,000 FCR $50,000 Sidewalk extension/handicap access to bus area at West**$15,000 FCR $15,000 Blinds Replacement in classrooms at West $12,000 FCR $12,000 Gym Audio System at West $12,278 FCR $12,278 Scan old records at ALMS $23,327 FCR $23,327 Work Stations at FACS & Tech Ed at ALMS $34,156 FCR $34,156 Dyson Airblade V Hand Dryers at ALMS $20,000 FCR $20,000 CTE Air Conditioning & Heat at SHS**$300,000 FCR $300,000 Brick Wall Painted in Commons at SHS **$10,000 FCR $10,000 Re-Tiling of Cafeteria Floor at ALMS **$127,976 FCR $127,976 Continued Painting & Rehabilitation of ALMS Classrooms **$20,000 FCR $20,000 Replace Tile in Room 119 at ALMS **$10,000 FCR $10,000 Safety Needs: 2nd AIPHONE JK-1 MD Installation at West ** $15,000 FCR $15,000 Carpet Replacement in Classrooms at West $12,322 FCR $12,322 Page 62 of 73 October 2024 School Board Meeting Inflation factor 1.03 TBD=Date To Be Determined YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 Salem City Schools 10/8/2024 Six Year Capital Improvement Plan (CIP) for FY 2026-2031 Attachment B Painting of Classrooms & Cafeteria at West **$14,000 FCR $10,000 FCR $24,000 Transportation office vertical expansion **$85,000 FCR $85,000 Division Cat6 Incremental Installation/replacement Phase II & III **$17,250 FCR $51,750 FCR $69,000 Projector Replacements (Auditorium) **$20,000 FCR $20,000 SHS CADD/Robotics (room 2421) System Replacements $40,776 FCR $40,776 Replacement of ALMS Business Lab Computers Phase II $26,000 FCR $26,000 Cooling of MDF/IDF Closets Phase II $92,924 FCR $92,924 Update gas lines in Chemistry Classrooms at SHS (3) **$15,000 FCR $15,000 Add Blacktop & Parking at End of Field at Carver **$10,000 FCR $10,000 Replacement of Crossing Guard Shacks (3)$22,500 FCR $22,500 Replacement Timeclocks for HR/Payroll $38,388 FCR $38,388 Band Room Storage Shelving at SHS **$10,000 FCR $10,000 Paint Stairwell & Steps in Hallway by Gym at SHS **$10,000 FCR $10,000 Update Interior Bathrooms to Match Newer Parts of Bldg at SHS **$100,000 FCR $100,000 Phase II Seating Replacement in Band Room at ALMS $11,400 FCR $11,400 Refurbish 6th Grade Hallway Flooring at ALMS $21,349 FCR $21,349 Cubicle System for Transportation Offices $18,376 FCR $18,376 Activity School Bus $165,000 FCR $165,000 AIIMS Exterior Badge Readers **$14,000 FCR $14,000 Science Area Fencing at SHS (roof access) **$10,000 FCR $10,000 Auto Shop Reconstruction at SHS **$15,000 FCR $15,000 Squeeze Type Resistance Spot Welder at SHS **$15,000 FCR $15,000 Page 63 of 73 October 2024 School Board Meeting Inflation factor 1.03 TBD=Date To Be Determined YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 TBD FY 2026-2031 Salem City Schools 10/8/2024 Six Year Capital Improvement Plan (CIP) for FY 2026-2031 Attachment B Badge Reader @ SHS Auditorium **$10,000 FCR $10,000 Security Lock & Key (Door Access System) Transition to Cloud $71,000 FCR $71,000 Clock Replacement at SHS $17,000 FCR $17,000 Phase III of SHS Stage & Auditorium Lighting Project $180,000 FCR $180,000 Overhang Area at Outside of SHS Fieldhouse **$70,000 FCR $70,000 Category 3: Future Projects which might become part of a school-wide renovation None $0 Category 4: School- Wide Renovations TBD None $0 Category 5: Partial School Renovations Facility Planning Study $60,000 FCR $60,000 West Salem Elementary School Improvements $3,873,421 BD $3,873,421 (1) East Salem Elementary School Improvements $2,783,591 BD $2,783,591 (1) G W Carver Elementary School Improvements $0 BD $0 AIIMS Phase II Bldg Improvements $1,635,000 BD $1,635,000 (1) Totals $5,500,428 $3,409,691 $3,341,059 $5,492,598 $1,525,803 $4,315,239 $1,635,000 $25,219,818 Cross footing $25,219,818 Notes: All items in BOLD ITALICS have been inflation adjusted based on School Board guidance in prior years (by 3%) ** = Formal quotes needed; internal estimates used for illustration/planning purposes Legend:FCR=Future Capital Reserve BD = Bond Issues by City CR=Capital Reserve (1) Amounts for West and East are from a 2021 Assessment completed by RRMM. A 6% inflation factor was added to that amount to allow for an increase to today's cost. Amount for AIIMS is from a Summer 2023 estimate by RRMM. Page 64 of 73 Attachment C Total FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2024-2031 West Salem Replace Boilers 1 of 2 100,000.00$ 100,000.00$ Roof Work 368,000.00$ 368,000.00$ ALMS Replace Cooling Tower 80,000.00$ 80,000.00$ West Salem Gym (replace 2 split system units) 150,000.00$ 150,000.00$ SHS Art Room HVAC Controls Replacement/Update 10,000.00$ 10,000.00$ Upcoming Ranking 1 West Salem Gym (replace 2 split system units)175,000.00$ 175,000.00$ 2 West Salem Replace Pumps Boiler and Chiller Pumps 250,000.00$ 250,000.00$ 3 SHS Replace Chiller #1 (1996 York) 1 of 2 500,000.00$ 500,000.00$ 4 West Salem Office Roof top unit 40,000.00$ 40,000.00$ 5 GWC HVAC Classroom Units Replacement 25,000.00$ 25,000.00$ 6 Central Repair 3 Indoor Fan Coil Units 15,000.00$ 15,000.00$ 7 SHS Storage Building - Concrete Pad Only (Buidling to be installed FY26)40,000.00$ 40,000.00$ 8 West Pump for HVAC Fan Coil Unit Replacement Project 250,000.00$ 250,000.00$ 9 SHS Fieldhouse Football Weight Room RTU Replacement 65,000.00$ 65,000.00$ 10 SHS Walk in Refrigerator (evap/condenser/compressor)40,000.00$ 40,000.00$ 11 SHS Walk in Freezer (evap/condenser/compressor)40,000.00$ 40,000.00$ 12 East Salem HVAC Work Replace Gym A/C Unit 275,000.00$ 275,000.00$ 13 ALMS Replace makeup air units (there are four in total, replace two)430,000.00$ 430,000.00$ 14 East Salem Air Handler Replacement in multipurpose room (cafeteria)275,000.00$ 275,000.00$ 15 SHS Storage Building Installed 50,000.00$ 50,000.00$ 16 ALMS Replace makeup air units (there are four in total, replace two)430,000.00$ 430,000.00$ 17 ALMS Upsize AHU in section D that will not adequately cool the space (design/ replace) RTU-3 300,000.00$ 300,000.00$ 18 GWC Replace 2 of 2 Boilers 165,000.00$ 165,000.00$ 19 Central Replace Air Cooled Chillers at School Board (97 & 91 models) 2 of 2 250,000.00$ 250,000.00$ 20 West Salem Replace Boilers 2 of 2 175,000.00$ 175,000.00$ 21 SHS Replace Chiller #2 (1996 York) 2 of 2 600,000.00$ 600,000.00$ 22 Central Replace Indoor Fan Coil Units 600,000.00$ 600,000.00$ 23 South Salem Replace 2 of 4 Boilers 350,000.00$ 350,000.00$ 24 School Facility Study 150,000.00$ 150,000.00$ 25 School Roof Survery 150,000.00$ 150,000.00$ 26 AIIMS Replace HVAC 27,000.00$ 27,000.00$ -$ Totals 708,000.00$ 755,000.00$ 1,715,000.00$ 1,145,000.00$ 1,725,000.00$ 150,000.00$ 177,000.00$ -$ 6,375,000.00$ 6,375,000.00$ Roofing Project Name Total FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2024-2031 -$ see above -$ 130,000.00$ 130,000.00$ 750,000.00$ 750,000.00$ 600,000.00$ 600,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ -$ . Totals -$ 130,000.00$ 750,000.00$ 600,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 400,000.00$ 3,080,000.00$ 885,000.00$ 2,465,000.00$ 1,745,000.00$ 2,125,000.00$ 550,000.00$ 577,000.00$ 400,000.00$ 9,455,000.00$ HVAC Locations to be determined per recommendation from City & Facility Study Funded/In Process Page 65 of 73 Item #: 6.H. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: Appropriation of Funds Request to Appropriate Fund Balance for Software Purchase. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: Funding of $254,000 was included in the fiscal year 2025 budget to purchase Avenity, a new tax billing and collection software to be used by the Commissioner of Revenue and Treasurer. A newer version will be implemented which resulted in a higher cost. An additional $101,000 is needed to fund the purchase. FISCAL IMPACT: Appropriating fund balance will provide additional funding needed to purchase new software. STAFF RECOMMENDATION: Staff recommends appropriating $101,000 to the Designation of Beginning Fund Balance account, 10-012-0100-40200, and increasing the budget by $101,000 in the Software account in the Commissioner of Revenue’s budget, 10-007-1231-58025. ATTACHMENTS: None Page 66 of 73 Item #: 6.I. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: November 12, 2024 AGENDA ITEM: New Metal Building - 744 Electric Road Consider setting bond for erosion and sediment control and landscaping for New Metal Building - 744 Electric Road. Audit - Finance Committee SUBMITTED BY: Chuck Van Allman, Director of Community Development SUMMARY OF INFORMATION: The City Engineer's office has reviewed the estimate for erosion and sediment control and landscaping for New Metal Building - 744 Electric Road. FISCAL IMPACT: STAFF RECOMMENDATION: It is recommended that the project be bonded in the amount of $20,513.00 for a time frame for completion set at twelve (12) months. ATTACHMENTS: 1. Council Ltr & Bond Estimate 11-1-2024 Page 67 of 73 Page 68 of 73 Page 69 of 73 Item #6K Date: 11/12/2024 November 12, 2024 Council of the City of Salem Salem, Virginia 24153 Dear Council Members: For your information, I am listing appointments and vacancies on various boards and commissions: Board or Commission Recommendation Board of Equalization of Real Estate Assessments Recommend Wendel Ingram and Kathy Fitzgerald for Circuit Court reappointment for three-year terms ending November 30, 2027. Community Policy Management Team (CPMT) Upon CPMT approval, recommend appointing Casey Mabery as additional alternate for the private provider, Gift of Hope. Economic Development Authority Recommend that Council re-appoint Sean B. Kosmann and Joe Curran for four-year terms ending December 14, 2028. Personnel Board Recommend that Council re-appoint Garry Lautenschlager for a two-year term ending November 23, 2026. Vacancies Board of Zoning Appeals Need one alternate member, Remainder of five-year term ending November 13, 2028. Roanoke River Blueway Advisory Committee Need one member, two-year term Sincerely, Laura Lea Harris Laura Lea Harris Deputy Clerk of Council Page 70 of 73 CITY OF SALEM, VIRGINIA BOARDS AND COMMISSIONS November, 2024 MEMBER EXPIRATION OF TERM BLUE RIDGE BEHAVIORAL HEALTHCARE Term of Office: 3 years (3 terms only) Denise P. King 12-31-24 Rev. C. Todd Hester 12-31-25 Dr. Forest Jones 12-31-26 AT LARGE MEMBERS: Patrick Kenney 12-31-25 Helen Ferguson 12-31-26 Bobby Russell 12-31-24 BOARD OF APPEALS (USBC BUILDING CODE) Term of Office: 5 years Steve Poff 1-01-26 Robert S. Fry, III 1-01-28 Patrick Snead 1-01-25 Ray Varney 5-11-25 Joseph Driscoll 1-01-28 ALTERNATES: David Hodges 12-12-26 Chelsea Dyer 8-09-25 David Botts 1-01-29 BOARD OF EQUALIZATION OF REAL ESTATE ASSESSMENTS Term of Office: 3 years (appointed by Circuit Court) Wendel Ingram 11-30-24 N. Jackson Beamer, III 11-30-24 David A. Prosser 11-30-25 Janie Whitlow 11-30-26 Kathy Fitzgerald 11-30-24 BOARD OF ZONING APPEALS Term of Office: 5 years (appointed by Circuit Court) F. Van Gresham 3-20-27 Frank Sellers 3-30-28 Steve Belanger 6-05-29 Gary Lynn Eanes 3-20-25 Tom Copenhaver 3-20-27 ALTERNATES: Tony Rippee 10-12-28 Jeff Zoller 3-1-28 Vacant 11-13-28 CHIEF LOCAL ELECTED OFFICIALS (CLEO) CONSORTIUM No Term Limit H, Hunter Holliday Alternate: Vacant MEMBER EXPIRATION OF TERM COMMUNITY POLICY AND MANAGEMENT TEAM No term limit except for Private Provider (Names) (Alternates) Rosie Jordan Tammy Todd Laura Lea Harris Crystal Williams Kevin Meeks Joshua Vaught Amy Cole Jasmin Lawson Cathy Brown Leigh Frazier Howard Shumate Heather Gunn Courtenay Alleyne Deborah Breedlove Mark Chadwick Parent Rep-Vacant Vacant Sue Goad Chrissy Brake Randy Jennings Bridget Nelson Vacant Mandy Hall Sean Slusser Seth Chamberland Health Dept. - Vacant Vacant Wendel Cook Jessica Cook *Note: Rosie Jordan will serve as Fiscal Agent For the City of Salem ECONOMIC DEVELOPMENT AUTHORITY Term of Office: 4 years (Requires Oath of Office) William Q. Mongan 3-09-27 Paul C. Kuhnel 3-09-28 J. David Robbins 3-09-28 Cindy Shelor 4-10-25 Jason Fountain 3-09-25 Sean B. Kosmann 12-14-24 Joe Curran . 12-14-24 FAIR HOUSING BOARD Term of Office: 3 years Betty Waldron 7-01-25 Melton Johnson 7-01-26 Cole Keister 8-09-27 Pat Dew 3-01-27 Janie Whitlow 4-09-27 Page 71 of 73 MEMBER EXPIRATION OF TERM FINE ARTS COMMISSION (INACTIVE) Term of Office: 4 years Cameron Vest 5-01-15 Julie E. Bailey Hamilton 5-01-15 Brenda B. Bower 7-26-12 Vicki Daulton 10-26-12 Hamp Maxwell 10-26-12 Fred Campbell 5-01-13 Rosemary A. Saul 10-26-13 Rhonda M. Hale 10-12-14 Brandi B. Bailey 10-12-14 STUDENT REPRESENTATIVES LOCAL OFFICE ON AGING Term of Office: 3 years John P. Shaner 3-01-27 Partnership for a Livable Roanoke Valley (INACTIVE) Term of Office: Unlimited PERSONNEL BOARD Term of Office: 2 years William R. Shepherd 6-09-25 J. Chris Conner 8-12-25 Margaret Humphrey 8-12-25 Garry Lautenschlager 11-23-24 Teresa Sizemore-Hernandez 4-26-25 PLANNING COMMISSION AND NPDES CITIZENS' COMMITTEE Term of Office: 4 years Mark Henrickson 7-31-26 Denise “Dee” King 7-31-26 Nathan Routt 7-26-27 Reid Garst 7-31-26 N. Jackson Beamer 8-28-27 REAL ESTATE TAX RELIEF REVIEW BOARD Term of Office: 3 years David G. Brittain 2-14-25 Wendel Ingram 6-11-27 Daniel L. Hart 2-14-27 ROANOKE REGIONAL AIRPORT COMMISSION Term of Office: 4 years Dale T. Guidry 7-1-28 ROANOKE RIVER BLUEWAY ADVISORY COMMITTEE Term of Office: 2 years Jeff Ceasar 6-30-24 Vacant 6-30-25 MEMBER EXPIRATION OF TERM ROANOKE VALLEY-ALLEGHANY REGIONAL COMMISSION Term of Office: 3 years H. Hunter Holliday 6-30-27 Dee King 6-30-26 James W. Wallace, III 6-30-27 ROANOKE VALLEY BROADBAND AUTHORITY Term of Office: 4 years H. Robert Light 12-14-27 Mike McEvoy (Citizen At-large) 12-13-25 ROANOKE VALLEY DETENTION COMMISSION No Terms Member Alternate Vacant Rosemarie Jordan ROANOKE VALLEY GREENWAY COMMISSION Term of Office: 3 years Dr. Steven L. Powers 11-08-27 Russ Craighead 7-25-25 Skip Lautenschlager 9-26-26 ROANOKE VALLEY RESOURCE AUTHORITY Term of Office: 4 years Rob Light 12-31-27 ROANOKE VALLEY TRANSPORTATION PLANNING ORGANIZATION (TPO) POLICY BOARD Term of Office: 3 years Renee F. Turk 6-30-26 H. Hunter Holliday 6-30-26 Alternate: Byron R. Foley 6-30-26 SCHOOL BOARD OF THE CITY OF SALEM Term of Office: 3 years Nancy Bradley 12-31-24 Teresa Sizemore-Hernandez 12-31-24 Andy Raines 12-31-25 Stacey Danstrom 12-31-25 Macel Janoschka 12-31-26 SOCIAL SERVICES ADVISORY BOARD Term of Office: 4 years, 2 term limit Heath Rickmond 12-01-26 TOTAL ACTION FOR PROGRESS Term of Office: 2 years Byron Randolph Foley 11-13-25 (vacant - full-time alternate) Page 72 of 73 MEMBER EXPIRATION OF TERM TRANSPORTATION TECHNICAL COMMITTEE (TTC) Term of office: 3 years Crystal Williams 6-30-26 Josh Pratt 6-30-26 Alternate: Vacant 6-30-26 Alternate: Max Dillon 6-30-26 VIRGINIA WESTERN COMMUNITY COLLEGE LOCAL ADVISORY Term of Office: 4 years (2 terms only) Dr. Forest I. Jones, Jr. 6-30-26 VIRGINIA’S BLUE RIDGE BOARD Term of Office: No term limit Chris Dorsey John Shaner WESTERN VIRGINIA EMERGENCY MEDICAL SERVICES COUNCIL Term of office: 3 years Deputy Chief Matt Rickman 12-31-25 WESTERN VIRGINIA REGIONAL INDUSTRIAL FACILITY AUTHORITY Term of Office: 4 years (Requires Oath of Office) Tommy Miller 2-3-26 Chris Dorsey 2-3-28 Crystal Williams (Alternate) 2-3-26 H. Robert Light (Alternate) 2-3-28 WESTERN VIRGINIA REGIONAL JAIL AUTHORITY Term of Office: 1 year – Expires 12-31-24 (Requires Oath of Office) William D. Jones Alternate: Byron R. Foley Rosemarie Jordan Alternate: Chris Dorsey April M. Staton Alternate: Chief Deputy-Major Steve Garber Page 73 of 73