HomeMy WebLinkAbout11/8/2021 - City Council - Agenda -Regular
Ci ty Council Meeting
AGENDA
Monday, November 8, 2021, 6:30 PM
Wo rk S es s io n 5:45 P.M. P arlor A, S alem C ivic C enter, 1001 R oanoke Bo ulevard, S alem, Virginia 24153
R egular S es s io n 6:30 P.M. C ommunity R oom, S alem C ivic C enter, 1001 R oanoke Boulevard, S alem, Virginia 24153
WORK SE SSI ON
1.C all to Order
A.Roll Call
2.New Business
A.Discussion I tems
1) C ity Legislative Agenda Planning Discussion
2) Options for painting Kime Lane Water Tank
3.Adjournment
RE GU L AR SE S SI ON
1.C all to Order
2.Pledge of Allegiance
3.Bid Openings, Awards, Recognitions
4.C onsent Agenda
A.Citizen Comments
C omments from the public, limited to five minutes, on matters not already having a public hearing
component that same meeting. T he following have signed up to speak at this meeting:
1) Yancey C obb, 2485 Poff Lane - Voting processes
2) Frank Munley, 425 Roanoke Boulevard - Request for Salem City Council to endorse the
Environmental Protection Agency's position in regards to MVP
3) Nora Smith, 1135 Lynchburg Turnpike - C oncerns with MVP
4) C ynthia Munley, 425 Roanoke Boulevard - Protecting Salem's Investments, including the
Greenway
B.Minutes
C onsider acceptance of the minutes for the October 25, 2021, J oint Work Session with the Salem
C ity School Board and Regular Meeting minutes and the November 2, 2021 Special Meeting
minutes.
5.Old Business
A.Amendment to the Zoning Ordinance
C onsider ordinance on second reading for rezoning the property of .Com Properties 8, LLC ,
property owner, located at 1796 Apperson Drive (a portion of Tax Map # 257-2-1.1) from HBD
Highway Business District to LM Light Manufacturing District.(Approved on first reading at the
October 25, 2021 meeting.)
6.New Business
A.Amendment to the City Code - Chapter 22
Hold a public hearing and consider on first reading an ordinance to amend multiple sections of
Article II, C hapter 22, of T he C ode of the City of Salem, Virginia, to exempt businesses with less
than $50,000 in gross receipts from the annual business license tax and set the annual licensure fee
at $50 applicable for businesses with gross receipts less than $50,000 annually in accordance with
US Census based population business taxation provisions in Title 58.1 of the C ode of Virginia.
Advertised in the October 30, 2021 issue of the Roanoke Times. Audit - Finance Committee
B.Appropriation of F unds
C onsider request to amend the School Capital Projects Fund budget as approved by the School
Board on October 12, 2021. Audit - Finance C ommittee
C .Appropriation of F unds
C onsider request to amend the School Capital Projects Fund budget as approved by the School
Board on November 2, 2021 and appropriate funding of $414,062 for the Salem High School
Fieldhouse renovation project. Audit - Finance Committee
D.Appropriation of F unds
C onsider request to appropriate Smart Scale funding for Mason C reek Greenway Phase 3. Audit -
Finance C ommittee
E.L ong John Silv er's
C onsider setting bond for physical improvements and erosion and sediment control and landscaping
for Long J ohn Silver's. Audit - Finance C ommittee
F.RD G
C onsider setting bond for physical improvements and erosion and sediment control and landscaping
for RD G. Audit - Finance C ommittee
G.Opioid Settlements Resolution
C onsider adoption of Resolution 1414 approving the City’s participation in the proposed settlement
of opioid-related claims against McKesson, C ardinal Health, Amerisourcebergen, J anssen, and
their related corporate entities, and directing the City Attorney and/or City’s outside counsel to
execute the documents necessary to effectuate the City’s participation in the settlements.
H.Amendment to Administrativ e Calendar for 2022
C onsider adoption of amended Administrative C alendar for 2022.
I.Union Street Contract
Authorize the City Manager to execute the amended agreement for the sale of a parcel known as
Lot A, 630 Union Street, Tax Map #160-11-2, consisting of 1.4021 acres. (Public hearing was held
on November 14, 2016).
J .B oards and Commissions
C onsider appointments to various boards and commissions.
7.Adjournment
Audit-Finance Committee Meeting, November 4, 4:00 p.m., City Manager's Conference Room, 114 N. Broad Street, Salem
Item #4B
Date: 11/08/2021
City Council Meeting
MINUTES
Monday, October 25, 2021, 6:30 PM
Work Session 5:30 P.M. Community Room, Salem Civic Center, 1001 Roanoke Boulevard, Salem, Virginia 24153
Regular Session 6:30 P.M. Community Room, Salem Civic Center, 1001 Roanoke Salem, Virginia 24153
WORK SESSION
1. Call to Order
A joint work session of the Council of the City of Salem, Virginia, along with the
City of Salem School Board was held in the Community Room at the Salem Civic
Center, 1001 Roanoke Boulevard, Salem, Virginia, on October 25, 2021, 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, William D. Jones, and John Saunders; James E. Taliaferro, II,
City Manager; H. Robert Light, Assistant City Manager and Clerk of Council;
Tammy Todd, Assistant Director of Finance; Mike Stevens, Director of
Communications; Mike Tyler, Director of Streets and General Maintenance; Crystal
Williams, Assistant to the City Manager; and Laura Lea Harris, Deputy Clerk of
Council. Also present were: Dr. Curtis Hicks, Superintendent; Dr. Forest Jones,
Director of Administrative Services; Mandy Hall, Director of Business Services;
and Kathy Jordan, Clerk of the Board and Executive Secretary. School Board
Members present were: David Preston, Teresa Sizemore-Hernandez, Artice M.
Ledbetter, Nancy Bradley, and Andy Raines; along with Chris Phillips and Michael
Mauceri of RRMM Architects; and the following business was transacted:
Mayor Turk reported that this date, place, and time had been set in order for
the Council to hold a work session; Mayor Turk called the Council meeting to
order; and
WHEREAS, David Preston, Chair of the Salem School Board, called the
School Board meeting to order; and
2. New Business
A. Discussion Items
1) Joint Session with Salem City School Board - Salem City Schools Capital
Improvement Plan and Fieldhouse Project
Item #4B
Date: 11/08/2021
WHEREAS, Mandy Hall distributed handouts to Council and Staff and gave an
overview of the Capital Improvement Projects requests. Questions were asked by
Council and responded to. Ms. Hall also discussed the six-year CIP plan for Fiscal
Years 23-28 which fall into the following categories: recurring, stand-alone, future
projects that may become part of a school-wide renovation, school-wide renovations
to be determined, and partial school renovations; and
WHEREAS, Chris Phillips and Michael Mauceri, with RRMM Architects,
presented a PowerPoint presentation that was a continuation from the July 12, 2021
Joint meeting on the Salem High School Fieldhouse study. The details involving
the elimination of new classrooms and weight room expansion were discussed,
questions were asked by Council and discussion was held; and
3. Adjournment
WHEREAS, there being no further business, Mr. Preston and Mayor Turk
adjourned the meeting at 6:27 P.M.
REGULAR SESSION
1. Call to Order
A regular meeting of the Council of the City of Salem, Virginia was called to order
at 6:32 p.m., there being present the following members to wit: Renée Ferris Turk,
Mayor; James W. Wallace, III, Vice-Mayor; Councilmembers: Byron Randolph
Foley, William D. Jones, and John Saunders; with Renée Ferris Turk, Mayor,
presiding together with James E. Taliaferro, II, City Manager; Rob Light, Assistant
City Manager and Clerk of Council; Tammy Todd, Assistant Director of Finance;
Chuck Van Allman, Director of Community Development; Mike Stevens, Director
of Communications; and Jim Guynn, City Attorney.
2. Pledge of Allegiance
3. Bid Openings, Awards, Recognitions
4. Consent Agenda
A. Citizen Comments
Comments from the public, limited to five minutes, on matters not already having a
public hearing component that same meeting. The following have signed up to
speak at this meeting:
1) Cynthia Munley, 425 Roanoke Boulevard
2) Matthew Fleenor, 1511 W. Carrollton Avenue
Item #4B
Date: 11/08/2021
3) Nora Smith, 1135 Lynchburg Turnpike
4) Annette Thompson, 739 Maryland Avenue
Mayor Turk explained how the timer would work for the citizen comment period.
1) Cynthia Munley, 425 Roanoke Boulevard, appeared before Council. She stated
that she is the organizer of Preserve Salem. She shared research she had gathered
on the Mountain Valley Pipeline and concerns with this that these groups are
working to protect the Roanoke River and Greenway against. She requested that
Salem submit comments concerning the MVP's new 401 permit request to the
Virginia Water Control Board before the deadline of October 27, 2021. She
specifically addressed threats to the Roanoke River that have been pointed out by the
Environmental Protection Agency in its letter to the Army Corps of Engineers listing
the harms that MVP poses for the environment and downstream communities like
Salem. She stressed the proximity of the MVP to Salem and the potential damage to
the water supply. She requested that Salem sign a proposed letter that she had
provided listing EPA's reasons to recommend non-approval to take a stand and
register concerns as a municipal entity to prevent potential harms from MVP that
could impact on the long-term viability of Salem’s major Salem water source.
2) Matthew Fleenor, 1511 W. Carrollton Avenue, addressed Council. He also
expressed concerns about MVP. He shared the importance of clean water to this
area. He commented on the quality of the water from the Roanoke River and that
he would like to keep it that way. He remarked that clean water is essential to
Salem’s local businesses, hospitals, and families. He expressed the opinion that
Salem had made a very big investment in their state-of-the-art water treatment plant
and that it needed to be protected from MVP and its potential effects on the
economy and health of Salem's citizens. He addressed concerns of sediment and
stormwater that could become issues caused by the Mountain Valley Pipeline as
well as financial costs related to the pipeline. He also requested that Council
submit letter to the Virginia State Water Control Board concerning the EPA's letter
to the Army Corps of Engineers recommending non-approval of the MVP's new
request for a higher level of water crossing permit for crossing Virginia's waterways
under the US Clean Water Act.
3) Nora Smith, 1135 Lynchburg Turnpike, was not present at the meeting.
4) Annette Thompson, 739 Maryland Avenue, was the last citizen to speak before
Council. She expressed concerns about the financial soundness of the Mountain
Valley Pipeline project as well as potential harm to downstream communities. Mrs.
Thompson spoke of danger to the wetlands that supply local aquifers. She also
requested that City Council submit the proposal letter or a version of it as comment
to the Virginia State Water Board before the deadline of October 27 in an effort to
Item #4B
Date: 11/08/2021
keep MVP from receiving the permit they are seeking under the Clean Water Act.
Mayor Turk thanked the citizens for all of the work they did to compile and share
information with Council and for taking their time to come speak with Council.
B. Minutes
Consider acceptance of the minutes for the October 11, 2021, Joint Work Session
with EDA and Regular Meeting Minutes.
The minutes for the October 11, 2021 Joint Work Session with EDA and Regular
Meeting minutes were approved as written.
C. Financial Report
Consider acceptance of the Statement of Revenues and Expenditures for the three
months ending September 2021.
The financial reports were received.
Mr. Foley emphasized that sales tax, meals tax, and lodging taxes were up
significantly over the first three months of this fiscal year, even over last year and
previous years.
5. Old Business
A. Ordinance for Bonuses
Consider ordinance on second reading authorizing the City Manager to: 1) pay a
bonus up to $2,000 for non-exempt, full-time employees authorized at the
September 2, 2021 Council meeting to receive up to a net $2,000 increase between
a wage increase and bonus for eligible employees at or near the top of their current
pay scale; 2) pay a $3,000 bonus to all sworn, full-time Sheriff’s Department
employees subsequent to the General Assembly’s mandate for Compensation
Board such positions; and 3) provide salary increases to certain Electric Department
non-exempt employees reclassified in the FY22 budget process but excluded in the
September 2, 2021 action that are otherwise eligible to net a $2/hour increase
between the FY22 reclassification increases and this action.
John Saunders motioned to adopt ordinance on second reading authorizing the City
Manager to: 1) pay a bonus up to $2,000 for non-exempt, full-time employees
authorized at the September 2, 2021 Council meeting to receive up to a net $2,000
increase between a wage increase and bonus for eligible employees at or near the
top of their current pay scale; 2) pay a $3,000 bonus to all sworn, full-time Sheriff’s
Department employees subsequent to the General Assembly’s mandate for
Compensation Board such positions; and 3) provide salary increases to certain
Electric Department nonexempt employees reclassified in the FY22 budget process
Item #4B
Date: 11/08/2021
but excluded in the September 2, 2021 action that are otherwise eligible to net a
$2/hour increase between the FY22 reclassification increases and this action. Randy
Foley seconded the motion.
Ayes: Foley, Jones, Saunders, Turk, Wallace
6. New Business
A. Amendment to the Zoning Ordinance
Hold public hearing and consider ordinance on first reading for rezoning the property
of .Com Properties 8, LLC, property owner, located at 1796 Apperson Drive (a
portion of Tax Map # 257-2-1.1) from HBD Highway Business District to LM
Light Manufacturing District. (As advertised in the October 7 and 14, 2021 issues
of the Salem Times-Register). Planning Commission recommends approval; see
page 4 of Planning Commission minutes. STAFF REPORT
Mr. Van Allman noted that this is the former Food Lion on Apperson.
Mayor Turk opened the public hearing. No one came forward to speak. Mayor
Turk closed the public hearing.
Mr. Foley asked if the duration of the lease was known. Mr. Ben Crew, Balzer and
Associates, acting agent of the owner, responded that this information is not known.
Council requested that Staff try to find out the duration of the lease and get back to
Council with this information.
Randy Foley motioned to adopt ordinance on first reading for rezoning the property
of .Com Properties 8, LLC, property owner, located at 1796 Apperson Drive (a
portion of Tax Map # 257-2-1.1) from HBD Highway Business District to LM
Light Manufacturing District. William Jones seconded the motion.
Ayes: Foley, Jones, Saunders, Turk, Wallace
B. Administrative Calendar for 2022
Consider adoption of the administrative calendar for 2022.
Mr. Taliaferro clarified that annually Council adopts the calendar for the following
calendar year. He stated that there are no major changes to the calendar being
proposed and that it includes holidays for next year.
William Jones motioned to adopt the administrative calendar for 2022. Randy Foley
seconded the motion.
Item #4B
Date: 11/08/2021
Ayes: Foley, Jones, Saunders, Turk, Wallace
C. Salem Band Boosters
Consider request from the Salem Band Boosters for a donation ($691.60) equal to
the amount of admissions tax paid in connection with the annual Blue Ridge
Regional High School Band Competition held on September 18, 2021, at the Salem
Stadium.
Mr. Taliaferro explained that the City occasionally receives a request from a charity
or a 501(c)(3) for a refund of admissions tax. He clarified that the City cannot do a
refund; however, the City can make a donation in that amount to the charity and that
this is to the Salem Band Boosters for an event earlier this year.
John Saunders motioned to approve request from the Salem Band Boosters for a
donation ($691.60) equal to the amount of admissions tax paid in connection with
the annual Blue Ridge Regional High School Band Competition held on September
18, 2021, at the Salem Stadium. Randy Foley seconded the motion.
Ayes: Foley, Jones, Saunders, Turk, Wallace
D. Boards and Commissions
Consider appointments to various boards and commissions.
Mayor Turk stated that there were several positions that were available and asked if
there were any nominations. There were no new nominations presented.
Randy Foley motioned to reappoint Randy Foley to the Total Action for Progress
Board for a two-year term ending November 13, 2023 and to recommend
reappointing William D. Jones, James E. Taliaferro, II, and April M. Staton as
Members and Byron R. Foley, Rosemarie Jordan, and B. Todd Clingenpeel as
Alternates to the Western Virginia Regional Jail Authority for one-year terms ending
December 31, 2022. John Saunders seconded the motion.
Ayes: Foley, Jones, Saunders, Turk, Wallace
7. Adjournment
Mr. Foley stated that he would be comfortable rewording what was sent in 2017 as
it was addressed to a different entity and sending a similar resolution to the State
Water Control Board in reference to the MVP request since the deadline was so
soon.
Item #4B
Date: 11/08/2021
Mayor Turk commented that as the letter that had been proposed was so lengthy and
detailed it would take longer than the two-day deadline period to research.
Mr. Saunders commented that he concurred and felt that redoing Resolution 1324
would be a good solution.
Mr. Foley read Resolution 1324 that was submitted in 2017 to the Commonwealth
of Virginia.
There was discussion among the Council members.
Jim Guynn advised that they make a motion.
Mr. Foley motioned to adopt the next resolution number rewording Resolution 1324
to be directed to the Virginia State Water Control Board. Mr. Saunders seconded
the motion.
Ayes: Foley, Jones, Saunders, Turk, Wallace
Mr. Taliaferro clarified that the resolution would be number 1413 and assured
Council that staff would do their best to get the resolution to the State Water
Control Board on time.
The meeting was adjourned at 7:08 p.m.
Item # 5A
Date: 11-08-2021
AT A REGULAR MEETING OF THE OF THE CITY COUNCIL OF SALEM, VIRGINIA HELD
AT THE SALEM CIVIC CENTER
AGENDA ITEM:
SUBMITTED BY:
Amendment to the Zoning Ordinance
Consider ordinance on second reading for rezoning
the property of .Com Properties 8, LLC, property owner, located at 1796 Apperson Drive (a portion of
Tax Map # 257-2-1.1) from HBD Highway Business
District to LM Light Manufacturing District. Approved
on first reading at October 25, 2021 Council meeting.
Mary Ellen Wines, CZA CFM
Zoning Administrator
SUMMARY OF INFORMATION:
SITE CHARACTERISTICS:
Zoning: HBD Highway Business District
Land Use Plan Designation: Commercial
Existing Use: Vacant (formerly Food Lion)
Proposed Use: Warehousing and Distribution
The subject property consists of a 6.71-acre parcel located southwest of the intersection of
Dillard Drive and Apperson Drive. The request is to rezone a portion of the property. Only
1.12 acres is considered for this request. This portion of the parcel is vacant as there has not
been a permanent business to occupy this portion since Food Lion closed in 2014.
The 1.12-acre portion will be subdivided from the parent parcel. There will be cross access
agreements between the two parcels for access, parking, etc. Lewis Gale would like to move
from their current location at 2141 Apperson Drive. They anticipate one to two employees
on site at a time with one to two box trucks for distribution per day. Deliveries are expected
to also be approximately two a day. This location will be a center for multiple locations for
Lewis Gale. There will be security systems with cameras as well as their security service making
rounds. There will be some medication on site, but no narcotics. There will be no additional
exterior lighting.
STAFF RECOMMENDATION:
Staff recommends approval of the request to rezone a portion of Tax Map # 257-2-1.1 known
as 1796 Apperson Drive from HBD to LM.
AN ORDINANCE TO AMEND SECTION 106-110, ARTICLE I, CHAPTER 106, OF THE CODE OF THE
CITY OF SALEM, VIRGINIA, RELATING TO ZONING AND DIVIDING THE CITY INTO BUILDING
DISTRICTS AND ESTABLISHING DISTRICT BOUNDARY LINES ON THE ZONING MAP OF THE CITY
OF SALEM, VIRGINIA.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that Section 106-110,
Article I, Chapter 106 of The Code of the City of Salem, Virginia, relating to building district
boundary lines be amended in the following particular and no other, viz:
That the following described property in the City of Salem of .Com Properties 8, LLC, property
owner, located at 1796 Apperson Drive (a portion of Tax Map # 257-2-1.1) be and the same is
hereby changed from HBD Highway Business District to LM Light Manufacturing District. And the
map referred to shall be changed in this respect and no other, said property being described as
follows:
COMMENCING at a point on the south line of Apperson Drive, being approximately 690.2 feet from the east
line of Margaret Lane; Thence departing said line S09°33’00”E 831.75 feet to a point; Thence N66°30’00”W
378.77 feet to a point; Thence N23°30’00”E 35.22 feet to a point, being the POINT OF BEGINNING. Thence
N09°10’07”W 53.63 feet to a point; Thence N80°49’53”E 20.65 feet to a point; Thence N09°10’07”W 188.80
feet to a point; Thence N80°49’53”E 197.25 feet to a point; Thence S09°10’07”E 242.43 feet to a point; Thence
S80°49’53”W 217.90 feet to the POINT OF BEGINNING. CONTAINS 1.1232 acres of land, more or less .
All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and
the same are hereby repealed.
This ordinance shall be in full force and effect ten (10) days after its final passage.
Upon a call for an aye and a nay vote, the same stood as follows:
John E. Saunders –
William D. Jones –
Byron Randolph Foley –
James W. Wallace, III –
Renee F. Turk –
Passed:
Effective:
/s/____ _
Mayor
ATTEST:
H. Robert Light
Clerk of Council
City of Salem, Virginia
Item # 6A
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD
AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Hold a public hearing and consider on first reading an ordinance to
amend multiple sections of Article II, Chapter 22, of The Code of the
City of Salem, Virginia, to exempt businesses with less than $50,000
in gross receipts from the annual business license tax and set the
annual licensure fee at $50 applicable for businesses with gross
receipts less than $50,000 annually in accordance with US Census
based population business taxation provisions in Title 58.1 of the Code
of Virginia. Advertised in the October 30, 2021 issue of the Roanoke
Times.
SUBMITTED BY: Sidney Kuzmich, Chief Deputy Commissioner of the Revenue; and Jim
Guynn, City Attorney
SUMMARY OF INFORMATION:
Title 58.1 of the Code of Virginia contains population thresholds for the application of business
license issuance fees and the amount of gross receipts that may be exempted. Population is based
on the most current final population estimates of the Weldon Cooper Center for Public Service of
the University of Virginia. Weldon Cooper has updated the City of Salem’s population per the 2020
U.S. Census to be 25,346.
Based on the City population exceeding 25,000, the State Code requires the exemption of local
annual business license tax from any business, profession, or occupation subject to licensure with
less than $50,000 in gross receipts.
State Code also authorizes the City to increase the annual licensure fee to up to $50 for businesses
with gross receipts less than $50,000. Businesses with gross receipts equal to or greater than
$50,000 are not charged the licensure fee as they are taxed on the full amount at the prescribed
rate for their category.
Example:
1. Business A (retail business) – Gross Receipts $45,000 = $50 license fee
2. Business B (retail business) – Gross Receipts $50,500 = $50,500 x the rate applicable to
retail business of $0.20 per $100 which equates to $101 in business license tax
The attached ordinance standardizes both the exemption of the annual business license tax for
businesses with less than $50,000 in annual gross receipts and sets the annual licensure fee at $50
for applicable businesses with gross receipts less than $50,000.
FISCAL IMPACT:
The exact impact of these changes is dependent upon actual gross receipts for businesses,
however, is estimated to result in a net revenue loss of $17,000 to $19,000 annually based on
historical modeling.
STAFF RECOMMENDATION:
Staff recommends holding a public hearing and approval of the first reading of this ordinance.
1
ORDINANCE TO AMEND CHAPTER 22 - “BUSINESSES,” ARTICLE II –
“LICENSING,” DIVISION 1 “GENERALLY,” TO ADD SECTION 22-43.2 AND
AMEND SECTION 22-38; SECTION 22-39; SECTION 22-42; SECTION 22-43;
SECTION 22-44; SECTION 22-46; SECTION 22-46.1; SECTION 22-48; SECTION 22-50;
SECTION 22-54; SECTION 22-57; SECTION 22-60; SECTION 22-63; SECTION 22-64;
SECTION 22-68; SECTION 22-68.1; SECTION 22-69; SECTION 22-73; SECTION 22-74;
SECTION 22-75; SECTION 22-76; SECTION 22-77; AND SECTION 22-78.
WHEREAS, Virginia Code § 58.1-3703 authorizes local license taxes and fees in
amounts based upon the population of a locality; and
WHEREAS, the population of the City of Salem has increased and now exceeds 25,000;
and
WHEREAS, Virginia Code § 58.1-3703 authorizes the City of Salem to increase its
business license fee from $30.00 to $50.00 because of the City’s increase in population.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Salem,
Virginia, that Chapter 22 - “Businesses,” Article II – “Licensing,” Division 1 “Generally,” be
amended or added as follows:
Chapter 22 – Businesses
* * *
Article II - Licensing
* * *
Division 1 – Generally.
Sec. 22-38. Statement of policy.
It is the purpose and policy of the city in enacting this article imposing license taxes and
fees for the conducting of business in the city, and for the granting of privileges as are in this
article defined and set forth, to equalize as far as practicable the burden of such license taxation
among those hereby liable thereto, by adopting for general application, but subject to the
regulations, personal privileges and exceptions specifically set forth in this article, a system of
license taxes measured by the volume of business done by the business, trade, profession or
occupation upon which the tax is levied.
Sec. 22-39. Rules for guidance.
As to all questions in regard to the duty and conduct of officers of the city in collecting
and enforcing the taxes and fees imposed in this article, and in regard to matters of construction,
and for definitions of terms used in this article and the rules and regulations applicable to putting
the same in operation, for the assessment, levy and collection of taxes and fees for the current
2
year, reference is hereby made to the laws of the state, and more particularly to Code of Virginia,
§ 58.1-3700 et seq., or to so much thereof as is applicable to this article and is not inconsistent
with it or the general ordinances of the city; and for the conduct and guidance of the officers of
the city and other parties affected by this article, and for fixing their powers, rights, duties and
obligations, the provisions of such laws, so far as applicable, are hereby adopted, without,
however, being specifically quoted or set forth in this article.
Sec. 22-42. Zoning and license restrictions.
(a) The commissioner of the revenue shall not issue a license for conducting any business,
trade, profession or occupation at a location where the conducting of such business, trade,
profession or occupation at such location is prohibited by chapter 106 or any other
ordinance provision of the city.
(b) The commissioner of the revenue shall not issue a license for conducting any business,
trade, profession or occupation to be conducted at a residence without the approval of the
city planning commission zoning administrator for a home occupation permit as
defined in chapter 106.
(c) The commissioner of the revenue shall not issue a license for conducting any business,
trade, profession or occupation unless any assumed or fictitious name of their business
has first been recorded with the clerk of the circuit court. Virginia State Corporation
Commission.
Sec. 22-43. Who is subject to tax.
The license taxes and fees enumerated in this article are for the conducting of business in
the city, including any and all phases and activities of the business, trade, profession or
occupation so conducted in the city or the maintenance of any office or branch office in the city,
either or both, and for the granting of certain privileges.
Sec. 22-43.2. Levying of license fee and taxes.
Subject to the limitations provided in § 58.1-3703.C. of the Code of Virginia (1950,
as amended), and except as otherwise specifically provided for in this chapter of the Salem
City Code, there are hereby imposed and levied for each and every year, beginning with
January 1 of each year and ending December 31 following, and there shall be collected the
following license fees and taxes upon the privilege of doing business or exercising a
profession, trade, occupation or calling, including all phases thereof, in the City.
(1) There is hereby imposed and there shall be collected an annual license fee in
the amount of fifty dollars ($50.00) for issuance of a license on businesses,
trades, professions, occupations and callings and upon the persons, firms and
corporations engaged therein within the City; provided, however, that this
license fee shall not be charged to any person whose gross receipts from a
business, trade, profession, occupation or calling are Fifty thousand dollars
($50,000.00) or greater during the preceding calendar year and who is
subject to levy and payment of the annual license taxes as provided in
subsection (2) hereof; and
3
(2) There is hereby levied and there shall be collected the annual license taxes at
the rates and in the amounts hereinafter set forth in this chapter upon any
person, firm, or corporation engaged in a business, trade, profession,
occupation or calling subject to licensure in the City. Except as may be
otherwise authorized by specific or special provisions of chapter 37 (§ 58.1-
3700 et seq.) of the Code of Virginia, 1950, as amended, and this chapter of
the Salem City Code, the annual license taxes shall not be imposed upon any
person whose gross receipts from a business, profession, trade, occupation or
calling are less than Fifty thousand dollars ($50,000.00) during the preceding
calendar year.
Sec. 22-44. Separate license for each branch of business.
When any person is engaged in more than one business activity which is made by the
provisions of this article subject to taxation, such person shall pay the tax and fees provided by
law on each activity prosecuted by that business.
Sec. 22-46. License year.
Unless otherwise specifically provided, all license taxes and fees levied by this article
shall be due and payable at the office of the city treasurer on imposed and levied beginning
January 1 of each and every year, and shall expire on December 31 following the date on which
such license is issued. Any person conducting any business, trade, occupation or profession after
January March 1 of any year without having paid the license tax or fees levied by this article,
unless otherwise specifically provided, shall be guilty of committing a class 1 misdemeanor.
Sec. 22-46.1. License due dates.
(a) Every person subject to a license tax or fee in this article shall apply for a license prior to
beginning business if he was not subject to licensure in this jurisdiction on or before
January 1 of the license year or no later than March 1 of the license year, if he had been
issued a license for the proceeding preceding year. The application shall be on forms
prescribed by the commissioner of the revenue. The fact that a business or profession
conducted business without obtaining a license, or after being refused a license, shall not
relieve that business or profession of the tax imposed by this section.
(b) The tax or fee shall be paid with the application in the case of any license not based on
gross receipts of the business. If the tax is measured by gross receipts the tax shall be paid
with filing of application on or before March 1 including all supplemental taxes and
adjustments.
(c) The commissioner of the revenue may grant an extension of time in which to file an
application for a license, for reasonable cause. The extension shall be a condition of a
timely payment of a reasonable estimate of the appropriate tax; the tax is then subject to
adjustment to the correct tax at the end of the extension.
Sec. 22-48. Keeping of records.
Every person who is assessable with a local license tax or fee shall keep sufficient
records to enable the assessing official to verify the correctness of the tax paid for the license
years assessable and to enable the assessor to ascertain what is the correct amount of tax that was
4
assessable for each of these years. All such records, books of accounts and other information
shall be open to inspection and examination by the assessor in order to allow the assessor to
establish whether a particular receipt is directly attributable to the taxable privilege exercised
within this jurisdiction. The assessor shall provide the taxpayer with the option to conduct the
audit in the taxpayer's local business office, if the records are maintained there. In the event the
records are maintained outside this jurisdiction, copies of the appropriate book and records shall
be sent to the assessor's office upon demand.
Sec. 22-50. Issuance of license.
(a) Every person desiring to obtain a license to prosecute any business, trade, profession or
occupation or to do anything for which a license is required under this article shall first
make application therefor to the commissioner of the revenue. The application shall state
the nature of the business, trade, profession or occupation; the owner or owners of the
business, trade, profession or occupation; the trading name of the business, trade,
profession or occupation; the place where the business is proposed to be conducted; and
in case the business, trade, profession or occupation to be licensed, whereby the tax is to
be measured by gross receipts, gross commissions, sales, or gross purchases as provided
in this article, shall make such statement thereof under oath to the commissioner of the
revenue, who shall assess such application with the proper license tax. The commissioner
of the revenue shall then issue a business license statement to the city treasurer. The city
treasurer, upon payment of the license tax and fees, shall issue a license to the applicant
to conduct the business, trade, profession or occupation.
(b) No business license shall be issued until the applicant has produced satisfactory evidence
that all delinquent business license, business personal property, meals, transient
occupancy, and admissions taxes owed to the city have been paid which have been
properly assessed against the applicant by the city.
Sec. 22-54. Display or exhibition of license.
(a) Every person required to obtain any business license shall display such tag, sign or decal
as evidence of a current privilege license at a location that is in general view of the public
or as designated by the commissioner of the revenue.
(b) Every person required to pay a license tax or fee shall keep the license receipt issued by
the city treasurer in a convenient place at his definite place of business and, whenever
required to do so, shall exhibit such license receipt to the commissioner of the revenue or
his deputies or to any member of the police department. Any person violating this section
shall be guilty of a class 4 misdemeanor.
Sec. 22-57. Discontinued business license refund.
When any established business, trade or profession licensed under this article whose
volume is measured by gross receipts, purchases, sales or commissions shall permanently
discontinue that business by surrendering the license and making a timely written application for
a refund submitted to the commissioner of the revenue, the commissioner of the revenue shall
ascertain the present amount of the unused portion of the license tax paid to the city for that
calendar year and submit a request to the city for a refund to be paid the licensee, provided:
5
(1) The licensee has submitted the application for a refund no later than January 31 of
the year next following the tax year for which any such license was issued.
(2) No refund shall be made for tax amounts less than the minimum license tax .any
minimum flat tax or license fee not measured by gross receipts or purchases.
(3) The amount of the refund shall be computed as follows: If the licensee goes out
of business before the end of any month except December, the refund shall
be calculated by dividing the tax paid for that year's license by a fraction in
which the numerator shall be the number of months remaining in the
calendar year following the month in which business ceases and the
denominator is the number twelve (12); but in no case shall the refund
reduce the tax below the minimum as provided by this Code.
a. Months license not used: 12 months divided by percentage of months license not
used.
b. Actual gross receipts minus minimum gross receipts equals base gross receipts;
base gross receipts times percentage of months license not used equals unused
gross receipts; unused gross receipts times rate per $100.00 equals amount of
refund.
Sec. 22-60. Amusement service.
(a) Amusement service means any person that, for compensation, provides any type of
amusement or entertainment, unless otherwise specifically provided for under another
section of this article.
(b) Every person conducting, operating or engaging in an amusement service shall pay an
annual license tax of $30.00 for the first $8,334.00 plus $0.36 on each $100.00 of gross
receipts in excess of $8,334.00 from the business during the preceding calendar year.
(c) Those engaged in rendering an amusement service include, but are not limited to, the
following:
Amusement centers.
Amusement parks.
Animal rides.
Baseball batting cages.
Billiard parlors.
Booking agents.
Bowling alleys.
Coin-in-slot pool tables.
Commercial sports.
Concert managers.
Electronic and mechanical amusement machines.
Go-cart rides.
6
Golf courses.
Golf driving ranges.
Health spas.
Hobby horses, merry-go-rounds.
Miniature car racing.
Miniature golf.
Motion picture theaters.
Musical bands.
Pool parlors.
Public demonstrations.
Public exhibitions.
Public performances.
Recreation services.
Riding stables.
Shooting galleries and archery ranges.
Skateboard centers.
Skating rinks.
Swimming pools.
Tennis courts.
Trampoline centers.
and other amusement service occupations.
Sec. 22-63. Business service.
(a) Business service means any person engaged in conduct of a business trade or occupation
that renders a service for compensation of any nature, primarily to any business, trade,
occupation or government agency, unless otherwise specifically provided for under
another section of this article.
(b) Every person conducting, operating or engaging in a business service shall pay an annual
license tax of $30.00 for the first $8,334.00 plus $0.36 on each per $100.00 in excess of
$8,334.00 of gross receipts from the business during the preceding calendar year.
(c) Those engaged in rendering a business service include, but are not limited to, the
following:
Accountant or bookkeeping service.
Advertising, all types.
Alarm device service or monitoring service.
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Auditor.
Bookbinding.
Bottle exchange.
Brokers, all types.
Collection agency.
Commercial equipment leasing.
Commission merchants.
Computer service.
Consulting services, all types.
Data processing service.
Delivery service.
Detective agency.
Directory service.
Drafting services.
Duplication processes.
Garbage pickup service.
Hauling, or transporting, all types.
Impounding lot.
Industrial packing, crating, shipping, or moving goods.
Janitorial service.
Mailing, messenger or correspondent service.
Metallurgist.
Paging service.
Parcel delivery service.
Promotion agency.
Public relations service.
Realty multiple listing.
Reproduction services.
Research and development service.
Secretarial services.
Security or guard service.
Sign painting or sign making.
Systems development services.
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Tabulation and inventory service.
Telephone answering service.
Temporary personal service.
Testing laboratories.
Transcription and typing service.
Trucking companies (interstate).
And other business services.
Sec. 22-64. Contractors and contracting.
(a) Contractor means and includes every person, firm or corporation engaged in the conduct
of a business, trade or occupation enumerated in this section. The term "contractor" is
further defined to include every person, firm or corporation:
(1) Accepting or offering to accept orders or contracts for doing any work on or in
any building or structure, requiring the use of paint, stone, brick, mortar, wood,
cement, structural iron or steel sheet from galvanized iron, metallic piping, tin,
lead or other metal or any other building materials;
(2) Accepting or offering to accept contracts to do any paving, curbing or other work
on sidewalks, streets, alleys or highways or public, private or governmental
property, using asphalt, brick, stone, cement, concrete, steel, wood or any
composition;
(3) Accepting or offering to accept an order for or contract to excavate earth, rock or
other material for foundation or any other purpose or for cutting, trimming or
maintaining rights-of-way;
(4) Accepting or offering to accept an order or contracts to construct any sewer of
stone, brick, terra cotta or other material;
(5) Accepting or offering to accept orders or contracts for doing any work on or in
any building or premises involving the erecting, installing, altering, repairing,
servicing or maintaining of electric wiring, devices or appliances permanently
connected to such wiring; or the erecting repairing or maintaining of lines for the
transmission or distribution of electric power or fiber optic cable;
(6) Engaging in the business of plumbing and steamfitting;
(7) Accepting or offering to accept orders or contracts for building, remodeling,
repairing, wrecking, razing or demolishing any structure; for moving any
building; for drilling, boring or digging a well; for the installation, maintenance of
signs, billboards, air conditioning apparatus or equipment; and any such person
shall be deemed to be a contractor or subcontractor, whether such work is done or
offered to be done by day labor, general contract or subcontract; provide,
however, that every person who shall build, erect or construct a house or building
for the purpose of selling or renting the same and who shall not have employed
therefor in writing a contract or person who has paid the license tax by this
section and who has acted as superintendent of the whole construction, shall,
9
himself, be deemed a contractor and shall be subject to all the provisions of this
article. Any person who sell, erect or construct a house or building and later sell
or offer to sell or rent such house or building, without having himself resided in
such house or building for at least 90 consecutive days, shall be prima facie
deemed to have erected or constructed that house or building for the purpose of
selling or renting such house or building.
(b) Contractors having a principal office located outside the city who exceed $25,000.00 in
contract amounts in the city in any year will be required to purchase a city contractor's
license as per Code of Virginia § 58.1-3715.
(c) The building official shall not issue a building permit to a contractor who does not
maintain an office in the city and the cost of construction exceeds $25,000.00 or a
contractor whose place of business is located in the city unless the contractor has just
purchased the required city contractor's license as prescribed by this article.
(d) Every contractor conducting, operating or engaging in any of the enumerated businesses,
trades or occupations shall pay an annual license tax based upon the gross receipts from
all orders or contracts accepted during the preceding year, whereas a credit or allowance
is given for the contract amount of any contractor's license purchased from any other
locality. The license tax shall be $30.00 on the first $18,750.00 of gross receipts plus
$0.16 per $100.00 in excess of $18,750.00. of gross receipts.
Sec. 22-68. Retail merchants.
(a) Retail merchant means any person, bank or savings and loan association or churches and
charitable nonprofit organizations with unrelated trade or business income which is
taxable under Internal Revenue Code, that purchases goods, wares and merchandise and
sells the same for any purpose other than resale, regardless of sale price.
(b) (1) This does not include sales at wholesale to industrial, commercial, institutional or
government agencies.
(2) Nor any domestic products or nursery products, ornamental or otherwise or for
the planting of nursery products, as an incident to the sale thereof, outside of the
regular market house and sheds of the city; provided such products are grown or
produced by the person offering such products for sale.
(3) Nor any retailer for the privilege of selling bicentennial medals on a nonprofit
basis for the benefit of the Virginia Independence Bicentennial Commission or
the city bicentennial commission.
(c) Any person who is both a wholesale merchant and a retail merchant is hereby required to
obtain both classes of licenses; provided however that any retail merchant who desires to
do a wholesale business also may elect to do such wholesale business under his retail
merchants license by paying license tax under this section as a retail merchant on both his
retail business and his wholesale business.
(d) On every person conducting the business of a retail merchant there shall be a license tax
which shall be measured by the amount of sale made by him during the proceeding gross
receipts from the business during the preceding year. The license tax on each retail
merchant shall be as follows: if the amount of sale throughout the then next proceeding
10
calendar year did not exceed $15,000.00. The license tax shall be $30.00 and $0.20 of
every per $100.00 in excess of $15,000.00. of gross receipts.
Sec. 22-68.1. Direct sellers/home based business.
(a) Direct seller/home based business means any person who:
(1) Engages in the trade or business of selling or soliciting the sale of consumer
products primarily in private residences and maintains no public location for the
conduct of such business;
(2) Receives renumeration for such activities, with substantially all of such
renumeration being directly related to sales or other sales-oriented services rather
than to the number of hours worked;
(3) Performs such activities pursuant to a written contract between such person and
the person will not be treated as an employee with respect to such activities for
federal tax purpose; and
(4) Having first obtained approval from the planning commission to conduct a
business from his place of abode; and
(5) Engaged in the trade or business of soliciting business primarily in private
residence or place of abode and maintains no public location for the conduct of
such business.
(b) Direct sellers/home based business.
(1) Rate limitation notwithstanding any other provision of this chapter, the city shall
not levy and license tax on a direct seller, or home based business as defined
herein unless the total sales of such seller exceeds $8,000.00 per year.
(2) Every person conducting or engaging in the business of a direct seller/home based
business as described above shall pay an annual license tax as prescribed in this
chapter.
(a) Any person engaging in business as a direct seller shall pay for the privilege an annual
business license tax at the rate of twenty cents ($0.20) per one hundred dollars ($100.00)
of retail sales gross receipts, and five cents ($0.05) per one hundred dollars ($100.00) of
wholesale gross receipts.
(b) A direct seller must apply annually for a business license and provide copies of the
signed, written contract covering the direct sales activities of the taxpayer for the current
year. The commissioner of the revenue shall determine whether the taxpayer is eligible
for licensing under this section, and whether the taxpayer is eligible for the exemption of
this section.
(c) As used in this section, the term "direct seller" means any person who:
(1) Engages in the trade or business of selling or soliciting the sale of consumer
products primarily in private residences and maintains no public location for the
conduct of such business; and
11
(2) Receives remuneration for such activities, with substantially all of such
remuneration being directly related to sales or other sales-oriented services, rather
than to the number of hours worked; and
(3) Performs such activities pursuant to a written contract between such person and
the person for whom the activities are performed and such contract provides that
such person will not be treated as an employee with respect to such activities for
federal or state tax purposes.
Sec. 22-69. Wholesale merchant.
(a) Wholesale merchant means any person that purchases goods, wares and merchandise and
who sells to others for resale or who sells to institutional, commercial, industrial users
and governmental agencies at wholesale, unless otherwise specifically provided for under
another section of this article.
(b) Any person, firm or corporation, who or which sells or offers to sell goods, wares or
merchandise to licensed dealers, other than at a definite place of business operated by the
seller, and at the time of such sale or exposure for sale delivers, or offers to deliver, the
goods, wares or merchandise to the buyer shall be deemed a peddler at wholesale. For
purposes of this section any delivery made on the day of sale shall be construed as a
delivery at the time of sale. The license tax for a peddler at wholesale shall be the same as
a wholesale merchant.
(c) Wholesale merchandise broker means every person buying or selling on his own account
or for another food products or other commodities and who sells only to wholesalers and
manufacturers at wholesale prices from an office in the city and whose gross profits are
measured principally by a fixed commission shall pay the license tax as prescribed for a
wholesale merchant.
(d) This section shall not include a manufacturer for the privilege of manufacturing and
selling goods, wares and merchandise at wholesale at the place of manufacture.
(e) Every person conducting the business of a wholesale merchant shall pay a license tax of
as follows: if the amount of purchases throughout the next proceeding calendar year did
not exceed $10,000.00 the license tax shall be $50.00 plus $0.13 on every per $100.00 in
excess of $10,000.00. of purchases during the preceding calendar year.
Sec. 22-73. Personal service occupation.
(a) Personal service means any service rendered for compensation of any nature, either upon
or for persons, animals or personal effects, unless the service is specifically provided for
under another section of this article.
(b) Every person conducting, operating or engaging in any of the following enumerated
businesses, trades or occupations shall pay an annual license tax of $30.00 for the first
$8,334.00, plus $0.36 per $100 on all of gross receipts in excess of $8,334.00. from the
business during the preceding calendar year.
(c) Those engaged in rendering a personal service include, but are not limited to, the
following:
Adult care service.
12
Ambulance service.
Animal grooming or kennels service.
Auctioneers.
Automobile driving schools.
Barbershops or beauty parlors.
Beauty schools.
Boarding house.
Bondsmen.
Booking agents or concert managers.
Child care attendants or schools.
Convalescent homes.
Dance studios and schools.
Developing photographs.
Detective agency and security service.
Employment agencies.
Engraving.
Extermination service.
Funeral services and crematories.
Hotels and motels.
Hospitals for profit.
House cleaning services.
Instructors, tutors, schools all types.
Interior decorating.
Laundries and dry cleaning.
Lawn care service.
Leasing of tangible personal property.
Linen and uniform service.
Massage therapist.
Mini storage warehouses.
Nursing homes.
Photographs.
Private teaching service all types.
13
Storage of tangible personal property.
Tailors.
Towing service.
Travel agent or bureaus.
And other personal service occupations.
Sec. 22-74. Short-term rental business.
(a) Every person conducting or operating a business which qualifies as a short-term rental
business, as defined in section 82-178, shall pay an annual license tax as follows: If the
amount of the gross receipts throughout the then next preceding calendar year did not
exceed $15,000.00, then the license tax shall be $30.00 on the first $15,000.00 and in the
amount of $0.20 per $100.00 in excess of $15,000.00. of gross receipts from the
business during the preceding calendar year.
(b) The same penalty and interest as provided in this article shall apply to new licenses if not
obtained within 30 days after the commencement of business.
Sec. 22-75. Professional service.
(a) Professional service means: A person is engaged in providing a professional service if
engaged in rendering any service specifically enumerated below or engaged in any
occupation or vocation in which a professed knowledge of some department of science or
learning, gained by prolonged course of specialized instruction and study is used by its
practical application to the affairs of others, either advising, guiding or teaching them,
and in serving their interests or welfare in the practice of an art or science founded on it.
The word profession and professional imply attainments in professional knowledge as
distinguished from mere skill, and the application of knowledge to use for others as a
vocation.
(b) Every person conducting or engaging in any of the professions or occupations
enumerated in this section and maintaining an office within the city shall pay an annual
license tax based upon gross receipts derived from such profession or occupation
received during the preceding year. The license tax shall be as follows: When the gross
receipts did not exceed $5,173.00, the license tax shall be $30.00; when such receipts
exceed $5,173.00, the license tax shall be $30.00 on the first $5,173.00 plus $0.58 on
every per $100.00 in excess of $15,000.00. of gross receipts.
(c) Those engaged in rendering a professional service include, but are not limited to, the
following:
Acupuncture.
Architect.
Attorney at law.
Certified public accountant.
Chiropractor.
14
Dentist.
Dermatologist.
Doctor of dental surgery.
Doctor of medicine.
Doctor of veterinary medicine.
Engineers, any and all types.
Oculist.
Optician.
Optometrist.
Osteopath.
Pharmacist.
Physiotherapist.
Podiatrist.
Psychologist.
Surgeon.
Surveyor.
And any other professional service occupations.
Sec. 22-76. Real estate service.
(a) Real estate service means any person rendering a service for compensation as lessor,
buyer, seller, agent or broker.
(b) Every person conducting or engaging in any of the real estate services or occupations
enumerated in this section and maintaining an office within the city shall pay an annual
license tax of $30.00 for the first $5,173.00 of gross receipts, plus $0.58 per $100.00 in
excess of $5,173.00 of gross receipts, namely: of gross receipts from business during
the preceding calendar year.
(c) Those engaged in rendering a real estate service include, but are not limited to, the
following:
Appraisers of real estate.
Escrow agents.
Fiduciaries.
Lessors of real estate.
Real estate agents, brokers and managers.
Rental agents for real estate.
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And other real estate services.
Sec. 22-77. Financial service.
(a) Financial service means any person rendering a service for compensation in the form of a
credit agency, an investment company, or a broker or dealer in securities and
commodities exchange.
(b) Exceptions:
(1) Banks and trust companies subject to Virginia Bank Franchise Tax.
(2) Savings and loan companies (including those whose name includes "savings
bank") and state chartered credit unions are limited to a license tax of $50.00.
(3) Federal Credit Unions are exempt under the Federal Credit Union Act.
(c) Every person conducting, operating or engaging in any of the following businesses,
trades or occupations shall pay an annual license tax of $30.00 for the first $15,000.00 of
gross receipts plus $0.58 on every $100.00 in excess of $15,000.00 of gross receipts. of
gross receipts from the business during the preceding calendar year.
(d) Those engaged in rendering a financial service include, but are not limited to, the
following:
Buying installment receivables chattel mortgage.
Financing.
Consumer financing.
Credit card service.
Factors.
Financing accounts receivable.
Industrial loan company.
Installment financing.
Inventory financing.
Loan or mortgage brokers.
Loan or mortgage company.
Safety deposit box company.
Security and commodity service.
Stockbrokers.
Working capital financing.
And other financing service occupations.
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Sec. 22-78. Repair service.
(a) Repair service means any person engaged in the conduct of a business, trade or
occupation that repairs, renovates, cleans or services some article or item of personal
property for compensation of any nature, unless the service is specifically provided for
under another section of this article.
(b) Every person conducting, operating or engaging in any of the following businesses,
trades or occupations shall pay an annual license tax of $30.00 for the first $8,334.00 in
gross receipts, plus $0.36 per $100.00 in excess of $8,334.00 of gross receipts. of gross
receipts from business during the preceding calendar year.
(c) Those engaged in rendering a repair service include, but are not limited to, the following:
Air conditioning equipment repair.
Bicycle repair.
Boat and boat motor repair.
Boiler repair.
Business and office machine repair and service.
Electrical appliance repair.
Engine repair, any and all types.
Farm machinery repair.
Furnace and heating equipment repair.
Furniture repair.
Gun repair.
Industrial and commercial machinery repair.
Lawn equipment, any and all types.
Lawnmower repair and sharpening.
Leather goods repair, any and all types.
Motor vehicle repair, any and all types.
Musical instrument repair or tuning.
Nickel and chrome plating.
Paint and body shop for vehicles.
Radio, television and communication equipment.
Saw repair and sharpening.
Scales repair.
Shade repair.
Shoe repair.
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Tire repair or recapping.
Tool repair.
Toy repair.
Watch, clock and jewelry repair.
Welding shop.
And other repair services.
This ordinance shall be in full force and effect ten (10) days after its final passage.
Upon a call for an aye and a nay vote, the same stood as follows:
John E. Saunders -
William D. Jones -
Byron Randolph Foley -
James W. Wallace, III –
Renee F. Turk –
Passed:
Effective:
Mayor
ATTEST:
H. Robert Light
Clerk of Council
City of Salem, Virginia
Item #6B
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Request to amend the School Capital Projects Fund budget as
approved by the School Board on October 12, 2021
SUBMITTED BY: Rosemarie B. Jordan, Director of Finance
SUMMARY OF INFORMATION:
The School Capital Projects Fund budget was amended for fiscal year 2021-2022 by the
School Board at their meeting on October 12, 2021. The Board amended the Capital
Projects Fund to appropriate $2,477,096 from the unallocated capital reserve funds. The
attached memo covers the various appropriation changes. Also included to this memo is
the CIP document for the six-year period of fiscal years 2023 – 2028.
FISCAL IMPACT:
Appropriation changes totaling $2,477,096 to be made to the School Capital Projects Fund.
STAFF RECOMMENDATION:
Staff recommends that Council approve the School Board’s appropriation change of
$2,477,096 to the 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.
Salem City Schools
Capital Improvement Plan (CIP) for 2023-2028 and Projects for FY 2022
October 12, 2021
Summary of Issue:
This report is to request the Board to:
1. Approve the proposed projects for FY 2022 from the 6/30/2021 year-end balance
and the funding of these projects (Capital Reserve) (Attachment A with Appendix
1 for Finishes/Flooring & Appendix 2 for Technology lists)
2. Approve the proposed 2023-2028 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, $2,477,096 of the unallocated capital reserve funding will be categorized in
Assigned Fund Balance with the remaining being categorized as Unassigned Fund
Balance. The total projects anticipated during the current fiscal year from capital
reserve are listed in Attachment A.
The total project requests in the CIP for the six-year period FY 2023-2028 are
$15,467,122 per Attachment B.
Recommended Motion:
Move approval of the projects for FY 2022 using funding from the 6/30/2021 year-end
balance, a request that City Council appropriate funding from the se year end fund
balances as required, and move approval of the FY 2023-2028 CIP.
10/12/2021
Attachment A
Capital reserve balance at 6/30/2021 - UNAUDITED $2,934,010
Less: amount to be held for contingencies - (approximately 1% of General Fund total budget, as needed to maintain 10% Fund Balance)($456,914)
Available for FY 22 projects/future AE/construction $2,477,096
Name of Project Notes
Estimated Cost, if
known
Regional revenue
Revenue for the dissolution of the Roanoke Valley Regional Board that must be
set aside for Special Needs students $187,447.61
Learning Loss revenue
Revenue that is allowable to carry forward into FY 22 for Learning Loss needs, that
is budgeted for in FY 22, not used in FY 21 $113,878.00
Local Match for Extended School Year Grant
We received the grant of $300,000 with a 20% match requirement. That would be
$60,000 $60,000.00
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. $45,000 left in account, so only $17,500 needed $17,500.00
2021 Tech Infrastructure Upgrades & Computer
Replacements
Infrastructure needs and equipment replacements across Division (See Appendix
2 for list)$841,070.00
Roof Improvements Roof section replacement or overlay/coating at East & West $481,000.00
Furniture for classrooms at SHS
Continue head start on purchasing furniture for new building - teacher & student
desks & student chairs $120,000.00
ALMS Domestic Water Heater Replacement (3)Due for replacement $80,000.00
Flooring Install & Locker Rooms Updates - SHS Auto
body (CTE)
Gender friendly changing stalls and improvement to the toilets that are already
there. Higher stall walls with more privacy. Lockers pulled out and cubbies
installed. Rubber tile flooring, painting $70,000.00
Central Office Flooring Abatement & installation $70,000.00
SHS Gym Air Handler Repairs - HVAC
Repairs to keep from having water damage on new gym flooring that will be
installed in the Fall of 2021. Replacement in a future year $70,000.00
Flooring Updates for 10 classrooms at SHS
Continuing removing carpet & polishing concrete in classrooms as part of
renovations $60,000.00
Furniture for Offices at SHS Main & Counseling. Desks, shelves, chairs & cabinets $60,000.00
Replacement of Air Cooled Chiller at School Board -
HVAC Due for replacement $60,000.00
Finishes/Flooring Updates Flooring or finishes needs across Division (See Appendix 1 for list)$53,200.00
ALMS Replace the Package unit that serves the office -
HVAC Due for replacement $35,000.00
ALMS Replace Elevator Hydraulic Unit Servicing contractor recommendation $23,000.00
Teacher Chairs at SHS SHS Teachers have not had new classroom chairs in well over a decade $20,000.00
Sealing/Striping/Paving Parking Lots
Resealing & repainting front parking lot at West. Paint is fading in front parking lot
& is in need of being resealed $15,000.00
SHS Wrestling Mat One is very old and needs replacing $10,000.00
Sidewalk Improvements
Add Sidewalk from Back Kindergarten Exit to Walking Trail at South. From Safety
Audit $10,000.00
Carver Maintenance Items 3 Vacuum cleaners, a slow speed buffer (stripper) & heavy duty wet vac $10,000.00
ALMS AHU in Section D Work - HVAC
Doesn't adequately cool the space. Has never worked correctly since installation.
Hoping to have some work done now and replace later $10,000.00
$2,477,096
(Over)/Under Budget ($0)
Salem City Schools
CIP Requests from Principals and Central Administrators - FY 2021 Fund Balance
October 2021 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 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TBD FY 2023-2028 Comments
WHERE THE
FUNDING WILL COME
FROM:
Bond Funds $0 $0 $0 $0 $0 $0 $0
City Funding $0 $0 $0 $0 $0 $0 $0
Schools Funding $0 $0 $0 $0 $0 $0 $0
State Construction
Funds $0 $0 $0 $0 $0 $0 $0
Capital Reserve Funds
Available Now $0 $0 $0 $0 $0 $0 $0
Future Capital Reserve
Funds (below)$3,038,563 $5,151,872 $3,446,000 $1,423,250 $1,139,455 $1,137,588 $15,336,728
Other Funding Already
Appropriated $0 $0 $0 $0 $0 $0 $0
Cafeteria Fund Balance $20,158 $20,763 $21,386 $22,028 $22,689 $23,370 $130,394
$3,058,721 $5,172,635 $3,467,386 $1,445,278 $1,162,144 $1,160,958 $15,467,122
$15,467,122
WHERE THE
FUNDING WILL BE
SPENT:
YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total
Category 1: Recurring
Projects FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TBD FY 2023-2028
General System-Wide
Roof Replacement on
Regular Schedule $927,000 FCR $1,115,750 FCR $944,514 FCR $605,000 FCR $500,000 FCR $515,000 FCR $4,607,264
Two School Buses
Annually $250,000 FCR $257,500 FCR $265,225 FCR $273,182 FCR $281,377 FCR $289,818 FCR $1,617,102
School Technology-
Infrastructure $30,000 FCR $30,000
Blade Servers used
to store School data
School Technology-
Computer
Replacement $287,050 FCR $295,662 FCR $304,532 FCR $313,668 FCR $323,078 FCR $332,770 FCR $1,856,760
On-going
replacements
School Technology-
General - Other
Computer/Smart Board
Replacement $100,000 FCR $100,000 FCR $200,000
Cafeteria/Kitchen
Equipment
Replacement $20,158 FCR $20,763 FCR $21,386 FCR $22,028 FCR $22,689 FCR $23,370 FCR $130,394
On-going
replacements
Division Vehicle
Replacement $35,000 FCR $35,000
Category 2: Future
standalone projects
Band Instrument
Replacement **$60,000 FCR $60,000
Salem City Schools 10/12/2021
Six Year Capital Improvement Plan (CIP) for FY 2023-2028
Attachment B
October 2021 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 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TBD FY 2023-2028 Comments
Salem City Schools 10/12/2021
Six Year Capital Improvement Plan (CIP) for FY 2023-2028
Attachment B
Professional
Development Room at
AIIMS **$20,000 FCR $20,000
AIIMS Phase II $819,150 FCR $819,150
GPS for Buses **$50,000 FCR $50,000
Calculator
Replacement at
Secondary levels $20,000 FCR $20,000
Reseal Tennis Courts
at SHS **$10,000 FCR $10,000
Repave Tennis Courts
at SHS $113,290 FCR $113,290
Grand Piano & Risers
at SHS **$28,000 FCR $28,000
Lockers in PE locker
rooms at ALMS **$75,000 FCR $75,000
New Basketball Goals
at ALMS Main Gym **$20,000 FCR $20,000
Rider Floor Scrubbers $16,000 FCR $16,000
Scoreboard @ Carver
**$15,000 FCR $15,000
Gym Projector for PE
at East **$20,000 FCR $20,000
East Salem Playground
Play Set Replacement
**$50,000 FCR $50,000
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 $28,476 FCR $28,476
Haas VF-2 CNC
Package $47,000 FCR $47,000
Digital Sign for
Announcements at
Carver **$15,000 FCR $15,000
Transportation Office
Interior Renovations $22,000 FCR $22,000
NEW: Remodel 4
Faculty Bathrooms at
SHS **$20,000 FCR $20,000 FCR $40,000
NEW: 3 Phase
Replacement of Fitness
Center Equipment at
SHS $15,960 FCR $35,255 FCR $16,400 FCR $67,615
NEW: 2 Phase
Replacement of Fitness
Equipment at ALMS $15,000 FCR $15,000 FCR $30,000
October 2021 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 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TBD FY 2023-2028 Comments
Salem City Schools 10/12/2021
Six Year Capital Improvement Plan (CIP) for FY 2023-2028
Attachment B
NEW: Clean Stage
Curtains at Carver **$5,000 FCR $5,000
NEW: Shading for
Cafeteria Windows at
Carver **$15,000 FCR $15,000
NEW: Walking Path
Repairs at West **$50,000 FCR $50,000
NEW: Window
Replacement in KG
Hallway at East $30,000 FCR $30,000
NEW: Replace lighting
in Kitchen at East $4,800 FCR $4,800
NEW: Distribution
Layer Switches (IT)$35,632 FCR $35,632
NEW: Edge Firewalls
(IT)$36,315 FCR $36,315
NEW: GW Carver
Wiring Upgrade (IT)$288,000 FCR $288,000
NEW: Field House
Fitness Equipment
Replacement 50000 FCR $50,000
HVAC Control Updates
- ALMS **$75,000 FCR $75,000
Replacement of Fan
Coil Units at West **$700,000 FCR $700,000
East Salem Air Handler
Replacement $54,000 FCR $54,000
Replace Air Cooled
Chillers (2) at Central $60,000 FCR $125,000 FCR $185,000
Replace Gym A/C Unit
at East $19,324 FCR $19,324
Replace 2 Split System
units @ West Salem
Gym $125,000 FCR $125,000
Replace Boilers at
West Salem $150,000 FCR $150,000
Replace Makeup Air for
AHU #4 at ALMS $100,000 FCR $100,000
Upsize AHU in Section
D at ALMS $90,000 FCR $90,000
Replace Cooling Tower
at ALMS $75,000 FCR $75,000
Replace Boilers at
Carver $200,000 FCR $200,000
Replace Makeup Air
units (3) at ALMS $100,000 FCR $100,000
Category 3: Future
Projects which might
become part of a
school-wide
renovation
None $0
October 2021 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 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TBD FY 2023-2028 Comments
Salem City Schools 10/12/2021
Six Year Capital Improvement Plan (CIP) for FY 2023-2028
Attachment B
Category 4: School-
Wide Renovations
TBD
None $0
Category 5: Partial
School Renovations
West Salem
Elementary School
Improvements $0 BD $0 (1)
East Salem Elementary
School Improvements $0 BD $0
G W Carver
Elementary School
Improvements $0 BD $0
Salem High School
Fieldhouse Renovation $3,000,000 FCR $3,000,000
Totals $3,058,721 $5,172,635 $3,467,386 $1,445,278 $1,162,144 $1,160,958 $0 $15,467,122
Cross footing $15,467,122
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) Classroom improvements were completed in 2009 and 2010 and future improvements to other areas such as
cafeteria, kitchen, libraries and offices will need to have revised cost estimates prepared at a future date
10/12/2021 Appendix 1
Name of Project Notes
Estimated
Cost
1-Replace carpet in Kindergarten rooms with tile (or carpet tiles) at East
Carpet is showing age & is very difficult to clean. No-wax floors (or carpet tiles)
would improve appearance, be easier to maintain & would be much more
sanitary (4 classrooms)$20,000.00
2-Blinds replacement in classrooms/office at West
Blinds are damaged, & difficult to open & close in these areas. They are also
faded & discolored $12,000.00
3-Repair Soffits over Door #2 & #3 at Carver From Safety Audit - possibly a caulking issue to prevent further deterioration $5,000.00
4-Replace faucets in 5th grade bathroom at Carver Faucets are rusty - sinks are also coming away from wall $5,000.00
5-Paint 5th grade bathroom at Carver Due to fading, chipped areas $4,500.00
6-Painting of classrooms at West
Continuation of painting of the classrooms in building due to fading, chipped
areas $3,700.00
7-Tile Remainder of Front Office Area at East
Tile is requested in the bathrooms & staff room to match the remainder of the
office $3,000.00
$53,200.00
Current Finishes/Flooring Requests
10/12/2021 Appendix 2
Name of Project Notes
Estimated
Cost
1-2960S Switch Stacks Replacement
In closets. 80 total switches. Lack of support for functionality or security. Last
done in FY 12, 13, & 14. Increases network capacity & ensures devices on the
network communicate with each other. $407,280.00
2-Chromebook Replacement
Chromebook need projections for instruction - Replacement of aging/end-of life
Chromebooks $42,998.00
3-Wireless Access Points
95 AP that are not supported. Managed Services for installation – Integration of
Access Points $87,672.00
4-Phone System
Flex pricing for new Cisco phone system. Current phone system is Cisco
Unified Communications Manager (CUCM) and is not supported. This is for all
buildings.$75,638.00
5-KACE (Patching)
No current solution is available to quickly and efficiently push security updates
and software updates to clients and this solution would accommodate this need $59,709.00
6-Camera System Servers
The storage need is not being met to accommodate what was delivered in
security grant solution $57,853.00
7-Core Switches (Data Center)
Currently end of life (no support) & all network traffic routes through them to
include safety functions such as SchoolMessenger & phones $51,320.00
8-CISCO AMP Next generation endpoint protection to replace Kaspersky endpoint protection $38,800.00
9-VEAM Backup Target
Primary destination for all system backups. This adds additional storage and
removes security vulnerabilities due to no existing supported patching $19,800.00
$841,070.00
Current Technology Requests
HVAC
Project Name YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Total
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2019-2026
Tag Out/Lock Out Updates COMPLETED 80,000.00$ 80,000.00$
ALMS Elevator Opener Assembly Replacement at COMPLETED 16,000.00$ 16,000.00$
SHS Chiller Update (replace both starters 55k) (then Update control pannels 53k) COMPLETED 55,000.00$ 53,000.00$ 108,000.00$
SHS Upgrade 4 units in Gym to DDC controls 5K each COMPLETED 20,000.00$ 20,000.00$
SHS Replace Boilers COMPLETE AS PART OF RENOVATION ****************-$
East Salem HVAC Control Updates - WORK IN PROGRESS 50,000.00$ 50,000.00$
West Salem Chiller Replacement COMPLETED 190,000.00$ 190,000.00$
West Salem Replace Kindergarten package unit COMPLETED 30,000.00$ 30,000.00$
East Salem Replacement of Fan Coil Units CURRENT PROJECT-FUNDS ENCUMBERED 753,859.00$ 753,859.00$
GWC- HVAC Control Updates CURRENT PROJECT-FUNDS ENCUMBERED 75,000.00$ -$ 75,000.00$
Ranking
1 ALMS Replace the Package unit that serves the office (AL admin Office)35,000.00$ 35,000.00$
2 ALMS Upsize AHU in section D that will not adequately cool the space (design/ replace) RTU-3 10,000.00$ 90,000.00$ 100,000.00$
3 Central Replace (two, one each year) Air Cooled Chillers at School Board (97 & 91 models)60,000.00$ 60,000.00$ 125,000.00$ 245,000.00$
4 ALMS Replace three water heaters that serve kitchen-locker rooms (obtaining pricing now)80,000.00$ 80,000.00$
5 Salem High Replace one air handler in large gym that leaks, drain pan rusted out. AHU#13 serial k6d305986 70,000.00$ 70,000.00$
6 GWC Replace Boilers 200,000.00$ 200,000.00$
7 West Salem Replacement of Fan Coil Units 700,000.00$ 700,000.00$
8 ALMS Replace makeup air (HEAT RECOVERY) for Makeup air #4 (Not Working)100,000.00$ 100,000.00$
9 East Salem Air Handler Replacement in multipurpose room (cafeteria)54,000.00$ 54,000.00$
10 East Salem HVAC Work Replace Gym A/C Unit 19,324.00$ 19,324.00$
11 West Salem Replace Boilers 150,000.00$ 150,000.00$
12 ALMS Replace makeup air units (there are four in total, three more to replace)100,000.00$ 100,000.00$
13 ALMS - HVAC Control Updates 75,000.00$ 75,000.00$
14 ALMS Replace Cooling Tower 75,000.00$ 75,000.00$
15 West Salem Gym (replace 2 split system units)125,000.00$ 125,000.00$
16 ALMS Replace Elevator Hydraulic Unit (Mike Tyler, waiting to hear back from Otis Elevator)23,000.00$ 23,000.00$
-$
-$
Totals 151,000.00$ 103,000.00$ 1,068,859.00$ 278,000.00$ 1,150,000.00$ 275,000.00$ 448,324.00$ -$ 3,474,183.00$
3,474,183.00$
Roofing
Project Name Total
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2019-2026
GW Carver Partial Roof Replacement COMPLETED 243,100.00$ 243,100.00$
SHS Small Gym Roof Replacement 105,285.00$ 105,285.00$
ALMS Select Sections Roof Replacement 250,000.00$ 239,000.00$ 489,000.00$
Ranking
1 East Salem 240,500.00$ 927,000.00$ 1,167,500.00$
2 West Salem 240,500.00$ 1,115,750.00$ 1,356,250.00$
3 ALMS (half of roof area) 944,514.00$ 944,514.00$
4 GW Carver (partial of 33,500 sf) 605,000.00$ 605,000.00$
Totals 243,100.00$ 355,285.00$ 239,000.00$ 481,000.00$ 927,000.00$ 1,115,750.00$ 944,514.00$ 605,000.00$ 4,910,649.00$
Appendix C
Item #6C
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Request to amend the School Capital Projects Fund budget as
approved by the School Board on November 2, 2021 and
appropriate funding of $414,062 for the Salem High School
Fieldhouse Renovation Project
SUBMITTED BY: Rosemarie B. Jordan, Director of Finance
SUMMARY OF INFORMATION:
The School Division’s 6 year CIP Plan and the School Capital Projects Fund budget were
amended by the School Board at their meeting on November 2, 2021. The Board
amended the 6 year CIP plan originally approved on October 12, 2021 to add the Salem
High School Fieldhouse renovation project. The Capital Projects Fund budget was
amended to transfer funding of $850,000 from other projects and appropriate $2,445,399
from fund balance for the fieldhouse renovation project. The attached memo covers the
various appropriation changes. Funding of $414,062 will be provided by the City from
General Fund fund balance. Local funding is being provided with the intent that all student
athletes have equal access to the fieldhouse.
FISCAL IMPACT:
Appropriation changes totaling $3,709,461 to be made to the School Capital Projects Fund.
Appropriate $414,062 from General Fund fund balance for the additional funds needed for
the project.
STAFF RECOMMENDATION:
Staff recommends that Council approve the School Board’s appropriation change of
$3,295,399 to the Capital Projects Fund per the attached reports. Appropriate $414,062
from General Fund fund balance and increase the budget in the Transfer to School
Division account, 10-012-6101-59440 by $414,062.
Salem City Schools
Additional CIP Funded Projects for FY 2021
November 2, 2021
Summary of Issue:
This report is to request the Board’s approval of the proposed field house project for FY
2022. We are requesting funding for this project as outlined on Attachment A. Funding
will include $1,988,485 from total fund balance, $456,914 from FY 21 fund balance, and
a request for $414,062 from the City. The purpose of the project is to provide all athletic
teams with better access to locker rooms, strength training facilities, and athletic training
facilities.
Background:
Historically, the board sets aside approximately $450,000 annually from year-end fund
balance as a contingency for emergency maintenance needs. Over the past several
years, we have not needed these funds and the division’s fund balance has grown. At
this time, we are recommending that these funds be allocated to the field house project
to take advantage of savings ($324,500) related to completing the project concurrently
with the high school project. The anticipated cost of the project is $3,709,461.
The remaining funds will come from projects that were previously funded through the
CIP process but were completed using Federal grants (ESSER II - East Salem Fan Coil
Units of $600,000). Additionally, we anticipate that funding (approximately $250,000)
will be available from the contingency line of the Salem High School project. After
combining the funds available, the school board will be short $414,062 to fund the
anticipated total cost of the field house project. Our report to City Council will include
the need for additional funding from the City to complete the project.
Policy Reference:
FB, Facilities Planning
Fiscal Impact:
At this time, a portion of unallocated fund balance funding will be categorized in
Assigned Fund Balance. The total project funding from capital reserve is $2,445,399.
Recommended Motion:
Move approval of using $1,988,485 from fund balance and $456,914 from the 6/30/2021
fund balance for a renovation of the fieldhouse located at Salem High School and
request that City Council appropriate funding from the corresponding fund balances as
required, and request that City Council provide an additional $414,062 necessary to
complete the project.
11/2/2021
Attachment A
Fund balance at 6/30/2020 - AUDITED $6,214,944
Less: amount to be held for Emergencies/Contingencies (approximately 10% of General Fund total budget)($4,226,459)
Available for FY 22 projects/future AE/construction $1,988,485
Avaliable from SHS Project Contingency $250,000
Available from East Air Handler Project now funded by ESSER $$600,000
Avaliable from FY 21 Fund Balance $456,914
$3,295,399
Name of Project Notes Estimated Cost
Fieldhouse Renovation Project $3,709,461
Total $3,709,461
(Over)/Under Budget ($414,062)
Salem City Schools
21-22 Request for Fund Balance Usage
Item #6D
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Request to appropriate Smart Scale funding for Mason Creek
Greenway Phase 3
SUBMITTED BY: Rosemarie B. Jordan, Director of Finance
SUMMARY OF INFORMATION:
Mason Creek Greenway Phase 3 will begin at the intersection of East Main Street and
Kesler Mill Road, where the Hanging Rock Trail currently ends. It will consist of a
combination of sidewalk and bike lanes along East Main Street and Electric Road
ultimately connecting to the existing Mason Creek Greenway at Lynchburg Turnpike. The
construction of Mason Creek Greenway Phase 3 will also include pedestrian signal
improvements and ADA ramps.
VDOT awarded $2,610,310 in Smart Scale (HB2) funds for the completion of Mason Creek
Greenway Phase 3. No local match is required for these funds.
FISCAL IMPACT:
The Smart Scale funds will allow us to construct Mason Creek Greenway Phase 3 linking
Hanging Rock Trail and Mason Creek Greenway at Lynchburg Turnpike.
STAFF RECOMMENDATION:
Staff recommends appropriating $2,610,310 to the capital projects federal grants account
20-012-0200-48995 and to the Mason Creek Greenway Phase 3 account 20-042-0205-
54730.
Budget Entry
Date GL Account Account Name
Increase/
(Decrease)Description
11/8/2021 20‐012‐0200‐48995 Federal Grants ‐ Capital Projects 2,610,310 Council 11/8 ‐ Appropriate state funding for Mason Creek Greenway Phase 3
11/8/2021 20‐042‐0205‐54730 Mason Creek Greenway Phase 3 2,610,310 Council 11/8 ‐ Appropriate state funding for Mason Creek Greenway Phase 3
Item # 6E
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Consider setting bond for physical improvements and erosion and
sediment control and landscaping for Long John Silver's.
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
physical improvements for Long John Silver’s.
STAFF RECOMMENDATION:
It is recommended that the project be bonded in the amount of $293,672.83 for a time frame
for completion set at twelve (12) months.
Item # 6F
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Consider setting bond for physical improvements and erosion and
sediment control and landscaping for RDG.
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 and physical improvements for RDG.
STAFF RECOMMENDATION:
It is recommended that the project be bonded in the amount of $91,042.00 for a time frame
for completion set at twelve (12) months.
Item # 6G
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT THE SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Adopt Resolution 1414 approving the City’s participation in the
proposed settlement of opioid-related claims against McKesson,
Cardinal Health, AmerisourceBergen, Janssen, and their related
corporate entities, and directing the City Attorney and/or City’s
outside counsel to execute the documents necessary to
effectuate the City’s participation in the settlements.
SUBMITTED BY: Jim Guynn, City Attorney
SUMMARY OF INFORMATION:
The City of Salem has filed suit against McKesson, Cardinal Health, AmerisourceBergen, and
Janssen Pharmaceuticals, along with certain of their corporate entities for their role in the
distribution, manufacture, and sale of the pharmaceutical opioid products that have fueled the
opioid epidemic and harmed the City of Salem.
Settlement proposals have been negotiated that will require these entities to pay up to $26
billion nationwide to resolve opioid claims against them.
This action will approve the City’s participation in the proposed settlement and directs the City
Attorney and/or the City’s outside counsel to execute the documents necessary to effectuate
the City’s participation in the settlements, including the required release of claims against
settling entities.
The City’s outside opioid litigation counsel and the City Attorney recommend approval of this
action.
FISCAL IMPACT:
The City will receive a prorated amount of the overall settlement based on the terms included.
STAFF RECOMMENDATION:
Staff recommends approval for the City’s participation in the proposed settlement and directs
the City Attorney and/or the City’s outside counsel to execute the documents necessary to
effectuate the City’s participation in the settlements, including the required release of claims
against settling entities.
{00433584.DOCX }
IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, NOVEMBER 8, 2021:
RESOLUTION 1414
A RESOLUTION OF THE SALEM CITY COUNCIL APPROVING OF THE
CITY’S PARTICIPATION IN THE PROPOSED SETTLEMENT OF OPIOID-
RELATED CLAIMS AGAINST MCKESSON, CARDINAL HEALTH,
AMERISOURCEBERGEN, JANSSEN, AND THEIR RELATED CORPORATE
ENTITIES, AND DIRECTING THE CITY ATTORNEY AND/OR THE CITY’S
OUTSIDE COUNSEL TO EXECUTE THE DOCUMENTS NECESSARY TO
EFFECTUATE THE CITY’S PARTICIPATION IN THE SETTLEMENTS
WHEREAS, the opioid epidemic that has cost thousands of human lives across the
country also impacts the City of Salem by adversely impacting the delivery of emergency
medical, law enforcement, criminal justice, mental health and substance abuse services,
and other services by the City of Salem’s various departments and agencies; and
WHEREAS, the City of Salem has been required and will continue to be required
to allocate substantial taxpayer dollars, resources, staff energy and time to address the
damage the opioid epidemic has caused and continues to cause the citizens of the City of
Salem; and
WHEREAS, the City of Salem has filed suit against McKesson, Cardinal Health,
AmerisourceBergen, and Janssen Pharmaceuticals, along with certain of their related
corporate entities for their role in the distribution, manufacture, and sale of the
pharmaceutical opioid products that have fueled the opioid epidemic that has harmed the
City of Salem; and
WHEREAS, the City’s suit seeks recovery of the public funds previously expended
and to be expended in the future to abate the consequences and harms of the opioid
epidemic; and
WHEREAS, settlement proposals have been negotiated that will cause McKesson,
Cardinal Health, AmerisourceBergen, and Janssen to pay up to $26 billion nationwide to
resolve opioid-related claims against them; and
WHEREAS, the City of Salem’s outside opioid litigation counsel has recommended
that the City participate in the settlements in order to recover its share of the funds that
the settlement would provide; and
WHEREAS, the City Attorney has reviewed the available information about the
proposed settlements and concurs with the recommendation of outside counsel;
NOW THEREFORE BE IT RESOLVED that the Salem City Council, this ___ day
of ____________, 2021, approves of the City’s participation in the proposed settlement
of opioid-related claims against McKesson, Cardinal Health, AmerisourceBergen,
Janssen, and their related corporate entities, and directs the City Attorney and/or the
{00433584.DOCX }
City’s outside counsel to execute the documents necessary to effectuate the City’s
participation in the settlements, including the required release of claims against settling
entities.
Upon a call for an aye and a nay vote, the same stood as follows:
John E. Saunders –
William D. Jones –
Byron Randolph Foley –
James W. Wallace III –
Renee F. Turk –
Passed:
Effective:
ATTEST:
H. Robert Light
Clerk of Council
Item # 6H
Date: 11-08-2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Consider adoption of the amended administrative calendar for
2022
SUBMITTED BY: Jay Taliaferro, City Manager
SUMMARY OF INFORMATION:
The Administrative Calendar for 2022 has been amended to include December 31 as the
observed holiday for New Year as the Friday before the holiday is generally observed when
New Year’s falls on a Saturday.
FISCAL IMPACT:
None
STAFF RECOMMENDATION:
Staff recommends approval of the amended 2022 Administrative Calendar
2022 Administrative Calendar
2022 SALEM CITY COUNCIL MEETINGS
6:30 P.M., COUNCIL CHAMBERS,
CITY HALL, 114 NORTH BROAD STREET
JANUARY 10 and 24
FEBRUARY 14 and 28
MARCH 14 and 28
APRIL 11 and 25
MAY 9 and 23
JUNE 13 and 27
JULY 11 and 25
AUGUST 8 and 22
SEPTEMBER 12 and 26
OCTOBER 10 and 24
NOVEMBER 14 and 28
DECEMBER 12
Work Sessions, if needed, may be held as part of
the regular Council agenda or separately scheduled
upon posting.
SALEM CITY COUNCIL'S AUDIT-FINANCE
COMMITTEE
Meets at 4 p.m. in the City Manager's Conference
Room at City Hall, 114 North Broad Street, on the
Thursday preceding the first regularly scheduled
council meeting date of the month (see calendar
above). Meetings will be held only if there are
items on the Salem City Council agenda that need
to be reviewed by said committee.
ECONOMIC DEVELOPMENT AUTHORITY
MEETINGS
Meets the third Tuesday of each month as needed
at 3:00 p.m., Council Chambers, City Hall,
114 North Broad Street.
Work Sessions, if needed, may be held as part of
the regular Authority agenda or separately
scheduled upon posting.
2022 PLANNING COMMISSION MEETINGS
7:00 P.M., COUNCIL CHAMBERS,
CITY HALL, 114 NORTH BROAD STREET
JANUARY 12
FEBRUARY 16
MARCH 16
APRIL 13
MAY 11
JUNE 15
JULY 13
AUGUST 10
SEPTEMBER 14
OCTOBER 12
NOVEMBER 16
DECEMBER 14
Work Sessions, if needed, may be held as part of
the regular Commission agenda or separately
scheduled upon posting.
CITY HOLIDAYS
City offices will be closed in observance of the
following Holidays:
December 31, 2021 New Year’s Day
January 17 Martin Luther King Day
Floating Holiday* Presidents’ Day
May 30 Memorial Day
June 20 Juneteenth
July 4 Independence Day
September 5 Labor Day
November 11 Veterans Day
November 24 & 25 Thanksgiving
December 26, Monday Christmas
*City offices will be open on this day
NOTE: Changes to public meeting dates, times, and
locations will be posted in accordance with the Code
of Virginia.
Item # 6I
Date: 11/08/2021
AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA
HELD AT SALEM CIVIC CENTER
MEETING DATE: November 8, 2021
AGENDA ITEM: Authorize the City Manager to execute the amended agreement for the
sale of a parcel known as Lot A, 630 Union Street, Tax Map #160-11-
2, consisting of 1.4021 acres. (Public hearing was held on November
14, 2016).
SUBMITTED BY: Jay Taliaferro, City Manager
SUMMARY OF INFORMATION:
A public hearing was held on November 14, 2016, to consider the sale of the above property
as advertised in the November 3, 2016, issue of The Salem Times. This was an undeveloped
piece of property that the City had owned for some time. At that point, there were no
prospective buyers, but Council voted to direct City administration to entertain any definitive
proposals and to bring any such proposals back to City Council for action related to the sale
of this parcel of land. At the October 12, 2020, meeting Council voted to authorize the City
Manager to execute an agreement for the sale of this same property to Union Street Plaza,
LLC. Subsequent sale conditions were negotiated, and this agreement reflects the amended
agreement.
FISCAL IMPACT:
The sale price remains unchanged at $100,000.
STAFF RECOMMENDATION:
Staff recommends authorizing the City Manager to execute this amended sale contract.
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PURCHASE AGREEMENT
This Agreement for Purchase and Sale of Real Property ("Agreement"), is made this
______ day of __________, 2021, by and between City of Salem, Virginia ("Seller”) and Union
Street Plaza, LLC ("Purchaser").
WITNESSETH:
Seller is the sole owner in fee simple of certain unimproved real property designated as Lot
A, 630 Union Street, designated as Tax Map #160-11-2, containing 1.4032 acres, more or less,
located in the City of Salem, Virginia (hereinafter “the Property”).
Seller is desirous of selling the Property unto the Purchaser, and Purchaser is desirous of
purchasing the Property; and now, therefore,
FOR and in consideration of Ten Dollars ($10.00) cash in hand paid by Purchaser to Seller,
receipt of which is hereby acknowledged, and the mutual promises hereafter set forth and other
good and valuable consideration, the receipt and sufficiency of which is also hereby acknowledged,
the parties hereto, intending to be fully and legally bound, hereby agree as follows:
1. DEFINITIONS. As used in this Agreement unless the context otherwise requires or
it is otherwise herein expressly provided, the following terms shall have the following meanings:
"Deposit" shall mean Five Thousand and 00/100 Dollars ($5,000.00) in the form
hereafter described deposited with the Seller.
"Effective Date" shall mean the date of the last signature of a party hereto.
"Property" shall mean the lot or parcel of land as the same is described hereinabove.
The Property shall also include all of Seller's right, title and interest in and to all
inchoate rights, easements, appurtenances, and unpaid award in respect of any street, road, alley,
sidewalk or parking area in front of the Property, and in and to any unpaid award for damage by
reason of any change in the grade of any such street, road, alley, sidewalk or parking area.
"Purchaser" shall mean Union Street Plaza, LLC, with an address at: ____________
__________________________________________________.
"Purchase Price" shall mean $100,000.00 cash.
"Seller" shall mean City of Salem, Virginia, with an address at P.O. Box 869, Salem,
Virginia 24153.
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"Settlement" and/or "Closing" shall mean the consummation of the sale and
purchase provided for in this Agreement to occur as provided in Paragraphs 11 and 12 hereof.
2. PURCHASE AND SALE. The Seller agrees to sell and convey, and the
Purchaser agrees to purchase the Property upon the terms set forth hereinafter.
3. DEPOSIT, PURCHASE PRICE AND PAYMENT.
3.1 Purchaser has provided the Deposit in the amount of Five Thousand and
00/100 Dollars ($5,000.00) to Seller. The Deposit shall be returned to Purchaser if this
Agreement terminates without a breach of this Agreement by Purchaser.
3.2 The Purchase Price shall be paid as follows.
(i) In addition to the Five Thousand and 00/00 Dollars ($5,000.00)
representing the Deposit, the Purchaser shall pay Ninety-Five Thousand and 00/100 Dollars
($95,000.00) in cash at Settlement.
4. PLANS, ENGINEERING, TITLE EXAMINATION AND OPERATIONAL
RECORDS AND OTHER DOCUMENTS TO PURCHASER. In consideration of the execution
of this Agreement, the Seller agrees to provide to the Purchaser, at no cost, immediately, but
not later than five (5) days after the Effective Date, any surveys, development information,
soil boring data, all title examination records and a copy of the title insurance policy now held
by the Seller which relate to the Property.
5. DEFAULT/TERMINATION.
5.1 In the event Purchaser fails or refuses to go to Settlement in compliance
with the terms hereof, and the Seller has not defaulted hereunder, the Seller shall retain the
Deposit as its sole remedy for such default, as liquidated damages, and Purchaser shall forfeit
its Deposit and neither party shall have any further obligations hereunder except as otherwise
provided in Paragraph 8.1. The parties acknowledge that the Deposit represents a reasonable
effort to ascertain the damages to Seller in the event of a Purchaser default, which damages
are difficult or impossible to quantify.
5.2 In the event Seller fails or refuses to go to Settlement or to perform its
obligations in compliance with the terms hereof, Purchaser shall be entitled, as its sole
remedies, to either (i) terminate this Agreement and be entitled to the return of the Deposit as
its sole remedy or (ii) in the alternative, sue for specific performance of this Agreement.
Purchaser shall have the right, until all the contingencies set forth in Paragraph
9.2 below have been satisfied, to notify Seller of its election to terminate this Agreement and
Seller shall immediately refund the Deposit referred to herein to Purchaser and neither party
shall have any further rights against the other arising out of this Agreement except as provided
in paragraph 8.1.
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6. REPRESENTATIONS AND WARRANTIES OF SELLER. The Seller
represents and warrants to the Purchaser as follows:
6.1 Subject to the Permitted Inspections, the title to the Property is, and at
Settlement will be, good, marketable, and free and clear of all liens, encumbrances, exceptions
or leases, and otherwise be free of covenants, conditions, restrictions. Title will also be
insurable at standard title insurance company rates at the title company chosen by Purchaser.
To the best of the knowledge of Seller, and subject to the Permitted Exceptions, there are no
title conditions adversely affecting title insurability. The Property is also sold "subject to" such
state of facts as an accurate survey of the Property would disclose, provided that (a) nothing
contained therein would render title unmarketable or would prevent or interfere with the
current use of the Property; (b) no improvements on the Property encroach upon adjoining
properties; and (c) the title company insuring Purchaser's title will agree to remove the "survey
exception" from Purchaser's title policy upon receipt of a survey.
6.2 The Seller is the sole fee simple owner of the Property and has all
necessary authority to sell the Property. There are no other contracts for sale or options
involving the Property. No other party has any right, title or interest in the Property; and there
are no leases affecting the Property.
6.3 The Property is zoned HM as defined by the City of Salem Zoning
Ordinance. There are no eminent domain or condemnation proceedings pending against the
Property, and Seller has no knowledge of such proceedings or of any intentions or plans
definite or tentative that such proceedings might be instituted.
6.4 There are no actions or suits in law or equity or proceedings by any
governmental agency now or pending or, to the knowledge of Seller, threatened against Seller
in connection with the Property. There is no outstanding order, writ, injunction or decree of
any court or governmental agency affecting the Property.
6.5 There has not been made and will not be made, without the Purchaser's
consent, any proffers or other commitments to any state, county, federal or local governmental
or quasi-governmental authority, utility company or school board relating to the Property,
which would impose any obligation on Purchaser or its successors and assigns, after
Settlement, to make any contribution of money or dedications of land or to construct, install or
maintain any improvements of a public or private nature on or off the Property.
6.6 The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of the terms hereof will not result in a
breach of any of the terms or provisions of, or constitute a default under, or conflict with any
agreement, indenture, or other instrument to which Seller is a party or by which it or the
Property is bound, any judgment, decree, order, or award of any court, governmental body or
arbitrator, or any law, rule, or regulation applicable to Seller.
6.7 To the best of Seller's knowledge: (i) none of the Property has been
excavated (except for standard grading and fill related to site development); (ii) no hazardous
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materials, toxic chemicals, or similar substances, as defined by 42 U.S.C. 1251, et seq. or 42
U.S.C. 6901, et seq. or 42 U.S.C. 9601, et seq. or 33 U.S.C. 1317(1), or 15 U.S.C. 2606(±), or 49
U.S.C. 1801 et seq., or regulations adopted pursuant thereto, or any similar provision of any
applicable state, Federal, or local law (collectively "Hazardous Materials"), are or were stored or
used on or under or otherwise were or are in existence or were in any way dealt with on or under
the Property; and (iii) no owner or occupant of the Property has received any notice from the
governmental agency with regard to such Hazardous Materials.
6.8 Seller knows of no materially adverse fact affecting or threatening to affect
the Property which has not been disclosed to Purchaser in writing.
6.9 Under penalty of law, Seller is not a "foreign person" as contemplated in
Section 1445 of the Internal Revenue Code, as amended. Seller agrees to execute at Settlement an
affidavit in the form required by the Internal Revenue Service to exempt Purchaser from any
withholding requirements under Section 1445.
6.10 In the event any of the representations, warranties, additional undertakings
of Seller in this Paragraph 6 and/or other responsibilities of the Seller, as set forth in this
Agreement, are not accurate and cannot be or are not ratified or fulfilled prior to Settlement, then
the Purchaser shall have the right at its sole option, to take any or none of the following actions:
(i) waive the inaccurate, unratified or unfulfilled representation, warranty, additional undertakings
and/or responsibility of Seller, and proceed with Settlement hereunder, provided, however, that
such waiver shall be in writing, or (ii) terminate this Agreement, whereupon all rights and
responsibilities hereunder shall be null and void, and neither party shall have any further obligation
hereunder. Remedies of Purchaser under this Paragraph are in addition to the remedies of
Purchaser under Paragraph 5.2 hereof and the rights of Purchaser under Paragraph 9.2 hereof.
7. REPRESENTATIONS AND WARRANTIES OF PURCHASER. The Purchaser
represents and warrants to the seller that the Purchaser has the financial ability to purchase the Property
and satisfy all other obligations under this Agreement.
8. ADDITIONAL UNDERTAKINGS OF THE PARTIES.
8.1 The Seller shall give to the Purchaser and their designated agents and
representatives full access to the Property during normal business hours throughout the Study
Period as defined in paragraph 9.2, including the right, at the Purchaser's own risk, cost and
expense, and upon reasonable notice to Seller, to cause its agents or representatives to enter upon
the Property for the purpose of making surveys or soil boring, engineering, water, sanitary and
storm sewer, utilities, topographic and other similar tests, investigations or studies and to perform
zoning and economic feasibility studies as the Purchaser may desire, provided, that the Purchaser,
at its expense, restores the Property to its prior condition to the extent of any changes made by its
agents or representatives in the event it does not purchase the Property. The Seller shall furnish to
the Purchaser during such periods all information concerning the Property which the Purchaser
may reasonably request and which is in the possession of Seller. Purchaser indemnifies and agrees
to hold Seller harmless and defend the Seller from any loss, cost, expense and claims for damages
to Seller or its agents caused by the actions of Purchaser or its agents in the course of conducting
5
the studies described under this paragraph 8.1. Purchaser's obligations hereunder are in addition to
the obligations of Purchaser and rights of Seller under Paragraph 5.1.
8.2 At Settlement, the Seller agrees to execute, acknowledge and deliver to the
Purchaser a general warranty deed (Deed) in proper form for recording, conveying the Property to
the Purchaser free and clear of all conditions, restrictions, liens, encumbrances or agreements.
Seller's Deed shall contain the following covenants, reservations and restrictions which shall survive
closing and run with the land and be appropriately provided for in the Deed: (i) No structure on the
Property shall be greater in height than one story. (ii) Two structures shall be erected on the Property
containing at least 6,000 square feet of finished area each. (iii) The sole uses allowed on the Property
are financial institutions, general offices, laboratories, medical offices/clinics, agricultural services,
antique shops, athletic instruction services, automobile parts/supply, retail, automobile repair
services, minor, business support services, commercial indoor amusement, commercial indoor
entertainment, commercial indoor sports and recreation, commercial outdoor sports and recreation,
communication services, construction sales and services, consumer repair service, convenience store,
equipment sales and rental, funeral services, garden center, gasoline station, hotel/motel/motor lodge,
personal improvement services, personal services, restaurant, retail sales, studio, fine arts, veterinary
hospital/clinic, and/or customary manufacturing, as defined by the Zoning Ordinance of the City of
Salem, Virginia. (iv) The roof of all structures on the Property shall be sloped with parapet walls
along all sides of the structures. (v) The façade of any structure erected on the Property shall consist
of brick masonry and glass and shall contain no sheet metal. (vi) HVAC components and dumpsters
shall be screened with materials similar to those used on the building façade. (vii) To the extent that
the Seller’s future use of the Property involves installation of fencing, the Seller will only use chain
link fencing with vinyl coating in green or black color. (viii) The site shall be developed in
substantial conformance to the “Union Plaza” conceptual development plan by Brushy Mountain
Engineering, PLLC dated _________________.
The foregoing reservations, restrictions and covenants shall run with the land and,
further, shall be set forth in the Deed of conveyance from the Seller to the Purchaser.
8.3 The Seller agrees to give possession and occupancy of the Property on the
date of Settlement, free and clear of any and all leases or other right in any third party.
8.4 Seller agrees to deliver the following to the Escrow Agent at Settlements:
(i) The fully executed Deed.
(ii) Any other documents reasonably required by Escrow Agent or
Purchaser.
9. CONDITIONS PRECEDENT (CONTINGENCIES) TO THE OBLIGATIONS OF
PURCHASER TO SETTLE. The obligations of the Purchaser to settle upon the Property pursuant to
the provisions of this Agreement shall be subject to all of the following conditions:
The representations and warranties of the Seller set forth in this Agreement shall be true and
correct on and as of the Settlement as though such representations and warranties were made on and
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as of such date. Notwithstanding that certain of Seller's representations and warranties may be
limited to the extent of actual knowledge of the facts stated therein, it shall be a condition precedent
to Purchaser's obligation to go to Settlement that the facts stated in all such representations and
warranties shall be materially correct as of the time of Settlement.
9.1 Purchaser shall have thirty (30) days from the Effective Date ("Study
Period") to complete the studies described in Paragraph 8.1 above and to determine in its sole
discretion that the condition of the Property is satisfactory for the intended use of Purchaser. In the
event that the Purchaser is not so satisfied for any reason whatsoever, at any time prior to the
expiration of the Study Period and Purchaser has advised the Seller in writing of its intention not to
proceed to Settlement under the terms of this Agreement, then, in such event, this Agreement shall
automatically be deemed to be terminated, the Deposit shall be returned to the Purchaser
immediately and no party shall have any further liability hereunder except for such obligations of
Purchaser under Paragraph 8.1.
9.2 The title to the Property shall be insurable by a recognized title company of
the Purchaser's choice, at standard rates, and without exception other than the Permitted
Exceptions, all at the cost of the Purchaser. Should a Non-Permitted Encumbrance be discovered
and Seller advised in writing prior to Settlement, then Purchaser, at its sole discretion, may take any
action authorized by paragraph 6.10 hereof. In addition, the time for Settlement may be extended,
at Purchaser's option, for a period to be specified by Purchaser not to exceed thirty (30) days from
the date of notice by Purchaser to Seller of a Non-Permitted Encumbrance, in order to allow Seller
to remove the Non-Permitted Encumbrance.
9.3 Seller shall have discharged all obligations required of it under this
Agreement and shall have provided all documents and other items required to be provided pursuant
to paragraph 8.4 hereof.
9.4 Rezoning. The sale and purchase of the Property is expressly contingent
upon the rezoning of the Property by the Council of the City of Salem, Virginia, to zoning
classification HBD. The petition for rezoning and the cost associated with such rezoning shall be
the responsibility of the Seller. Should such rezoning petition be denied, Seller shall refund the
Deposit to the Purchaser and neither party shall have any further rights against the other arising out
of this Agreement except as provided in Paragraph 8.1.
10. OWNER'S AFFIDAVIT AND INDEMNITY BY SELLER. Seller represents and
warrants to Purchaser that all contractors, sub-contractors, laborers, material men or other parties
rendering professional services to improve or benefit the Property have been or will be paid in full
by Seller prior to Settlement, and Seller shall deliver to Purchaser at Settlement final lien waivers
and/or releases of liens from all such parties. Furthermore, Seller agrees to execute and deliver at
Settlement such affidavits or indemnities as Purchaser's title insurance company shall require in
order to delete from Purchaser's title insurance policy all standard exceptions for untiled
mechanic's, material men's or similar liens except exceptions approved by Purchaser related to the
Leases.
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11. SETTLEMENT. The Settlement shall be held at the offices selected by the
Purchaser on a date which is no later than ten (10) days after the contingencies contained in
paragraph 9.2 and 9.5 are met or satisfied in their entirety, or at an earlier date at the option of
Purchaser. Notwithstanding the foregoing, Settlement shall occur no later than ___________, 2021.
TIME IS OF THE ESSENCE TO THIS AGREEMENT.
12. TENDER OF SETTLEMENT. The delivery to the Escrow Agent by the Purchaser of
the Purchase Price, and by Seller of the executed Deed together with all other documents and
instruments required to be delivered by either party to the other by the terms of this Agreement shall
be deemed to be a good and sufficient tender of performance of the terms hereof.
13. SETTLEMENT OBLIGATIONS OF THE PARTIES. The cost of title examination
and state and city taxes payable in connection with the recording of the deed and any deed of trust
shall be paid by Purchaser. The Seller is exempt from paying the Virginia Grantor's Tax. Other
settlement costs shall be charged as is customary in Virginia. Each shall pay fees charged to them
and as agreed upon by them with their attorney. Real estate taxes will be prorated as of the
Settlement. At Settlement, Seller shall satisfy or cause to be released all deeds of trust or similar
liens to which the Property is subject or shall make provision satisfactory to Purchaser for full and
complete satisfaction.
14. RISK OF LOSS AND CONDEMNATION. Risk of loss shall be borne by Seller prior
to Settlement. However, in the event of any damage to the Property prior to Settlement, the
Purchaser shall have the election to close as required hereunder without diminution in the Purchase
Price and with the assignment by Seller of all its interest in payments for damage to the Property. In
the event of a condemnation of any part of the Property prior to Settlement, the Purchaser shall have
the option in its sole discretion to terminate this Agreement or to proceed to Settlement with any
condemnation award paid or credited to Purchaser at Settlement.
15. LIMITATION ON LEASES AND OTHER CONTRACTS. Between the date of this
Agreement and the Settlement, Seller shall not, without Purchaser's prior written consent, grant a
written lease or other agreement to any party for any purpose relating to any portion of the Property.
16. ENTIRE AGREEMENT. The Recitals and Exhibits and documents referred to
therein are hereby incorporated into this Agreement. No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties hereto. No waiver of any of the
provisions of this Agreement or other agreements referred to herein shall be valid unless in writing
and signed by the party against whom it is sought to be enforced. This Agreement contains the entire
agreement between the parties relating to the purchase and sale of the Property, and all prior
negotiations between the parties are merged in this Agreement, and there are no promises,
agreements, conditions, undertakings, warranties, or representations, oral or written, expressed or
implied, between them other than as herein set forth.
17. BURDEN AND BENEFIT. All terms of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective legal representatives, successors, and
assigns.
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18. GOVERNING LAW. Notwithstanding the place where this Agreement may be
executed by any of the parties hereto, the parties expressly agree that all terms and provisions hereof
shall be construed and enforced in accordance with the laws of the Commonwealth of Virginia as
now adopted or as may be hereafter amended.
19. NOTICES. All notices, requests, demands or other communications hereunder shall
be in writing and shall be effective when delivered personally or three (3) business days after
mailing if sent by U. S. registered or certified mail, return receipt requested, and postage prepaid,
addressed as follows:
If to Seller: City of Salem, Virginia
Attn: James E. Taliaferro, II
P.O. Box 89
Salem, VA 24153
with copies to: Jim H. Guynn, Jr., Esq.
Guynn, Waddell, Carroll & Lockaby, P.C.
415 S. College Avenue
Salem, VA 24153
Telephone number: 540-387-2320
If to Purchaser: Union Street Plaza LLC
________________________________
________________________________
with a copy to: ________________________________
________________________________
________________________________
________________________________
first set forth above or to such other address as may be given by any party to the other party by
notice in writing. Copies of notices are provided as a courtesy and are not themselves notice and
notice hereunder shall be accomplished with or without the forwarding of such copies.
20. HEADINGS. The captions and headings herein are for convenience and reference
only and in no way define or limit the scope or content of this Agreement or in any way affect its
provisions.
21. ASSIGNMENT. This Agreement may not be assigned by the Purchaser without the
express written consent of the Seller which such consent will not be unreasonably withheld.
22. COUNTERPART ORIGINAL. This Agreement may be executed in two or more
counterpart originals all of which counterparts shall have the same force and effect as if all the
parties hereto had executed a single original of this Agreement.
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23. ADVICE OF COUNSEL AND CONSTRUCTION. All parties to this Agreement
have been represented by counsel or have had the opportunity to be so represented. Accordingly, the
rule of construction of contract language against the drafting party is hereby waived by both parties.
24. SURVIVAL. The representations, warranties, covenants, agreements and indemnities
set forth in this Agreement shall survive the Settlement under this Agreement and the execution and
delivery of any deed shall not be merged therein.
25. JOINT AND SEVERAL OBLIGATIONS. The obligations of Seller and Purchaser
under this Agreement are joint and several.
26. BROKERAGE. No real estate broker is involved in this transaction.
27. REPURCHASE OPTION.
(A) Seller retains the right and option, and Purchaser conveys a right and option to
the Seller to repurchase the Property under the following circumstances:
(i) The failure of the Purchaser to properly complete the construction of
two one-story structures on the Property consisting of at least 6,000 square feet each within three (3)
years from closing.
(B) The Seller may exercise these repurchase options by notifying Purchaser
within sixty (60) days from the required completion dates for the structure construction. The Seller
shall then close and consummate the repurchase of the Property within sixty (60) days after such
exercise.
The repurchase price of the Property shall be $100,000.00. The provisions of
this paragraph shall survive closing and shall be included in the deed of conveyance from the Seller
to the Purchaser. Upon satisfaction of the structure construction requirements herein, the Seller shall
execute an appropriate instrument terminating the repurchase options retained and granted herein.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed.
PURCHASER:
UNION STREET PLAZA, LLC
By:
DATE Its:
SELLER:
CITY OF SALEM, VIRGINIA
By:
DATE Its:
Item #6J
Date: 11/08/2021