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HomeMy WebLinkAbout8/9/2021 - City Council - Agenda -Regular City Council Meeting AGENDA Monday, August 9, 2021, 6:30 P M Work S ess ion 6:00 P.M. C ounc il C hambers C onference R o om, C ity Hall, 114 North Broad S treet, S alem, Virginia 24153: R egular S ession 6:30 P.M. C o uncil C hambers , C ity Hall, 114 North Broad S treet, S alem, Virginia 24153 WO RK SE SSI ON 1.Call to Order A.Roll Call 2.New Business A.Discussion I tems Marijuana Legislation 3.Adjournment RE GUL AR SE S SI ON 1.Call to Order 2.Pledge of Allegiance 3.Bid Openings, Awards, Recognitions 4.Consent Agenda A.Citizen Comments Comments from the public, limited to five minutes, on matters not already having a public hearing component that same meeting. T he following have signed up to speak at this meeting: 1) Angela Lieb, 420 Valleydale Avenue B.Minutes Consider acceptance of the minutes for the J uly 26, 2021 Work Session and Regular Meeting minutes. 5.Old Business A.Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of the Salem Historical Society, property owner, located at 1936 West Main Street (Tax Map # 138-2-7) from C BD Community Business District with proffered conditions to C BD Community Business District without conditions. (Approved on first reading at the J uly 26, 2021 meeting). B.Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of Property C atalyst Group, Inc., applicant, and Layman Candy Company, Inc., property owner, located at 1637 East Main Street (Tax Map #77-3-13) from LM Light Manufacturing with proffered conditions, to HBD Highway Business District with removal of the preexisting proffered conditions, and adding new proffered conditions offered by the owner and applicant. (Approved on first reading at the J uly 26, 2021 meeting.) C.Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of Property C atalyst Group, Inc., applicant, and Layman Candy Company, Inc., property owner, located at 23 Dalewood Avenue (Tax Map #77-3-12) from HBD Highway Business District with proffered conditions, to HBD Highway Business District with removal of the preexisting proffered conditions and adding new proffered conditions offered by the owner and applicant.(Approved on first reading at J uly 26, 2021 meeting). 6.New Business A.F iscal Agent Agreements Consider approval of the fiscal agent agreements with Court-C ommunity C orrections and Cardinal Criminal J ustice Academy. Audit - Finance C ommittee B.Appropriation of F unds Consider request to re-appropriate funding for Sewer vehicle. Audit - Finance Committee C.P erformance Contract - B lue Ridge B ehav ioral Healthcare Consider approval of the fiscal year 2022 performance contract with Blue Ridge Behavioral Healthcare. Audit - Finance Committee D.Opioid Abatement Resolution Adopt Resolution 1405 authorizing and approving the City Manager and the City Attorney to execute the Virginia Abatement Fund Settlement Allocation Memorandum of Understanding. E.Boards and Commissions Consider appointments to various boards and commissions. 7.Adjournment Audit-Finance Co mmittee Meeting, August 5, 4:00 p.m., City Manager's Conference Room, 114 N. Broad Street, Salem Item #4B Date: 8/09/2021 Item # 5A Meeting Date: 8/09/21 AT A REGULAR MEETING OF CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL AGENDA ITEM: Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of the Salem Historical Society, property owner, located at 1936 West Main Street (Tax Map # 138-2-7) from CBD Community Business District with proffered conditions to CBD Community Business District without conditions. Approved on first reading at the July 26, 2021 Council meeting. SUBMITTED BY: Benjamin W. Tripp, AICP, CEcD, City Planner SUMMARY OF INFORMATION: Zoning: CBD Community Business District Future Land Use Plan Designation: Commercial Existing Use: Vacant Proposed Use: Personal Services The subject property consists of a single parcel of approximately 9.4 acres, located along the south side of West Main Street, east of the intersection with Wildwood Road. It is occupied by a historically designated two-story home. Previously, the owner of the property requested the zoning be changed to CBD with proffered conditions to allow a restaurant. They are now requesting those conditions be changed in order to allow more flexibility for the property, and to allow “Glow Healing Arts” as a tenant. SUMMARY OF PROPOSED CHANGES; The applicant is requesting these conditions be removed: The use of the property will be limited to the following: Civic Use Types Administrative Services Cultural Services Office Use Types General Offices Commercial Use Types Antique Shops Assembly Hall Homestay Inn Micro-brewery (lf allowed by the underlying zoning) Restaurant Retail Sales Studio, Fine Arts Miscellaneous Use Types Mixed Use (if allowed by the underlying zoning) Outdoor Gathering FISCAL IMPACT: Adjusting the conditions to allow a new tenant to use the space will produce a positive fiscal impact. STAFF RECOMMENDATION: Staff recommends approval. Item # 5 B,C Meeting Date: 8/09/21 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL AGENDA ITEMS: SUBMITTED BY: SUMMARY OF INFORMATION: Zoning: LM Light Manufacturing (77-3-13), and HBD Highway Business District Future Land Use Plan Designation: Commercial (77-3-13 and 77-3-16) and Residential (77- 3-12, 77-3-14, and 77-3-15) Existing Use: Warehouse, residential, retail. Proposed Use: Personal Storage The subject property consists of five parcel totaling approximately two acres, located at the northeast corner of Electric Road and East Main Street. They are occupied by a large L B. Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of Property Catalyst Group, Inc., applicant, and Layman Candy Company, Inc., property owner, located at 1637 East Main Street (Tax Map #77-3-13) from LM Light Manufacturing with proffered conditions, to HBD Highway Business District with removal of the preexisting proffered conditions, and adding new proffered conditions offered by the owner and applicant. (Approved on first reading at the July 26, 2021 meeting.) C. Amendment to the Zoning Ordinance Consider ordinance on second reading for rezoning the property of Property Catalyst Group, Inc., applicant, and Layman Candy Company, Inc., property owner, located at 23 Dalewood Avenue (Tax Map #77-3-12) from HBD Highway Business District with proffered conditions, to HBD Highway Business District with removal of the preexisting proffered conditions and adding new proffered conditions offered by the owner and applicant.(Approved on first reading at July 26, 2021 meeting). Benjamin W. Tripp, AICP, CEcD, City Planner shaped warehouse, parking areas, two single family homes, and a two story commercial structure. SUMMARY OF PROPOSED CHANGES; The applicant is requesting the property be rezoned, and a Special Exception Permit granted in order to allow a new 99,000 sq ft three story self-storage building to be constructed on the site. All the existing buildings will be demolished. FISCAL IMPACT: Replacing dilapidated vacant structures with a new structure, containing an active use, will produce a positive fiscal impact. STAFF RECOMMENDATION: Staff recommends approval. PROFFERED CONDITIONS: The applicant hereby agrees to proffer the following conditions as they apply to the subject rezoning request for the following Official City of Salem, Virginia Tax Numbers 77-3-12 and 77-3-13 1.The property will be developed in substantial conformance with the conceptual site plan preparedby Balzer and Associates, Inc. entitled "Layman Candy Company" dated June 7, 2021 subject toany changes to access that may be required by the City of Salem and the Virginia Department ofTransportation during the site plan review process. 2.The building will be developed in substantial conformance with the provided architecturalperspective rendering indicated as Exhibit B and dated July 6, 2021. Owner: __.. Print: ::::::::�/� Applicant: Print: Qpt;-y k JhoV'V\f 5<3 "-- Item #5C Date: 8/09/2021 1 Item #6A Date: 8/09/2021 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: August 9, 2021 AGENDA ITEM: Fiscal Agent Contracts for Fiscal Year 2021-2022 SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: Attached are contracts for the City to act as fiscal agent for Court-Community Corrections Program, Regional Alcohol Safety Action Program Board and Cardinal Criminal Justice Academy. The City of Salem has acted as fiscal agent for these entities for a number of years and has experienced no difficulty in acting in this capacity. FISCAL IMPACT: Each of these agencies reimburses the City for out-of-pocket expenses, such as audit fees, materials and supplies, and all other contractual related items. They also reimburse a portion of salaries and fringe benefits for all departments involved in providing services to their agency. STAFF RECOMMENDATION: Staff recommends the City Council authorizes the proper City officials to execute these contracts authorizing the City to continue to act as fiscal agent for these agencies for fiscal year 2021-2022. CITY OF SALEM, VIRGINIA FISCAL AGENT CONTRACT FOR CARDINAL CRIMINAL JUSTICE ACADEMY THIS CONTRACT, made and entered into this the 1st day of July 2021 by and between the CITY OF SALEM, VIRGINIA hereinafter referred to as the "City", and the Cardinal Criminal Justice Academy Governing Council, hereinafter referred to as the "Council". WHEREAS, the City has been informed by the Council of the need for promoting a law enforcement/corrections training program in relation to public safety in the Roanoke Valley and surrounding jurisdictions; and WHEREAS, the City has applied for and has been approved as grantee and fiscal agent of various State grants pursuant to the appropriate provisions of the 1950 Code of Virginia, as amended, hereinafter referred to as "Grant" and WHEREAS, the City contracts hereby with the Council to provide for the administration of the Cardinal Criminal Justice Academy as provided by statute and the terms of the prospective grants. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES herein contained; witnesseth: (1) The Council agrees as follows: (a) to accept the responsibility for providing a law enforcement/corrections training program, and other like programs, as provided by Virginia law, to the Roanoke Valley area and surrounding jurisdictions in the manner and to the extent set out in the provisions of the said Grants. (b) to accept sole responsibility for the administration and operation of all law enforcement and corrections training programs through the Cardinal Criminal Justice Academy. (c) that all purchases made with funds from said Grants shall be in compliance with State laws and purchasing regulations of the City. (d) that the Council will abide by all the rules, regulations, guidelines, and general and special conditions of the Grants. (e) to provide information required by the City to the extent that the City will be able to meet its obligations to file accurate and timely financial and narrative reports as may be required by the said Grants, and to furnish a fidelity bond with corporate surety in an amount not less than the full amount of the largest of said Grants during the term of this agreement or the sum of $200,000.00 whichever is greater, to save harmless the City, its officials, agents, or employees, from loss or liability by reason of any determination that the City, its officials, agents, or employees, are liable to the Commonwealth of Virginia for funds received by the City pursuant to the terms of the said Grants, or because of any default, malfeasance in relation to the provisions of this agreement, or the terms, conditions or provisions of the said Grants on the part of the Council, its officers or agents in administering said Grants, said bond to remain in full force and effect until such time as the Commonwealth of Virginia has from time to time approved all disbursements in writing or has in writing or otherwise absolved the City, its officials, agents or employees from responsibility for funds theretofore received pursuant to the said Grants. (f) to make all reports, other than financial, to State agencies, as required by the Grants, and a copy of these reports shall be sent to the City. (g) to reimburse the City of all expenses incurred in its capacity as fiscal agent, to include, but not limited to (cost of personnel, fringe benefits, office supplies, printing, accounting, auditing, processing of payroll, postage and technology); amount to be billed on a monthly basis by the City. (2) The City will maintain a separate agency fund in the accounting system of the City in which will be recorded the financial transaction of the Council. The City will keep all records of the receipts and disbursements of Grants received by the Council. (3) All receipts from the State of Virginia, the Federal Government, and fees collected in each of the participating localities will be deposited in this agency fund. (4) The Director of the Academy shall have printed pre-numbered receipts on which all fees shall be recorded as collected. These fees shall be deposited daily in the account set up for this purpose, including all gifts, donations, or other funds received. (5) In addition to maintaining an agency fund, the City shall maintain a complete payroll accounting system for the employees of the Council. Included in the payroll records will be a complete reporting of all deductions from the employees' earnings (FWT, FICA, and State Withholding Taxes, Virginia Retirement System Pension and Life Insurance Plans, Health Insurance, Credit Union and other applicable deductions). (6) The City's finance department shall maintain adequate records disclosing the details of all receipts and all disbursements. The accounting system shall contain the following minimum requirements: (a) A general ledger showing an up-to-date balance of all accounts, budget appropriations, and unexpended balance. (b) A complete set of journals showing all receipts, disbursements and adjustments. These journals shall clearly identify each transaction. (c) All disbursements shall be by check and approved for payment by the Council, or its Director, and by the Finance Director of the City. (7) Rental of Property, the Council agrees to a monthly rental fee of $1.00 for use of the facility currently in place at 917 Central Avenue for fiscal year 2021-22, and an annual lease payment of $14,500 for the use of the facility located at 912 Central Avenue for fiscal year 2021-22. The Council may at its option, prepay any of the required installments. The City will provide insurance protecting the Academy from liability and property loss. (8) As payment for services provided by the City as Fiscal Agent, and outlined above, the Academy agrees to reimburse the City the sum of $1,010.31 per month. (9) Employees of the Grant shall be considered employees of the City and as such shall have the same benefits as other City employees. Should any grievance arise between an employee of the Cardinal Criminal Justice Academy and its Director, or the Council, the Council shall act as the personnel board for the City, and its decision as to any grievance shall be final. (10) The parties hereto agree that this contract shall commence on July 1, 2021, and shall end on June 30, 2022, subject to the City's right to declare this contract void if the Council violates any of the provisions of this agreement. Entered into this the day and year first hereinabove written. CITY OF SALEM, VIRGINIA By: ________________________________ Mayor – Renee F. Turk CARDINAL CRIMINAL JUSTICE ACADEMY By: ________________________________ Chairman – Chief, Michael D. Crawley By: ________________________________ Vice-Chairman – Chief, Anthony S. Wilson ATTEST: ____________________ Kip Vickers, Director Cardinal Criminal Justice Academy July 1, 2021 Page 1 of 5 CITY OF SALEM, VIRGINIA FISCAL AGENT CONTRACT with the REGIONAL COMMUNITY CRIMINAL JUSTICE BOARD and the REGIONAL ALCOHOL SAFETY ACTION PROGRAM POLICY BOARD THIS CONTRACT, made and entered into this 1st day of July, 2021 by and between the CITY OF SALEM, VIRGINIA, hereinafter referred to as “the City,” and THE REGIONAL COMMUNITY CRIMINAL JUSTICE BOARD and THE REGIONAL ALCOHOL SAFETY ACTION PROGRAM POLICY BOARD, hereinafter collectively referred to as “the Board,” provides as follows: 1. To promote the common good and enhance public safety the governing bodies of the counties and cities that make up the 23rd and 25th Judicial Circuits and Districts of Virginia, acting in accordance with enactments of the General Assembly of Virginia, created the Regional Alcohol Safety Action Program Policy Board and the Regional Community Criminal Justice Board and selected the members of those boards. 2. All necessary governmental units and agencies have authorized the City to serve the Board as its Fiscal Agent and as the Grantee of funds that may be allocated or directed to the Board (or either of its constituent boards) by governmental or private bodies, including but not limited to the Virginia Commission on VASAP and the Virginia Department of Criminal Justice Services, which funds are for convenience hereinafter referred to as “Grant” or “Grants.” 3. The City hereby contracts, covenants, and agrees: a. to serve the Board as its Fiscal Agent and the Grantee of Grants; b. to provide fiscal administration and management for Grants; and c. to do so consistently with all requirements of law and of any particular Grant. 4. The Board hereby contracts, covenants, and agrees: 2 a. Consistently with the provisions of Grants, the laws of Virginia, and the directives of the appropriate Executive and Judicial Branch officials, to provide Alcohol Safety Action Programs and Community Corrections Programs provided by the Grants in the area served by the programs. b. To have sole responsibility for the administration and operation of all Policy Board programs. c. That all purchases made with the funds from said Grants will comply with federal and state laws and the City’s purchasing regulations. d. To abide by all the rules, regulations, guidelines, and general and special conditions of any Grant. e. To provide all information that the City needs to file, accurately and timely, any financial and narrative reports that may be required by the any Grant, or by generally accepted accounting practices. f. To furnish a fidelity bond with corporate surety in an amount not less than either (a) the full amount of the largest Grant during the term of this agreement, or (b) $250,000 whichever is greater, which bond will indemnify and to save harmless the City, its officials, agents, and employees, from loss or liability to the Commonwealth of Virginia for funds received by the City pursuant to the terms of a Grant, or because of any default, malfeasance, misfeasance on the part of the Board, or on the part of any officers, agents, or employees of any Alcohol Safety Action Program or Community Criminal Justice or Community Diversion Incentive Program, said bond to remain in effect until such time as the Commonwealth of Virginia has approved all disbursements in writing or has in writing otherwise absolved the City, its officials, agents and employees from the responsibility for funds received pursuant to any Grant. g. To make all non-financial reports required by any Grant and furnish a copy of all reports to the City. 3 h. To reimburse the City for all expenses incurred in its capacity as fiscal agent, to include, but not limited to the cost of personnel, fringe benefits, office supplies, accounting/auditing services, printing, processing of payroll, postage and technology charges. The parties agree that, during the term of this contract, this amount is $1,430.94 per month, which sum will be billed and paid on a monthly basis. 5. The City’s Director of Finance will serve as Program Administrator and will maintain a separate agency fund in the City’s accounting system in which will be recorded all financial transactions of the Board. The City will keep complete and accurate records of the receipts and disbursements of Grants received by the Boards. 6. All receipts from the State of Virginia, the federal government, local governments, and all fees collected will be deposited in this agency fund. 7. The Director of the Program shall have printed pre-numbered receipts on which all fees shall be recorded as collected. These fees, along with all gifts, donations or other funds received, shall be deposited daily in the agency account. 8. The City shall maintain a complete payroll accounting system for employees of the Boards. Included in the payroll records will be a complete reporting of all deductions from the employees’ earnings (FWT, FICA, W2(s) and State Withholding Taxes, Virginia Retirement System Pension and Life Insurance Plans, Health and Dental Plans, Credit Union deductions, and any other deductions). 9. The City shall maintain accurate records showing the details of all receipts and disbursements. The accounting system shall meet at least the following minimum requirements: a. A general ledger showing an up-to-date balance of all accounts, budget appropriations, and an unexpended balance. b. A complete set of journals showing all receipts, disbursements and adjustments. These journals shall clearly identify each transaction. 4 c. All disbursements shall be by check and approved for payment by the Board, or their Program Director, and by the Finance Director of the City. 10. Employees of the Board and its Alcohol Safety Action Program, Community Criminal Justice and Pretrial Services program shall be considered employees of the City and as such shall have the same benefits as other City employees. 11. In case any grievance under the City’s grievance system is filed by an employee of Regional Community Criminal Justice Board or the Regional Alcohol Safety Action Program Policy Board, the Board shall act as the Personnel Board for the City, and its decision as to any grievance shall be final. 12. This contract shall commence on July 1, 2021 and shall end on June 30, 2022. To the extent allowed by federal and state law, either party shall have the right to declare this contract void if the other party materially violates any provision of this agreement. 5 IN WITNESS WHEREOF, AND WITH INTENT LEGALLY TO BE BOUND, THE PARTIES, BY THEIR AUTHORIZED REPRESENTATIVES, AFFIX THEIR SIGNATURES: CITY OF SALEM, VIRGINIA By: ________________________________________ Renee F. Turk, Mayor By:_________________________________________ Rosemarie B. Jordan Regional Community Criminal Justice Board By: ________________________________________ Howard B. Hall Regional Alcohol Safety Action Program Policy Board ATTEST: _______________________________________ H. Robert Light City Clerk of Council July 1, 2021 ______________________________________ Krystal Hullette, Director July 1, 2021 Item #6B Date: 8/09/2021 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: August 9, 2021 AGENDA ITEM: Request to re-appropriate funding for Sewer vehicle SUBMITTED BY: Rosemarie B. Jordan, Director of Finance SUMMARY OF INFORMATION: In fiscal year 2021, $40,000 was included in the Sewer fund adopted budget to purchase a ¾ ton crew truck. Due to chip issues in the auto industry, the vehicle could not be purchased in fiscal year 2021. Staff requests that funds be reappropriated in fiscal year 2022 to purchase the truck. FISCAL IMPACT: Re-appropriated funds will be used to cover the cost of equipment. STAFF RECOMMENDATION: Staff recommends re-appropriating $40,000 to increase the appropriated from net position account budget, 52-052-0030-44696 by $40,000 and increase the motor vehicles and equipment account budget, 52-052-0031-58004 by $40,000 for the purpose stated above. Budget Entry Date GL Account Account Name Increase/   (Decrease)Description 8/9/2021 52‐052‐0030‐44696 Appropriated from net position 40,000       Re‐appropriate funding for crew truck 8/9/2021 52‐052‐0031‐58004 Motor vehicles and equipment 40,000       Re‐appropriate funding for crew truck 1 Item #6C Date: 8/09/2021 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: August 9, 2021 AGENDA ITEM: Performance Contract – Blue Ridge Behavioral Healthcare SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The City of Salem participates with Blue Ridge Behavioral Healthcare in providing Mental Health, Developmental and Substance Abuse Disorder Services to the citizens of Salem and the Roanoke Region. Each year, Blue Ridge Behavioral Healthcare enters into a “Performance Contract” with the Commonwealth of Virginia Department of Behavioral Health and Developmental Services in its service area. The Code of Virginia, Section 37.2- 508 as amended, requires the local governing body be given the option to review and concur in the plan to be submitted. For fiscal year 2021-22, Salem will contribute $155,104 to Blue Ridge Behavioral Healthcare. Blue Ridge Behavioral Healthcare has forwarded a copy of their FY 2022 Community Services Performance Contract to the City for Council approval. STAFF RECOMMENDATION: It is my recommendation that the FY 2022 Performance Contract be approved as submitted. A copy of the Community Services Performance Contract is attached for your review. July 13, 2021 Blue Ridge Behavioral Healthcare Mr. Jay Taliaferro City Manager City of Salem 114 North Broad Street Salem, VA 24153 Dear Taliaferro: Office of the CEO In compliance with §37.2-508 ,JB of the Code of Virginia as amended, I am enclosing a copy of Blue Ridge Behavioral Healthcare's proposed FY 2022 Performance Contract with the Virginia Department of Behavioral Health and Developmental Services . The complete Performance Contract can be found by visiting the BRBH website at https://www.brbh .org/wp-content/uploads/2021/07 /2021-07-08-Publice - Notice -FY-2022 -DBHDS -Performance-Contract.pdf and the attached Exhibit A lists specific resources and services information for the FY 2022 Community Services Performance Contract. According to the referenced Code section, the community services board, " ... shall make its proposed performance contract available for public review and solicit public comment for a period of 30 days." Should you or a representative of the City of Salem have any questions or comments about these documents, please reach out to Mark Chadwick, Chief Financial Officer by emailing mchadwick@brbh.org. As noted in the referenced Code section , if the governing body of each city or county does not approve the proposed performance contract by September 30 of each year, the performance contract shall be deemed approved or renewed . We are pleased to provide the FY 2022 Performance Contract information for your review. As always, we appreciate the collaboration and support of the City of Salem. Sincerely, Debbie Bonniwell Chief Executive Officer Mark Chadwick Chief Financial Officer Executive Offices 301 Elm Avenue, SW Roanoke, VA 24016 (540) 345-9841 Fax (540) 345-6891 The Community Services Board serving the Cities of Roanoke and Salem , and the Counties of Boteto urt, Craig , and Roanoke Item # 6D Date: 8/9/2021 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: August 9, 2021 AGENDA ITEM: Resolution authorizing and approving the City Manager and the City Attorney to execute the Virginia Abatement Fund Settlement Allocation Memorandum of Understanding SUBMITTED BY: Jim Guynn, City Attorney SUMMARY OF INFORMATION: The City (through outside opioid litigation counsel) and the Commonwealth of Virginia are separately engaged in litigation seeking to recover costs incurred and to be incurred in abating the opioid addiction epidemic that plagues Virginia communities. The City and the Commonwealth, through counsel, have extensively negotiated the terms of a memorandum of understanding relating to the allocation and use of such litigation recoveries. The City’s outside opioid litigation counsel has recommended that the City approve the proposed memorandum of understanding. Some of the key provisions of the agreement regarding the allocation and distribution of funds are set forth below. • All opioid funds received will be initially divided as follows: o 15% going to participating political subdivisions (including the City); there will be no restrictions on the use of these funds, o 70% going to the “Virginia Opioid Abatement Share,” and o 15% going to the Commonwealth of VA • The 70% going to the Virginia Opioid Abatement Share will then be further divided as follows: o 15% shall be allocated to the participating political subdivisions and shall be used for approved abatement purposes, and o 55% shall be allocated to the Virginia Opioid Abatement Fund (that was established by the General Assembly in 2021, pursuant to Section 2.2-2365 et. seq. of the Code of Virginia). FISCAL IMPACT: There is no cost incurred in the approval of the memorandum of understanding. STAFF RECOMMENDATION: Staff recommends approval and authorization to the City Manager and City Attorney to execute the memorandum of understanding. {00422632.DOCX } 19644821v1 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, AUGUST 9, 2021 RESOLUTION 1405 WHEREAS, the City of Salem, through their elected representatives and counsel, and the Commonwealth of Virginia, through the Office of the Attorney General, are separately engaged in litigation seeking to recover costs incurred and to be incurred in abating the opioid addiction epidemic that plagues Virginia communities; WHEREAS, the City of Salem and the Commonwealth of Virginia share a common desire to abate and alleviate the impacts of the opioid addiction epidemic and to maximize litigation recoveries from those third parties responsible for same; WHEREAS, in order to advance their common interests, the City of Salem and the Commonwealth of Virginia, through counsel, have extensively negotiated the terms of a memorandum of understanding relating to the allocation and use of such litigation recoveries; WHEREAS, the City’s outside opioid litigation counsel has recommended that the City approve the proposed memorandum of understanding; and WHEREAS, the City Attorney has reviewed the available information about the proposed memorandum of understanding and concurs with the recommendation of outside counsel; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Salem, assembled on this day at which a quorum is present, that the City of Salem hereby authorizes and approves, or confirms authorization and approval, of the Virginia Abatement Fund and Settlement Allocation Memorandum of Understanding attached hereto and incorporated herein by reference thereto as Exhibit “A”, and directs the City Manager or the City Attorney to execute and enter into such Memorandum of Understanding on behalf of the City of Salem. Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III - Renée F. Turk - ATTEST: __________________________ H. Robert Light Clerk of Council City of Salem, Virginia Item #6E Date: 8/09/2021