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HomeMy WebLinkAbout6/8/2020 - City Council - Minutes - RegularCi ty Counci l Meeti ng M INUTES Monday, June 8, 2020, 6:30 P M South Salem E lementary School, Cafeteria, 1600 Carolyn Road, Salem, Virginia 24153 1.C all to Order A regular meeting of the Council of the City of Salem, Virginia, was called to order at 6:30 p.m., there being present all the members to wit: Byron Randolph Foley, Mayor, J ane W. J ohnson, Vice-Mayor, C ouncil members: William D. J ones; J ames A. Martin, and J ohn E. Saunders; with Byron Randolph Foley, Mayor, presiding; together with J ames E. Taliaferro, II, City Manager; Rosemarie B. J ordan, Director of Finance; Mike Stevens, Communications Director; J udy L. Hough, Deputy City C lerk; Crystal L. Williams, Assistant to the City Manager; and Stephen M. Yost, C ity Attorney. 2.Pledge of Allegiance 1.Remote P articipation Statements C onsider the approval of remote participation statements from C ouncil members who wish to participate remotely for this meeting. No statements were needed for this meeting of C ouncil. 3.C onsent Agenda A.Work Session Hold a work session to discuss borrowing update, public comment guidelines, and any other topics deemed necessary. Mr. Taliaferro gave C ouncil an update on the public comment guidelines. Mayor Foley noted he did not see the item about the speaker being either a Salem citizen or a business owner in the city. Mr. Taliaferro noted this was not added, but staff would add this to the procedures. T here was further discussion regarding the public comment Mr. Taliaferro asked if Council would be willing to adopt these guidelines as amended with the change to Salem citizen or business owner and clearing up the 25 minute time period. Council agreed that they were ready to adopt the guidelines as amended and this item would be added to the agenda for a vote. C ourtney Rogers with Davenport & Company gave Council an update related to the 2020 borrowing plan for the C ity. C ouncil thanked Mr. Rogers and city staff for the work that went into the borrowing. T here were no other topics for discussion, and no action was taken on these items during the work session. B.Minutes Consider the approval of the minutes from the May 26, 2020, work session and regular meeting and the J une 3, 2020, budget work session. Accepted as presented 4.Old Business A.Amendment to City Code Consider ordinance on second reading amending Chapter 82 Taxation of T he C ode of the City of Salem, Virginia by adding Article X Local Hospital Provider Assessment, Sections 82-260 through 82-264 pertaining to implementing a local hospital provider assessment in the C ity. (Approved on first reading at the May 26, 2020 meeting.) William J ones motioned to adopt an ordinance on second reading amending Chapter 82 Taxation of T he Code of the City of Salem, Virginia by adding Article X Local Hospital Provider Assessment, Sections 82-260 through 82-264 pertaining to implementing a local hospital provider assessment in the City. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders B.Amendment to City Code Consider ordinance on second reading amending Chapter 90, Article III Water and Sewage Disposal, Division 3, Section 90-128(a) of T he C ode of the C ity of Salem, Virginia pertaining to water and sewer disposal charges in general. (Approved on first reading at the May 26, 2020 meeting.) J ane J ohnson motioned to adopt an ordinance on second reading amending C hapter 90, Article III Water and Sewage Disposal, Division 3, Section 90-128(a) of T he C ode of the C ity of Salem, Virginia pertaining to water and sewer disposal charges in general. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders C .Amendment to City Code C onsider ordinance on second reading amending C hapter 1, Section 1-13, of T he Code of the City of Salem, Virginia, pertaining to Courthouse Security Assessment. (Approved on first reading at the May 26, 2020 meeting.) William J ones motioned to adopt an ordinance on second reading amending Chapter 1, Section 1-13, of T he C ode of the C ity of Salem, Virginia, pertaining to C ourthouse Security Assessment. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 5.New Business A.Roanoke Valley Resource Authority Budget Consider approval of the 2020-2021 annual budget for the Roanoke Valley Resource Authority. Mr. Taliaferro noted that the service agreement for the Roanoke Valley Resource Authority requires all participating local governments to approve their budget annually prior to the fiscal year. Dan Miles presented the budget to C ouncil at their last work session on May 26 and so for Council's consideration this evening is the approval of their 2020-2021 budget. Mr. J ones asked what have the other localities done on this. Mr. Taliaferro noted he was not aware what the others have done. Mayor Foley noted that this budget is based on the Authority continuing to use rail for their operation. Ideally we would hope that they will transition to trucks in the next year. Is that correct? Mr. Taliaferro noted that this is correct. William J ones motioned to approve the 2020-2021 annual budget for the Roanoke Valley Resource Authority. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders B.P roposed Tax Rates for F iscal Year 2020-2021 Hold a public hearing on the effective real estate tax for the fiscal year 2020-2021. Mr. Taliaferro noted the State C ode requires local governments to hold a public hearing for changes in real estate value if it is more than one percent between years. We are not proposing an increase in the tax rate, but because of changes in assessments the tax monies have increased by more than one percent so we are required to hold a public hearing. Mayor Foley noted for the public's information the calculated effective tax rate increase is 2.6% Mayor Foley opened the public hearing. T here was no response, and the public hearing was closed. C .Tax Rates Resolution Consider adoption of Resolution 1380, a resolution imposing taxes on real estate, tangible personal property, machinery and tools, and all legal subjects of taxation for City purposes including the property of railroad, express, telephone, telegraph, water, heat (gas), light and power companies. Audit - Finance C ommittee Mr. J ones noted the Audit Finance Committee met this morning to discuss this request. C hapter 8, Section 8.3 of the C ity Charter requires the C ity Council to annually lay a tax levy for the ensuing fiscal year on all property, real and personal, subject to taxation for city purposes. State law requires a public hearing be held when the assessment increase for real estate is in excess of 1 percent or a tax rate change is proposed in real estate, personal property or machinery and tools tax. T he 2020 reassessment increased the assessed value by more than 1%. T he proposed tax rate for real estate and improvements thereon is $1.20 per $100 of assessed value. A tax rate of $3.40 per $100 of assessed value is proposed for personal property and $3.20 per $100 of assessed value for machinery and tools. A public hearing was held on J une 8, 2020. T he Committee reviewed the request and recommends levying the tax rates for the 2020-2021 fiscal year per Resolution 1380. Mr. Martin noted that these tax rates are flat. T hese were previously approved as this was done in planning for the financial commitment to the high school. William J ones motioned to adopt Resolution 1380, a resolution imposing taxes on real estate, tangible personal property, machinery and tools, and all legal subjects of taxation for C ity purposes including the property of railroad, express, telephone, telegraph, water, heat (gas), light and power companies. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders D.P resentation of the Annual Budget for 2020-2021 Hold a public hearing on the proposed annual budget and consider an ordinance on first reading adopting the budget for fiscal year 2020-2021. A summary of the proposed budget was advertised in the Roanoke Times on May 22, 2020. Audit - Finance C ommittee Mr. J ones noted the Audit Finance C ommittee also discussed this request. T his time has been set aside for a public hearing on the proposed annual budget for fiscal year 2020-2021. T he proposed budget was presented to C ouncil on April 13, 2020 and advertised in T he Roanoke Times on May 22, 2020. A copy of the budget was made available to the public on the C ity website. T he C ouncil held a work session on the budget on J une 3, 2020. T he adoption of the F Y 2020-2021 budget is being requested to fulfill our legal requirement of adopting, and having a first and second reading of the adoption ordinance before J uly 1. Approval of the C ity budget is for informative and fiscal planning purposes only and does not actually commit or appropriate funds for expenditure. T he commitment of funds will not occur until the approval of the second reading of the F Y 2020-2021 appropriation ordinance. An ordinance is being presented on first reading for the adoption of the budget. T he C ommittee reviewed the request and recommends approving the ordinance on first reading adopting the fiscal year 2020-2021 budget. Mayor Foley opened the public hearing and asked if there was anyone present who would like to speak regarding the 2020-21 budget as proposed. T here was no response, and the public hearing was closed. C ouncil thanked Ms. J ordan and her staff and also, Mr. Taliaferro for the work that went into preparing the budget considering what has been going on the last few months. Mr. Taliaferro noted at the budget work session there was a question about the Salem Educational Foundation and their request. Staff has talked to them and they have $228,000 in the Salem Scholarship portion of their fund. In a good year they would be looking at approximately $13,000 in dividends. So their request was for $30,000 in administrative fees. During the discussion, we wanted to double check and see how C ouncil would like to approach this whether using dividends or taking $30,000 from the principal. He asked if C ouncil had a preference. T here was further discussion regarding how this should be handled. Mr. J ones asked if we could use some of this money to help those students who are dual enrolled at Virginia Western. Why don't we look at helping fund this while they are in high school. He believes that this might get more students to think about the technical or vocational aspect because the money would be there to help them. Ms. J ordan noted we have the $30,000 listed on our requests from the community service agencies, however, this is not funded at this point so there is no money toward that $30,000 in the budget. T here was additional discussion regarding this request, and it was decided that the Foundation would use the dividends as part of the request, and the C ity would fund the difference which would be approximately $17,000. Ms. J ordan noted that staff will present a final list of any budget changes prior to the next meeting so this would be incorporated for the second reading of the ordinance. William J ones motioned to adopt an ordinance on first reading adopting the budget for the 2020-2021 fiscal year. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders E.Budget Appropriation Ordinance Consider ordinance on first reading appropriating funds for the fiscal year 2020- 2021 budget. Audit - Finance Committee Mr. J ones noted the Audit Finance Committee also discussed this request. T he fiscal year 2020-2021 budget was presented to the C ity Council on April 13, 2020 and advertised in T he Roanoke Times on May 22, 2020. A copy of the proposed budget was made available on the City website http://www.salemva.gov/Departments/Finance. T he School’s budget is included in the overall City budget. In addition to adopting the annual budget, the local government must appropriate the funds. T his is the first reading of the ordinance to appropriate the funds for the FY2020-2021 budget. A second reading is scheduled for J une 22, 2020, following adoption of the budget. T he C ommittee reviewed the request and recommends approval of the ordinance on first reading appropriating funds for the fiscal year 2020-2021 budget. William J ones motioned to adopt an ordinance on first reading appropriating funds for the fiscal year 2020-2021 budget. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders F.Job Classes and P ay Ranges 2020-2021 Consider adoption of Resolution 1381, amending the schematic list of job classes and pay ranges previously set forth on J une 24, 2019, to be part of the 2020-2021 fiscal year budget. Audit - Finance Committee Mr. J ones noted the A udit Finance C ommittee also discussed this request. T he C ity annually approves the schematic list of job classes and the pay scale that is included in the budget. T he schematic list of job classes and pay ranges adopted by Resolution 1358 on J une 24, 2019, shall be amended and be a part of the 2020-2021 fiscal year budget. T he C ommittee reviewed the request and recommends adoption of Resolution 1381 for the C ity J ob Class List and Pay Scale for FY2020-2021. Mr. J ones noted that this list is basically about the same as last year except for those employees who have been promoted or had a change in their job classification because there are no pay raises in this budget. Mr. Martin noted to clarify there are no planned pay increases at this time. If they stay in the same job classification, their salary stays the same unless they are transferred into a new position which could potentially affect their pay range. William J ones motioned to adopt Resolution 1381 amending the schematic list of job classes and pay ranges previously set forth on J une 24, 2019, to be part of the 2020-2021 fiscal year budget. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders G.Abstract of Votes Receive the Abstract of Votes cast at the May 19, 2020, General Election. T he Abstract of Votes was received as presented. H.P ublic Comment P rocedures Consider the adoption of Resolution 1382 pertaining to procedures for public comment periods at Salem C ity Council meetings. Supplemental I tem Mayor Foley noted we have one supplemental item, 5H, which is pertains to public comment procedures at Salem City C ouncil meetings. Mr. Yost noted it will simply be a resolution to approve the written procedures for public comment sessions at City C ouncil meetings subject to the amendments discussed this evening. J ohn Saunders motioned to adopt Resolution 1382 pertaining to procedures for public comment periods at Salem C ity Council meetings subject to the amendments discussed at this meeting. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 6.C losed Session A.Closed Session Hold a closed session in accordance with the provisions of Section 2.2- 3711A(1), A(3), A(8) and A(29) of the 1950 Code of Virginia, as amended, for a discussion of personnel matter pertaining to the Assistant C ity Manager position; discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body; consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel, nothing in this subdivision shall be construed to permit the closure of a meeting merely because an attorney representing the public body is in attendance or is consulted on a matter; and discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body. Mr. Yost noted that there are actually three topics for the closed session this evening. T here will not be consultation with legal counsel as was stated on the agenda. He noted under the freedom of information act, the motion has to identify the applicable code exemption, the purpose of the closed meeting, and the subject matter of each item. T he first item is pursuant to Section 2.2-3711A(1), which typically we call a personnel matter or item, but the subject matter is to discuss and consider specific prospective candidates for the position of the Assistant C ity Manager. T he second item which we typically call real estate is actually the issue of disposition or potential sale of publicly held real property on East Main Street, Section 2.2-3711A(3), where the discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the C ity. T he properties we are talking about this evening are 508 and 516 East Main Street. T he third item is pursuant to Section 2.2-3711A(29), which is the discussion of an award of an amended public contract with 2 West Main Street LLC, the owner of the building commonly called the Ridenhour Building, involving the expenditure of public funds, and a discussion of the terms and scope of the amended agreement, where such discussion in an open session would adversely affect the bargaining position or negotiating strategy of the C ity. Vice Mayor J ohnson motioned to move to closed session at 7:18 p.m. in accordance with the provisions of Section 2.2-3711A(1) of the 1950 C ode of Virginia, as amended, for a discussion and consideration of specific prospective candidates for the position of the Assistant City Manager; Section 2.2-3711A(3) discussion or consideration of the disposition or potential sale of publicly held real property on East Main Street, specifically 508 and 516 East Main Street, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the C ity; and Section 2.2-3711A(29) for a discussion of an award of an amended public contract with 2 West Main Street LLC, the owner of the building commonly called the Ridenhour Building, involving the expenditure of public funds, and a discussion of the terms and scope of the amended agreement, where such discussion in an open session would adversely affect the bargaining position or negotiating strategy of the City. J ames Martin seconded the motion. Ayes: Saunders, Martin, J ones, J ohnson, Foley J ane J ohnson motioned to reconvene at 7:40 p.m. and that in accordance with Section 2.2-3712D of the C ode of Virginia, 1950 as amended to date, C ouncil hereby certifies that in C losed Session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the Closed Session was convened were heard, discussed, or considered by the Council. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 7.Adjournment Mayor Foley noted that C ouncil discussed three items in C losed Session, and they are taking action on one item. Mr. Yost noted that as he understands it C ouncil wishes to proceed with an amendment to the performance agreement between the C ity of Salem, City of Salem Economic Development Authority, and 2 West Main, LLC . William J ones motioned for the C ity enter into a amended performance agreement with 2 West Main, LLC, and the Salem Economic Development Authority that will increase the Economic Development Authority loan to 2 West Main, LLC , from 1.6 million dollars to 1.8 million dollars and to authorize the City Manager to execute such amended performance agreement, subject to approval by the C ity Attorney. J ane J ohnson seconded the motion. Ayes: Saunders, Martin, J ones, J ohnson, Foley T he meeting was adjourned at 7:48 p.m.