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HomeMy WebLinkAbout5/26/2020 - City Council - Minutes - Regular Item 3A June 8, 2020 UNAPPROVED MINUTES CITY COUNCIL WORK SESSION May 26, 2020 A work session of the Council of the City of Salem, Virginia, was held at South Salem Elementary, 1600 Carolyn Road, Salem, Virginia, on May 26, 2020, at 7:00 p.m., there being present all the members of said Council, to wit: Byron Randolph Foley, Jane W. Johnson, William D. Jones, James A. Martin, and John E. Saunders; with Byron Randolph Foley, Mayor, presiding; together with James E. Taliaferro, II, City Manager; Rosemarie B. Jordan, Director of Finance (participated remotely); Judy Hough, Deputy City Clerk (participated remotely); Mike Stevens, Communications Director (participated remotely); Crystal L. Williams, Assistant to the City Manager (participated remotely); Dan Miles, CEO, Roanoke Valley Resource Authority (participated remotely); and the following business was transacted: Mayor Foley reported that this date, place, and time had been set in order for the Council to hold a work session; and WHEREAS, Mr. Miles gave Council an update on the Roanoke Valley Resource Authority 2020-21 reserve funds and budget; and WHEREAS, there were no other topics for discussion. There being no further business to come before the Council, the work session was adjourned at 7:23 p.m. ____________________________________ Mayor _____________________________________ Clerk of Council City Council Meeting MINUTES Tuesday, May 26, 2020, 7:30 PM South Salem Elementary School, Cafeteria, 1600 Carolyn Road, Salem, Virginia 24153 1.Call to Order A regular meeting of the Council of the City of Salem, Virginia, was called to order at 7:30 p.m., there being present all the members to wit: Byron Randolph Foley, Mayor, Jane W. Johnson, Vice-Mayor, Council members: William D. Jones; James A. Martin, and John E. Saunders; with Byron Randolph Foley, Mayor, presiding; together with James E. Taliaferro, II, City Manager (participated remotely); Rosemarie B. Jordan, Director of Finance (participated remotely); Mike Stevens, Communications Director (participated remotely); Judy L. Hough, Deputy City Clerk (participated remotely); Crystal L. Williams, Assistant to the City Manager (participated remotely); and Clark Ruhland, Communications Specialist. DUE TO AN EQUIPMENT MALFUNCTION, THESE MINUTES WERE PREPARED WITHOUT THE USE OF AN AUDIO RECORDING. 2.Pledge of Allegiance 3.Consent Agenda A.Remote Participation Statements Consider the approval of remote participation statements from Council members who wish to participate remotely for this meeting. No statements were needed at this meeting. B.Minutes Consider the acceptance of the minutes from the May 11, 2020, regular meeting. Accepted as amended C.Financial Reports Consider the acceptance of the Statement of Revenues and Expenditures for the ten months ending April 2020. Received Item # 3ADate: June 8, 2020 4.Old Business A.Amendment to City Code Consider ordinance on second reading amending Chapter 2 Administration, Article II, Sections 2-36 and 2-56 of T he Code of the City of Salem, Virginia pertaining to regular meetings of City C ouncil (Approved as amended at the May 11, 2020, meeting). J ane J ohnson motioned to adopt an ordinance on second reading amending C hapter 2 Administration, Article II, Sections 2-36 and 2-56 of the C ode of the C ity of Salem pertaining to regular meetings of C ity Council as amended at the May 11, 2020, meeting. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 5.New Business A.Amendment to City Code Consider ordinance on first 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. (Resolution of Support #1364 was adopted on September 9, 2019.) Mr. Yost discussed the amendment to the C ity Code regarding implementing a local hospital provider assessment in the City. He noted the purpose of the ordinance is to enact a local hospital provider assessment to assess a fee on the nonpublic hospital in the City (Lewis Gale Medical C enter) to fund the nonfederal share of the Medicaid supplemental payment programs authorized in Medicaid State Plan Amendments 11-018 and 11-019. LewisGale worked with three other Virginia hospital systems (Ballard Health, C ommunity Health Systems and Lifepoint Hospitals) to pursue a budget amendment at the General Assembly to allow the Virginia Department of Medicaid Services (D MA S) to receive the funds generated by the participating the localities. T he General Assembly adopted the budget amendment, which was not amended by the Governor, so the program can now move forward. He stated that C ity Council had passed a Resolution of Support #1364 on September 9, 2019, supporting the adoption of the ordinance which is before C ouncil this evening. He further explained how the local hospital provider assessment would work. Mr. Lance J ones, Market President of Lewis Gale Regional Health System, who was participating remotely, noted that Mr. Yost gave a very good synopsis of the background information and also how the assessment would work. He noted he would be glad to answer any questions that C ouncil might have. William J ones motioned to adopt an ordinance on first 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 ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders B.Amendment to City Code Consider ordinance on first 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. Mr. Taliaferro noted before Council this evening is a code change related to water and sewer disposal charges. T here is a discrepancy between the City C ode for the sewer connection availability fee for a 1 1/2" water meter, and the amount that Utility Collections has been charging customers. At one point, we had discussed changing this to $3,500; however, it was never instituted so this bring the code in line with what we currently are charging for the sewer connection availability fee for a 1 1/2" water meter. J ames Martin motioned to adopt an ordinance on first reading amending Chapter 90, Article III Water and Sewage Disposal, Division 3, Section 90-128(a) of T he Code of the C ity of Salem, Virginia pertaining to water and sewer disposal charges in general. William J ones seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders C .Amendment to City Code Consider an ordinance on first reading amending Chapter 1, Section 1-13, of T he Code of the City of Salem, Virginia, pertaining to Courthouse Security Assessment. Mr. Taliaferro noted before Council is an ordinance amendment to Chapter 1, Section 1-13 of the C ity Code related to C ourthouse Security Assessment charge. T he proposed change is from $10 to 20. T hese funds are appropriated to the Sheriff's Office to assist in funding the Courthouse personnel. J ohn Saunders motioned to adopt an ordinance on first 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 ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders D.Resolution - Roanoke Regional Airport Commission Consider the adoption of Resolution 1378 for the City of Salem to join the Roanoke Regional Airport Commission as a participating political subdivision of the Commission and to enter into an Amended and Restated Contract with the C ity of Roanoke, the C ounty of Roanoke, and the Roanoke Regional Airport Commission. Mr. Yost discussed Resolution 1378 regarding the C ity joining the Roanoke Regional Airport C ommission as a participating political subdivision of the C ommission. He noted the 1986 Session of the General Assembly enacted the Roanoke Regional Airport C ommission Act. T he Act has been amended two times, once in 1996 and again in 2005. Roanoke C ity and the C ounty entered into a C ontract with the Commission dated J anuary 28, 1987 (the "Original Contract") pursuant to which the parties provided that participating poliitical subdivisions would make payments to the Commission and the participating political subdivisions agreed that both Roanoke and Roanoke County on entering such service contract with the C ommission were empowered under §26 of the Act to do everything necessary or proper to carry out and perform such contracts. Roanoke, the C ounty and the C ommission have operated under the Original C ontract to provide the airport, on a continuous basis through the present date. No participating political subdivision has paid or been requested to make any payment to the C ommission since 1996. Roanoke and the C ounty have invited the C ity of Salem to become a member of the C ommission, and Salem desires to become a member of the C ommission as permitted under the Act. Further, pursuant to Sections 4 and 5 of the Act, Roanoke, the C ommission and the County have agreed upon the form of an Amended and Restated Contract (the “Amended and Restated C ontract”) between Roanoke, the County, the C ommission and the City of Salem, Virginia, for the purpose of admitting the City of Salem, Virginia, as a participating political subdivision of the Commission and setting forth the financial responsibility to be made by each participating political subdivision to the C ommission and other terms and conditions of participation. T here was further discussion regarding the City joining the Roanoke Regional Airport Commission, and it was noted that the City of Salem will be entitled to appoint one C ommissioner of the Commission. William J ones motioned to adopt Resolution 1378 authorizing the C ity of Salem to join the Roanoke Regional Airport Commission as a participating political subdivision of the Commission and to enter into an Amended and Restated Contract with the City of Roanoke, the County of Roanoke, and the Roanoke Regional Airport Commission. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders E.Resolution of Support - Western Virginia Regional I ndustrial F acilities Authority Consider the adoption of Resolution 1379 authorizing the C ity of Salem refunding general obligation support of a refinancing by the Western Virginia Regional Industrial Facility Authority. Mr. Taliaferro noted before Council is Resolution 1379 which authorizes the City refunding general obligation support of a refinancing by the Western Virginia Regional Industrial Facility Authority. T he Western Virginia Regional Industrial Facility Authority (the “Authority”) is a political subdivision of the C ommonwealth of Virginia duly created pursuant to the Virginia Regional Industrial Facilities Act, C hapter 64 of Title 15.2 of the Code of Virginia of 1950, as amended (the “Act”). T he Act authorizes the Authority to borrow money to pay the costs of real estate and facilities for manufacturing, warehousing, distribution, office or other commercial purposes in order to promote economic development in the geographical area served by the Authority, to accept funds from counties, cities and towns and use the same for Authority purposes, to make loans and to enter into contracts of any kind to accomplish the purposes of the Authority, and the Act further authorizes the Authority to issue bonds to refund any of its bonds then outstanding. On or about October 14, 2016 the Authority issued its $10,000,000 Revenue Bond, Series 2016 (the “2016 Bond”) to finance the acquisition of interests in land and related improvements and facilities. T he City of Salem, the C ity of Roanoke, and the C ounty of Roanoke each agreed in 2016 to provide financial support for the Project, which is known as the Woodhaven Road project. T he Authority desires to refund and refinance the 2016 Bond in order to achieve debt service savings and reduce payments made by the Participants in support of the Project, and the Authority has determined to issue pursuant to the terms of a Bond Purchase and Loan Agreement, dated as of J une 15, 2020. T here was further discussion regarding Resolution of Support 1379 and the cost savings to the C ity with this refinancing of the 2016 Bond. J ane J ohnson motioned to adopt Resolution 1379 authorizing the City of Salem refunding general obligation support of a refinancing by the Western Virginia Regional Industrial Facility Authority. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders F.Ultimate Shine Car Wash P roject Consider setting bond for erosion and sediment control and physical improvements for Ultimate Shine Car Wash project to be located at 1607 East Main Street. Audit - Finance Committee Mr. J ones noted the Audit Finance Committee met this evening at 6:45 pm to discuss this request. T he Committee reviewed the estimate for erosion and sediment control and physical improvements for the Ultimate Shine C ar Wash project to be located at 1607 East Main Street. T he C ommittee concurs with the C ity Engineer’s office recommendation that bond be set in the amount of $46,646 and a time frame for completion set at twelve (12) months. Mr. VanAllman briefly discussed the proposed Ultimate Shine C ar Wash project which will be located at 1607 East Main Street near Route 419. He noted this is the location of the convenience store which was torn down some years ago. William J ones motioned to approve the bond for erosion and sediment control and physical improvements for the Ultimate Shine C ar Wash project to located at 1607 East Main Street in the amount of $46,646 and a completion time of twelve (12) months. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders G.Appropriation of F unds Consider request to amend School Operating, Grant and Cafeteria Fund budgets as approved by the School Board on April 14, 2020. Audit - Finance Committee Mr. J ones noted the Audit Finance also discussed this request. T he School Operating, Grant and Cafeteria Fund budgets were amended for fiscal year 2019- 2020 by the School Board at their meeting on April 14, 2020. T he Board amended the Operating Fund to increase revenues and expenditures by $421,863. T he Grants Fund budget was amended to increase revenues and expenditures by $42,370 and the C afeteria Fund budget was amended to increase revenues and expenditures by $6,545. T he Committee reviewed the request and recommends appropriating $421,863 to the Operating Fund, $42,370 to the Grants Fund, and $6,545 to the C afeteria Fund budgets. William J ones motioned to approve the School Division budget amendments of $421,863 to the School Operating Fund, $42,370 to the Grants Fund, and $6,545 to the C afeteria Fund as amended by the School Board at their meeting on April 14, 2020. J ames Martin seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders H.Real E state and P ersonal P roperty Taxes E mergency Ordinance Consider the adoption of an ordinance on emergency basis to delay penalty and interest on Real Estate and Personal Property Taxes due on J une 30, 2020, until August 1, 2020, as a result of the pandemic disaster. Supplemental I tem Mr. Yost discussed the proposed emergency ordinance related to a delay of penalty and interest on Real Estate and Personal Property taxes as a result of the pandemic disaster. It is anticipated that many taxpayers will encounter difficulty in timely paying all categories of tangible personal property and real estate taxes on or before the current due date of J une 30, 2020. T he current C ode of the C ity of Salem provides for a penalty of ten percent (10%) and interest at the rate of ten percent (10%) per annum for delinquent payment of such taxes. In order to assist taxpayers and citizens in paying such taxes without penalty and interest, the City desires to institute a zero percent (0%) penalty and a zero percent (0%) interest on the payment of such taxes after J une 30, 2020, but before August 1, 2020. T he ordinance will be effective upon adoption and remain effective through J uly 31, 2020, and expire on August 1, 2020, without any further action by C ouncil. William J ones motioned to adopt an ordinance on emergency basis to delay penalty and interest on Real Estate and Personal Property Taxes due on J une 30, 2020, until August 1, 2020, as a result of the pandemic disaster. J ane J ohnson seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders I.Appropriation of F unds - TAP L oan P rogram Consider the request to approve a loan to the Economic Development Authority (ED A) to allow the ED A to participate in the TA P Loan Program to provide small loans to businesses affected by T HE C O VID-19 pandemic. Supplemental I tem Mr. Taliaferro noted that City staff is requesting C ouncil to approve a loan to the Economic Development Authority (ED A) to allow the ED A to participate in the loan program that is sponsored and managed by TA P. T he funds for this loan will be used to assist small businesses that have been affected by recent business closings due to C O VID-19. T his loan will be in the amount of $66,000. In addition, TA P will put up funds to supplement this amount so that the total loan pool will be $99,000. Additionally, the City will appropriate $5,000 from the General Fund for payment of administrative fees to TA P for running the loan program. J ane J ohnson motioned to approve the loan to the Economic Development Authority (ED A) in the amount to $66,000 to allow participation in the TA P loan program. J ohn Saunders seconded the motion. Ayes: Foley, J ohnson, J ones, Martin, Saunders 6.Adjournment T he meeting was adjourned at 8:17 p.m.