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HomeMy WebLinkAbout11/19/2003 - Special November 19, 2003 1069 Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 November 19, 2003 The Board of Supervisors of Roanoke County, Virginia met this day atthe Noel C. Taylor Municipal Building, Room 159, 215 Church Avenue, Roanoke, Virginia, this being an adjourned meeting from November 18, 2003, for the purpose of a joint meeting with Roanoke City Council concerning the proposed Western Virginia Water Authority. IN RE: CALL TO ORDER Mayor Ralph Smith called the meeting to order for the City of Roanoke at 9:43 a.m. The roll call was taken. MEMBERS PRESENT: Mayor Ralph K. Smith, Council Members William D. Bestpitch, M. Rupert Cutler, Linda F. Wyatt MEMBERS ABSENT: Vice-MayorC. Nelson Harris, Council Members Beverly T. Fitzpatrick, Jr., Alfred T. Dowe, Jr. STAFF PRESENT: Darlene L. Burcham, City Manager; William M. Hackworth, City Attorney; George C. “Chip” Snead, Assistant City Manager for Operations; Mike McEvoy, Director of Utilities; Jesse Hall, Director of Finance; Mary F. Parker, City Clerk Acting Chairman Altizer called the meeting to order for the County of Roanoke at 9:44 a.m. The roll call was taken. MEMBERS PRESENT: Supervisors Michael W. Altizer, Joseph B. “Butch” Church, H. Odell “Fuzzy” Minnix MEMBERS ABSENT: Chairman Joseph P. McNamara, Vice-Chairman Richard C. Flora November 19, 2003 1070 STAFF PRESENT: Elmer C. Hodge, County Administrator; Paul M. Mahoney, County Attorney; John M. Chambliss, Assistant County Administrator; Dan O’Donnell, Assistant County Administrator; Gary Robertson, Director of Utilities; Teresa Hamilton Hall, Public Information Officer; Diane S. Childers, Clerk to the Board IN RE: OPENING CEREMONIES The invocation was given by Council Member William D. Bestpitch. IN RE: COMMENTS ON JOINT EFFORTS Mayor Smith advised that Roanoke City Council has selected two of their three appointees to the Western Virginia Water Authority. He stated that Darlene Burcham, City Manager, will serve as the staff appointee, and Rupert Cutler, City Council Member, will serve as the elected representative. Because the citizen representative must complete some requirements before the appointment can be confirmed, Mayor Smith advised that this appointment may be announced later in the day. Ms. Burcham stated that the work of the staffs continues to go very well, and all participants remain committed to a process that is inclusive in terms of having employees of both organizations working on various committees. She stated that they also remain true to the principles initially established which focus on determining the best way to provide water and wastewater services to residents. She commended Mike McEvoy and Gary Robertson for the leadership they have demonstrated. November 19, 2003 1071 Mr. Hodge advised that he continues to be amazed at how well things are going, and indicated that staff has overcome all the challenges that have been encountered. He stated that the staffs have provided excellent reports and alternatives to challenges that have been encountered. He commended the employees and staff working on the teams. IN RE: UPDATE ON ASSET REVIEW AND UTILITY RATES Mr. Robertson stated that the asset evaluation and draft rate study have been received. He noted that some revisions need to be made, and advised that concrete information should be available within the next 30 days. Mr. McEvoy stated that the consulting firm has done a good job with the first draft and he advised that a substantial amount of detailed information had been submitted and needs to be reviewed. He stated that staff will be reviewing the information to verify that the assumptions made by Black and Veatch are accurate. Mr. Robertson indicated that the final report will project a 10 year horizon, and he noted that this information will be beneficial to both Roanoke City and Roanoke County. He stated that in preparing the report, water lines were examined to determine dates of installation, size of the lines, replacement value, and depreciation. Ms. Burcham stated that originally staff had hoped to present the information contained in the report to City Council and the Board of Supervisors at today’s meeting; however, they are still actively engaged in reviewing the reports. She November 19, 2003 1072 stated that an additional joint meeting will need to be held in December to present this information. In response to an inquiry from Council Member Cutler, Mr. Robertson indicated that staff provided Black and Veatch with the list of guiding principles which were adopted by Roanoke County and Roanoke City for use in preparing the draft rate study and asset evaluation. One of these principles was the eventual equalization of rates. When Council Member Cutler questioned what the draft recommendations were, Mr. Robertson indicated that these recommendations will change because some information was left out of the original report. Council Member Cutler asked that with regard to the asset evaluation, does the report include the water and sewer lines right up to people’s homes, or is there a cutoff point. Mr. McEvoy advised that Roanoke City maintains everything up to the right-of-way of the property line which would include some service laterals and the main line. He noted that there is also a section from the property line back to the house that is privately maintained by the homeowner and is not included in the study. Mr. Hodge elaborated on Mr. Robertson’s earlier comments and advised that while trying to standardize the rates, Roanoke County is also going through a change in their rate structure. He stated that the County currently uses a step process. He noted that this method is outdated and the County wishes to modify this structure; therefore, it is taking additional time to complete this conversion. November 19, 2003 1073 Council Member Cutler questioned if there was an incentive built into the rate structure to conserve water. Mr. Hodge advised that staff will need the guidance of the Board of Supervisors and City Council regarding this philosophy. He advised that Roanoke County feels that conservation is important. Mr. Robertson advised that Roanoke City’s conservation rate is based on a volume charge, and Roanoke County’s is built into the step process whereby the base rate increases as the volume used increases. Council Member Cutler advised that he would support building conservation incentives into the rate structure. In response to an inquiry from Mayor Smith, Mr. Robertson advised that staff anticipates having final information available for review by early December. IN RE: OTHER REPORTS Attorneys’ Report: Mr. Hackworth advised that staff plans to bring a concurrent resolution to both governing bodies in mid-December 2003 that would adopt the articles of incorporation of the Authority. A public hearing will need to be held, and both governing bodies will have to review and act on the concurrent resolution. Once this has been accomplished, the articles of incorporation can be submitted to the State Corporation Commission (SCC). The timeline indicates that an operating agreement will be brought to both governing bodies in mid-January, and Mr. Hackworth indicated that a lot of work remains to be done to accomplish this objective. He stated that he and Mr. Mahoney have devised a three-page list of issues that must be resolved for inclusion in the operating agreement. He recommended that the pace of the meetings November 19, 2003 1074 be accelerated in order to meet this mid-January date, which he indicated is an optimistic schedule. In response to an inquiry from Council Member Cutler, Mr. Hackworth advised that some of the issues to be resolved with regard to the operating agreement include the following: how the Authority will be structured and operated, which assets will be contributed to the Authority by each locality (both real and personal property), how accounts receivable will be handled (i.e., outstanding water and sewer bills), assumption of water and sewer debt, liabilities of the water and sewer systems and the extent to which these will be passed on to the Authority, establishment of the Authority budget and fiscal year, establishment of rates, personnel and employee benefits issues, fleet management issues, how meter reading will be handled, etc. Council Member Bestpitch inquired if it is the intention to maintain all current payment options for customers. Mr. Hall advised that the goal is to keep payment convenient for customers, and it is a safe assumption that current practices will be maintained. Mayor Smith asked Mr. Mahoney to brief the City Council and Board of Supervisors on the method of transitioning from Board and Council control to full control by the Authority Board. Mr. Mahoney advised that the goal of both staffs is a July 1, 2004 implementation of the new Authority. He stated that there will be a four or five month period during which dual systems will be operating. In January 2004, both localities will hold a public hearing at which time each governing body, by concurrent November 19, 2003 1075 resolution, will adopt the articles of incorporation. This will then be sent to the SCC and it is anticipated that the approval will essentially be a pro forma matter, although there are several issues that may require additional review and Mr. Mahoney advised that he is currently attempting to resolve these issues. It is anticipated that approval by the SCC will be received in February 2004 along with a charter. At this time, the Authority becomes legally operable. The Authority Board members will then need to establish the following, pursuant to the provisions in the State Code: budget and rates; adoption of policies, procedures, and bylaws; and selection of key officials. He further advised that from February – June 2004, the Board of Supervisors and City Council will be functioning alongside the Authority Board. It is anticipated that as of July 1, 2004, there will be a transition to full operation by the Authority Board. Supervisor Minnix stated that he had numerous questions such as where and how often the Authority Board will meet, where they will obtain staff to assist in operations, how their billing will function, etc. Mr. Robertson advised that there are approximately 20 teams currently meeting and researching many of these issues and providing information to a steering committee. The steering committee will then provide this information to the Board of Supervisors and City Council, as well as the Authority Board. Supervisor Altizer stated that the Authority Board members appointed at today’s meeting will become a part of the staff negotiating teams and will be involved in the review process, enabling them to learn more of the details of the inner workings of November 19, 2003 1076 the transition. The Authority Board members can then relay this information back to the Board of Supervisors and City Council. Ms. Burcham concurred with Supervisor Altizer, and stated that the first issue to be addressed is identifying the seven members of the Authority Board. She stated that it is hoped that the initial six members will convene in the near future for the th purpose of selecting the 7 member to be ratified by the City Council and Board of Supervisors. Once the seven Authority Board members are identified, staff will concurrently brief both groups to ensure that they are kept updated on progress, as well as allowing both bodies input into the issues to be addressed and decisions to be made. Many of the decisions will need to be reviewed by both bodies, and a very aggressive schedule will need to be followed by the new Authority Board from February – May 2004. Supervisor Altizer indicated that it is critical to involve the Authority Board in the process as quickly as possible. Mr. Hodge advised that representatives from Roanoke County and Roanoke City have discussed this issue, and they would like to hold the first Authority Board meeting immediately following today’s joint meeting. At that time, a calendar for future meetings can be discussed. Mr. Mahoney and Mr. Hackworth indicated that it would not present any legal issues to hold the meeting today. Mr. Hodge further advised that he would like to continue to involve the citizens in the process and invite their suggestions. He indicated that additional educational meetings should be scheduled to keep citizens informed. November 19, 2003 1077 Council Member Cutler stated that the new Authority Board will need to brief the sixth and seventh members once they have been appointed. In addition, he questioned if the Authority Board would be meeting in an unofficial capacity until July 1, 2004. Mr. Hackworth responded that the meetings will be unofficial until the SCC approves the articles of incorporation. Council Member Cutler also recommended that informational meetings for the citizens be held with the various civic leagues which hold standing organizational meetings in order to improve attendance at the meetings. Council Member Wyatt stated that she agrees with this idea in theory; but if additional meetings with all the civic leagues are scheduled, the investment of time necessary to attend these meetings may impede the ability to move forward with the formation of the Authority. She suggested prioritizing the issues that need to be accomplished. Council Member Bestpitch recommended sending information to these organizations offering to do a presentation if requested. He advised that the President’s Council in Roanoke City meets monthly and they could assist in conveying information back to the various civic groups. Ms. Burcham stated that once answers to some of the pending questions are received and publicized, it will generate greater citizen interest and possibly attendance at future informational meetings. Finance Report: Mr. Hall advised that the focus recently has been on providing information to the consultants regarding the rate study report and subsequently reviewing the draft report to ensure that the data was interpreted correctly. He further stated that Roanoke City and Roanoke County have closed on Virginia November 19, 2003 1078 Resource Authority (VRA) bonds to finance the upgrade to the wastewater treatment plant. He indicated that Roanoke City refinanced part of the wastewater treatment bonds earlier this year in order to take advantage of lower interest rates, and noted that they are general obligation debt which will be transferred to the Water Authority. He advised that Diane Hyatt, Chief Financial Officer for Roanoke County, is absent today in order to handle the closing on VRA bonds which will refinance the County’s revenue bonds. The revenue bonds contained restrictive rate covenants that, once refinanced, will be removed and thereby allow the debt to be transferred to the Authority. Mr. Hall also stated that there is a lot of activity occurring in the team meetings and many of the recommendations that have been established now need to be implemented. IN RE: DESIGNATION OF CITY/COUNTY MEMBERS TO THE WESTERN VIRGINIA WATER AUTHORITY Supervisor Church moved to appoint the following individuals to serve as Roanoke County’s representatives on the Western Virginia Water Authority Board: H. Odell “Fuzzy” Minnix, citizen representative to serve a four-year term; Elmer C. Hodge, County Administrator, to serve a three-year term; and Michael W. Altizer, Board Member, to serve a two-year term. The motion carried by the following recorded vote: AYES: Supervisors Church, Minnix, Altizer NAYS: None ABSENT: Supervisors Flora, McNamara November 19, 2003 1079 Council Member Bestpitch moved to appoint the following individuals to serve as Roanoke City’s representatives on the Western Virginia Water Authority Board: Darlene L. Burcham, City Manager, to serve a three-year term; M. Rupert Cutler, Council Member, to serve a two-year term. He advised that the third appointment of a citizen representative is to be designated as soon as possible. The motion was seconded by Council Member Wyatt. The motion carried by the following recorded vote: AYES: Council Members Cutler, Wyatt, Bestpitch, Smith NAYS: None ABSENT: Council Members Dowe, Fitzpatrick, Harris IN RE: COMMENTS AND QUESTIONS BY CITY COUNCIL AND THE BOARD OF SUPERVISORS Supervisor Church stated that we are on the threshold of one of the most important issues facing the Roanoke Valley, and indicated that we should not overlook any areas to be considered. He advised that the questions from citizens will begin to be more focused and they will become more involved as the implementation process continues. He thanked his colleagues on the Board of Supervisors and City Council, as well as the staffs, for their efforts in this regard. Council Member Bestpitch stated that the rate structure should include incentives for conservation. He also voiced his pride in the staff for their work which has brought the project to this point. He expressed thanks to the citizens and stated that November 19, 2003 1080 much of the credit for the success of the project goes to them for their support of this concept. He stated that he hopes this is an indication of the kinds of cooperation that can be reached on a broad array of services for the entire Roanoke Valley (i.e., libraries and parks and recreation). He emphasized the need to continue to look for ways to find efficiencies in government. Council Member Wyatt noted that the draft rate study report comes at the expense of a lot of hard work, and she commended the teams that have worked so hard in providing the necessary information. She requested that the Board of Supervisors and City Council send letters to each of the individuals serving on the teams expressing appreciation for their hard work. Supervisor Altizer stated that there is a lot of work to be done and the timelines are critical. If additional time is required to do the job right, then it will be necessary to take the extra time to make sure that the Board and Council have all the pertinent information. He noted that Roanoke City and Roanoke County have become an example of cooperation for other localities, and this Authority will establish a path to further the boundaries of regional cooperation to a higher extent with surrounding areas such as Botetourt County, Montgomery County, and the Town of Christiansburg. He stated that these areas are looking at the Roanoke Valley for an example of what can be accomplished through regional cooperation. He indicated that the responsibility lies with Roanoke County, Roanoke City, the Town of Vinton, and the City of Salem to come November 19, 2003 1081 together on as many issues as possible and once this is accomplished, it will break down barriers and thus expand regional cooperation efforts beyond this area. IN RE: CLOSING REMARKS Mayor Smith emphasized the need to communicate with citizens regarding what is being done with regard to the implementation of the Authority and any proposed changes in services. IN RE: ADJOURNMENT Mayor Smith recessed the Roanoke City Council meeting at 10:41 a.m. until Friday, November 21, 2003 at 8:30 a.m. at the Roanoke Higher Education Center for a joint meeting of the Council and Roanoke City School Board. Acting Chairman Altizer adjourned the Roanoke County Board of Supervisors meeting at 10:41 a.m. until the December 2, 2003 Board meeting at 3:00 p.m. Submitted by: Approved by: ________________________ ________________________ Diane S. Childers Michael W. Altizer Clerk to the Board Acting Chairman November 19, 2003 1082 This page intentionally left blank.