HomeMy WebLinkAbout11/19/2003 - Special
November 19, 2003
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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
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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.
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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
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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.
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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