HomeMy WebLinkAbout12/4/2012 - Regular MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT TOO P.M.
ON TUESDAY, DEC EMBER 4, 2012, IN THE COUNCIL CHAMBERS OF THE VINTON
MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA.
MEMBERS PRESENT.- Bradley E. Grose, Mayor
William W. Nance, Vice Mayor
1. Douglas Adams, Jr.
Robert R. Altice
Matthew S. Hare
STAFF PRESENT: Christopher S. Lawrence,Town Manager
Susan N. Johnson, Town Clerk
Barry Thompson, Finance Director/Treasurer
Ryan Spitzer, Assistant to the Town Manager
Gary Woodson, Public Works Director
Joey Hiner,Assistant Public Works Director
The Mayor called the regular meeting to order at 7:00 Roll Call
p.m. The Town Clerk called the roll with Council Member
Adams, Council Member Altice, Council Member Hare and
Mayor Grose present. After a Moment of Silence, Mr.
Hare led the Pledge of Allegiance to the U.S. Flag.
Debbie Pifts, Executive Director, Virginia Recreation
Facilities Authority, gave a brief presentation concerning
the Authority's legislative agenda. The VRFA is exploring
the possibility of legislation to change the status of Explore
Park from a non-state agency to an agency under the
management and control of the VRFA and to request
funding in the amount of$300,000. There will probably not
be funding available for non-state agencies again next year
and they would like a clarification of their status which could
make a difference in their funding request. The Town
Manager commented that we do not have our own
legislative package, but will include it in any joint packages
with do with other partner agencies.
The next item on the agenda was citizens' comments
and petitions. Carolyn Fidler commented that she is also
a member of the Virginia Recreation Facilities Authority
and encouraged Council to support the legislative
agenda.
Vice Mayor Nance arrived at the meeting at 710 pm.
The next item on the agenda was the presentation of
the June 30, 2012 Comprehensive Annual Financial Report
by Brown Edwards&Company, LLP and consider adoption
of a Resolution approving and accepting said Report.
Barry Thompson, Finance Director/Treasurer, made brief
comments before introducing John Aldridge of Brown
Edwards,
Mr. Aldridge made brief comments on the report, referring
specifically to page 1 which issued a clean opinion on the
financial report, and page 3 which is the Management's
Discussion and Analysis. He also commented on other
significant parts of the audit report and the Mayor asked
how we were able to have $200,000 more in the utility fund
this year. The response was that we had a full-year impact
on the rate increase that was put in place in April of 2011.
Mr. Aldridge then commented on the Financial Analysis
Report as well as the Report on Comments and
Suggestions and Required Communications. After Adopted Resolution No. 199
comments byCouncil, Vice Mayer Nance made a motion to accepting the June 30, 2012
adopt the Resolution as presented; the motion was Comprehensive Annual Financial
seconded by Mr. Altice and carded by the following roll call Report
vote, with all members voting: Vote -t Yeas(5)—Adams;
Altice, Aare, Nance,Grose Nays(0)—alone.
The Town Manager commented that Lijah Robinson
played a significant part in completing the audit. Mr.
Thompson indicated that he took over most of the duties,
prepared all the working papers, the transmittals to the
APA, worked with the auditor and reduced the Town's cost
by seven percent;
The next item on the agenda was to consider
approving Monday, December 31, 2012, as an employee
holiday. The Town Manager made brief comments
concerning the request of the extra holiday and referred to
other localities that have already granted this extra day.
He indicated that they would discuss with the refuse crew
about either collecting on Monday and receiving holiday
pay or rescheduling the collection for Wednesday..
Mice Mayor dance made comments about the refuse
collection being delayed and making reasonable efforts to
advise the citizens. A decision will be made tomorrow and
the Town Manager will advise Council. Mr. Aare made a Approved Monday, December 31,
motion to approve the extra holiday, the motion was 2012, as an employee holiday
seconded by Mr. Adams and carried by the fallowing vote,
with all members voting: Vote -0, Yeas (5) — Adams,
Altice, Flare, Nance, Grose;Nays (0)—None.
The Town Manager advised Council that a Regional
Pound Agreement will be placed on Council's December
18, 2012 agenda for consideration. The other three
localities will be considering the same Agreement at their
upcoming meetings. He also reminded Council of the
Employee Christmas luncheon on December 11`h at
11.30 am at the War Memorial.
e Mayor reminded everyone of the Christmas
Parade at 7:0 p.m. on December 5tn and the Chamber
Open House on December 11`h
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The Mayor then advised Council that Roanoke County
has indicated they would match a $5,000 donation from
the Town toward the principal that is still owed on the
Veteran's Monument. Along with some other monies
that the Committee has, this would bring the balance
clown to around $4,000 and the goal is to try and pay the
note off before it becomes due in February. This money
would go toward the principal and not be set aside for
maintenance as had been discussed earlier. The
Committee has also released another 140 bricks to try
and raise funds for future maintenance. The Mayor
would life this item placed on the next agenda to
consider making the $5,000 donation toward the principal
balance owed on the Monument.
r. Hare commented that the Finance Committee met-
and reviewed the audit report and then met with Kevin
Kipp, the War Memorial Manager, Mr. Kipp briefed the
Committee on his marketing plan and his strategy and
has an understanding of Council's concerns. He has set
a timetable to report back with more detailed reports.
Vice Mayor Nance indicated that this first meeting was
more philosophical in nature than number crunching and
Mr. Kipp acids a new dimension to this position. He will
be meeting with the Finance Committee each month. Mr:
Hare then indicated that the Committee will review the
October and November financial reports next month.
r, Hare then commented regarding the SPCA and
the Shelter. He supports proper treatment of animals
that procedures are in place and animals are finding
homes, receiving the care they need and when they are
lost are being returned to the owners.: However, he has
concerns about the speed of which the current process is
happening with no public discourse. Because we are
using public funds and it is a public service, we coo not
need to rush it. There are citizens with legitimate
concerns and if we rush this process, they may find that
they do not get what they need or want. He would hope
that the local governments involved would step up and
realize that we need to think about this before we rush it.
e need to have a public hearing or a work session on
the matter before we take action. The Town Manager
commented that we do have a lot of professionals
involved in this process working toward the same
common goal and it is complicated when you have to pull
four localities together. However, he feels Mr. Hare's
comments are well said.
The Town Manager reminded Council that the two
financial reports will be on the second meeting in
January, :Also, Mr. Kipp will make a presentation on the
War Memorial during a work session at the December
13sh Council meeting. The Mayor indicated that he has
been anxious for something to happen at the SPCA and
he has confidence that the managers will come up with
workable solutions and that the legal part will be fair and
equitable. He feels that one of the major issues is more
neutering and spaying.
Vice Mayor Nance moved that the meeting be
adjourned, the motion was seconded by Mr. bare and
carried by the following vote, with all members voting: Vote
- a Yeas ( ) -- Adams, Altice, Hare, Nance, Grose Nays
(0) — None. The regular meeting was adjourned at 8:06
.m.
The Work Session began at 8:23 p.m. The Town
Manager commented that the purpose of the work
session is to further review the Cast of Service
Study/Water and Wastewater Rates that was prepared
during Mike Kennedy's tenure. He then introduced
Courtney Rogers with Davenport & Company who has
evaluated the study and will make a presentation based
on his evaluation. He would life to get some feedback
from Council as to what direction they would like to go
and he will make a final report back after the first of the
year. The Town needs a capital improvement fund for
the future and this represents a model to create that CIP
fund over a five year period.
Mr. Rogers introduced himself and then began reviewing
the power point presentation that was furnished to
Council with the agenda package. He began by stating
the purpose of the study is to create revenue increases in
the water and sewer enterprise fund necessary to provide
for growing expenditures and capital spending of $17
million through FY2017. He commented on the Town's
last rate increase in March of 2011 and the current utility
fund balance of just over $100,000. The objective is to
snake the enterprise fund self-supporting so that everyone
using it pays for i .
r. Rogers continued by reviewing guidelines to set up a
rate structure which include having at least gg days of
operating expenditures in the fund with a long term goer
of 180 days; targeting net revenues after operational
expenditures to be at least 1.30x debt service
requirements; and working to fund all capital projects of
$100,000 or less with enterprise fund equity. -A history of
rate increases, revenues and expenditures and fund
balance was also reviewed. Mr. Rogers commented
that spreading the increases out over a period of several
years is easier for the citizens to handle rather than a
large increase in one year. Regarding the existing debt
service structure, it shows the Town has $ .4 million o
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self-supporting utility debt outstanding. It is projected to
be essentially flat from 2015 to 2024 with all debt being
paid tiff in 15-years.
The key assumptions of the model is consistent average
consumption patterns; total operational expenditures will
grow approximately 3.6% over a five year period and the
SIP totals $17 million to FY2017 funded with 69% bonds,
8% from WVWA and 3% equity:
Three scenarios were then offered and explained.
Scenario 1 would be revenue growth to Band operations
only, no reserve build up/no CIP. For this scenario it
would take about a 1% increase each year just to cover
operations. Scenario 2 would fund operations and
reserve build up, but no CIP In order to fund some
capital in this scenario, it would take about °! in F '2014,
a smaller increase in FY2015 and then increases again
each year through FY2016, The 8% increase in F 2014
would allow the opportunity to begin to build up the fund
balance. Scenario 3 would fund operations, a reserve
build up and fund Cll :
A comparison was provided snowing the Town's water
and sewer bills against rather Virginia utilities. The
median bill is 66 per month based on usage of 5,00
gallons per month out of 13 utilities surveyed..
r. Rogers indicated that Davenport will continue to
review assumptions for the model and he would like to
get some feedback as to structure. Some considerations
are how much do you do fined and how much volumetric.
o you do flat volumetric with one rate per 1,000 gallons
or do you do a block or tier? If you do a tier, do you do
are inclining tier or keep the declining tier that the Town
currently has? Then he will meet again with Council in
the first quarter of 2013 to review a more detailed rate
analysis, assist with the Public bearing notices and
adoption of a new rate structure.
A water and wastewater rate comparison was shown
which compared the Ton's rates with our region and
also with the State peer group (3,000 to 10,000
residential users . M . bare commented about comparing
our rates to the Western Virginia Water Authority. We
cannot compete with them because they have 52,000
users and it is more accurate to compare with localities
our size.
Comments were made about the bi-monthly billing and
how a rate increase does not appear as shocking as it
would with monthly billing. However, any consideration to
change to monthly would have to take into account an
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added fixed cost. The benefits would have to be
measured against the costs.
The Mayor indicated that he thought the concept of
paying:less when you use more is outdated and it needs
to be addressed. Mr. Rogers commented that it depends
on where you draw your line if you continue with the three
tier rate structure. The Mayor also commented that
historically the Town has not increased rates every year,
but it does rake sense. Mr. Altice commented that he
thought the water system was in pretty good shape based
on what we are paying. He also commented it is fairer
now because the costs of repairs are being charged to
the water fund and not the general fund. I think the
water rates are going to have to go up.
Mice Mayor dance commented that we have a
responsibility to have the ability to invest in the system
rather than passing that burden along to future
generations. We need to take care of what we own right
now so we can pass a vibrant and vital working system
onto our children. Unfortunately that means investment
and having the money to have those investments. Also,
from a business standpoint, you have to have the water
to give to those businesses. Mr. Adams commented on
the CIP that lists a lot of areas that are a concern to
citizens that have to be addressed. If we do not have the
money to address these areas, then we are hurting those
citizens.
Vice Mayor Nance commented that maybe we should
simplify the tiers and pull them closer together rather than
abandon the current system. The Town Manager said we
can still have e water•tier structure, but you move the lime.
Mr. Rogers said you can change the first tier and maybe
cut it in half and change the numbers slightly and have a
second tier that is more reasonable. Mr. Thompson
suggested eliminating the last two tiers;
Vice Mayor Nance asked what is the philosophy for the
higher rate for the larger meter and the response was that
it taken more infrastructure to provide the amount of
crater than flows through there. Mr. Thompson indicated
that we have one group of customers that we need to
address with the new rate structure who are not paying
the full fixed charge. They are only paying a $2.00 rate
fee and it relates to our resale of water. There are 21
customers that fall into this category.
Mr. Aare likes the idea of a fixed fee somewhere in the
rate structure. There are some costs like debt that have
to be paid regardless of how much water you use or do
not use. We can cut costs, but the hill from the WVWA
has to be paid regardless. The rate payers are obligated
to than debt. Mr. Adams commented that A P and
Roanoke Gas have fixed charges.
The work session was adjourned at : v p.m,
° raley r se, Ma
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Susan N. Johnson;trown Clerk