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HomeMy WebLinkAbout12/18/2014 - Regular MINUTES OF A REGULAR MEETING OF VINTCN TOWN COUNCIL HELD AT 6:00 P.M. ON TUESI AY, FEBRL ARY 18, 2014, IN THE COUNCIL CHAMBERS OF THE VINTC N MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTt N, 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 Theresa Fontana,Town Attorney Ryan Spitzer,_Assistant to the Town Manager Stephanie Dearing, Human Resources Director Barry Thompson, Finance irectorlTreasurer Ben Cook, Police Chia Cary Woodson, Public Works Director Joey Hiner, Assistant Public Works Director The Mayor called the work session to order at :00 p.m. The first item was an update on the Revolving Loan Program Plan for the $700,000 CDBG Downtown and Economic Revitalization Grant. Ryan Spitzer began by commenting'that in October he presented Council with a first-draft of the Revolving Loan Program Guidelines. The Committee has met three times and there have been several recommended changes to the previous draft; One concern related to collateral and the new requirement will be for each applicant to sign a promissory note and provide a list of what items they wish to use as collateral as part of the application. This information will be included on the promissory note. The Committee recommends changing the interest rate from prime minus some percentage to a fixed-rate of prime for the life of the loan. Each month when the Committee reviews new applicants, it will look to see what the prime rate is at that time. This will also help with the long-term of the program if it is to be extended out past the downtown area after two years to better reflect what the banks offer and to let an applicant use it as a second loan to a bank°s primary loan. Most banks will only lead 80% to a business, so this loan program could be used for the balance of 20%. regarding credit scores„ the Town will have to provide credit scores through the usual credit score companies for a nominal fee and we are currently discussing this option with FirstPoint. Mr. Spitzer continued by stating that the rules of the DH D Program are for every $25,000, a borrower will have to create one full-tune equivalent position and 1%0 of those have to be low to moderate income employees. However, other loan programs of this type have given loans in increments of $ 0,000 for most basic loans and have included a stipulation that a full-time position must be crewed for every $10, #00. The Committee recommends giving $ 0,000 loans up to a maximum of $a0,000 if the borrower can bring in a business that fills an economic gap in our community. Vice Mayor Nance asked if this was in lieu of creating a job and the response was they would still have to create those jobs. Cinder terms on Page 4 of the Guidelines, the language was added regarding what types of collateral will be accepted and that the UCC filings will be reviewed and the interest rate was changed as mentioned. Can Page 7 additional language was added as No. g to state that this loan can be used as a second loam to one already obtained from a bank. On Page 3, as part of the application, a section was added to allow an individual to apply if they do not have an LLCM or corporation and on Page 11, Item (b) an activity checklist was added to capture what activities the loan proceeds will be used for. Can Page 13, "personal debt" was added to item (d) and the format for providing collateral information was changed in Item (f . A non-discrimination clause was added on page 16. The Mayor asked if there have been any interested parties and Mr. Spitzer responded that there are four individuals who have expressed interest. Two currently have businesses downtown and want to expand and there are some who want to open up new businesses in the downtown area. Mr. Spitzer concluded by commenting that he would like to bring the final documents back to Council in March for their final approval. If Council is okay with the documents presented tonight; the Loan Review Committee will also draw up the promissory note to be included in the finial package for Council's approval, The Committee will meet once a month to review applications. The Town Manager asked Council if they wanted to approve the actual applications submitted to the Committee or do they want to establish the policy and the Committee be the authority to grant the actual loans. It is the recommendation that the Committee have that authority due to the fact that there would be a lot of business sensitive information that are a part of the application, but do not need to become public information. Mice Mayor Dance indicated that his original thoughts were that Council would not be the one making the selections. He does think that if concerns are brought to Council that they can address the selection process or something along those lines, but not the final vote on the particular business attempting to get such loan. The Town Manager commented that the dray Council can address any issues, if there are any, is through the Council representative on that Committee which currently is the Mayor. The Mayor commented that most business owners 2 starting out or trying to expand would want that kind of confidential information made pudic. The next item was a _general update on revenues for FY2014-2015. Barry Thompson began by commenting on the General Fund Revenues for FY2015 which are estimates and very preliminary figures. He then began a review of a spreadsheet which was provided to Council. The spreadsheet showed the actual_revenues for FY2013, the adopted budget for FY21 14, the preliminary estimates for FY2015 and the changes between the current budget and the estimates with a percentage. The C B S grant of $675,000 was removed for FY2015 estimates. A $250,000 expenditure for the CI BC Grant was included in this year's budget; however, only in the neighborhood of $25,000 will actually be spent by June 31 'J'. Between the adopted budget of FY201 of$7,655,8 7 and the preliminary estimate for FY2015, there is only about $73,000 that is actually new revenues r. mare arrived at 6:20 p.m. Mr. Thompson further commented on some of the specific line items with adjustments. The Other Local Taxes line item was adjusted in several areas and this item does include the cigarette taxes. The expectations are not being reached from this revenue source and the data will continue to be reviewed in several different ways by the Finance Committee. This forecast has been decreased approximately $99,000 in this preliminary report. Under the Use of Money line item, the increase is due to a larger return on our investments. In Charges for War Memorial, the increase is based on revenue for an estimate of next year of $160,000 which is a $22,500 increase for the revenue, On the Resale of Items, $100 was included in this year's budget and as of January 31't, Mr. Kipp has brought in $1,933. In the upcoming budget we are proposing $2,500. Another Mar Memorial line item is for Contracted resale Items which is for catered meals that are incorporated into the sale of an event. As of January 31st, Mr. Kipp had brought in 31,846.91. There is an riff setting expense can these items as well, but we are budgeting $55,966 next year for this. Revenue from other departments is also being accounted for as revenue and expense and we have budgeted $4,000 Since January 31't we have had approximately at$3,6 6 worth of revenue. Mr. Thompson continued by commenting on the Miscellaneous Income line item and the reduction of$ , 59. This is from the gain-sharing revenue. Over the past four years we have had an increase until this year when we had around a $50,000 decrease. We are budgeting what we received this year for FY2015. The Town Manager commented that we have a breakdown of the categories that mare up the gain-sharing 3 revenue and we will be reviewing that information in detail to see where we missed the mark: Mr. Thompson next commented that there is an increase shown in the State Bales Tax of$16,000. Categorical Aid has an increase of $50,000 which includes highway maintenance along with gents such as the C 3BG grant. With regard to the Utility ty Fund, there is about a $ 5,000 decrease in revenues projected at this time. The $1 0,000 decrease in the find balance is the expense for the generator. Mr. here asked how conservative are the preliminary figures based on a scale of one to five, with one being the most conservative. Mr. Thompson responded very conservative, probably a two; The Town Manager commented that the direction to staff was to prepare a level budget_with no additional increases. The biggest demands on our budget are capital items. We have re- prioritized and are holding off can some items until April or May to see if there are sufficient funds to move forward. We will also have discussion in the months ahead about how to pay for and respond to the demands on 4-hour fire coverage for the career staff. This will be an expensive item. Another item related to how we compensate our employees to stay competitive. We have done a good job; but we do not want to take our eye off the mark in terms of how our competition is doing. r.Adams arrived at 6:50 p.m. In closing, Mr. Thompson commented that Council had been talking with the Finance Department about going to a full size bill for quite some time. The next utility bill will be can -112" x 1 " paper. The Work Session ended at 6:55 p.m. and Council took a five minute recess.. The Mayor called the regular meeting to order at 7:00 p.m. Roll Call The Town Clerk called the roll with Council Member Adams; Council Member Altice, Council Member Aare, Vice Mayor Nance, and Mayor Grose present. After a Moment of Silence Mr. Adams legit the Pledge of Allegiance to the U.S. Flag. Under upcoming community events/announcements, Liz Lively, Chamber President, reminded everyone of the joint meeting of the Chamber and the Town to unveil the new brand, "in Vinton". The meeting will be held this Thursday at 8:00 am at The Woodland Place. The next service event sponsored by the Chamber will be the Senior Expo on March 25t' at the War Memorial from 10.00 am to 2:00 pm. There are over 50 vendors who have signed up for the event. 4 Ryan Spitzer announced that on February 2 t� there will be a Community Meeting at the Naar Memorial for the plans for the- downtown pocket park. The consultant will be at the meeting to receive input from citizens, In response to:a question about how this meeting will be advertised, Mr. Spitzer indicated the consultant would be getting out a press release, The Town Manager commented that we will also be advertising the meeting through our social media and also through the Lions Club network. r. Hare made a motion that the consent agenda be Approved minutes of the approved as presented, the motion was seconded by Mr. Altice regular Council meeting of and carried by the following vote, with all members voting: February 4, 2 14 approved Vote -0; Yeas ( )--Adams, Altice, Hare, Nance, Grose, flays Slate of Officers for the ( Noire. Volunteer Fire Department for 2014-2015. Vice Mayor Nance reach a letter from Chief Cook naming Sergeant Tim lawless as Officer of the Month for January 2014. Under citizens' comments and petitions, ,Jay Patel of the BP Store on Virginia ,Avenue addressed Council regarding the lass of business due to the Increase in the cigarette tax. He stated that one of the cigarette vendors told him that the cigarette sales in the Town had dropped, but had increased in Roanoke County;. He would like for Council to consider reducing the cigarette tax back to what it was or at least reduce it some to help the local businesses. He stated he would see what the next six months brines and report back to Council. Vice Mayor Dance commented that Council needs to knew that information earlier to consider as part of the budget process. The Mayer reiterated what the Vice Mayor said that the information Mr. Patel could provide will be very valuable as Council considers the budget. D. B. Patadia of Vinton, provided a print-out of information and addressed Council regarding the loss of sales due to the cigarette tax increase. He reviewed statistics from 2012 to 2013 regarding cigarette tax revenues indicating that only �,� revenue was gained from the increase. He also requested Council to consider going back to the regular cigarette tax rate. He commented that the second half of 2014 will be less as well and urged Council to help save the businesses in Town. The next item on the agenda was to consider adoption of an Ordinance adopting the VACo/V IL Virginia Investment Fool Trust Fund and authorizing the Treasurer/Chief Investment Officer to execute the Trust Joinder Agreement. Barry Thompson introduced Steve Mufroy with VM NACo Finance who will make a presentation concerning the new Virginia Investment: Pool (VIP) Trust Fund. This is a new 5 Program that became effective for municipalities on January 2, 2014. Mr. Mulroy began by commenting that VML/VACo Finance was started over ten years ago to provide financing to local governments throughout Virginia. Since starting, they have done more than $750 million in financing. They have also added investments and have a trust fund of over $600 Million. More recently, they have started the VIP. Mr. Mulroy then began with comments on his PowerPoint presentation. The Investment Pool can offer higher rates of return because the terms of the investments are one to three years. It is controlled by Treasurers and Chief Investment Officers in the VIP through a Board of Trustees and is a way for local governments to jointly invest together. Local governments investing jointly allows for diversification, a large number of holdings, semi-monthly liquidity, professional investment management and oversight and cost sharing. The VIP is designed for funds that are available to be invested for one year or longer. It is to complement a money- market fund, not replace this type of fund. It is ideal for fund balances carried over from year to year. Localities also need to make sure their Investment Policy allows for this type of investment. The VIP is a governmental trust fund under Section 115 of the IRS Code, The Cities of Chesapeake were the founding members of the VIP and as of this year, additional localities are now able to join by executing a Trust Joinder Agreement. Mr. Mulroy then commented on the portfolio's characteristics and reviewed the steps necessary for the Town to join. In closing, Mr. Mulroy commented that the Pool started at $50 million and it is now at $65 million and other localities are in the process of joining at this time, Mr. Hare asked how difficult it would be to get out of the VIP and Mr. Mulroy responded that there is just a five-day notice requirement so the portfolio manager will have time to liquidate the funds. A locality can withdraw funds twice a month since it is valued twice a month. If you have more than 10% of the total Pool and there is a disruption of the investments, the Board of Trustees could pace the funds coming out. We ask for sixty-day's notice in this regard. Mr. Thompson commented that we have a very good relationship with the local bank and by joining the VIP we see it as an opportunity to have another relationship. However, by joining it does not require us to invest money. This is just another avenue to seek investment opportunities, but we are not locking ourselves into this Pool. Mr. Mulroy reiterated the comments made by Mr. Thompson. Mr. Hare asked if we should handle the item amending our Statement of Investment Policy before the Ordinance adopting the VIP. The Mayor agreed and Mr. Thompson commented that the only change to our Statement of Investment Policy is to add the VACoNML Virginia Investment Pool as Item (1) on Page 6 and to the Portfolio Diversification on Page 5 r, Hare then rude a motion that the Resolution approving an amendment to the Statement of Investment Policy dated November 1, 2005 be adopted as presented; the Adopted Resolution No. 2053 notion was seconded by Vice Mayor Nance and carried by the approving an amendment to the following roll call vote, with all members voting; Vote 5-0; Yeas Statement of Investment Policy (5)—Adams,Altice, .dare, Nance;Grose; Nays(0)--None: dated November 1 005 Next, Council considered adoption of an {ordinance adopting the VACoNML Virginia Investment Pool Trust Fund Adopted Ordinance No. 945 and authorizing the Treasurer/Chief Investment Officer to adopting the VACoNM execute the Trust Joinder Agreement. Vice Mayor Nance Virginia Investment Pool Trust made the motion to adapt the Ordinance as presented; the Fund and authorizing the motion was seconded by Mr. Altice and carried by the following Treasurer/Chief Investment roll call vote,with all members voting: Vote 5-0; Yeas 5) — Officer to execute the Trust Adams;Altice, bare, Nance, Grose; Nays(0) None. Joinder Agreement The next item was to consider adoption of a Resolution designating the Plant C IL Emergency Communications System as surplus and authorizing its donation to the Bedford County Communications Center. Mr,. Spitzer commented that Roanoke County contacted the, Town several months ago regarding the old Plant CMIL Emergency Communications System that is still in the old dispatch center in the Municipal building. Bedford County 911 uses the same system and is interested in our old one for a back-up and spare parts. We have tried to surplus this property before to another jurisdiction, but they got a new system. Roanoke County and the Town no longer have a use for the system and it has no monetary value. We would recommend that Council declare the system as surplus and donate it to Bedford County Mr. Aare asked if this equipment is stilt on the asset inventory list. The Town Manager commented that the State purchased this equipment through our 911 funds and so he felt better about giving it to another locality. Mr. Thompson responded that part of the equipment was taken off the books when the Adopted Resolution No. 2054 two dispatch centers merged, but he will have to check. Mr. designating the Plant CMIL Adams made a motion that the Resolution be adopted as Emergency Communications presented; the motion was seconded by Mr. Atice and carried System as surplus and by the following roll call vote, with all members voting: Vote 5- authorizing its donation to the 0 Yeas (5) Adams; Altice, Hare, Nance, Grose, Nays ( — Bedford County Com u i- bane. ications Center 7 Under update on old business, the Town Manager commented that it was good to be back to work after his recent surgery and he appreciated the support of Council and his department heads during that time. He also expressed appreciation to all the employees during the recent snow event. fury Woodson and Chief Cook coordinated prior to the event to get emergency management plans in place and worked and continued that coordination throughout the event: Because of the excessive amount of snow; 20 plus inches, we are going to take a further look at the downtown area and how we can get rid of some of the additional snow, We appreciate our emergency personnel and Public Works, but also some administrative staff that worked in various capacities during the event. The Mayor expressed his appreciation also for all the work that our Fire, Rescue, Police and Public Works did during the snow event as well as other administrative staff. Under appointments to Boards/Commissions and Appointed Board members to administering Maths of Office, Mr. Altioe made a motion to the Western Virginia Regional nominate the following individuals as Board members to the Industrial Facility Authority: Western Virginia Regional Industrial Facility Authority, Christopher S. Lawrence for Christopher S. Lawrence for a four-year term; Gary W. four-year terra; Gary W. Woodson for a two-year term, Bradley F. Grose, Alternate, Woodson for a twos-year term, for a four-year terra, and William W. Dance, Alternate, for a, Bradley E. Crosse, Alternate, for two-year term. The motion was seconded by Mr. Hare and a four-year term, and William carried by the following vote, with all members voting; Vote W W. dance, Alternate, for a, two- Ct Yeas ( ) — Altice; Adams, Hare, Dance, ( rose; days g . year term. Town Clerk The Town Clerk then administered the Oaths of Office for the administered Oaths of Office ice Beard members. Comments from Council: Mr. Hare, Vice Mayor Nance, Mr. Alti e and Mr. Adams made comments and expressed their appreciation to Town staff for their hard work during the recent snow event. The Town Manager commented that there were also employees of the Police and Fire Departments that knew if they wept home, they could possibly not get back. Those individuals spent the night at the Fire Station so they were available to assist in the Town. Mr. Patel commented from the audience about the roads being clear in the Town. He also asked that Council consider his prior comments. Mr. Hare responded to Mr. Patel by stating that last year there was a problem with communication and it was not until at the end of the budget process and time to make a decision that individuals came and spoke. There will be more meetings with more details on the budget and it is important for all of his employees and constituents to pay attention to the news and plan to attend other meetings. Mr. Patadia asked that Council check with the larder stores to get their figures and not rely on what information they have provided. Vice Mayor Nance made a motion that Council go into a Closed Session Closed Meeting pursuant to § 22-3711 A (1) of the 1950 Code of Virginia, as amended, for discussion or consideration of personnel matters. The motion was seconded by Mr. Adams and carried by the following vote, with all members voting: Vote 5-0; "Yeas ) - Adams, Altice, Hare, Nance, Grose; flays (0) «- None. Council went into Closed fleeting at 8:05 p.m. At 3:24 p.m., the regular meeting reconvened and the Certification of Closed Meeting Certification that the Closed Meeting was held in accordance with :Mete Code requirements was approved on motion by Mr. Hare; seconded by Vice Mayor Nance and carried by the following roll call gate, with all members voting: Mote -0; Yeas (5) — Adams, Altice, Hard, Nance, Grose; bays (0) — None. Mr. Here made e motion to compensate all essential Approved for all essential employees who worked during the snow event on Thursday, employees who worked during February 13, 2014, and Friday, February 14, 2014,with eight the snow event on Thursday, (8) hours paid leave for each day they worked (no more than February 13, 2014, and Friday, a total of 16 hours). These hours must be taken by June 30, February 14, 2014, eight (8) 2014. The motion was seconded by Mr. Altice and carried by hours paid Dave for each day the following vote, with all members voting. Vote -0; Yeas they worked (no more than a (5)--Adams, Altice; Hare, Nance; Grose; Nays (0)—None. total of 16 hours). Mr. Hare made a motion to adjourn the meeting; the motion was seconded by Mr. Altie and carried by the following vote, with all members voting: Vote 5-0; Yeas (5)—Adams, Altice Hare; Nance; Grose; Nays (0) — None. The meeting was adjourned at :25 p.m. APPROVED: Bradley E. t3rose, Mayor ATTEST: Susan N. Johns , Town Clerk 9 AT A CLOSED MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESIDAY, FEBRT ARY 1 , 2014, AT 7:00 P.M. IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILIDNG,311 SOUTH POLLARD STREET,VINTON, VIRGINIA. CERTIFICATION THAT A CLOSED MEETING WAS HELD IN CONFORMITY WITH THE CODE OF VIRGINI WHEREAS, the Town Council of the Town of Vinton, Virginia has convened a closed meeting on this date, pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and., WHEREAS, Section .2-3 12 of the Code of Virginia requires a certification by the Vinton Town Council that such closed meeting was conducted in conformity with Virginia Law, NOW, THEREFORE,BE IT RESOLVED that the Vinton_Town Council hereby certifies that to the best of each menber's knowledge:. I. Only public business matters lawfully exempted from opening meeting requirements by Virginia law were discussed in the closed meeting to which this certification applies;and . Only such public business matters as were identified in the motion convening the closed meeting were heard,discussed or considered by the Town Council. Motion made by Council Member Hare, and seconded by Vice Mayor Nance, with all in favor: 4AetinC *ofCouncil