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HomeMy WebLinkAbout2/19/2013 - Regular!I&M f2i 14" 1 ar-41 a Rvi I a *I I ILI Les 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 Elizabeth Dillon, Town Attorney Ryan Spitzer, Assistant to the Town Manager Gary Woodson, Public Works Director Joey Hiner, Assistant Public Works Director Barry Thompson, Finance Director/Treasurer Ben Cook, Police Chief Anita McMillan, Planning & Zoning Director The Mayor called the regular meeting to order at 7:00 Roll Cat,' p.m. The Town Clerk called the roll with Council Member Adams, Council Member Altice, Council Member Hare, Vice Mayor Nance, and Mayor Grose present. After a Moment of Silence, Mr. Altice led the Pledge of Allegiance to the U.S. Flag. Concerning the consent agenda, Mr. Hare asked if at the top of Page 5 the minutes could reflect that it was a conscious decision by Council and staff to not use a collection agency from a customer service standpoint. Mr. Hare also referenced the question in the minutes 2sking if our share of the cost of the WVWA Project includes the 3% contingency of the Authority and when we might expect an answer. The Town Manager responded that they will get an answer by the end of the week. Mr. Hare made a motion to approve the consent agenda as Approved minutes of Council's amended; the motion was seconded by Mr. Adams and regular meeting of February 5, carried by the following vote, with all members voting: Vote 2013, as amended 5-0; Yeas (5) — Adams, Altice, Hare, Nance, Grose; Nays (0) - None. The next item on the agenda was a Proclamation recognizing Mike Huffer, Chief Mechanic of the Public Works Department, who has resigned effective February 28, 2013 to relocate in Memphis, Tennessee. Mr, Huffer could not attend the meeting and after brief comments by the Mayor, the Proclamation was presented to Gary Woodson, Public Works Director. 4 0 1 towing c• PaNj Flab IU time that present a challenge when our Zoning Ordinance only provides for them to keep the car for 30 days. There are some conflicts between our Zoning Ordinance and the State Code and we need to review both to come up with an accepted balance. Ms. McMillan indicated our current Code provides 30 days and the State Code requires an additional 60 days. Other localities have provided up to 120 days and we may took at 90 days especially when the business is in a residential area. The next item on the agenda was to consider adoption of a Resolution appropriating $686.75 received from Cycle Systems of Roanoke for scraped metal property from the 0 Public Works Department. Gary Woodson, Public Works Director, explained that these funds are put back into the building and maintenance fund for the Public Works building to buy materials for small repairs that can be handled in-house. Mr. Altice made a motion to adopt the Adopted Resolution No. 2006 Resolution as presented; the motion was seconded by Vice appropriating $686.75 received Mayor Nance and carried by the following roll call vote, with from Cycle Systems of Roanoke for all members voting: Vote 5-0; Yeas (5) — Adams, Altice, scraped metal property from the Hare, Nance, Grose; Nays (0) - None. Public Works Department The next item on the agenda was to consider adoption of a Resolution approving the Downtown Revitalization Management Plan, the Downtown Fagade Grant Program and the Revolving Loan Program Plan and Administrativt Program Manual for the $700,000 CDBG Downtown and Economic Revitalization Grant, Mr. Spitzer made comments regarding the three documents. The Project Management Team approved the documents at their meeting on February 12, 2013. The Project Management Plan document is the plan that the team will be following through the duration of the project. The Fagade Program plan will follow the current Fagade Program with the exception that any contractor used has to be on the award list for the project. The Revolving Loan Program guidelines had some revisions, Beginning with Page 4 under "Uses", it was decided that the working capital limit of 30% would be a guideline. The Team did not want to dissuade someone from getting a loan if it needed to be 40%. Under "Loan selection and approval process" it was decided that two business owners should be added to the loan committee to give a small business prospective, one from a business inside the grant area and one outside the grant area. Mr. Hare asked how the process would work if loan requests exceed available funds as described on Page 5, section 3. Mr. Spitzer responded that would only be taken into account if we received five loan applications at the same time. Mr. Hare asked about the types of collateral and who would determine the value and the response was the loan committee would have that responsibility. Mr. Hare expressed concern about using working capital and the response was that it would be used for start-up costs, not after the business is started. I Vice Mayor Nance asked the Town Attorney what would happen if one of the applicants filed bankruptcy and Ms. Dillon responded that she did not know at this point. There, was further discussion about ways to protect the Town in the event of default or bankruptcy. The Town Manager commented that the Revolving Loan Plan basically sets up 0 the structure of the program. The actual working application to include the details of what needs to be done to protect both parties will be the responsibility of the loan committee They will seek legal advice and the Town Attornek; res*,wnded that she can •_rovide ad • would put the Town in the best position should a party file bankruptcy. Mr. Spitzer commented that under "Loan conditions" security "shall" be required if determined necessary by the loan counsel was changed to "may" be required. The team thought it might be cost prohibitive for some businesses and other businesses may have enough assets or have been in business long enough to not require, Comments were made that the document is not consistent regarding who we will extend credit to and are we going to make high-ritsk loans or secured loans. The Town Manager further commented that the team did not want to set the standards too high in the outset, but to have guidelines to take applications and then let the professionals review them and make specific decisions. T'ice Mayor Nance asked if there had been any discussion about loan forgiveness. The Town Manager commented that other localities have forgiven their loans after they are two years into the grant, but this is something that the loan committee will have to discuss. Mr. Hare asked the definition of operating season and the response was the difference between a business that is *pen year round as opposed to one that is opened only easonal, like a lawnmower business, Mr. Spitzer referenced Page 6, Section 8 regarding the borrower submitting financials to the loan review committee from time to time. The team decided not to put a time frame on this requirement because they felt the committee needed some flexibility. Depending on the particular business, the committee may need to request financials early on to be able to offer guidance before they might 4.1efault on the loan or file bankruptcy. Comments werem made that it can be very costly and difficult for some small - businesses to get financials. Mr. Hare asked if there are any covenants to recall the note in the event of non-payment and the response was there are only two stipulations at this time --if they relocate or if they go bankrupt. Mr. Hare also asked what recourse we would have if they refuse to conform to the Town Code or have other violations and the response was there are none. The Town Manager indicated that as a condition of the loan, the application must have an up-to-date business 9 license, zoning permit and be Violation free. The Town Manager reiterated again that this document is just the framework and that the actual loan contract will spell out all the specifics and be brought back to Council for their approval. Vice Mayor Nance commented that he is fine with this document if it reflects the broad parameters and the details - will be brought back to Council and Mr. Hare said he would both sides. Vice Mayor Nance commented again about the loan turning into a gift. The Town Manager stated that today it is a loan because DHCD has approved a revolving loan fund. However, they have made it clear that after 24 months they no longer have government oversight over how the Town operates that loan pool, It becomes the Town's choice, That is when that conversation becomes a valid conversation. Up until then, it is a loan fund. Mr. Adams commented that the whole idea is to offer help to get a new business started and if we get some successful businesses from this, he thinks we should took at that down the road on an individual basis. The Mayor commented that existing businesses can also apply for the loan for expansion. Mr. Adams made a motion to adopt the Resolution to include the items discussed. Vice Mayor Nance clarified the motion to adopt the Resolution with the explicit understanding that as details of the loan program develop, including the development of the contract, that it be brought before Council for approval thereof, Mr. Adams agreed with the amended motion; the motion was seconded by Vice Mayor Nance and carried by the following roll call vote, with all members voting: Vote 5-0; Yeas (5) — Adams, Altice, Hare, Nance, Grose; Nays (0) - None, The Mayor expressed appreciation for Mike Huffer and his contributions to the Town. The next item on the agenda was a report from the Highway Safety Commission. Mr. Woodson made the presentation on behalf of the Commission. Three areas that the Commission looked at were the Virginia/Glade intersection, the Vinyard Road/Hardy Road intersection and Preston Road. At the Virginia/Glade intersection, traffic is still making left turns even though there are "no left turn" signs. The proposal is to put some collapsible posts along that section to prevent left turns. A picture showing three different types was shown. Collapsible posts will allow emergency vehicles to make that turn when necessary. Adopted Resolution No. 20 approving the Downto Revitalization Management Pla the Downtown Fagade Gra Program and the Revolving Lo Program Plan and Administrati Program Manual for the $700,0 CDBG Downtown and Econorn n. Revitalization Grant, as amendedil on This will be cost effective and will not affect the storm water drainage in that area. Comments were made about the appearance of these posts and Mr. Woodson said that there are other types available. Mr. Hare asked if we would notify the residents of that community that we are making that change and the response was it is not a requirement, but we can let them know. Mr. Altice commented that we should block off the area permanently and Mr. Woodson said that is a possibility, but more costs would be involved. That could be a possibility after the temporary posts have been there for a period of time. Mr. Hare asked about the cost of the posts and the response was they have not priced them. A question was asked if there are a lot of accidents at that area and Chief Cook responded no, but the biggest issue is to prevent vehicles from getting out into the traffic trying to make that turn. Further discussion was had about the appearance of the collapsible posts and the necessity of putting something temporary up to education the public about the change before putting up a permanent barrier, Mr. Woodson commented that we could purchase temporary posts that could be moved and used in another area when we decided to make this permanent. The Town Manager suggested that staff come up with a proposal and bring back to Council. The Mayor asked about the hillside where the new AEP foundation is in Town and the Town Manager commented that it is on private property. However, staff will review the issue further. Mr. Woodson commented on the next location, Vinyard/Hardy Road. The suggestion was made to designate and re -mark straight and turn lanes to allow left turn only at Vinyard Road at Hardy. The Commission is not recommending any change. One consideration was to time the signals different but that would present a traffic problem during peak times. A request is part of the FY2014 CIP budget to restripe this area. The third area is South Preston Road regarding the width of the roadway that narrows in the curves in the area of Evelyn Street. Public Works has moved the mailboxes back and plan to do some work on the shoulders in this area. Some of the recommendations were to put a stop sign at Fairmont and reducing the speed to 15 mph with a curve sign. The speed limit sign can be white or a yellow speed limit sign with the curve sign under it. Mr. Altice commented that Mr. Andrews of that neighborhood was pleased with what has been done so far. The Town Manager commented that Ms. Andrews had suggested 0 putting a white center line and the response was that putting a center line will push people to the shoulder, The better solution would be to slow traffic down and provide the opportunity for enforcement in that area. Vice Mayor Nance asked if the stop sign would make a difference at Fairmont because most traffic slows down there anyway and the response was if there is not a stop sign, people will not come to a complete stop but just roll through the intersection. The idea is to stop them and allow them to make the turn, which helps to engage the signs and reduce speed. From a safety and economic standpoint, signage is the way to go. Vice Mayor Nance asked Chief Cook if where there is a yellow speed limit sign, it is not an enforceable spee4, limit unless you cause an accident related to that speed. Chief Cook responded that some signs say "maximum safe speed" and some think that is a suggestion. He is not sure about the yellow speed limit sign. Mr. Woodson commented if you want an enforceable speed limit, use the white sign. The placement of the signs will be important as well. Council gave a consensus to proceed with the recommendation. The Town Manager asked Mr. Woodson to comment on i the two large potholes on Mountain View and what our short term resolution will be. Mr. Woodson responded that they will continue to put stone down and cement to try and hold it in place, Other temporary solutions would be to put down a cold patch or cut out the area, re - stabilize the base and go back in over a larger patch. They will continue to monitor the situation. The Mayor commented that Mountain View should be a topic of future discussion because it is a heavily traveled road and in need of a more permanent solution. Comments from Council Members: Vice Mayor 1 Nance mentioned the two new businesses, Bloop Yogurt and The Shoe Department. Mr. Adams commented on the new fencing around the Mountain View Cemetery and how much it helped with the appearance. The Town Manager commented that he and Mr. Spitzer had met with the new owners of the cemetery and they wanted the community to know that the cemetery open space is still open for the public and they are also making improvements to the main stone building on the property to include the addition of restrooms. Mr. Adams moved that the regular meeting be' adjourned, the motion was seconded by Mr. Hare and carried by the following vote, with all members voting: Vote Adams, Altice, Hare, Nance, Grose; Nays (0) — None. The regular meeting was adjourned at 8:42 The Work Session began at 8:55 prn with a general update on revenues for the FY2013-2014 budget. After brief comments from the Town Manager, Barry Thompson, Finance Director/Treasurer, gave a power point presentation. Mr. Thompson began by stating that the General Fund revenues are projected to be at $7,670,049, which is a 3.67% increase over last year, The majority of that increase is $250,000 from the CDBG grant that we would expect to receive this fiscal year. Without that, the projected increase would be 0.30% increase. On the Utility Fund, projection is to be $3,107,055, which does not include any bond money or any rate increase that we mightconsider. This is a 0.21% increase over last year's revenues. Mr. Thompson next reviewed the reassessments for next fiscal year. In year 2012 the assessed values for the Town were $466,502,000 and for 2013 they were $456,795,100 which is a decrease of $9,706,900, Only $357,000 in new construction for 2013 which brings a net decrease of $10,063,900. When we apply the $0.3 tax rate per $100 that shows a decrease from 2012 to $2,912, which is a 2.08% in our assessments. Discussion was had regarding the decrease in the personal property taxes for FY2014 and what accounted for the increase in 2013 over the prior three years. Mr. Thompson continued his presentation making comments on other local taxes totaling a projected amount of $4,108,725. Regarding the cigarette tax, Mr, Thompson commented that is one area where Council could consider increasing the tax rate. We are at $0.20 per pack. Roanoke City is at $0.54 and Roanoke County ,toes not have a cigarette tax. Mr. Hare commented thato 2,n increase of $0.20 would give us $300,000 or $OAC�� would give $150,000. Other categories were permits and fees totaling $11,5 and fines and forfeitures totaling $82,125. The May asked what accounted for the decrease in 2011 and 201 in Court funds and the response was it was felt th during that time, the Judges were sentencing individua to more community service instead of fines, 9 In lieu of time, Mr. Hare suggested that Council end the work session. The Town Manager commented that Council has been presented a copy of the power point presentation and the budget worksheet for their further review. Mr. Thompson commented that the War Memorial will be broken out next year in a separate cost center so it can be monitored easier. He used last year's revenue figure which will need to be reviewed with Mr. Kipp and the Finance Committee, He did increase the sales tax for this budget because we are doing very well, Also, the HB-599 funds should stay the same as last year and there has been no indication that the highway maintenance funds will be different. APPROVED: Jj 116;d ey Gros ; Ma r ATTEST: Susan N. Johnson, TQdnClerlk WE