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HomeMy WebLinkAbout6/2/2009 - RegularMINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M. ON TUESDAY, JUNE 2, 2009 IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. MEMBERS PRESENT: Bradley E. Grose, Mayor Robert R. Altice Carolyn D. Fidler William W. Nance William E. Obenchain, Jr. STAFF PRESENT: Chris Lawrence, Town Manager Elizabeth Dillon, Town Attorney Darleen Bailey, Town Clerk Consuella B. Caudill, Asst. Town Manager Barry Thompson, Finance Director/Treasurer Anita McMillan, Planning Director Beth Austin, Human Resources Manager Mike Kennedy, Public Works Director Herbert Cooley, Police Chief Gloria Morgan, Administrative Clerk Valerie Cummings, Police Sergeant Mark Vaught, Police Lieutenant Bill Sankbeil, Master Police Officer Agenda A. 7:00 P.M. – Roll Call and Establishment of a Quorum B. INVOCATION – Judith Joness - Associate Pastor at First Church of God C. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG D. CONSENT AGENDA 1. Approval of Minutes for Regular Meeting of May 19, 2009 2. Resolution Reappointing Brad Grose to the Roanoke Valley Alleghany Regional Commission ACTION: ADOPT RESOLUTION NO. 1825 3. Resolution Transferring Police Grant Funds for the Local Law Enforcement Block Grant to Provide Police Officers with Micro-Cassette Recorders ACTION: ADOPT RESOLUTION NO. 1826 E. AWARDS, RECOGNITIONS, PRESENTATIONS 1. Virginia General Assembly Joint Resolution No. 466 Honoring First Responders on April 16, 2007 at Virginia Tech F. CITIZENS’ COMMENTS AND PETITIONS G. PUBLIC HEARING 1. Ordinance No. 885 – Proposed Water Rate Increase of 10% Ordinance No. 886 – Proposed Wastewater Rate Increase of 10% a. Staff Report b. Public Comment c. Council Discussion d. Council Action H. OLD BUSINESS 1. Ordinance No. 882 Raising Meals Tax from 5% to 6% 2. Ordinance No. 883 Implementing $.30 per pack Cigarette Tax 3. Ordinance No. 884 – Adopting Budget for FY 2009-2010 I. TOWN ATTORNEY J. TOWN MANAGER 1. Vinton Business Center 2. Skate Park Ramps – Resolution No. 1827 K. MAYOR L. COUNCIL M. ADJOURNMENT WORK SESSION 1. Downtown Revitalization Status Mayor Grose called the regular meeting to order at 7:00 p.m. Following roll call, Associate Pastor Judith Joness from the First Church of God, gave the invocation and Council Member Wes Nance led the Pledge of Allegiance to the U.S. Flag. Roll call, invocation and Pledge of Alle- giance to U.S. Flag. Mr. Altice moved to approve the consent agenda. The motion was seconded by Mr. Nance and passed with all in favor. Approved Consent Agenda The Mayor reported that Chief Cooley had received correspondence from State Delegate, Dave Nutter, expressing appreciation to the Vinton Police Department and all of the first responders at Virginia Tech on April 16, 2007. He also forwarded a copy of the House Joint Resolution 466 honoring all those who responded to the tragic event. The Town Manager advised that the public hearings on proposed Resolution No. 885 authorizing a 10% rate increase on water service and Resolution No. 886, authorizing a 10% rate increase on wastewater service would be held together but would be voted on separately. Mayor Grose opened the public hearing at 7:05 p.m. and Mr. Lawrence gave the staff report. He noted that the Town has sold less water this year than in the past and revenues from system development fees have dropped which has resulted in substantially less Utility Fund revenues coming in. Mr. Lawrence pointed out that another cause for lower Utility Fund revenues was because the Held public hearing and adopted ordi- nancees approving a 10% increase in water and sewer service rates. 2 Town’s water and sewer rates are not structured to bring in adequate revenues to make needed upgrades, to cover the debt service, or for future investments that may be needed. He noted that this year’s budget gap for the Utility Fund is $500,000 that will be bridged by cutting funding including capital funding and by raising water and sewer rates by 10% beginning on January 1, 2010. Mr. Lawrence advised that the proposed rate increase would generate approximately $120,000 and would be the first step in planned rate increases over a five-year period. The Town Manager reported that even with these measures, it will also be necessary to dip into the surplus funds in order to balance the proposed budget. The Town Manager pointed out three different customer types and how the rate increase would affect each: for those customers who are on the low side, they would pay $1.00 to $2.00 more per month; for those at the mid point, the increase would be about $2.00 to $3.00 per month; for those customers on the high end, the increase would be in the $6.00 range per month. He went on to say that because the Town bills bi-monthly, the customers’ water and sewer bills would reflect double those amounts. Mr. Lawrence advised that the rate increase had been advertised as required but the Town has not received any feedback from the public. There was no response to the Mayors call for public comments. Mr. Lawrence explained that the 10% increase would begin starting January 1 but would not be billed until March. Mr. Thompson added that the first business billing would be in February. Mr. Obenchain pointed out that the Public Works Director had been telling Council for years that the water and sewer lines were old and many were in need of being replaced. Mr. Kennedy advised that approximately $35,000,000 over the next 25 years would be needed to make necessary improvements in the water and sewer systems. Mr. Obenchain stressed that the Town is going to have to begin making preparations for those improvements. Mr. Mabe asked how Vinton’s rates compared to the County’s rates. Ms. Fidler replied that the Town tries not to make comparisons with other localities because the Town bases its rate on what it costs to provide citizens with water and sewer service. Mr. Altice noted that the County does not provide water and sewer services to their customers, the Western Virginia Water Authority provides those services to Roanoke County and to Roanoke City. Mr. Lawrence advised Mr. Mabe that the Town’s rates are lower than the Western Virginia Water Authority’s rates for water and sewer. Mr. Nance stated that no one wants to have to raise the rates but when the Town has to delay improvements to the system because there are no 3 funds to pay for them and the Town has to pull from the surplus fund account to balance the budget, it is inevitable that rates will have to increase. He went on to say that if revitalization in the downtown area is going to happen, the infrastructure has to be there to allow for the improvements that need to occur. Ms. Fidler commented that if the Town does not make the needed improvements to the systems, the state will eventually mandate it. Mayor Grose stressed that it would be irresponsible for the Town to not make the improvements that insure the Town’s utility customers get the service they pay for. The Mayor closed the public hearing at 7:20 p.m. Mr. Obenchain moved to adopt proposed Ordinance No. 885 approving a 10% increase in the Town’s water service rate. The motion was seconded by Mr. Nance and approved unanimously on a roll call vote. Ms. Fidler moved to adopt proposed Ordinance No. 886 approving a 10% increase in the Town’s waste water service rate. The motion was seconded by Mr. Obenchain and passed with a unanimous roll call vote. Mayor Grose asked the Town Attorney whether Council could discuss the two ordinances that would authorize a meals tax increase and implement a cigarette tax, at the same time and Ms. Dillon responded that they could be discussed at the same time as long as Council acts separately on the two ordinances. The Mayor noted that this year, the budget process had been the most difficult since he had been on Town Council. He complimented and thanked staff for their efforts to get the budget balanced and assembled and for the personal sacrifices they made to do it. Mayor Grose stated that when he leaves Council Chambers tonight after adopting a budget, he would fully support it and felt convinced that Council was heading in the right direction. He stated his preference that the Town not increase the 5% meals tax because of the past and current efforts to attract restaurants to the Town. With regard to the cigarette tax, the Mayor pointed out that the amount of revenue from the cigarette tax was an unknown as Council has been given very high numbers for the volume of cigarettes sold in the Town, much higher than is generated by the tax in other similar localities. He recommended either a $0.20 or $0.25 tax per pack. He Did not adopt Ord- inance No. 882 en- acting meals tax in- crease. Adopted Ordi- nance No. 883 im- plementing cigarette tax. 4 went on to say that he would support a $0.30 tax if necessary. Mr. Altice commented that Council needs to approve both taxes in order to balance the budget and that it would probably have to be cut again by the middle of the budget year. Ms. Fidler stated that she would support a $0.30 per pack tax on cigarettes but preferred not to raise the meals tax. She added that she would support Council’s decision on the two taxes. Mr. Nance stated that he liked to think of himself as a low tax, small government type of person and did not want to have to vote for either tax increase but knew Council needs to increase revenues in some way. He further stated that Council needs to balance the budget in the most palatable and reasonable way. He noted that he was aware that the increased taxes can hurt businesses but did not want to see that happen and expressed doubts that the cigarette sales numbers given to Council are accurate. He also advised that he did not support the meals tax increase and would like to set the cigarette at $0.15 to $0.20 per pack. Mr. Obenchain recommended that the cigarette tax be set at $0.20 per pack but expressed reservations about raising the meals tax. Mayor Grose asked if the budget could be balanced if the meals tax is not increased and the cigarette tax of $0.20 per pack is implemented. The Town Manager replied that if the projection for the sales are somewhat close to $2.5 million or even if they are in the $1.5 million range, it appears on paper that the budget would balance. He went on to say that there was no way to confirm the sales numbers or their accuracy. He added that staff will pay very close attention to the numbers on a monthly basis and will report back to Council on a quarterly basis. He further added that if the numbers are lower than what has been projected, Council will have two choices: decide how to raise revenues or to cut expenses. He pointed out that any further cutting of costs would impact services and employees. Mr. Altice noted that there would be administrative costs to implement the cigarette tax as well. He also made the point that if either the proposed meals tax is not raised, or the amount of the proposed cigarette tax is reduced from $0.30 per pack, the budget will not be balanced. Mr. Thompson asked about the options if staff finds the cigarette tax cannot be implemented by August 1st and Ms. Dillon replied that if 5 that happens, Council could delay the effective date. Mr. Obenchain asked if it would be possible to increase the meals tax at a later date if they find it necessary to do so and also asked how long would it take for the revenue would begin to come in. The Town Attorney responded that a public hearing would have to be advertised and held but the tax can be increased at any time. Mr. Thompson estimated that he could implement the tax very quickly as the businesses had advised him that the process is automated and they would only have to adjust their cash registers, probably within 30 days after the ordinance is passed. Mr. Nance commented that if necessary, revenue could be pulled from the surplus fund account. In response to a question from the Mayor on how to proceed with the meals tax since it was apparent that the majority of Council does not want to increase it, Mr. Lawrence explained that Council could just not take action on the ordinance or they could take action to deny the ordinance, either way would be effective. The motion died for lack of action. Mr. Obenchain asked if it would be possible to add another amendment that would allow the tax to increase to $0.30 if the revenues from the sale of cigarettes are not what has been projected. Ms. Dillon replied that it could be added to the ordinance but it would make the ordinance more cumbersome. Mr. Obenchain and Mr. Nance both stated that they want to be assured that the revenues from the tax would be monitored so that if the revenues are lower than projected in January, they would have the option to increase the cigarette tax rate. Mr. Thompson assured Council that he would keep them updated on the cigarette tax and the amount of revenue it is generating. Mr. Obenchain recommended that Council be given a monthly report for at least the first six months. Ms. Fidler moved to adopt the amended Ordinance No. 883, implementing a cigarette tax of $0.20 per pack with the effective date of August 1, 2009. Mr. Nance seconded the motion that passed with the following 4-1 vote: Mr. Altice No Ms. Fidler Yes Mr. Nance Yes Mr. Obenchain Yes Mayor Grose Yes Before the Mayor called for a motion to adopt the proposed budget for FY 2009/2010, Mr. Lawrence advised that it was necessary to Adopted Ordinance No. 884 approving FY 6 clarify in the record that the budget would be amended to reflect that the meals tax would not be increased as proposed and that the amount of cigarette tax revenue would increase to $258,000 which would cover the proposed 1% meals tax revenue (meals tax revenue would be reduced by $140,000 and cigarette tax revenue would be increased by $140,000). Ms. Fidler moved to adopt proposed Ordinance No. 884 approving the FY 2009/2010 budget. The motion passed on the following 4-1 vote: Mr. Altice No Ms. Fidler Yes Mr. Nance Yes Mr. Obenchain Yes Mayor Grose Yes 2009/2010 budget In response to a question from the Mayor on what he needs to do with regards to the fact that emails he has received on his laptop have filled up his mailbox. Ms. Dillon explained that the Library of Virginia has set up regulations for retaining public records for certain periods of time and emails are considered public records in the same way that all other records are. Mr. Lawrence advised that staff would be glad to show Council how to archive their emails. She explained what could be trashed and what needs to be kept. Discussed FOIA re- quirements Ms. Caudill gave a report on the Vinton Business Center. She advised that she had been working with Roanoke County staff who had come up with renderings of signs for the Business Center. The Assistant Town Manager advised that Town’s share of funding to pay for a sign at the Vinton Business Center had been cut from the current budget’s CIP during the mid-year budget cuts. (Roanoke County would responsible for one-half of the cost of the sign.) She noted that in recent conversations with Roanoke County and from information in the Corridor Study, it had been pointed out that a sign is needed to give identification and prominence to the Business Center. She reported that Town staff agreed that the Business Center does need a sign and requested that funding from some of the line items in the current budget that had not been spent, be transferred to the VBC capital account line item. Ms. Caudill advised that $15,000 had been transferred to cover the cost of the Town’s share of the sign. She pointed out that the original cost estimate for the sign that was done two years ago was $12,500 but had increased since then. Report on sign for Vinton Business Center 7 Ms. Caudill reported that two renderings of four signs done by Roanoke County staff were selected for Council to review. She asked them to let her know which sign they preferred. She asked them to also let her know if they do not approve of either sign. Ms. Caudill added that County staff continues to work on other ideas for the sign. Mr. Nance asked about directional and informational signage and a uniform way of doing it as a signature for the Town and Ms. Caudill replied that the P.D.C. is working on renderings for wayfinding signs for the Town. She added that wayfinding signage would be different from the Vinton Business Center sign. Ms. Fidler recommended using rock similar to what was used in the Parkway Bridge so that it would be tied into the Blue Ridge Parkway. Mr. Lawrence stated that even though he is authorized by Council to transfer amounts up to $5,000 from any one line item, he just wanted Council to be aware of how the money was put back into the budget and to be assured that Council agreed with this. Ms. Caudill reported that Mr. Nance and staff members has been working with the Skateboard Advisory Committee regarding alternatives for the skate park. She advised that Mr. Brendan Hogan, a member of the committee, had been working behind the scene to make connections and to get the Committee’s 501 3C in place so they could take ownership of the ramps. She stated that Mr. Hogan was able to work with “Renewanation”, a Roanoke based nonprofit organization, who is interested in doing some type of skate park facility on Orange Avenue. Ms. Caudill stated that staff consulted with the Town Attorney regarding the process for donating the Town’s skate ramps to this non-profit organization. She noted that a copy of the agreement to transfer ownership of the 9 ramps was in their meeting package. The Assistant Town Manager assured Council that when Renewanation takes over possession of the skate ramps, the Town would give up all ownership and responsibility for them. Mayor Grose commented that he feels this would be a good resolution to the situation. He thanked Mr. Nance, staff and the committee that worked on this issue. Mr. Nance commended Ms. Caudill who put in much time and effort into finding a place where the ramps can be used as they were intended. Mr. Obenchain asked for assurance that this organization can legally take ownership of the ramps according to state law. Ms. Dillon replied that the State Code allows the Town to donate personal Adopted Resolution No. 1827 authorizing the conveyance of 9 skate ramps to Re- newanation 8 property, real property or monies to a charitable institution that’s within or without the Town’s limits if the institution provides services to the Town’s residences. She noted that the Town would not be able to give them to an organization that is controlled by a church. She stated that they have represented in the agreement that they are such a charitable organization and intend to provide the ramps for use by children to use in the same way the Town was providing them. Mr. Nance moved to adopt proposed Resolution No. 1827 authorizing the Town Manager and/or the Mayor to convey and donate 9 skate ramps to Renewanation pursuant to the terms and conditions contained in the agreement. The motion was seconded by Mr. Obenchain and passed unanimously on a roll call vote. Mayor Grose extended his condolences to Mr. Pat Patterson on the passing of his sister. He thanked staff for all their efforts in putting the budget together and for the sacrifices they made. He commented that they are very professional and are dedicated to the Town of Vinton. He also commented that officials in other localities are aware of the Town’s quality staff and the excellent work they do. He mentioned the Downtown Revitalization meetings that have recently begun. He stated that these meetings have the possibility of leading to a grant that will allow the Town to proceed with planning projects for revitalizing the downtown area. He noted that this is a critical time for Vinton because of the challenges it is facing. He urged citizens and staff alike to stay engaged and to remain positive as we approach the downtown revitalization. Ms. Fidler commented on a couple of meetings at the War Memorial and that she had received many comments from attendees who were very impressed with the War Memorial and want to use the facility for future meetings. She stated that she hopes that those people in Town who had not supported the War Memorial improvement project, will come to see the building and find out what it is doing for the Town. Mr. Nance reiterated the Mayor’s remarks and apologized for not being able to attend the Downtown Revitalization Meetings as he was out of Town. Lieutenant Mark Vaught introduced the Town the Gladetown Neighborhood Watch Group who had met for the first time on the previous evening. Harriet Childress, a citizen from the Gladetown area, thanked the Town employees who helped save the Craig Comments from the Mayor and Council 9 Avenue Center. The Mayor invited everyone present to attend the next Town Council Meeting on June 16th. He adjourned the regular meeting at 8:35 p.m. 10 WORK SESSION 1. Downtown Revitalization Status Mr. Lawrence noted that revitalization of downtown and the neighborhoods surrounding the downtown area was one of the key focus items of discussion at Council’s retreat that was held in January. As a result of these discussions, he reported that the Town is in the process of completing the requirements to qualify for a CDBG planning grant from the Department of Housing and Community Development (DHCD). He briefly described the DHCD’s grant process and the requirements for qualifying for a planning grant that would provide funding to begin the planning process for revitalizing the downtown district. In his discussion, the Town Manager noted that a housing needs assessment had been done by staff as DHCD would be looking to see if Vinton has a problem with blighted housing in neighborhoods surrounding the downtown area and if so, they would work with the Town on this problem. Mr. Lawrence stated that staff also did a physical inventory survey of downtown businesses to see which properties are vacant and the types of businesses that are located in the downtown area as well as a business inventory survey and a business assistance inventory which documents all the resources in the Valley and at the State level with whom the Town would have access. Another step was historic resources which consisted of a letter written to the State saying that the Town may need some assistance with the project sometime in the future. The last two steps was a management team meeting on May 20th and a public meeting held on May 28th. The Town Manager advised that staff is trying to put together a plan to move forward with pulling the community together with what the vision for the Town should be; what the key strategies are; and to give some of the responsibility for the revitalization to people other than the Town’s staff. The Mayor stressed the importance of being positive that the downtown revitalization is going to be successful. Mr. Lawrence reported that one of the key things the Management Team has been tasked with is to determine the kind of project they want to move forward with if the Town does receive the grant money. He noted that the grant application would go out the next day. Mr. Obenchain inquired as to how long the grant process would take after DHCD receives the application and Mr. Lawrence replied that it would take less than a month. He went on to say that as soon the Town hears back from DHCD, the Management Team will be convened to put together a project scope that will be sent back to DHCD. He advised that it will take at least two years before any significant progress is seen. The Town Manager advised Council that the steering committee investigating the possibility of moving the Town’s Communications Department to Roanoke County, 11 12 feels that it’s time to schedule a joint meeting for the Roanoke County Board of Supervisors and Vinton Town Council to present the concept and to report on the work that has been done. Mr. Lawrence advised that he would advise Council when a final date has been set for the meeting. Mr. Lawrence announced that Elaine Carver, Chief Information Officer and John Chambliss, Assistant County Administrator, will be retiring. He noted that Ms. Carver would retire at the end of the year and Mr. Chambliss will retire at the end of the month. The work session adjourned at 9:30 p.m. APPROVED: Bradley E. Grose, Mayor ATTEST: Darleen R. Bailey, Town Clerk