HomeMy WebLinkAbout5/17/2016 - Regular1
Vinton Town Council
Regular Meeting
Council Chambers
311 South Pollard Street
Tuesday, May 17, 2016
AGENDA
Consideration of:
A. 6:30 p.m. - WORK SESSION
1. Briefing on Proposed Amended and Restated Articles of Incorporation Authorizing the
Joinder of the City of Salem, Virginia to the Roanoke Valley Resource Authority - Dan
Miles
B. 7:00 p.m. - ROLL CALL AND ESTABLISHMENT OF A QUORUM
C. MOMENT OF SILENCE
D. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG
E. UPCOMING COMMUNITY EVENTS/ANNOUNCEMENTS
F. REQUESTS TO POSTPONE, ADD TO OR CHANGE THE ORDER OF AGENDA ITEMS
G. CONSENT AGENDA
1. Consider approval of the minutes
a. Regular meeting of April 19, 2016
b. Regular meeting of May 3, 2016
2. Consider approval of the renewal of the Lease between the Town and The Advancement
Foundation for property located at 227 South Pollard Street (upper level of the Health
Department Building) for a one-year term commencing on May 17, 2016.
H. AWARDS, RECOGNITIONS, PRESENTATIONS
1. Officer of the Month for March and April 2016
2. Introduction of new Police Officers
I. CITIZENS’ COMMENTS AND PETITIONS - This section is reserved for comments and
questions for issues not listed on the agenda.
Matthew S. Hare, Vice Mayor
I. Douglas Adams, Jr., Council Member
Sabrina McCarty, Council Member
Janet Scheid, Council Member
311 South Pollard Street
Vinton, VA 24179
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J. PUBLIC HEARING
1. Consideration of public comments regarding the proposed FY 2016-2017 Town of Vinton
Budget.
a. Open Public Hearing
• Report from Staff
• Receive public comments
• Council discussion and questions
b. Close Public Hearing
c. Action to be taken on June 7, 2016
K. TOWN ATTORNEY
L. TOWN MANAGER
BRIEFING
1. Presentation of the Hotel Feasibility Study (Field Research Overview Report) for the Town
of Vinton/East Roanoke County Market Service Area from Hospitality Marketers Inc.–
Pete Peters
ITEMS REQUIRING ACTION
1. Consider adoption of an Ordinance amending Section 86-287, Itinerant Vendors
Generally; Tax Rate of Article VIII, License, Chapter 86, Taxation of the Vinton Town
Code – Anita McMillan
2. Consider adoption of an Ordinance to approve Botetourt County’s request to join the
Roanoke Valley Greenway Commission and the Amended and Restated
Intergovernmental Agreement establishing the Roanoke Valley Greenway Commission to
include Botetourt County – Anita McMillan
3. Consider adoption of a Resolution authorizing the Interim Town Manager to execute
Programmatic Project Administration Agreement (PPAA) Extension Addendum for Glade
Creek Greenway Phase 1 Revenue Sharing Project with the Virginia Department of
Transportation (VDOT) – Anita McMillan
4. Consider adoption of Resolutions:
a. Authorizing the Issuance and Sale of its General Obligation Refunding Bond,
Series 2016A in a Maximum Principal Amount Not to Exceed $702,000, and the
execution and delivery of certain documents prepared in connection therewith
b. Authorizing the Issuance and Sale of its Water and Sewer Revenue Refunding
Bond, Series 2016B in a Maximum Principal Amount Not to Exceed $1,786,000,
and the execution and delivery of certain documents prepared in connection
therewith – Barry Thompson
M. FINANCIAL REPORT FOR MARCH 2016
N. MAYOR
O. COUNCIL
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P. CLOSED SESSION
1. Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 A (1) of the 1950 Code of
Virginia, as amended, for discussion regarding the Interim Town Manager.
Q. RECONVENE AND ADOPT CERTIFICATION OF CLOSED MEETING
R. ADJOURNMENT
NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. Reasonable
efforts will be made to provide assistance or special arrangements to qualified individuals with disabilities
in order to participate in or attend Town Council meetings. Please call (540) 983-0607 at least 48 hours
prior to the meeting date so that proper arrangements may be made.
NEXT TOWN COUNCIL MEETINGS/COMMITTEES:
June 7, 2016 – 7:00 p.m. – Council meeting – Council Chambers
June 13, 2016 – 3:00 p.m. – Finance Committee Meeting – Finance Conference Room
Meeting Date
May 17, 2016
Department
Administration
Issue
Briefing on proposed Amended and Restated Articles of Incorporation Authorizing the Joinder
of the City of Salem, Virginia to the Roanoke Valley Resource Authority
Summary
Dan Miles with the Roanoke Valley Resource Authority will be present at the meeting to give
this briefing and to answer any questions.
Attachments
None
Recommendations
No action required
Town Council
Agenda Summary
Meeting Date
May 17, 2016
Department
Town Clerk
Issue
1. Consider approval of the minutes:
a. Regular Council meeting of April 19, 2016
b. Regular Council meeting of May 3, 2016
Summary
None
Attachments
April 19, 2016 minutes
May 3, 2016 minutes
Recommendations
Motion to approve minutes
Town Council
Agenda Summary
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MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 6:30 P.M.
ON TUESDAY, APRIL 19, 2016, IN THE COUNCIL CHAMBERS OF THE VINTON
MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON,
VIRGINIA
MEMBERS PRESENT: Bradley E. Grose, Mayor
Matthew S. Hare, Vice Mayor
Sabrina McCarty
Janet Scheid
MEMBER ABSENT: I. Douglas Adams, Jr.
STAFF PRESENT: Barry W. Thompson, Interim Town Manager
Donna Collins, Human Resources Director
Theresa Fontana, Town Attorney
Richard W. Peters, Assistant Town Manager/Director of
Economic Development
Anita McMillan, Planning & Zoning Director
Joey Hiner, Acting Public Works Director
The Mayor called the Work Session to order to
hear the
Recommended Budget.
on the priorities that were set for the FY 2016-2017
budget. Those were
minimal reductions, develop funding for five-year
Capital Imp
market.
The total proposed budget is $12,607,693 with
$8,623,750 in the General Fun
Stormwater Fund.
In the General Fund there is a
the transient occupancy tax from 2% to 7% which
would apply
occupancy of any room or space provided for fewer
than 30 consecutive days
changed since 1982. Revenue items in the budget
property, machinery & tools and cigarette taxes.
The total General Fund revenue has
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funding for the Walnut Avenue project. The CDBG
funds will be spent
will be completed by the end of the current fiscal
year. We are funding capital items of $85,000 and
Fund. There is
Utility Fund of $85,291, for a total of $374,984.
contributio
$49,145, which is a slight increase. The increase is
due to the addition of the Roanoke River Blueway of
$433 and an increase in the Roanoke Valley-
Valley CATV. Vice Mayor
contribution for the B
responded that the Roanoke Valley-Alleghany
to begin funding their efforts on the Blueway. Anita
McMillan commented that they are seeking
them to apply for grant money for their tourism to
begin putting up signage. The Town will be getting
branding for the Blueway to do some marketing and
to establish a separate website.
$13,150. Since a separate cost center
established for the Vinton Historical Society-
Museum, this amount has been zeroed out. Also,
increased by the additional $400 for the lease of the
additional property from the Town
States.
Improvement Fund
Medic 23 Ambulance. The $45,000
budget will be
have the funds to go 50% wi
the purchase. If we get the grant, we will only need
to have 25% of the funding.
m
The total cost estimate is over $300,000, but this
will get us started by putting the plates back into the
expansio
that
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Under personnel, we have an increase in health
insurance premiums of 8.9%. In FY 2015-2016,
there was no increase and in FY 2014-2015 it was
decreased from 12.70% to 10.74%. There are
adjustments based on an in-
study. There is no cost of living increase proposed
for members of Council.
study was completed and Mr. Thompson responded
further responded tha
with the other Council members.
U
September 30, 2016. A to
issued through three Revolving Loans, two of which
and they are programmed in the budget.
Debt service in the General Fund is $475,906 which
trustee costs.
Mr. Thompson next
which is a 3.94% decrease from the FY 2015-2016
budget. He stated that Council is usually interested
in the amount of revenue in all of the categories that
is not a part of the power point presentation. The
General Fund by the business community
50.02%.
With regard to expenditures in the General Fund, he
commented on the breakdown and pointed out that
Development budgets were due to the transfers to
the new Stormwater Fund.
Mr. Thomps
sent to Valley Metro to advise that their budget has
been held at $100,000 for this fiscal year and asked
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for this amount. At this time, no communication has
been received
that and will
Council.
Stormwater Fund. The Stormwater Fund currently
has no revenue stream.
wastewater treatment services. There are no
increases in rates for FY 2016-2017, but another
comprehensive rate structure analysis
done
Council in future rate increase decisions. The water
maintained.
Fund.
part of the meeting, the Mayor asked if
meeting
fine.
The Mayor called the regular meeting to order at
7:00 p.m. Donna Collins called the roll with Council
Member McCarty, Council Member Scheid, Vice
Mayor Hare and Mayor Grose present. Council
Member Adams was absent.
Silence, Vice Mayor Hare l
Allegiance to the U.S. Flag.
Roll call
Under upcoming community events, Council
Member McCarty
from April 27th through May 1st
begin at 2:30 p.m. on April 30th.
thanks to those who participated in the Clean Valley
to be held on May 14th from 10:00 a.m. to 5:00 p.m.
Council Member Scheid announced that April 23rd is
Earth Day and April 27th the Greenway Commission
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going on in the Town. Also, Arbor Day is April 22nd
at Herman L. Horn Elementary School.
At the Mayor’s request, Council Member Scheid
reported on the Clean Valley Day Cleanup. We
had a team of about 10 people and w
weather. The Team worked from about 9:00 a.m. to
orange bags, tw
foot long pipe and a stereo along with $2.00. It was
a very successful day and she hoped that it could
a team. She further commented that there needs to
be some follow-
problem in the Town.
Commerce is having a Business-After-
7:00 p.m.
There will be an Open House at the Museum during
to 4:00 p.m.
approve the Consent Agenda as presented; the
motion was seconded by the motion
by Vice Mayor Hare and carried by the
vote, with all members voting: Vote 4-0; Yeas (4) –
McCarty, Scheid, Hare, Grose; Nays (0) – None;
Absent (1) - Adams.
meeting of March 15, 2016
The next item on the agenda was a report on the
Vinton Volunteer First Aid Crew
first quarter of 2016.
trucks were marked up on several occasions
next commented on the volunteer and career calls
March. He also made comments on the 1st Quarter
Report.
medical personnel that
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Chief Philpott next commented they had 25
members that qualified this year for the Roanoke
County VIP, the Volunteer Incentive Program, which
is a $500.00 pay-out.
The next item on the agenda was a Proclamation
for Arbor Day.
Arbor Day C
this Friday at 1:15 p.m. in combination with the
designated as a Tree City USA for the past 14 years
requirements to retain this designation. Council
presented it to Ms. McMillan.
The next item on the agenda was a Proclamation
for National Drinking Water Week. Council Member
McCarty read the Proclamation.
Joey Hiner, Acting Public Works Director,
announced
approximately ten event
participating. Four Public Works employees placed
Jason Davidson placed second and Billy Robb
placed third. In the mini-
placed second. In the front-
Kitzmiller placed first.
event with a zero-
participated in this event. The event is put on by the
Roanoke Regional Public Works Academy.
competition on May 4th at the Berglund Center.
Under citizens’ comments and petitions, Bob
Steele of 850 Olney Road commented on the Public
contacted the Department.
The next item on the agenda was the briefing on
the
Museum at 210 East Jackson Avenue. Barry
obtained the necessary permits for the placement of
the storage building.
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Doug Forbes first commented that the Museum has
ten rooms with a little over 3,000 square feet of floor
space with over 4,000 items that are on display. A
they need to have some additional storage.
They have decided that the best solution for storage
to store items that are not on display. It needs to be
metal building with a wood frame, wh
the floor and the roof. They plan to put shelves in it
for storage.
and the Historical Society has raised the
Town.
Vice Mayor Hare asked h
ownership of the building since it is being placed on
Town owned property. Barry Thompson responded
sufficient.
Vice Mayor Hare made a motion to a
purchase of the storage building
behind the Vinton Museum; the motion was
seconded by Council Member Scheid
by the following vote, with all members voting: Vote
4-0; Yeas (4) – McCarty, Scheid, Hare, Grose; Nays
(0) – None; Absent (1) - Adams.
Mr. Forbes
water issue at the Museum.
Approved the purchase of a Leonard
Pilot Series 9’ x 12’ storage building
Avenue
The next item on the agenda was a briefing on
proposed changes to Section 86-
maximum of $50.00 annually.
become
Code, we do allow food vendors to operate on private
have permission from the property owner. Also, food
vendors are allowed during special events.
Staff has received complaints about the annual
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vendor. The City of Roanoke has reduced their
vendor fee from $500.00 to $75.00 and Roanoke
of Blacksburg has reduced their fee.
had a brief work session on February 25th. After the
Commission on March 24th
included with the Council agenda package.
Ms. McMillan next commented that staff recommends
$50.00 and offer it under the current practice that food
accordingly. For special event
property, those permits will be handled
requirements.
Vice Mayor Hare commented that he agreed with the
idea of getting
other localities. However, in the Memo, there were a
lot of questions to still be answered, so should we be
lowering the fee before we are ready. Council
Member Scheid referred to the operational standards
addressed those in their ord
separate policy with certain stipulations.
policy and only allow food t
events.
we do not have a policy. If someone comes and pays
for a permit will it be clear to them during the
permitting process what they can and cannot do.
Council Member Scheid commented
policy of the Town and stated that she does not think
problem. Ms.
discussed by the Planning Com
give a six-
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Vice Mayor Hare asked how the food vendors report
their taxes. Mr. Thompson responded that he has a
form that every bu
submit. Currently, during special events, the vendors
pay directly
Dogwood Festival the fee to be a participant at their
events.
anything else from the Town’s perspective for them to
he is
Fall Festival they will have to advise those individuals
based off of their gross sales.
responded that was correct.
The next item on the agenda was to consider
adoption of a Resolution approving the FY 2016-2017
Authority. Dan Miles, Chief Executive Officer, first
budget at their April 5th
reduction.
In previous years, they had to use the funds from the
has typically been in the $450,000 a year range. This
year they have reduced the amount from the
contingency reserve fund to $50,000. This is due to
the 2.2% reduction in the operating costs and a
It is important to note that the tonnages
actually projecting less revenue.
this fiscal year’s budget.
result of $200,000 revenue
they are using f
did look at actually zeroing
increase would have been a
instead of $0.50. They do anticipate that the number
will decrease to a zero balance in the next fiscal year.
decrease in tonnage. Mr. Miles responded that in the
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Because we are such a throwaway society, when the
recession hit in 2006-2007, we saw people eating out
less, being more careful with what they were buying
and not throwing as much away. On the commercial
end of the equation, we would put that with growth in
the economy, which is the good news. Businesses
are feeling a little more comfortable and seeing some
recovery from the recession. The residents, however,
are not quite feeling that comfort level yet. The Mayor
commented that he had hoped some of the decrease
a component, but it is not the full story.
responded they are seein
harvesting the methane gas from the landfill. To date
gas.
Mr. Miles next commented that the residential service
area grand
two weeks.
Vice Mayor Hare asked Mr. Miles to comment on the
responded they had constructed seven stormwater
ponds and had gone thro
In
different agencies to
permit application individually. They
the application to three of the four divisions and the
fourth division was unintentionally omitted.
been out
submitted, they received a penalty.
Vice Mayor Hare made a motion
Resolution as presented; the motion
by Council Member McCarty and carried by the
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
Adopted Resolution
approving the 2016-
budget of the Ro
Resource Authority
The next item on the agenda was to consider
adoption of a Resolution approving the 2016-2017
Cable Television Committee. Elaine Bays-Murphy
began by commenting on the videos produced for the
Town in 2015 which are shown on Channel 3 and
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They reach approximately 43,708 households
through Cox. In the private sector video production
would cost approximately $1,500 per finished minute,
which would equate to $226,500 in
for videos for the Town.
The budget has been approved by
number of subscribers of
is $401,044 and the Town’s portion is $16,924.
the work that RVTV does and Ms. Bays-
tur
promptly gets the information out through the Town’s
social media.
Anita McMillan commented that Ms. Bays-Murphy
stormwater that met our minimum control measures 1
very well received. Mr. Thompson commented that
this video is a great selling point for the Town.
Vice Mayor Hare asked by the line item in the budget
of longevity pay. Ms. Bays-
served for 20 years.
Member Adams for RVTV.
Council Member Scheid made a motion to adopt the
Resolution as presented; the motion
by Vice Mayor Hare and carried by the following roll
call vote, with all members voting: Vote 4-
(4) – McCarty, Scheid, Hare, Grose; Nays (0) –
None; Absent (1) - Adams.
Adoption Resolution 2141 approving
the 2016-
the Roanoke Valley Regional Cable
Television Committee
The next item on the agenda was to consider
Stormwater Management, of the Vinton Town Code
Mr. Thompson first commented that on April 5, 2016,
Council approved the Memorandum of Understanding
Management D
12
Article III has to remain in the Code because the MS-
4 Permit cannot be transferred.
Vice Mayor Hare made a motion
Ordinance as presented; the motion
by Council Member Scheid and carried by the
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
Adopted Ordinance
Code
The next item on the agenda was to consider
adoption of a Resolution authorizing the Interim Town
of an eighty (80) foot wide greenway easement to the
Town for the purpose of completing the Glade Creek
Greenway Phase 2 Project.
commented that on April 5, 2016, Council was briefed
easement and on April 12th
approved an ordinance authorizing the granting of the
easement. Vice Mayor Hare made a motion to
adopt the Resolution as presented; the motion was
seconded by Council Member McCarty
by the
voting: Vote 4-0; Yeas (4) – McCarty, Scheid, Hare,
Grose; Nays (0) – None; Absent (1) - Adams.
Adopted Resolution
documents, including a deed, for the
eighty (80) foot
Creek Greenway Phase 2 Project
The next item on the agenda was to consider
Department
$5,116.64. The repair w
insurance proceeds.
Council Member Scheid made a motion to adopt the
Resolution as presented; the motion
by Vice Mayor Hare and carried by the following roll
call vote, with all members voting: Vote 4-
(4) – McCarty, Scheid, Hare, Grose; Nays (0) –
None; Absent (1) - Adams.
Adopted Resolution
appropriating funds in the amount of
insurance claim made on a generator
at the Vinton Fire Department
The next item on the agenda was to consider
13
claim made on a 2009 Dodge Charger (Unit 1137) of
the Police Department.
a deer causing damage. VML, our insurance carrier,
estimate fro
deductible.
Vice Mayor Hare made a motion
Resolution as presented; the motion
by Council Member McCarty and carried by the
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
Adopted Resolution No. 2144
appropriating funds in the amount of
Dodge Charger (Unit
Police Department
The next item on the agenda was to consider
adoption of a Resolution approving a loan to ANBAJA
the CDBG Revolving Loan Fund
or restoration projects to create or retain
at The Barbeque Grill on Lee Street for approximately
$26,000.
Staff recently received two new applications. One
from Twin Creeks Brewing Com
purchase of equipment and interior build-
tasting room at 111 South Pollard Street. The term of
their loan is at prime for 84 months.
The second application is from S.A.S.S. Properties,
L.L.C. in the amount of $29,000 for exterior repairs to
103 Lee Avenue which is the current office of George
existing marque. The term of this loan is at prime for
84 months.
Review Committee meeting on April 30th
unanimously approved by the Committee.
Mr. Peters then recognized Andy Bishop
Creeks
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Member Scheid asked when the Brewery would
open. Mr. Bishop responded early fall or late
summer.
Mr. Bishop next expressed thanks to the Town for
the Brewery to Vinton. They looked at other locations
for business.
Council Member Scheid made a motion to adopt the
Resolution as presented; the motion
by Council Member McCarty and carried by the
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
Adopted Resolution
$25,000.00 from the CDBG Revolving
Loan Fund
The next item on the agenda was to consider
adoption of a Resolution approving a loan to S.A.S.S.
Properties, L.L.C.
the CDBG Revolving Loan Fund.
McCarty made a motion
presented; the motion was seconded by Vice Mayor
Hare and carried by the
all members voting: Vote 4-0; Yeas (4) – McCarty,
Scheid, Hare, Grose; Nays (0) – None; Absent (1) -
Adams.
Adopted Resolution
Properties, L.L.C.
$29,000.00 from the CDBG Revolving
Loan Fund
The next item on the agenda was to consider
for the contract year July 1, 2016
2017. Donna Collins began by commenting that this
still offer the same policies which
employee.
Benefit Analysis service extended the coverage years
1940. This Bill s
through age ten. We were fortunate that we did not
have to select another plan and Local Choice was still
able to offer the Key Expanded Plan.
15
Council Member Scheid asked if the cost to
employees was going up. Ms. Collins responded that
the Key Expanded Plan is going from $56 a month to
$61 a month for the employee; employee plus one is
going from $290 to $321 and the fami
choose that option.
Vice Mayor Hare made a motion
Resolution as presented; the motion
by Council Member Scheid and carried by the
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
Adopted Resolution
authorizing the renewal of the Town of
Choice Program for the contract year
July 1, 2016 through June 30, 2017
Barry Thompson commented on the paving
program for this year.
with By-
area will begin after the Dogwood Festival.
Mr. Thompson also comment
those bonds were in the five
talked with VML/VACo Financing about a refunding of
very favorable at a rate of 2.05%.
over the ten years, which would be approximately
would reduce it to about $36,000.
issues. He would bring back a full briefing to Council
at the May 3rd meeting and then have a Resolution on
the May 17th agenda for Council’s approval.
Vice Mayor Hare asked if the refunding would extend
Both would be paid off within ten years.
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Council gave their consensus to proceed with the
refunding.
The next item on the agenda was the Financial
Report for February 2016.
focusing on the budget.
From the begi
Expenditures in the General Fund
projects.
projections and the timing of projects is what is driving
the expenditures to be a little less than projected. We
are really building up the reserve to be able to deploy
that to future projects.
He expressed thanks to the Mayor for being a part of
the Finance Committee
Member Adams. The budget that has been proposed
was endorsed by the Finance Committee.
Vice Mayor Hare made a motion to a
February 2016 financial report; the motion was
seconded by Mayor Grose and carried by the
follo
Vote 4-0; Yeas (4) – McCarty, Scheid, Hare, Grose;
Nays (0) – None; Absent (1) - Adams.
February 2016
The next item on the agenda was to consider
The Mayor announced the nomination of
Hiner to the Roanoke Valley Resource Authority to fill
an
replace Gary W. W oodson
Richard W. Peters, Jr. to the
Regional Industrial Facility Authority to fill an
Gary W. Woodson. Council Member Scheid made
a motion to accept the nominations as presented;
the motion was seconded by
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with all members voting: Vote 4-0; Yeas (4) –
McCarty, Scheid, Hare, Grose; Nays (0) – None;
Absent (1) - Adams.
December 31, 2019 and Richard W.
Peters, Jr. to the unexpired term
ending February 3, 2020
The Mayor commented that he represented the
Town at the Junior ROTC Ba
event. He encouraged all of the citizens to vote at
the May 3rd election.
Comments from Council Members: Council
Member McCarty
Council Member Adams. She expressed thanks to
asked for an update on the clean-
done by the Lions Club at
Thompson responded that t
labor to assist with the clean-up efforts and he
indicated that Sheriff Orange does not h
crews available at this time. Mr. Thompson further
Lions Club regarding how any future debris cleanup
should be handled so the brush truck can pick it up.
Council Member McCarty next commented
good ideas
Ministries had approached the
at the back lot again.
Member Adams.
Council members have responded to a request from
Mr. Ramsey concerning his residential concerns
and the definition of “family”
“family” we try to follow the State Code definition,
but staff will be glad
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given 30 days to appeal staff interpretation of the
zoning ordinance
correspondence from him. Mr. Thompson
before the Planning Commission and let them make
a determination.
Zoning Ordinance,
there are funds included in the FY 2016-2017
Zoning Ordinance.
we could get a consultant to initially analy
would take from 18 to 24 months.
put out an RFP for professional services. The Town
Attorney commented that she had don
sample RFP. Ms. McMillan commented that we do
have an existing Mixed-
will help with the UDA designation.
The Mayor requested staff to review the process to
see if this is something we should go ahead and get
started with even if it is an incremental thing.
Barry Thompson continued with the overview of
the recommended budget
Fund
infrastructure improvements.
Under expenditures, a new customer account cost
center has been established. All costs
Fund that deal with billing and personnel have been
put in this cost center to provide
monthly billing cycle.
funds we are moving to the new Stormwater Fund.
With regard to the Stormwater F
Team was asked to create a
Planning and Zoning to assist in estimating the
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have included funds to continue with the
engineering study on our cost estimate for the
equivalent residential unit (ERU). The transfer to
the Stormwater Fund
$219,978 and from the Utility Fund is $79,813, for a
total transfer of $299,792.
their cost allocations.
Account had $732,330.3
mature in June,
Investment Account had $102.94. The total of cash
and investments was $3,872,083.92. The remaining
balance of the bond proceeds sh
June 30th, which goes to the Western Virginia Water
Authority for the Wastewater Treatment Plant.
In closing, Mr. Thompson commented that if Council
would want to adopt the budget by June 7th
would need to advertise a Public Hearing
17th. This advertisement would need to run twice in
the Vinton Messenger on May 5th and May 12th.
We can advertise a budget and can make changes,
Council would like to have additional work sessions,
we can schedule those as needed.
Vice Mayor Hare made a motion
the budget as presented; the motion
by Council Member McCarty and carried by the
following vote, with all members voting: Vote 4-0;
Yeas (4) –
– None; Absent (1) - Adams.
Approved advertisement of Notice of
Public Hearing for the budget
Vice Mayor Hare made a motion to adjourn the
meeting; the motion was seconded by Council
Member McCarty
with all members voting: Vote 4-0; Yeas (4) –
McCarty, Scheid, Hare, Grose; Nays (0) – None;
Absent (1) - Adams. The meeting was adjourned at
Meeting adjourned
APPROVED:
20
________________________________
Bradley E. Grose, Mayor
ATTEST:
__________________________
Susan N. Johnson, Town Clerk
1
MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M.
ON TUESDAY, MAY 3, 2016, IN THE COUNCIL CHAMBERS OF THE VINTON
MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON,
VIRGINIA
MEMBERS PRESENT: Bradley E. Grose, Mayor
Matthew S. Hare, Vice Mayor
Sabrina McCarty
Janet Scheid
MEMBER ABSENT: I. Douglas Adams, Jr.
STAFF PRESENT: Barry W. Thompson, Interim Town Manager
Susan N. Johnson, Town Clerk
Paul Mahoney, Town Attorney
Richard W. Peters, Assistant Town Manager/Director of
Economic Development
Anita McMillan, Planning & Zoning Director
Joey Hiner, Acting Public Works Director
Anne Cantrell, Accounting Manager
The Mayor called the regular meeting to order at
7:00 p.m. The Town Clerk
Council Member McCarty, Council Member Scheid,
Vice Mayor Hare and Mayor Grose present
Council Member Adams was absent.
Moment of Silence, Council Member McCarty led
the Pledge of Allegiance to the U.S. Flag.
Roll call
Under upcoming community events, Council
Member McCarty announced the
Wine Festival on May 21st at the War Memorial and
the first Mingle at the Market is June 11th also at the
Storytelling Festival on May 14th
2:00 p.m. at the Museum and the Library on Pollard
Sport Complex on May 14th
Fest is June 4th
Wasena Park.
Vice Mayor Hare made a motion to
seconded by the motion was seconded by Council
Member Scheid and carried by the
with all members voting: Vote 4-0; Yeas (4) –
McCarty, Scheid, Hare, Grose; Nays (0) – None;
2
The next item on the agenda was a Proclamation
for
read the Proclamation and presented it to the Police
Department.
The next item on the agenda was a Proclamation
for
read the Proclamation.
The next item on the agenda was a Proclamation
for National Emergency Medical Services Week.
Fire-EMS Department.
Vice Mayor Hare commented on the Proclamations
being for the same week in May and
together for the common good of the citizens.
The next item on the agenda was a report for April
Chief W
possible hours the truck was marked up 586 hours or
125%
there were 250 calls. Of 134 total volunteer calls,
the responded to
marked up 84% and the BLS Unit was 16%
were 1,813 man hours for April and the Fractile
Response was 9.78. They h
the Dogwood Festival.
The next item on the agenda was to consider
adoption of an Ordinance amending Section 86-
Vinton Town Code.
that this item needs to be tabled until the May 17th
that need to be reviewed from the
before our Ordinance can be adopted.
Vice Mayor Hare made a motion to table the matter
to the May 17th meeting; the motion
by Council Member McCarty and carried by the
following vote, with all members voting: Vote 4-0;
Yeas (4) –
Tabled the adoption of an Ordinance
amending Section 86-
Taxation of the Vinton Town Code to
th
3
The next item on the agenda was a briefing on the
advance refunding of Series 2006 callable Bonds and
advance refunding of Series 2007 Callable Bonds
working with VML/VACo Finance
bonds. There would be a savings of $8,626 annually
on the 2006 issue and $14,342 annually on the 2007
Mulroy with VML/VACo for his presentation.
first giving a brief h
services in three areas--
next commented on their mission and the fact that
they have made over $850 million in loans to Virginia
local governments through its lending programs since
leasing program and a commercial paper program.
The fixed rate loan program is the easiest, lowest cost
financing source for loans and leases up to $20-25
million. You can apply and
be used for other purposes.
They issued
banks which included local banks in the Town as well
as regional and national banks.
that were received and then made a
recommendation. Once Council
refunding, they will
winning bid to put the loan documents together and to
ensure a smooth closing.
Mr. Mulroy next commented that the 2006 loan was a
general obligation bond and
that same pledge. The 2007 bond was for water and
new loan will have the same pledge. The total size of
off the existing loans
interest. Both loans will be tax exempt. Carter Bank
May 25th.
set up to match
st st
4
new bonds are callable at any time without any pre-
payment penalty.
Mr. Mulroy next gave a summary of the current bonds
and a summary of the savings. He noted that the
with refunding or not is if the present value savings in
refunded is higher than
here is about 12.2% which is well in excess of that
threshold.
and Mr. Mulroy responded yes
or not and Mr. Mulroy comment
look into it and report back to the Mr. Thompson what
the options are.
principal. Mr.
shortening the term, which is also an option.
program and Mr. Mulroy responded that it is a lease-
Thompson commented that we used this program for
program could do for us the next time we lease police
vehicles.
The next item on the agenda was a briefing on the
Greenway Phase 1 Revenue Sharing Project. Anita
McMillan commented that
authorize the Interim Town Manager will be presented
at the May 17th meeting for Council’s approval.
The next item on the agenda was briefing on
Botetourt County’s request to join the Roanoke Valley
Restated Intergovernmental Agreement establishing
5
include Botetourt County. Anita McMillan commented
that i
Valley—
County and the Town of Vinton entered into an
Intergovernmental Agreement. The Conceptual Plan
was updated in 2007
Agreement was revised. Since that time, a lot of
Greenway trail work has been completed.
When the Greenway Co
request from Botetourt County last fall
members of the
recommended amendments to the Intergovernmental
Agreement that has been reviewed by the attorneys
for the localities and has been
localities take action before the end of this fiscal year.
The City of Salem has already adopted an Ordinance.
She also commented
Troutville and Buchanan would be a part of Botetourt
County and not have separate representation like the
considered separate members.
commented they will pay their membership fee based
town populat
are a separate member.
has been forwarded to the other three localities to get
their comments. The bid has been prepared and will
be advertised once the site plan has been approved.
The Mayor commented on the success of the
Gauntlet Event.
The Mayor next announced the
Election—
received 182 votes. He was also re-
another four-year term.
6
Comments from Council Members: Vice Mayor
Hare commented on the success of
Scheid, Keith Liles and the Mayor.
week as part of
honored to be elected to Council.
commented on the Dogwood Festival.
Council Member Scheid made a motion to
adjourn the meeting; the motion was seconded by
Vice Mayor Hare
with all members voting: Vote 4-0; Yeas (4) –
McCarty, Scheid, Hare, Grose; Nays (0) – None;
Absent (1) - Adams. The meeting was adjourned at
APPROVED:
________________________________
Bradley E. Grose, Mayor
ATTEST:
__________________________
Susan N. Johnson, Town Clerk
Meeting Date
May 17, 2016
Department
Administration
Issue
Consider approval of the renewal of the Lease between the Town and The Advancement
Foundation for property located at 227 South Pollard Street (upper level of the Health
Department Building) for a one-year term commencing on May 17, 2016.
Summary
The Advancement Foundation has submitted the required written request for a one-year renewal
of the Lease with the Town for the upper level of the Health Department Building.
Attachments
Lease Agreement dated April 21, 2016
Letter from The Advancement Foundation
Recommendations
Motion to approve renewal of lease
Town Council
Agenda Summary
Meeting Date
May 17, 2016
Department
Police
Issue
Officer of the Month for March and April 2016
Summary
Corporal James Spence was selected as Officer of the month for March and ATF/Detective Craig
Frye was selected as Officer of the Month for April. Both will be recognized at the meeting
Attachments
Memo from Chief Foster-March
Memo from Chief Foster-April
Recommendations
Read Memos
Town Council
Agenda Summary
Meeting Date
May 17, 2016
Department
Police
Issue
Introduction of new Police Officers
Summary
Chief Foster will introduce new Officers in the Police Department.
Attachments
None
Recommendations
None
Town Council
Agenda Summary
1
Meeting Date
May 17, 2016
Department
Administration
Issue
Consideration of public comments regarding the proposed FY2016-2017 Town of Vinton Budget
Summary
The FY 2016-2017 annual budget represents the dedication the staff has to delivering excellent
services to its citizens and continuing to be fiscally responsible and transparent. The Proposed
Budget before you supports hundreds of services that are delivered by the four operating
departments and four administrative offices. The budget document is one of the most important
policies established by Council to convey to staff and the community priorities, levels of
services, and investment in the community.
The budget document includes a great deal of information which is intended to explain what and
why of government services provided by the Town of Vinton.
Council’s commitment to sound fiscal decision-making is again reflected in this budget as in
previous years. The citizens of Vinton expect quality services, prompt snow removal,
professional law enforcement, professional land use and development guidance, quality
community and recreation facilities, clean and well-maintained streets, quality neighborhoods,
dependable water and sewer service, responsive solid waste and recycling collection and many
other quality municipal services. Our citizens expect that these services be provided with
minimal reliance on real estate taxes. Real estate tax revenue only accounts for 3.97% of the
Town’s total general fund revenues with a tax rate of $0.07/$100 of assessment value. The town
did see real estate assessments increase by approximately 0.62% with the 2016 reassessment.
The Proposed FY 2016/2017 budget includes an increase of the transient occupancy tax rate
from 2% to 7% of the total amount of charge for the occupancy of any room or space provided
for fewer than 30 consecutive days. This recommended increase will be used for visitor
attraction and quality of life initiatives. The transient occupancy tax has not been changed
since 1982.
Town Council
Agenda Summary
2
Capital Improvement Program:
The CIP is intended to be a five year plan for building, equipment, and major purchases for the
town. Approximately $1,901,879 worth of needs were identified and submitted by departments
for the FY 2016/2017 budget year. The proposed budget includes funding of only $85,000 in the
General Fund of these needs and it defers the remaining projects to future years. The following
projects are included the budget for funding:
1. Replace Medic 23 Ambulance $55,000
2. Bridge Maintenance (Garthright Bridge) $30,000
Total General Fund $85,000
Capital improvement projects funded in the Utility Fund were in the amount of $305,250. The
projects included:
1. Meter Reading System Upgrade $ 25,000
2. Mini-Excavator $ 34,000
3. Skid Steer Loader, Tracked $ 44,000
4. Devonshire Drive Water Line Replacement $ 9,000
5. Peake Street/Pitt Avenue Water Line Replacement $ 14,200
6. Aragona Drive Water Line Replacement $ 9,540
7. Landfair Water Line Replacement $ 8,400
8. Sewer Rodding Machine $ 63,000
9. Sewer Line Acoustic Inspection System $ 22,000
10. Generator Connection (Stonebridge Well) $ 10,500
11. Generator Connection (Spring Grove Well) $ 10,500
12. Design and Engineering, 3rd Street Sewer Lift Station $ 10,000
13. Feather Road Sewer Line Replacement $ 22,600
14. Gearheart Park Sewer Replacement Phase II $ 22,600
Total Utility Fund $305,250
Downtown Revitalization (Community Development Block Grant):
The Town received notification of the $700,000 Block Grant Award in 2012 to assist with
revitalization of our downtown. The grant is funded through a Federal Government and
administered through the Virginia Department of Housing and Community Development with a
September 30th 2016 deadline for completion. The Town utilized its commitment to assist with
the purchase of property for the relocation of the Vinton Branch Library to leverage the CDBG
funds.
The revitalization efforts focus on four key areas: (1) streetscape improvements, (2) business
facade improvements, (3) branding and marketing of the downtown, and (4) a revolving loan
fund to support business development. The grant is managed by the Assistant Town Manager,
with guidance provided by a Project Management Team comprised of Town Officials and
Community Stakeholders.
Multiple aspects of the initial planning and administration phases of the project have been
completed to date to include creating the necessary contracts and other guiding documents for
the project and conducting the various required environmental and historic reviews. In addition,
3
$83,000 has been issued through three revolving loans for building renovations and job
creation, the "In-Vinton" brand was developed along with the associated downtown shopping
guide, as well as the completion of sidewalk improvements and the replacement of the street
lamps on Pollard and Lee Streets.
Several key aspects remain for the revitalization project and are set to be completed by
September. The remaining projects include as many as seven business facades to be renovated,
downtown park bench and trash receptacle replacements, interior way-finding sign fabrication
and installation, and the Farmers Market Stage restoration and expansion.
Economic Development
The Town of Vinton continues to work independently and collectively with other local and
regional partners to pursue a variety of economic development activities to expand and diversify
the local economy.
Two key areas of focus for the Town in recent years has been to place an emphasis on “In-Fill”
and “Up-Fill” development by targeting underutilized properties to market for new business
ventures. While this approach primarily addresses the issue of the Town being essentially
landlocked and with few large parcels of undeveloped space to actively market, this approach
also can prove to be financially beneficial to the prospective developer or business owner
looking to expand.
Due to many underutilized properties already having utilities, necessary zoning and existing
infrastructure needs, those assets coupled with attractive local and historic tax incentives can
often be a more affordable solution and provide a quicker turn around for being open for
business as opposed to an entirely new construction.
In partnership with Roanoke County, Vinton has recently began to realize some success in these
strategies with the relocation of companies like Magnets USA to a former vacant building, as
well as the recent sale of the former Roland E. Cook, former William Byrd High School and the
River Park Shopping Center to private real estate developers for new housing and retail
opportunities.
In addition, likely development of the old Vinton Branch Library, former Vinton Motors
Dealership and interest the Gish Mill Property prove that the Town is primed to continue to take
advantage of this approach into the foreseeable future.
Water and Sewer Fund:
The maintenance, operations, and investment in our water and sewer system are a fundamental
government service. We have recognized the significant needs in our aging utility system and
diligently work to keep it functioning. However, in the upcoming 10-15 years, significant
investment will be required to replace water and sewer lines, pump stations, and equipment. The
Proposed FY 2016/2017 budget as presented is balanced. In the FY 2016/2017 budget, there is
no proposed rate increase.
A comprehensive rate structure analysis was presented to Council in January 2013. Council
adopted as part of the FY 2013/2014 Budget an 8.7% water and sewer rate increase. As part of
the Cost of Service Study an 8.9% rate increase in water and sewer rates was approved for both
FY 2014/15 and FY 2015/16 which will provide funding for infrastructure needs, capital needs
and reserve funds needed in the Utility Fund. To continue to provide funding to maintain our
4
water and sewer system, it will be necessary to do another comprehensive rate structure analysis
during the FY 2016-2017 budget year to assist Council in making a sound decision concerning
future rate increases.
Stormwater Fund:
In the FY 2016/2017 budget expenditures were identified in the general fund and utility fund
relating to stormwater were transferred to a new fund. This will assist staff and Council in
knowing the dollar amounts associated with the costs of stormwater management in order to
make a sound decision on a future stormwater utility fee in the Town. Funding is needed to
ensure that Town will continue to stay in compliance with the stormwater permits requirements
and the additional Total Maximum Daily Loads (TMDL) Action Plans requirements.
CONCLUSION
While this is primarily a maintenance budget, we have been able to maintain our staffing levels
and provide for salary increases and market adjustments. The Proposed FY 2016-2017 budget
also recognizes economic development initiatives throughout the Town which will create
synergy and bring continued growth to our Vinton economy. Through this budget, we will
continue to make Vinton the “IN” place to live, work and play.
Members of the Town staff are available to assist and support the Town Council during your
deliberation on this Proposed Budget. We will provide any additional information or data you
may need during your review of the objectives and proposals included in this document. Copies
of the FY 2016/2017 Proposed Budget are available in the Town Manager’s Office, as well as
the Treasurer’s Office and on the Town’s web site at www.vintonva.gov. Finally, a document of
this size and magnitude is a product of many individuals. Each Town staff member who
contributed to the development of this Proposed Budget is to be commended. Pete Peters,
Assistant Town Manager, Susan Johnson, Executive Assistant/Town Clerk, Anne Whitehurst,
Accounting Manager and Donna Collins, Human Resources Director led to the development of
this budget. In addition, the department heads spent countless hours on all matters contained in
this budget. Without these individuals, this budget would not be possible. Lastly, Town Council
has spent a significant investment in their time to provide leadership and guidance so that the
values and priorities of the community are maintained to the greatest extent possible within our
financial means.
Attachments
None
Recommendations
Conduct Public Hearing, action to be taken on June 7, 2016
Meeting Date
May 17, 2016
Department
Administration
Issue
Presentation of the Hotel Feasibility Study (Field Research Overview Report) for the Town of
Vinton/East Roanoke County Market Service Area from Hospitality Marketers Inc.
Summary
The Town of Vinton and Roanoke County Economic Development agreed in August 2015 to
jointly solicit a consultant to conduct a Hotel Feasibility Study for the Town of Vinton and East
Roanoke County Market Service Area to determine the potential for the area to support a Hotel
Development.
A Request for Proposals (RFP) was issued in September and the Town contracted with Hotel
Marketers Inc in December to conduct the study to include an overview of the Roanoke Valley
Hotel Market, specific site review within Vinton and Eastern Roanoke County and analysis of
the data collected in order to provide recommendations.
A final draft report was presented to TOV and Roanoke County staff in April and highlights of
the report have been prepared for Council’s review.
Attachments
Hotel Feasibility Study (Field Research Overview Report).
Recommendations
No action required
Town Council
Agenda Summary
FIELD RESEARCH
OVERVIEW REPORT
VINTON, VIRGINIA
APRIL, 2016
Prepared Exclusively for:
Town of Vinton, Virginia
Prepared by:
Hospitality Marketers International, Inc.
Gregory R. Hanis, ISHC
President
Hospitality Marketers
International, Inc.
Management
Research
Marketing
Gregory R. Hanis, ISHC
President
ghanis@hospitalitymarketers.com
262-490-5063
Member of
Professionally Serving the United
States & Canada Since 1982
Offices in
Milwaukee, Wisconsin and
Fort Myers, Florida
5415 S. Majors Drive
New Berlin, WI 53146
10014 Majestic Avenue
Fort Myers, FL 33913
800-657-0835
Fax: 239-245-8161
hmi@hospitalitymarketers.com
www.hospitalitymarketers.com
Hotel Service Network
HMI Inc.
TABLE OF CONTENTS
Vinton, Virginia
Introduction/Objective ............................................................................................. 1
Proposed Property Description .............................................................................. 1
General Market ....................................................................................................... 2
Exhibits ................................................................................................................... 2
Subject Site ........................................................................................................ 3-4
Economic Observations ...................................................................................... 4-6
Lodging Demand .............................................................................................. 6-11
Social/Leisure
Corporate/Commercial
Lodging Supply ............................................................................................... 11-15
Historical Lodging Performance
Conclusions .................................................................................................... 16-18
Preliminary Operational Projections
Recommendations
Preliminary Benchmark Development Costs (BDC)
2
EXHIBITS
Vinton, Virginia
Exhibit 1 - Geographic Relationship of the Subject Market to the Mid-Atlantic
and East-Central Region of the United States and State of
Virginia Including the Primary Regional Market Area Served
Exhibit 2 - Geographic Relationship of the Subject Market Area to the
State of Virginia and City of Roanoke Including the Local
Market Area
Exhibit 3 - Vinton Subject Market Area Along with the Preferred Site Area
and Primary Competitive Hotels
Exhibit 4 - Economic Radii Analyzed in this Report
Exhibit 1 - Geographic Relationship of the Subject Market to
the Mid-Atlantic and East-Central Region of the
United States and State of Virginia Including the
Primary Regional Market Area Served
2
Exhibit 2 - Geographic Relationship of the Subject Market
Area to the State of Virginia and City of Roanoke
Including the Local Market Area
3
Exhibit 3 - Vinton Subject Market Area Along with the
Preferred Site Area and Primary Competitive
Hotels
Holiday Inn Express
Best Western Plus Comfort Inn Hyatt Place Hampton Inn & Suites
Cambria Suites Ramada Inn
Days Inn Rodeway Inn
Ford Site
War Memorial Site
Vinton Business Center Site
East 460 Sites
4
Exhibit 4 - Economic Radii Analyzed in this Report
INTRODUCTION/OBJECTIVE
The following Field Research Overview Report was prepared based upon the field
research performed by Hospitality Marketers International, Inc. in December, 2015
and additional research performed in January and February, 2016. This report
provides an overview of the highlights observed in Vinton, Virginia and the
surrounding Roanoke County market area. It provides preliminary Operational
Projections for this market’s ability to support a limited service, mid to upper-midscale
hotel in this market. The report also includes preliminary projections for this market
supporting up to an 60-room hotel.
Recommendations will be provided for continuation of the Hotel Market Study, based
upon the research presented in this report, in the form of a complete Comprehensive
Hotel Market Study. At that point, the decision to perform additional Hotel Market
Research can be made.
As an overview report with preliminary Operational Projections and recommendations,
this report is intended to be used as an internal document and not for external
purposes, such as investment or lending activity. It is intended to determine if further
research of the subject market is necessary and if a more detailed Hotel Market study
should be completed. In a full Hotel Market Study, these preliminary report comments
would be expanded and presented with more detail.
This report is the sole property of the Town of Vinton, Virginia. This report cannot be
used without the expressed written permission of the Town of Vinton or another
appropriate representative.
PROPOSED PROPERTY DESCRIPTION
It was requested that this fieldwork research report investigate the potential feasibility
of developing a limited service, midscale hotel. Recommendations will be provided
regarding the suggested size of the proposed hotel as well as the price category,
amenities and brand. Recommendations for these amenities and the potential
financial support level will be provided later in this report.
2
GENERAL MARKET
The Vinton area is located in the west central section of the State of Virginia.
Vinton is an eastern suburb of the City of Roanoke and it is located 4 miles
west of the center of Roanoke.
o It is situated 7 miles southeast of the Roanoke-Blacksburg Airport.
o Vinton is located 3 miles east of the Interstate 581 and Orange
Avenue/Highway 220 intersection. This is the main access route to the
Vinton area.
The Town of Vinton is a Roanoke suburb that is heavily residential and
commercial in nature. There is corporate, industrial and distribution activity
in the surrounding market area. There is also tourism in the region with the
Blue Ridge Parkway, a U.S. National Park, running through the south side of
Vinton. The large residential base in the area also contributes traditional
social/leisure activities including weddings, reunions, funerals, youth/amateur
sports, festivals etc.
EXHIBITS
The following exhibits describe the geographic location of the subject market and
subject site.
Exhibit 1 of this report shows the geographic relationship of the subject
market to the Mid-Atlantic and East-Central region of the United States and
State of Virginia. The regional market served is also shown.
Exhibit 2 shows the geographic relationship of the subject market area to the
State of Virginia and City of Roanoke.
Exhibit 3 of this report shows the Vinton subject market area along with the
preferred subject site.
Exhibit 4 of this report shows the economic radii analyzed in this report.
3
SUBJECT SITE
There were several potential site areas identified and reviewed during the
field research stage of this report. These were in the Town of Vinton and
were located at:
o WAR MEMORIAL SITE - East Washington Avenue South and Blue
Ridge Lane. This site is owned by the Town of Vinton. The Town is
interested in developing this site. This site is along East Washington, a
well-traveled street in the Town.
o VINTON BUSINESS CENTER SITE - Hardy Road just west of the Blue
Ridge Parkway. This site is jointly owned and managed by the Town of
Vinton and by Roanoke County. Both are interested in seeing this site
developed. Currently, there is one company located in the Center,
Cardinal Glass. Support Services are not in the immediate site area but
are located about a mile away. It also has excellent access to the Blue
Ridge Parkway, the developing Explore Park and on the primary travel
route to and from Smith Mountain Lake.
o FORMER FORD MOTOR DEALERSHIP SITE - East Washington
Avenue and South Pollard Street in the southeast corner this
intersection. This is a privately owned site that is located in the
downtown area of the Town. It is the closest site to Highway 460. East
Washington Avenue is a well-traveled street in Vinton.
o EAST 460 SITES - Highway 460. There is a series of privately owned
sites located within East Roanoke. These sites are located by the
Roanoke Center for Industry and Technology. Four sites are currently
available in the immediate area.
All four of these sites have potential to serve as a site for a hotel.
The following chart highlights the support level characteristics of this subject
site area.
4
VINTON SITES COUNTY SITE
SITE LOCATION War Memorial Vinton Business Center Ford Site East 460 Sites
CATEGORY RATING RATING RATING RATING
Visibility Very Good Good Very Good Excellent
Accessibility Excellent Excellent Excellent Excellent
Land Prep Good-Investigate Good-Investigate Good-Investigate Good-Investigate
Environmental Good-Investigate Good-Investigate Good-Investigate Good-Investigate
Major Utilities Very Good-Investigate Very Good-Investigate Very Good-Investigate Very Good-Investigate
Zoning Very Good-Investigate Very Good-Investigate Very Good-Investigate Very Good-Investigate
Architectural Controls Very Good-Investigate Very Good-Investigate Very Good-Investigate Very Good-Investigate
Area Support Services Very Good Good Very Good Very Good
Competitive Position Good Good Good Very Good
Ownership Town Town/County Private Private
Overall Very Good Very Good Very Good Very Good
Source: HMI
SUBJECT SITE EVALUATION
Overall, these subject sites appear to all be rated Very Good for hotel
development. The highest Overall Rated Site is the East 460 Site area,
followed by the War Memorial and former Ford Sites. The lowest Overall
Rating is for the Vinton Business Center. However, all of the ratings are in a
very narrow range and vary by only .3 points in their Overall Rating.
Two of the Site Areas, War Memorial and Vinton Business Center, are
controlled by the Town and/or the County. The other Site Areas are privately
owned.
A more detailed evaluation/analysis of the proposed site would be provided
in a Comprehensive Hotel Market Study. This would include factors such as
Land Preparation, Visibility, Accessibility, Environmental, Support Services
and Competitive Position.
ECONOMIC OBSERVATIONS
The following section highlights the overall economic characteristics of this market area.
The Vinton area was defined as a blue collar, middle income residential community.
The Population is made up of self-employed service technicians (plumbers,
electricians, HVAC, carpenters, etc.). There is a commercial aspect that supports
the local residents. Most of the residents commute from Vinton for work.
The broader market is more diverse and developed. The large Roanoke Center
for Industry and Technology is located just east of Vinton off Orange Avenue.
Also, west along Orange Ave at I-581, there is additional corporate commercial
activity. Lastly, Orange Avenue is a highly developed commercial area with
retail, restaurants and service facilities. The broader market also has a large
residential base ranging from middle income to upper income areas.
5
The chart below shows the Population and per capita income in this market area.
The one-mile radius provides a focus on the Town of Vinton while the four-mile radius
includes the surrounding market area.
GENERAL MARKET DEMOGRAPHICS
VINTON, VA
RADIUS: 1 Miles
ANNUAL ANNUAL
2010 2015 PERCENT PERCENT 2020 PERCENT PERCENT
CENSUS ESTIMATE CHANGE CHANGE PROJECTION CHANGE CHANGE
POPULATION 7,730 7,744 0.2%0.0%7,857 1.5%0.3%
AVERAGE PER
CAPITA INCOME $15,000 $23,227 54.8%11.0%$26,198 12.8%2.6%
RADIUS: 4 Miles
POPULATION 76,728 78,652 2.5%0.5%81,344 3.4%0.7%
AVERAGE PER
CAPITA INCOME $16,814 $23,105 37.4%7.5%$25,559 10.6%2.1%
Source: Claritas
A review of the previous chart indicates that the immediate Vinton/one mile
area has seen little growth in Population. It was reported that Vinton is about
85% built-out with current and future re-development opportunities in the
area. A slight growth in Population is estimated in the next few years.
The primary traffic routes through the Vinton market are Orange Avenue
(Highway 220), Gus W. Nicks Boulevard NE, and East Washington Avenue.
Historical traffic counts on Orange Avenue indicate a range of 32,000 to
40,000 vehicles per day in the area of Gus W. Nicks Boulevard for an
average of 36,000 vehicles per day. The average traffic growth rate from
2008 to 2014 was 1.3% per year with a range of 1.1% to 1.4% per year. .
In 2013, the top three employment industries in the immediate market were
Health and Social Services at 11.4%, Manufacturing at 10.2%, and Retail
Trade at 9.1%. This indicates that employment in market area is only slightly
reliant on these top industries since they generate 30.7% of the overall
employment in the town. This is encouraging because typically the top three
employment industries should generate less than 50.0% to indicate good
diversity of employment. This indicates that this market has good diversity of
employment to support a hotel.
o In 2008, these same three industries generated 40.7% of the employment.
This indicated that the market improved in employment diversity.
o There were 9 industries with increased employment and 12 industries with
decreased employment.
o Overall, employment decreased by (17.6%) from 2008 to 2013.
6
Current data through calendar year 2015 indicates that Vinton has a 3.4%
unemployment rate. This compares with Roanoke County at 3.4% and the
State of Virginia at 4.4%. The historic unemployment rates from 2005 to 2015
are 4.2% in Vinton, 4.4% in Roanoke County, and 5.1% for the state. Overall,
the unemployment rate in Vinton is positive when compared to the county and
state.
o Ranging from 4.2% to 4.4%, this is at the low end of what economists
consider full employment (4%-5%). As a result, there could be some labor
Supply and/or wage pressures within the Service industry.
The closest commercial airport is the Roanoke-Blacksburg Airport about seven
miles from the Vinton. This is a regional airport that offers daily flights to
national hub cities.
A more detailed evaluation/analysis of the macro market economics would
be provided in a Comprehensive Hotel Market Study.
LODGING DEMAND
The chart below shows the current distribution of Lodging Demand from the
Corporate/Commercial and Social/Leisure market segments as well as the
anticipated Lodging Demand for the proposed hotel in Vinton.
MARKET SEGMENTATION
As seen in the above chart, the subject market and the overall market will
have different market segmentations. This is because the Vinton market is
not as diverse as that of the Competitive Hotel Set market, which is defined
for this report and will be defined in the Lodging Supply section. The
Competitive Hotel Set market which include an interstate highway location
7
closer to downtown Roanoke and the airport. The Vinton market
segmentation will be more self-contained to Lodging Demand that is in the
immediate area. This area includes Orange Avenue and ranges from I-581
to the west to the Roanoke Center for Industry and Technology to the east.
This is within the 2-mile radius of this market.
The subject market will have slightly less Individual and Group
Corporate/Commercial Lodging Demand (35%) than in the Competitive Set
market (55%). There will be the potential for more Individual and Group
Social/Leisure Lodging Demand (65%) than in the overall Competitive Hotel
Set market (45%).
The chart below shows an overview of the Lodging Demand sources in the
Vinton market area.
Transient = T Subject
Extended= E Property
Group= G Potential
Social/Leisure Markets
Visiting Friends & Relatives T, E Very Good
Area Sites & General Tourism
Blue Ridge Parkway Travelers T,G Very Good
Explore Park
Area Events T Very Good
Area Recreation- (Boating, Hiking, Biking, Hunting, Fishing, etc.)T Very Good
Weddings G Excellent
Reunions G Very Good
Funeral G Good
Other G Good
Motor coach Tours G Good
Amateur Youth Sports- Roanoke Area T, G Good
P otential Very Good
Corporate/Commercial Markets
Agriculture NA
Mining, Quarrying & Oil and Gas Exploration NA
Utilities T, E, G Fair
Construction T,E Good
Manufacturing T,E,G Very Good
Wholesale Trade T Good
Retail Trade T Good
Transportation and Warehousing T Good
Information T Good
Finance, Insurance and Real Estate T Good
Real Estate, Rental & Leasing T Good
Services
Professional, Scientific & Technical T,E Good
Management of Companies and Enterprises T Good
Administrative, Support, Waste Management and Remediation T Good
Educational T,E Good
Health and Social Assistance T,E Very Good
Arts, Entertainment & Recreation G Good
Accommodation & Food Services T Fair
Other T,E Fair
Public Administration T Fair
Corporate Business Groups T Good
Professional Business Associations T Fair
P otential Good
Overall P otential Good
Source: HMI
MARKET SEGMENTATION PROFILES
Demand Potential
8
SOCIAL/LEISURE
A large portion of this demand segment will likely come from visiting family
and friends. This demand was reported to come to the subject market area
from regional and national markets for weddings, family reunions, funeral and
some local events.
There are a number of annual events in the area that were reported to draw
visitors from the regional and national area. The largest event in the town is
the Dogwood Festival held in April. There is also a Wine Festival held in May
at the War Memorial. In October there is a Fall Festival.
The Blue Ridge Parkway is a 469-mile route that connects the Great Smoky
Mountains National Park in North Carolina to the Shenandoah National Park
in Virginia. It is also a unique national park that runs through the area on the
south side of Vinton. Traffic Counts on the parkway were not available for
this report.
Explorer Park is located just south of Vinton. This is a developing 1,000-acre
recreational area that will be an attribute to the subject market area. At this
time, the Lodging Demand potential is undefined. The Visitors Center
reported over 19,000 visitors in 2015 with 38,000 visitors reported for all
events at Explorer Park.
In the Vinton area, there are five wedding venues. All of these are very
active and will generate the need for hotel rooms.
A sports complex in the area hosts youth/amateur baseball and soccer
events. Per the Chamber of Commerce, they refer guests to the Cambria
Suites in Roanoke as the preferred hotel.
More detailed analysis of this Social/Leisure market segment would be
provided in a full Comprehensive Hotel Market Study.
CORPORATE/COMMERCIAL
It was reported that Vinton is made up of many self-employed residents in the
service areas. This includes painters, carpenters, electricians, plumbers, HVAC
service technicians, etc.
In addition to this, there is a commercial and retail base in this market. This activity
is mainly supporting the local residents with little destination retail.
To further support local residents, there are professional services including
accounting, legal, financial, etc.
9
There are several larger employers in the market. These firms have varying
degrees of Lodging Demand that add diversity to the Corporate/Commercial
market segment. These companies include:
Cardinal Glass Industries- 240 employees
Precision Fabrics Group- 204 employees
Berkshire Healthcare- 200 employees
Coca Cola Bottling – 175 employees
Integrity Windows and Doors- 170 employees
Aramark Uniform Services- 100 employees
East of Vinton in the Roanoke Center for Industry and Technology, there are
several other large employers. Again, they create various degrees of Lodging
Demand potential and add to the diversity and depth of the subject market.
These companies include:
Advance Auto Distribution Center
Cooper Industries
Elizabeth Arden Distribution Center
Orvis
Semco Duct and Acoustical
Wholesome Harvest Bakery
The diversity of these companies indicate the potential for the following types
of Corporate/Commercial Lodging Demand currently coming into the area for
overnight stays.
Auditors
Corporate/home office executives
Customers
Distribution Activity
Equipment service technicians
Sales Activity
Training sessions
Vendors/Suppliers
This Corporate/Commercial Demand was reported to be driven primarily by
the region. However, there is also the potential for national and international
demand.
Berkshire Health Care is a recovery center that also provides long-term care
in this area.
10
In the research for this report, the Group market segment was not well-
defined. This would need to be developed in more detail in a
Comprehensive Hotel Market Study. At this time, the 5% Group market
identified in the Market Segmentation was thought to be possible for the
proposed limited-service hotel.
More detailed information and analysis of the Corporate/Commercial market
segment presented in this section of the Field Research Hotel Evaluation
Report would be provided in a Comprehensive Hotel Market Study.
To analyze Lodging Demand in the subject market area, a Competitive Set of hotels
in the Vinton area was identified. These are the hotels that local officials indicated
were being utilized by visitors to this market area. A listing of these hotels is provided
below in the Lodging Supply section of this report.
Lodging Demand in the Competitive Set grew by 2.6% in 2015. The historic
average annual growth rate was 9.9% from 2009 - 2015. This market saw positive
growth in each year analyzed. This included 2010 and 2014 when new Lodging
Supply growth occurred. The strongest growth rate occurred in 2014 with a growth
rate of 12.1%
The Lodging Demand Annual Seasonality of the subject market showed
Lodging Demand strength from April through October.
o Revenue was maximized in each of the above seven months. However,
there is the potential for rates to increase to better match Lodging
Demand levels in June, July and October.
o The weakest Lodging Demand period is December through February.
During the three-year period January, 2013 through December, 2015, this
market appears to have an average weekday ADR of $81.97 which is slightly
higher than the average ADR of $81.58. The average weekend ADR is
$83.17 which is also higher than the average ADR of $81.58.
The average low single rate in the market is $84.55. Based upon this rate,
the overall market is experiencing slightly higher Rate Sensitivity due to
discounting in both the weekday and weekend periods.
11
Unaccommodated Lodging Demand is described as either Lodging Demand
that prefers to stay in the subject market but is currently staying in other
areas due to the lack of adequate accommodations. This is due either to
condition or number of available rooms. It can also be described as Lodging
Demand that is staying in the subject market but actually desiring
accommodations in other areas.
o With no hotels in Vinton, it is assumed that the first t ype of
Unaccommodated Lodging Demand is occurring. Local officials reported
choosing hotels in the Competitive Set.
o A review of the Competitive Set’s performance from January, 2015
through December, 2015, reveals that 55.25 nights (15.1%) achieved
Occupancies of 70.0% or greater. This is considered an Occupancy
performance level at which newer and better hotels are reaching
maximized Occupancy. Of these, there were no nights with Occupancy
over 80%. These nights are primarily in May through July and in October
on Friday and Saturday. There were only a few other nights throughout
the year with Occupancy over 70%.
More detailed information and analysis of the data provided in this section of the Field
Research Hotel Evaluation Report would be provided in a Comprehensive Hotel
Market Study.
LODGING SUPPLY
There are currently no hotels in the immediate Vinton area.
There are 9 hotels within a five-mile area that could be potential competitors
of the proposed hotel. These hotels are in the economy to the lower-upscale
hotel product category. They are, for the most part, limited-service hotels.
Two of the hotels are select-service hotels.
o The first cluster of hotels is about 2.0 to 2.5 miles from Vinton at the
interchange of Orange Avenue and I-581. These include the Days Inn,
Holiday Inn Express, and Rodeway Inn.
o The next cluster is about 3.5 to 4.0 miles from Vinton. These hotels
include the Cambria Suites and Ramada Inn
o The last cluster of hotels is about 4.5 miles from Vinton and includes
hotels around the airport: the Best Western Plus, Comfort Inn, Hampton
Inn & Suites, and Hyatt Place.
12
The chart below highlights the primary competitors of the proposed hotel:
PRIMARY COMPETITIVE HOTELS
13
Characteristics of the Competitive Set:
o The Average Size of the Competitive Set is 117.5 rooms
o The Average Age of the Competitive Set is 24 years ranging from 13 to
20 years. This average age is beyond the second renovation period and
this would be an advantage for the proposed hotel.
o All the hotels are affiliated with a national hotel chain.
The following chart shows the projected ADR performance of the hotels
comprising the Competitive Set:
In this Competitive Set, there appears to be three rate tiers:
o The first rate tier includes two hotels: the Cambria Suites and Hyatt
Place. These properties have an estimated ADR range of $120 to $125.
The estimated average rate of these properties is $123.33. They
achieve a yield of 140.7% to the Overall Competitive Set average ADR of
$87.63.
o The second rate tier includes four hotels: the Best Wester Plus, Comfort
Inn, Hampton Inn & Suites and Holiday Inn Express. These properties
have an estimated ADR range of $95 to $100. The estimated average
rate of these properties is $97.90. They achieve a yield of 111.7% to the
Overall Competitive Set average ADR of $87.63.
14
o The third rate tier includes three hotels: the Days Inn, Ramada Inn and
Rodeway Inn. These properties have an estimated ADR range of $49 to
$55. The estimated average rate of these properties is $53.57. They
achieve a yield of 61.1% to the Overall Competitive Set average ADR of
$87.63.
To accurately rate position the proposed hotel, it was felt to be
appropriate to remove the highest and lowest rate tiers. Therefore, the
proposed hotel’s rate positioning should be in the second rate tier. At
this time, the average rate positioning yield ranges from 109.1% to
114.7% and should be in the middle of this range at 111.7%. This would
be in the middle of the second rate tier.
It would position the proposed hotel below the Hampton Inn & Suites
and Holiday Inn Express and above the Best Western Plus and
Comfort Inn.
This rate positioning would be analyzed along with a more detailed review of
the members of the Competitive Set in a more Comprehensive Hotel Market
Study report.
The Competitive Position of these hotels shows the following:
o With the Average Age of the hotels at 23.8 years, there are older hotels
in this market. The Hampton Inn & Suites at 1 year old and the Cambria
Suites at 5 years old are the newest hotels in the market. Thee hotels
are at or below the first major renovation per of 5-7 yeas. All the rest of
the s are past the 12-15 year second major renovation period and will
require on-going renovation and maintenance to remain competitive.
o Competitive Rate Positioning was discussed above and would position
the hotel at 111.7% to the Competitive Set.
o The Facilities of the older economy hotels are not considered to be
highly competitive with the proposed hotel. The remaining hotels have
above average facilities.
o Brand competition within the rate positioning suggested will be above
average. It is suggested that operating the proposed hotel with brand
representation will improve its competitive position in this market.
o Locating the new hotel at the recommended subject site should be
positive to serving the Lodging Demand in this market area. It will be the
first and only hotel in this area.
15
HISTORICAL LODGING PERFORMANCE
Lodging Demand in this market has grown every year since 2010. The
highest growth rate was seen in 2014 at 12.1%. This market experienced a
2.6% growth rate in 2015. The average annual Lodging Demand growth
from 2010 through 2015 was estimated to be 9.9%.
Occupancy followed a trend similar to that of Lodging Demand with growth
every year since 2010. The highest Occupancy rate of 59.9% was seen in
this market in 2014. 2015 Occupancy is at 58.0%. This lower Occupancy is
due to the new 130-room Hampton Inn entering the market. In 2009, the
Occupancy level for the Competitive Set was 47.3%.
New Lodging Supply was added to the Competitive Set over the years
analyzed. The 130-room Hampton Inn & Suites entered the market in 2015
and the 127-room Cambria Suites entered the market in 2010. The average
per year Lodging Supply growth from 2009 to 2015 is 5.0% per year.
o Based upon the Lodging Demand and Lodging Supply growth, the
historic absorption rate is 6.1 months. This is well below the maximum
three-year absorption rate for hotel development.
At this time, a new 127-room Hampton Inn & Suites is under construction in
the 4.5 mile radius of Vinton. These new rooms will increase Lodging Supply
by 12.1% and they will impact this market in 2017. .
Average Daily Room Rates (ADR) experienced positive growth in most years
analyzed from 2010 to 2015. There was a decline of (1.5%) in 2015 when
the Cambria Suites entered the market. There was another (0.1%) decline in
2012. The highest growth was seen in 2014 with an increase of 10.1%.
2015 had a 7.9% increase at $88.26. The 2009 to 2015 historic average
annual change in ADR was 3.8%.
Revenue Per Available Room (RevPAR) has seen positive growth in all
years from 2010 to 2015 with the exception of 2012 when a (1.5%) decrease
was seen. The highest growth rates occurred in 2011 and 2014 with growth
rates of 15.4% and 10.5%, respectively. 2015 RevPAR increased by 4.5% to
$51.16. The average annual growth from 2009 to 2015 was 8.4%.
More detailed information and analysis of the data provided in this section of the Field
Research Hotel Evaluation Report would be provided in a Comprehensive Hotel
Market Study.
16
CONCLUSIONS
The purpose of this field research report was to test the feasibility of the hotel project
described at the beginning of this report. Based on the support levels shown in the
charts above, the proposed hotel was projected at a 60-room level. This is the
recommended size for the proposed hotel.
PRELIMINARY OPERATIONAL PROJECTIONS
(Occupancy, Average Daily Room Rates and Sales Revenue)
The following chart shows the preliminary Operational Projections for Occupancy,
Average Daily Room Rates and Sales Revenue for a 60-room, mid-priced, limited
service hotel. These are preliminary projections and they would be reviewed,
potentially modified, and expanded in a more Comprehensive Hotel Market Study.
They are projected for the third year full year of operation, which is the estimated
stabilized year of operational performance for the proposed hotel.
PROJECTED PERFORMANCE FOR A 60-ROOM
PROJECTED
MARKET PROJECTED
PERFORMANCE PROJECTED HOTEL
PRESENT MARKET PERFORMANCE
MARKET PENETRATION 80 ROOMS
OCCUPANCY
Probable 61.3%130.5%80.0%
ADR
Probable $102.41 111.7%$114.40
RevPAR
Probable $62.78 145.8%$91.52
REVENUE
Probable NA NA $2,004,191
*Projected performance is +/- 5 percentage points and will be affected by changes in
Lodging Supply and Demand growth levels used to formulate these projections.
Source: HMI
MID-PRICED, LIMITED-SERVICE HOTEL PROPERTY
The above preliminary projections take into account the following:
o Lodging Demand growth was estimated to grow at an average rate of 2.6%
in 2015. From 2016 to 2020, Lodging Demand is projected to grow by a
cumulative average rate of 5.0%. This is a conservative projection when
compared to the 9.9% historical average growth rate seen from 2009-2015
and the 4.45% historical average growth rate seen from 2009-2015.
o At the time of this report, 12.1% new Lodging Supply growth was
factored in for the 130-room Hampton Inn & Suites being developed in
the Competitive Set market.
17
The proposed hotel is smaller than the average room count in this market of
116.4-rooms, yielding 194.1% to the average sized property in the
Competitive Set. A size yield of 130.5% was used in these projections
generating a projected third year Occupancy of 80.0%. This Occupancy
level was felt to be the maximum Occupancy level for this market. Therefore,
not all of the size-yield was used. This allows for economic and competitive
factors that could affect these projections.
ADR growth is estimated to grow at an average rate of 3.8% in 2016 through
2020. This is the historic rate of ADR growth. It is also conservative
compared to the 7.9% ADR growth in 2015.
At this time, the proposed hotel was rate-positioned with a 111.7% yield to
the ADR of the Overall Competitive Set. This positioning was explained
earlier in this report as being in the middle of the second rate tier of the
Competitive Set. There is the potential that in a more complete
Comprehensive Hotel Market Study this rate positioning could change.
RECOMMENDATIONS
Based on the results of the research performed to complete this Field Research
Evaluation Report, the following recommendations were made:
Hotel Size: Up to 60 rooms
Hotel Style: Limited-Service
Hotel Pricing Category: Mid-Priced
Amenities: Those typically required by the chosen hotel brand, including a
complimentary breakfast area, and an exercise area. An indoor pool could
also be considered to service the Social/Leisure market segments. There
should be adequate parking for oversized vehicles including trucks, campers,
RVs, motor coaches, etc.
Specific information and analysis of the data provided in this section of the
Field Research Hotel Evaluation Report would be included in a
Comprehensive Hotel Market Study.
18
As a benchmark to indicate support for the proposed hotel, the following
Benchmark Development Costs were projected. These are only benchmarks to
support hotel development. They include all costs associated with the proposed
hotel to the stabilized year of operation. They show the maximum support level
for this proposed hotel development. Ideally, this maximum support level should
not be exceeded without a good reason. These were based upon a 25% equity
and produced a preliminary 30.0% annual IRR on that equity investment.
Changing the Equity and desired IRR will affect the BDC.
BENCHMARK DEVELOPMENT COSTS PROJECTED TOTAL REVENUE
ALLOWABLE
ALLOWABLE TOTAL
PER ROOM*PROJECT COST*
60
Rooms $73,082 $4,384,950
*These projections will be affected by changes in
Projected Occupancy or Projected ADR.
Source: HMI
There is the potential that being a newer hotel compared to the Competitive Set,
these preliminary Benchmark Development Costs and preliminary Operational
Proforma estimates could be modified in a more complete Comprehensive Hotel
Market Study.
DISCLAIMER
The decisions presented herein were based upon the information available and
received at the time this report was compiled. Hospitality Marketers International,
Inc., (HMI) has taken every possible precaution to evaluate this information for its
completeness, accuracy and reliability. To the best of its knowledge, HMI feels the
information and decisions presented herein are sound and reliable.
At the present time of this report, the United States and world economies are in the
midst of a recovery from a major recessionary period that ran from 2008-2010. This
recovery appears to be continuing according to current news reports with most
economic indicators indicating growth since 2011.
HMI is not responsible for effects that occur from future political, economic or social
events that ultimately alter these projections. These events should be monitored
accordingly and potentially the results of this report may require updating to respond
to future events.
Also, it should be understood that normal economic and marketplace conditions
change constantly. HMI assumes no responsibility for information that becomes
outdated once this report is written; nor is it responsible for keeping this information
current after April, 2016.
It should be understood that the results presented in this report are the professional
opinion of HMI and are based upon the information available at this time. These
opinions infer proper and professional management of the business operation. The
opinions also infer that market conditions do not change the information received
upon which those opinions have been based. HMI assumes no responsibility for
changes in the marketplace.
Furthermore, it is presumed that those reading this report completely understand its
contents and recommendations. If the reader is unclear of the understanding of the
contents, clarification should be received from its writer, HMI.
Lastly, HMI assumes that those who receive this report act in accordance with its
recommendations. Any deviation from those recommendations is solely the
responsibility of those receiving this report.
Further questions concerning this report should be directed to HMI.
Sincerely,
HOSPITALITY MARKETERS INTERNATIONAL, INC.
Gregory R. Hanis
Gregory R. Hanis, ISHC
President
Hospitality Marketers
International, Inc.
Management
Research
Marketing
Gregory R. Hanis, ISHC
President
ghanis@hospitalitymarketers.com
262-490-5063
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1
Meeting Date
May 17, 2016
Department
Planning and Zoning
Issue
Consider adoption of an Ordinance amending Section 86-287, Itinerant Vendors Generally; Tax
Rate of Article VIII, License, Chapter 86, Taxation of the Vinton Town Code.
Summary
Town Staff has received complaints from food truck operators stating that the Town’s current
flat fee of $500.00 for itinerant vendors is cost prohibitive, and it is also now considerably higher
than most localities. Both the City of Roanoke and County of Roanoke have recently changed
their itinerant vendor license tax for mobile food vendors, from $500.00 to $75.00 in the City,
and from $500.00 to $50.00 in the County.
At the direction of Town Council; the Planning Commission was briefed on this proposed
amendment by Staff during its work session on February 25, 2016. Additionally, the Planning
Commission also held a work session on March 24, 2016, to discuss mobile food vending. At
that meeting, the Planning Commission recommended the following solution: Reduce the
current itinerant vendor fee for mobile food vendors from $500.00 to $50.00. Along with the fee
reduction they also recommended that the Town follow the existing policy; which allows mobile
food vendors to operate in commercially zoned districts with property owners’ permission;
during special events in public spaces and within the Town’s public right-of-ways; and by non-
profit organizations during fund-raising events with property owners’ permission.
The usage of public space is governed by a different section of the Town Code. Usage of public
spaces, streets and sidewalks is a policy consideration that may warrant future consideration by
the Town Council, Planning Commission and Town Administration.
Attachments
1. Mobile Food Unit/Food Truck Policy and License Information.
2. Mobile Food Unit/Food Truck Property Use Permission Form.
3. Ordinance.
Town Council
Agenda Summary
2
Recommendation
Motion to adopt Ordinance
Mobile Food Unit Policy and License Information Page 1 of 2
MOBILE FOOD UNIT POLICY AND
LICENSE INFORMATION
A Mobile Food Unit is defined as: A readily movable wheeled cart, trailer, or vehicle
designed and equipped for the preparing, serving, and/or selling of food and operated at
temporary locations. This shall include both food trucks and food carts.
(1) The Itinerant Vendor License Fee for a Mobile Food Unit shall be set at $50.00 per calendar year
(January through December). In addition to the Itinerant Vendor License Fee, Mobile Food Units
are also required to pay Prepared Food and Beverage Tax to the Town of Vinton per the set
payment schedule, as well as Sales Tax and litter tax, to the state of Virginia.
(2) The License Fee for Mobile Food Units who are conducting business solely at a festival, parade
or other special event in the town shall pay $25 per day for each day of the festival, parade or
special event. In addition to the License Fee, Mobile Food Units are required to pay Prepared
Food and Beverage Tax to the Town of Vinton per the set payment schedule, as well as Sales Tax
and litter tax to the state of Virginia.
(3) Mobile Food Units will be allowed to vend only on commercially zoned properties (GB, CB, MUD,
M-1, or M-2). Mobile Food Units will not be allowed to vend on any residentially zoned
properties except those owned by the Town of Vinton or other government entities with written
permission from the Town Administration. Mobile Food Units must have written permission
from entity who owns the property.
(4) Mobile Food Units will be allowed to vend during special events on Town-owned properties
including public Right-of-Ways during festivals, and at non-profit fundraising events in
commercially zoned areas. An Itinerant Vendor License Fee must be paid prior to vending at the
event. Prepared Food and Beverage Taxes to be paid to the Town of Vinton per the set payment
schedule, as well as Sales Tax, litter tax to the state of Virginia, with the exception of those who
hold a 501c3 status. Proof of the 501c3 status must be provided to the Town at the time of
application for the license.
(5) Mobile Food Units are required to report the exact dates and locations where they expect to
vend within the Town on the Itinerant Vendor License Application so that the Prepared Food
and Beverage Tax collection can be tracked by the Treasurer’s Office.
(6) Mobile Food Units will not be required to meet prescribed setbacks for the districts in which
they intend to vend; however, they must setup in a manner that avoids any site visibility issues
along streets or in parking areas for drivers or pedestrians.
Town of Vinton
311 S. Pollard Street, Vinton, VA 24179 Phone (540) 983-0605
Mobile Food Unit Policy and License Information Page 2 of 2
(7) Mobile Food Units are allowed to vend on public streets or sidewalks so long as the license
requirements are met, permission is obtained, and so long as the unit is legally parked in an on-
street parking space and is not impeding pedestrian or vehicular traffic. At no time shall seating
areas for Mobile Food Units be allowed on public streets or sidewalks.
(8) Mobile Food Units will not be allowed to setup and vend along a public street or right-of-way
directly in front of an established, permanent restaurant at any time.
(9) Written permission must be obtained from the property owner to setup a Mobile Food Unit on
a private property. A copy of the permission must be presented with the Itinerant Vendor
License Application.
(10) Mobile Food Units must comply with all Town of Vinton Noise Ordinance regulations as
prescribed by the Vinton Town Code. A copy of the Noise Ordinance can be furnished upon
request.
(11) Trash collection and disposal within a 20 foot radius of the Mobile Food Unit is the
responsibility of the Mobile Food Unit proprietor. The town will not provide trash removal
services to a Mobile Food Unit. If the trash is not properly disposed of, responsibility for
cleanup will be relegated to the owner of the property on which the Mobile Food Unit was
located.
(12) Proper wastewater disposal shall be the responsibility of the Mobile Food Unit proprietor. At
no time shall wastewater be discharged onto a parking lot, grassy area, or into a storm drain.
(13) Any violations of the trash and wastewater disposal requirements may result in the revocation
of the Itinerant Vendor License by the Town Manager.
(14) A Mobile Food Unit will be allowed to display an unlimited number of signs permanently
attached flat to the sides of the unit.
(15) At no time shall any electronic signs flash or change messages more frequently than every 5
seconds. Signs must not cause a distraction to operators of vehicles.
(16) One sandwich board (A-Frame) sign shall be allowed for each Mobile Food Unit. Sandwich
board signs shall not be greater than 4 feet in height or 2.5 feet in width. Sandwich board signs
must be anchored to the ground immediately adjacent to the unit and must not cause any sight
visibility issues for drivers or pedestrians. Sandwich boards signs shall not project over any
portion of a street nor shall they obstruct any sidewalk to less than 4 feet in width.
(17) A valid Virginia Department of Health permit shall be on prominent display at all times during
the operation of the Mobile Food Unit. A copy of this permit shall also be provided to the town
at the time of application for the Vinton Itinerant Vendor License.
(18) A valid Town of Vinton Itinerant Vendor License shall be on prominent display at all times
during the operation of the Mobile Food Unit.
TOWN OF VINTON 311 S. POLLARD STREET
VINTON, VIRGINIA 24179
PHONE (540) 983-0608 Barry W. Thompson
FAX (540) 985-3105 Finance Director/Treasurer
Mobile Food Vendor/Food Truck Property Use Permission
Date of Request: ____________ Vending Dates: ____________ to ___________
Vinton Business License Number: ____________
Health Department Food Facility Permit: ___________________Expires:_________
Property Owner Name: __________________________________________________
Property Address: _____________________________________________________
_____________________________________________________________________
Zoning District: ___________
Property Owner Mailing Address: _________________________________________
______________________________________________________________________
Telephone: ______________________ E-Mail:_______________________________
Grants Permission to:
Applicant Name: _______________________________________________________
Applicant Mailing Address: ______________________________________________
______________________________________________________________________
Telephone: _____________________ E-Mail: ________________________________
To set up a: ____ Truck ____ Trailer ____ Cart ____ Booth ____ Non Food
For the Purpose of: _____________________________________________________
______________________________________________________________________
Property Owner Signature: ____________________________ Date:_____________
Applicant Signature: ________________________________ Date:______________
1
ORDINANCE NO.
AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL, HELD ON
TUESDAY, MAY 17, 2016, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE
VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON,
VIRGINIA.
AN ORDINANCE AMENDING SECTION 86-287, “ITINERANT VENDORS
GENERALLY; TAX RATE,” OF ARTICLE VIII, “LICENSES,” CHAPTER 86,
“TAXATION,” OF THE VINTON TOWN CODE BY REDUCING THE LICENSE TAX
FOR ITINERANT VENDORS.
WHEREAS, in recent years, the number of food trucks has increased significantly nationally,
as well as regionally; and
WHEREAS, the Vinton Town Council finds that reducing the business license tax for a
growing and new classification of businesses known as food trucks, which are
currently classified as “itinerant vendors”, would promote economic development
in the Town of Vinton; and
WHEREAS, reducing the business license for this classification of businesses would encourage
the entrepreneurial development of small businesses in the Town of Vinton; and
WHEREAS, reducing this license tax from a maximum of $500.00 in any one (1) year to a
maximum of $50.00 in any one (1) year would be consistent with neighboring
jurisdictions; and
WHEREAS, the Planning Commission was briefed by Vinton Planning and Zoning Staff at its
meeting on February 25, 2016, and a work session on mobile food vending/food
trucks was held by the Planning Commission on March 24, 2016; and
WHEREAS, the Vinton Town Council held a work session on the mobile food vending on
April 19, 2016, on the proposed reduction of the itinerant vendor business license
tax.
NOW, THEREFORE, BE IT ORDAINED that the Vinton Town Council does hereby amend
Section 86-287, “Itinerant vendors generally; tax rate,” of Article VIII, “Licenses,” Chapter 86,
“Taxation.” of the Vinton Town Code as follows:
2
* * *
Sec. 86-287. - Itinerant vendors generally; tax rate.
(a) Itinerant vendor defined. An itinerant vendor means any person who engages in, does, or
transacts any temporary or transient business in the town, and who for the purpose of
carrying on such business occupies any location for a period of less than one year.
(b) License display. A license certificate must be prominently displayed by an itinerant vendor.
(c) Tax rates enumerated. License tax rates shall be as follows:
(1) Itinerant vendors of family supplies, meals, or merchandise of a perishable nature or
which are used for heating purposes (i.e. meals from food trucks/carts/temporary food
establishments, produce, fruits, meats, seafood, perishable food, ice cream, sandwiches,
beverages, vegetables, flowers, plants, ice, wood, coal, etc.): $250.00 per month or fraction
thereof $50.00 per year.
(2) Itinerant vendors of general merchandise (not household supplies of a perishable nature,
or supplies used for heating purposes as previously described): $500.00 per month year or
fraction thereof.
(3) In no event shall the tax rates specified in subsections (c)(1) and (c)(2) of this section
exceed cumulatively $50.00 or $500.00 per year, respectively.
(4) Prior to the issuance of any business license to an itinerant merchant of family supplies,
meals, or merchandise of a perishable nature, the applicant shall provide proof of any
required permit or license from the Health Department.
(d) Exemptions.
(1) Any person licensed to operate in the Vinton Farmer's Market shall be exempt from the
provisions of this section; provided, however, that any activities outside the Vinton Farmer's
Market within the town shall be subject to licensure under the provisions of this section or
other sections of this article.
(2) This section shall not apply to persons who sell or offer for sale, in person or by their
employees, ice, wood, charcoal, or family supplies of a perishable nature grown or produced
by them and not purchased by them for sale. Anyone exempt under this section must provide
proof of such exemption.
(3) This section shall not apply to any person who holds not more than two garage or yard
sales within any 12 month period, provided that such sale is held on residential property and
only household or personal goods owned by the seller or his immediate family are being
offered for sale.
(e) License fee. An itinerant vendor wishing to conduct business at a festival, parade or other
special event in the town shall purchase a license for $25.00 per day.
(f) Application of section provisions. This section shall not apply to any person who holds more
than two garage or yard sales within any 12-month period, provided that such sale shall be
held upon residential property and shall offer for sale only used household or personal goods
owned by the seller or his immediate family.
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* * *
BE IT FURTHER ORDAINED, that this Ordinance shall become effective upon its adoption.
This Ordinance adopted on motion made by Council Member ________________ and seconded
by Council Member ____________________, with the following votes recorded:
AYES:
NAYS:
APPROVED:
__________________________________
Bradley E. Grose, Mayor
ATTEST:
____________________________________
Susan N. Johnson, Town Clerk
Meeting Date
May 17, 2016
Department
Planning and Zoning
Issue
Consider adoption of an Ordinance to approve Botetourt County’s request to join the Roanoke
Valley Greenway Commission and the Amended and Restated Intergovernmental Agreement
establishing the Roanoke Valley Greenway Commission to include Botetourt County.
Summary
On May 3, 2016, the Vinton Town Council held a work session to discuss Botetourt County’s
request to join the Greenway Commission. The Council was informed that the Greenway
Commission has been discussing the request for several months and passed a resolution at their last
meeting held on March 23, 2016, expressing support of Botetourt County’s request to join the
Greenway Commission. It is the four localities of the Roanoke Valley (Cities of Roanoke and
Salem, Roanoke County, and Town of Vinton); however, who must make the decision. The
decision must be unanimous among the four localities. Each locality must pass an ordinance
approving Botetourt’s request to join the Roanoke Valley Greenway Commission as a participating
locality.
It is anticipated that each of the current participating localities will be adopting an ordinance
approving Botetourt’s request to join the Roanoke Valley Greenway Commission by the end of the
2015-2016 Fiscal Year, so that the Greenway Commission can begin the 2016-2017 Fiscal Year
with Botetourt County as a member.
Attachment
Ordinance
Recommendation
Motion to adopt Ordinance
Town Council
Agenda Summary
ORDINANCE NO.
AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON
TUESDAY, MAY 17, 2016, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE
VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON,
VIRGINIA.
AN ORDINANCE APPROVING THE COUNTY OF BOTETOURT’S
REQUEST TO JOIN THE ROANOKE VALLEY GREENWAY
COMMISSION; APPROVING THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT ESTABLISHING THE
ROANOKE VALLEY GREENWAY COMMISSION; PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the Town of Vinton, the County of Roanoke, the City of Roanoke, and the City of
Salem, in 1997, jointly entered into an Intergovernmental Agreement Establishing
the Roanoke Valley Greenway Commission pursuant to authority granted to local
governments by Section 15.2-1300 of Title 15.2, Counties, Cities and Towns, of
the Code of Virginia, 1950, as amended, in order to coordinate the efforts of the
participating localities for the planning, development and support a network of
greenways and trails throughout the Roanoke Valley; and
WHEREAS, on December 16, 2008, Ordinance No. 875 was adopted by Vinton Town Council
approving the revision to the Intergovernmental Agreement Establishing the
Roanoke Valley Greenway Commission; and
WHEREAS, since that time, much has been accomplished towards the goals of the
organization; and greenways and trails have become a defining part of our
region’s identity; and
WHEREAS, the County of Botetourt has requested to join the Roanoke Valley Greenway
Commission as a member locality through an action of its governing body by
adopting a Resolution on October 27, 2015; and
WHEREAS, the Intergovernmental Agreement which established the Roanoke Valley
Greenway Commission states that a new member may join if unanimously
approved through adoption of an ordinance by each of the current member
localities; and
WHEREAS, the Roanoke Valley Greenway Commission considered the matter and
recommended, through Resolution 2016-03-001 adopted on March 23, 2016, that
the member localities approve the County of Botetourt’s request; and
WHEREAS, upon its recommendation to approve County of Botetourt’s request, the Roanoke
Valley Greenway Commission prepared an Amended and Restated
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Intergovernmental Agreement reestablishing the Roanoke Valley Greenway
Commission to include County of Botetourt as a member locality; and
WHEREAS, the Vinton Town Council was briefed by Vinton Planning and Zoning Staff and
Vinton representatives/members of the Roanoke Valley Greenway Commission
on May 3, 2016.
NOW, THEREFORE, BE IT ORDAINED by the Town Council of Town of Vinton, Virginia,
as follows:
1. That County of Botetourt’s request to join the Roanoke Valley Greenway
Commission as a member locality is approved.
2. That the Amended and Restated Intergovernmental Agreement Establishing the
Roanoke Valley Greenway Commission is hereby approved and authorizing the
Interim Town Manager to execute the Agreement, on behalf of the Town of Vinton,
Virginia, upon such form as may be approved by the Town Attorney.
3. That this Ordinance shall be effective on and from the date of its adoption.
BE IT FURTHER ORDAINED, that this Ordinance shall become effective upon its adoption.
This Ordinance adopted on motion made by Council Member ________________ and seconded
by Council Member ____________________, with the following votes recorded:
AYES:
NAYS:
APPROVED:
__________________________________
Bradley E. Grose, Mayor
ATTEST:
____________________________________
Susan N. Johnson, Town Clerk
Meeting Date
May 17, 2016
Department
Planning and Zoning
Issue
Consider adoption of a Resolution authorizing the Interim Town Manager to execute Programmatic
Project Administration Agreement (PPAA) Extension Addendum for Glade Creek Greenway Phase
1 Revenue Sharing Project with the Virginia Department of Transportation (VDOT).
Summary
Vinton Town Council was briefed by Staff on May 3, 2016, that the Town of Vinton’s Glade Creek
Greenway Phase 1 PPAA will be expiring on June 30, 2016. In order to continue with the current
agreement for the Project, and to keep all appendices as part of the PPAA, the Town can opt to sign
an extension addendum. In doing so, the PPAA will remain in effect until June 30, 2019 (FY 2019).
If the Town opts to not sign the PPAA extension addendum, a new agreement with related
appendices for Glade Creek Greenway Phase 1 Project, which is part of the PPAA, will be required
to be executed by the end of June 2016.
In opting for the three year extension, the attached PPAA Extension Addendum must be signed by
the Town’s authorized personnel, and the three original signed PPAA forms must be returned to
VDOT’s representative, Mr. Guy, by May 20, 2016. This is to ensure that VDOT will have ample
time to get everything executed so there is no lapse in the agreement. Additionally, due to a recent
VDOT requirement, each locality, by resolution, must provide assurance of its commitment to
funding the Project and in meeting its financial obligation under the Program. Also, VDOT is
requesting that, in that same resolution, the locality provide its designation of signature authority, so
that there is no question regarding commitment of funds and signature authority.
Attachments
1. Resolution
2. PPAA Extension Addendum Agreement Form
Recommendation
Motion to adopt Resolution
Town Council
Agenda Summary
RESOLUTION NO.
AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON
TUESDAY, MAY 17, 2016, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE
VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET,
VINTON, VIRGINIA
A RESOLUTION TO FUND THE TOWN OF VINTON’S LOCAL SHARE
OF COSTS FOR THE GLADE CREEK GREENWAY PHASE 1 REVENUE
SHARING PROJECT (PROJECT) AND AUTHORIZING THE INTERIM
TOWN MANAGER FOR AND ON BEHALF OF THE TOWN OF
VINTON, TO EXECUTE THE PROGRAMMATIC PROJECT
ADMINISTRATION AGREEMENT (PPAA) EXTENSION ADDENDUM
FOR THE PROJECT WITH THE VIRGINIA DEPARTMENT OF
TRANSPORTATION (VDOT).
WHEREAS, Vinton Town Council was briefed by Staff on May 3, 2016, that the Town of
Vinton’s current Glade Creek Greenway Phase 1 Revenue Sharing Project PPAA
with VDOT will be expiring on June 30, 2016; and
WHEREAS, in order to continue with the current PPAA for the Project, and to keep all
appendices as part of the PPAA, the Town can opt to sign an extension
addendum, and in doing so, the PPAA will remain in effect until June 30, 2019,
(FY 2019); and
WHEREAS, in opting for the three year extension, the PPAA Extension Addendum must be
signed by the Town’s authorized personnel; and
WHEREAS, due to a recent VDOT requirement, each locality, by resolution, must provide
assurance of its commitment to funding the Project and in meeting its financial
obligations under the Program; and
WHEREAS, VDOT is requesting that, in that same resolution, the locality provides its
designation of signature authority, so that there is no question regarding the
commitment of funds and signature authority.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Vinton, Virginia,
that:
1. The Town of Vinton hereby commits to fund its local share of preliminary engineering,
right-of-way acquisition, and construction (as applicable) for the Project under agreement
with VDOT in accordance with the project financial document(s).
2. The Interim Town Manager be, and is hereby authorized and directed to execute all
agreements and/or addendums for the Project with VDOT.
2
This Resolution was adopted on motion made by Council Member ________________ and
seconded by Council Member ____________________, with the following votes recorded:
AYES:
NAYS:
APPROVED:
___________________________________
Bradley E. Grose, Mayor
ATTEST:
_____________________________
Susan N. Johnson, Town Clerk
PROGRAMMATIC PROJECT ADMINISTRATION AGREEMENT
EXTENSION ADDENDUM
Revenue Sharing Projects
THIS ADDENDUM is made and executed in triplicate this ____ day of ____________, 20__, by
and between the Town of Vinton Virginia, hereinafter referred to as the LOCALITY and the
Commonwealth of Virginia, Department of Transportation, hereinafter referred to as the DEPARTMENT.
WHEREAS, the LOCALITY and the DEPARTMENT, entered into a Programmatic Project
Administration Agreement for Revenue Sharing Projects on July 30, 2013; and
WHEREAS, said agreement has an initial term of three fiscal years (each year beginning July
1st - June 30th), and will expire on June 30, 2016, and may be extended for one additional term of three
fiscal years; and
WHEREAS, the parties to the agreement hereby declare their intent to extend said agreement as
provided in Paragraph 1 of said agreement and further declare that such terms and provisions provided
therein shall remain unchanged.
NOW THEREFORE, in consideration of the mutual premises contained therein and in this
Addendum, the parties agree to extend said agreement for one additional term of three fiscal years with a
new expiration date of June 30, 2019.
IN WITNESS WHEREOF, each party hereto has caused this Addendum to be executed as of the
day, month, and year first herein written.
TOWN OF VINTON, VIRGINIA:
Barry W. Thompson
Typed or printed name of signatory
Interim Town Manager
Title Date
Signature of Witness Date
NOTE: The official signing for the LOCALITY must attach a certified copy of his or her authority to
execute this addendum.
COMMONWEALTH OF VIRGINIA, DEPARTMENT OF TRANSPORTATION:
______________________________________ __________________________
Chief of Policy Date
Commonwealth of Virginia
Department of Transportation
______________________________________ __________________________
Signature of Witness Date
1
Meeting Date
May 17, 2016
Department
Finance
Issue
Consider adoption of Resolutions:
a. Authorizing the Issuance and Sale of its General Obligation Refunding Bond, Series
2016A in a Maximum Principal Amount Not to Exceed $702,000, and the execution and
delivery of certain documents prepared in connection therewith
b. Authorizing the Issuance and Sale of its Water and Sewer Revenue Refunding Bond,
Series 2016B in a Maximum Principal Amount Not to Exceed $1,786,000, and the
execution and delivery of certain documents prepared in connection therewith
Summary
The Town has been working with VML/VACO Financing on the issuing of Refunding Bonds
Series 2016A and 2016B for the advance refunding of Series 2006 Callable Bonds in the amount
of $655,000 with interest rates of 5.00% to 5.25% and the advance refunding of Series 2007
Callable Bonds in the amount of $1,595,000 with an interest rate of 5.00%.
The 2006 Callable Bonds, originally were issued to finance the costs of the construction of the
Public Safety Building and to expand and renovate the Vinton War Memorial. The security
pledge on this issue was a general obligation bond. The total Debt Savings for the Series 2006
Issue is $90,495 or an average annual debt service savings of $8,227. This would now be known
as the 2016A Bond.
The 2007 Callable Bonds, originally issued to finance the cost of capital improvements to the
water and sewer system. The security pledge on this issue were the Water and Sewer Revenues.
The total Debt Savings for the Series 2007 is $178,518 or an average annual debt service savings
of $14,877. This would now be known as the 2016B Bond.
Town Council
Agenda Summary
2
The new bonds are as follows: 2016A $ 655,000
2016B $1,595,000
2,250,000
The Bonds will be Tax-Exempt and Bank Qualified with a rate of 2.05%. The closing date will
be May 25, 2016.
The interest payments will be semi-annually on February 1 and August 1 each year, commencing
August 1, 2016. Principal payments will be due on the 2016A on February 1 each year
commencing February 1, 2017 and the 2016B will be annually commencing on August 1, 2016.
Final maturity will be February 1, 2027 on the 2016A and August 1, 2027 on the 2016B.
Council was briefed by Steve Mulroy with VML/VACo Finance at their May 3rd meeting.
Attachments
Resolution-2016A Bond
Resolution-2016B Bond
Recommendations
Separate motions to adopt Resolutions
1
RESOLUTION NO.
AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON
TUESDAY, MAY 17, 2016, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE
VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET,
VINTON, VIRGINIA
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF VINTON,
VIRGINIA, AUTHORIZING THE ISSUANCE AND SALE OF ITS
GENERAL OBLIGATION REFUNDING BOND, SERIES 2016A IN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $702,000, AND
THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS
PREPARED IN CONNECTION THEREWITH
WHEREAS, the Town of Vinton, Virginia (the “Town”), has determined that it is
advisable and in the interest of the Town to refund a portion of the outstanding principal amount
of that certain indebtedness reflected by its $1,045,000 General Obligation Bond, Series 2007
(the “Prior Bond”); and
WHEREAS, the Town intends to refund the Prior Bond by and through the issuance of
its general obligation refunding bond in the maximum amount of $702,000 (the “Refunding
Bond”) to accomplish such refunding; and
WHEREAS, the Council of the Town (the “Council”) has previously received a proposal
from the Virginia Local Government Finance Corporation, a Virginia nonstock, nonprofit
corporation (“VLGFC” and the Program Administrator for the VML/VACO Finance Program)
to solicit bids from banks to purchase the Refunding Bond; and
WHEREAS, after such solicitation by VLGFC, staff recommends the proposal from
Carter Bank & Trust (the “Purchaser”) for the loan of proceeds and sale of the Refunding Bond
to the Purchaser in accordance with the terms of a Bond Purchase Agreement between the
Purchaser and the Town (the “Agreement”), the form of which has been presented to this
meeting;
BE IT RESOLVED BY THE COUNCIL OF THE TOWN OF VINTON,
VIRGINIA:
1. Issuance of Bond and Use of Proceeds. Pursuant to the Constitution of the
Commonwealth of Virginia and the Public Finance Act of 1991, as amended (the “Public
Finance Act”), Title 15.2, Chapter 26 of the Code of Virginia of 1950, as amended (the “Virginia
Code”), specifically the provisions of Virginia Code § 15.2-2643, and without regard to any
requirements or restrictions contained in any charter or special act of the Town, the Council
hereby authorizes the issuance and sale of a general obligation refunding bond of the Town in an
aggregate principal amount set forth above to provide funds to refund all or a portion of the Prior
Bond, escrow monies necessary to advance refund portions of the outstanding Prior Bond and
2
pay issuance and financing costs incurred in issuing the Refunding Bond. Such amount is
consistent with the limitations set forth in Virginia Code §15.2-2645.
2. Authorization of Bond Purchase Agreement. The form of the Agreement
submitted to this meeting is hereby approved. The Mayor and the Interim Town Manager (the
“Town Manager”), either of whom may act (each an “Authorized Signatory”), are authorized to
execute the Agreement in substantially such form, with such completions, omissions, insertions
and changes not inconsistent with this Resolution as may be approved by such official, whose
approval shall be evidenced conclusively by the execution and delivery thereof. The issuance
and sale of the Refunding Bond to the Purchaser shall be upon the terms and conditions of the
Agreement. The proceeds of such Refunding Bond shall be applied in the manner set forth in the
Agreement. All capitalized terms used but not otherwise defined herein shall have the same
meaning as set forth in the Agreement.
3. Bond Details. The Refunding Bond shall be issued as a single, fully registered
bond, shall be designated “General Obligation Refunding Bond, Series 2016A”, shall be
numbered R-1, and shall be in substantially the form of Exhibit A to this Resolution as hereby
approved, with such completions, omissions, insertions and changes not inconsistent with this
Resolution as may be approved by the officers signing such Refunding Bond. The Council
authorizes the issuance and sale of the Refunding Bond on such terms as shall be satisfactory to
the Authorized Signatory; provided however, that the Refunding Bond (a) shall be in a principal
amount not to exceed $702,000; (b) shall mature no later than February 1, 2027; and (c) shall
bear interest on the outstanding principal balance thereof at a rate of interest approved by the
Authorized Signatory, with such rate to not exceed 2.05% (provided that default interest may be
payable at a rate in excess thereof as provided in the Agreement), shall accrue certain other
ongoing costs and expenses upon the terms and conditions described in the Agreement, and the
refunding of a portion of the Prior Bond shall achieve an aggregate net present value debt service
savings of not less than 3% of the refunded amounts of the Prior Bond. As set forth in the
Agreement, the Town agrees to pay any applicable late payment or similar costs and expenses
described therein. Subject to the preceding terms, the Council further authorizes the Authorized
Signatory to determine the final terms, purchase price, initial interest rate, interest rate
adjustment provisions, maturity date, amortization schedule of the Refunding Bond and
determine which maturities (or portions thereof) of the Prior Bond are to be refunded (such
refunded maturities or portions thereof, the "Refunded Prior Bond"), all of which shall by
evidenced by the execution and delivery of the Refunding Bond, and no further action shall be
necessary on the part of the Town so long as such provisions are within the limits prescribed in
this Resolution.
4. Payment and Redemption Provisions. The principal of and premium, if any,
and interest on the Refunding Bond shall be payable as set forth in the Refunding Bond and the
Agreement. The principal of and premium, if any, and interest on the Refunding Bond shall be
payable in lawful money of the United States of America. Nothing in the Refunding Bond, this
Resolution, or the Agreement shall be deemed to create or constitute an indebtedness of the
Commonwealth of Virginia or any political subdivision thereof other than the Town, or a pledge
of the full faith and credit of the Commonwealth of Virginia or of any political subdivision
3
thereof other than the Town. The Town may, at its option, redeem, prepay or refund the
Refunding Bond upon the terms set forth in the Agreement.
5. Execution and Form of Bond. The Refunding Bond shall be signed by the
Mayor or Vice-Mayor and the Town’s seal shall be affixed thereon and attested by the Clerk or
Deputy Clerk of the Town. The Refunding Bond shall be issued as a typewritten bond in
substantially the form of Exhibit A, with such completions, omissions, insertions and changes
not inconsistent with this Resolution as may be approved by the Authorized Signatory, whose
approval shall be evidenced conclusively by the execution and delivery of the Refunding Bond.
6. Pledge of Full Faith and Credit. The full faith and credit of the Town are
hereby irrevocably pledged for the payment of principal of and premium, if any, and interest on
the Refunding Bond. Unless other funds are lawfully available and appropriated for timely
payment of the Refunding Bond, the Council shall levy and collect an annual ad valorem tax,
over and above all other taxes authorized or limited by law and without limitation as to rate or
amount, on all locally taxable property in the Town sufficient to pay when due the principal of
and premium, if any, and interest on the Refunding Bond.
7. Preparation of Printed Bond; Mutilated or Destroyed Bond. The Town shall
initially issue the Refunding Bond in typewritten form. The printed Refunding Bond may be
executed by manual or facsimile signature of the Mayor or Vice-Mayor, the Town’s seal affixed
thereto and attested by the Clerk or Deputy Clerk of the Town; provided, however, that if both
such signatures are facsimiles, the bond shall not be valid until it has been authenticated by the
manual signature of the Registrar and the date of authentication noted thereon. The typewritten
Refunding Bond surrendered in any such exchange shall be canceled. If the Refunding Bond has
been mutilated, lost or destroyed, the Town shall execute and deliver a new bond of like date and
tenor in exchange and substitution for, and upon cancellation of, such mutilated Refunding Bond
or in lieu of and in substitution for such lost or destroyed Refunding Bond; provided, however,
that the Town shall so execute and deliver only if the registered owner has paid the reasonable
expenses and charges of the Town in connection therewith and, in the case of a lost or destroyed
Refunding Bond, (a) has filed with the Town an affidavit reasonably satisfactory to the Town
that such Refunding Bond was lost or destroyed, and (b) has furnished to the Town reasonably
satisfactory indemnity.
8. Registration and Transfer of the Bond. The Town appoints the Treasurer of the
Town as paying agent and registrar (the “Registrar”) for the Refunding Bond. Upon surrender of
the Refunding Bond at the office of the Registrar, together with an assignment duly executed by
the registered owner or its duly authorized attorney or legal representative in such form as shall
be reasonably satisfactory to the Registrar, the Town shall execute, and the Registrar shall
authenticate and deliver in exchange, a new Refunding Bond or bonds having an equal aggregate
principal amount, of the same form and maturity, bearing interest at the same rates and registered
in such name as requested by the then registered owner or its duly authorized attorney or legal
representative. Any such exchange shall be at the expense of the Town, except that the Registrar
may charge the person requesting such exchange the amount of any tax or other governmental
charge required to be paid with respect thereto.
4
The Registrar shall treat the registered owner as the person or entity exclusively entitled to
payment of principal, interest and premium, if any, and the exercise of all other rights and
powers of the owner, and installments shall be paid to the person or entity shown as owner on the
registration books.
9. Delivery of Bond. The Mayor or Vice-Mayor and Clerk of the Town are
authorized and directed to take all proper steps to have the Refunding Bond prepared and
executed in accordance with its terms and to deliver it to the Purchaser thereof as set forth in the
Agreement.
10. Tax Compliance Documentation. Each of the Mayor and the Town Manager of
the Town is authorized to execute a Tax Compliance Agreement or any related document (the
"Tax Documents") setting forth the expected use and investment of the proceeds of the
Refunding Bond and containing such covenants as may be necessary or desirable in order to
comply with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"),
including the provisions of Section 148 of the Code and applicable regulations relating to
"arbitrage bonds," so that interest on the Refunding Bond will not be included in gross income
for federal income tax purposes. The Tax Documents may contain such elections under the Code
with respect to the Refunding Bond as the officer or officers executing them approve, and such
approval shall be evidenced conclusively by the execution and delivery of the Tax Documents.
The Town covenants that the proceeds from the issuance and sale of the Refunding Bond will be
invested and expended as set forth in the Tax Documents, to be delivered simultaneously with
the issuance and delivery of the Refunding Bond, and that the Town shall comply with the other
covenants and representations contained therein.
11. Tax and Other Documents. Each of the Mayor and the Town Manager of the
Town are authorized and directed to execute and deliver an IRS Form 8038-G in a form
approved by such officers and the Town’s bond counsel.
12. Escrow Deposit Agreement. The Authorized Signatory is authorized and
directed to execute an escrow deposit agreement (the "Escrow Agreement") for the purposes of
the refunding of the Prior Bond, with U.S. Bank, National Association acting as escrow agent
(the "Escrow Agent"). The Escrow Agreement shall be in the form approved by the Authorized
Signatory, in collaboration with the Town's bond counsel, the execution thereof by the
Authorized Signatory to constitute conclusive evidence of approval of the Escrow Agreement.
The Escrow Agreement shall provide for the irrevocable deposit of a portion of the Refunding
Bond proceeds (the "Refunding Portion") in a separate escrow fund (the "Escrow Fund") which
shall be sufficient, when invested in Government Obligations, to provide for payment of
principal of and premium, if any, and interest on the Refunded Prior Bond. If requested by the
Town, the Escrow Agent is authorized to execute an initial and final subscription form for the
purchase of the Government Obligations.
13. Deposit of Refunding Portion. The Authorized Signatory is authorized and
directed (a) to provide for the delivery of the Refunding Portion to the Escrow Agent for deposit
in the Escrow Fund, in an amount that will be sufficient, together with the interest thereon when
invested as provided in the Escrow Agreement, (i) to pay when due the interest on the Refunded
5
Prior Bond to the first respective dates on which they may be redeemed at the option of the Town
and (ii) to pay upon the earlier of maturity or redemption the principal of the Refunded Prior
Bond, plus the applicable redemption premium, if any, and (b) to provide for the deposit of a
portion of the remaining proceeds of the Refunding Bond in a special account to be used to pay
the costs of refunding the Refunded Prior Bond, as necessary. The Authorized Signatory is
further authorized and directed to take all such further action as may be necessary or desirable in
connection with the payment and refunding of the Refunded Prior Bond.
14. Redemption of Prior Bond. The Authorized Signatory is authorized and directed
to determine which maturities of the Prior Bond, if any, shall constitute the Refunded Prior
Bond. The Refunded Prior Bond is specifically and irrevocably called for redemption on the first
date on which it may be redeemed at the option of the Town. The Escrow Agreement shall
provide for notice of redemption to be given to the registered owners and Trustee of the
Refunded Prior Bond in accordance with the resolution providing for the issuance of the
Refunded Prior Bond.
15. Election to Apply Public Finance Act. Pursuant to Section 15.2-2601 of the
Virginia Code, it is hereby elected to have the Public Finance Act apply to the Refunding Bond
exclusively without regard to any charter or local act that might otherwise apply.
16. Contract with Bondholders. The provisions of this Resolution shall constitute a
contract between the Town and the bondholder for so long as the Refunding Bond is outstanding.
In the event of a conflict between the provisions of the Agreement and the provisions of this
Resolution, the Agreement shall control.
17. Limitation of Liability of Officials of Town. No covenant, condition or
agreement contained herein shall be deemed to be a covenant, agreement or obligation of an
officer, employee, member of Council, or agent of the Town in his or her individual capacity,
and no officer of the Town or member of Council executing the Refunding Bond shall be liable
personally on the Refunding Bond or be subject to any personal liability or accountability by
reason of the issuance thereof. No officer, employee or agent of the Town shall incur any
personal liability with respect to any other action taken by him or her pursuant to this resolution
provided he or she acts in good faith.
18. Conditions Precedent. Upon the issuance of the Refunding Bond, all acts,
conditions and things required by the Constitution and statutes of the Commonwealth of Virginia
or this Resolution to have happened, exist and to have been performed precedent to or in the
issuance of the Refunding Bond shall have happened, exist and have been performed.
19. Other Actions. All other actions of officials of the Town in conformity with the
purposes and intent of this Resolution and the Agreement and in furtherance of the issuance and
sale of the Refunding Bond are ratified, approved and confirmed. The officials of the Town are
authorized and directed to execute and deliver on behalf of the Town such agreements and other
instruments, documents or certificates, and to do and perform such things and acts, as they shall
deem necessary or appropriate to carry out the transactions authorized by this Resolution or
contemplated by the Refunding Bond or the Agreement, and all of the foregoing, previously
6
done or performed by such officers of the Town, are in all respects approved, ratified and
confirmed.
20. Headings. Any headings in this resolution are solely for convenience of reference
and shall not constitute a part of the resolution nor shall they affect its meaning, construction or
effect.
21. Constitutional Authority and Severability. The Refunding Bond shall be
issued under the provisions of Article VII, Section 10(a) of the Constitution of Virginia (other
than Subsection (2) thereof). The principal of and interest on the Refunding Bond shall be
payable from ad valorem taxes to be levied without limitation as to rate or amount on all
property in the Town subject to taxation, to the extent other funds of the Town are not lawfully
available and appropriated for such purpose. If any court of competent jurisdiction shall hold any
provision of this Resolution to be invalid and unenforceable, such holding shall not invalidate
any other provision hereof.
22. Filing of Resolution. The Authorized Signatory and Clerk to the Town are
authorized and directed to see to the prompt filing of a certified copy of this Resolution in the
Circuit Court having jurisdiction over the Town, in accordance with Sections 15.2-2607 and
15.2-2627 of the Public Finance Act.
23. Effective Date. This Resolution shall take effect immediately.
This Resolution was adopted on motion made by Council Member ________________ and
seconded by Council Member ____________________, with the following votes recorded:
AYES:
NAYS:
APPROVED:
___________________________________
Bradley E. Grose, Mayor
ATTEST:
_____________________________
Susan N. Johnson, Town Clerk
1
RESOLUTION NO.
AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON
TUESDAY, MAY 17, 2016, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE
VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET,
VINTON, VIRGINIA
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF VINTON,
VIRGINIA, AUTHORIZING THE ISSUANCE AND SALE OF ITS
WATER AND SEWER REVENUE REFUNDING BOND, SERIES 2016B IN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,786,000,
AND THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS
PREPARED IN CONNECTION THEREWITH
WHEREAS, the Town of Vinton, Virginia (the “Town”), has determined that it is
advisable and in the interest of the Town to refund a portion of the outstanding principal amount
of that certain indebtedness reflected by its $2,750,000 Water and Sewer Revenue Bond, Series
2007 (the “Prior Bond”); and
WHEREAS, the Town intends to refund the Prior Bond by and through the issuance of
its water and sewer revenue refunding bond in the maximum amount of $1,786,000 (the
“Refunding Bond”) to accomplish such refunding; and
WHEREAS, the Council of the Town (the “Council”) has previously received a proposal
from the Virginia Local Government Finance Corporation, a Virginia nonstock, nonprofit
corporation (“VLGFC” and the Program Administrator for the VML/VACO Finance Program)
to solicit bids from banks to purchase the Refunding Bond; and
WHEREAS, after such solicitation by VLGFC, staff recommends the proposal from
Carter Bank & Trust (the “Purchaser”) for the loan of proceeds and sale of the Refunding Bond
to the Purchaser in accordance with the terms of a Bond Purchase Agreement between the
Purchaser and the Town (the “Agreement”), the form of which has been presented to this
meeting;
BE IT RESOLVED BY THE COUNCIL OF THE TOWN OF VINTON,
VIRGINIA:
1. Issuance of Bond and Use of Proceeds. Pursuant to the Constitution of the
Commonwealth of Virginia and the Public Finance Act of 1991, as amended (the “Public
Finance Act”), Title 15.2, Chapter 26 of the Code of Virginia of 1950, as amended (the “Virginia
Code”), specifically the provisions of Virginia Code § 15.2-2643, and without regard to any
requirements or restrictions contained in any charter or special act of the Town, the Council
hereby authorizes the issuance and sale of a water and sewer revenue refunding bond of the
Town in an aggregate principal amount set forth above to provide funds to refund all or a portion
of the Prior Bond, escrow monies necessary to advance refund portions of the outstanding Prior
2
Bond and pay issuance and financing costs incurred in issuing the Refunding Bond. Such
amount is consistent with the limitations set forth in Virginia Code §15.2-2645.
2. Authorization of Bond Purchase Agreement. The form of the Agreement
submitted to this meeting is hereby approved. The Mayor and the Interim Town Manager (the
“Town Manager”), either of whom may act (each an “Authorized Signatory”), are authorized to
execute the Agreement in substantially such form, with such completions, omissions, insertions
and changes not inconsistent with this Resolution as may be approved by such official, whose
approval shall be evidenced conclusively by the execution and delivery thereof. The issuance
and sale of the Refunding Bond to the Purchaser shall be upon the terms and conditions of the
Agreement. The proceeds of such Refunding Bond shall be applied in the manner set forth in the
Agreement. All capitalized terms used but not otherwise defined herein shall have the same
meaning as set forth in the Agreement.
3. Bond Details. The Refunding Bond shall be issued as a single, fully registered
bond, shall be designated “Water and Sewer Revenue Refunding Bond, Series 2016B”, shall be
numbered R-1, and shall be in substantially the form of Exhibit A to this Resolution as hereby
approved, with such completions, omissions, insertions and changes not inconsistent with this
Resolution as may be approved by the officers signing such Refunding Bond. The Council
authorizes the issuance and sale of the Refunding Bond on such terms as shall be satisfactory to
the Authorized Signatory; provided however, that the Refunding Bond (a) shall be in a principal
amount not to exceed $1,786,000; (b) shall mature no later than August 1, 2027; and (c) shall
bear interest on the outstanding principal balance thereof at a rate of interest approved by the
Authorized Signatory, with such rate to not exceed 2.05% (provided that default interest may be
payable at a rate in excess thereof as provided in the Agreement), shall accrue certain other
ongoing costs and expenses upon the terms and conditions described in the Agreement, and the
refunding of a portion of the Prior Bond shall achieve an aggregate net present value debt service
savings of not less than 3% of the refunded amounts of the Prior Bond. As set forth in the
Agreement, the Town agrees to pay any applicable late payment or similar costs and expenses
described therein. Subject to the preceding terms, the Council further authorizes the Authorized
Signatory to determine the final terms, purchase price, initial interest rate, interest rate
adjustment provisions, maturity date, amortization schedule of the Refunding Bond and
determine which maturities (or portions thereof) of the Prior Bond are to be refunded (such
refunded maturities or portions thereof, the "Refunded Prior Bond"), all of which shall be
evidenced by the execution and delivery of the Refunding Bond, and no further action shall be
necessary on the part of the Town so long as such provisions are within the limits prescribed in
this Resolution.
4. Payment and Redemption Provisions. The principal of and premium, if any,
and interest on the Refunding Bond shall be payable as set forth in the Refunding Bond and the
Agreement. The principal of and premium, if any, and interest on the Refunding Bond shall be
payable in lawful money of the United States of America. Nothing in the Refunding Bond, this
Resolution, or the Agreement shall be deemed to create or constitute an indebtedness of the
Town, the Commonwealth of Virginia or any political subdivision thereof, or a pledge of the full
faith and credit of the Town, the Commonwealth of Virginia or of any political subdivision
thereof. The Town may, at its option, redeem, prepay or refund the Refunding Bond upon the
terms set forth in the Agreement.
3
5. Execution and Form of Bond. The Refunding Bond shall be signed by the
Mayor or Vice-Mayor and the Town’s seal shall be affixed thereon and attested by the Clerk or
Deputy Clerk of the Town. The Refunding Bond shall be issued as a typewritten bond in
substantially the form of Exhibit A, with such completions, omissions, insertions and changes
not inconsistent with this Resolution as may be approved by the Authorized Signatory, whose
approval shall be evidenced conclusively by the execution and delivery of the Refunding Bond.
6. Security for Bond. The Refunding Bond shall be a revenue bond of the Town
for which the revenues of the utility system of the Town are hereby pledged upon the terms and
conditions set forth in the Agreement to secure the payment of the principal of and premium, if
any, on the Refunding Bond.
7. Preparation of Printed Bond; Mutilated or Destroyed Bond. The Town shall
initially issue the Refunding Bond in typewritten form. The printed Refunding Bond may be
executed by manual or facsimile signature of the Mayor or Vice-Mayor, the Town’s seal affixed
thereto and attested by the Clerk or Deputy Clerk of the Town; provided, however, that if both
such signatures are facsimiles, the bond shall not be valid until it has been authenticated by the
manual signature of the Registrar and the date of authentication noted thereon. The typewritten
Refunding Bond surrendered in any such exchange shall be canceled. If the Refunding Bond has
been mutilated, lost or destroyed, the Town shall execute and deliver a new bond of like date and
tenor in exchange and substitution for, and upon cancellation of, such mutilated Refunding Bond
or in lieu of and in substitution for such lost or destroyed Refunding Bond; provided, however,
that the Town shall so execute and deliver only if the registered owner has paid the reasonable
expenses and charges of the Town in connection therewith and, in the case of a lost or destroyed
Refunding Bond, (a) has filed with the Town an affidavit reasonably satisfactory to the Town
that such Refunding Bond was lost or destroyed, and (b) has furnished to the Town reasonably
satisfactory indemnity.
8. Registration and Transfer of the Bond. The Town appoints the Treasurer of the
Town as paying agent and registrar (the “Registrar”) for the Refunding Bond. Upon surrender of
the Refunding Bond at the office of the Registrar, together with an assignment duly executed by
the registered owner or its duly authorized attorney or legal representative in such form as shall
be reasonably satisfactory to the Registrar, the Town shall execute, and the Registrar shall
authenticate and deliver in exchange, a new Refunding Bond or bonds having an equal aggregate
principal amount, of the same form and maturity, bearing interest at the same rates and registered
in such name as requested by the then registered owner or its duly authorized attorney or legal
representative. Any such exchange shall be at the expense of the Town, except that the Registrar
may charge the person requesting such exchange the amount of any tax or other governmental
charge required to be paid with respect thereto.
The Registrar shall treat the registered owner as the person or entity exclusively entitled
to payment of principal, interest and premium, if any, and the exercise of all other rights and
powers of the owner, and installments shall be paid to the person or entity shown as owner on the
registration books.
9. Delivery of Bond. The Mayor or Vice-Mayor and Clerk of the Town are
authorized and directed to take all proper steps to have the Refunding Bond prepared and
4
executed in accordance with its terms and to deliver it to the Purchaser thereof as set forth in the
Agreement.
10. Tax Compliance Documentation. Each of the Mayor and the Town Manager of
the Town is authorized to execute a Tax Compliance Agreement or any related document (the
"Tax Documents") setting forth the expected use and investment of the proceeds of the
Refunding Bond and containing such covenants as may be necessary or desirable in order to
comply with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"),
including the provisions of Section 148 of the Code and applicable regulations relating to
"arbitrage bonds," so that interest on the Refunding Bond will not be included in gross income
for federal income tax purposes. The Tax Documents may contain such elections under the Code
with respect to the Refunding Bond as the officer or officers executing them approve, and such
approval shall be evidenced conclusively by the execution and delivery of the Tax Documents.
The Town covenants that the proceeds from the issuance and sale of the Refunding Bond will be
invested and expended as set forth in the Tax Documents, to be delivered simultaneously with
the issuance and delivery of the Refunding Bond, and that the Town shall comply with the other
covenants and representations contained therein.
11. Tax and Other Documents. Each of the Mayor and the Town Manager of the
Town are authorized and directed to execute and deliver an IRS Form 8038-G in a form
approved by such officers and the Town’s bond counsel.
12. Escrow Deposit Agreement. The Authorized Signatory is authorized and
directed to execute an escrow deposit agreement (the "Escrow Agreement") for the purposes of
the refunding of the Prior Bond, with U.S. Bank, National Association acting as escrow agent
(the "Escrow Agent"). The Escrow Agreement shall be in the form approved by the Authorized
Signatory, in collaboration with the Town's bond counsel, the execution thereof by the
Authorized Signatory to constitute conclusive evidence of approval of the Escrow Agreement.
The Escrow Agreement shall provide for the irrevocable deposit of a portion of the Refunding
Bond proceeds (the "Refunding Portion") in a separate escrow fund (the "Escrow Fund") which
shall be sufficient, when invested in Government Obligations, to provide for payment of
principal of and premium, if any, and interest on the Refunded Prior Bond. If requested by the
Town, the Escrow Agent is authorized to execute an initial and final subscription form for the
purchase of the Government Obligations.
13. Deposit of Refunding Portion. The Authorized Signatory is authorized and
directed (a) to provide for the delivery of the Refunding Portion to the Escrow Agent for deposit
in the Escrow Fund, in an amount that will be sufficient, together with the interest thereon when
invested as provided in the Escrow Agreement, (i) to pay when due the interest on the Refunded
Prior Bond to the first respective dates on which they may be redeemed at the option of the Town
and (ii) to pay upon the earlier of maturity or redemption the principal of the Refunded Prior
Bond, plus the applicable redemption premium, if any, and (b) to provide for the deposit of a
portion of the remaining proceeds of the Refunding Bond in a special account to be used to pay
the costs of refunding the Refunded Prior Bond, as necessary. The Authorized Signatory is
further authorized and directed to take all such further action as may be necessary or desirable in
connection with the payment and refunding of the Refunded Prior Bond.
5
14. Redemption of Prior Bond. The Authorized Signatory is authorized and directed
to determine which maturities of the Prior Bond, if any, shall constitute the Refunded Prior
Bond. The Refunded Prior Bond is specifically and irrevocably called for redemption on the first
date on which it may be redeemed at the option of the Town. The Escrow Agreement shall
provide for notice of redemption to be given to the registered owners and Trustee of the
Refunded Prior Bond in accordance with the resolution providing for the issuance of the
Refunded Prior Bond.
15. Election to Apply Public Finance Act. Pursuant to Section 15.2-2601 of the
Virginia Code, it is hereby elected to have the Public Finance Act apply to the Refunding Bond
exclusively without regard to any charter or local act that might otherwise apply.
16. Contract with Bondholders. The provisions of this Resolution shall constitute a
contract between the Town and the bondholder for so long as the Refunding Bond is
outstanding. In the event of a conflict between the provisions of the Agreement and the
provisions of this Resolution, the Agreement shall control.
17. Limitation of Liability of Officials of Town. No covenant, condition or
agreement contained herein shall be deemed to be a covenant, agreement or obligation of an
officer, employee, member of Council, or agent of the Town in his or her individual capacity,
and no officer of the Town or member of Council executing the Refunding Bond shall be liable
personally on the Refunding Bond or be subject to any personal liability or accountability by
reason of the issuance thereof. No officer, employee or agent of the Town shall incur any
personal liability with respect to any other action taken by him or her pursuant to this resolution
provided he or she acts in good faith.
18. Conditions Precedent. Upon the issuance of the Refunding Bond, all acts,
conditions and things required by the Constitution and statutes of the Commonwealth of Virginia
or this Resolution to have happened, exist and to have been performed precedent to or in the
issuance of the Refunding Bond shall have happened, exist and have been performed.
19. Other Actions. All other actions of officials of the Town in conformity with the
purposes and intent of this Resolution and the Agreement and in furtherance of the issuance and
sale of the Refunding Bond are ratified, approved and confirmed. The officials of the Town are
authorized and directed to execute and deliver on behalf of the Town such agreements and other
instruments, documents or certificates, and to do and perform such things and acts, as they shall
deem necessary or appropriate to carry out the transactions authorized by this Resolution or
contemplated by the Refunding Bond or the Agreement, and all of the foregoing, previously
done or performed by such officers of the Town, are in all respects approved, ratified and
confirmed.
20. Headings. Any headings in this resolution are solely for convenience of
reference and shall not constitute a part of the resolution nor shall they affect its meaning,
construction or effect.
6
21. Severability. If any court of competent jurisdiction shall hold any provision of
this Resolution to be invalid and unenforceable, such holding shall not invalidate any other
provision hereof.
22. Filing of Resolution. The Authorized Signatory and Clerk to the Town are
authorized and directed to see to the prompt filing of a certified copy of this Resolution in the
Circuit Court having jurisdiction over the Town, in accordance with Sections 15.2-2607 and
15.2-2627 of the Public Finance Act.
23. Effective Date. This Resolution shall take effect immediately.
This Resolution was adopted on motion made by Council Member ________________ and
seconded by Council Member ____________________, with the following votes recorded:
AYES:
NAYS:
APPROVED:
___________________________________
Bradley E. Grose, Mayor
ATTEST:
_____________________________
Susan N. Johnson, Town Clerk
Meeting Date
May 17, 2016
Department
Finance/Treasurer
Issue
Financial Report for March 2016
Summary
The Financial Report for the period ending March 31, 2016 has been placed in the Town’s
Dropbox and on the Town’s Website.
The Finance Committee met on May 10, 2016 to discuss this report and will make a presentation
to Council at their Regular Meeting.
Attachments
March 31, 2016 Financial Report Summary
Recommendations
Motion to approve the March 2016 Financial Report
Town Council
Agenda Summary
1
Meeting Date
May 17, 2016
Department
Council
Issue
Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 A (1) of the 1950 Code of
Virginia, as amended, for discussion regarding the Interim Town Manager.
Summary
None
Attachments
Certification of Closed Meeting
Recommendations
Reconvene and adopt Certification of Closed Meeting
Town Council
Agenda Summary
AT A CLOSED MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY,
MAY 17, 2016 AT 7:00 P.M. IN THE COUNCIL CHAMBERS OF THE VINTON
MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA.
CERTIFICATION THAT A CLOSED MEETING WAS HELD
IN CONFORMITY WITH THE CODE OF VIRGINIA
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 2.2-3712 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 member's knowledge:
1. 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
2. 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 ___________, and seconded by Council Member _________
with all in favor.
___________________________________
Clerk of Council