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HomeMy WebLinkAbout11/5/2019 - Regular1 Vinton Town Council Regular Meeting Council Chambers 311 South Pollard Street Tuesday, November 5, 2019 AGENDA Consideration of: A. 7:00 p.m. - ROLL CALL AND ESTABLISHMENT OF A QUORUM B. MOMENT OF SILENCE C. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG D. UPCOMING COMMUNITY EVENTS/ANNOUNCEMENTS E. REQUESTS TO POSTPONE, ADD TO OR CHANGE THE ORDER OF AGENDA ITEMS F. CONSENT AGENDA 1. Consider approval of the minutes of the Regular Council meeting of October 15, 2019. 2. Consider adoption of a Resolution appropriating funds in the amount of $334.40 for the receipt of an insurance claim made on a Town Vehicle involved in an accident. G. AWARDS, INTRODUCTIONS, PRESENTATIONS, PROCLAMATIONS 1. Vinton Area Chamber of Commerce - 1st Quarter Report – Justin Davison H. CITIZENS’ COMMENTS AND PETITIONS - This section is reserved for comments and questions for issues not listed on the agenda. I. TOWN ATTORNEY 1. Briefing on the regulations and/or policy pertaining to small cell facilities, franchise agreements for small cell facilities, zoning and site plan requirements pertaining to wireless telecommunication facilities and public right-of-way user fees – Mike Lockaby Bradley E. Grose, Mayor Keith N. Liles, Vice Mayor Sabrina McCarty, Council Member Janet Scheid, Council Member Michael W. Stovall, Council Member 311 South Pollard Street Vinton, VA 24179 (540) 983-0607 2 J. TOWN MANAGER 1. BRIEFINGS a. Briefing on the request to Vacate a Portion of a Public Utility Easement on 410 South Pollard Street and 119 East Cleveland Avenue – Nathan McClung b. Briefing on the proposed Performance Agreement with Vinyard Station LLC and the Roanoke County Economic Development Authority (EDA) to encourage the redevelopment of the former Vinton Motors into a mixed-use development to be known as Vinyard Station - Pete Peters 2. ITEMS REQUIRING ACTION a. Consider adoption of an Ordinance to revise Water and Wastewater Fees and Charges Schedule by an increase for FY2020 and an increase of 6.0 percent in the Service Charge and 8.0 percent in the Volumetric Rate for FY2021, FY2022, and FY2023, pursuant to authority granted by Virginia Code §§ 15.2-2111, 15.2-2119 and 15.2-2122, according to the Vinton Town Code, Chapter 24, Utilities, Section 94-22 Fees and charges for water service and Section 94-74, Fees and charges for wastewater service – Anne Cantrell b. Consider adoption of a Resolution appropriating funds in the amount of $1,446,282 for the Walnut Avenue Bicycle and Pedestrian Accommodations Project – 5th Street to Town West Corporate Limit – Anita McMillan 3. COMMENTS/UPDATES K. REPORTS FROM COUNCIL COMMITTEES 1. Finance Committee L. MAYOR M. COUNCIL N. ADJOURNMENT NEXT TOWN COUNCIL/COMMITTEE MEETINGS: November 12, 2019 – 1:00 p.m. – Finance Committee Meeting – TOV Conference Room November 19, 2019 – 7:00 p.m. – Council Meeting - Council Chambers NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. 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 Meeting Date November 5, 2019 Department Town Clerk Issue Consider approval of minutes of the Regular Council meeting of October 15, 2019 Summary None Attachments October 15, 2019 minutes Recommendations Motion to approve minutes Town Council Agenda Summary 1 MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M. ON TUESDAY, OCTOBER 15, 2019, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA MEMBERS PRESENT: Bradley E. Grose, Mayor Keith N. Liles, Vice Mayor Sabrina McCarty Janet Scheid Michael W. Stovall STAFF PRESENT: Barry W. Thompson, Town Manager Susan N. Johnson, Executive Assistant/Town Clerk Jeremy Carroll, Town Attorney Pete Peters, Assistant Town Manager/Director of Economic Development Anne Cantrell, Finance Director/Treasurer Tom Foster, Police Chief Anita McMillan, Planning & Zoning Director Joey Hiner, Public Works Director 7:00 p.m. The Town Clerk called the roll with, Council Member Scheid, Council Member McCarty, Council Member Stovall, Vice Mayor Liles present. Roll call After a Moment of Silence, Charlie Turner led the Pledge of Allegiance to the U.S. Flag. Vice Mayor Liles made a motion to approve the seconded by Council Member Scheid and carried by the following vote, with all members voting: Vote 5-0; Yeas (5) – McCarty, Nays (0) – None. Approved minutes of Regular Council meeting of October 1, 2019 Under upcoming community events, Council Member McCarty announced the following: October 19 – 9:30 a.m. to 2:30 p.m. - Ryan’s Cases for Smiles – Farmers’ Market; October 19 – 4:00 p.m. - The Spooktacular Talent Star City Fundraiser – Playhouse; October 19 – 7:30 p.m. - Hockey – Lancerlot; October 31 – 3-5:30 p.m. – Downtown Trick or Treat and November 1 – Virginia Tech Hockey vs High Point University – 7:30 p.m. – Lancerlot. Council Member McCarty also commented on the Mingle at the Market and Barktoberfest this past weekend. Under awards, introductions, presentations, Chief Foster made brief comments and presented a plaque 2 Chief Foster next reviewed a PowerPoint presentation on the 1st quarter statistics for the Department, which was a part of the agenda package and is on file in the Town Clerk’s Office as a part of the permanent record. FOIA requests to the Police Department. Chief Foster responded most of the time it is insurance companies and those requesting criminal investigative reports. He further explained that in Virginia there are certain parts pursuant to the State Code. Council Member Scheid they can charge, but generally the document provided is only one to two pages. T commented that charges can be ma cost and for staff time; however, most localities do not charge if it is a five-minute search and involves sending an email or printing a two to three-page document. Under citizens’ comments and petitions, Jeremy Seitz made comments on information regarding the typ looking for and the contact information. Council meeting to make a more detailed presentation. The Mayor referred him Town Clerk for scheduling. The next item on the agenda was the consideration of public comments on a request to revise Water and Wastewater Fees and Charges Schedule pursuant to authority granted by Virginia Code §§ 15.2-2111. 15.2- 2119 and 15.2-2122, according to the Vinton Town Code, Chapter 24, Utilities, Section 94- charges for water service and Section 94-74, Fees and charges for wastewater service. The Mayor opened the Public Hearing at 7:40 p.m. Anne Cantrell commented the Town hired Davenport & Company to do a rate study, which was presented to adjustment to the rates to accompany an $8.3 million investment in the utility system. changes will be a decrease in the minimum charge and an increase in the consumption to remove the provision that would allow for the first 3,000 gallons on Public Hearing opened 3 informational brochure was posted on Facebook. The website and other social media. Ms. Cantrell further commented that she only heard from one citizen who had a few questions, but nothing negative. The Town Manager commented that one individual spoke to him and was very happy to see they we are monthly and volumetric billing. There were no public comments. C thoroughly studied and discussed and Davenport did a great job. It was discussed several times in Finance Committee and at several Council meetings. Staff has done a great job in reviewing this and giving Council guidance and she thought forward. The Mayor agreed and commented Mayor Liles commented that he liked the seamless approach. Hearing no further Public Hearing at 7:44 p.m. The Mayor commented that Council will take action on the matter at their Town Clerk commented that there are some changes that will need to be made to the Town Code. Ms. Cantrell commented that the changes will not relate to the rates, but in order to go to monthly billing in July, 2020, there will be some language to be amended in the Code because it now currently mentions the 18th as being the due date. It that being done brought to Council in the Spring. discussion, the Town Manager commented that staff would work with the Town Attorney on the necessary changes to the Code. Public Hearing closed The next item on the agenda was to consider Roanoke Valley-Alleghany Plan dated August 15, 2019. Anita McMillan commented that she briefed Council at their October 1, 2019 meeting on the Plan, which has to be adopted in order for the Town or any locality in the Roanoke Valley to apply for a federal assistance grant mitigation, property acquisition and relocation. The Plan has been reviewed and approved by Department of Emergency Management (VDEM) and the Federal Emergency Management Agency (FEMA) Each locality has to adopt a Resolution for the Plan to be 4 Council Member Scheid made a motion to adopt the Resolution as presented; the motion was seconded by Council Member Stovall roll call vote, with all members voting: Vote 5-0; Yeas (5) – McCarty, Scheid, Stovall, Liles, Grose; Nays (0) – None. Adopted Resolution No. 2322 approving and adopting the Roanoke Valley-Alleghany Regio Mitigation Plan dated August 15, 2019 The next item on the agenda was to consider services contract and authorizing the Town Manager to execute the contract with Mattern & Craig for the Walnut Project – 5th Street to Town West Limits. Anita McMillan commented that the estimated total project cost is $1.4 million and will be funded by the Regional Surface Regional Surface Transportation Program (RSTP)/Set- Aside Transportation Block Grant (STBG) Program. As Council was briefed at their last meeting, this project was changed from a pedestrian bridge to this Walnut Avenue project, which staff thought would be more beneficial to the Town. She expressed appreciation to the Town estimated at $166,800 for the Project. The Town Attorney commented for the record that the materials in the agenda packet did not include Exhibits A and B to the Contract, which are the RFP and the proposal from Mattern & Craig. Council Member McCarty made a motion to adopt the Resolution as presented; the motion was seconded by Vice Mayor Liles and carried by the following roll call vote, with all members voting: Vote 5-0; Yeas (5) – McCarty, Scheid, Stovall, Liles, Grose; Nays (0) – None. Adopted Resolution No. 2323 Manager to execute the contract with Accommodations Project – 5th Street to Town West Limits The Mayor commented on the success of the Fall Festival/Octoberfest/Rockoberfest, Development Tour with the Roanoke County Board of Supervisors and the Grand Opening and Ribbon Cutting at the Billy Byrd Apartments. Comments from Council: Vice Mayor Liles and Festival/Octoberfest/Rockoberfest. Scheid commented on the recent VML Conference that was held in Roanoke Development Tour with the Roanoke County Board of Supervisors. 5 The next item on the agenda was a request to convene in Closed Meeting, Pursuant to §2.2- business interested in locating in the Vinton downtown area where no previous announcement has been made community and § 2.2-3711 (A) (7) for consultation with legal counsel and briefings by staff members pertaining to actual litigation, where such consultation or briefing in negotiating or litigating posture. Council Member Stovall made a motion to convene in Closed Session; the motion was seconded by Vice Mayor Liles members voting: Vote 5-0; Yeas (5) – McCarty, Scheid, Stovall, Liles, Grose; Nays (0) – None. Council went into Closed Session at 7:56 p.m. At 9:15 p.m., the regular meeting reconvened and the approved on motion by Vice Mayor Liles; seconded by Council Member Stovall and carried by the following roll call vote, with all members voting: Vote 5-0; Yeas (5) – McCarty, Scheid, Stovall, Liles, Grose; Nays (0) – None. Certification of Closed Meeting Vice Mayor Liles made a motion to adjourn the meeting; the motion was seconded by Council Member members voting: Vote 5-0; Yeas (5) – McCarty, Scheid, Stovall, Liles, Grose; Nays (0) – None. The meeting was adjourned at 9:16 p.m. Meeting adjourned APPROVED: ________________________________ Bradley E. Grose, Mayor ATTEST: ______________________________ Susan N. Johnson, CMC, Town Clerk Meeting Date November 5, 2019 Department Public Works Issue Consider adoption of a Resolution appropriating funds in the amount of $334.40 for the receipt of an insurance claim made on a Town Vehicle involved in an accident. Summary On July 15, 2019, a pick-up truck incurred damage. A check in the amount of $334.40 has been received from Virginia Risk Sharing Association (VRSA) and deposited in Revenue Account 200.1901.001 Recoveries and Rebates. This check is for the payment of collision loss less the deductible of $500.00 on a 2018 Chevrolet Silverado Pickup Truck VIN # 0975. It is necessary to appropriate the $334.40 to Public Works Highway, Water System Maintenance Account 300.9410.304 Maintenance and Repairs – Equipment in order to pay the repair invoices when received. Attachments Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, NOVEMBER 5, 2019 AT 7:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, on July 15, 2019, a pick-up truck incurred damage; and WHEREAS, the proper insurance filing was made to the Virginia Risk Sharing Association (VRSA) and the amount less the $500.00 deductible has been received into the Revenue Account 200.1901.001– Recoveries and Rebates in the amount of $334.40; and WHEREAS, in order that Berglund Chevrolet can be paid when the invoice is received, it is necessary for the Vinton Town Council to appropriate the funds from the Revenue Account 200.1901.001 – Recoveries and Rebates to the Public Works Operating Budget Account Number 300.9410.304 Maintenance and Repair of Equipment. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby approve the following transaction: BUDGET ENTRY GENERAL LEDGER: 200.25100 Appropriations $334.40 200.25000 Estimated Revenue $334.40 FROM REVENUE: 200.1901.001 Recoveries and Rebates $334.40 TO EXPENDITURE: 300.9410.304 Maintenance & Repair of Equipment $334.40 This Resolution adopted on motion made by Council Member______ , seconded by Council Member ___________________, with the following votes recorded: AYES: NAYS: APPROVED: Bradley E. Grose, Mayor ATTEST: ______________________________________ Susan N. Johnson, CMC, Town Clerk Meeting Date November 5, 2019 Department Administration Issue Vinton Area Chamber of Commerce – 1st Quarter Report Summary Justin Davison, President, will be at the meeting to give this report on behalf of the Chamber. Attachments PowerPoint Presentation Recommendations No action required Town Council Agenda Summary Membership is now over 270+, 7 new members this quarter 29 Annual Sponsorships A good flux of event sponsorships specifically for Mingle, Fall Festival, Golf Tournament 7 new members 14 Sponsored Community Events throughout the year, we still have the Christmas Parade still to come Chamber Chatter-We have used this platform this quarter to talk about the farmers market, Steakfest, Barktoberfest, the Fall Festival & Oktoberfest. Rocktoberfest. Also streamed on FB Live to capture additional audiences Lunch & Learns-Steady growth. Great speaker, Ashton Fallon from TAP (William Byrd Graduate) Solid networking and have some exciting announcements to come soon for 2020 Living Local Segment on WFXR TV for events-Strong relationship with Kiana Strong media connections with WDBJ7 with appearances on the Morning show and 7 @4. Creation of magnet that spotlights all events. Magnets USA sponsored this by printing and donating 2500 magnets #InVinton Fall Festival was a great success. Had a great turnout and lots of happy attendees & vendors. Biggest crowds ever at the Municipal Building Stage FALL FESTIVAL & OKTOBERFEST 2019 FALL FESTIVAL & OKTOBERFEST 2019 VACC JOB EXPO * OVER 10 COMPANIES REPRESENTING NUMEROUS INDUSTRIES ATTENDED * GOOD TRUCK VENDOR ON LOCATION FOR ALL LUNCH NEEDS * RECENTLY LAID OFF FREIGHT CAR EMPLOYEES CAME BY RIBBON CUTTINGS VINTON KROGER- NOVEMBER 6TH AT 8 AM THE HAIR COMPANY- NOVEMBER 12TH AT 11:30 AM UPCOMING EVENT •GREAT NETWORKING •GREAT SPONSORS FOR THIS AFTER HOURS •SPOTLIGHTING A GREAT LOCAL BUSINESS ILLUMINIGHTS ACTIVELY ENGAGING LOCAL BUSINESSES TO HAVE THEM SPONSOR THE VINTON NIGHT HOODIES ACTIVELY WORKING ON VOLUNTEERS FOR THE VINTON NIGHT AT ILLUMINIGHTS Meeting Date November 5, 2019 Department Planning and Zoning/Town Attorney Issue Briefing on the regulations and/or policy pertaining to small cell facilities; franchise agreements for small cell facilities, zoning and site plan requirements pertaining to wireless telecommunication facilities and public right-of-way user fees. Summary Staff was contacted by Cox Communications requesting a franchise for use of the Town’s public right-of-ways and on Town-owned facilities such as street lights and traffic signal poles. Because this is a complicated and rapidly-evolving area of law, staff reached out to Jeremy Carroll, the Town Attorney, to address how best to handle the franchise and zoning of small cell facilities. Mr. Carroll referred the matter to one of his partners, Michael Lockaby, due to his proficiency with the subject matter. Town personnel and Mr. Lockaby have been in several discussions and meetings pertaining to the above-mentioned subject. The first step, which the Town must do, is advertise the Cox proposal and ask for competing franchise proposals. All persons who submit franchises that meet the criteria must be granted non- exclusive franchises to use the public rights-of-way. There are also necessary updates to other ordinances to deal with this new technology. Finally, the work session of the Planning Commission on the proposed wireless facilities regulations will be held on Thursday, November 14, 2019 at 5:45 p.m., and a joint public hearing of the Town Council and Planning Commission will be held on December 17, 2019. Attachment PowerPoint Presentation Recommendations Direct staff to advertise for competing sealed proposals for small cells in the rights-of-way, with proposals to be unsealed at the December 3, 2019, Council meeting. Town Council Agenda Summary Small Cells VINTON TOWN COUNCIL NOVEMBER 5, 2019 Small cells can be unobtrustive… Or… less pretty. The steps and issues staff has identified: Franchise to use public rights-of-way Pole attachments to Town property in rights-of-way Administrative process Legislative process What is a franchise? A special type of lease to use the Town’s roads and streets. Common law: Public highways, whether they be in the country or in the city, belong, not partially but entirely, to the public at large, and the supreme control over them is in the legislature. This plenary power over the streets to a certain extent is conferred by the legislature of the state upon the cities and towns thereof. Any part of the highway may be used by the traveler, and in such direction as may suit his or her convenience or taste. No private person has a right to place any obstruction which interferes with this right on any part of the highway within its exterior limits. The duty of the public entity that maintains the highway is to perform a positive act in the preparation and preservation of a sufficient traveled way. The duty of others is to abstain from doing any act by which any part of the highway would become more dangerous to the traveler than in a state of nature, or than in the state in which the public entity that maintains the highway has left it.(Price v. Travis, 1927). All franchise proposals must be advertised in accordance with law. Occupation of the streets without a franchise is a common nuisance, and officers of a corporation that does so may be jailed for contempt. So what does a franchise provide? Provides the right to use the streets in a defined way, for a defined term less than 40 years in duration. New state law provides that a small cell franchise must be 10 years, with up to three five-year options. A franchise typically requires insurance, an indemnification bond, and coordination with the Town Public Works Director on work in the streets, among numerous other conditions. State law requires us to accept “non-exclusive” franchises for small cells and backhaul if they meet franchise criteria. Operating streets is expensive… Overhead and underground lines are subject to the State Rights-of- Way Use Fee, calculated by VDOT. General Assembly adopted rights-of-way use fee for small cell facilities as well, ranging from $1,000 to $5,000 per installation and of $1 per square foot for occupation of the ground. Federal Communications Commission (FCC) preempted this fee, and held that $270 per facility is appropriate. May charge a higher rate if a study is carried out that demonstrates higher costs. Zoning Requirements New legislation from General Assembly in 2017-18 that changes the landscape Declaratory ruling from the FCC (effective January 2019) that changes it even more Small cell facilities and modifications not making a substantial change to a wireless facility must be administrative Can still use the special use permit (SUP) process for “tall towers” but the process is restricted in several ways Much (but not all) of our ability to regulate siting and aesthetics of wireless facilities is preempted Staff recommendations Authorize advertisement for bids for small cell franchises to use the public rights-of-way, with opening to occur at the December 3, 2019, Council meeting. Authorize staff to move forward with amendments to the Town rights-of-way use fee ordinance (and coincidentally clean up the communications sales and use tax language, which is obsolete). Authorize staff and the Planning Commission to move forward with amendments to the Zoning Ordinance to provide for a site plan process and development criteria for small cells and small cell support structures. Authorize staff and the Planning Commission to move forward with revisions to the Zoning Ordinance to provide for an SUP process in compliance with state and federal law for tall towers. Questions? Meeting Date November 5, 2019 Department Planning and Zoning Issue Briefing on the request to Vacate a Portion of a Public Utility Easement on 410 South Pollard Street and 119 East Cleveland Avenue. Summary Town Staff is requesting that a portion of a public utility easement on 410 South Pollard Street (Tax Map ID#: 060.16-09-01.00) and 119 East Cleveland Avenue (Tax Map ID#: 060.16-09- 02.00) be vacated by an ordinance of the Town Council pursuant to the provisions of Section 15.2- 2272 of the 1950 Code of Virginia, as amended. The main purpose behind this vacation request is to allow for the future development or redevelopment of this parcel. The present location and breadth of this public utility easement would disallow for any type of reasonable development of this parcel. The Town has reviewed the existing utility facilities located within the said easement and has proposed a suggested portion of the easement to be vacated/closed. The end point was decided with the purpose of maintaining the existing drainage easement as well as maintaining access to an existing sanitary sewer main on the north-west portion of the property. The Town of Vinton Public Works Department will remove the ¾ inch water line within the portion of the easement being proposed for vacation. The major utility companies with franchise agreements with the Town (AEP, Cox Communications, Roanoke Gas, and Verizon) have all been contacted concerning this vacation request and with the exception of Verizon, have been supplying the Town with information regarding the proximity of their installations to the area being reviewed. Attachments Plat with the portion proposed to be vacated highlighted Recommendations No action required. Town Council Agenda Summary 1 Meeting Date November 5, 2019 Department Administration Issue Briefing on the proposed Performance Agreement with Vinyard Station LLC and the Roanoke County Economic Development Authority (EDA) to encourage the redevelopment of the former Vinton Motors into a mixed-use development to be known as Vinyard Station. Summary The Town of Vinton, in partnership with the Roanoke County Economic Development Authority, has negotiated terms of a Performance Agreement with Vinyard Station LLC. The agreement is valued up to $750,000 over a ten year period and is intended to encourage the redevelopment of the former Vinton Motors into a mixed-use commercial and retail development to be known as Vinyard Station. In additional to the building improvements, a primary function of the Performance Incentive is to establish and partially fund the addition of centralized parking infrastructure for the downtown business district. The parking and pedestrian access that has been designed for the site will support both the Vinyard Station development, but also provide parking and convenient access to support other existing business located within the downtown area. Terms of the Performance Agreement include the Town of Vinton appropriating to the Roanoke County Economic Development Authority an initial cash payment of $250,000 towards the purchase of eight (8) vacant parcels for the purpose of establishing the parking and pedestrian access for the site. The Town also agrees to appropriate to the Roanoke County Economic Development Authority an additional payment of $50,000 annually for a period of ten years for the balance of the Incentive Grant. The appropriation to the EDA will be provided for a ten year period and is not to exceed $750,000 over the term of the performance agreement. The agreement contains protections to relieve the Town from the funding commitment should the project not materialize, not meet investment goals or be sold before the end of the agreement. The Town of Vinton is also in discussions with Roanoke County for a separate funding agreement in the form of a Memorandum of Understanding (MOU) Town Council Agenda Summary 2 to help support the Incentive Grant for Vinyard Station, which is to be based on a portion of the net revenue increases that the County expects to generate as a result of the redevelopment project. The proposed Vinyard Station will generate new and increased revenue for the Town of Vinton through the collection of Prepared Food & Beverage Tax, Sales Tax, Personal Property Tax, Business License Tax and Real Estate Tax. The proposed project is also projected to generate new and increased revenue for Roanoke County through the collection of Sales Tax, Personal Property Tax and Real Estate Tax. In total, the Vinyard Station project is expected to generate in excess of $130,000 annually in combined increased tax revenues for the Town and County. The total private investment towards the purchase and renovation of Vinyard Station is anticipated to be approximately $2.7 million and will create nearly 12,000 square feet of move-in ready leasable space and serve as a cornerstone of the Downtown. The one current primary anchor tenant that has agreed to terms for a 10 year lease will occupy just over one-third of the total available space, has committed over $500,000 of the total project investment and anticipates staffing over 15 employees. Staff will seek a Resolution to authorize the Performance Agreement with Vinyard Station LLC at the November 19th Town Council Meeting. Attachments Draft Performance Agreement Vinyard Station Presentation Recommendations No action required 1 LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT This Performance Agreement is made and entered into this ___ day of November, 2019, by, between, and among the Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia (the “Town”), the Economic Development Authority of Roanoke County, Virginia, a political subdivision of the Commonwealth of Virginia created under the Industrial Development and Revenue Bond Act (the “Authority”), and Vinyard Station, LLC, a limited liability company validly organized and existing under the laws of the Commonwealth of Virginia (the “Company”). Collectively, the Town, Authority, and Company may be referred to herein as the “Parties”. RECITALS: WHEREAS, the Company has entered into a Purchase Agreement with the estate of William P. Vinyard, Jr. to acquire certain real property, together with all improvements thereon and all rights and appurtenances thereunto pertaining, located in the County of Roanoke, Virginia, Parcel ID 060.16-02-05.00-0000, containing .467 of an acre; Parcel ID 060.16-02- 04.00-0000 containing .0262 of an acre; and commonly known as the Vinton Motors Showroom and Parts Department (collectively the “Buildings”); and WHEREAS, the Company has entered into a Purchase Agreement with the estate of William P. Vinyard, Jr. to acquire certain real property, together with all improvements thereon and all rights and appurtenances thereunto pertaining, located in the County of Roanoke, Virginia and having the following Roanoke County Tax Map Numbers: Tax Parcel ID 060.16-02-06.00-0000, containing .0783 of an acre; Tax Parcel ID 060.16-02-07.00-0000, containing .0454 of an acre; Tax Parcel ID 060.16-02-08.00-0000, containing .1661 of an acre; Tax Parcel ID 060.16-02-09.00-0000, containing .1573 of an acre; Tax Parcel ID 060.16-02-10.00-0000, containing .1514 of an acre; Tax Parcel ID 060.16-02-11.00-0000, containing .0449 of an acre (collectively the “Parking Area”); and WHEREAS, the Company has entered into a Purchase Agreement with the estate of William P. Vinyard, Jr. to acquire certain real property, together with all improvements thereon and all rights and appurtenances thereunto pertaining, located in the County of Roanoke, Virginia and having the following Roanoke County Tax Map Numbers: Tax Parcel ID 060.16-02-15.00-0000, containing .109 of an acre (the “Vacant Lot”); WHEREAS, the Company intends to renovate the Buildings and lease them to a Tenant or Tenants that in turn will create New Jobs, as hereinafter defined, in the Town; and 2 WHEREAS, the Company intends to develop the Parking Area for use by Tenants, customers of Tenants, and the public; and WHEREAS, the Company intends to develop a pedestrian access over the Vacant Lot and portions of the Buildings and Parking Area; and WHEREAS, by renovating the Buildings and leasing them to Tenants and by developing the Parking Area and pedestrian access, the Company will be making, directly or indirectly, a significant Capital Investment, as hereinafter defined, in the Town and creating a significant number of New Jobs in the Town; and WHEREAS, the Town and the Authority recognize that the Company’s renovation and leasing of the Buildings and development of the Parking Area and pedestrian access will promote economic development in the Town and provide additional tax revenue, employment opportunities, and contribute to the vitality of the area; and WHEREAS, the Town is willing to provide funds to the Authority for the Authority to provide a Local Economic Development Incentive Grant to the Company (the “Grant”) for the purpose of inducing the Company to renovate the Buildings for use by Tenants and to develop the Parking Area and pedestrian access for use by Tenants, customers of Tenants, and the public, thereby making, directly and indirectly, a significant Capital Investment in the Town and creating a significant number of New Jobs in the Town; and WHEREAS, the acquisition, renovation, and development of the Buildings, Parking Area and Vacant Lot will require a Capital Investment by the Company and its Tenants of at least $2,720,000; and WHEREAS, the Company and its Tenants will create at least 15 full-time equivalent New Jobs; and WHEREAS, the stimulation of additional tax revenue and economic activity to be generated by the Capital Investment and New Jobs constitutes a valid public purpose for the expenditure of public funds and is the animating purpose for the Grant: WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises, the mutual benefits, promises, and undertakings of the parties to this Agreement as set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do covenant and agree as follows: 3 I. Definitions. For the purposes of this Agreement, the following terms shall have the following definitions, unless the context or manifest purpose of this Agreement indicate otherwise: Capital Investment means: (i) an expenditure by the Company in an amount not less than $420,000 for the acquisition of the Buildings; (ii) an expenditure by the Company in an amount not less than $550,000 for the acquisition of the Parking Area and the Vacant Lot; (iii) an expenditure by the Company in an amount not less than $250,000 for the development of the Parking Area and pedestrian access; and (iv) an expenditure by the Company and/or its Tenants in an aggregate amount not less than $1,500,000 for the renovation of the Buildings, including, engineering , architectural, developer and legal fees, building construction costs, and furniture, fixtures and equipment. Maintain means that the New Jobs created pursuant to this Agreement with the assistance of the Grants will continue without interruption from the Job Creation Performance Date through the Job Maintenance Performance Date. New Jobs means new permanent full-time equivalent employment of an indefinite duration at the Buildings for which the Tenant pays an average hourly wage of at least $10.00. Each New Job must require a minimum of either (i) 35 hours per week of an employee’s time for the Tenant’s normal year, which “normal year” must consist of at least 48 weeks, or (ii) 1,680 hours per year. Part-time positions may be aggregated to equal a full- time equivalent position. Seasonal or temporary positions with construction contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall not qualify as New Jobs. Performance Date means, for each respective Target, the following: a. Property Acquisition Performance Date – December 31, 2019 b. Easement and Fee Simple Conveyance Performance Date – December 31, 2020 c. Leased Premises Performance Date – December 31, 2020 d. Capital Investment Performance Date – April 1, 2021 e. Job Creation Performance Date – April 1, 2021 f. Job Maintenance Performance Date – April 1, 2030 If the Town deems that good faith and reasonable efforts have been made and are being made by the Company and its Tenants to achieve the Target(s) by the respective Performance Date, the Town may, in its sole discretion, extend any or all of the Performance Dates by up to 12 months. If any Performance Date is extended, 4 the Town shall send written notice of the extension to the Authority and the Company and the date to which any Performance Date has been extended shall become the new “Performance Date” for the Target that is the subject of the extended Performance Date. Target means the Company’s obligations pursuant to this Agreement to: (i) make, directly or indirectly through its Tenants, Capital Investments in the Buildings, Parking Area and Vacant Lot of at least $2,720,000.00; (ii) lease all or portions of the Buildings to Tenants; (iii) create, directly or indirectly, at least 15 New Jobs at the Buildings; and (iv) Maintain, directly or indirectly, at least 15 New Jobs at the Buildings, all as of the respective Performance Date. Tenants mean the entity or entities that lease all or portions of the Buildings, make Capital Investments in the Buildings, and create and Maintain New Jobs at the Buildings. The Company shall be credited for any Capital Investment made by Tenants as of the Capital Investment Performance Date, any New Jobs created by Tenants as of the Job Creation Performance Date, and any New Jobs Maintained by Tenants as of the Job Maintenance Performance Date. II. Targets. a. The Company will acquire the Buildings, Parking Area and Vacant Lot by the Property Acquisition Performance Date. b. The Company will enter into a lease or leases for the all or portions of the Buildings by the Leased Premises Performance Date. c. The Company will, directly or indirectly through its Tenants, make a Capital Investment of not less than $2,720,000 in the Buildings, Parking Area and Vacant Lot by the Capital Investment Performance Date. The development of the Parking Area, Vacant Lot and pedestrian access must be undertaken pursuant to plan presented to and approved by the Town in advance of any work on the Parking Area, Vacant Lot and pedestrian access provided that such approval by the Town shall not be unreasonably withheld, conditioned, or delayed. d. The Company will, directly or indirectly through its Tenants, create 15 New Jobs at the Buildings by the Job Creation Performance Date. e. The Company will, directly or indirectly through its Tenants, Maintain 15 New Jobs at the Buildings from the Job Creation Performance Date through the Job Maintenance Performance Date. 5 III. Conveyance of Fee Simple and Easement Over Certain Property. In addition to achieving the Targets enumerated in Section II by each respective Performance Date, the Company shall, by the Easement and Fee Simple Conveyance Performance Date: a. acquire and convey to the Town by Special Warranty Deed the fee simple interest in the Vacant Lot, which is that certain real property located in the County of Roanoke, Virginia and identified as Tax Parcel ID 060.16-02-15.00-0000, containing .1099 of an acre, which deed shall be in a form reasonably acceptable to the Town; and b. grant the Town and the public a perpetual easement over, upon and across that certain real property located in the County of Roanoke, Virginia and identified as Tax Parcel ID 060.16-02-04.00-0000, and that certain real property located in the County of Roanoke, Virginia and identified as Tax Parcel ID 060.16-02-05.00-0000, so that the Company may establish and maintain a pedestrian thoroughfare as depicted in the schematic drawing attached hereto as Exhibit A, which deed of easement shall be in a form reasonably acceptable to the Town. These areas subject to the fee simple conveyance and easement are to be developed as part of the pedestrian access in accordance with the Town-approved plans under Section II.c. IV. Grant. The Grant will be paid by the Authority to the Company in multiple installments as an inducement to the Company to achieve and Maintain the Targets. The Town will provide the funds to the Authority for the purpose of making the Grant as set forth herein. The Company will use the Grant proceeds as reimbursement of expenses related to achieving the Targets. The maximum amount of the Grant shall be $750,000. Upon receipt of the Grant proceeds from the Town, the Authority shall disburse the Grant proceeds in multiple payments to the Company as follows: a. Initial Payment: Once the Company closes on the purchase of all of the parcels that comprise the Buildings, the Parking Area and the pedestrian access, the Town will pay to the Authority and the Authority will pay to the Company the sum of $250,000. Prior to the Initial Payment by the Town, the Managing Member of the Company shall, in his personal capacity, provide the Town with a promissory note payable to the Town in the amount of $150,000, as security for the repayment obligation under Section VI. The remaining $100,000 will be secured by the conveyance of the fee simple and deed of easement for the pedestrian access as described in Section III.a. and Section III.b. 6 b. Annual Payments: Commencing on December 31, 2021 and continuing for ten consecutive years thereafter until December 31, 2030, the Town will pay to the Authority and the Authority will pay to the Company the sum of $50,000 per year, provided that the Company has delivered to the Town and the Authority notice and evidence satisfactory of the Company’s achieving and Maintaining the Targets as follows: 1. The Company will provide evidence that it has, directly or indirectly through its Tenants, made Capital Investments totaling at least $2,720,000 by the Capital Investment Performance Date by providing a copy of the approved Roanoke County Building Permit and valid Occupancy Permit. 2. On each April 1 following the Job Creation Performance Date through the Job Maintenance Performance Date, the Company will provide evidence that it has continued to maintain, directly or indirectly through its Tenants, 15 New Jobs at the Buildings by providing information concerning the current Town of Vinton Business Licenses applied for and received by Tenants. c. Within 30 days of its receipt of such Grant proceeds from the Town, the Authority will disburse such Grant proceeds to the Company. d. The Company shall forfeit future payments from the Grant if, at any time, it: (i) fails to achieve any Target required by Section II or Section III of this Agreement by the respective Performance Date; (ii) fails to provide the Town and Authority with notice and evidence reasonably satisfactory to the Town and the Authority, as required by this Section IV of this Agreement, that demonstrates that the Company has, directly or indirectly through its Tenants, achieved and Maintained the Targets as of the respective Performance Date; (iii) conveys any of the property identified herein that comprises all or any portion of the Buildings or the Parking Area to any entity without the prior consent of the Town and the Authority; or (iv) breaches any other provision of this Agreement which breach is not cured within thirty (30) days of written notice of such breach to the Company from either the Town or the Authority. V. Reporting. The Company shall annually provide, at the Company’s expense, detailed verification reasonably satisfactory to the Town and the Authority of the Company’s progress on the Targets. For the purposes of verifying the accuracy of reports, and for no other purpose, the Company hereby waives its protections under Section 58.1-3 of the Code of Virginia, 1950, as amended, and authorizes the Commissioner of the Revenue for Roanoke County, Virginia, to provide verification to the Town and the Authority from her records; provided, 7 however, that such disclosure shall not waive the protections of § 58.1-3 as to any other person, nor authorize the Town or the Authority to disclose such information to any other person. The Company will be solely responsible for obtaining and providing detailed verification reasonably satisfactory to the Town and the Authority of Capital Investment made by Tenants to be credited towards the Company’s Capital Investment obligation and New Jobs created and Maintained by Tenants to be credited towards the Company’s New Jobs obligation. In addition to other reporting required under this Agreement, the Town or the Authority may request such other documentation or review as may be reasonably necessary to verify the Targets. VI. Repayment; Forfeiture. a. For the purposes of repayment, the Grant is to be allocated as $375,000 (50%) for the Capital Investment Target and $375,000 (50%) for the New Jobs Target. The Initial Payment under Section IV is to be allocated as $125,000 (50%) for the Capital Investment Target and $125,000 (50%) for the New Jobs Target. The aggregate of Annual Payments is to be allocated as $250,000 (50%) for the Capital Investment Target and $250,000 (50%) for the New Jobs Target. b. If the Company has met at least 90% of the Capital Investment Target ($2,448,000) at the Capital Investment Performance Date and 90% of the New Jobs Target (13 New Jobs) at the Job Creation Performance Date, then and thereafter the Company will not be obligated to repay any of the Initial Payment. c. If the Company fails to meet at least 90% of the Capital Investment Target ($2,448,000) at the Capital Investment Performance Date, then the Company shall: i. Repay the proportion of Initial Payment allocated to the Capital Investment Target that matches the Company’s shortfall in achieving the Capital Investment Target. For example, if as of the Capital Investment Performance Date, the Company has received the Initial Payment from the Grant proceeds, but it achieves only 75% of its Capital Investment Target ($2,040,000), then the Company shall repay to the Authority 25% of the Initial Payment allocated to the Capital Investment Target ($31,250). ii. Forfeit the portion of the Annual Payments allocated to the Capital Investment Target ($250,000). d. If the Company fails to meet at least 90% of the New Jobs Target (13 New Jobs) at the Job Creation Performance Date, then the Company shall: i. Repay the proportion of Initial Payment allocated to the New Jobs Target that matches the Company’s shortfall in achieving the New Jobs Target. For example, if as of the Job Creation Performance Date, the Company has received the Initial Payment from the Grant proceeds, but it achieves only 75% of its New Jobs Target (11.25 New Jobs), then the 8 Company shall repay to the Authority 25% of the Initial Payment allocated to the Capital Investment Target ($31,250). ii. Forfeit the portion of the Annual Payments allocated to the New Jobs Target ($250,000). g. The Company also will forfeit future Annual Payments if it fails to maintain the New Jobs as required in Section II from the Job Creation Performance Date through the Job Maintenance Performance Date. Failing to Maintain the New Jobs as required in Section II will not require the repayment of prior Grant payments. VII. Notices. Any notices required or permitted to be given under this Agreement shall be given in writing, and shall be deemed to be received upon receipt or refusal after mailing of same in the United States by First-Class U.S. Mail, certified, postage prepaid, or by customary commercial overnight courier (refusal shall mean return of certified mail or overnight courier package not accepted by addressee): VINYARD STATION, LLC P.O. Box 450 Fincastle, VA 24090 Attn: Dale Wilkinson, Managing Member SPIGLE, MASSEY & CLAY, PLC 8166 Roanoke Road Fincastle, VA 24090 Attn: David B. Spigle ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA 5204 Bernard Drive, SW Room 421 Roanoke, Virginia 24018 ROANOKE COUNTY ATTORNEY’S OFFICE 5204 Bernard Drive, SW Fourth Floor Roanoke, Virginia 24018 Attn: Peter Lubeck, Sr. Asst. County If to the County, to: TOWN OF VINTON, VIRGINIA 311 Pollard Street Vinton, Virginia 24179 Attn: Barry Thompson, Town Manager With a copy to: TOWN ATTORNEY Guynn, Waddell, Carroll & Lockaby, P.C. 415 S. College Ave. Salem, Virginia 24153 Attn: Jeremy E. Carroll 9 The addresses set forth in this section only may be amended by sending written notice to all other parties of a change of address, without need of signed amendment to this Agreement. VIII. Miscellaneous. Indemnity. The Company agrees to indemnify, defend, and hold the Authority, the Town, and their officers, directors, and employees, free and harmless for and from any and all claims, causes of action, damages or any liability of any type, including reasonable attorneys’ fees, on account of any claims by or any injury or damage to any persons or property growing out of or directly or indirectly resulting or arising in any way out of any actions, omissions or activities of the Company or its agents, employees or representatives arising out of or connected in any way to any of the matters involved in this Agreement or its performance. Integration. This Agreement, including the exhibits hereto, constitutes the full and complete agreement of the Parties respecting its subject matter, and any prior or contemporaneous agreements or understandings, written or oral, are hereby merged into and superseded by the provisions of this Agreement. This Agreement may only be amended or supplemented by a subsequent writing of equal dignity except where expressly set forth herein. This Agreement may not be assigned by a Party without the prior written consent of the other Parties. No covenants of officials. No covenant, agreement or obligation contained in this Agreement shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority or the Town in his or her individual capacity, and neither Town officials nor the directors of the Authority nor any officer, employee or agent thereof executing this Agreement or any related instrument shall be liable personally on this Agreement or such instrument or be subject to any personal liability or accountability by reason of the execution and delivery thereof. No director, officer, employee or agent of the Authority or the Town shall incur any personal liability with respect to any other action taken by him or her pursuant to this Agreement or the Industrial Development and Revenue Bond Act or any of the transactions contemplated hereby or thereby, provided he acts in good faith. Not a pledge of full faith and credit. Any obligation of the Town to pay, set aside, or otherwise appropriate funds for performance of this Agreement shall be construed to be subject to appropriation, and shall not be construed to be in derogation of Article VII § 10 of the Virginia Constitution. THE OBLIGATIONS OF THE AUTHORITY UNDER THIS AGREEMENT ARE NOT GENERAL OBLIGATIONS OF THE AUTHORITY BUT ARE LIMITED OBLIGATIONS PAYABLE SOLELY FROM THE REVENUES AND RECEIPTS DERIVED BY THE AUTHORITY FROM THE TOWN PURSUANT TO THIS AGREEMENT. THE OBLIGATIONS OF THE AUTHORITY AND THE TOWN HEREUNDER SHALL NOT BE DEEMED TO CONSTITUTE A DEBT OR A 10 PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE TOWN. Rule of construction for dates. If any action is required to be performed, or if any notice, consent or other communication is given, on a day that is a Saturday or Sunday or a legal holiday in the Commonwealth of Virginia, such performance shall be deemed to be required, and such notice, consent or other communication shall be deemed to be given, on the first business day following such Saturday, Sunday or legal holiday. Unless otherwise specified herein, all references in this Agreement to a “day” or “days” shall refer to calendar days and not business days. Choice of law. This Agreement shall be construed according to the laws of the Commonwealth of Virginia without regard to its principles of conflicts of laws. The Parties consent to exclusive venue and jurisdiction in any state or federal court of competent jurisdiction within the Commonwealth of Virginia. Attorneys’ fees. The Parties agree that, except as specifically provided in this Agreement, if any Party pursues legal action to enforce the terms of this Agreement, the American Rule shall apply and each Party shall bear its own attorneys’ fees and expert costs and no fee shifting shall occur. Drafter & Severability. This Agreement has been jointly drafted by the Parties, and is to be construed as jointly drafted and not be construed against any of the Parties as the drafter. This Agreement is severable, and if any provision is found to be invalid by any court of competent jurisdiction, the remainder shall survive. The section and paragraph headings in this Agreement are for convenience of reference only and do not modify or restrict any provisions hereof and shall not be used to construe any provisions of this Agreement. Covenant of Authority. All Parties warrant that the signatories below have full authority, and have undertaken such legal actions as may be necessary to ensure such authority, to bind the entities of which they are representatives to the full extent permitted by law. Company agrees that, during the term of this Agreement, it shall not allow its existence to lapse or its authorization to transact business in the Commonwealth of Virginia to be revoked or cancelled at any time. This Agreement may be executed by facsimile, electronic or original signature of the parties and in counterparts which, assuming no modification or alteration, shall constitute an original and when taken together, shall constitute one and the same instrument. Time of the Essence. Time is of the essence of all obligations set forth herein for which a time is stated. Waiver. The failure of any Party to this Agreement to insist upon strict compliance with any term herein shall not be construed to be a waiver of that requirement. 11 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies upon any person, other than the Parties hereto and, subject to the restrictions on assignment herein contained, their respective successors and assigns. Assignment of Agreement. Any obligation under this Agreement may be assigned to a third party with the prior written consent of all Parties and upon such terms as may be set forth in such consents. Any such assignment, however, shall not relieve the Company from any of its obligations under this Agreement. Town Attorney approval. This Agreement has been approved as to form by the Town Attorney of the Town of Vinton, Virginia. Any amendment, except as to the persons and addresses set out in Section VI, that is not approved as to form by the Town Attorney is void and of no force and effect. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be construed to be an original and production of all of which shall not be necessary to prove the contents of this Agreement. IN WITNESS WHEREOF, see the following signatures, of even date herewith: [SIGNATURES ON FOLLOWING PAGE] 12 TOWN OF VINTON, VIRGINIA: Barry W. Thompson Town Manager Approved as to legal form: Jeremy E. Carroll Town Attorney ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA Steve Musselwhite Chair of the Board of Directors VINYARD STATION, LLC By: Dale Wilkinson Its: Managing Member 1 Town of Vinton Vinyard Station Redevelopment Presentation Town Council Meeting 11/5/19 Department Name2 Department Name3 Department Name4 5 Property Detail Tax Assessment (2017): Showroom/Garage/Parts (1)$169,300 Former Cundiff Drug (2) $171,300 Vacant Lots (3-10) $140,900 $481,500 Anticipated Assessment Post Renovation:$1.85M Obstacles to Re-development •Owner Relationship •Owner Demand of $3M •Threat of Undesirable Development •Substantial Value Gap •Lack of Public Parking •Insufficient Pedestrian Connectivity 6 Vinyard Station •Vinton Motors Company -Closed in 2009 •1.4 acres –Three Existing Buildings •Two Commercial Appraisals-Russel & Assc. / ML&A •$1.33M to $1.85M •TOV Option for Purchase / Parking Lease / RFP –2017 •Development Proposal Accepted By Owner –Fall 2018 •Concept Plans -Tenant Recruitment –Winter 2019 •Anchor Tenant Secured –May 2019 •Owner Interior Demo –July 2019 •Lease and Financing Negotiations –August 2019 •Request for Town/County Involvement to Close –August 2019 •Anticipated Opening-Fall 2020 6 7 8 Exterior Patio Concept 9 10 •Metal Truss Arch Roof •Industrial Interior Design 11 12 Vacant-outside of scope Signed Lease Public Access Vacant-within scope Parking 13 14 Department Name15 16 17 18 Investment Details Showroom & Parts Purchase:$420,000 Vacant Land Purchase:$550,000 Acquisition Investment:$970,000 Showroom & Parts Improvements:$1,000,000 Vacant Land Improvements: $250,000 Improvement Investment:$1,250,000 Restaurant Investment:$500,000 10 Year Lease Two Additional Leasable Spaces Total Approx. 7,000+ sq ft $TBD Total Est. Project Investment (to date): $2,720,000 Public Private Partnership To Support Public Infrastructure TOV:$250,000 Cash $500,000 ($50k x 10) Total PPP Value: $750,000 Meals Tax 87,300$ ($1.5M) Personal Property 1,550$ ($155k) Sales Tax 1,296$ ($1.5M) Business License Tax 3,000$ ($1.5M) Real Estate Tax 1,295$ ($1.85M) Total 94,441$ Personal Property 5,425$ ($155k) Sales Tax 13,704$ ($1.5M) Real Estate Tax 20,165$ ($1.85M) Total 39,294$ Current Rke Co Real Estate (3,434)$ Rke Co Net Revenue 35,860$ Estimated Annual Revenues •5.5 Year Return on Investment •$690,000 Net New Revenue over 10 years (1.02% annual growth) 1 Meeting Date November 5, 2019 Department Administration Issue Consider adoption of an Ordinance to revise Water and Wastewater Fees and Charges Schedule by an increase for FY2020 and an increase of 6.0 percent in the Service Charge and 8.0 percent in the Volumetric Rate for FY2021, FY2022, and FY2023, pursuant to authority granted by Virginia Code §§ 15.2-2111, 15.2-2119 and 15.2-2122, according to the Vinton Town Code, Chapter 24, Utilities, Section 94-22 Fees and charges for water service and Section 94-74, Fees and charges for wastewater service and establishing an effective date. Summary In 2019, the town hired Davenport & Co. to complete a study evaluating our water and wastewater system. The study aimed to evaluate a five year plan for operations and capital investment, based on the performance from the previous study in 2013. The capital investment plan was developed through staff evaluation of priorities based on age, failure incidents, fire suppression supply, and economic development opportunities. Three critical needs for the system include: upgraded meters, an upgrade to a sewer pump station, and for a new well site to be brought online which would allow for an underperforming well site to be taken offline. The major projects funded as proposed are as follows: 1. Water Infrastructure - $4.5 Million 2. Sewer Infrastructure - $3.5 Million 3. Equipment Needs - $0.2 Million 4. Building/Services - $0.1 Million The town would fund a portion of these capital improvements through debt issuance and another portion of these improvements would be funded through cash available after operations. The current rate structure of the town allows for the first 3,000 gallons to be exempt for volumetric charge on bi-monthly bills. The town staff and consultants have proposed reducing the monthly service charge rate and increasing the volumetric charge to charge for all consumption used by the customer. Town Council Agenda Summary 2 Council conducted a Public Hearing on the matter at their October 15, 2019 meeting and there were no public comments. Attachments Ordinance Recommendations Motion to adopt Ordinance 1 ORDINANCE NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL, HELD ON TUESDAY, NOVEMBER 5, 2019, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. AN ORDINANCE to revise Water and Wastewater Fees and Charges Schedule by an increase for FY2020 and an increase of 6.0 percent in the Service Charge and 8.0 percent in the Volumetric Rate for FY2021, FY2022, and FY2023, pursuant to authority granted by Virginia Code §§ 15.2-2111, 15.2-2119 and 15.2-2122, according to the Vinton Town Code, Chapter 24, Utilities, Section 94-22 Fees and charges for water service and Section 94-74, Fees and charges for wastewater service and establishing an effective date. WHEREAS, establishing rates and charges for service is the responsibility of Town Council; and WHEREAS, the Utility Fund is an enterprise fund and expected to generate revenues to cover all associated costs of providing public water and wastewater services; and WHEREAS, the Town proposes capital equipment purchases and other capital improvements for the Town; and WHEREAS, the Town Council supports the principle that utility fund costs should be shared in a fair and equitable manner amongst all customer classes; and WHEREAS, a public hearing was advertised and held on October 15, 2019, and all public comments have been considered by Council; and WHEREAS, the recommended, water and wastewater rate increases for residential, commercial, institutional, and industrial customers will result in fair and equitable water and wastewater rates and charges amongst customer classes. NOW, THEREFORE, BE IT ORDAINED by the Vinton Town Council that the increased residential/commercial/institutional/industrial water and wastewater rates and charges shown on the attached Rates & Charges Schedule for Water and Wastewater Service to become effective with the January 2020 billing for any water and wastewater billed on or after those dates and effective with the July 2020 billing, all bi-monthly customers will move to monthly billing. Said Schedules are hereby incorporated by reference, enacted, approved and established. 2 This Ordinance adopted on motion made by ______________________, seconded by ______________, with the following votes recorded: AYES: NAYS: APPROVED: ____________________________________ Bradley E. Grose, Mayor ATTEST: _____________________________________ Susan N. Johnson, CMC, Town Clerk Current Proposed Proposed Proposed Proposed FY 2020 (July - Dec)FY2020 (Jan-June)FY2021 FY2022 FY2023 Minimum Charge for Residential Service First 1,500 Gallons or Less Thru 5/8" Meter 10.27$ 5.50$ 5.94$ 6.42$ 6.93$ Residential Volumetric Consumption Rate First 1,500 Gallons or Less (Per 1,000 Gallons)-$ 4.02$ 4.26$ 4.51$ 4.78$ Next 15,000 Gallons or Less (Per 1,000 Gallons)3.79$ 4.02$ 4.26$ 4.51$ 4.78$ All Over 16,500 Gallons (Per 1,000 Gallons)4.75$ 5.04$ 5.34$ 5.66$ 6.00$ Current Proposed Proposed Proposed Proposed FY 2020 (July - Dec)FY2020 (Jan-June)FY2021 FY2022 FY2023 Minimum Charge for Commercial/Institutional/Industrial Service First 1,500 Gallons or Less Thru 5/8" Meter 10.27$ 5.50$ 5.94$ 6.42$ 6.93$ First 1,500 Gallons or Less Thru 3/4" Meter 11.21$ 6.00$ 6.48$ 7.00$ 7.56$ First 1,500 Gallons or Less Thru 1" Meter 11.97$ 6.41$ 6.92$ 7.48$ 8.07$ First 1,500 Gallons or Less Thru 1-1/4" Meter 12.45$ 6.66$ 7.19$ 7.77$ 8.39$ First 1,500 Gallons or Less Thru 1-1/2" Meter 13.46$ 7.20$ 7.78$ 8.40$ 9.07$ First 1,500 Gallons or Less Thru 2" Meter 17.22$ 9.22$ 9.96$ 10.75$ 11.61$ First 1,500 Gallons or Less Thru 3" Meter 23.01$ 12.32$ 13.31$ 14.37$ 15.52$ First 1,500 Gallons or Less Thru 4" Meter 30.22$ 16.18$ 17.47$ 18.87$ 20.38$ First 1,500 Gallons or Less Thru 6" Meter 37.79$ 20.23$ 21.85$ 23.60$ 25.48$ First 1,500 Gallons or Less Thru 8" Meter 42.29$ 22.64$ 24.45$ 26.41$ 28.52$ Commercial Volumetric Consumption Rate First 1,500 Gallons or Less (Per 1,000 Gallons)-$ 5.13$ 5.44$ 5.76$ 6.11$ All Over 1,500 Gallons (Per 1,000 Gallons)4.84$ 5.13$ 5.44$ 5.76$ 6.11$ Projected Monthly Residential Water Rates & Charges Projected Monthly Commercial Water Rates & Charges Current Proposed Proposed Proposed Proposed FY 2020 (July - Dec)FY2020 (Jan-June)FY2021 FY2022 FY2023 Minimum Charge for Residential Service - Metered First 1,500 Gallons or Less 15.07$ 9.50$ 10.26$ 11.08$ 11.97$ Residential Volumetric Disposal Rate First 1,500 Gallons or Less (Per 1,000 Gallons)-$ 4.69$ 4.97$ 5.26$ 5.58$ All Over 1,500 Gallons (Per 1,000 Gallons)4.42$ 4.69$ 4.97$ 5.26$ 5.58$ Residential Unmetered Service 31.41$ 33.29$ 35.29$ 37.41$ 39.65$ Current Proposed Proposed Proposed Proposed FY 2020 (July - Dec)FY2020 (Jan-June)FY2021 FY2022 FY2023 Minimum Charge for Commercial Service - Metered First 1,500 Gallons or Less 15.07$ 9.50$ 10.26$ 11.08$ 11.97$ Commercial Volumetric Disposal Rate First 1,500 Gallons or Less (Per 1,000 Gallons)-$ 4.69$ 4.97$ 5.26$ 5.58$ Projected Monthly Residential Wastewater Rates & Charges Projected Monthly Commercial Wastewater Rates & Charges Meeting Date November 5, 2019 Department Planning and Zoning Issue Consider adoption of a Resolution appropriating funds in the amount of $1,446,282 for the Walnut Avenue Bicycle and Pedestrian Accommodations Project – 5th Street to Town West Corporate Limit. Summary The estimated total cost for the Walnut Avenue Bike/Ped Accommodations Project is $1,446,282.00, for which funding has been secured through the Roanoke Valley Transportation Policy Organization’s (RVTPO) Regional Surface Transportation Program (RSTP)/Set-Aside Transportation Block Grant (STBG) Program. The Project will be administered by a full-time Town staff member as required under the Virginia Department of Transportation (VDOT) Locally Administered Program (LAP). The Project will be funded 100% by the grant, except the staff hours used in administering the grant. The Project is scheduled to be completed by November 2022. This is a reimbursable grant program; therefore, Town Council will have to authorize the monies be spent for the engineering design services and construction of the Walnut Avenue Bicycle and Pedestrian Accommodations Project – 5th Street to Town West Corporate Limit. On October 15, 2019, Council adopted a Resolution awarding an engineering services contract and authorizing the Town Manager to execute the contract with Mattern & Craig for the Walnut Avenue Bicycle and Pedestrian Accommodations Project. Attachment Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, NOVEMBER 5, 2019, AT 7:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, on October 15, 2019, Council adopted a Resolution awarding an engineering services contract and authorizing the Town Manager to execute the contract for the Walnut Avenue Bicycle and Pedestrian Accommodations Project – 5th Street to Town West Corporate Limit; and WHEREAS, this is a reimbursable grant program; therefore, Town Council will have to authorize the monies be appropriated from the general revenue fund to the general expense fund for the engineering design services and construction; and WHEREAS, the estimated total cost for the Walnut Avenue Bike/Ped Accommodations Project is $1,446,282.00, for which funding has been secured through the Roanoke Valley Transportation Policy Organization’s (RVTPO) Regional Surface Transportation Program (RSTP)/Set-Aside Transportation Block Grant (STBG) Program. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby approve the following transaction: BUDGET ENTRY GENERAL LEDGER: 250.25100 Appropriations $1,446,282.00 250.25000 Estimated Revenue $1,446,282.00 FROM REVENUE: 250.1070.001 Recoveries and Rebates $1,446,282.00 TO EXPENDITURE: 250.1070.302 Contractual Services $ 250,000.00 250.1070.553 Materials and Supplies $1,196,282.00 This Resolution adopted on motion made by Council Member______ , seconded by Council Member ___________________, with the following votes recorded: AYES: NAYS: APPROVED: Bradley E. Grose, Mayor ATTEST: ______________________________________ Susan N. Johnson, CMC, Town Clerk Meeting Date November 5, 2019 Department Finance/Treasurer Issue Finance Committee Summary The Finance Committee met on October 21, 2019 and the following items were discussed at the meeting: • Budget Appropriation, Walnut Avenue Improvement • Budget Appropriation, Chevrolet Pickup • August Financial Report Attachments August 2019 Financial Report Summary Recommendations Motion to approve August 2019 Financial Report Town Council Agenda Summary Financial Report Summary August 31, 2019 Adopted Revised YTD MTD YTD Remaining % Budget Budget Posted Posted Balance YTD Revenues 7,527,870 747,395 510,897 665,422 (81,973) 89% Expenditures 7,527,870 1,589,143 586,777 1,086,156 (502,987) 68% Revenues over/(under) Expenditures (841,747) (75,880) (420,734) Revenues 4,000 200,666 - - (200,666) 0% Expenditures 4,000 200,666 9,937 19,834 (180,832) 10% Revenues over/(under) Expenditures - (9,937) (19,834) Revenues 3,722,500 582,353 542,216 661,582 79,229 114% Expenditures 3,722,500 784,004 400,787 547,511 (236,493) 70% Revenues over/(under) Expenditures (201,651) 141,428 114,072 Revenues 500,012 - - - - 0% Expenditures 500,012 83,302 14,008 14,008 (69,294) 17% Revenues over/(under) Expenditures (83,302) (14,008) (14,008) Revenues 460,210 76,671 34,147 72,498 (4,173) 95% Expenditures 460,210 84,220 35,787 50,676 (33,544) 60% Revenues over/(under) Expenditures (7,549) (1,640) 21,821 Revenues 12,214,592 1,607,086 1,087,260 1,399,503 (207,583) 87% Expenditures 12,214,592 2,741,335 1,047,297 1,718,186 (1,023,149) 63% Revenues over/(under) Expenditures (1,134,249) 39,963 (318,683)