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HomeMy WebLinkAbout6/4/2013 - Regular1 Vinton Town Council Regular Meeting Council Chambers 311 South Pollard Street Tuesday, June 4, 2013 AGENDA Consideration of: A. 6:00 p.m. - WORK SESSION 1. Petition of Karen Sloan for a Special Use Permit (SUP) to operate a hair salon at 1031 Almond Drive, Tax Map Number 61.17-03-34, zoned R-1 Residential District. 2. Briefing on General Obligation Bonds financing options. 3. Review of final changes to FY2013-2014 budget. 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. CONSENT AGENDA 1. Consider approval of minutes for the regular Council meeting of May 7, 2013. 2. Consider approval of minutes for the regular Council meeting of May 21, 2013. F. AWARDS, RECOGNITIONS, PRESENTATIONS G. CITIZENS’ COMMENTS AND PETITIONS - This section is reserved for comments and questions for issues not listed on the agenda. H. TOWN ATTORNEY Bradley E. Grose, Mayor William “Wes” Nance, Vice Mayor I. Douglas Adams, Jr., Council Member Robert R. Altice, Council Member Matthew S. Hare, Council Member Vinton Municipal Building 311 South Pollard Street Vinton, VA 24179 (540) 983-0607 2 I. TOWN MANAGER ITEMS REQUIRING ACTION 1. Consider adoption of an Ordinance revising the Water and Wastewater Fees and Charges Schedule by an increase of 8.7 percent, 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. 2. Consider adoption of an Ordinance increasing an excise tax on the sale of cigarettes from $0.20 to $0.35 on each package containing 25 or fewer cigarettes. 3. Consider adoption of an Ordinance approving the Town of Vinton, Virginia budget for the fiscal year beginning July 1, 2013 and ending June 30, 2014. 4. Consider adoption of a Resolution authorizing the Town Manager to execute an extension of services to our existing agreement for Business District Revitalization Planning Project (dated January 15, 2010) with Hill Studio to provide additional services for implementation of the Downtown Physical Improvement Plan through the awarded Community Development Block Grant. J. MAYOR K. COUNCIL 1. Financial Report for April 2013 L. CLOSED MEETING 1. Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 (A) of the 1950 Code of Virginia, as amended, for discussion regarding appointments to boards and commissions as authorized by subsection 1. M. RECONVENE AND ADOPT CERTIFICATION OF CLOSED MEETING N. APPOINTMENTS TO BOARDS/COMMISSIONS O. 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 COMMITTEE/COUNCIL MEETINGS: • June 18, 2013 – 6:30 p.m. - Council in the Neighborhood Meeting – Vinton Masonic Lodge - 1017 E. Washington Avenue – Regular Meeting to follow Meeting Date June 4, 2013 Department Planning & Zoning Issue Briefing on petition of Karen Sloan for a Special Use Permit (SUP) to operate a hair salon at 1031 Almond Drive, Tax Map Number 61.17-03-34, zoned R-1 Residential District. Summary Ms. Sloan inquired in our office about being able to operate a hair salon from her residence. A hair salon is considered to be a personal service business. Per Article IV, District Regulations, Division 2, R-1 Residential District, in order to operate a personal service business in this district, a SUP would have to be applied for and granted. Attachments Staff report and supporting documents Recommendations No action required Town Council Agenda Summary 1 Meeting Date June 4, 2013 Department Administration Issue Briefing on General Obligation Bonds financing options. Summary Courtney Rogers of Davenport & Company will be present at the meeting to review the financial options and answer any questions that Council might have. Attachments Memo from Davenport & Company Recommendations Action to be taken at the June 18th meeting Town Council Agenda Summary 1 MEMORANDUM To: Chris Lawrence, Town Manager Barry Thompson, Director of Finance From: Courtney Rogers, Senior Vice President Doug Gebhardt, Analyst Davenport & Company LLC Date: Friday, May 31, 2013 Subject: General Obligation New Money and Refunding Bond, Series 2013 Town of Vinton, Virginia In our capacity as Financial Advisor to the Town of Vinton, Virginia (the “Town”), Davenport & Company LLC (“Davenport) has performed an analysis on various financing options for the Town’s General Obligation New Money and Refunding Bond, Series 2013. The Town wishes to issue approximately $2,000,000 of New Money as well as to refinance the Town’s existing VML/VACO Series 2004B and VRA Series 2004B Bonds and potentially its VML/VACO Series 2006C General Obligation Bonds and VRA Series 2006A Revenue Bonds. On May 3, 2013, Davenport along with Town Staff, submitted an application to the Virginia Resources Authority (“VRA”) for the potential financing mentioned above. The Town, Spilman Thomas and Battle (Bond Counsel), and Davenport held a due diligence conference call with VRA on May 14 as part VRA’s credit review process. Additionally, on May 7, 2013 Davenport distributed a Request for Proposal for a direct loan to 31 local, regional and national banking institutions as well as to VML/VaCO Finance. The Request for Proposal asked for four separate rate quotes. The first rate requested was a 30 year rate on the new money principal amortization where $181,000 would be paid over a 5-year period with the balance over 30-years. As mentioned during our presentations to Town Council we were not sure if a rate would be given over this length of time. Consequently, a 20-year rate was requested as well. With the real possibility that the 2006 Bonds might not make financial sense to be refinanced, Davenport also requested proposals on two refunding rates, one for the 2004 Bonds only (12 years to final maturity) and the other for the 2004 & 2006 Bonds combined (14 years to final maturity). On May 21, 2013 Davenport received four proposals in response to the Request for Proposal. The remainder of this memorandum sets forth the results from the Request for Proposal and Davenport’s recommendation. Public Finance Department 804-697-2900 Post Office Box 85678 Richmond, Virginia 23285-5678 One James Center 901 East Cary Street Richmond, Virginia 23219-4037 2 New Money: Of the four proposals received from the various banking institutions, none were willing to provide the Town with a 30-year rate. However, three provided fixed rates for 20 years. Capital One Public Funding (“Capital One”) offered the lowest 20-year rate at 2.85% fixed over the loan’s life. The Town’s debt service would be approximately $160,000 annually in the first five Fiscal Years and approximately $120,000 annually thereafter. When compared to a 30-year VRA loan using market rates as of May 21, 2013, the cash flow impact on the Town of the shorter 20-year bank amortization would be approximately $20,000 more annually. More simply put, the Town would have $20,000 of additional debt service in the first 20 years should the Town choose Capital One versus a 30-year amortization. However, since the Virginia Resources Authority’s next pool bond sale is not until August of 2013, the Town becomes susceptible to market volatility. While this could turn positive since receiving the bank bids interest rates have increased roughly 20 basis points or 1/5 of 1%. By accepting the bank bids the Town locks in the interest rates. Davenport is recommending moving forward with Capital One. However we need to confirm in writing that they will hold the bid until June 27, 2013, our projected closing date. Refinancing: The first thing Davenport analyzed regarding the refundings was the viability of pursuing the refunding the Series 2006 bonds. At this time, Davenport does not recommend refinancing either of the 2006 issues due to the high amount of negative arbitrage compared to the amount of net present value savings. Therefore, the 2006 bonds have been removed from subsequent analysis. The refinancing rates from the Request for Proposals were extremely close. BB&T offered the lowest rate of 2.04% but had $3,500 of closing costs. Therefore Carter Bank’s rate of 2.05% with no bank closing costs provided a lower interest cost. If the refunding was issued through VRA as of May 21, 2013 it would provided a more attractive refunding than through the direct bank loans. However, the market would only have to move away from the Town 8 basis points (0.08%) to result in the same savings as through Carter Bank. As of the date of this memo the municipal market has given up 21 basis points in the 2022 to 2026 range and 16 basis points through the remainder of the curve. After this shift in the public market, the refinancing becomes significantly less attractive, by roughly $25,000 of net budgetary savings, in comparison to the Direct Bank loan through Carter Bank. Given this recent volatility, Davenport recommends that the Town take the “bird in the hand” and refinance the Series 2004 bonds with Carter Bank. This would result in the Town saving approximately $147,000 in net budgetary dollars and $138,000 in net present value dollars. Additionally, the Town would have about 7% savings on the 2004 VML/VaCO Bond and 6% on the 2004 VRA Bond, almost double the industry standard of 3% savings. Next Steps: We look forward to discussing this in more detail with the Town on Tuesday, June 4th in anticipation of Town Council’s final approval on Tuesday, June 18th. We are looking to close the issue on June 27th. BB&T Capital One Carter Bank SunTrust Series 2013 Series 2013 Series 2013 Series 2013 FINANCING Series 2013 Series 2013 Series 2013 Series 2013 $2,015,000 - New Money $2,015,000 - New Money $2,015,000 - New Money AMOUNT $2,240,000 - 2004 Only $6,000,000 $2,240,000 - 2004 Only $2,240,000 - 2004 Only $3,740,000 - 2004 & 2006 $3,740,000 - 2004 & 2006 $3,740,000 - 2004 & 2006 TERM (NEW MONEY)November 1, 2032 November 1, 2032 November 1, 2032 November 1, 2032 TERM (REFUNDING)November 1, 2024 or 2026 November 1, 2024 or 2026 November 1, 2024 or 2026 November 1, 2024 or 2026 PRINCIPAL PAYMENT Annual Annual Annual Annual INTEREST PAYMENT Semi-Annual Semi-Annual Semi-Annual Semi-Annual INTEREST RATE 3.38% - 20 Year 2.85% - 20 Year 3.00% - 20 Year 2.24% - 20 Year Amortization* (NEW MONEY)N/A - 30 Year N/A - 30 Year N/A - 30 Year N/A - 30 Year INTEREST RATE 2.04% - 2004 Bonds Only 2.45% - 2004 Bonds Only 2.05% - 2004 Bonds Only 2.09% - 2004 Bonds Only (REFUNDING)2.33% - 2004 & 2006 Bonds 2.45% - 2004 & 2006 Bonds 2.15% - 2004 & 2006 Bonds 2.19% - 2004 & 2006 Bonds INTEREST RATE RESET None None None *10 Year Put Option BANK CLOSING COSTS $3,500 - New Money None None $2,015 - New Money $3,500 - 2004 Only $2,240 - 2004 Only $3,500 - 2004 & 2006 Only $2,240 - 2004 & 2006 Only ACCEPT BY N/A June 7, 2013 N/A N/A CALL DATE 15 Days Notice - New Money 8 Years - New Money Anytime - New Money Anytime - New Money 15 Days Notice - Refunding 7 Years - Refunding Anytime - Refunding Anytime - Refunding PREPAYMENT PENALTY None None None None NOTES It shall be the responsibility of the Town to retain and compensate counsel to appropriately structure the general obligation bond in accordance with both Federal and Virginia Commonwealth Statutes. BB&T reserves the right to review the bond, which must be mutually accepted by BB&T and the Town. Capital One reserves the right to have this transaction rated at Capital One's sole cost at any time during the term of the Bond. The Town agrees to cooperate with COPF and the rating agency in providing any requested financial or non-financial information that may be material to obtaining the rating. All documentation associated with this loan shall be in a form and content acceptable to the bank. The bank may require documents, instruments, opinions, approvals and assurances customary in this type of financing or as the bank may reasonably request. The interest rates quoted herein takes into consideration a marginal maximum federal corporate tax rate of 35%. In the event of a decrease in the marginal maximum corporate tax rate, the Lender shall have the right to adjust the interest rate upwards in order to maintain the same after tax yield or the Lender. In no event will the rate exceed 2.46% for Loan A, 2.30% for Loan B, or 2.41% for Loan C. All proposals are subject to the negotiation of mutually satisfactory documentation and final terms between the Town and the Bank. Prepared by Davenport & Company LLC Friday, May 31, 2013 2013 Tax-Exempt, Bank-Qualified New Money & Refunding Bonds Town of Vinton, Virginia Summary of Bids Received Year Principal*Interest*Total* 6/30/2014 $111,264 $48,617 $159,881 6/30/2015 106,834 53,048 159,881 6/30/2016 109,923 49,959 159,881 6/30/2017 113,101 46,781 159,881 6/30/2018 116,371 43,511 159,881 6/30/2019 79,588 40,718 120,307 6/30/2020 81,889 38,417 120,307 6/30/2021 84,257 36,050 120,307 6/30/2022 86,693 33,614 120,307 6/30/2023 89,200 31,107 120,307 6/30/2024 91,778 28,528 120,307 6/30/2025 94,432 25,875 120,307 6/30/2026 97,162 23,145 120,307 6/30/2027 99,971 20,335 120,307 6/30/2028 102,862 17,445 120,307 6/30/2029 105,836 14,471 120,307 6/30/2030 108,896 11,411 120,307 6/30/2031 112,044 8,263 120,307 6/30/2032 115,283 5,023 120,307 6/30/2033 118,616 1,690 120,307 Total $2,026,000 $578,008 $2,604,008 *Preliminary, subject to change. Costs of Issuance to be confirmed. 20 Year Loan New Money Rate of 2.85% Town of Vinton, Virginia Captial One Net Budgetary Year Principal Interest Total Principal*Interest*Total*Savings* 6/30/2014 $0 $85,285 $85,285 $33,505 $39,502 $73,008 $12,277 6/30/2015 0 85,285 85,285 28,154 44,853 73,008 12,277 6/30/2016 170,000 81,798 251,798 196,974 42,546 239,520 12,277 6/30/2017 175,000 74,810 249,810 199,046 38,487 237,533 12,277 6/30/2018 185,000 67,610 252,610 205,998 34,335 240,333 12,277 6/30/2019 190,000 60,110 250,110 207,738 30,094 237,833 12,277 6/30/2020 205,000 52,210 257,210 219,215 25,718 244,933 12,277 6/30/2021 210,000 43,835 253,835 220,345 21,212 241,558 12,277 6/30/2022 220,000 35,023 255,023 226,109 16,636 242,745 12,277 6/30/2023 225,000 25,744 250,744 226,470 11,997 238,467 12,277 6/30/2024 240,000 15,861 255,861 236,330 7,254 243,584 12,277 6/30/2025 245,000 5,359 250,359 235,666 2,416 238,082 12,277 Total $2,065,000 $632,930 $2,697,930 $2,235,551 $315,050 $2,550,601 $147,329 *Preliminary, subject to change. Costs of issuance to be confirmed and escrow securities to be bid out. Net Present Value Savings of $138,245.99 or 6.69%. 2004 VML/VaCO 12 Year Loan & 2004 VRA Bonds Refunding Rate of 2.05% Town of Vinton, Virginia Town of Vinton, Virginia Existing Debt Carter Bank 1 Meeting Date June 4, 2013 Department Administration Issue Review of final changes to FY2013-2014 budget. Summary The FY2013-2014 annual budget is the culmination of months’ worth of staff work developing and managing our services and revenues to provide the expected and needed services for the community. 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. The budget sets forth operating expenditures and capital expenditures. Over the past five years, through the economic downturn, our budget has been appropriately reduced without any major impacts to the delivery of service and minimal service elimination. However, one of the major reductions has been to our capital investment funding. This reduction can be accommodated in the short term by delaying purchases and equipment replacement. In the long term, we have a back log and pent up demand for capital investment and replacement of equipment. These needs are outlined in detail in the capital improvement plan within the budget. To help begin to address these capital needs, the budget includes a 15-cent increase in cigarette tax. This is expected to generate approximately $159,000 in additional revenue. This new revenue is recommended to fund equipment replacement needs and capital investment in bridges, buildings, technology, equipment, and vehicles. At the public hearing held on May 21st, Vice Mayor Nance and Council Member Hare expressed their concern with raising the cigarette tax. They requested information on how the budget could Town Council Agenda Summary 2 be balanced without the additional new revenue. Town staff has met over the past two weeks and completed its evaluation. Attached is a summary that shows a balanced budget without a cigarette tax increase. To accomplish this several changes are required to the budget. 1) Remove increased cigarette tax ($159,375) 2) Reprioritize the CIP and reduce the number of projects funded. (see attachment) a. Includes removal of the following projects i. Fire House Painting - $29,000 ii. Fire House Flooring - $ 5,800 iii. Crew Hall Painting - $ 2,000 iv. Cityworks Asset Mgt - $20,000 v. Total reduction of CIP - $56,800 3) Use of year end surplus to balance budget ($37,800) These changes will result in a balanced budget through reduction in CIP projects and use of year end surplus. Additionally, in regards to investment in the CIP, no new revenue source is identified for years 2-5. Both the original recommended budget and the alternative proposal include the following three items: 1) Cost of Living increase for all town employees (not including Town Council) of 1.5% 2) Fully funded satellite dumpster location at 3rd Street 3) Additional funding for computer replacement $10,000 Attachments Summary review of budget changes CIP Summary with changes Recommendations Action to be taken under Town Manager’s Section Alternative Proposal for Budget FY2014 General Fund Computer Replacement 10,000$ FY2014 CIP - Alternative Proposal Walnut Ave 19,000$ Technology Server - Laserfiche 12,000$ Asphalt Roller 21,000$ PW - Dump Truck (lease 5-year)25,880$ Speed Trailer Match Grant 1,900$ Pool interior paint resurface 7,650$ Street Improvements 15,000$ Total CIP Recommended 87,430$ Removed from CIP Fire House Painting 29,000$ Fire House Flooring 5,800$ Crew Hall Paint 2,000$ Cityworks Asset Mgt Software 20,000$ Total Removed from CIP 56,800$ Researve (AEP) Greenway Grant Match 35,000$ Utility Fund Generator 100,000$ approx. 17 computers required to be replaced by April 2014 due to non-servicable operating system Meeting Date June 4, 2013 Department Town Clerk Issue Consider approval of minutes for the regular Council meeting of May 7, 2013. Consider approval of minutes for the regular Council meeting of May 21, 2013. Summary None Attachments May 7, 2013 minutes May 21, 2013 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, MAY 7, 2013, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. MEMBERS PRESENT: Bradley E. Grose, Mayor William W. Nance, Vice Mayor I. Douglas Adams, Jr. Matthew S. Hare MEMBERS ABSENT: Robert R. Altice Susan N. Johnson, Town Clerk STAFF PRESENT: Christopher S. Lawrence, Town Manager Elizabeth Dillon, Town Attorney Ryan Spitzer, Assistant to the Town Manager Ben Cook, Police Chief Gary Woodson, Public Works Director Barry Thompson, Finance Director/Treasurer Karla Turman, Assoc. Planner/Code Enforcement Ofcr. Joey Hiner, Assistant Public Works Director The Mayor called the work session to order at 6:00 p.m. The Town Manager introduced Brandon Gann, our Summer Intern from Virginia Tech’s Public Administration Program. Two of his primary projects will be an Accounting Policy Manual and an update to our Purchasing Procurement Policy. The work session related to a briefing on a request for a fifty (50) foot wide by approximately one hundred and fifty (150) foot long undeveloped right-of-way, known as Daleview Drive, Map of Section No. 4, Bali Hai, Plat Book 6, Page 30, to be closed, vacated, and deeded to the adjoining property owners. Anita McMillan, Planning & Zoning Director, commented that some time ago Mr. Overbay contacted her department regarding a 25 acre parcel he owns in the City of Roanoke. He indicated that earlier he had contacted the Town about having the property readjusted to the Town, but the City did not want that to happen. He also contacted Public Works about the possibility of having the Town supply water and sewer services to the property. An amount of time lapsed and then in September he contacted us again and indicated he would like to sell the property, but wanted to subdivide into lots. He would like to be able to use the undeveloped Daleview Drive for access to the property. Again, he asked if the Town could provide water services. Joey Hiner researched the water issue and indicated the Town could provide this service. 2 Currently there are two driveways located in the right-of- way. By a letter dated October 8, 2012 to Mr. Overbay, he was instructed to contact the two property owners of his intention. When we first met with him, he indicated that one lot would be using this undeveloped right-of-way and the other lot would come from the other side. However, when we received the plat in January, the lot is divided in the middle and this right-of-way will serve both lots. He indicated he had been in contact with the two owners. We were concerned about what would happen to these two driveways. Also, since the property is in the City, which jurisdiction would provide Fire/EMS services, police protection, solid waste disposal, and school bus service. When we met with Mr. Overbay again in March, we asked him if he would consider developing the undeveloped Daleview Drive right-of-way to as least a hammerhead drive-way. He stated that he did want to do that, but wanted to petition to vacate the right-of-way. Once vacated, 25 feet x 150 feet will be deeded to 647 Olney and the other 25 feet x 150 feet to 701 Olney. In turn the property owners will each deed 10 feet x 150 feet (total of 20 feet x 150 feet) to Mr. Overbay to have access to the two lots. Prior to the Planning Commission work session on April 11th, a statement was received signed by both the Quams and the Slighs agreeing to the undeveloped right-of-way being vacated and deeding the portion back to Mr. Overbay. However, the statement was not notarized and was not signed in front of staff. It also contained incorrect information. Mr. McMurry, the surveyor, indicated that they would be present at the Planning Commission Public Hearing and could sign a new statement. Mr. McMurry attended the Public Hearing on Mr. Overbay’s behalf. He stated they would like to table the request because they were not able to get the property owners to sign a new statement. The two property owners and Mr. Bennett, a resident of Olney Road were also present. We held the Public Hearing and Mr. Bennett spoke on behalf of Mr. Sligh saying that they felt they were misled into signing the statement and were concerned about what would happen to their driveways. Mr. Quam came to the office prior to the meeting and expressed concern that his concrete driveway would be damaged especially if a water line is to be run to serve the two lots. The Planning Commission asked Mr. Quam why he put his concrete driveway in the undeveloped area and he indicated that the developer told him he could. Mr. Sligh said the driveway was already there when he purchased the property. 3 Mr. McMurry then asked if he submitted a revised plat, would the Town approve it. He did submit a revised plat, but it is completely different and there is no confirmation or anything to show us how these two lots will be accessed. There are too many uncertainties. We did tell Mr. Quam and Mr. Sligh that they can request that it be vacated and each be deeded a 25 feet x 150 feet portion. They indicated they wanted to leave it as is. In summary, the Town Manager commented that the matter is not ready to come before Council for their consideration. All of the parties need to be in complete agreement. He recommended that that Council not hold their Public Hearing on May 21st. The Mayor agreed to postpone the Public Hearing since the Petitioner had asked for continuation at the Planning Commission Public Hearing. Vice Mayor Nance asked if the application covers the advertisement costs. Ms. McMillan responded that in the past we have not charged for advertisement costs, only the survey costs. However, it is in our current policy and under the circumstances, we are going to send Mr. Overbay an invoice for the advertising costs. The work session was adjourned at 6:30 p.m. A reception for Shirley Patsel was held in the Municipal Building Lobby. The Mayor called the regular meeting to order at 7:00 p.m. The Acting Town Clerk called the roll with Council Member Adams, Council Member Hare, Vice Mayor Nance, and Mayor Grose present. Council Member Altice was absent. After a Moment of Silence, Council Member Adams led the Pledge of Allegiance to the U.S. Flag. Roll Call Vice Mayor Nance made a motion to approve the April 2, 2013 and April 16, 2013 minutes; the motion was seconded by Mr. Hare and carried by the following vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0) – None; Absent (1) - Altice. Approved minutes of April 2, 2013 and April 16, 2013 The next item on the agenda was a presentation of the 2012 Super Star Award by the Virginia Department of Emergency Management (VEDM) to Shirley Patsel. Chief Cook introduced Linda Rueben with VDEM. Ms. Reuben commented that in their Preparedness Division they honor volunteers who assist with law enforcement, fire programs and citizens in general. She explained the recognition program and that Virginia Dominion Power is a partner. Gail Hundley representing Valley Bank and Virginia First was also present. 4 Ms. Ruben then read the statement from Chief Cook nominating Ms. Patsel for the award and then presented her with a certificate. Ms. Hundley presented an IOU from Virginia First for a leather bound notebook and gave her an umbrella from Valley Bank. She then explained the partnership the two entities have with VDEM. The Mayor then expressed his appreciation on behalf of Council. The next item was a presentation by the Roanoke Valley Preservation Foundation in celebration of National Historic Preservation Month. Mr. George Kegley, a Board member of the Roanoke Valley Preservation Foundation, made brief comments. Each year May is recognized as Preservation Month and this year is the 25th anniversary. The theme this year is “See! Save! Celebrate!” and he invited Council to join in a celebration on Thursday, May 23rd at the History Museum of Western Virginia. Mr. Kegley then made further comments on a list of statistics relating to preservation. The next item was a Proclamation declaring National Drinking Water Week for May 5 to May 11, 2013. Vice Mayor Nance read the Proclamation. The next item was a Proclamation declaring National Police Week for May 12 to May 18, 2013. Mr. Hare read the Proclamation. The Town Manager introduced David Flagler, the new Roanoke Center for Animal Control and Protection Executive Director and also a new resident of the Town. He introduced again Brandon Gann our summer intern. He also introduced Amy Peterson of the Leadership Program with the Roanoke Regional Chamber of Commerce. The next item on the agenda was a Public Hearing to receive public comments regarding a proposed Ordinance to amend Appendix B, Zoning, Article IV, District Regulations, Division 8, M-1 Limited Industrial District, of the Vinton Town Code. Karla Turman, Associate Planner/Code Enforcement Officer made brief comments that this Code amendment stems from a Special Use Permit for the impound lots. Council was briefed at their March 5th meeting on the need to amend the Town Code to be consistent with the Code of Virginia. The State Code requires a period of longer than 30 days and our current Code states no more than 30 days. Upon advice from our Town Attorney, the Planning Commission is recommending a period of no more than 90 days for a vehicle to be stored. The Mayor opened the Public Hearing at 7:25 p.m. 5 Hearing no comments the Public Hearing was closed at 7:26 p.m. Hearing no comments from Council, Mr. Adams made a motion to adopt the Ordinance as presented; the motion was seconded by Mr. Hare and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. Public Hearing opened and closed Adopted Ordinance No. 936 to amend Appendix B, Zoning, Article IV, District Regulations, Division 8, M-1 Limited Industrial District, of the Vinton Town Code The next two items on the agenda were to consider adoption of Resolutions authorizing the Town Manager to execute Quitclaim Deeds between VDOT and the Town conveying all of the right of way and permanent easements on Project U000-149-102, RW201 (Gus W. Nicks Boulevard) and on Project U000-149-105, RW201 (Washington Avenue) to the Town. The Town Manager commented that the Town partnered with VDOT in the mid- 80’s to expand the two-lane Washington and Gus Nicks Boulevard to a four-lane road. These rights of way and easements were never officially deeded back to the Town. The subject Quitclaim Deeds need to be executed and recorded to finalize the matter. Vice Mayor Nance made a motion to adopt the Resolution relating to Gus W. Nicks Boulevard; the motion was seconded by Mr. Hare and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. Mr. Adams made a motion to adopt the Resolution relating to Washington Avenue; the motion was seconded by Mr. Hare and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. Adopted Resolution No. 2014 authorizing the Town Manager to execute a Quitclaim Deed between VDOT and the Town conveying all of the right of way and permanent easements on Project U000-149- 102, RW201 (Gus W. Nicks Boulevard) to the Town of Vinton. Adopted Resolution No. 2015 authorizing the Town Manager to execute a Quitclaim Deed between VDOT and the Town conveying all of the right of way and permanent easements on Project U000-149- 105, RW201 (Washington Avenue) to the Town of Vinton. The next item for consideration was a Resolution to accept $6,323.00 received from Byrne Justice Assistance Grant from the Department of Criminal Justice and to appropriate the Town’s required $632.00 match for a surveillance system and cameras. Chief Cook made comments regarding the use of the grant funds to purchase a building security system with cameras for several areas in the Police Department which will tie into the four cameras currently outside the building. A question was asked regarding putting a camera in the main lobby of the building. Chief Cook indicated extra cameras can be added to the system, but he does not know the cost involved. He indicated that someone had also suggested the Higher Ground Monument at the War Memorial as a location for a camera. The Town Manager commented that staff can look at the cost of adding a camera for the main lobby. Mr. Hare made a motion to Adopted Resolution No. 2016 accepting $6,323.00 received from 6 adopt the Resolution as presented; the motion was seconded by Vice Mayor Nance and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. Byrne Justice Assistance Grant from the Department of Criminal Justice and appropriating the Town’s required $632.00 match for a surveillance system and cameras The Mayor expressed thanks to everyone who helped to make the Dogwood Festival a success. He reminded everyone of the Mannathon and the Wine Festival on May 18th. He invited Council to attend the Roanoke County Board of Supervisors’ Work Session on May 14th and mentioned the May 15th public meeting at the War Memorial on the proposed Vinton Library branch. He also commented that he had recently attended the Roanoke Valley Housing Network Symposium and the positive comments he received regarding Karla Turman and Anita McMillan and their involvement with the Group. Mr. Hare reviewed the Financial Report for March of 2013. The Summary Page, shown on the screen for the audience, gives an overall view of where we are in comparison to our projections. In the General Fund, we are at 104% of our projections and at 90% in expenditures. The Utility Fund is at 99% of projections with expenditures at 81%. Our cash amount between February and March increased around $50,000. Mr. Hare continued with comments regarding savings based on wages and salaries for some open positions, the timing of some specific expenditures and savings of fees to the Water Treatment Facility. After the next Finance Committee meeting in June, we should have a better idea of the surplus at the end of this fiscal year. Council can then discuss how they want to handle the surplus funds. Mr. Hare made a motion to accept the Financial Report for March 2013 as presented; the motion was seconded by Vice Mayor Nance and carried by the following vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. Accepted Financial Report for March 2013 Comments from Council Members: Mr. Hare expressed thanks to Shirley Patsel and also thanks to the many other citizens in the Town who contribute in their own way. Vice Mayor Nance congratulated Ms. Patsel, the Dogwood Festival Committee and Town staff for their work on the Festival. He also expressed concerns for staff members who have had some losses and illnesses in their families. He reminded everyone of the Peace Officers Memorial Service on May 15th at Campbell Memorial Presbyterian Church. Mr. Adams reported that 31 of the Volunteer First Aid Crew qualified for a program with the assistance of 7 Roanoke County that paid each one $500 for their service. The Crew’s books were audited by Roanoke County and they received no exceptions. EMS Week is May 20-24 and the First Aid Crew is hosting a pizza dinner on May 20th at 6:30 pm at the Crew Hall. Council, the Town Manager and the Assistant to the Town Manager are invited. He also commented on the success of the Dogwood Festival. The Town Manager reminded Council of the Relay for Life Luminary Service to be held at the War Memorial tomorrow night . There will be a brick dedication at 7 pm and the luminary service to follow. Mr. Adams made a motion to adjourn the regular meeting; the motion was seconded by Mr. Hare and carried by the following vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) - Altice. The regular meeting was adjourned at 7:58 p.m. Regular meeting adjourned The first item under the Work Session related to a briefing on the Refuse Collection at the 3rd Street Dumpster. Gary Woodson, Public Works Director, began with comments regarding a volunteer survey that was taken during the month of April on Saturdays and Sundays at various times during the hours of 9:00 a.m. to 3:00 p.m. Along with the survey questions, staff also did a visual survey on the contents of the dumpsters. Out of the 58 people who participated, 93% stated they were from Vinton; 93% were disposing of household waste and 81% stated they found out about the service by just riding by. Other questions asked were the frequency of the use, its importance to them and how they would rate the service. A total of 100% indicated they would like for it to continue. He is not aware of any negative comments, but some people did not participate. Mr. Woodson further commented that 30 dumpsters were emptied during that time period and 80% of them were full. Out of the 30 emptied, 27 contained household items, 17 contained construction materials, 14 contained furniture and 7 contained brush. Mr. Hare stated that the Finance Committee had discussed the issue and a comment was made that we could buy a hunting camera that comes on with motion. Mr. Woodson commented that the issue is not catching someone who is dumping illegal, but the enforcement from that point forward. Further comments were made regarding the resources needed to enforce the law and follow through on any legal process. 8 The Town Manager reminded Council that Mr. Woodson had requested additional funds in the upcoming budget to cover the overtime for the refuse crew for this service. If Council decides to keep the service, we will need to add around $5,000 to the budget. The Mayor asked if this service did not exist would there be an increased cost in picking up additional items at the curbside. Mr. Woodson responded that if the current bulk service operated as it should and residents set the materials out at the curbside, there should only be a nominal increase. However, he feels that a lot of the illegally dumped materials would end up somewhere else in the Town which would require staff to go and pick up the material. This would add to our costs. Even though the refuse crew has to move and separate the items, it is still easier being at a central location. The Town Manager further commented that it is a valuable service, but how do you regulate it. The Resource Authority has certain times of operation and they open and close the gate. After further discussion and comments, Mr. Hare indicated this service probably costs the Town $10,000 a year. He suggested doing away with the service and use that money to fund a CIP project If it later turns out that it is a vital service to our citizens, we can add it back in. If we did not have curbside pickup on a weekly basis that would be a different issue. Mr. Adams stated that we do not need to eliminate the service on account of the few that abuse it. A camera placed there would help to identify those who are using it illegally. The Town Manager commented that he would have to review the Code to see if we have a means to enforce it. Mr. Hare then reminded Council that the Town Manager needs some direction so he can do what is necessary to adjust the budget. Vice Mayor Nance commented on the process of the actual enforcement and the time involved which may result in a $50 fine. The last item for the work session was a briefing on two proposed Memorandums of Understanding between Roanoke County and the Town relating to stormwater management plan review services and stormwater management facilities post-construction inspection services. After brief comments from the Town Manager, Ms. McMillan reviewed her staff report. Since 1995 the Town has not had a full-time staff engineer. We have been able to work with Roanoke County’s Engineering Department to start reviewing the stormwater plan for the Town. Roanoke County has been the Town’s agent for erosion and 9 sediment since 1984 which is closely related to stormwater management requirements. In 2003 due to a new mandate the four jurisdictions in the Roanoke Valley fell into the urbanized census known as a Phase II community where we have to start taking the stormwater quality management into consideration. Roanoke County indicated they could no longer do our review when we had to start submitting our own Virginia Stormwater Management Plan (VSMP) permit to the State. Beginning March 2003, the Town began having to use private engineering firms to review site development plans for stormwater management requirements for quantity and quality compliance; however, business owners have expressed concern that the Town is hiring a private competing engineering firm to review and inspect another private engineer’s work. In August of 2011 Town and Roanoke County staff began discussing the possibility of the County providing stormwater services to the Town for a fee. They have submitted a fee proposal, but staff feels that it needs further negotiations. Council is being asked to approve these MOUs because we have to put in our annual stormwater permit report which is renewed every five years, what our staffing and funding level will be to meet the state requirement. Since we do not have our own engineering department and based on the costs and turnaround time, it is not feasible to continue to rely on a private engineer. The County has established a policy for a turnaround of two weeks for a site plan and three weeks for a subdivision plan. Contractors have commented that the longer it takes, the more it costs them. Once Council gives its consensus to proceed, the County will present the two MOUs to their Board and we will have an agreed upon fee schedule to present back to Council with the final MOU documents. For information, we currently pay the private engineering firm a rate of $150 an hour. The Town is requesting one flat fee for each plan that we receive from its inception to the end of the approval. Ms. McMillan then commented that the MOU regarding the post-construction stormwater inspection services. According to our permit, we are required to inspect all stormwater facilities every five years or when a problem arises that needs immediate attention. The Mayor asked about the quantity as opposed to the quality factor. Ms. McMillan responded that in the past we were only responsible for quantity. For instance, after a certain amount of rainfall, the water is supposed to be 10 retained so it does not go to the adjacent property owner or erode the nearby creek. The quality requirement now requires us to not only retain the water but to also treat it to make sure it does not have pollutants Vice Mayor Nance asked if we had any idea of what the fees might be for a comparison. The Town Manager commented that the first estimate from the County was $1,200 per application. We have asked for some information regarding how they arrived at this figure. We hope we will be able to negotiate an amount that will satisfy both parties. Ms. McMillan indicated they have quoted $1,280 for a site plan review. For the post-construction inspection services, $75 an hour with a maximum of two hours, for a total of $150. Under the State requirement for the stormwater management plan permit, the Town has to handle the enforcement and administration. We can contract out for the review and inspection services. Roanoke County has been inspecting some of our ponds for the past two years. They have had an intern for the past three years who has mapped all the storm sewer infrastructure in the Town and recently they completed all the field inspections of all the known storm sewer structures located in the Town. The County did not charge for this service and they are also going to provide us with GIS services and needs since we do not have the equipment or the staff to do our own. Ms. McMillan further commented that we have been working regionally as well with the Cities of Salem and Roanoke to try and develop consistent stormwater ordinances across the Valley. We are also trying to establish consistent fees so each locality will have basically the same requirements. We will bring the final MOUs along with the fee schedule back to Council at their June 4th meeting for approval. The work session ended at 9:35 p.m. APPROVED: ________________________________ Bradley E. Grose, Mayor ATTEST: ___________________________________ Ryan Spitzer, Acting Town Clerk 1 MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M. ON TUESDAY, MAY 21, 2013, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. MEMBERS PRESENT: Bradley E. Grose, Mayor William W. Nance, Vice Mayor I. Douglas Adams, Jr. Matthew S. Hare MEMBERS ABSENT: Robert R. Altice STAFF PRESENT: Christopher S. Lawrence, Town Manager Susan N. Johnson, Town Clerk Elizabeth Dillon, Town Attorney Ryan Spitzer, Assistant to the Town Manager Gary Woodson, Public Works Director Barry Thompson, Finance Director/Treasurer Anita McMillan, Planning & Zoning Director Karla Turman, Assoc. Planner/Code Enforcement Ofcr. Chris Linkous, Fire & EMS Captain Ben Cook, Police Chief Joey Hiner, Assistant Public Works Director Christopher Froeschl, Police Officer Brandon Gann, Summer Intern The Mayor called the regular meeting to order at 7:00 p.m. The Town Clerk called the roll with Council Member Adams, Council Member Hare, Vice Mayor Nance, and Mayor Grose present. Council Member Altice was absent. After a Moment of Silence, Mr. Adams led the Pledge of Allegiance to the U.S. Flag. Roll Call Vice Mayor Nance made a motion to approve the consent agenda as presented, the motion was seconded by Mr. Adams and carried by the following vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0) – None; Absent (1). Approved minutes of Council’s Special meeting of April 30, 2013 Vice Mayor Nance read a letter from Chief Cook naming Officer Christopher Froeschl as Police Officer of the month for April 2013. The next item on the agenda was a Proclamation declaring Click It or Ticket Mobilization in the Town for May 20th to June 2nd. Mr. Hare read the Proclamation and Chief Cook made brief comments. The next item was a Proclamation declaring National Emergency Services Week in the Town for May 19th to May 25th. Mr. Adams read the Proclamation. 2 The next item was a Proclamation declaring Public Works Week in the Town for May 19th to May 25th. The Mayor read the Proclamation. The next item on the agenda was a Public Hearing to receive comments regarding a request for a fifty (50) foot wide by approximately one hundred and fifty (150) foot long undeveloped right-of- way, known as Daleview Drive, Map of Section No. 4, Bali Hai, Plat Book 6, Page 30, to be closed, vacated, and deeded to the adjoining property owners. The Mayor announced that the Public Hearing has been cancelled because the applicant has withdrawn their application. Public Hearing cancelled- application withdrawn The next item on the agenda was a Public Hearing to receive comments regarding the issuance of general obligation bonds of the Town in the estimated maximum amount of $2,000,000 (the "Bonds") to finance the costs, in whole or in part, of various capital improvements, which may include without limitation the Roanoke Regional Wastewater Plant, water line replacement Jefferson/ Jackson/Cleveland Ave Phase 1 & 2, Glade-Tinker Creek Wastewater Interceptor Replacement Phase 2, capital equipment purchases and other capital improvements for the Town (collectively, the "Projects"), and to pay the costs of issuance of the Bonds. The Town Manager made brief comments regarding the four major projects to be financed through the Bonds--our 5.5% portion of the Western Virginia Water Authority’s Wastewater Treatment Plant improvements; the refinance of the bridge loan for the Glade/Tinker Wastewater Interceptor Line Improvements; Phases 1 and 2 of the design and replacement of water lines in the Cleveland/Jefferson/ Jackson Avenue neighborhood and a five-year lease to replace four pick-up truck service vehicles and one backhoe. Requests for proposals have been advertised to financial institutions through Davenport & Company. We propose to have all the information to present to Council at the June 4th meeting. Interest rates are expected to be in the 3% to 3- 1/4% range for terms of 20 to 30 years. The equipment lease will be for a five-year term. The Town Manager then commented that we cannot take on this new debt without an increase in our water and wastewater rates of 8.7%. After the staff report, the Mayor opened the Public Hearing at 7:25 p.m. Hearing no comments, the Public Hearing was closed at 7:26 p.m. Mr. Hare asked if the 8.7% rate increase funds all of the bond debt of $2 million. The response was yes and that none of the increase is intended to cover operational costs. Council Public hearing opened and closed – no public comment 3 will be briefed on the financing options at their June 4, 2013 meeting and formal action will be taken at their June 18, 2013 meeting. The next item on the agenda was a Public Hearing to receive comments regarding a request to revise Water and Wastewater Fees and Charges Schedule by an increase of 8.7 percent, 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. The Town Manager commented that the rate increase is to cover the financing to pay for current obligations and other capital improvement projects already mentioned. After the staff report, the Mayor opened the Public Hearing at 7:29 p.m. Hearing no comments, the Public Hearing was closed at 7:30 p.m. Mr. Hare commented that he understood according to the rate study that we would be presenting a schedule of rate increases instead of just for one year. The Town Manager responded that dealing with the issue one year at a time gives the opportunity to have a more exact amount for consideration. We did not advertise it that way, but it is an option. Mr. Hare then asked if we would engage Davenport every year to update the rate study and the response was not every year, but possibly every two or three years. To clarify, Mr. Hare asked if our customers in East Roanoke County pay the exact same rates as the Town. The Town Manager responded that it is our contractual agreement between the Town and Roanoke County to provide the same service at the same rate schedule. Mr. Thompson then commented that the water and sewer rates are the same, but the utility tax is more in the County. The Town’s tax is $1.80 and theirs is $3.60. Mr. Hare further commented that he feels the rate increase is necessary and the data that we have to support it is more solid this time than in the past. There is a perception that we may not be fair with our rate structure; however, we provide a service that has to always work. Whether a customer uses 3,000 gallons or one gallon, every time they turn on a faucet, the water needs to be there. Our culture believes we should only pay for what we use, but we also have to pay for access to the system. Also, some of our lines are 80 to 100 years old and we owe it to all our citizens to make sure they have adequate fire protection and water flow. Vice Mayor Nance commented that he is supportive of the rate increases and also a scheduled line of increases. He Public Hearing opened and closed – no public comment 4 mentioned that our water and sewer lines are not as visible and we do not see the needed repairs until something breaks. The rates increases will allow us to not only cover our expenses but to invest in upgrading our infrastructure and to pay for the repairs that need to take place this year and in the future. Mr. Adams commented on the storm event last year that caused our customers to lose water and the number of fire hydrants that are not able to provide adequate fire protection. We do not have a choice but to make sure we have the water available and he supports the increase. The Mayor then commented that the rate increases are necessary to make an investment in our Town not just for the convenience of our citizens, but for our safety. It is important that our citizens know this increase was backed up by a lot of research on what type of investment we need to make for the future of our system. He commented on the $1 million spent recently on our wastewater system on Walnut Avenue that most citizens are not aware of, but it shows how important this Council believes in the importance of maintaining our system. He also supports the increase. Council will take formal action on this matter at their June 4, 2013 meeting. The next item on the agenda was a Public Hearing to receive comments regarding a request to increase an excise tax on the sale of cigarettes from $0.20 to $0.35 on each package containing 25 or fewer cigarettes. The Town Manager commented that the cigarette tax is one tax that the Town has the ability to control. The proposal of a $0.15 increase per pack would generate approximately $159,000 in additional revenue. The original cigarette tax was implemented in 2010. This additional revenue is not earmarked for capital, but would help to fund several capital projects such as equipment replacement and investment in bridges, buildings, technology and vehicles. He commented on the comparative rates for surrounding localities. We currently receive around $300,000 at the current tax rate. After the staff report, the Mayor opened the Public Hearing at 8:00 p.m. Hearing no comments, the Public Hearing was closed at 8:01 p.m. Council will take formal action on this matter at their June 4, 2013 meeting. Public hearing opened and closed – no public comment The next item on the agenda was a Public Hearing to receive comments regarding the proposed FY2013-2014 Town of Vinton Budget. The Town Manager reviewed his prior budget presentation showing a total recommended budget of $10,983,016 which 5 is a General Fund of $7,875,961 and a Water and Sewer Fund of $3,107,055. The Water and Sewer fund amount does not include the 8.7% proposed rate increase. The budget maintains the $0.03 real estate tax rate, the $1.00 personal property and machinery and tools tax rate. It proposes a $0.15 increase in the cigarette excise tax. There is a 6.46% increase over the FY2013 budget which accounts for the $250,000 CDBG money and the cigarette tax increase. Other budget highlights are the funding of capital items in the amount of $194,230, milling and paving, increases in electricity and fuel expenses and contributions to our Volunteer Fire & EMS. Our annual payment of $50,000 toward the land purchase for the library branch is included as well as $250,000 of our CDBG grant money. The Town Manager next commented on budget items related to personnel such as a health insurance increase of 9.76%, an evaluation and consideration of either a merit bonus or a cost of living adjustment and maintaining increased professional development and tuition reimbursement. A breakdown of the capital improvement program was mentioned totaling $194,230 as well as the community contributions and joint local government services. The Utility fund proposes a 0.21% increase over the FY2013 budget. This does not include the proposed 8.7% rate increase. Mr. Thompson indicated the rate increase would bring in additional funds of around $242,000. Mr. Thompson further commented that the rate study did not look at the water and sewer system development fees even though several years ago a commitment was made to review those on an annual basis. We should review those in January to make sure we are competitive with our surrounding jurisdictions. There is proposed an increase in the wastewater maintenance and repair of inflow and infiltration and an operating contingency of $48,352. Again, the Town Manager reminded Council that the results from the RFP for the financing for the General Obligation Bond will be brought back at their June 4th meeting and formal action will need to be taken at the June 18th meeting. After the staff report, the Mayor opened the Public Hearing at 8:23 p.m. Hearing no comments, the Public Hearing was closed at 8:24 p.m. Mr. Hare stated that his comments at prior meetings regarding the cigarette tax increase still stood. After the Public Hearing opened and closed – no public comment 6 Finance Committee meeting on June 3rd, there should be a better sense of where we will end this year. In lieu of trying to go after some additional revenue, he would like to see us pull as much CIP forward into this budget. The $35,000 for the Tinker Creek Greenway should be paid from the allocated funds that we received from AEP. The presentation makes it look like we are raising taxes to pay for something that we already have the money for. Mr. Hare indicated he can support an increase in wages. Our employees do a phenomenal job and are a valuable resource that we do not need to neglect. We need to come to a balance between funding raises and CIP. When you raise a tax you better make sure that people can see what it is that they are being taxed for. Although the CIP is important, no one is going to see those improvements. Vice Mayor Nance commented that this is very reasonable and practical budget. He appreciates staffs’ hard work and sound theories behind their recommendations. After several weeks of consideration, he is not ready to support an increase in the cigarette tax. He believes it is a very reasonable way to raise the funds that are requested and suggested. However, he feels that before we raise taxes we need to be at a level of absolute necessity and we are not at that point. Vice Mayor Nance does support the increase in the water and sewer rates because there are improvements and repairs to the infrastructure that has to take place over the next few years that we have to fund. He also anticipates that we will have a surplus this year of approximately $75,000 which we can use to attack the CIP list starting with the priorities set by staff. With a 1-1/2% raise to employees, not to include Town Council, he feels we will still have some surplus that can be applied to the CIP. He stated that we can close the 3rd street dumpsters and apply that cost savings to the CIP and the new janitorial contract to be considered later in the meeting will also save us some money. He does not intend to go line by line, but has to believe with some reasonable decisions and the surplus that we anticipate having at the end of this fiscal year, we will not have to increase the cigarette tax. Mr. Adams commended the Finance Committee for the work they have done on the budget. However, he would not want to see the 3rd street dumpsters close. If we do have a surplus this year that can be used toward the CIP, he thinks we have to honor the priorities. But also we have to make sure that we have funds available for emergencies. The Mayor agrees and supports the idea of a 1-1/2% salary 7 increase for our staff and not Council. He thinks the 3rd street dumpsters are a valuable service to our citizens and of great benefit to the Town. If we eliminate that service we possibly will have a lot more trash around the Town. As far as the surplus and how it relates to the CIP, his concern is that all of these items listed are necessary. It is necessary for us to invest and re-invest in our town and we have not done that for several years. We need to start making some steps even if they are small steps. If we have a surplus of $75-100,000 and the majority of Council wants to apply that toward the CIP that would be one approach. However, we still need to be sure we have enough to fully fund the CIP. The Mayor then commented that he does not like the idea of the cigarette tax increase, but there are a limited number of revenue sources that the State will allow us to have and this is one of them. It is one I think we have to use and just like the other taxes we collect as a Town, they are not set aside for one particular item, they all go into the General Fund. He can support the cigarette tax increase because it is vital for us to maintain the services we have now and at least take some small steps toward reinvesting in our Town. The Town Manager summarized that it is staff’s’ job to bring back legitimate options for consideration. Vice Mayor Nance and Mr. Hare are correct, we do plan to end the year with a small surplus and we have a healthy, safe reserve fund balance. Staff can re-evaluate the CIP list as well as the proposed salary increase for employees at 1-1/2% and bring back options as to what we can fund within our current means and what we could do if you choose to increase the cigarette tax. The list is prioritized and we will go through each project and fund them along the way. However, when we hit the bottom line that becomes the time to decide is it worth any adjustment in revenue and if not, then those projects get bumped. There are two things on the list that we have to pay for, we have to pay VDOT for our part of the Walnut Avenue Bridge project and we have to replace our server that runs the Town’s entire computer system. The cigarette tax proposal is not based just on one year, but on the revenue needed for a five-year capital plan. We are trying to develop a financially stable and modest plan to be sure that we have funding to pay for those future items. Vice Mayor Nance commented that perhaps we should have a Finance Committee meeting before June 3rd. The Town Manager agreed and suggested they meet with the 29th or 30th. He will confirm the exact date and time with the Committee. 8 The next item on the agenda was to consider adoption of a Resolution approving a settlement and authorizing the Town Manager to execute an Agreement with the Confederated Tribes and Bands of the Yakama to resolve a lawsuit pending in federal court in the State of Washington. The Town Attorney commented that this settlement is to resolve a pending lawsuit in Federal Court in the State of Washington. The Vinton Police Department has a member of its force that serves on a Federal Task Force that was involved in going onto Yakama lands in February of 2011. The Yakama Nation filed a lawsuit against the Attorney General of the United States, the FBI Director, the Federal Law Enforcement Officers and also localities that had Task Force members that participated. The Virginia Municipal League defended the case through an attorney in Spokane, Washington. This settlement will dismiss the case and there is no payment of any monies nor admission of any liability or wrongdoing. By entering into the settlement the Town has to agree not to go onto Yakama lands in violation of any treaties or laws. Mr. Hare noted that a correction needs to be made to the last whereas paragraph from “City” to “Town” Council. Mr. Hare then made a motion to adopt the Resolution as corrected; the motion was seconded by Vice Mayor Nance and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) – Altice. Adopted Resolution No. 2017 approving a settlement and authorizing the Town Manager to execute an Agreement with the Confederated Tribes and Bands of the Yakama to resolve a lawsuit pending in federal court in the State of Washington The Town Manager requested that we move the briefing on the purchase of the new brush truck for the Vinton Volunteer Fire Department ahead of the action items. The Town Manager commented that a new Brush Truck has been purchased by the Volunteers with their own funds. Now, the truck needs to be outfitted with the proper lighting and equipment to make it ready for service. This will be paid by grant funds that we have already received from the Virginia Department of Fire Programs. Craig Sheets, Deputy Fire Chief, then commented that the skid unit was removed from the existing truck and will be mounted into the new truck bed. They are also doing some needed upgrades. The chassis in the amount of $27,000 was purchased by the Volunteers with their own funds. Blue Ridge Rescue Suppliers has made a proposal of $9,837 to do the work. Since they have this proposal, they will go through competitive bidding to get the best price. Mr. Sheets also commented that the volunteers and career staff have worked on this project together to come up with the most practical and safest piece of equipment. In response to a question, he responded that there are other localities that 9 have a brush truck for backup while this one is out of service. Roanoke County will maintain and service the truck and it will be titled to Roanoke County. All of Council expressed appreciation for how the volunteers and career staff worked together to come up with the best investment for these grant funds. The next item on the agenda was to consider adoption of a Resolution authorizing the Town Manager to execute an agreement between the Town of Vinton and APCO granting and conveying an easement for poles to be relocated in connection with the Walnut Avenue Improvement Project. Anita McMillan commented that Town staff met with APCO and requested that they relocate the poles so as to not interfere with the Town’s underground sewer and water lines and any future use of the property. This agreement will grant APCO the easement to relocate the poles. After further comments from the Town Manager, Mr. Adams made a motion to adopt the Resolution as presented; the motion was seconded by Vice Mayor Nance and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) – Altice. Adopted Resolution No. 2018 authorizing the Town Manager to execute an agreement between the Town of Vinton and APCO granting and conveying an easement for poles to be relocated in connection with the Walnut Avenue Improvement Project The next item was to consider adoption of a Resolution authorizing the Town Manager to execute a Contract with Redlee/SCS, Inc. for janitorial services for the Town’s facilities. Ryan Spitzer provided background information regarding our current janitorial services. We have been operating on a month-to-month basis and decided to send it out for bid. We received five bids including the current provider. Due to the wording in our procurement policy and the State guidelines, we must accept the lowest bid if they are responsive and responsible. Redlee was that company. We anticipate the total contract to be around $49,000 for the year which includes chemicals, some supplies and the per use fees for the War Memorial. The contract is for a one- year initial term with the option of extending for four more years based on satisfaction of performance. The Mayor commented that he was glad to see that the general liability insurance requirement is $2 million and the minimum wage escalation in the contract. Mr. Adams asked about the service to the Fire & EMS Building and the response was it was for stripping and waxing the floors. They handle their own cleaning. Mr. Hare asked if the contract can be renegotiated after the first year and could they increase their prices. Mr. Spitzer responded that they could, but it the price was not within our budget, we will go through the RFP process again. Every department in the Town was contacted regarding their janitorial needs and had input in the decision. 10 Vice Mayor Nance then made a motion to adopt the Resolution as presented; the motion was seconded by Mr. Adams and carried by the following roll call vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) – Altice. Adopted Resolution No. 2019 authorizing the Town Manager to execute a Contract with Redlee/ SCS, Inc. for janitorial services for the Town’s facilities The Town Clerk reminded Council of the Start of the Summer Luau event on May 31st at the Vinton Pool to recognize our volunteers. The Town Manager commented on the Wine Festival and the Mother’s Day Brunch, both held at the War Memorial. The Mayor commented on the Wine Festival and the Mannathon and expressed thanks for the invite to the EMS class on Monday night. He indicated he had heard a lot of positive comments regarding the Mother’s Day event. Comments from Council Members: Mr. Hare apologized for being unable to attend the EMS class. He also publicly thanked the Roanoke County Board of Supervisors for the action they took in moving forward to the next step for the library branch. Vice Mayor Nance and Mr. Adams also commented on the Wine Festival and the Mother’s Day Brunch. Gary Woodson invited Council to Public Works Day at the facility on Friday from 11 am to 2 pm. Lunch will be provided and there will be equipment displays and demonstrations. Mr. Hare made a motion to adjourn the meeting; the motion was seconded by Mr. Adams and carried by the following vote, with all members voting: Vote 4-0; Yeas (4) – Adams, Hare, Nance, Grose; Nays (0); Absent (1) – Altice. The meeting was adjourned at 9:35 p.m. APPROVED: ________________________________ Bradley E. Grose, Mayor ATTEST: ___________________________________ Susan N. Johnson, Town Clerk 1 Meeting Date June 4, 2013 Department Administration Issue Consider adoption of an Ordinance revising the Water and Wastewater Fees and Charges Schedule by an increase of 8.7 percent, 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. Summary Over the past two years, town staff has completed a study evaluating our water and wastewater system. The study aimed to create a five-year plan for operations and capital investment. The capital investment plan was developed through engineering studies, financial advisors, and staff evaluation of priorities based on age, failure incidents, fire suppression supply, and economic development opportunities. The plan also identifies major system that are identified for replacement or major repair in years 6-10, but does not go into any detail this far out. The major projects to be funded are as follows: 1) Western Virginia Water Authority – Wastewater Treatment Plant improvements related to the disinfection capacity of the plant. The total project is approx. $17 million. The town’s responsible portion is 5.5% based on our usage of capacity, which is $939,785. The WVWA has already bid and contracted the project to a construction firm. The town would begin paying invoices as submitted throughout the project after closing on the bond. 2) Glade/Tinker Wastewater Interceptor Line Improvements – This replaces over 1200-feet of 24-inch wastewater pipe along the creek. The line is undersized and contributed to multiple overflows into Glade Creek, which puts the town at risk for a consent order from DEQ. The project was funded through a previous bond as well as a bridge loan of $500,000. The proposed long term bond would pay off the bridge loan. Town Council Agenda Summary 2 3) Design and Replacement of water lines in the Cleveland/Jefferson/Jackson Ave. neighborhood east of downtown – This would replace approx. 4,000 feet of aging water lines and improves the fire suppression services. Water lines are 80-100 years old and undersized for modern fire suppression needs. The project is anticipated to be three phases, with this bond funding phase 1 and 2. Phase 3 is scheduled for funding in year 2016. 4) 5) Equipment Replacement – A 5-year lease proposal is recommended to replace four pick- up truck service vehicles and one backhoe. These vehicles have exceeded their useful life and are an integral part of our team providing daily services for our utility system. The bond is proposed as a 20 or 30-year term for projects 1-3 and a 5-year lease structure for project 4. A request for proposals has been advertised to receive bids from VRA, VML, and commercial banks. Interest rates have been in the low 3% and a final interest rate will be determined upon final recommendation of the winning bid entity. To fund this bond amount of $2,000,000, the water and wastewater rates are proposed for an increase of 8.7% to be implemented July 1, 2013. Attachments Ordinance Water and Wastewater Fees and Charges Schedule Public Brochure Recommendations Motion to adopt Ordinance 1 ORDINANCE NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL, HELD ON TUESDAY, JUNE 4, 2013, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. AN ORDINANCE to adopt water & wastewater rates and charges for residential/commercial/institutional/industrial users pursuant to the Vinton Town Code, Chapter 94, Utilities, Section 94-46, Water rates and charges and Section 94-91, Wastewater rates and charges 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 the issuance of general obligation bonds in the estimated maximum amount of $2,000,000 to finance the costs, in whole or in part, of various capital improvements, which may include without limitation the Roanoke Regional Wastewater Plant, water line replacement Jefferson/Jackson/Cleveland Ave Phase 1 & 2, Glade-Tinker Creek Wastewater Interceptor Replacement Phase 2, capital equipment purchases and other capital improvements for the Town; WHEREAS, a water and wastewater rate increase of 8.7% is needed to fund the annual debt service for said general obligation bonds; 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 May 21, 2013, 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 & wastewater rates and charges shown on the attached Rates & Charges Schedule for Water and Wastewater Service are effective on July 1, 2013 for any water and wastewater billed on or after that date. Said Schedule is hereby incorporated by reference, enacted, approved and established. 2 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 Effective Date: July 1, 2013 Town Council Ordinance No. _____ dated June 4, 2013 Page 1 of 2 TOWN OF VINTON RATES & CHARGES SCHEDULE FOR WATER AND WASTEWATER SERVICE Water Rates & Charges Minimum Charge for Residential Service (Bimonthly )Gallons First 3,000 gallons or less thru 5/8" meter $15.92 $17.31 First 1,500 or less $8.66 Residential Volumetric Consumption Rate Next 42,000 (30,000) gallons or less (per 1,000 gallons )$2.94 $3.20 Next 15,000 or less $1.60 Next 255,000 All over 33,000 gallons or less (per 1,000 gallons )$2.55 $4.00 All over 16,500 $2.00 Next 700,000 gallons or less (per 1,000 gallons )$2.35 All over 1,000,0000 gallons (per 1,000 gallons )$1.94 Minimum Charge for Commercial/Institutional/Industrial Service (Monthly ) Monthly First 1,500 gallons or less thru 5/8" meter $7.97 $8.66 First 1,500 gallons or less thru 3/4" meter $8.69 $9.45 First 1,500 gallons or less thru 1" meter $9.28 $10.09 First 1,500 gallons or less thru 1-1/4" meter $9.66 $10.50 First 1,500 gallons or less thru 1-1/2" meter $10.44 $11.35 First 1,500 gallons or less thru 2" meter $13.36 $14.52 First 1,500 gallons or less thru 3" meter $17.85 $19.40 First 1,500 gallons or less thru 4" meter $23.44 $25.48 First 1,500 gallons or less thru 6" meter $29.31 $31.86 First 1,500 gallons or less thru 8" meter $32.81 $35.66 Commercial/Institutional/Industrial Volumetric Consumption Rate All over 1,500 gals. (per 1,000 gals.)$3.75 $4.08 Purchased Water Sales Monthly Service Charge.$2.00 $8.66 Volumetric Consumption Rate (Residential/Commercial/Institutional ). (Per 1,000 gallons )$3.40 $4.08 Volumetric Consumption Rate (Industrial ). (Per 1,000 gallons )$3.50 $3.81 Bulk Water Sales Monthly Hydrant Meter Service Charge.$165.00 $179.36 Volumetric Consumption Rate (per 1,000 gallons).$15.18 $16.50 Unmetered Service Charge.$110.00 $119.57 Volumetric Consumption Rate (per 1,000 gallons).$15.18 $16.50 Note. The Town shall determine when the hydrant meter will be used. Miscellaneous Water Service Charges and Fees Initial Service Application.$25.00 Tenant Deposit for Residential Unit $100.00 Deposit Required After Disconnection $100.00 Re-check reading of meter (See Note 1).$20.00 Meter Accuracy Test - Residential (See Note 2).$25.00 Meter Accuracy Test - Comml./Inst./Ind. (See Note 2).$150.00 Reconnect fee.$40.00 Additional Overtime Charge (See Note 3)$25.00 Return check fee.$50.00 Bimonthly Monthly Effective Date: July 1, 2013 Town Council Ordinance No. _____ dated June 4, 2013 Page 2 of 2 Note 1. No charge for first re-read request. No charge for misread meter. Charge applies to any additional requests within a 12-month period. Note 2. No charge if meter fails accuracy test. Note 3. Applies for work other than 8:00 AM to 5:00 PM, Monday thru Friday. Wastewater Rates & Charges Gallons Minimum Charge for Residential Service - Metered (Bimonthly )$23.39 $25.42 $12.71 First 3,000 gallons or less First 1,500 or less Residential Volumetric Disposal Rate All over 3,000 gallons (per 1,000 gallons )$3.43 $3.73 All over 1,500 $1.87 Minimum Charge for Commercial/Institutional/Industrial - Metered Service (Monthly $11.68 $12.70 First 1,500 gallons or less. Commercial/Institutional/Industrial Volumetric Disposal Rate All over 1,500 gallons (per 1,000 gallons )$3.43 $3.73 Residential Unmetered Service (Bimonthly)$48.71 $52.95 $26.48 Fixed Charge (See Note 1) Note 1. Applies where no individual residential water meter is installed. Bimonthly Monthly Bimonthly Monthly Meeting Date June 4, 2013 Department Administration Issue Consider adoption of an Ordinance increasing an excise tax on the sale of cigarettes from $0.20 to $0.35 on each package containing 25 or fewer cigarettes. Summary The budget sets forth operating expenditures and capital expenditures. Over the past five years, through the economic downturn, our budget has been appropriately reduced without any major impacts to the delivery of service and minimal service elimination. However, one of the major reductions has been to our capital investment funding. This reduction can be accommodated in the short term by delaying purchases and equipment replacement. In the long term, we have a back log and pent up demand for capital investment and replacement of equipment. These needs are outlined in detail in the capital improvement plan within the budget. To help begin to address these capital needs, the budget includes a 15-cent increase in cigarette tax. This is expected to generate approximately $159,000 in additional revenue. This new revenue is recommended to fund equipment replacement needs and capital investment in bridges, buildings, technology, equipment, and vehicles. Attachments Ordinance Recommendations Motion to adopt Ordinance Town Council Agenda Summary 1 ORDINANCE NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL, HELD ON TUESDAY, JUNE 4, 2013 AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. AN ORDINANCE amending Chapter 86, Taxation, Article IX, Tax on Cigarettes, Sections 86-341 and 86-349 of the Vinton Town Code and establishing an effective date. WHEREAS, the Town of Vinton is authorized to impose a tax upon the sale and use of cigarettes to provide revenue for the general fund of the Town by Sections 58.1-3830, 58.1-3832, and 58.1-3840 of the Code of Virginia, 1950, as amended; and WHEREAS, a public hearing was advertised and held on May 21, 2013, and all public comments have been considered by Council; and WHEREAS, Council desires to impose an increase in the cigarette tax. NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Vinton that Chapter 86, Taxation, Article IX, Tax on Cigarettes, Sections 86-341 and 86-349 of the Vinton Town Code, is amended as follows: ARTICLE IX. TAX ON CIGARETTES Sec. 86-341. Levied; amount; tax additional to other taxes. In addition to all other taxes of every kind now or hereafter imposed by law, there is hereby levied and imposed by the town an excise tax on the sale of cigarettes equivalent to thirty-five twenty cents ($0.35.20) on each package containing twenty-five (25) or fewer cigarettes. The tax shall be paid by the seller, if not previously paid, and collected in the manner and at the time provided for in this article, provided that the tax payable for each package of cigarettes sold within the town shall be paid but once. The tax hereby levied shall not apply to free distribution of sample cigarettes in packages containing five (5) or fewer cigarettes. Sec. 86-349. Rules and regulations. The director is hereby authorized and empowered to jointly prescribe, adopt, promulgate and enforce rules and regulations relating to the methods and means of cancellation of the stamps provided for in this article and to any and all other matters pertaining to the administration and enforcement of the provisions of this article. The director is further authorized and empowered to examine the books, records, invoices, papers and any and all cigarettes in and upon any premises where the same are placed, stored, sold, offered for sale, or displayed for sale by a seller. The director is authorized to delegate any of the powers and duties set out in this article to one or more designees deputies or assistants, except as may be prohibited by law. 2 This ordinance shall take effect on ___________, 2013. 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 June 4, 2013 Department Administration Issue Consider adoption of an Ordinance approving the Town of Vinton, Virginia budget for the fiscal year beginning July 1, 2013 and ending June 30, 2014. Summary Council will be briefed in the work session regarding the proposed budget for FY2014. Formal action will be considered at this time. Attachments Ordinance Recommendations Motion to adopt Ordinance Town Council Agenda Summary ORDINANCE NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, JUNE 4, 2013, AT 7:00 P.M., IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. WHEREAS, the Town Charter requires that a budget be adopted by July 1st for the new fiscal year; and WHEREAS, the Council has reviewed the proposed budget and is of the opinion that the Town government can operate for the twelve month period beginning July 1, 2013 to June 30, 2014, with the revenues and expenditures contained in the attached budget; and WHEREAS, any funds appropriated in this budget to any Town department may be used as participating funds in any Federal Aid Programs for like purposes, with the prior approval of the Town Council. NOW, THEREFORE, be it ordained by the Council of the Town of Vinton, Virginia, that the budget for the fiscal year beginning July 1, 2013 and ending June 30, 2014 be set forth herein. Fund Revenue and Expenses Adopted Budget General Fund $7,905,867 Utility Fund 3,429,380 $11,335,247 BE IT FURTHER ORDAINED that this ordinance provides for the daily operation of the department of law and the department of finance, and in an emergency. NOW THEREFORE, BE IT ORDAINED that this Ordinance takes effect July 1, 2013. This Ordinance adopted on motion made by Council Member _________________ seconded by Council Member ________________, with the following votes recorded: AYES: NAYS: APPROVED: _____________________________ Bradley E. Grose, Mayor ATTEST: ___________________________ Susan N. Johnson, Town Clerk Revenues Total All Funds General Fund 7,905,867$ Utility Fund 3,429,380 Capital Improvements Fund - Total Revenues 11,335,247$ Expenditures General Fund: Town Council 115,353$ Town Manager's Office 127,368 Human Resources 75,890 Legal Services 30,000 Finance Department 268,747 Police Department 1,740,931 Communications Services 456,638 Emergency Services 5,000 Police Grants 17,397 Fire & EMS 852,592 Animal Control 121,771 Public Works Administration 64,237 Street Maintenance 1,172,527 Snow and Ice Removal 29,498 Traffic Signs and Street Lighting 134,995 Street and Road Cleaning 71,112 Refuse Collection 493,024 Recycling 68,682 Municipal Building & Grounds 176,522 Special Programs 130,019 War Memorial 290,819 Vinton Veteran's Monument 2,615 Swimming Pool/Parks 81,806 Senior Citizens Program 92,302 Planning Department 294,984 Economic Development 367,352 Public Transportation 89,000 Vinton Business Center 11,200 Debt Service - General Fund 457,911 Contingency 65,575 Transfers - CIP Fund - Total General Fund 7,905,867$ Utility Fund: Utilities Administration 580,814$ Water Distribution System 875,167 Purchased Water 125,000 Wastewater Collection System 958,757 Debt Service - Utility Fund 792,063 Contingency 97,579 Transfers - CIP Fund - Total Utility Fund 3,429,380$ Capital Improvement Fund: General Fund Transfer 0 Utility Fund Transfer 0 Total Capital Improvement Fund -$ Combined Total Expenditures 11,335,247$ Meeting Date June 4, 2013 Department Administration Issue Consider adoption of a Resolution authorizing the Town Manager to execute an extension of services to our existing agreement for Business District Revitalization Planning Project (dated January 15, 2010) with Hill Studio to provide additional services for implementation of the Downtown Physical Improvement Plan through the awarded Community Development Block Grant. Summary As part of the Downtown Revitalization Project, the Town of Vinton had to secure the services of a Professional A/E firm to oversee the work that will be done as part of the project. To streamline the process, Town staff thought it would be best to negotiate with the firm, Hill Studio, who compiled the proposal for the CDBG program as was allowed by the original RFP. Through negotiations, since Hill Studio mainly deals with planning and landscape architecture, Hill Studio subcontracted with a firm, Gay & Neel, to do the engineering work. Town staff met with Gay & Neel and feel they will be a good match for Vinton and our vision for the downtown area. The scope and cost of services fall within the original budget that was prepared several years ago as part of the original proposal. With the changing of projects, potential cost savings realized, and a better understanding of the project mechanics money was able to be moved around from one project to another to fully fund the costs of professional services. The guidelines for the CDBG program set requirements for what percentage of the total budget can go towards professional services. Hill Studio has done several CDBG projects around Virginia with great success and has had a good track record with providing results. Attachments Hill Studio Letter of Extension Gay and Neel Proposal Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary Revised April 30, 2013 Mr. Christopher S. Lawrence, Town Manager Town of Vinton 311 S. Pollard Street Vinton, Virginia 24179 Re: Vinton Downtown Revitalization A/E Services Dear Mr. Lawrence: This letter will serve as an extension of services to our existing agreement with the Town for Business District Revitalization Planning Project (dated January 15, 2010) to provide additional services for implementation of the Downtown Physical Improvement Plan through the awarded Community Development Block Grant. In particular, Hill Studio will provide the following services: I. Downtown Sitework – $57,858 HSPC Commission 1001.04 Based on recommendations of the Downtown Vinton Revitalization Plan, design and construction services will be provided for: (1) Vinton’s Farmers Market area improvements; (2) Streetscape Improvements along Pollard Street, from the intersection of Washington Avenue to the intersection of Jackson Avenue, and Lee Street from the intersection of Maple Street to Railroad/Walnut Avenue. Improvements will include removal of existing utility poles and implementation of ornamental streetlights; (3) Gateway Improvements at the Washington Avenue/Pollard Street intersection and at the Virginia Avenue/Pollard Street intersection; and (4) Assistance with miscellaneous improvements, including implementation of canopy trees in parking lots, implementation of green/pervious parking areas, and development of a retaining wall at the Town-owned site at the intersection of Walnut Avenue and Jackson Avenue. The construction budget for these activities is $442,535 (from the proposed budget for the Downtown Business District Revitalization Project). The following design services will be provided: Task 1: Schematic Design for Downtown Improvements Provide schematic plans for the Farmers Market, Downtown Streetscape, Gateway areas, and targeted miscellaneous improvement areas. AutoCAD information from the 2001 Downtown Improvements Project will be used to develop basemaps for design. Schematic design includes the following: Vinton Downtown Revitalization A/E Services Page 2 • Site Resource Inventory - Visit the site, photograph site, and document existing conditions  Detailed design survey of two areas: the intersection of Washington and Pollard Streets, and the Farmer’s Market proposed improvement area • Prepare illustrative plans for the downtown project area for review by the project management team. • Provide updated construction cost estimate of proposed plans. Hill Studio will attend one presentation with the Owner during Schematics. Task 2: Design Development Hill Studio and its subconsulted surveyor and engineers will prepare layout and detailed drawings using AutoCAD overlay drafting system, which will be shared by the consultants to the project. Design Development Documents will include: 1. Layout plans for the project components, including placement of site furnishings, location of streetlights, parking improvements, pedestrian facilities and signage. 2. Coordinate with APCo, who will be working on design of streetlight system for the project area. Recommend fixture and streetlight locations for APCo components. 3. Planting plans for the areas within scope of work 4. With the Engineer’s design solutions, Hill Studio will review and comment on Engineer plans from an aesthetic standpoint. 5. Provide updated construction cost estimate components and outline specs for construction elements. 6. Present to the management team / field review with client. Attend one coordination meeting, elicit comments for revisions. Task 3: Construction Documents Attend one coordination meeting with the owner and invited others to discuss client revisions from DDs. • Complete construction drawings using AutoCAD overlay drafting system, and Hill Studio quality-control system. Construction Documents to include the items described above in the Design Development Phase. • Produce corresponding project manual with bid documents and specifications for the project. • Revise construction cost estimate. Vinton Downtown Revitalization A/E Services Page 3 Task 4: Reviews and Approvals • Supply construction drawings for reviews, and amend as needed to comply with reviews. Continue to coordinate with APCo for their schedule and work plan. Task 5: Bidding and Negotiation • Prepare one final bid package after reviews. • Assist Owner to advertise (ad placed at owners expense) in local media. • Assist in answering questions, etc. and prepare addenda • Manage one Pre-bid conference • Accept bids for the Owner and make recommendations • Prepare contract for construction • Manage one pre-construction conference Task 6: Construction Observation • As progress dictates, or on a monthly basis if progress is slow, prepare field reports, change orders, review requests for payment, prepare punch lists, etc. for work. • Prepare a punch list inspection of all items • Oversee the contractor to prepare any necessary record documents, operations and maintenance manuals, etc. for work. Up to 6 site visits are included as basic services. If required, additional site visits will be additional services. Note that this scope of work is based on the availability of sufficient AutoCAD information on the project area’s existing conditions, as well as the design and construction of all project elements (Farmers Market, Streetscape and Gateway) moving forward simultaneously, allowing for a combined effort of design, review and construction administration. Additional survey needs, following multiple construction timelines, or additional bid packages, reviews, and site visits will require additional services. II. Design Services – Up to 12 Downtown Façades - $22,200 HSPC Commission 1001.05 Design and construction documents will be provided for up to 12 façades. For the purposes of general budgeting, the estimated average design cost per façade is $1850; note that some facades will require more detailed design and administrative services depending on the level of work to be done. We Vinton Downtown Revitalization A/E Services Page 4 may find that as the façade program advances, this design fee may need to be revised to reflect the actual participation and complexity of projects. Task I: Architectural Design Assistance During the course of work, provide design assistance for up to twelve (12) facades for businesses and storefront improvements to be built by property owner’s contractors or town contractors. Allotted with each project is 6 hours of design time. Services include a sketch or annotated photograph of the storefront or other façade, details as needed and outlined specifications of exterior renovations. Prepare a bid package of the (up to) twelve facades. Design assistance of facades beyond these will be invoiced as additional services. Task 2: Bidding and Negotiation During Basic Services, Hill Studio will bid one package of all facades, one time. The package will be bid to general contractors. Contractors may bid on as many individual work write up packages as they are capable of bidding. The general contractors will be responsible for scheduling and apportioning work into the owner’s budgets. Bidding includes these steps: • Prepare final bid package after reviews. • Assist Town to advertise (ad placed at owners expense) in local media. • Assist in answering questions, etc. and prepare addenda • Manage one Pre-bid conference for all facades at once • Assist the Town at the Bid Opening • Assist the Town as needed in negotiations with the contractor(s) • Prepare up to five contracts for construction for the sixteen façade projects • Manage one pre-construction conference (several conferences, during one day) During bid packages, if redesign of facades is required to get them into budget, this will be invoiced as an additional service. If rebidding any of the facades of the first package is required, re-bidding will be invoiced as an additional service. Task 3: Construction Observation During up to 6 monthly progress meetings, the architect will review construction work. • Hill Studio will review the work in progress for the owners who have selected their own contractors, and who are submitting receipts for reimbursement of project materials. • We will also review the work of pre-approved contractors on a bidder list supplied by the Town. Vinton Downtown Revitalization A/E Services Page 5 • Hill Studio will review the work in progress at up to 6 site visits, discuss/resolve field issues, and prepare progress reports on construction in progress, if performed within the timeframe of other design and construction activities. If, during the façade design phase of the work, the amount of time needed to complete the work of an individual façade or property appears to substantially exceed the amount of time budgeted to complete the work (see Task 1 description above) Hill Studio will meet with the property owner to inform them of the situation, and recommend that the owner drop the project, or that they retain the services of the architect outside of the CDBG project, to prevent from overspending the allocated fee for the design. The architect will monitor the facades’ budgets at progress meetings. OWNER’S RESPONSIBILITY Owner will provide good base mapping data, including digital surveys and construction documents of recent downtown revitalization. Owner will work to expedite and secure community meetings and approvals so as not to delay the design process. Owner will be responsible for securing local approvals. Architect and landscape architect will provide drawings for Owner’s applications. TIME OF PERFORMANCE The services of the landscape architect and architect are to commence upon the execution of the contract agreement by the Town, and notification to proceed. Such services will be undertaken and completed to assure their expeditious completion. Town will give reasonable notice to consultant so consultant can do staff planning for upcoming tasks. Authorized services shall be completed by the end of the 24-month Community Development Program, or any approved extensions of the Program, or should the project be abandoned, the contract may be terminated in progress with 30 days written notice to terminate this contract. OTHER TERMS OF AGREEMENT Hill Studio, P.C. will be compensated for the above services on a lump-sum basis for fees determined as follows: I. Downtown Sitework (1001.04) Task 1 Schematic Design $9,836 Task 2 Design Development $13,307 Task 3 Construction Documents $11,572 Task 4 Reviews / Approvals $5,786 Task 5 Bidding / Negotiation $2,893 Vinton Downtown Revitalization A/E Services Page 6 Task 6 Construction Observation $14,464 Total Sitework: $57,858 II. Design Services – Façade Program – up to 12 facades (1001.05) Task 1 Architectural Design $14,874 Task 2 Bid Packages (each bundle) $1,776 Task 3 Construction Observation (each bundle) $5,550 Total Façade Design: $22,200 Incidental expenses incurred in conjunction with this project are in addition to the professional fees identified above and will be invoiced at 1.15 times the incurred cost. Incidental expenses include lodging, transportation, long- distance telephone communications, printing and copying of drawings, specifications and other project documents, postage, photography and other similar expenditures for the project, as well as management of sub- consultant contracts associated with the project. Expenses will be itemized in accordance with good accounting practice. This agreement and scope of services can be amended with the mutual consent of the Client and Consultant for additional professional services related to the project. Additional services are any services not specifically included in the aforementioned Scope of Services, such as surveying, platting, or structural engineering. If other sub-consultants are required to complete the scope of services, the Consultant will invoice all such consultant costs at 1.15 times the consultants’ invoice. All sub-consultants will be approved by the Client in writing. Unless superseded herein, all other components of the original agreement apply. As additional funds for implementation become available, additional services for revitalization activities may be negotiated at a later date in compliance with the original agreement for services. Such additional services may include a survey of a part of the project area, to supplement existing base data. Please indicate your understanding of and agreement with this agreement amendment by signing both copies and returning one to Hill Studio for our files. Respectfully Submitted, Proposal Accepted, Patrick Hughes, AICP Project Manager Christopher Lawrence Town Manager, Town of Vinton Attachment A: Project Budget Attachment B: Gay & Neel proposal Attachment C: CARBO proposal RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, JUNE 4, 2013, AT 7:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, the Town of Vinton is participating in the Department of Housing and Community Development’s Community Development Block Grant (CDBG) Program through the Virginia Department of Housing and Community Development for a $700,000 Downtown Revitalization and Economic Development Project, Grant number 12-31; and WHEREAS, the program guidelines state the Town of Vinton have a professional architecture or engineering firm on contract to implement and oversee the project; and WHEREAS, the Town of Vinton has previously contracted services with Hill Studio by agreement dated January 15, 2010, for the Business District Revitalization Planning Project; and WHEREAS, the Town of Vinton has contacted Hill Studio to be the primary firm for the Downtown Revitalization and Economic Development Project, Grant number 12-31; and WHEREAS, Hill Studio has contracted with Gay & Neel to be the secondary engineering firm for the Downtown Revitalization and Economic Development Project, Grant number 12-31. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby grant a letter of extension to the agreement with Hill Studio of Roanoke, Virginia; and BE IT FURTHER RESOLVED that the Vinton Town Council does hereby authorize the Town Manager to execute the letter of extension for the services and any other necessary documents which shall be in a form approved by the Town Attorney. This resolution 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 June 4, 2013 Department Finance/Treasurer Issue Financial Report for April 2013 Summary The Financial Report for the period ending April 30, 2013 has been placed in the Town’s Dropbox. The Finance Committee met on Wednesday, May 29, 2013 at 7:00 pm to discuss the report and will make a presentation of the report to Council during the Council Comment Section of the Regular Meeting. Attachments Report in Financial folder in Dropbox Recommendations Motion to approve the Financial Report Town Council Agenda Summary Meeting Date June 4, 2013 Department Council Issue Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 (A) of the 1950 Code of Virginia, as amended, for discussion regarding appointments to boards and commissions as authorized by subsection 1. Summary Council will discuss reappointments as follows: Christopher S. Lawrence to Roanoke Valley-Alleghany Regional Commission Executive Committee for a new three-year term expiring on June 30, 2016. Matthew S. Hare to the Roanoke Valley Greenway Commission for a new three-year term expiring on June 30, 2016. Arthur La Roche, III to the Roanoke Valley Greenway Commission for a new three-year term expiring on June 30, 2016. Attachments Board and Commissions Booklet Summary Recommendations Reconvene and adopt Certification of Closed Meeting Make appointments to boards/commissions Town Council Agenda Summary 1 BOARD OF ZONING APPEALS NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Debra P. Hagins 505 Jefferson Avenue 01/17/09 01/16/14 1808 Frederick J. “Mick Michelsen 225 North Maple Street 01/17/10 01/16/15 1848 Allen S. Kasey 105 Giles Avenue 01/17/06 01/16/16 1895 Sabrina Weeks (Alternate) 1012 Blakemore Circle 10/02/12 02/20/16 CM-10/02/12 VACANT (Alternate) 02/20/16 Robert W. Benninger 1206 Jeanette Avenue 01/17/07 01/16/17 1947 Donald R. Altice 627 South Maple Street 09/07/10 01/16/18 CM-12/18/12 FAIR HOUSING BOARD (DISSOLVED BY ORDINANCE NO. 928 ON 11/6/12) HIGHWAY SAFETY COMMISSION NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Robert A. Patterson 1056 Blandford Avenue 11/01/07 12/31/13 1937 Doug Adams 1632 Meadows Road 09/15/09 02/04/14 1938 Carolyn Fidler 428 Cedar Avenue 03/04/08 02/04/14 1904 Roy G. McCarty, Jr. 450 Jackson Avenue 02/05/08 02/04/14 1905 Robert R. Altice 616 Maple Street 07/01/10 06/30/14 1883 James Warren Childress, II 223 Craig Avenue 02/05/09 02/04/15 1949 Fred L. Swisher 422 Chestnut Mtn. Drive 02/05/09 02/04/15 1950 VACANT 02/04/15 Benjamin Cook (ex-officio member) 311 South Pollard Street n/a n/a n/a (ex-officio member) 311 South Pollard Street n/a n/a n/a PLANNING COMMISSION NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. David R. Jones 806 Olney Road 03/01/07 02/28/15 1897 Robert A. Patterson 1056 Blandford Avenue 01/01/07 12/31/15 1894 Paul R. Mason 731 Ramada Road 09/07/10 06/06/16 1963 William E. Booth 1007 Blandford Avenue 07/20/10 10/31/16 CM-10/16/12 Dawn M. Michelson 225 North Maple Street 11/06/07 12/31/16 CM-12/18/12 2 FINANCE COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Matthew S. Hare 621 Aragona Drive 07/06/10 06/30/14 n/a William W. Nance 1514 Bush Farm Drive 07/06/10 06/30/14 n/a Barry Thompson 311 South Pollard Street n/a n/a n/a Christopher S. Lawrence 311 South Pollard Street n/a n/a n/a PUBLIC SAFETY COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Irvin Douglas Adams, Jr. 1632 Meadows Road 07/03/12 06/30/14 n/a Matthew S. Hare 621 Aragona Drive 07/06/10 06/30/14 n/a Ben Cook 311 South Pollard Street n/a n/a n/a Christopher S. Lawrence 311 South Pollard Street n/a n/a n/a PUBLIC WORKS COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Robert R. Altice 616 Maple Street 07/06/10 06/30/14 n/a Bradley E. Grose 404 Cedar Avenue 07/03/12 06/30/14 n/a Gary W. Woodson 311 South Pollard Street n/a n/a n/a STORMWATER CITIZENS ADVISORY COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. W. Ray Sandifer 912 Colbourne Avenue 09/04 n/a n/a David R. Jones 806 Olney Road 11/03 n/a n/a VACANT n/a 3 CLEAN VALLEY COUNCIL NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Anita McMillan 311 South Pollard Street 02/28/95 n/a n/a COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Carolyn D. Fidler 428 Cedar Avenue 06/08 06/30/11 Hal Mabe 6010 Windcrest Lane, Roanoke, VA 24012 06/08 06/30/11 Stephanie Brown 632 Woods Ave., SW , Roanoke, VA 24016 06/08 06/30/11 Christopher S. Lawrence 311 South Pollard Street n/a n/a GREATER ROANOKE TRANSIT COMPANY NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. City of Salem Representative 12/13/13 ROANOKE REGIONAL PARTNERSHIP NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Bradley E. Grose 311 South Pollard Street 07/06/04 n/a n/a Christopher S. Lawrence 311 South Pollard Street 10/07/08 n/a 1793 ROANOKE VALLEY – ALLEGHANY REGIONAL COMMISSION EXECUTIVE COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Christopher S. Lawrence (Non-elected member) 311 South Pollard Street 07/01/10 06/30/13 1869 Bradley E. Grose (Council member) 311 South Pollard Street 07/01/09 06/30/15 1972 4 ROANOKE VALLEY GREENWAY COMMISSION NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Matthew S. Hare 621 Aragona Drive 07/10/10 06/30/13 1890 Arthur La Roche, III 1453 Wolf Creek Drive 10/02/12 06/30/13 CM-10/02/12 Janet Scheid 1453 Wolf Creek Drive 07/01/09 06/30/15 1973 Karla Turman 311 South Pollard Street n/a n/a n/a Anita J. McMillan 311 South Pollard Street n/a n/a n/a ROANOKE VALLEY METROPOLITAN PLANNING ORGANIZATION (MPO) NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Carolyn D. Fidler 428 Cedar Avenue 07/01/08 06/30/14 1917 Doug Adams 1632 Meadows Road 07/08/08 06/30/14 1918 ROANOKE VALLEY REGIONAL CABLE TV COMMITTEE NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Mary Beth Layman (Member) 1028 Almond Drive 09/01/09 08/31/15 1979 Robert R. Altice (Council Member) 616 Maple Street 07/15/94 n/a n/a Christopher S. Lawrence (Executive Member) 311 South Pollard Street 10/07/08 n/a 1795 ROANOKE VALLEY RESOURCE AUTHORITY NAME ADDRESS INITIAL APPOINTMENT TERM EXPIRES RESOLUTION NO. Christopher S. Lawrence 311 South Pollard Street 12/20/11 12/31/15 1948 AT A CLOSED MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, JUNE 4, 2013, AT 7:00 P.M. IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILIDNG, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. CERTIFICATION THAT A CLOSED MEETING WAS HELD IN CONFORMITY WITH THE CODE OF 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