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HomeMy WebLinkAbout12-03-91December 3, 1991 9029 Minutes of the regular meeting of the Pulaski Town Council held December 3, 1991, at 4:00 p.m. in the Council Chambers in the Municipal Building. There were present: Mayor Gary C. Hancock, presiding Council Members: Charles D. Crispin, J. R. Schrader, Jr. Mary Lou Copenhaver, James M. Neblett, Andrew L. Graham, W. H. Schrader, Jr., Alma H. Holston, Robert N. Glenn Also Present: Frank Terwilliger, Town Attorney Don E. Holycross, Town Manager Robert J. Lyons, Asst. to the Town Manager Ruth A. Harrell, Clerk Visitors: Dee Lindsey and Paul Dellinger, News Media Mrs. Polly Mitchell Mr. and Mrs. Claud Kirkland Mr. Henderson Randolph Mr. Ken McCreary Mr. James E. Aust, Sr. Mr. Marvin Eanes Mrs. Andrew Graham The meeting was called to order by Mayor Hancock. The Pledge of Allegiance was led by Councilman Graham. The Invocation was given by Councilman Neblett. Mayor Hancock welcomed Councilman W. H. (Rocky) Schrader back to Council and the roll call was then taken. Councilwoman Holston so moved that the minutes of the regular meeting of November 19, 1991, be approved as submitted, seconded by Councilman Neblett and carried. TAXICAB Mayor Hancock welcomed visitors and advised that first on agenda HEAR, was the annual taxicab public hearing. Mr. Holycross stated that the hearing was primarily to determine the number of certificates that shall be issued during the next calendar year and to whom those certificates shall be issued. During the calendar year 1991, 22 certificates for the operation of taxicabs were approved. These certificates were issued to Blue & White Cabs 13; Deluxe Cabs 4; and Jim Dandy Cabs 5. The same number of applications has been received for calendar year 1992. A total of 11 cabs were inspected for Blue and White/Deluxe, and two cabs were inspected for Jim Dandy. Mr. Holycross also reported that the Police Chief would submit a 9030 December 3, 1991 report on the character and qualifications of the applicants. Lt. Back stated that taxicabs were inspected and those listed previously passed inspection and were properly licensed. There were no comments from the public regarding the taxicab certificates. Mr. Holycross stated that the code requires that the character and qualifications of the applicants be reviewed and suggested this matter be referred to the Ordinance Committee as he had information to share with Council. An Ordinance Committee meeting will be scheduled. Mr. Eanes, Blue and White Cabs, requested that the Town fix roof o their rental property and also install a street light on the dark side of their lot. Mr. Holycross stated that last year, before any taxicab could be put into operation, it had to be inspected and approved by the Police Department. Water At 4:08 p.m. the public hearing was adjourned. Mrs. Polly Mitchell, 600 Prospect Avenue, spoke against revising the water rates for the enormous water users. She stated the Town would lose revenue and felt the domestic users and smaller commercial users would pick up the tab. Mrs. Mitchell felt the Town was under a heavy load carrying a $4 million dollar bond issue of which $2 million was used for enlarging the filter plant so water could be furnished to new plants coming to Town or increasing present plant consumptions. She also spoke to the water tank issue, Rt.. 11 water line, and cost of these projects. Mrs. Mitchell further questioned the timing of mailing the water bills, and felt there was something wrong when they could not go out the first of the month. Mr. Holycross stated the Treasurer's Department is overloaded at certain times. Mrs. Mitchell also read the amendment to ordinance, 17-2 of the Town Code regarding the Town being the primary source of water and properties are required to connect to the Town water system. Specifically, why the Town allowed Magnox to withdraw water from Peak Creek. Mayor Hancock advised that when our water usage gets to 850 of capacity of our plant the state requires us to expand and upgrade the plant. We had to go to a bond issue to fund the project. Also, Magnox is permitted to take water from the creek by the State Water Control Board. Mr. Holycross reported that Magnox uses approximately 26 million gallons of water per month from the Town. Mr. Holycross also reported that if Magnox builds the sand filter (in-line filter) they will not have to change the raw water source. They also have plans of changing the internal piping within the plant which would allow them to recirculate and reuse much of the water. With these changes, Magnox would not be drawing any more water from the creek than they are today. ^ December 3, 1991 9031 Further discussion on the volume water rates was deferred until Mr. Nicely arrived at meeting. ZONING In hearing from the public, Mr. Ken McCrary advised he had removed a trailer from his property on Newbern Road and he was getting ready to put another trailer in, and he was informed he could not put the trailer in as it had been 60 days since the first trailer was removed. He asked why the people were not notified that awn the property to let them know what they can and cannot do. Mr. Holycross advised that the zoning code adopted in 1987 stated that single mobile homes could exist as non-conforming uses but if a mobile home were moved from the property and not moved back on the property within 60 days, then the non-conforming provision elapsed and they no longer had the authority to move a mobile home back on the property. Mr. Holycross understood the mobile home had been gone from this property for approximately twelve months. We do not have the authority to allow a mobile home to go back on the property. Mayor Hancock suggested this matter be referred to the Ordinance Committee. Mr. McCrary is to be notified of the date the committee will meet. Mr. Holycross stated, that in the Town Attorney's opinion, the Board of Zoning Appeals does not have the authority to grant a special condition in this case. Ordinance can be amended by the Town Council. Mayor Hancock commended Mrs. Elrica Graham for her assistance in organizing volunteers in working for the courthouse rebuilding issue. WATER Mr. Holycross advised that Council had requested staff to do an analysis to determine if volume discount could be justified and if volume discount was granted, what the potential effect this discount would have. If the volume discount was granted, compared to revenue from current rates, the initial deficit would be approximately $43,200. Approximately $38,000 of this would be a credit to Magnox and approximately $4,000 would be a credit to Renfro. They are the only two users that currently use in excess of three million gallons per month on an average basis. The ordinance would apply to any of our customers who would use in excess of three million gallons per month. The $43,000 is offset because we expect to gain approximately $18,000 in new revenue from the construction of the new Renfro Plant and Magnox has also shared with us their plans for increased water consumption. Within the next year, to year and one-half, we anticipate an additional $14,000, with the adjusted rates, at the Magnox Plant. While the potential loss is in the magnitude of $43,200, we are estimating that approximately 532,000 to $33,000 of that will be made up by additional revenue from the new Renfro Plant and from expansion at Magnox. Mr. Holycross stated that if Magnox were to construct their own filtration plant, within the first fiscal year their consumption from the Town would be reduced by 50°s and eventually would be reduced to a level of about 4 million gallons a month from the current 26 million gallons a month. If their consumption were reduced to a 4 million gallons a month level, the potential loss in revenue to the Town would December 3, 1991 9033 WATER, COND. and not a political decision. He recognized that there has to be a rate increase. He suggested that in 1993-94, if we should have to hit our customer base with a massive rate increase, that he would propose that the bottom three tiers be eliminated. If we can go 2-1/2 years and get to F/Y 94-95, you would only delete the bottom two tiers and in the third year, you would only delete the bottom tier. That would give the industries the latitude they need, and gives Council the latitude they need and also tells the citizens that we are trying to take care of the issue. Councilman J. R. Schrader stated he hated to see the consequences of trying to make up the $190,000 or even half of it. Councilwoman Holston stated that a water increase for our customers really bothered her, but after listening to Mr. Nicely, it made her look at it a different way. She was torn as to how she would vote. Regardless of how she would vote, we are faced with a rate increase. Mayor Hancock was glad that Councilman Graham brought his figures to Council as we will have a rate increase. Every jurisdiction in the Commonwealth is looking for increases in water and sewer and our community is no different. In response to Mayor Hancock's inquiry as to whether Magnox would build their filtration system, Mr.Nicely responded that should they get the proposed capital expenditures for 92/93, that we would not see any difference in the level of their consumption. It may increase. They are not looking at any reduction, but they are taking every step possible to conserve and not waste materials. Mr. Holycross stated it had previously been discussed with Council and the analysis that was developed was to look at the cost of producing an incremental amount of water. The cost of producing an incremental 1,000 gallons of water is between 42 cents and 52 cents. That does not mean that we can produce each gallon of water at that rate, but we can produce incremental 1,000 gallons of water at this rate. Also, Mr. Holycross stated that Mr. Graham had commented that the budget, as it was proposed and as it was adopted by Council, shows a deficit of 524,000. Mr. Graham then said that when you add the $43,000 that would be implemented by this volume discount, that means the projected deficit in the Water Fund is $67,000. Mr. Holycross clarified that the $24,000 deficit for this budget year assumed that a volume discount would be approved. If this ordinance is adopted, it has absolutely no effect on this fiscal year's budget because this was discussed with Council prior to the time that the budget was proposed. Further, it was stated that if we lost Magnox as a customer, would we be able to significantly reduce the operation of the water treatment plant. This has been discussed with our Town Engineer and the Chief Plant Operator and the response is that the plant was designed to operate at 16 hours per day. The sludge blanket is so critical to the operation of the plant and is maintained if the plant operates 16 hours per day. If you go below the 16 hours per day, then we will have operational problems at the plant. Based on the information that we have, even if we lose Magnox as a customer, we cannot significantly reduce the labor cost associated with the operation of the plant. 9032 December 3, 1991 WATER, COND. be $193,000. They currently consume in excess of 40% of our water and currently make up in excess of 25% of the revenue for the Town. Mr. Hi Nicely, Operations Manager, Magnox, Inc., addressed Council with the history of their operations since 1985 and the assistance that the Town had given to them in their purchase of the plant. He stated they had tried to keep the Town abreast of what they were doing, and would be presenting a budget in excess of 10 million dollars to their Japanese associates, Mitsui Mining and Smelting. Mr. Nicely further stated that they currently export 65% of their product. He stated that water was one of the three major raw materials that they use. He emphasized that Magnox and he, personally, have always tried to keep Council abreast of everything that they are doing. He stated they had never tried to slip anything under the carpet, go behind Council's back and do anything, or be threatening. Councilman Neblett so moved that reading of Ordinance No. 91-28, Revising Water Rates, be waived, seconded by Councilman Glenn and carried. Councilman Neblett made a motion that Ordinance No. 91-28, Revising Water Rates be adopted, seconded by Councilman W. H. Schrader. Councilman Graham read a statement opposing the rate reduction (copy of which is attached to the permanent file copy of the minutes of this meeting). Councilman Graham had made a survey of the area and the Town sells water cheaper than the other municipalities. He felt this was an irresponsible ordinance and if ordinance passed, we would have to raise water rates. We are selling water at a lower rate than we can produce it. (Correction of Minutes from 12/17/91 - see below) Councilman Crispin also read a statement opposing the revised rate scheduled, and stated that to ask the citizens of the Town to accept a rate increase next year to pay for a rate reduction for the major user of water would not only be a personal affront to every citizen but woul be plain wrong. We owe our homeowners a fair shake and all other users of water the same consideration. Councilman W. H. Schrader stated the volume discount has been established since 1954. Magnox and any other industrial users pay the same for the first 3,000 gallons as any other individual does, on up the scale. It is only when you get into a larger volume, is there a reduction, so they are not buying water cheaper than the individual. We have larger users now and can produce more water. He did not feel it was in the best interest of our residential users to put our revenue base in our water fund at risk in any way. Councilwoman Copenhaver supported the remarks made by Councilman Schrader and felt we had to try to look to the future and what it might mean. Councilman Glenn asked if an increase in water rates was anticipated. Mr. Holycross stated that he felt an increase is inevitable. According to VML, water rates will continue to go up. Councilman Glenn understood the concept of quanity discounts as it was normal in business, and could see this should be a business decision Correction to Minutes. Councilman Graham corrected the minutes December 17, 1991 to read that Council did not discuss thewater rate reduction in our Budget hearing this spring. 9034 December 3, 1991 After further discussion, motion to adopt Ordinance No. 91-28, revising water rates carried on the following recorded vote: ORDINANCE WATER RATES Charles D. Crispin - No Andrew L. Graham - No ADOPTED J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - Aye Mary Lou Copenhaver - Aye Alma H. Holston - Aye James M. Neblett - Aye Robert N. Glenn - Aye At 6:00 p.m., a five mi nutes recess was taken. As no further comments were received from the public, Mayor Hanco called for Council Committee Repo rts. Public Operations Committee Chairman J. R. Schrader had no report. Public & Personnel Relations Chairwoman Copenhaver had no report. Utilities Committee Chairman Graham had no report. Finance Committee RESCUE SQUAD Chairman W. H. Schrader advised that the Finance Committee had met on November 26 and considered a request from the New River Valley Rescue Squad for partial funding of cardiac equipment. Ms. Powers and Mr. Crigger requested $9,000 which would purchase two defibrilators to benefit heart patients. The equipment would advance the current level of service from Basic Life support (BLS} to Advanced Live Support (ALS}. The County has been asked to contribute $5,000 for extrication equipme (jaws of life). The funding for the equipment would have to come from the General Fund Reserve. The committee recommended that up to $7,000 be appropriated from the General Fund Reserve for one-half of the cost of the defibrilators and the extrication equipment. This decision has been forwarded to Stan Crigger and Joe Morgan, and Mr. Morgan advises that the request for the $5,000 is still under review by the Board of Supervisors. They are not sure whether they will take action now or whether they will defer taking action until their budget review period for the next fiscal year. It was recommended that Council make this funding available contingent upon the other half of funding being provided by the County. FINANCE Chairman Schrader stated that the Town Manager presented a report on Revenues and Expenditures through October, 1991. General Fund Revenue has increased by $58,148, although approximately half of the increase is a result of the transfer from the Water Fund. In fiscal year 1990-91, the transfer from the Water Fund occurred at a later date. The General Fund expenditures are $21,555 less than F/Y 1990-91. The Town Manager presented a status update of the Main Street December 3, 1991 9035 account. PEPPERS FERRYChairman Schrader reported that Draper-Aden, the sewer corrosion SEWER consultant, requested an additional $1,200 for engineering analysis of the sampling. During the televising of the line, Draper-Aden would like to have an engineer on-site at an estimated cost of $2,400. Mr. Holycross and Mr. Terwilliger discussed this request and a letter has been sent to Draper-Aden advising them that the $1,200 for the sampling and $2,400 for the on-site supervision were included in their $20,000 not-to-exceed figure for engineering services. Additional payment could not be recommended or authorized. T.V. work is being done this week. A final report should be available in 30 to 45 days. Mr. Holycross stated there is a need to do some additional inspection work on the gravity sewer and we want this to be included as a part of this report. Draper-Aden has been requested to develop a fee for doing this inspection. ORDINANCE COMMITTEE Chairwoman Holston had no report. MAYOR'S REPORT Mayor Hancock had no report. TOWN ATTORNEY'S REPORT Mr. Terwilliger had no report. TOWN MANAGER'S REPORT Mr. Holycross stated that at last meeting the Council directed the preparation of an ordinance that would rezone a portion of Route 11. Using an overhead visual, Mr. Lyons illustrated the property to be rezoned as follows: The New River Oils property would be rezoned to B-2; the Pulaski Medical Services property in its entirety, to a depth of 300 ft. from Rt. 11, would be rezoned to B-2; the triangular piece of property formed by the intersection of Route 11 and Alum Spring Road would be rezoned to B-1; and the English property, at th corner of Route 11 and Pleasant Hill Drive, would be rezoned to R-O. It was also reported that Sherd Hedge would like to leave his property R-2. Mayor Hancock advised that he was in receipt of a letter from Mrs. English requesting that Council consider zoning her property B-2. After Council discussed this rezoning and Mr. Lyons read the motion as made by the Planning Commission, Councilman Crispin made a motion that the area of the game room be limited to 300 ft. frontage, 300 ft. deep, the rest remain as is; the blue area be rezoned to B-1; the NRO Station be rezoned to B-2 and the red area be zoned R-0. Motion seconded by Councilman Graham, but failed on the following recorded vote: ORDINANCE-REZONING ADOPTED Charles D. Crispin - Aye Andrew L. Graham - Aye 9036 December 3, 1991 ORDINANCE, REZONING J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - No Mary Lou Copenhaver - No Alma H. Holston - No James M. Neblett - No Robert N. Glenn - No Councilman J. R. Schrader made a motion that reading of Ordinance No. 91-29 Rezoning Certain Properties Along Rt. 11 be waived, seconded by Councilwoman Holston and carried. Councilwoman Copenhaver made a motion that Ordinance No. 91-29 be adopted seconded by Councilman W. H. Schrader and carried on the following recorded vote: Charles D. Crispin - No Andrew L. Graham - No J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - Aye Mary Lou Copenhaver - Aye Alma H. Holston - Aye James M. Neblett - Aye Robert N. Glenn - Aye r~ COMPREHENSIVE Mr. Holycross reported that before Council was Ordinance No. 91-30 PLAN to adopt the Comprehensive Plan. Public Hearings have been held on the Comprehensive Plan and committee meetings have been held. The minor changes that Council wanted to incorporate into the document have been made. Councilwoman Holston so moved that Ordinance No. 91-30, Adopting the Comprehensive Plan, be adopted, seconded by Councilman Neblett. Mr. Holycross stated that before the Plan is published, staff will ascertain that all maps incorporated are correct. Motion then carried on the following recorded vote: Charles D. Crispin - Aye Andrew L. Graham - Aye J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - Aye Mary Lou Copenhaver - Aye Alma H. Holston - Aye James M. Neblett - Aye Robert N. Glenn - Aye Mr. Holycross reported that a letter had been delivered during the Council meeting from Mr. Patton, Martin Ave., asking permission to cut wood on an alley-way. Mr.. Holycross was not prepared to give Council a recommendation and if this is on Town property, we could not give permission to one particular individual to cut wood. He will look into this request. Mayor Hancock reminded Council of the luncheon with Senator Trumbo scheduled for December 5 and the Council/Staff breakfast scheduled for December 7. Councilman Crispin stated that he would not be attending the next two meetings of the Town Council. At 6:40 p.m. Councilman Neblett made a motion that Council adjourn, seconded by Councilman W. H. Schrader and carried. APPROVED: Attest.: G`~~ ~~'U~ Mayor ~Glerk of Council