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HomeMy WebLinkAbout5-19-2009 minutesMinutes of the Council Work Session held May 19, 2009 at 5:00 p.m. at the Senior Center. There were present: Jeffrey S. Worrell, Mayor Council: David L. Clark, Larry G. Clevinger II, H. M. Kidd, Robert A. Bopp, Morgan Welker, Joel B. Burchett, Jr. Staff: John J. Hawley, Town Manager David Warburton, Town Attorney David Quesenberry, Asst. to the Town Manager Dave Hart, Parks and Facilities Gary Roche, Police Chief Sherry Boyd, Finance Director John White, Economic Development Director Bill Webb, Fire Chief Bill Pedigo, Town Engineer Patricia Cruise, Clerk of Council Others: Ron Hall Shawn Utt Joseph Goodman Mike Williams, Press Melinda Williams, Press Mayor Worrell called the meeting to order at 5:00 p.m. Councilman Clark moved to add 8c funding request support under Public Operations, and item 10 b, contract agreement with K. W. Poore and Associates under Finance to the agenda. The motion was seconded by Councilman Kidd and carried on the following recorded vote: David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye Councilman Clevinger moved to adopt the Consent Agenda consisting of the minutes of April 21 and Apri128, 2009 Council meetings. Councilman Kidd seconded the motion and so carried on voice vote. Mayor Worrell moved on to Public Operations. The first item was Silcox property. Mr. Hawley advised that he was contacted by the Silcox estate offering to donate to the Town or the PR&HA a piece of property adjoining Peak Creek and the railroad tracks as you enter Loftier Bottom. He advised that he forwarded the information about the property to the PR&HA and had not had a response from them. Councilman Welker advised that he attended the PR&HA meeting and that they were interested in the property as long as the lot was buildable and a building permit could be obtained. Following discussion, Councilman Welker moved to direct staff to ask the PR&HA to work with the Silcox estate to transfer the property and Town staff to provide assistance if needed. The motion was seconded by Councilman Clark and carried on the following recorded vote: May 19, 2009/Page 1 of 7 David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye Mayor Worrell moved on to a report on the Brockmeyer train set agreement. Mr. Hawley advised that he had been contacted regarding the agreement for the Brockmeyer train set and some changes to the draft agreement were being requested by the Brockmeyers. He asked the Town Attorney to contact the Brockmeyer attorney to discuss the requests. The Brockmeyers wanted wording that included the train set not be moved until it could be moved directly into the museum and if there was not a museum, then the agreement was void. Mr. Warburton advised that the agreement was redrafted to say that lithe Town shall display the layout only in the public museum located within the Town" and lithe Town may move the layout only once from Dr. Brockmeyers home to the designated museum". The document was sent to the Brockmeyers attorney, who reviewed and called the Town Attorney to say that it looked good to him, but that he would meet with the Brockmeyers. The remainder of the document stated that the train set was loaned to the Town so long as the Town pays the Brockmeyers $10, takes responsibility for any damage to the Brockmeyer home removing it and that it is placed one time in the museum and cover it with plexiglass and keep a museum employee or volunteer present when others are in the room with the train set. Discussion ensued regarding holding a public signing of the agreement and a groundbreaking ceremony for the new museum in early June. Mr. Warburton pointed out that there may be some cost, because there would have to be an insurance appraisal at some point before the Town takes possession. This is not covered in the contract. Next, Mayor Worrell advised that there had been some discussion recently regarding the artifacts from the Museum that were in storage. He felt that some guidelines needed to be established regarding what artifacts were salvageable and should be kept and which artifacts should not be kept. He wished to establish an artifacts committee that would be responsible for that and for accepting any new artifacts. Draft guidelines were being drawn up and would be reviewed by Council. Mr. Hawley added that Mrs. Kirkner had requested that Councilman Clevinger become a member of the Museum Committee as Council representative. Councilman Clevinger responded that he'd spoken with Mrs. Kirkner and was willing to serve on the Committee. Mayor Worrell moved on to Funding Request. Mr. Hawley advised of the receipt of a funding request for the Randolph Hospital renovation project. He explained that the proposal was to renovate a portion of the hospital into apartment units. The back building would be the focus of the renovation. The renovation would yield 25 apartment units. He advised that the 'request was for the Town to provide as much financial assistance to this project as possible. Following discussion, Councilman Clark moved to direct staff to bring the incentives previously send to the IDA for review, back to Council for adoption seconded by Councilman Kidd. Following discussion, Councilman Clark withdrew his motion and Councilman Kidd withdrew his second May 19, 2009/Page 2 of 7 Councilman Welker moved to grant the same incentives that were previously extended to Mr. East on 72 Third Street. The motion was seconded by Councilman Clark and carried on the following recorded vote: David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye Mayor Worrell moved on to Legislative. The first item was eligible decals. Mayor Worrell advised that Council directed staff to bring back information from the state code regarding who was eligible for free decals. A summary of those rules were included in the packet. He added that Council's intent had been to include paid firemen, police officers and emergency medical technicians. Following discussion, he asked if the consensus of Council was to extend the free decals to salaried firemen, police officers and emergency medical technicians. Councilman Welker suggested adding items 13 through 17 from the state code. Following discussion, staff was directed to draw up an Ordinance providing free decals to those mentioned in items 4 through 7, 9 and 13 through 17 of the state code and bring it back to Council. The next item on the agenda was HBAA & IDA. Mr. Hawley advised that a memo had been included in the packet with suggestions regarding appointments to the Housing Board of Adjustment and Appeals and to the Industrial Development Authority. Following discussion, Councilman Bopp moved to appoint to the Housing Board of Adjustment and Appeals: Jim Chitwood, reappointment for the realtor seat for a four year term ending June 16, 2013. Jamie Radcliffe, reappointment for the citizen seat for a four year term ending June 16, 2013. Bill Warden, appointment for the contractor's seat for three years ending June 16, 2012. The motion was seconded by Councilman Kidd and carried on the following recorded vote: David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye Next, Council discussed appointments to the Industrial Development Authority. Councilman Burchett moved to appoint the following to the Industrial Development Authority: Mike Waller to complete the unexpired portion of the term ending September 2, 2012 and Rev. Mike Coleman to complete the unexpired portion of the term ending August 21, 2010. The motion was seconded by Councilman Clark and carried on the following recorded vote: May 19, 2009/Page 3 of 7 David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye Mayor Worrell moved on to Finance. The first item was Resolution 2009-07, Moral Obligation Regarding The New River Valley Development Corporation. Mr. Hawley advised that a draft Resolution had been included in the Council packet, fulfilling Council's direction. The Resolution called for a moral obligation of one seventh of one half of the total amount of the loan or $184,450, whichever is less. Mr. White advised that the Chairman of the New River Valley Development Corporation was preparing a list of businesses that began at the New River Valley Development Corporation and subsequently settled in Pulaski County. Additionally, he mentioned one company that he remembered, called Brontech originally and now called SubMicron Technologoies. The company was looking for a building in the Town. of Pulaski. Councilman Welker inquired who was participating in the moral obligation? Mr. White advised that the Town of Christiansburg agreed to morally obligate $350,000. Pulaski County had agreed to morally obligate one half of the total debt. No one else had stepped forward to date. He added that the Development Corporation met and adopted a Resolution that indicated that those localities that stood up for the moral obligation would achieve a proportionate share in the management of the Development Corporation. Councilman Bopp inquired how that would work? Mr. White advised that the entities who take responsibility for management would be those who participated in the moral obligation, in proportion to the percent that they morally obligated. Councilman Burchett commented that it sounded to him like "someone would get a folder slapped on their desk. More work. More commitment. More cost to the Town". Mayor Worrell commented that he was not happy that the Development Corporation and the Competitiveness Center have gotten themselves into this situation, but he thought it would be a mistake for the Town to do nothing and possibly let this fail. He felt the Competitiveness Center was an asset to this are, and anything that was good for this area was good for everyone. He added that if the County was willing to step up and take on half of this debt refinancing, then he felt the least the Town could do is take on one seventh of the remaining half. Councilman Burchett respectfully disagreed with the Mayor. He commented that no one had given him any good, substantial reason why the Town should support it. No machinery and tools tax, none of the businesses have located in Town, and he was not aware of a plan to restructure and remanage. He stated "they are failing now and blaming the economy". He saw no compelling reason to support it at all. Mr. Hawley interjected that the Development Corporation was formed in the mid 80's. At that time there was very little economic development anywhere in the New River Valley. He did not think that any government had economic development departments then and he felt that was one reason the Development Corporation was begun. May 19, 2009/Page 4 of 7 Councilman Burchett commented that perhaps it has outlived its usefulness. Mayor Worrell advised that the success rate for small businesses in the Competitiveness Center was 80 percent. The failure rate for small businesses that do not start in the incubator is 80 percent. Councilman Welker commented that he felt the Town should participate in the moral obligation. He added that "they've made it this far and we're in a horrible recession". They seem to be confident that if they can get this refinancing, they will be okay. "If they'd be okay with the way the current economy is, that would indicate to me when things start to turn around, that they should be doing quite a bit better than they have been." He added that he sees both sides. He didn't feel that we get direct benefit, but he "felt it would be worth it for the good will and spirit of cooperation -that maybe we should go on and do this." Councilman Burchett inquired what would happen if the Development Corporation did not get enough participation in the moral obligation? Mr. Hawley advised that Carter Bank would have to decide if the support that they had was enough to go forward with the loan. Mr. White added that if the loan agreement fell through, there was a payment due at the end of June to the National Bank of Blacksburg. The Directors would need to raise approximately twenty thousand dollars to make that payment and it was hoped that other financial institutions would step up at that point. Councilman Bopp inquired how the repayment would work if they defaulted? Mr. White responded that was difficult to answer because it would depend upon the nature of what the default would be, other than to say the Town would have one fourteenth of the payment. Councilman Bopp stated, "assuming the worst did happen and they defaulted and we were able to pay back this $184,450". What would we have bought? Mr. White advised that as that payment was made, we would have small collateral in the building were it to be sold. Extensive discussion ensued regarding the nature of the share in the management of the Development Corporation if the Town participated in the moral obligation. Councilman. Kidd commented that he felt that the Development Corporation was a great thing for business as a whole and was in favor of the Resolution. Councilman Clark commented that the Town had worked so hard at joint efforts between the Town and the County and the County has opted to stand up for half of it. From that standpoint of our relationship with the County, he was in favor of the Resolution. Councilman Burchett commented that the Town is part of the County and we are already represented by them in this venture. Councilman Clevinger commented that it was a 2.6 million dollar loan and a 4.2 million dollar facility. Even if it had to be sold at a discount, he did not feel the Town would be on the hook for the money. Councilman Burchett reiterated that he felt it "had run its course. It's underutilized, mismanaged and it's in a bad spot financially". He advised that he'd heard nothing to make him want to support it. May 19, 2009/Page 5 of 7 RESOLUTION 2009-07 A RESOLUTION OF MORAL OBLIGATION REGARDING THE NEW RIVER VALLEY DEVELOPMENT CORPORATION WHEREAS, the Town Council of the Town of Pulaski, Virginia desires to assist in the development of new businesses to strengthen the local economy, and; WHEREAS, the New River Valley Development Corporation has obtained favorable terms and conditions regarding a loan from Carter Bank to continue providing services and support offered by the corporation to new businesses seeking to begin operations in the New River Valley; NOW THEREFORE be it RESOLVED by the Town Council of the Town of Pulaski, Virginia sitting in regular session this 19th day of May 2009, that the Town agrees to provide a share of a moral obligation for the outstanding principal of the proposed Carter Bank loan to the New River Valley Development Corporation. FURTHER that such share of a moral obligation for the outstanding principal of the proposed loan from Carter Bank shall not exceed one-seventh of one half of the total amount of the loan or $184,450 whichever is less, and shall be modified as a result of the liquidation of the bank's collateral. BE IT FURTHER RESOLVED that the Town of Pulaski understands that the moral obligation shall be subject to appropriation beyond the current fiscal year and does hereby recommend to its successors that this agreement be kept in force during the term of the loan. The Moral Obligation, secured by a second deed of trust on the New River Valley Competitiveness Center, shall likewise be shared. This resolution is effective upon adoption and is hereby adopted this 19th day of May 2009 by the duly recorded vote of the Town Council of the Town of Pulaski, Virginia as follows: David L. Clark -Aye Joel B. Burchett, Jr. - No Larry G. Clevinger, II -Aye Robert A. Bopp - No H.M. Kidd -Aye Morgan P. Welker -Aye ATTEST: Patricia Cruise, Clerk of Council THE TOWN OF PULASKI, VIRGINIA BY: e rey S. orrell, Mayor Councilman Clevinger moved to adopt Resolution 2009-07, A Resolution of Moral Obligation Regarding The New River Valley Development Corporation. The motion was seconded by Councilman Welker and carried on the following recorded vote: David L. Clark -Aye Robert A. Bopp - No Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. - No Mayor Worrell moved on to contract with K. W. Poore. Mr. Hawley advised that the Town submitted a grant for the southeast neighborhood revitalization. K. W. Poore prepared the grant and submitted it. This contract would be for interim measures from the submission of the grant to the award of the grant. Following discussion, Councilman Clark moved to authorize the Town Manager to execute the contract with K. W. Poore, seconded by Councilman Kidd and carried on the following recorded vote: David L. Clark -Aye Robert A. Bopp - No Larry G. Clevinger -Aye Morgan Welker -Abstain H. M. Kidd -Aye Joel B. Burchett, Jr. -Abstain 1 Mayor Worrell moved on to Round Table Discussion. Councilman Bopp inquired why Gatewood staff locks the gate to the campground at eight p.m.? Mr. Hart responded "so that no one comes in there after hours and drives through and causes trouble". Councilman Bopp inquired if there was a was to easily contact the caretaker if there was an emergency? Mr. Hart responded that they are supposed to be notified when they check in of the procedure. Councilman Burchett inquired whether the Town had any liability issues with the gate being locked, from an emergency standpoint.... if people needed to get out quickly. Mr. Hart responded that it was possible. He added that an insurance representative had just finished a review for safety issues and it was possible that would be on the list of issues. Councilman Burchett inquired whether the gate is locked leading to the fishing area where the boats are rented? Mr. Hart responded no. Some people rent a boat and bring it back late at night. At 6:10 p.m., Councilman Burchett moved to enter into Closed Session under Virginia Code 2.2-3711 (A- 5), Discussion of a prospective business or industry. The motion was seconded by Councilman Welker and carried on the following recorded vote: David L. Clark -Aye Larry G. Clevinger -Aye H. M. Kidd -Aye Robert A. Bopp -Aye Morgan Welker -Aye Joel B. Burchett, Jr. -Aye At 6:30 p.m., Council returned from Closed Session and adopted the Certification Resolution for the Closed Session on motion by Councilman Clark, seconded by Councilman Kidd and carried on the May 19, 2009/Page 6 of 7 following recorded vote: David L. Clark -Aye Robert A. Bopp -Aye Larry G. Clevinger -Aye Morgan Welker -Aye H. M. Kidd -Aye Joel B. Burchett, Jr. -Aye There being no further business, the meeting adjourned on motion by Councilman Clark, seconded by Councilman Kidd and carried on voice vote. Approved: Worrell, Mayor 1 May 19, 2009/Page 7 of 7