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HomeMy WebLinkAbout07-02-191 1 Minutes of the Pulaski Town Council meeting held at 7:00 p.m., July 2, 2019 in the Council Chambers of the Town Municipal Building at 42 First Street, N.W. In attendance were: Mayor: David L. Clark, presiding Councilmen Present: G. Tyler Clontz; Brooks R. Dawson; Gregory C. East; Joseph K. Goodman; Lane R. Penn; James A. Radcliffe Administration: Shawn M. Utt, Town Manager Nichole L. Hair, Deputy Town Manager Legal Counsel: Spencer A. Rygas, Town Attorney Staff Gary Jennings, Chief Operator Chief Robbie Kiser, P.F.D. Rebecca Leeper, Finance Director Bill Pedigo, Town Engineer David Quesenberry, Clerk of Council Chief Gary Roche, P.P.D. Rick Tawney, Engineering Technician Others Present: Mark McConnel Richard Meadows Stevie Steele 1. Call to Order Mayor Clark called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance The Pledge of Allegiance was led by Councilman Dawson, 3. Invocation The Invocation was given by Councilman East. 4. Roll Call After the Invocation, the roll was called. Present were Mayor Clark, Mr. Clontz, Mr. Dawson, Mr. East, Mr. Goodman, Mr. Penn and Mr. Radcliffe. All members of Council were present which established a quorum to conduct business. 5. Modification of the Agenda Mayor Clark asked for a motion to modify the agenda to add Item 12c. Special Exception Request, Pulaski Medical to the agenda. Mr. Goodman moved to modify the agenda as requested. The motion was seconded by Mr. Clontz and approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James A. Radcliffe -Aye 6. Recognition of Guests and Visitors Mayor Clark welcomed members of the audience for attending and expressed his appreciation for their attendance. Council then moved on to the introduction of new staff. Page 1 of 8/July 2, 2019 7. Presentations a. Introduction of New Staff Mr. Pedigo introduced Mr. Rick Tawney, the new Engineering Technician to Council. Mr. Tawney previously served for fifteen years as the Town Engineer for the Town of Pearisburg. Mr. Pedigo said the Town was fortunate to have Mr. Tawney on staff. After his introduction, Mr. Tawney shook hands with each individual Council member. Next, Council considered the Consent Agenda. 8. Public Hearings No public hearings were scheduled for this meeting 9. Public Comment Period No comments were received from the public. 10. Consent Agenda a. Consideration of the June 4, 2019, Council Meeting Minutes Mayor Clark asked for a motion to approve the minutes of June 4, 2019. Mr. Clontz moved to approve the meeting minutes as requested. The motion was seconded by Mr. Radcliffe and approved by unanimous voice vote. Next item for review was the Project Summary Sheet. 11. Proiect Updates a. Project Summary Sheet Mr. Utt said he would be glad to answer any questions Council may have. As an update, Mr. Utt told Council that the bids for first phase of the CDBG Downtown Project had been had been advertised. He expected that the Case Knife/Kersey Bottom project would be removed from the project list soon. The final compliance review had been done. A few items had to be secured for the project files which had been addressed. He added this should place 'L'he Town at 100% completion. Mr. Goodman noted that the summary said the skate park paperwork would be completed by June and asked if that had been completed. Mr. Utt responded that the Town had found out rather late, that the DCR (Dept. of Conservation and Recreation) funds for this year were earmarked for trails only. Another recreation fund round would open up in February. He added that the Town would continue to proceed forward phasing the project and expending the brownfield funds by the end of the calendar year. Mr. Goodman asked what the Cemetery Trustees decided. Mr. Pedigo reported that the fencing and the landscaping plan for both Oakwood and Pinehurst were approved, along with the purchase of a new lawnmower. Mr. Dawson asked about future work at the Dora Highway Convenience Center. Mr. Utt responded that Mr. Linkous felt there would be some construction this winter or next spring. In the meantime he had started the RFP process to hire a design engineer. The biggest issues for the Town, Mr. Utt ventured was what to do with the existing building and its potential method of demolition which could be done in-house. Mr. Dawson asked when the center might be open. Mr. Utt responded next summer. Mr. Dawson requested that the drug task force be added to the Project Summary Sheet to allow Council to keep up with the operation of and developments involving of the task force. Mr. Utt said it might be slow starting off, but that staff could work with Chief Roche. Originally, Chief Roche said, the information was slated to be on the monthly report. Mr. Goodman said the report was to be a longer version that what was seen in the project summary, which Council would receive once a month. Mr. Dawson commented that the issue would be treated no differently as other items on the Project Summary Sheet and would allow Council to ask questions if it desired to. Page 2 of 8/July 2, 2019 Mr. Utt suggested that the boundary adjustment be added to the project review. Mayor Clark noted that the Town did receive a $500,000 grant for the James Hardie project. Mr. Utt added that the Town was working to finalize the grant application for the million dollar Economic Development Administration (EDA) grant. A public hearing would also be needed for the $700,000 CDBG probably at the August legislative meeting (August 6th). The DEQ fund application would be due in April 2020. Hopefully he said, the grant funding could be "pieced together" by next spring for the $2.6 million project. Mr. Goodman asked about the Calfee School project. Mr. Utt said that the nominating committee, of which Mr. Penn was a member, was working to appoint the initial Board of Directors. Work was still progressing with STNP's attorneys on transferring the ownership of the school. It appeared that ownership, with some liability closures, would be transferred through the quit claim deed process. It would probably take another 60 days to resolve. Mr. Utt also said he had taken the Calfee School off of the tax sale list to avoid the potential of losing control of the property since developments regarding the issue were positive. Mr. Rygas reported that a quit claim deed had been prepared and that STNP had expressed a willingness to turn over the property to the Town's Redevelopment and Housing Authority. Work was also progressing on a hold harmless agreement which STNP desired to sign. Without the hold harmless agreement, Mr. Rygas ventured that STNP would not quit claim the Calfee School property to the Town. Mr. Rygas explained that a quit claim deed would only give to the Town what STNP could grant. If there were no other ownership issues involving STNP or the heirs, there would not be an aggrieved party. During conversations with Michael Reis, a contact with STNP's attorney, Mr. Rygas emphasized that it was critical for the Town to get a certificate of partial satisfaction on the deed of trust, which might be a complication. If a quit claim deed was accepted without a certificate of partial satisfaction, the Town might end up acquiring nothing, if STNP had no interest, or another party could come forward with a lien against the property. Mr. Utt noted that the process was moving forward, albeit slowly. Mr. Rygas said there was no point for the Town to receive the deed of trust without the release. He said the Town was encouraging STNP to sign both documents. Council next moved on to "Old Business" regarding appointments to Pepper's Ferry and discussion of the Pulaski Medical special exception request. 12. Old Business a. Resolution 2019-20, Alternate Appointment -Completion of Term, PRWRTA Mr. Utt said with respect to appointments to Pepper's Ferry from the June meeting, staff decided to do two resolutions. The first was to appoint Mr. Goodman to serve as the alternate for the remainder of Mr. Hurt's term ending 12/31/19, which Resolution 2019-20 addressed. On a call for a motion from Mayor Clark, Mr. Radcliffe moved to accept Resolution 2019-20. The motion was seconded by Mr. Dawson and approved on the following roll call vote: Lane R. Penn -Abstain Joseph K. Goodman -Abstain Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James A. Radcliffe -Aye b. Resolution 2019-21, Appointment of Representative and Alternate -Full Term, PFWRTA Mr. Utt said the second resolution (Resolution 2019-21) was for the full four year term for both the alternate and regular board positions which followed the action of Council from the June meeting. Following Mayor Clark's call for a motion, Mr. Radcliffe moved to accept Resolution 2019-21. The motion was seconded by Mr. Dawson and approved on the following roll call vote: Page 3 of 8/July 2, 2019 Lane R. Penn -Aye Joseph K. Goodman -Abstain Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James A. Radcliffe -Aye c. Special Exception Request, Pulaski Medical Mr. Utt added that the minutes indicated that Council postponed discussion of the Pulaski Medical's special exception request until July 2nd. At this point, staff was requesting Council to postpone discussion until July 16th Mr. Goodman moved to postpone discussion until July 16th. The motion was seconded by Mr. Clontz and approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James R. Radcliffe -Aye Council next received an update on the Water Plant's filter damage. 13. New Business a. Update on Water Filter Plant Damage Mr. Pedigo introduced Council to Mr. Gary Jennings, Chief Operator at the Filter Plant and Mr. Stevie Steele, consultant from CHA on the Brookmont Project. Mr. Pedigo added that the Town would try to enter into a contract with CHA on an emergency basis for a design. Mr. Pedigo reported that on June 16th, the Number 4 filter drain exploded. The plant had four filters for water production. He explained that filters 1, 2, and 3 were the original cast in place monolithic bottom filters poured as one piece. The fourth filter was an additional filter added in the 1960's -1970's for more capacity and was a modular block unit. During tha backwash process, the filter gave way and exploded, resulting in it being removed from service. As a result, Mr. Pedigo said water production was reduced 25%, requiring plant personnel to work over to process more water through the three remaining filters. Mr. Pedigo said things were fine so far, with the only issue being if something else happened, like a major water break or a fire. Mr. Goodman asked if extended hours were required to make up production. Mr. Pedigo said that the 25% runtime had to be made up. Things he added were going well and that the three filters had been running for a week. Mr. Penn asked how long repairs would take. Mr. Pedigo replied if work began mid -month (July) repairs could be completed in mid-October. The interior components of the filter would have to be removed. Mr. Pedigo then explained how the filter was constructed and operated. Mr. Utt said he assumed some permitting would be required from the Health Department. Mr. Pedigo replied there would be construction permits and design review. Mr. Utt said that during the last plant upgrade three years ago, the plant operated on three filters for eight to ten months while repairs were done. Mr. Jennings said that was done with the understanding when the filters would be back in service. In this case, the damaged filter he added could not be repaired. Mr. Goodman asked if it would be better to purchase water from the County than have employees work the extra hours or at least have that as an extra option. Mr. Pedigo said that purchasing water from the County was an option and was there to use if it was needed. Mr. Utt said he wanted to keep the employees working but both could be done if something happened. Mr. Goodman said he was thinking about the toll on the workers from the extra hours over three months. Mr. Jennings said the plant staff was happy to do it. He added he had contacted the County the day after the incident informed them of the situation. Mr. Pedigo said that water could be obtained from the County but it was more complicated than turning a valve. Nevertheless, the option was there. Page 4 of 8/July 2, 2019 Mayor Clark asked if anything had been heard from the insurance. Mr. Pedigo replied they were coming to the plant the following morning. Mr. Utt said he was hopeful regarding the insurance, since it was a structural issue and the Town had all the maintenance records. Mr. Pedigo said the initial estimate for repairs was $180,000 and included removing the existing bottom and installing a pre -cast bottom. Mr. Steele said CHA Consultants would look at that option as well as a couple of others. Mr. Pedigo noted that there were different technologies available for consideration. Mr. Steele said there would be communication with the Health Department to expedite the review and approval process which might be done in such a manner to get approval for construction, but not to allow use of the facility until their review was complete. This would help to circumvent the slow permitting process. Mr. Goodman asked if quotes might be ready for Council's action at the next meeting. Mr. Pedigo replied hopefully. Concerning a quote for emergency design from CHA, Mr. Utt requested that Council authorize him to execute a contract up to $30,000 with CHA Consultants for emergency design services related to the Filter Plant Number 4 Filter. Mr. Goodman made the motion as requested by Mr. Utt. The motion was seconded by Mr. East and approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James R. Radcliffe -Aye Following a brief discussion on back up plans, contact with local industries and monitoring by Filter Plant staff of the system, Council moved on to consider the VDH Asset Management Plan. b. Virginia Department of Health Asset Management Plan Mr. Steele of CHA Consulting reviewed the asset management plan for Council. He reported that CHA, along with assistance from the Town staff, conducted an evaluation of every piece of equipment that was critical to deliver water to Town customers. In working with the Filter Plant staff, Mr. Steele noted that their review documented manufacturing numbers, run times, replacement costs, and a list of items based on the criticality of a particular part. Criticality was determined by: (1) item failure causing water production to cease; and, (2) a functional but depreciated item that could fail at any time. Mr. Steele displayed the prepared charts, noting that it could be used as a CIP planning tool for capital item purchases and to determine orjustify capital needs and the utility rates needed to support it. Mr. Steele noted that the Health Department required borrowers to do the asset management plan exercise to move localities towards evaluating and maintaining their facilities so to discourage them from repeated borrowing. The asset list he continued, would change every year as items were reclassified by estimated life or were removed from the list. In addition it could also be used in drafting a CIP by assisting in identifying those items that gave the most return on investment. Mr. Steele then asked if Council had any questions. Mr. Utt said the Town intended to use this same approach in capturing all of the operations of the Town, which would be discussed at the July work session. Mr. Goodman said that the first item of discussion this budget year involved putting more money into reserve funds for the water and sewer system. Mr. Utt responded that the Town had been raising utility rates modestly for the last several years with the goal to do "pay as you go" instead of loans for projects. The Town was putting almost $200,000 into the water system for reserves, repairs, and tanks which appeared to be working. The asset list could show, as projects were checked off, exactly what funds should be spent on at least on the water side. Mr. Steele told Council that documentation would have to be submitted to the Health Department which included: the asset listing; details of the water system operation; information on the critical elements of the system; and the Town's plans to proceed forward. Once the documentation was received and reviewed by the Virginia Department of Health (VDH), VDH would sign off on the document and the Town would receive Page 5 of 8/July 2, 2019 its $15,000 reimbursement and a document that could be used as a roadmap to move forward. Mr. Steele asked if there were any questions about the process. Mr. Dawson asked about the condition of the Highland tank. Mr. Pedigo responded that it was in bad shape. Mr. Steele offered that if the tank went down, there was no way to serve the area other than pressurizing the lines. Council then moved on to consider revisions to the Brookmont Water Project. c. Revisions to the Virginia Department of Health Brookmont Water Project Mr. Steele gave Council an overview of 'he Brookmont project which would satisfy the Health Department consent order; deal with the HAA5 byproducts in the County portion of the line; and eliminate four tanks and four pump stations. The four tanks would be replaced by a single tank at the proper location (Loving Field) and elevation that would serve all of the area. Mr. Steele said the new Loving Field tank would replace the Veteran's Hill tank, the Pleasant Hill tank and both Needmore tanks. Mr. Steele, using the map of the proposed service area, discussed the service concerns and service options for the area in light of the need for water. He emphasized the need to "loop" the water system to satisfy the Health Department consent order for the HAAS. Mr. Steele next reviewed the expenditures for the revised project. He emphasized that any new funding would be split 80% loan -20% grant because that was the original percentage that would follow through the project. Mr. Penn questioned why the Town should spend $1.5 million, yet not own the line. Mr. Steele replied that the point was valid while Mr. Utt said the Town had to spend the money to get back into compliance with the Health Department. The question, as he saw it, was how the situation could be turned around to save money in operations and CIP projects. Mr. Penn asked why the Town had to spend the funds. Mr. Utt ventured that in the larger picture, he did not expect to spend that much. He added that he felt the Town should approach PSA, since they benefit, but that those conversations had yet to be made. Pointing out the need by PSA to build a tank, Mr. Utt said that Town and County could share the cost since both would benefit. Mr. Utt then explained how the funding might be broken down between the Town and County as well as what would be the percentages of loans and grants under different funding arrangements. Referring to a budget update addendum in the packet, Mr. Steele said the original budget for the Brookmont Project was $1.797 million; the revised budget was $2.985 million, and the resulting increase between the budgets was $1.188 million. The overall goal for the revised project was create a leaner more efficient system in addition to accomplishing things that needed to happen in the water system anyway. Mr. Steel said that annual debt service for the original project concept was $82,815 and that the revised project debt service was $144, 023, an increase of $61,209. He pointed out that if only the original project was done and money had to be borrowed to do asset management work that would result in additional debt service of $68,958. He felt the project, while dealing with the water issues, also took advantage of the 80% loan/20% grant financing. He encouraged the Town to "knock off the big ticket items" so to have a more manageable system. Mr. Steele added that he had not done any evaluations as yet on rate impact. Mr. Utt said he had done some work on the matter. For the new fiscal year, the Town had approximately $45,000 surplus in the Water Fund. Adding that amount to electrical savings for the pump stations and maintenance costs on the four tanks, he determined that under the current rate structure there would be no increases necessary. However, he did recommend remaining with the increases as proposed by Davenport of 4% per year (one year remaining). This was done under the assumption that the Town would pay for everything. He noted some conversations with the County had taken place and would take place. Mr. Utt said he did not believe the numbers would be as high as indicated for the Town, but felt the worst case scenario should be planned for. Page 6 of 8/July 2, 2019 Mr. Penn said he found it hard to believe that four tanks and three pump stations could be taken out and replaced by one tank and one pump station and still provide the same volume and service. Mr. Steele said the current system did not have near enough usage in the day to justify that amount of volume. Mr. Utt noting that the County system could feed the Town, asked if the improvements would allow the Town to provide water to the County. Mr. Steele replied that it could, which Mr. Utt felt would provide another incentive for the County to participate. Mr. Radcliffe asked that if the current system was not needed, since the factories had closed, would the new system as described accommodate a new factory. Mr. Steele replied that if a factory came in and was a massive water user, now would be the time to let him know from a planning standpoint where those industries would be so he could run hydraulic models to determine usage and pressure in the event of large flows to an industry. After discussion on various scenario for use and service provision, Mr. Utt sought consensus from Council concerning continuing the updated water project. He added that he would begin discussions with the County the following day. Members of Council supported continuing the effort. There being no further discussion, Council moved on to amending the engineering agreement with CHA Consultants. d. Amendment to Engineering Agreement-CHA Consultants. Mr. Utt told Council that in January, Council approved a $25,000 contract to allow CHA to begin work. Now that pilot tests were set to begin it would require a contract amendment increasing the contract amount by $72,500. Mr. Utt said he was seeking authorization to execute the document to keep the Brookmont Project going. Mr. Goodman moved to authorize the Town Manager to execute the contract with CHA increasing the contract amount an additional $72,500. Mr. East seconded the motion which was approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James R. Radcliffe -Aye Council next moved to the Closed Session. 14. Closed Session Mayor Clark then requested a motion to enter Closed Session for 3 items as follows: one item under Virginia Code 2.2-3711 (A) 1 a personnel matter regarding completion of the Town Manager's evaluation; one item under Virginia Code 2.2-3711 (A) 3, discussion concerning the acquisition of real property or disposition of publicly held real property concerning a Washington Avenue property; and one item under Va. Code 2.2-3711 (A) 8, consultation with legal counsel concerning a UDAG loan. Mr. Goodman moved to enter Closed Session for the three items. The motion was seconded by Mr. Clontz and approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James A. Radcliffe -Aye Council entered Closed Session at 8:15 p.m. and returned from Closed Session at 10:17 p.m. Mayor Clark asked for a certification motion that Council only discussed those 3 items for which it went into Closed Session; one item under Virginia Code 2.2-3711 (A) 1 a personnel matter regarding completion of the Town Manager's evaluation; one item under Virginia Code 2.2-3711 (A) 3, discussion concerning the acquisition of real property or disposition of publicly held real property concerning a Washington Avenue Page 7 of 8/July 2, 2019 property; and one item under Va. Code 2.2-3711 (A) 8, consultation with legal counsel concerning a UDAG loan. Mr. Goodman moved to certify the closed session. The motion was seconded by Mr. Penn and approved on the following roll call vote: Lane R. Penn -Aye Joseph K. Goodman -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye James A. Radcliffe -Aye 15. Reminder of Future Council Meetings and Adjournment. Mayor Clark noted there would be a Council Work Session on July 16'h. There being no further business, Mayor Clark requested a motion to adjourn. The motion to adjourn was made by Mr. Goodman, seconded by Mr. Clontz and approved by the unanimous voice vote of Council at 10:20 p.m. C Approv 9 avid L. Clark Mayor ATTEST: David N. Quesenberry/ Clerk of Council 1 11 Page 8 of 8/July 2, 2019