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HomeMy WebLinkAbout05-04-21Minutes of the Pulaski Town Council Meeting held at 6:15 p.m. Tuesday, May 4, 2021 in the Council Chambers of the Municipal Building at 42 First Street, N.W. The meeting also featured a general live cast to the public via the Town's Facebook page and a participant joining the proceedings by Zoom. In attendance were: Mayor: Shannon Collins, presiding Councilmen Present: G. Tyler Clontz; Brooks R. Dawson; Greg East; Lane R. Penn; James A. Radcliffe; Michael P. Reis Administration: Darlene L. Burcham, Town Manager Legal Counsel Spencer A. Rygas, Town Attorney Staff: David Quesenberry, Clerk of Council Jordan Whitt, Social Media Manager Others Present: Dirk Akers Patrick Ford Stephen Spence Sheryl Stephens (Zoom) 1. Call to Order Mayor Collins called the meeting to order at 6:15 p.m. 2. Roll Call of Council The roll was then called. Present for roll call were Mayor Collins; Mr. Clontz; Mr. Dawson; Mr. East; Mr. Penn, Mr. Radcliffe and Mr. Reis. With all Council members present, a quorum existed for the conduct of business. 3. Modifications to the Closed Session Agenda Mayor Collins noted there were no modifications to the Closed Session agenda. 4. Closed Session Mayor Collins then asked for a motion to enter Closed Session for two matters: one item under Va. Code 2.2-3711 (a) 1, discussion of personnel matter; and one item under Va._ Code 2.2- 3711 (a) 8, consultation with legal counsel concerning a contract. Mr. Clontz moved to enter Closed Session on the stated items. The motion was seconded by Mr. Dawson and approved on the following roll call vote: Lane R. Penn -Aye James A. Radcliffe -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye Michael P. Reis, -Aye Council entered Closed Session at 6:17 p.m. 5. Certification of Closed Session Council returned from Closed Session at 7:00 p.m. Mayor Collins requested -a motion that Council discussed only those two matters for which it went into Closed Session: one item under Va. Code 2.2-3711 (a) 1, discussion of a personnel matter; and one item under Va. Code 2.2- 3711 (a) 8, consultation with legal counsel concerning a contract. Page 1 of 6/May4, 2021 Mr. Dawson moved to certify the Closed Session. The motion was seconded by Mr. East and approved on the following roll call vote: Lane R. Penn -Aye James A. Radcliffe -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye Michael P. Reis -Aye 6. Pledge of Allegiance Mr. Clontz then led the Pledge of Allegiance. 7. Invocation Following the Pledge, Councilman East gave the Invocation. 8. Modification of the Public Session Agenda No modifications were [Wade to the public session agenda. 9. Guests and Visitors Mayor Collins welcomed visitors in attendance and those watching online. 10. Public Hearing Concerning Reassessment Council next conducted a public hearing on reassessment. Mayor Collins called for the staff report. Mrs. Burcham said that a notice was published 30 days prior to the meeting indicating the County reassessment had yielded an increase in real estate assessments in the Town of 12.8%. State law required advertisement of the rate necessary to offset the projected increase and hold the tax neutral for property owners which was $0.30 per hundred. The advertisement suggested the Town would propose.to adopt its current rate rather than reduce the rate as a result of the reassessment. A budget would be prepared that would exceed last year's budget by at least 2%. This evening's public hearing would be to hear comment on that assessment increase or maintaining the current tax rate. Mr. Dawson asked if any public comments had been received. Mrs. Burcham replied that she had received none. Mr. Whitt said there were no comments on Facebook. To Mr. Reis' question if the documentation in the packet had accompanied the notice. Mrs. Burcham replied that it had not -but was supplied to the Town by the Commissioner of the Revenue. The increase in value for the Town was $197,000, which took six years of growth to reach that increase. There would not be another reassessment for six years. The growth was not as significant as the figure for the six-year window suggested which also dictated the level of real estate revenue for six years, unless there was new growth. Following fhe,staff report, Mayor Collins opened the public hearing at 7:09 p.m. There being no comments, Wayor Collins closed the public hearing at 7:09 p.m. Mrs, Burcham told Council that no action was required except to hear the public. • .0 - . . P 11. Continuation of Water -and Sewer Rate Discussion Mrs. Sheryl -Stephens of Draper Aden Associates next reviewed some issues regarding water and sewer -rates from the last Council, meeting. . •.P4gp 2 of 6/May4, 2021 1 1 At the start of her review of the water fund, Mrs. Stevens mentioned some changes in capital outlay and debt service as well as the three goals for a 90 -day reserve; a $500,000 capital reserve and a debt coverage of 130%. She initially projected the effects of an 8% increase in water rates noting a net income of $167,449 which could be combined with an existing $100,000 fund balance for a potential operating reserve of $267,449. A recommendation to temper the 8% rate increases were made to meet the 90 -day reserve. Additional rate increases of 5% and 6% were recommended for the next two years because of the need to cover debt service ($259,000 to $500,000) and the increase in capital expenditures which exceeded $300,000 over the next couple of years. Operating reserves would increase slowly due to the low level of net income and would not allow the 90 day reserve to be met, but adding $100,000 annually to the capital reserve for five years would give the CIP flexibility for unforeseen needs. A short discussion ensued with Mr. East's question if there was an idea of variation from year to year. Mrs. Stephens said she had not looked at the annual income. Mrs. Burcham ventured that revenues were reduced due to the Governor's moratorium on disconnections during the pandemic and that afterwards, localities would have to offer payment plans that would also reduce revenue recoveries. Mr. East ventured that the projections were conservatively based due to the fluctuations. Mrs. Stephens noted the low number of water connections, were not built into the water revenues projections. Mrs. Burcham reminded Council that funds from the American Recovery Act could be used to pay off debt to free up monies, however there were delays in issuing program guidelines which did not allow the funds to be applied to this budget by July V. However, the possibility existed that there could be a recovery that could mitigate future increases next year. Mr. Dawson ventured that the debt service would not be as high as projected (e.g. Brookmont) Mrs. Burcham responded if the Town was successful in bringing the project in lower, those grant loan funds could be applied to Filter Plant items. A brief discussion followed on applying potential unused funds to other projects and the uncertainties involved with the American Recovery Act. Having rate increases now held out the prospect of mitigating future increases or the amount of those increases. Mrs. Stephens then previewed what water rates would look like going forward for a customer with a 5/8ths inch meter and usage in thousand -gallon increments from 3,000 to 6,000 gallons per month. Increases for customers for this year would be approximately $2.00 with additional increases each year after that. Mrs. Stephens said restructuring of rates affected different customers in different ways. She used the example of a $0.10 increase in the third tier of the water volume charge raising $20,000 annually, while a similar increase in the second volume charge tier would only raise $3,500 annually due to the lack of sales at that level. Mrs. Stephens said that while it may seem desirable to raise the second and third tier volume rates or eliminate the most discounted rates, the largest industries would be most directly impacted. Another inquiry looked at the rate per thousand gallons decreases, which went into effect at 700,000 gallons, and moving that down closer to the second tier of volume charges. This would impact the Town's largest industry and the hospital resulting in political sensitivity impacting those two customers Page 3 of 6/May4, 2021 Mrs. Stephens then made a brief presentation on water usage, finding that the vast majority of bills accounted for less than 20,000 gallons per month which were the bulk of customers, with average residential users accounting for about 4,000 gallons per month per household. The majority of water (100 million gallons) was used by two customers (700,000 gallons and above) which accounted for 52% of all water sales and also provided a significant portion of fixed charge revenue. Mrs. Stephens then discussed adjusting tier rates by using a flat dollar amount. An increase of $0.15 to $0.25 per year would have smaller increases for residential customers, but the impact to larger customers might not be acceptable. This would allow the Town to have slightly higher ending balances, but not meet debt coverage and cash on hand goals. She reviewed the effect of 8% and 5% increases for two years on fixed charges which could help residential customers with lower increases over time, but would cause larger uses slightly higher rates. However, the more water used by larger customers, the higher their increases would be (11 % for an 8 -inch meter). Mrs. Stephens felt this would not be the time to pass rate increases on to larger customers. Since Council had no questions concerning sewer rates the presentation then concluded. Mr. East and other Council members expressed appreciation to Mrs. Stephens for her presentation. 12. Citizens Request Concerning Skatepark, Mr. Dirk Akers and Mr. Stephen Spence Mr. Dirk Akers and Mr. Stephen Spence next addressed Council concerning facilities for skateboarding in the Town. Mr. Akers noted the new skateboard shop and the owner's effort to clean up MacGill Park to allow skateboarders to ride there as well as keep kids off the streets. Skateboarders remained concerned over what would happen to MacGill Park. Mr. Akers encouraged the Town to meet the skateboard shop owner halfway in refurbishing MacGill, adding trashcans, etc. to have a facility closer into Town. Mr. Radcliffe, expressed dismay over the condition of MacGill Park and requested that a couple of trashcans be placed there; that a burned -out dusk to dawn light be given attention; and that the center fence be removed and jumps added to the center of the park. He asked Mrs. Burcham for overhead views of Sixth Street Park and the area of the parcels for a work session. He also expressed interest in planning for or converting existing recreation facilities at 6th Street Park to include a skatepark, two basketball courts, with a potential new tennis court and additional fencing. Some tennis courts could be used for the new sport of "pickleball". Mrs. Burcham updated Council on the 1St Street skatepark noting that site remediation was underway with a finish date in July. The CIP included a plan to move forward with the skate park there. She also informed Council that the Town would place some trashcans at MacGill and had removed some items that were felt to be unsafe. While the MacGill area would be developed in some revenue producing activity, the Town wanted to remain true to the commitment to the skate board enthusiasts. The draft CIP has the 1St Street skatepark slated for FY 23. Mr. Stephen Spence addressed Council noting the skate boarding was an effort to provide something positive for kids to enjoy and have fun. It would provide something wholesome the entire community could enjoy where participants knew they would be respected and cared for. A short discussion ensued on the safety of the fence removal at MacGill Park, with comments from Facebook suggesting that the fencing was beneficial in keeping users out of the parking Page 4 of 6/May4, 2021 area. Additional issues discussed by Council included use or refurbishment of the existing tennis courts and making the overall skate park effort a priority. 13. Public Comment Period Mr. Whitt reported that some persons on Facebook said that the Sixth Street Park was too small for a skatepark. Another comment asked if the current skatepark (MacGill) would be sold before another one was built. Mr. Reis responded that he did not know, but did encourage public green space at MacGill Park. Mrs. Burcham informed Council that recent water bills had a Comprehensive Plan flyer with them that asked citizens what they wanted to see in the future. Mr. Radcliffe mentioned that Parks & Recreation was moved to the County in the past. He said that a recent survey he had seen emphasized parks which he felt Council needed to know. 14. Consent Agenda a. Consideration of the Minutes of the April 20, 2021 Council Work Session Mayor Collins then asked for consideration of the minutes of April 20, 2021. Mr. East moved to adopt the April 20, 2021 meeting minutes as written. Mr. Radcliffe seconded the motion which was approved on the following roll call vote: Lane R. Penn -Aye James A. Radcliffe -Aye Brooks R. Dawson -Aye G. Tyler Clontz -Aye Gregory C. East -Aye Michael P. Reis -Aye 16. Council Comment Mayor Collins next asked Council for their comments. Mr. Penn had no comment. Mr. Dawson noted the importance of upcoming meetings with respect to possible utility meetings and tax increases. These issues generated little comment despite being tied to the financial health of the Town. Public comment was the best way to make these decisions, since the Town's progress was tied to rates and taxes. He encouraged people to speak up. Mr. East had no comment. Mr. Radcliffe inquired if the Town had not started cutting grass along sidewalks. Mrs. Burcham responded that the Town Code placed the responsibility for mowing on the property owner and noted that a letter and press release was sent out weeks ago reminding the public of their responsibility for mowing as well as blowing grass cuttings back onto their property to prevent potential accidents for bicycles and motorcycles. A short discussion followed over ownership and responsibility for such areas with Mrs. Burcham responding that a change in the Code would be needed if a change was desired. Owners of vacant properties who had their grass cut by the Town would be billed and a lien placed on their property if necessary. Mr. Clontz asked if Town citizens were allowed to dump at the Dublin Center. Mrs. Burcham replied that was her understanding and that there was also a site on Bob White Blvd. While the former sewer treatment plant was undergoing hazardous inspection, its remediation for a convenience center would be expensive. Town staff had been looking at another site for which Page 5 of 6/May4, 2021 some land might be donated for that purpose. There is a site open on Saturdays on Lafayette . Street for citizens to offload brush/wood items and pick up mulch. Mr. Clontz said the Dublin site had locations for large items which users could drive up to. Mrs. Burcham added that large item dumpsters were planned for the Town's site which would also be level with the ground. The County had received a $50,000 grant to determine what clean up would be necessary at the former sewer plant before it could have a future use. Mr. Reis asked if manholes at the former treatment plant and a small low water dam at Magnox could not be considered for potential action. Mrs. Burcham said that the Town had received a grant notification of an award of $50,000 for further investigation of the Magnox site with work possibly beginning in the next couple of months. Mayor Collins said that the storm drain at 7th and Washington needed to be cleaned out. He also complemented Mr. Whitt for sharing comments from Facebook, which he felt needed to be heard. He then called for the Manager' Report. 16. Manager's Report Mrs. Burcham mentioned the Governor had designated the week of May 3-7 as Virginia Public Service Week which recognized government employees throughout the state. She added that there were no better examples than the employees of the Town who had been at work every single day during the pandemic as compared to the many federal and state employees who were still working from home. Even with a period of alternating shifts, employees were here serving the citizens. Despite the "leanness" in numbers she was amazed at the dedication and years of service to the Town organization. She noted the latest draft of the CIP reflected the lower cost of an item found during a lease v. purchase inquiry. Efforts to balance the General Fund, were underway to see how many of the capital items could be included in the budget's public hearing for either May 18th or June 1St. A schedule of fees had also been provided to Council which she asked them to review and provide feedback. The budget she noted was the Town Manager's recommended budget to which Council could suggest changes and give staff the opportunity to make those adjustments. 17. Reminder of Future Council Meetings and Adjournment Mayor Collins reminded Council of the upcoming Council Work Session on May 18, 2021, with the Closed Session beginning at 5:00 p.m. and the Public Session beginning at 6:30 p.m. There being no further business, Mr. Reis moved to adjourn. The motion was seconded by multiple Council members and approved by unanimous voice vote at 9:05 p.m. Approved: hannon Collins Mayor ATTEST: '4�L/z zoenl, David N. Quesenberry Clerk of Council Page 6 of 6/May4, 2021