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HomeMy WebLinkAbout03-21-17Minutes of the Town Council Work Session held February 21, 2017, at 5:00 p.m. in the Council Chambers of the Municipal Building, 42 First Street, NW, Pulaski, Virginia. Present were: Robert N. Glenn, Mayor Council: James A. Radcliffe, Gregory C. East, David L. Clark, Joseph K. Goodman (arrived at 5:03 p.m.), H. M. Kidd, Lane R. Penn Staff: Shawn Utt, Town Manager Spencer Rygas, Town Attorney Nichole Hair, Deputy Town Manager Patricia Cruise, Clerk of Council John White, Economic Development Director Robbie Kiser, Fire Chief Mike Hudson, Lieutenant Dave Hart, Parks and Facilities Director Others B. J. Wood, Press Mayor Glenn called the meeting to order at 5:00 p.m. Councilman Penn moved to add two items to the agenda under Closed Session, Virginia Code 2.2-3711 (A-3) and (A-7). Councilman Clark seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman - Absent H. M. Kidd - Aye Lane R. Penn - Aye The first item for consideration was the Consent Agenda consisting of the January 17, 2017 Town Council minutes. Mr. Clark moved to adopt the January 17, 2017 Town Council minutes. Councilman East seconded the motion and carried on voice vote. The next item for consideration was Public Operations and the Color -Me -Cameron Run Sponsorship. Mr. Utt advised that as in years past, the Town had been asked to provide the police presence to close the streets during the Color -Me -Cameron 5k Run on April 1. He added that the event normally utilized all available police officers as well as some public works employees and the Fire Marshal at an estimated cost for overtime of approximately $2,000. He asked for Council's approval of this overtime cost. Councilman Clark moved to sponsor the Color Me Cameron Run with overtime needed for the Police Department, Public Works Department and the Parks and Facilities Department. Councilman Penn seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye The next item on the agenda was Finance and APCo/AEP Electric Purchase Agreement. Mr. Utt advised that the majority of municipalities in Virginia negotiate the cost of electricity for municipal services through the Virginia Municipal League. He continued that as a member of this consortium, the Town of Pulaski was able to pay for the electricity necessary for streetlights, traffic signals, pump stations and other February 21, 2017/Page 1 of 6 Town operations at a lower rate than the normal commercial rate. He noted the current agreement would expire the end of June, 2017. He added that a draft agreement, negotiated by the VML Steering Committee charged with continuing the relationship on behalf of member localities, had been included in the packet and asked for Council approval. Councilman East moved to authorize staff to execute the Agreement For the Purchase of Electricity From Appalachian Power Company. Councilman Clark seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye Mayor Glenn moved on to UDAG Loan Amendment — West Main Development, LLC. Mr. Utt advised that in 2014, the Town agreed to provide UDAG and RBEG loan financing to help move the West Main Development renovation projects on Main Street along. He continued that these projects include buildings located at 29 West Main Street, 69 West Main Street, 85/87/89 West Main Street and 94 West Main Street. He added that the company had completed renovation of 29 West Main which was now home to MOVA, a technology company. He continued that the company was ready to execute a construction contract with a contractor to begin the work this spring on 85/87/89 and 94 West Main Street buildings. He added that the company was willing to donate 69 West Main Street to the Town which was adjacent to another building that was being donated to the Town by an absentee owner (67 West Main Street). Mr. Utt advised that in order for West Main Development to proceed with financing their projects, they were requesting modifications to the loan agreements currently in place. He continued that since they were roughly 2 years delayed in the construction process, they wanted to move the loan term back two years. He added that with the proposed amendment, the loan would be for ten years with full payments beginning July 2018, which should give enough time for construction to be completed and tenants to begin to occupy the spaces. He advised that the other part of the request was the transfer of ownership of 69 West Main Street to the Town in exchange for a $20,000 loan forgiveness. He noted a Letter Agreement with all of the details had been enclosed in the packet for Council's review. He asked Council to authorize the Town Manager to execute all necessary documents on behalf of the Town. Mr. Utt also advised that the properties at 67 and 69 West Main Street needed a rather quick response to leaky roofs, some structural problems and a rear addition that had been condemned and was in need of demolition. He estimated that the cost for both buildings would be approximately $60,000 for these repairs. He suggested that the two buildings be put into ownership of the Redevelopment and Housing Authority, adding that they had the ability to do a lot more with enticements and RFP's to find someone to do something with the buildings. Following discussion, Councilman Goodman moved to authorize the Town Manager to sign the Letter Agreement regarding West Main Development UDAG and RBEG loans and any other documents associated with this process as well as accept the receipt of 69 West Main Street. Councilman Clark seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye Councilman Goodman moved to direct the Town Manager to transfer $60,000 from the Unreserved Fund Balance to the General Fund for the repairs of 67 and 69 West Main Street. Councilman East seconded the motion and carried on the following recorded vote: February 21, 2017/Page 2 of 6 James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye The next item for consideration was proposed policy amendments for UDAG. Mr. White advised that since the Town was in a transition period where emphasis was being placed on small business and commercial development, it was thought it would be good to devise a program whereby UDAG funds could be used to help. He proposed an additional method of utilizing the UDAG funds, largely to support existing businesses retain and expand services in the Town. He suggested the following criteria for "Line of Credit": 1. Not to exceed $15,000. 2. Loan to be repaid within 24 months. 3. Interest rate based on prime, but no less than 3%. 4. Funds may not be used for operating capital. 5. Town will use funds to pay approved vendors directly. 6. Eligibility would include a minimum of 5 years of continuous operations in the Town. 7. Applicant should not owe any fees to the Town. If taxes are owed, applicant should enter into a - repayment plan to become current by the end of the loan period. Failure would result in default of the loan. 8. In addition to collateralization of a minimum of 75% of the line of credit, a personal guarantee of the borrower(s) is required. Following discussion, Mr. Utt advised that if Council was amenable to the proposed guidelines, they could make a motion to adopt the UDAG Revolving Loan fund guidelines with adjustments for language showing progress on the repayment schedule. Councilman Goodman suggested that staff prepare draft documents using the criteria included in the packet for Council review at the March 7 Council meeting. The next item for consideration was Public Utilities and emergency generator repairs for the 4B sewer pump station. Mr. Utt advised that the generator that had served 4B sewer pump station on Wurno Road blew a motor and had to be replaced. Mr. Pedigo showed Council a lumpy piece of metal that was previously the piston for the generator at 4B sewer pump station as well as the bent push rods to the cylinder. He continued that he had located a used generator that was approximately $130,000. However, he felt trying to retrofit it would be very costly. He added that it appeared a new generator would be approximately $158,000 plus installation. Mr. Utt interjected that Mr. Pedigo met with a VACorp representative regarding catastrophic loss insurance that might cover part of the cost. He added that as part of the agreement, the County PSA would cover a portion of the cost. He asked for permission to move forward as an emergency procurement for the purchase. He advised that financing could include using reserves, finding a vendor who would provide financing options, and emergency loan from a local bank. He added that the Town had a larger unit at 4a sewer pump station that was the same age and suggested that during the budget process, funds be put back toward the future expenditure. Following discussion, Councilman Goodman suggested that the funds be taken from the unappropriated fund balance to purchase the generator and then reimburse any funds from the County PSA and catastrophic loss insurance. February 21, 2017/Page 3 of 6 Mr. Pedigo interjected that even if the unit was ordered the next day, there was probably a four to six week delivery time. Following discussion, Councilman Goodman moved to authorize the Town Manager to transfer $200,000 from the unappropriated fund balance to the sewer fund for an emergency purchase for a generator at 413 sewer pump station and return to Council with financing potentials. Councilman East seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye Mayor Glenn moved on to an update on a Public Safety facility. Mr. Utt advised that the revised cost estimates from Hughes and Associates for the Public Safety facility had still come in higher than expected for new construction. He continued that staff had begun to identify optional sites for their consideration and instructed Hughes and Associates to begin working on options for renovations vs. new construction. He noted that the main reason for providing the update to Council was to prepare Council for a larger than anticipated cost for the facility. It was noted that the grant writer was searching for assistance in building the facility. He added that at this time, there were grants available for fire and emergency services, but very few for police departments. Councilman Radcliffe commented that the police department could work from any area in Town. He suggested going back to the original idea of a facility for fire and rescue to see if more funds were available for the project. Mr. Utt responded that perhaps doing a new construction for Fire and EMS and a nice renovation to a building for the Police department might lower the cost some. He expressed curiosity for whether renovating the entire project would lower the cost. He hoped to have renovation estimates back in a few weeks. Councilman East asked if staff had some ideas for potential buildings that could be renovated. Mr. Utt responded that staff was looking into that. Mayor Glenn asked Council to consider whether they would like to build a complex consisting of a Municipal building, and Fire, EMS and PD. He continued that while the current Municipal Building was still in good shape, it was in the flood plain. Secondly, he advised that bond rates were very low at this time. He wondered if Council would like staff to begin looking into bonds to fund the project, whether as currently proposed or with the Municipal Building added to the picture. Councilman Radcliffe commented that he liked the idea of a complex that included the Municipal building, Fire, EMS and PD. However, there were only two locations that he could think of that could hold the entire complex. Councilman Goodman felt the complex would be nice, however, he preferred to move emergency services somewhere first. He added that he looked forward to growth in the Town and felt it would be best spent on things needed in the Town such as the infrastructure, staff and other important resources. Councilman Kidd interjected that historically, it was easier to get grants for fire departments than for emergency services. He added that with the increased call volume for the fire department, he felt that they should be able to get a grant for a higher amount. Following more discussion, Mayor Glenn commented that staff would continue to search for resources and methodology. The next item on the agenda was Round Table discussion. February 21, 2017/Page 4 of 6 Councilman Radcliffe suggested that staff meet with the County management and the School Board to discuss the possibility of hiring a Nurse Practitioner to serve all three governments. He added that a lot of plants and jurisdictions were doing this in an effort to keep insurance costs down. Councilman Goodman interjected that the Human Resource committee was already discussing this idea. Councilman Penn advised that there was a repair garage on Newbern Loop in the middle of a subdivision on 611 past Critzer Elementary school. He asked if this was legal. Ms. Hair responded that it was zoned for that. Councilman Penn inquired whether it met the fire code. Mr. Utt advised that staff would check with the Fire Marshal to be sure, but he felt it was not large enough to require sprinklers but that he would let him know. Councilman East advised that he had spoken with the Town Manager about having quotes drawn up for cohesive plans for key flower beds in Town. He mentioned Main Street, the triangle, Route 11 by the hospital and wherever else staff felt was necessary. Mr. Utt interjected that staff could install and maintain them. Ms. Hair suggested that the Town could also have businesses sponsor the beds to help defray the cost. Mayor Glenn commented that he had spoken with the Town Manager about hiring some summer labor or having volunteers help with the maintenance. Councilman East inquired whether staff had spoken with Pulaski on Main regarding decorating the park for the Winter Festival. Mr. Utt advised that there was a push by the editor of the Southwest Times to do a Festival of Lights in partnership with the County and the public. He added that she was trying to set up a meeting in the near future. He continued that some trees would have to be removed, but others would be planted. Councilman Clark commented that if nothing changes with the weather, there would be an early spring and an earlier time frame for mowing etc. Mr. Hart commented that staff had been talking about this issue. He added there was a conflict because they try to leave the grass a little longer for the Easter Egg hunt. At 6:19 p.m., there being no further comments from Council, Councilman Clark moved to enter into Closed Session under Virginia Code 2.2-3711 (A-3), discussion for consideration of the disposition or acquisition of publicly held property regarding Walnut Avenue property and (A-7), consultation with legal counsels and briefing by staff for discussion of specific legal matters and matters subject to probable litigation regarding First Street property remediation UDAG loan request. Councilman Kidd seconded the motion and carried on the following recorded vote: James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman -Aye H. M. Kidd - Aye Lane R. Penn - Aye At 6:43 p.m., Council returned from Closed Session and adopted the Certification Resolution on motion by Councilman East, seconded by Councilman Penn and carried on the following recorded vote: February 21, 2017/Page 6 of 6 James A. Radcliffe -Aye Gregory C. East - Aye David L. Clark - Aye Joseph K. Goodman - Aye H. M. Kidd - Aye Lane R. Penn - Aye There being no further business, the meeting adjourned on motion by Councilman Goodman, seconded by Councilman Clark and so carried. February 21, 2017/Page 6 of 6