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HomeMy WebLinkAbout10-02-18Minutes of the Pulaski Town Council meeting held at 7:00 p.m., Tuesday, October 2, 2018 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: Nichole L. Hair, Deputy Town Manager Legal Counsel: Spencer A. Rygas, Town Attorney Staff Chief Robbie Kiser, P.F.D. Bill Pedigo, Town Engineer David Quesenberry, Clerk of Council Rebecca Reece, Finance Director Chief Gary Roche, P.P.D. Others Present: Luke Allison Matt Claus Steve Critchfield Jeff Hellstrom Jill Hellstrom Rod Meador Jared Morgan Clark Payne 1. Call to Order Mayor Clark called the meeting to order at 7:00 p.m 2. & 3. Pledge of Allegiance and Invocation The Pledge of Allegiance was led by Councilman Clontz and the Invocation given by Councilman Goodman. 4. Roll Call Following the Invocation, the roll was taken. Present were Mayor Clark, Mr. Clontz, Mr. Dawson, Mr. East, Mr. Goodman, Mr. Penn and Mr. Radcliffe. Being that all Council members were present, a quorum was present for conducting business. 5. Modification of the Agenda Mayor Clark then requested a motion to modify the agenda to add Item 13b. "Filter Plant Forklift Replacement" under Item 13 "New Business". Mr. Goodman moved to modify the agenda as stated. His 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 A. Radcliffe -Aye 6. Recognition of Guests and Visitors Mayor Clark welcomed the guests and visitors to the meeting and thanked them for attending. He also congratulated the Police Department for finishing the accreditation program with zero deficiencies, which was an extremely rare occurrence. He thanked the Department for a job well done. 7. Presentations a. Blight Removal Incentive Fund Program Council then heard a presentation from developers Steve Critchfield and Luke Allison regarding a residential blight removal incentive fund program. The developers noted that blighted housing was an issue which Town Council should address. While supporting staffs efforts to address the issue, they wanted to give Council an investor's perspective on the Page 1 of 5/October 2, 2018 matter. Blighted properties were a common problem which decreased property values throughout the Town. Their experience indicated that it took approximately six months to purchase a residence for $35,000, invest $25,000 in rehab work to get an appraised value of $88,000. In contrast, the 2015 Town market study proposed to limit investment in blighted properties to perhaps $10,000. The developer's model, using a $35,000-$25,000 model, resulted in market rent 70% higher than the level indicated in the study, which reached full market value rent. In renting properties, the developers found that the lack of decent rental housing was a problem in the Town. Their renters included employees of local industry as well as students pursuing advanced degrees, leading them to conclude that there was a market for rehabilitated rental housing in the Town. Appraisers told the developers that they arbitrarily reduce the assessed value of properties in the Town between 5% and 8% due to the prevalence of blighted properties. They asked Council to consider the increases in revenue that could be realized, without a tax increase, if blighted properties were abated. They noted that a property on 6 t Street, appraised at $88,000, could have been appraised at $95,000 if there were not a burned out structure next door. Market studies by Virginia Tech done on the developer's behalf, indicated their belief that the Town did not have the population to support businesses on Main Street. Their projection was that the Town's population would have to increase by 1,500 persons for Main Street to become viable. Removal of blighted properties and their replacement with new dwellings would aid in getting new people to move into Town. They suggested that targeting people who could not afford to own a home in other areas by using the VHDA First Time Home Owner Program, would enable them to come to Pulaski. The VHDA program they emphasized, was a "workforce housing program" for persons gainfully employed. Council was encouraged to consider incentives to attract private investors to replace blighted properties with new homes. Examples of incentives mentioned included: waiver of permit and hookup fees; demolition assistance; a five year tax abatement program; design assistance; and landscaping assistance. The program would incentivize any developer or small developers coming into the Town. Another component of the program would be to encourage current owners to remove blighted houses. If they could not remediate a building, for example a burned structure, then the Town should consider legal action to have such structures removed. They hoped that the Town would be as proactive as possible. Marketing the Town was an additional strategy that was suggested to Council. A proposed package would feature the current increases in rent and assessment in the Town in addition to incentives and community assets such as Calfee Park, bike trails, Jackson Park Inn and community events. These incentives would allow the Town to improve its appearance and attract new residents. Following the presentation, Council commented on various aspects of the proposed program. Mr. Goodman agreed with the program commenting that this was something the Town must do. Mr. East felt the Town should focus on marketing and resolving action on blighted properties. Coupling a marketing effort with removing blighted properties he felt would raise the level of everything else in the town. Mr. Allison ventured that incentives were the crucial part of a marketing program. Mr. East, noting investors who "flipped" houses or who rehabilitated homes and lived in them, felt that marketing was critical given the community's reputation. He agreed the incentives needed to be in place once people began looking at the Town. Mr. Critchfield suggested that the recent rehabilitation of eight to ten homes, which resulted in rent exceeding taxes and mortgage payments, could be used as a marketing program for developers. He added that incentives from the Town (e.g. tax incentives, blight removal) could result in offsetting the cost of demolishing partially destroyed residences. As to the perception of the Town, Mr. Critchfield felt that it tended to be local and that investors should be allowed to come in and upgrade the Town's housing stock. Mr. East asked Ms. Hair about the current status of marketing and blighted properties. Regarding marketing, Ms. Hair said that the Town was working with a local production group to do some marketing of the community. Page 2 of 5/October 2, 2018 On incentives, she said that she would like to comeback to Council with a draft ordinance putting incentives into the nuisance abatement part of the Town Code. She added by January 111, Ms. Hodge would be doing property maintenance and had been working with Mr. Pedigo learning the process. To Mr. East's mention of the number of burned out homes, Ms. Hair responded that Ms. Hodge would be handling that aspect of abatement. Mr. East questioned if one person was enough to do the job and felt that there was a need to learn the process of dealing with abandoned structures to clean up neighborhoods. Mr. Critchfield felt that incentives could be used to help people stay in their homes and facilitate removal of blighted or partially destroyed properties. Staff he continued could work with home maintenance programs for persons who could not afford to repair their residences. Mr. Goodman asked when Council could have a discussion on the proposed incentive ordinance and get a preview of the marketing plan. Ms. Hair suggested the marketing update and an update on Ms. Hodge's training for property maintenance enforcement could be available by the November work session. Mr. Goodman asked that the updates be scheduled for the November work session and be added to the project chart on the Weekly Update. Mr. East added that it was necessary to learn the process for removing some of the fire damaged structures. Mr. Dawson asked if the incentive plan, marketing video and removal process plan could be ready (for November). Ms. Hair said that the incentives, ordinance draft and removal process plan could be ready with work on the video perhaps taking longer. Mayor Clark proposed that a motion be made to direct staff to prepare the information so that it would be entered into the record. Mr. Goodman moved that Council adopt the plan for the November work session to add the three things just discussed, to make sure they are on the agenda and have staff report back at that time and include information on the weekly update about the process to keep Council apprised as to where things were going. The motion was seconded by Mr. Dawson 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 Mayor Clark thanked Mr. Critchfield and Mr. Allison for their presentation. Council also heard from Dr. Jared Morgan about the same topic. Dr. Morgan said that a similar housing program to assist first time homeowners in Idaho helped him get into his first home. The program as presented could help people and help bring people to the community that would build it up. He asked Council how business owners could help them during this process. Mr. East felt there was a need to get realtors, contractors, and banks to buy -in to what the Town was doing and then bring these professionals together with the Town to assist and educate first-time owners. Mr. Critchfield felt that incentives would attract contractors, who would bring in the banks which would make loans to the contractors. He noted that most of the residences he had rehabilitated were rented out before they were finished. Mr. Goodman felt that public-private partnerships could address the issue but that until now investors had been missing. Mr. Critchfield added that the investor community could help find realtors, developers, and even tenants. If the housing were available, given the higher costs of surrounding areas, he felt that there would be an influx of young, new citizens. There being no further comment, Council moved on to the Consent Agenda. 8. Public Hearings No public hearings were scheduled on the agenda. 9. Public Comment Period No comments were received from the public during the meeting. Page 3 of 5/October 2, 2018 10. Consent Agenda a. Consideration of the September 4, 2018 Council Meeting Minutes Mayor Clark asked for a motion to approve the minutes of the September 4, 2018 Council meeting. Mr. Goodman moved to adopt the September 4, 2018 Council meeting minutes as presented. The motion was seconded by Mr. Clontz and approved by unanimous voice vote of Council. Following approval of the minutes, Council moved on to Project Updates. 11. Project Updates a. Project Summary Sheet Ms. Hair noted that the most recent project updates were listed in the packet and that she and staff were available to answer questions. Mr. Goodman noting the deadline for the Town website on October 15th, asked if the deadline was for being on-line or was it a milestone. Ms. Hair responded that she felt it was a milestone and that staff was waiting for the training team to contact the Town with a selection of training dates. To Mr. Goodman's question if there was a rough idea when the site would be up by, possibly January, Ms. Hair replied that she hoped it would be sooner than that once staff was trained. Mr. East asked if the outline -framework was complete. Ms. Hair answered that the framework was complete and most of the content transition had been completed. Anything else would be uploaded during training to give staff training tools so that each department could update their own page and information. Mr. Goodman said he had not heard anything on a take-over of the Pulaskitown domain. Ms. Hair said she would follow-up with the consultant on that question. Mr. East asked if progress was being made on the website, with the understanding that most of the process was out of staffs influence. Ms. Hair said progress was being made and she was checking weekly with the consultant. Mr. Dawson asked about the status regarding quotes for landscaping options. Ms. Hair said staff would bring the issue back to Council. Mr. Goodman said Council would like to hear at the next meeting what the process (for landscaping) would be and when the program would begin moving. Mr. East said timing was crucial and things needed to be done sooner than later. There being no further discussion, Council moved to consider the FY 2020 budget calendar. 12. Old Business a. FY 2020 Budget Calendar Mayor Clark noted that the budget calendar had changed little, aside from some minor updates, from the previous budget meeting. He asked Council if they had any questions. Mr. Dawson asked if the CIP forms were distributed with a return date of October 5th. Ms. Hair responded that was correct. He asked that as soon as there was a draft document ready, that it be provided to Council. Mr. Goodman added that in addition to the document, that Council see the amount of capital reserves set aside for each department and what they were requesting each year. Being no further comments, Mayor Clark then moved on to the Planning Commission vacancy. 13. New Business a. Vacancy on the Planning Commission Ms. Hair reported that notice was received from Mr. Payne that he would be moving out of Town which created a vacancy on the commission. One application had been received and two other persons had expressed interest in the position. Ms. Hair said solicitations would be made to have a large pool of applicants and that advertisements would be placed with the local press and local media. There being no further comments, Council then proceeded to consider the filter plant forklift replacement. Page 4 of 5/October 2, 2018 b. Filter Plant Forklift Replacement Mr. Pedigo reported to the Council that the electrically powered forklift at the Filter Plant would need to be replaced due to the failure of the battery. The unit was purchased used about 12 years ago. A replacement battery would cost between $7,000 and $8,000, while a used forklift would cost approximately $15,670. A completely new model Mr. Pedigo noted would cost approximately $34,000. He had been advised that the current unit should be scrapped. Waiting for the capital cycle would be hard to do he ventured, since the coagulant used in treatment at the Filter Plant came in 55 gallon drums. Discussion then ensued concerning replacement of the forklift. Mr. Radcliffe and Mr. Penn supported the purchase of a new unit while Mr. Goodman favored purchase of a used unit because of the savings and the ability of staff to maintain the equipment. Mayor Clark said his experience as a shop foreman indicated that forklifts lasted on average 8-10 years and noted the town had purchased a used unit that had lasted that long in addition to another 12 years, doubling the unit's life. He said he tended to agree with Mr. Radcliffe and Mr. Penn on a new unit that could last double or triple the unit's average life which also would have coverage for problems as well as reliable performance. Mr. Goodman noted the cost for a new unit would be $18,000 more and that the Town had generally fared well with used equipment. He ventured the additional funds could be applied elsewhere. Following further discussion on equipment warranties, equipment cost, and rental units, Mr. Pedigo was asked to return to Council with information on the cost of a new forklift; the cost of a warranty; and information from the vendor on the battery life of a used unit. Mr. Pedigo said he could rent a unit if needed in the interim. Given the press of time, Mayor Clark, with Council's assent, decided to have a called Council meeting on Tuesday, October 9, 2018 at 7:30 p.m. to address replacement of the forklift. 14. Closed Session There were no closed sessions scheduled on the agenda. 15. Reminder of Future Council Meetings and Adjournment. Mayor Clark reminded Council of the called meeting on October 9th at 7:30 p.m.; the work session on October 16th at 5:00 p.m.; and the budget work sessions on October 23rd and October 30th at 6:00 p.m. He then asked for a motion to adjourn. The motion was made by Mr. Goodman, seconded by Mr. East and approved by the unanimous voice vote of the Council at 8:15 p.m. Approve vid L. Clark Mayor ATTEST: David N. Quesenberry Clerk of Council 1 Page 5 of 5/October 2, 2018