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HomeMy WebLinkAbout04-20-21Minutes of the Pulaski Town Council Meeting held at 5:02 p.m. Tuesday, April 20, 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 presenter joining the proceedings via 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: Captain Brian Cole, P.F.D Chief Robbie Kiser, P.F.D David Quesenberry, Clerk of Council Jordan Whitt, Social Media Manager Press: Mike Williams, PC Patriot Others Present: Sheryl Stephens (Zoom) 1. Call to Order Mayor Collins called the meeting to order at 5:02 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. Absent from roll call was Mr. Reis. With a majority of Council members present, a quorum existed for the conduct of business. 3. Modifications to the Closed Session Agenda A Mayor Collins noted there were no modifications to the Closed Session agenda. 4. Closed Session 9 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. Mr. Dawson moved to enter the Closed Session for the stated matters. 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 -Absent Council entered Closed Session at 5:03 p.m. Mr. Reis joined the Closed session at 5:04 p.m. 5. Certification of Closed Session Council returned from Closed Session at 6:00 p.m. Mayor Collins then 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 personnel matters and one item under Va. Code 2.2-3711 (a) (8), consultation with legal counsel Page 1 of 8/April 20; 2021 Mr. Dawson moved to certify the Closed Session. The motion was seconded by Mr. Clontz 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. Modification of Public Session Agenda No modifications were made to the public session agenda. 7. Guests and Visitors Mayor Collins welcomed guests in attendance and those attending on-line. Council next considered Resolution 2021-13 recognizing Captain Brian Cole of the Fire Department upon his retirement. 8. Resolution Recoanizina the Service of Captain Brian Cole,_ Resolution 2021-13 Mayor Collins read Resolution 2021-13 which recognized and commended Captain Brian Cole for his service as a member of the Pulaski Fire Department. Following the reading of the motion, Mr. East moved to adopt Resolution 2021-13 "A Resolution Recognizing the Service of Captain Brian Cole Upon His Retirement from the Pulaski Fire Department." The resolution was seconded by Mr. Penn 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 Following the vote,. Captain Cole was presented with the approved resolution by Mayor Collins and Chief Kiser. 9. Consent Agenda a. April 6, 2021 Council meeting minutes. Mayor Collins next asked for consideration of the minutes of April 6, 2021. Mr. Dawson moved to approve the April 6, 2021 meeting minutes. Mr. East 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 Council next heard a presentation on water and sewer rates via "Zoom" from Cheryl Stevens of Draper Aden Associates. 10. Water and Sewer Rate Presentation by Sheryl Stephens, Draper Aden Associates Mrs. Sheryl Stephens of Draper Aden Associates, presented to Council research concerning the water and sewer rates. Covered in het presentation were the following topics: the 1994 Agreement concerning water sales bptween the Towr; and County; projected water and sewer rates; "rate restructuring"; the Davenport study; comparative bills with neighboring communities; and recommended firlanclal policies. Regarding the 1994 Agreement, Mrs. Stephens discussed the calculation of rates for emergency and non -emergency purchases of water, noting that in 10 years of data there had been no emergency purchases of water by either jurisdiction. She described the water purchases between the PSA and the Town to serve Newbern. Heights, Brookmont and Mount Olivet using the audited rates calculated .Page 2 of 8/April 20, 2021 by the PSA and applied to both parties at specific times of the year. Her findings were that the 1994 Agreement served the needs of the Town; that the PSA provided good documentation of calculations to the Town; and that the Town Finance Office needed someone to be familiar with and routinely check the PSA calculations. The water sales agreement would expire in 2024. Regarding projected water/sewer rates, Mrs. Stephens described working with Mrs. Burcham and the staff in adjusting the projected rates for a five-year period for accuracy which were based on the FY 21 budget as a baseline. To build up capital, $100,000 was added as an annual capital reserve for each of the next five years. The goal was to have $500,000 in reserves in a five-year period to fund small or emergency projects without having to borrow money. CIP projects as shown were intended to be funded with cash. Mrs. Stephens also reviewed the existing and proposed debt service for projects which would add $40,000 in debt service annually. Mr. Dawson stated that there was currently no Water Fund reserve and that expenditures and revenues were matching up. Mrs. Burcham said there was an undesignated water fund balance of less than $200,000 and that some money had been taken for a filter repair project. There were capital requests for the remaining two filters replacement. Mrs. Burcham said she would get the information on the fund balance. Mr. Reis questioned some figures for the debt service which were found to be inaccurate and which Mrs. Stephens said would be recalculated. A short discussion ensued in determining the correct debt service. Financial goals for the water fund included: having an operating reserve for 90 days of operating expenses ($450,000); capital reserves of a minimum of $500,000 ($100,000/year); and debt coverage equal to 130% of debt service. Mrs. Stephens next explained the effect on increases in rates upon debt service and net income to meet the financial goals. A rate increase of 8% in 2022, followed by a 5% increase in 2023, should meet the needs and possibly permit the Town to get by with minimal or no increases in -the next three years. The three major water projects listed would affect the cash flow which made projections harder to make at this time. Mr. Radcliffe questioned the additional increase of 13% in water charges with other increases added in. A short discussion ensued concerning the misnomer of water bill which also included garbage and sewer charges. Mr. Dawson asked about the purpose for not including the unassigned funds in with the reserve funds and was there a reason they were categorized differently in the Water Fund Projections. Mrs. Stephens responded the 1.3 (130%) coverage was used to determine the generation of the additional 30% for the debt service. The excess (30%) was not set aside into a fund but was an annual calculation to determine at the end of the budget, if that coverage was met. The cash was not set aside in debt reserve fund but would be in operating reserves. After a short discussion clarifying the role of the percentage of debt coverage, Mr. Dawson asked if by 2022 the net income of $392,642 added with the current Water Fund reserve of $200,000 would make a reserve of $592,642. Mrs. Burcham distinguished between the usage of the term "fund balance" versus "reserve". Mr. Dawson asked why the reserve fund balance and unassigned reserve fund were separate. Mrs. Burcham noted that although fund balance was sometimes called reserve, the fund balance was not counted towards the fund reserve. Mr. East, noticing that income and expenses were level loaded through 2026, asked about the "comfort level" with the numbers in the five-year projection. To Mrs. Stephens request on year-to- date expenditures, Mrs. Burcham said regarding connections it was running close to projections but some income projections were not running close because of the governor's moratoria on some water and sewer charges. Mrs. Burcham expressed hope that some of the anticipated funds from the Recovery Act will allow recovery back to 2020 levels. A discussion commenced concerning comparison of the Town's projected rates to other communities. Page 3 of 8/April 20, 2021 Regarding sewer, some increases were anticipated due to the middle school and the residential area under development. Expenses were projected to increase by 1.5% per year with an annual contribution of $100,000 to a capital reserve fund. Capital expenditures were smaller due to fewer projects at lower cost which could be funded with revenue so there was no new debt service. The largest debt service component was for Pepper's Ferry. The James Hardie project was grant funded. Goals included: an operating reserve of 90 days capacity ($850,000); $100,000 transferred to capital reserves annually for a minimum reserve of $500,000; and, having a debt coverage of 130% consisting of net revenues. Mrs. Stephens then reviewed the projected incomes from 6% increases in sewer rates in 2022 and 2023. Expenses were also reviewed with level debt service; Pepper's Ferry costs and other items. Mrs. Burcham noted that Council had concerns on I&I and funding sources were available with additional grant opportunities and possible assistance from DEQ. Mrs. Stephens said DEQ had revolving loans with a term of 20 years and potential grant opportunities. While the Sewer CIP was not large, the expense was with treatment (Pepper's Ferry). She suggested doing a master plan or CIP development to include needed items and methods of management of assets. Mr. Reis asked what a more "robust" program would require concerning budgeting. Mrs. Stephens ventured that to adjust I&I would require $100,000 annually. She also questioned including Pepper's Ferry in debt coverage calculations. After a brief explanation from Mrs. Burcham on the structure of Pepper's Ferry, Mrs. Stevens recommended that moving the Pepper's Ferry out of the debt calculation, could give the Town the ability to borrow some money, yet still meet the coverage. Regarding financial goals, Mrs. Stephens recommended that: excess revenues go to the operating reserves to give 90 days of operating expenses (approx. $850,000); transfer $100,000 to capital reserve annually to reach a $500,000 minimum; and have net revenues equal to at least 130% of the debt service. These goals would require two 6% raises in sewer rates in 2022 and 2023 resulting in a customer increase of $3.00-$4.00 per month in the first year and the second year. Mr. Reis ventured that the average customer who used 4,000 gallons per month would see a total $5.00 a month increase. Mr. Radcliffe said there would have to be separation of the water and sewer from the garbage charge. Mr. Dawson asked where the labor side of the sewer fund was located. Mrs. Stephens responded the labor charges were included under "Sewer Collection" in the spreadsheet. Mr. Dawson observed that the removal of Pepper's Ferry from the sewer budget left the Town with less than $400,000 to service the entire infrastructure, yet it had one of the higher sewer rates in the area. This did not make sense to him and did not sound like a good deal for the citizens. A discussion followed on the relationship with Pepper's Ferry and the issues confronting an aging utility system. Mrs. Stephens noted a comparison between her study and the Davenport study, resulted in both figures being close. She noted that the proposed increases would result in a $60 increase per year. A comparison with neighboring communities for a 5,000 -gallon bill, showed the Town water rate favorable to other localities, but the sewer rate higher than most including the state. The combined water and sewer bill she noted was high. Mr. Reis, noticing that increased use generated little variation in billing, asked about ways to lower treatment cost by incentivizing citizens to cut back on water usage. Mrs. Stephens replied that $800,000 of revenue were due to fixed charges. Because of the fixed charge the bill would not vary that much with usage because the cost per thousand was a small part of the bill. Mrs. Stephens concluded her presentation by recommending that water rates be restructured to a two-tier system (0-500,000 gallons; over 500,000 gallons) instead of a three-tier system. After the presentation, Council considered several ordinances and resolutions. Page 4 of 8/April 20, 2021 11. Resolution Aopointina Members to the Housina Board of Adiustment & Appeals Resolution 2021-16 Council then considered Resolution 2021-15, appointments to the Housing Board of Adjustments and Appeals. Mr. East moved to adopt Resolution 2021-15 as written. 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 12. Resolution Supporting Passenger Rail Service to Bristol, 2021-16 Regarding Resolution 2021-16 supporting passenger rail service to Bristol, Mr. Radcliffe moved to accept the resolution as written. The motion was seconded by Mr. Reis 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 13. Amendment of the Personnel Policy Regarding Compensatory Time, Ordinance 2021-08 Council then considered Ordinance 2021-08 regarding compensatory time accrual. Mr. Reis asked if the language that had been discussed was added. Mrs. Burcham responded that the ordinance if adopted would be a "clean copy" with the Council copy showing the alterations to the ordinance. Mr. Reis moved to adopt Ordinance 2021-08 as written and edited. Mr. East 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 14. Authorizing the Fire Official to Issue Fireworks Permits Ordinance 2021-09 Council next considered Ordinance 2021-09 authorizing the Fire Official to issue fireworks permits. Mr. East moved to adopt Ordinance 2021-09 as written. The motion was seconded by Mr. Penn and 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 15. Setting the Fees for Fireworks Permits, Ordinance 2021-10 Council then reviewed setting the fee for fireworks displays. Mr. Dawson asked if previously there were fees. Mrs. Burcham responded that there were and they were several hundred dollars. Mr. Dawson asked if the fees were being lowered. Mrs. Burcham said the fees were being lowered per event, given that there was only one group that set off fireworks. Their plan was to have as many as six events per year, but because there was a flat fee the number of events could increase. The Fire Marshal, being the appropriate party, would issue the permits. Mr. Dawson moved to pass Ordinance 2021-10 as written. Mr. East seconded the motion which was approved on the following roll call vote: Page 5 of 8/April 20, 2021 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. Amendment Clarifvina Seoaration Pav Provisions Reaardina Benefits. Ordinance 2021-11 Council next considered Ordinance 2021-11 clarifying separation pay provisions with respect to benefits. Mr. Reis had a question regarding the language of the ordinance regarding "... or is terminated for reasons other than their position elimination or reduction in force ... He asked if that was "for cause" or was it for other than that? Mrs. Burcham responded that it was for other than that. Mr. East moved to adopt Ordinance 2021-11 as written. The motion was seconded by Mr. Reis and Mr. Clontz 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 next considered Ordinance 2021-12 regarding work periods. 17. Amendment of the Personnel Policv Concerning Work Periods, Ordinance 2021-12 Mr. Reis, in looking at Attachment A, asked if the paragraph that was added was language from the Department of Labor or incorporating the Department of Labor standards. Mrs. Burcham responded it was incorporating the Department of Labor standards. Mr. Reis ventured if the Department of Labor changed their standards, the Town would not have to go back and do a reauthorization because the Labor Department did alter their standards and the ordinance simply referred to that. Mrs. Burcham added that in the last year or so the Labor Department had increased the salary level as one of the criteria for determining exempt or non-exempt status. The felt the former section mandating that Department Heads were exempt was not an appropriate statement. Updated job descriptions that were prepared previously by a consultant would be used to determine exempt - nonexempt status. The HR Manager would be kept appraised of changes in the FLSA that would require modification of individual positions and their eligibility to remain exempt or move to non- exempt status. Mr. Reis asked concerning advertising new positions. Mrs. Burcham said people would know if it was an exempt or non-exempt position. She had also directed the new HR Manager to review the entire personnel manual to update it from a language standpoint. Some issues would be brought before Council for more immediate attention. Mr. East felt it was a worthwhile effort. Mr. Reis moved to adopt Ordinance 2021-12 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 18. Council Comments Mayor Collins next called for Council comments. Mr. Penn had no comment. Mr. Dawson asked, now that outdoor restrictions were easing, had there been any discussion about what events might be put on and had there been efforts by others. Mrs. Burcham said there had been several contacts with the Town noting the Fine Arts Center was planning an event on Memorial Day. Page 6 of 8/April 20, 2021 Pulaski on Main had expressed having a series of events possibly working with the Fine Arts Center on the first event. A request had been received on scheduling the "Color Me Cameron" event later in the year. The Town was telling potential event planners that they would have to go through the standard permit process with the caveat that they would have to abide by the Governor's pandemic restrictions at that particular time. As the weather warmed and with more persons vaccinated, there would be more events. As an aside, she then mentioned the upturn in attendance at the Senior Center due to people kept in their homes being presented with a social and entertainment opportunity. Mrs. Burcham said the Town was open to events provided certain precautions were taken. She mentioned that events normally required police officers to be recalled from leaves. People needed to understand what it took to put an event on. Mr. Dawson ventured that people were going to be "very hungry" and would be appreciative for what was put on and that the turnout would be much higher than what had previously been and would require more effort on the Town's part to navigate that. Mrs. Burcham added that putting on an event with the restrictions would be different, yet the Town was not suggesting that people ignore the possibility. It would require much planning in advance to see what resources would be needed. Mr. East had no comment. Mr. Radcliffe said that Council was in a learning experience and noted that the Town Manager was guiding them. He felt the personnel policy changes needed to be done years ago. Council's questions on the previous presentation he felt, told the citizens that Council was trying to keep everything as low as they could. He appreciated the work that was done and for keeping Council informed. Mr. Clontz said that someone told him that there was a mechanism or way that water leaks could be detected. He understood that if an account showed higher than normal usage they were notified in some way. Mrs. Burcham responded that if the Finance Department during billing noticed an extremely high usage versus normal usage, they would contact the customer through various means and tell them their usage was high. There were a couple of customers with high usage, who kept paying a high bill, one of which had been notified they would be cut off because of that high usage all the time. She supposed that they did not want to be bothered, even though there was an indication that there was a leak. Mr. Penn said there was a couple of things that could be done: read the meter and put dye in the commode. Mrs. Burcham said the dye was the process suggested by the Town since it was the easiest process to determine if there was a leak. Concerning events, Mr. Clontz asked if there was a way to connect the ballpark with the Downtown. He suggested if a walkway went down Dora then to the park, it might be more convenient given the way the roads were setup. He ventured it could be added to the capital program. Mrs. Burcham suggested it would be eligible for VDOT funding and could bring business into the Downtown. Mr. Reis thanked Mrs. Burcham for the water/sewer rate analysis which was helpful in understanding where investments needed to be made as well as explaining to the citizens why rate increases were needed. He also complemented Mrs. Burcham and the Public Works staff for assistance and responsiveness involving some sidewalk issues. Mr. Reis said he hoped there could be more outreach to citizens concerning what was planned to be done. Mayor Collins said he had been asked about car shows. Mrs. Burcham responded that persons could contact Mr. Whitt since he was involved in the permitting process. Given the size of crowds at such events in the past, she could see the value of such events. Mayor Collins also expressed appreciation for Ms. Hopkins work with the seniors and Mr. Whitt's posting of information on the Town's social media. Page 7 of 8/April 20, 2021 At. the conclusion of comments, Council received the Manager's Report. 19. Manager's Report Mrs. Burcham reported the staff worked to put more press releases and announcements on the Town's Facebook page in response to Council's interest getting more information out to the citizens. She invited Council to go to the Facebook page and see what was being promoted, as well as suggestions from Council as to what other improvements could be made. Mrs. Burcham mentioned the large water break the previous evening which involved turning off 17 valves to assist in repairs, which left large sections of the town either without or with reduced water service. A boil notice was put into effect for certain areas as a precaution. She commended the staff that worked the break which consisted of both water and sewer staff who worked exceeding well together. Calls received from the public were very appreciative that the break was being tended to and were very understanding of the situation. Mrs. Burcham noted that a press release had been issued seeking citizens input or feed back on our Police Department and also what they would like to see in a future police chief, given Chief Roche's retirement. Also sought were suggestions and ideas the public might have on the future of the Police Department and what should be emphasized or deemphasized. She encouraged the public to participate in shaping the future of this important aspect of the community. 20. Reminder of Future Council Meetings and Adjournment Mayor Collins reminded Council of the upcoming Council meeting on May 4, 2021, with the Closed Session beginning at 5:30 p.m. and the Public Session beginning at 7:00 p.m. In addition, a Council work session would be held on May 18, 2021, with the Closed Session starting at 5:00 p.m. and the Public Session at 6:30 p.m. There being no further business, Mr. East moved to adjourn. The motion was seconded by multiple Council members and approved by unanimous voice vote at 8:18 p.m. ATTEST: David N. Quesenberry Clerk of Council Approved: W. Sh ollins Mayor Page 8 of 8/April 20, 2021 1