Common Council

AREGULAR MEETING OFTHE COMMON COUNCIL OFTHE CITY OF BECKLEY CONVENED AT 6:30PMONOCTOBER 11, 2022, INCOUNCIL CHAMBERS FOR COUNCIL MEMBERS AND BY WEB-XFOR THE PUBLIC DUE TOCOVID-19. THOSE PRESENT: Mayor Robert R.Rappold, Recorder-Treasurer Billie Trump, City Attorney BillFile, Secretary Susan Miller, ITDirector, Bill Kelly, Assistant ITDirector, Amy Evans, Council Members: Cody Reedy, Tom Sopher, Robert Dunlap, Bob Canter, Kevin Price, Janine Bullock, andSherrie Hunter. The following Department Heads were present: Captain EdThompson ofBeckley FD, Chief Bailey ofBeckley PD, Captain Morgan with theCode Office, andDirector ofBoard ofPublic Works, Pam Frey, andCity Controller Jessica Chandler. Guest speaker Rob Steptoe with Cruise & Associates, Tom Aman, Omar Daghestani with Nicolaus, andJoeNassif with Piper Sandler were present. The Mayor called the meeting toorder at6:30p.m.Council members, Department Heads and thepublic joined themeeting either inperson orbyWEB-Xfrom their computer, orbyphone, using theweblink orphone number provided thedayofthemeeting ontheCity’swebpage at Beckley.orgorthe City’sFacebook page. The Mayor ledthePledge ofAllegiance. Council dispensed with thereading andapproval ofminutes from theCity Council meeting dated September 27, 2022, copies ofwhich hadbeen distributed toeach member. Council unanimously approved theminutes aswritten onamotion byCouncilman Dunlap andseconded by Councilwoman atLarge Sherrie Hunter. Next, was thesecond reading andpublic hearing ofanOrdinance toutilize Bonds tofinance theunfunded liability oftheBeckley Police Department andtheBeckley Fire Department pension funds. Mr.Fileread the Ordinance bytitle ANORDINANCE AUTHORIZING AND APPROVING THE ESTABLISHMENT BY THE CITY OFBECKLEY (THE " CITY") OFAPENSION FUNDING PROGRAM AND THE FUNDING OF SUCH PROGRAM WITH THE PROCEEDS OF TAXABLE PENSION FUNDING REVENUE BONDS ("THE BONDS") ISSUED BY THE BECKLEY BUILDING COMMISSION (THE "BUILDING COMMISSION"); AUTHORIZING AND APPROVING THE ISSUANCE BYTHE BUILDING COMMISSION OF THE BONDS, INONE ORMORE SERIES, INANAGGREGATE PRINCIPAL AMOUNT NOT TOEXCEED $37,000,000TOFINANCE THE COST OFAPENSION FUNDING PROGRAM INCLUDING THE FUNDING OFADEBT SERVICE RESERVE FUND FOR THE BONDS, IFREQUIRED, THE PAYMENT OFCOSTS OF ISSUANCE OFTHE BONDS AND RELATED COSTS; AND TOPAY OTHER COSTS INCONNECTION THEREWITH, INCLUDING THE ESTABLISHMENT OFACONTINGENCY RESERVE FUND WITH RESPECT TOTHE BONDS AND, IFDEEMED ADVISABLE, THE PURCHASE OFBOND INSURANCE INCONNECTION WITH THE BONDS; AUTHORIZING AND APPROVING THE ACQUISITION OFREAL PROPERTY AND ASSOCIATED IMPROVEMENTS BY THE CITY FROM THE BECKLEY BUILDING COMMISSION; THE LEASING BYTHE CITY, AS LESSOR, OF CERTAIN REAL PROPERTY WITH ALL BUILDINGS, IMPROVEMENTS, FIXTURES, EQUIPMENT, RIGHTS OFWAY AND APPURTENANCES ASSOCIATED THEREWITH (COLLECTIVELY THE "LEASED PROPERTY") TOTHE BUILDING COMMISSION, ASLESSEE, PURSUANT TOASITE LEASE AGREEMENT TOBE EXECUTED AND DELIVERED BYANAUTHORIZED OFFICER OFTHE CITY; AUTHORIZING AND APPROVING A LEASE AGREEMENT BETWEEN THE BUILDING COMMISSION, AS LESSOR, AND THE CITY, AS LESSEE, WITH RESPECT TOTHE REAL PROPERTY (THE "LEASE") TOBEEXECUTED AND DELIVERED BYANAUTHORIZED OFFICER OFTHE CITY; AUTHORIZING THE PREPARATION OFAPRELIMINARY OFFICIAL STATEMENT TOBEUSED INCONNECTION WITH THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY BYTHE MAYOR OFTHE CITY OFACONTINUING DISCLOSURE AGREEMENT, ANOFFICIAL STATEMENT, AND ABOND PURCHASE AGREEMENT BETWEEN THE BUILDING COMMISSION AND THE PURCHASER OF THE BONDS, AND ACKNOWLEDGED AND AGREED TO BYTHE CITY; APPROVING THE ADOPTION BYTHE CITY OF CONTINUING DISCLOSURE POLICIES AND PROCEDURES WITH RESPECT TOTHE CONTINUING DISCLOSURE AGREEMENT TOBEEXECUTED BYTHE CITY IN CONNECTION WITH THE ISSUANCE OFTHE BONDS; AND AUTHORIZING OTHER NECESSARY ACTIONS INCONNECTION WITH THE FOREGOING. Tom Aman with Steptoe & Johnson spoke. He explained thatSteptoe & Johnson istheBond Council tothe Building Commission and theCity for the project offunding thePolice & Fire Department pensions. Heintroduced Omar Daghestani with Stifel Nicolaus, JoeNassif with Piper Sandler, andRob Steptoe with Cruise & Assoc., Mr.Aman said thatthisteam ofbankers arehere togetthebonds sold andanswer anyquestions thatmay needtobeaddressed. The City istrying tofund itsunfunded pension liabilities. This opportunity isduetothenew legislation which was passed inMarch 2022 byWVlegislature House Bill4756. Themechanism toexecute thisisutilizing the Building Commission which isenacting itsown ordinance authorizing issuance ofthebonds. This isdueto requirements byWV State lawwhich prohibits the City fromincurring debt. The City willneed tolease certain properties totheBuilding Commission. TheBuilding Commission leases back totheCity (andit’s through thelease agreements that theCity paysthedebt service onthebonds). Apremium taxoninsurance policies inthestate isanother source offunding. Aportion ofthatispledged (1%tax) torepayment ofthe bonds. There arealso properties thatare thesubject ofthe leases that willbesecurity forthebonds incase there isnonpayment oraproblem with thebonds thatispart ofthecollateral. There isacontingency reserve fund. Thisisanamount equal to10%ofthebonds funded. This helps ifanyissues arise overthe lifeofthe bonds. These funds canbeusedtohelpmaintain afullyfunded status forthe fireandpolice pension programs. Both programs would befully funded atclosing eliminating that liability. The City isissuing authorization ofthebonds bytheBuilding Commission bytheleasing arrangement between theBuilding Commission andtheCity. Ifpublicly offered bonds areoffered, they have continuing disclosure obligations fortheCity. There would bebasic information theCity would agree toprovide annually tobondholders. An agreement would beputinplace atthattime. There arealso policies andprocedures thattheCity would adopt toensure disclosures aremade. Councilman Sopher asked what theinterest rateis. Mr.Aman said that therate isnot locked inuntilthe bonds are soldsothere isanofficial selldate. There isanOffering Document thebankers gotothe public with thatisinthe process ofbeing finalized. Once this iscompleted, they takeorders andknow what thefinalterms arewhich allow them topresent aCertificate of Determinations orasupplemental resolution andprovide thefinal approval. Mr.Fileclarified asking ifthe bankers willcome back totheBuilding Commission andtoCommon Council. Mr.Aman said, yes, itis likely that aCertificate ofDetermination ( giving authority totheBuilding Commission Chairperson andto theMayor toapprove thefinal interest rateandbond amount) willbepresented atthattime. Itwillbewithin parameters previously established. The paperwork hehasmentioned willinclude theprincipal amount and interest rate ofthebonds which willallneed final approval. The Mayor said thatthissame team ofbankers helped theonly other cityinthestate todothiswhich istheCity ofWheeling, WV inAugust of2022. The Mayor said thatthisform ofpension funding has also taken place across thenation. Mr.Aman agreed stating that thisteam ofbankers have extensive experience with thistype offunding fordifferent municipalities around thecountry. The Mayor said thatthisishistorical, andheishappy tosaythattheCityhasnothadto delve into operating costs tohelp fund these pensions. Hesaid the City hasmanaged thepension funds very well and thefact thattheCity qualifies toparticipate inthis program iswonderful. Mr.Aman said that because oftheCity hasproven tobefiscally responsible inthemanagement ofthese funds (being atthe40% funding threshold orhigher) allows theCity ofBeckley toforgo having togetspecial legislative approvals. Hesaid theCity ofBeckley hasputitself inavery good position anditdoes nothavetodothat. The Mayor thanked each ofthebankers foralltheir work onthishistorical project. The Mayor announced thatifcalling byphone dial *3toraise your hand. Ifconnected bycomputer, click the “hand icon” onyour participants panel tospeak. Danielle Stewart asked ifthere isadedicated revenue source topaythese bonds orifitis coming from thegeneral fund. Mr.Aman said onesource istheinsurance premium taxthatotherwise comes totheCity from theState. The normal cost must befunded every year toqualify toreceive those amounts from theState. Historically, theCity hasdone andwillcontinue todothis. Toavoid theconstitutional debt prohibitions, WV state lawrequires thattheCity notpledge anyparticular funds forrepayment and itdoesn’t have the ability topledge thegeneral fund soit’sthisannual appropriation lease type ofarrangement that the bankers areworking with sotheCity hastheability touse anylegally available funds initsbudget which would include thegeneral fund, municipal sales taxthat theCity collects, B&Otaxes, andahost ofother sources tocollectively pulltogether tomake the payment. Itgives the Citythe flexibility touse different sources rather than fromasingle pledged source. Danielle asked ifthere isanestimate ofwhat thiswillcost peryear and isitmore than what iscurrently being paid. Omar Daghestani with Stifel Nicolaus saidinterms ofspeaking ofdebt totheCity regarding debtservice costs, iftheCitydoes nottake action andmove forward with thistheCityisgoing tokeep increasing itspension contribution by7%every year. Hesaid thismaynot sound likealotbutdoing thisover thecourse of40years isalot. This plan isintended toreduce theramp andflatten itouttolevel debt service. Theidea istopay approximately anequal amount every year which is estimated tobeabout $2.1Mfortheunfunded portion ofthatindebt service which ismatched towhat the City would currently bepaying butless. So, theCity isalso expected toreduce itscosts bydepending on what theinterest ratemarket isandwhat itiswhen theCitycomes tomarket. Reducing expected savings for theCityinthelowteens, maybe even more with some structural enhancements, andeliminate thebig ascension incost. Healso mentioned thecontingency reserve fund thatMr.Aman justdiscussed. Itis10%of theissuance amount and ismoney that isheldat, managed by, and invested bythe City. Thiscould beused tohelp manage things thatcould emerge with thepension fund bethatinvestment returns, orthose actuarial returns. Danielle asked iftheCity’splan istoofferall $37Minbonds atone time. Mr. Daghestani said that theideaisthatitwould bedone once. Infact, thestatute requires thattheCity fundto100%. Calculations willtake place thecloser theCity gets tomarket soitmay belessthan $37M. Heexplained thatcosts would bepaid twice ifitwere tobedone more than once. Danielle asked ifthis secures the City’spension requirements andforhowlong? Mr.Daghestani said that fortheexisting unfunded liability theCity has, it does secure that. Thisisn’ttosaythatnew liabilities couldn’temerge based onthemarket orwhat happens with the state’sactuarial assumptions. Investment return risksand actuarial risksarevery real. The City will gain theability tomanage more efficiently what ithas. New things mayemerge, totheextent thatthey would, those would amortize over 15years through theWest Virginia’spension requirements assetforth in statue. Danielle asked ifthere isasettimeframe that thismust beexecuted, orcould theCity wait forlower rates andcantheCity reissue orlower thebond rateifinterest rates decrease. Mr.Daghestani saidthat bankers arealways looking forthe best rates within thetimeframe they areworking andiftherates aren’tas attractive asthey would like toseethen things canbeputonhold. Traditionally, fixed ratebonds areused. Unless something major inthemarket occurs, heanticipates using a “ten-year call” which means itcanbe refinanced attheten-year mark, forthebonds. Councilman Sopher asked what theratings forthebonds are. Mr.Daghestani said thattherating process hasnotyetstarted. Danielle Stewart asked ifthecitizens of Beckley will beable tobuy into these bonds. Mr.Daghestani said thatthese aretaxable bonds, sothey are typically bought byinsurance companies andother bond funds andcorporate funds. They arenottaxexempt. Typically, itisnotsomething thataretail orlocal investor would want tobuybut ifsoateam ofBankers could manage thatthrough anyone ofthefirms represented here today. Danielle said that sheisinfull support ofthepensions being fully funded. Shethinks theCity hasdone extremely well managing finances. Councilman Dunlap said thiswas previously discussed intheWorkshop, sothisisforthose justtunning in tonight. Hesaid thatbecause theCity hasbeen fiscally responsible tothis point ithas made this attractive. One oftheother contributing factors isthattheCity owns alotofgood andvaluable pieces ofrealestate which are unencumbered. The City hasreceived alotofscrutiny forpurchasing properties over the years. Hethinks it’simperative thatpeople understand thatthe City hasplaced itself inavery good position tomake itattractive even forahigher rate. Owning freeand clear, valuable realestate hashelped alot. Mr. Daghestani agreed. The City hasmade itself eligible todothisbyseveral good practices. Mr. Daghestani said that theZoom callwith theMunicipal Pension Oversight Board (MPOB) wasvery favorable andthere areobviously some conditions andconsiderations thatRecorder-Treasurer Billie Trump andthe City will need tomake relative tothat. Mr.Daghestani asked Billie what histhoughts were regarding theMPOB meeting today. Billie said thatChairman Blair Taylor brought upsome points that theCity had not addressed, andMr.Taylor gave aclear pathforward expediting thesaleofthebonds andtoexpedite how the City addresses it. Some decisions need tobemade. Billie said theinformation isavailable tohelp make intelligent decisions. Mr.Daghestani said thatnotwo transactions areever thesame. They arecustomized. Hesaid thatthe entire underwriting team isnothere to “doabond deal” andleave. Itrequires along-term commitment andwants theCity toknow thatasthings come uptheteam isand willcontinue tobeavailable. Councilman Sopher said that therecipients ofthepension should begreatly appreciative because ifCouncil didnotpass this, thefireman andpoliceman would have tofall back onsocial security and401K. He said a fully funded pension plan israre. Mr.Daghestani agreed andsaidhealso thinks thatthisisarecruiting positive. The Mayor shared that over thepast fiveorsixyears (when feasible) Billie Trump worked toenrich theCity’spension plan more than $450K. This came outofthegeneral fund astheCity could afford itto help the City qualify andgettowhere theCity isnow. The Mayor said that Cruise & Associates has been tremendous over theyears inadvising theCity throughout the years andhashelped theCity save alotof money. RobSteptoe said thattheinterim actuarily report isabout toberequested inorder tobring allofthe unfunded liability uptodate, soitisknown what theunfunded liability amount isbefore going tomarket. Mr.Fileclosed thepublic hearing. The ordinance was unanimously approved byCouncil onmotion made by Councilman Price andseconded byCouncilwoman atLarge Sherrie Hunter. The ordinance ishereby incorporated into these minutes. Mr.Filesuggested inlieuofrereading theordinance bytitle (#4ontheAgenda) thattheMayor take avote onthisitemtoadopt thepurposed ordinance thatwasread forthepublic hearing thatwas justconcluded. Mr. Fileasked theMayor tocallfor amotion toapprove item #4ontheAgenda. Council unanimously approved item #4ontheAgenda onamotion made byCouncilman Dunlap andseconded byCouncilwoman Bullock. Item #4ontheAgenda ishereby incorporated into these minutes. OLD BUSINESS: The Mayor thanked Beckley Events Director, JillMoorefield foranoutstanding jobon Chili Night. Hethanked Councilman Sopher for hisinvolvement inthecelebration ofthe _______Blvd. at thebypass. The Mayor said thatCouncilman Sopher hasdone awonderful job over theyears asChairman of theRaleigh County Historical Society. The Mayor thanked Leslie Baker, Director ofParks & Rec., and Jeremiah Johnson from theBlack Knight andallthestaff involved inthe (BAF) Beckley Area Foundation Gayla. Councilwoman Bullock attended thePurple Haze Gayla atTamarack which was presented by A.W.A.Y. f(ormerly theWomen’sResource Center). Christy Martin was theGuest Speaker. Councilwoman Bullock metDebbie Short whowas thefirst Director oftheWomen’sResource Center. Councilwoman at Large Sherrie Hunter thanked Councilman Dunlap forhiscomments acknowledging theCitypurchasing real estate inthepast which again isproving tobebeneficial fortheCity. Shealso thanked the (BPW) Board of Public Work’semployees forthework they doonthelitersweep. Shethanked thePD & FDforallthatthey do. Councilman Sopher asked about thepaving ofTeel Rd. Hewanted toknow ifJerry orPam hasbeen able tocontact theState regarding thepaving work needing done there. Jerry Stump, Director ofBPW said that hehascontacted theState. Jerry said he’shoping thiswill getcompleted next year. Councilwoman Bullock thanked Chief Bailey andtheOfficers forthework theyaredoing withrecent investigations taking place in theCity. NEW BUSINESS: The Mayor said thatCorey Lilly, Director ofOutdoor Economic Development hasbeen working with private landowners andacompany, Destinations byDesign (DBD). They areworking on developing abranding for theCity and toexpand onour responsibility asagateway city totheNew River Gorge National Park andPreserve. TheMayor said work hasstarted. Right now, itisn’trequiring alotof money butastime passes there may beaneed for money regarding thisproject. The Mayor said thatthe City hashadseveral meetings with them, andheisproud ofthework thatisbeing done. The Mayor said that Corey Lilly & Eric Ward (with DBD) aredoing agreat job. The Mayor said November 8,2022, isElection Day therefore there willnot beaCouncil meeting that day. Councilman Dunlap was very complimentary to theYMCA andthe youth programs offered there. The Spirit ofBeckley Award isapproaching andthe person who isresponsible forCouncilman Dunlap being appointed totheHistoric Landmark Commission in 2015 and former Mayor, Mr.BillObrien andhiswife, Lynn (who have done such great work for this community) willbehonored. Councilman Dunlap saidthat itisnicetoseeaformer Mayor receive this award. Councilman Dunlap encouraged everyone togettickets andattend onDecember 12, 2022. Hesaid it willbevery nice toseeBillandLynn behonored atthisevent. The Mayor saidthat BillandLynn could not bemore deserving ofthisaward. Councilman Sopher saidthatitisnicetoseeacrew getting ready topaint theWildwood House. The Mayor saidhe’salways beenproud ofthe Wildwood House. PUBLIC COMMENTS: The Mayor announced that ifcalling inbyphone dial *3toraise your hand. If connected bycomputer, click the “hand icon” onyour participants panel tospeak. Heasked ifthere areany public comments. With there being nopublic comments, amotion made byCouncilman Sopher and seconded byCouncilwoman Bullock was unanimously approved byCouncil toadjourn at7:25p.m. Mayor Recorder-Treasurer