City Council

CITY OF FREDERICKSBURG, VIRGINIA HON. MARY KATHERINE GREENLAW, MAYOR HON. WILLIAM C. WITHERS, JR., VICE -MAYOR, WARD TWO CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street HON. CHARLIE L. FRYE, JR., WARD FOUR Fredericksburg, Virginia 22401 Council Work Session April 16, 2019 Wastewater Treatment Plant Tour Budget Discussion on Water and Sewer City Council Budget Propositions The Council of the City of Fredericksburg, Virginia held a work session on Tuesday, April 16, 2019, beginning at 4:00 p.m. at the Wastewater Treatment Plant and 5:30 at City Hall in the Conference Room. Council Present. Mayor Mary Katherine Greenlaw, Presiding. Vice-Mayor William C. Withers, Jr., Councilors Kerry P. Devine, Timothy P. Duffy (via phone), Charlie L. Frye, Jr. (5:22), Jason N. Graham and Matthew J. Kelly. Also Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager Doug Fawcett, City Attorney Kathleen A. Dooley, Budget Manager Deidre Jett, Finance Director Robyn Shugart, Public Works Director David King, Assistant Director of Public Works Marty Schlesinger and Clerk of Council Tonya B. Lacey. Others Present. Edward Donahue, President and Mike Maker, Senior Manager for Municipal & Financial Services Group. Wastewater Treatment Plant Tour. Assistant City Manager Fawcett took Council and staff on a tour of the wastewater treatment facilities at 700 Beulah Salisbury Drive. The tour was taken in order to give a better understanding of the facility. Budget Discussion on Water and Sewer. Budget Manager Jett introduced Mr. Donahue and Mr. Maker from Municipal & Financial Services. She said their group was selected to perform the water sewer rate study and management study. Assistant City Manager Fawcett stated that the numbers he used in his presentation were the numbers from the 6 year Capital Improvements Plan (CIP). He said the numbers being used were the best current numbers and will change to a degree before the contract is awarded. 1  Mr. Fawcett presented a PowerPoint and in his presentation he reviewed the Sanitary Sewer System, the current situation at the Fredericksburg Treatment Facility, the Spotsylvania FMC Facility, and the Spotsylvania Massaponax Facility, Evaluation of Consolidation Options, estimated capital costs for the preferred option, Motts Run Water Treatment facility and estimated City Capital Costs for the renovation and expansion of the Motts Run Water Treatment Facility. (See Attachment I for more information) Mr. Fawcett stated that they were aware of the City’s current debt and they would try to get the cost down and to spread the payments out. Councilor Kelly asked what the cost would be for if the City went on its own and Mr. Fawcett explained that the cost would be close to the cost of consolidation option. He said there were many other reasons staff favored consolidation over going on our own. Councilor Kelly asked if the City went on its own would the county still have to go through the City’s system and Mr. Fawcett explained that it would be costly for them to divert around the City’s system because the two systems are so connected. Mr. Maker gave a PowerPoint presentation on the Water and Sewer Rate Study. In the presentation he discussed the Guiding Principles and Objective, flow of funds, factors affecting rates and charges, what is the revenue requirements, revenue requirements vs revenue-water, revenue requirements vs. revenue-sewer, recommended bimonthly water charges, recommended bimonthly sewer charges, median user-6700 gallons bimonthly charges, combined monthly bill impact, combined monthly bill comparison, rates and charges recommendations, reserve balance-water, reserve balance-sewer, availability fees and management analysis. (See Attachment II for more information). Mr. Donahue added that the model created would be the City’s and it should be used every year to determine the increase. He said they recommend small gradual rate increases so the residents are not being hit with large rate increases, but once the rate is where it needs to be there should be small increase of two percent. Ms. Jett asked Mr. Maker to explain why they have reserves and Mr. Maker explained that when you go to a bond agency it is important to have reserves because it makes it more favorable to the rating agencies. Councilor Kelly asked if the maintenance was lifecycle or was it being done as problems come up. Mr. Fawcett said there has been significant investment in the system and he said they are not addressing things as they break. Much of the spine has been upgraded and they are being replaced a little bit ahead of its lifecycle. Councilor Kelly asked if there was a way to get ahead of this so that there are no major issues popping up. Mr. Donahue said they are trying to provide the 2 revenues with their recommendation to take care of the core issues. He also recommended adopting multiple years and he said the larger commercial properties would appreciate it because it makes it easier for budgeting. Mayor Greenlaw asked how the Council would adopt a rate increase every year and Mr. Donahue suggested that it could be done by a resolution or ordinance which would state the increase for every year. He said if the projections stay true it would not have to change but if the projections change the rates would need to be adjusted. Mr. Baroody clarified that as of right now staff was only looking for approval of one year because of the uncertainty of the various other pieces they would not be able to suggests adopting multiple years. Mr. Fawcett noted that when the Motts Run plant opened the Council at the time adopted in a single vote the increases and they automatically went into effect each year but if there needed to be a change it could be done so through an ordinance. Ms. Jett stated that staff had considered the multi-year increases but due to so many uncertainties they decided against it this year. City Council Budget Propositions. Mr. Whitley presented the changes to date, the first was moving the R-Board Landfill construction of Cell F3 back one year and second was the increase in the General Fund Revenues of $60,650 from the Compensation Board. (See Attachment III for more information). Councilor Kelly asked that additional funding for Fredericksburg City Public Schools for the five percent raises which totaled $300,000 to 400,000. Mr. Baroody added that Dr. Melton felt that he could meet the five percent raise if they were given an additional $400,000 along with the $1millon. Dr. Duffy disclosed that he was an Assistant Principle at James Monroe High School but that he could participate in the transaction fairly, objectively and in the public interest. Councilor Frye disclosed that his spouse works for the Fredericksburg City Public School but that he could participate in the transaction fairly, objectively and in the public interest. Proposition 1 – VCR Trail Pathway improvements Councilor Kelly asked if gas tax revenues could be used and Ms. Jett explained that every year they have VRE, PRTC FRED Transit and Stafford Airport. She said after they review funding for those they determine what they can program. Council agreed to move forward as long as they show the money source and it doesn’t come from gas tax funding. Proposition 2 – Allocating $250,000 in funding to improve African-American History – Mayor Greenlaw said they would be coming back with recommendations on this and she said the 3 City has to expand its African American history but she would like to know what the cost was going to be before allocating money. She said she would rather have a plan. Councilor Frye said this has never been done and he gave an example of the DeBaptiste land and there was no money available to do any type of signage on the property and had this money been available the signage could have purchased. Vice-Mayor Withers agreed that a marker should be placed on the DeBaptiste land but he suggested sending this to the Memorials Commission to determine what should be done. He also agreed with Mayor Greenlaw that there should be a plan before allocating the money. Councilor Kelly suggested putting a line item in the budget with a placeholder. Councilor Duffy suggested putting money aside to develop a plan in order to get some parameters on what it would cost. Mayor Greenlaw said that would be how some of the money would be spent. After some intense discussion the Council considered committing money on the balance sheet for African American History. Council adjourned temporarily at 6:56 p.m. to attend their budget public hearing meeting and they reconvened at 8:22 p.m. Councilor Frye said his personal feeling is that the City had done nothing on African American history, but he said the reality is that the City had done a few things such as the Martin Luther King, Jr. Bridge. He said he does not want to hold off on setting money aside because when things come up there is no funding available. Councilor Kelly asked if there was still some funding available for wayfinding signs and Ms. Jett said there was a small amount available for replacing signs. Councilor Devine also suggested the funding that was available for neighborhood improvements and she suggested the money could be used for signage to tell the stories in the neighborhoods. Council directed the staff to commit the money on the balance sheet for the African American history. Proposition 3 – Eliminating Assistant Commonwealth Attorney position – Councilor Kelly stated that every year the City was taking on more and more of the state’s burdens and now they are taking local money to pay for state problems. He said the City had nineteen positions that were equally as important and we have to put the City’s needs on hold because the City has to pay for the States position. He said the City must say no. After some discussion majority of Council did not agree with eliminating this position. 4  Proposition 4 – Holding $1 million in funding for designing the expansion for Lafayette Upper Elementary School for school capacity needs – Councilor Kelly asked how the City would proceed on dealing with the school capacity. Council agreed to deal with the funding portion. Council agreed with this proposition. Proposition 5 – Additional funding for Schools for teacher raises - Councilor Kelly said he had no issue with giving the funds to the schools but he said there were other issues that would need to be addressed such as a biennial budget, fund balance and issues with how they are using their funding. Vice-Mayor Withers said it was not only the raises but the positions that the standards call for so he was in favor of an extra penny towards schools. Councilor Devine said she supports the teacher’s raises but her concern was whether the funding would go towards teacher raises. She said she would like more data on the programs that are very costly and she would like a better understanding of those costs in the budget. Councilor Devine was very supportive of rewarding the teachers for their hardwork. Mr. Baroody read Dr. Melton’s statement that he would commit to preserve the five percent raise and Councilor Duffy asked that staff communicate to Dr. Melton that the Council would like all staff to mean teachers, bus drivers, custodians and nurses. He understood that it would be up to the School Board but he hoped they would respect the Council’s decision. Mr. Whitley said with the addition of Proposition 5 this would raise the tax rate to $0.85. Councilor Duffy thanked the City Manager for increasing funds in the park maintenance to help with park maintenance. Mr. Whitley briefly reviewed the amendment to the elderly and disabled tax relief program see Attachment V for more information. Adjournment. There being no further business to come before the Council at this time. Mayor Greenlaw declared the session officially adjourned at 9:05 p.m. _Tonya B. Lacey _______ Tonya B. Lacey Clerk of Council City of Fredericksburg 5