City Council

409 S. Main Street City of Harrisonburg Harrisonburg, VA 22801 Meeting Minutes - Final City Council Mayor Deanna R. Reed Vice-Mayor Richard A. Baugh Council Member Ted Byrd Council Member George Hirschmann Council Member Christopher B. Jones Tuesday, April 25, 2017 7:00 PM Council Chambers 1. Roll Call Present: 5- Mayor Deanna R. Reed, Vice-Mayor Richard Baugh, Council Member Ted Byrd, Council Member Christopher B. Jones and Council Member George Hirschmann Also Present: 5- City Manager Kurt Hodgen, Deputy City Manager Ande Banks, Deputy City Clerk Pam Ulmer, City Attorney Chris Brown and Police Chief Stephen Monticelli 2. Invocation Council Member Byrd offered the invocation 3. Pledge of Allegiance Mayor Reed led the Pledge of Allegiance. 4. Special Recognition Mayor Reed recognized Charles Graves who is retiring after 44 years of service with WHSV Radio. 5. Consent Agenda (any item placed on the consent agenda shall be removed and taken up as a separate matter, if so requested by any member of Council, otherwise all items will be voted on with one (1) motion) A motion was made by Vice Mayor Baugh, seconded by Council Member Jones to approve the consent agenda as presented. The motion carried with a recorded roll call vote taken as follows: Yes: 5- Mayor Reed, Vice-Mayor Baugh, Council Member Byrd, Council Member Jones and Council Member Hirschmann No: 0 5.a. Minutes from April 11, 2017 Meeting City of Harrisonburg Page 1 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 This Minutes was approved on the Consent Agenda. 6. Public Hearings 6.a. Continued presentation on the proposed FY2017-2018 budget Mayor Reed read a Declaration pursuant to the Virginia Conflicts of Interest Act for agenda items 6a and 7a. Mayor Reed declared she is able to participate in the transactions fairly, objectively and in the public interest. City Manager Hodgen reviewed the population growth from 1990 through 2016, and noted if the current pace continues, population will reach 60,000 within the next five years. City Manager Hodgen stated unfortunately as population grows the city revenues don’t grow correspondingly. City Manager Hodgen noted revenue is showing natural growth per year but not enough to balance out the additional needs. City Manager Hodgen reviewed the population estimates and comparables reflecting the city as the second highest increase in population over the last ten years, and reflects the current or proposed tax rates for the city and surrounding localities. City Manager Hodgen reviewed the general fund revenues expected for the next fiscal year, with the total reflecting the increases proposed in real estate ($.05), meals and lodging tax (.5%) and the utility tax rate increases. City Manager Hodgen stated there is nearly $1.5B in tax exempt property in the city including properties owned by JMU, VDOT, churches etc., which equates to $12.5M in lost real estate revenue to the city. City Manager Hodgen reviewed General Fund Expenditures, and notes Schools is the largest single expenditure, not only for the city, but other localities as well, followed by Public Safety. City Manager Hodgen noted debt services which have grown significantly over the last ten years. City Manager Hodgen noted the total for all fund expenditures totals $242,239,718.00. City Manager Hodgen reviewed the history of the school appropriations and other funding, noting with the exception of FY 2013-14 city funding has increased. City Manager Hodgen reviewed the Councils Direct Support of Education figures and noted the city’s contribution in excess of what is required by the state is a pretty healthy contribution. City Manager Hodgen reviewed the items of impact affecting the proposed FY17-18 budget, including the increase in debt service and funding for schools, public safety, shared services, new traffic signal, salary adjustments, cost of healthcare and funding for the municipal building stabilization for a total of just under $6M. City Manager Hodgen stated there is about $2M in natural revenue growth, which includes assessment increases, meals and lodging taxes (without the proposed increase in rate) etc., which leaves the city with a $4M gap. City Manager Hodgen reviewed the tax and fee recommendations to balance the budget, which included a five cent increase in the real estate tax, half a percent increase in meals and lodging tax, and increase in water, sewer and utility taxes . City Manager Hodgen stated the increase in real estate tax would generate approximately $2M in additional revenue, meals and lodging tax would generate $1.2M, and the utility tax would generate just under $900K. City of Harrisonburg Page 2 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 City Manager Hodgen reviewed what items the proposed budget would provide for and the cost drivers beyond FY17-18, which currently is shorter than it has been over the past few years, however, none of the items listed are generally inexpensive. Council Member Jones asked if any if any rebates or reductions to the budget or things that have come in that may not have been seen before. City Manager Hodgen stated there are a few adjustments that can be made based on information from outside agencies such as reduction of funds to Middle River Regional Jail (MRRJ), the Juvenile Detention Center, the ECC and the cost of traffic signal (JMU is willing to contribute to that project) for total of $180K. Council Member Jones acknowledged the citizens attending the meeting and noted the main reason for their attendance is the funding for the school system . Council Member Jones noted based on the information from the Vice Mayor and the superintendent of schools, that came out of the liaison meeting, he is prepared to propose funding to the schools be increased an additional $ 800K provided the real estate tax increase be raised to seven cents instead of the proposed five cents. Council Member Jones stated he cannot in good conscience deny help to the schools now. Council Member Jones stated he is aware the Harrisonburg Police Department (HPD) has been under-staffed, and the Harrisonburg Fire Department (HFD) needs new fire engine, and agrees to those needs, but wanted to remind everyone we are all in this together. Council Member Jones stated when something needs to be fixed, it’s all part of the process and references the Thomas Harrison Middle School HVAC issue and how quickly it was resolved. Mayor Reed reiterated Council Member Jones’ comment that we are in this together, however, there has to be some sort of compromise on both sides, every council member knows the city has an amazing school system. Mayor Reed stated she has received the emails and calls and they have been heard, and council is working together to make the best decision, although they may be tough, for the city and the city’s children At 7:29 p.m. Mayor Reed closed the regular session and called the first public hearing to order. A notice appeared in the Daily News-Record on Tuesday, April 18, 2017. Dr. Scott Kizner, superintendent of Harrisonburg City Public Schools (HCPS), 111 Blue Stone Hills Drive, stated he is aware council has a difficult job balancing the needs of the entire city; he has a similar task with the eight schools, and agrees that what is good for the school system is good for the city. Dr. Kizner stated the City School Board adopted a budget that was $5,598,000 above what they are receiving this year, the City Manager proposed a budget that is $ 4,460,000, leaving a $1,138,000 reduction from what was adopted by the school board. Dr. Kizner noted the largest expenses are the opening of two schools, staffing them, increases in insurance, which comes out to $4,168,000 which leaves the school City of Harrisonburg Page 3 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 board $292,397 to do what is felt to be critically important, such as a 2% salary increase, and new positions that will be needed to meet growth needs. Kathleen Holter, 928 Oakhill Drive, president of the Harrisonburg Education Association, thanked council for supporting education. Ms. Holter stated she has been a teacher for 31 years, 10 year resident of the city, and she is saddened by reduction in the budget. Ms. Holter feels the kids will be receiving less services, be in larger classrooms and shefeels they deserve better. Ms. Holter noted Dr. Kizner and staff cut approximately $3M from what was requested by the schools directly, and feels the proposed positions to be filled are needs, not wants. Ms. Holter noted in her third grade class there are children from ten different countries and teachers and staff are doing everything they can to insure the success of each child, often with less money as local funding per pupil expenditure has declined by $2K per student. Ms. Holter stated we are obligated to teach every child no matter how crowded, and hopes the city sees the need, the children are dependent upon it. Council Member Jones asked Dr. Kizner if they can make it work with the proposed increase of $800K if the taxes are raised by seven cents. Dr. Kizner stated he would work with the school board to make it work. James “Bucky” Berry, 30 East Washington Street, stated his son attends Harrisonburg High School, thinks the teachers should get their two percent raise, but doesn’t agree with the city’s plan to increase city employees pay by one percent and an additional percent based on evaluations. Mr. Berry feels it should be a two percent across the board. Mr. Berry stated he is against take home vehicles being used for personal uses. Kathleen Taylor, 478 Longview Drive, principal of Stone Spring Elementary, stated she appreciates the balancing act council has to do to provide for the schools as well as the other city needs. Ms. Taylor shared a story of a student, who despite challenges in academics and behavior had amazing results in his educational growth with the help of the staff through the programs available. Ms. Taylor noted the efforts of the school staff for all students to be successful is throughout the city’s school system. Ms. Taylor asked council to fund the budget as proposed by the school board and thanked council for their support. Steve Reich, 150 Ott Street, urged council to have an aspiration for something better. Mr. Reich stated he believes the budget proposed by the superintendent is insufficient, based on two ideas: The impacts on the budget going forward, such as a high school that is woefully inadequate because 12 years ago council didn't provide funding necessary to build a facility that had a long term vision; adequate tax increases, ours are low compared to other cities, which would help make the city a much more attractive place, which in turn increases property values that increases the value of the city over all. Mr. Reich stated that even though this costs more in the short term, the long term benefits outweigh the costs. City of Harrisonburg Page 4 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 Alice Perrine, 320 West View Street, student of Harrisonburg High, stated she feels the overcrowding in the classrooms, there is not enough food provided for the students, not enough counselors are available and declining quality of education due to the class sizes. Miss Perrine stated we have amazing students and faculty however feels they are not paid enough for the work they do. Miss Perrine stated she appreciates council and all they do to help the city, but feels without quality education we will not have a quality community or city. Matt Hassman, 220 3rd Street, stated as a property owner, tax payer and voter, he is willing to pay more in taxes to support schools and what the city needs. Margarita Rendon, 93 Blue Stone Hills Drive, and a home school liaison at HCPS, shared an analogy of educating the mind to a hurricane as to which part of the hurricane community chooses to live in. Ms. Rendon stated the US education system is ranked 13th in the world, and although she understands the city’s needs, education is essential to the future of this nation. Ms. Rendon stated she has seen firsthand how caring and professional our teachers are and need our full support. Barbara Reisner 324 Franklin Street, requests full support for the school boards recommended budget and stated she supports the increase in real estate taxes . Ms. Reisner stated she has noticed that all though local funding has increased for the schools the per pupil spending has decreased since 2000 by approximately $100 per year. Ms. Reisner stated our real estate taxes are significantly lower than similarly sized localities and if taxes are raised our debt load will decrease . Ms. Reisner stated she feels city revenues need to increase today to continue to plan for the future. Ms. Reisner stated the city should be proactive not reactive . Ms. Reisner stated by investing in our education system, we develop qualified workers who contribute to our economy making the city an attractive place for employers to start businesses and a desirable place to live and she urged council to provide quality services and prepare for the future. Allison Eanes, 242 East Water Street, 7th grade teacher at Thomas Harrison, read a letter by one of her former students Adreana Jimenez. The letter stated the budget cut will not only affect our teachers but the most vulnerable citizens of our society, the children, will take away from the STEM program, afterschool and extracurricular activities, education is a right not a privilege, and asks council to make the budget cut not as severe as originally proposed. Resident of 1030 Blue Ridge Drive stated she is new to the community, has five children, and shared her appreciation for the schools great efforts. She stated the children’s primary language was Arabic and French with little English and now the teachers have said her youngest daughter is gifted in English. She stated in her home country the education budget was always being cut, until too many problems arose, causing more costs incurred than funds saved from cutting education funding. City of Harrisonburg Page 5 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 Kaylene Butcher, 79 East Weaver, stated she is a mom with a child that has severe ADHD, his teachers now can take the time to work with him, his grades are phenomenal because of the teachers hard work, however, if the budget is cut, teachers will not have the time to help students that need help. Ms. Butcher stated she is willing to pay more taxes to insure the schools get the funding they need. Charles Blake, 1671 Park Lawn Drive, applauded council for opening two new schools, which come with additional operating costs. Mr. Blake stated he understands the budget is a balancing act, but equity needs to be carefully monitored, city employees are going to get a raise, and feels school employees should also get the same. Mr. Blake urged council to consider raising taxes, if not city employees should share the pay increase funding with the city schools. Weston Hatfield, 929 Oak Hill Drive, stated the reduction in the school budget proposed puts the idea of a 2% raise for the school employees in opposition to several other items that are important such as new positions, but he feels we need both. Mr. Hatfield stated our goal is not to just have a great system but to have the best system for the sake of our children, community, employer attraction, employees and teachers. Marjorie Kyle, 1102 Ridgewood Road, stated she feels that great schools are crucial for positive economic development, creating new high paying jobs and jobs for which our graduates can apply. Ms. Kyle noted Dr. Kizner’s presentation shows many improvements in the schools such as declining dropout rates, expansion of dual language programs and more community outreach programs . Ms. Kyle stated she wants to continue to be ranked as one of the top school systems and top places for teachers to teach. Ms. Kyle stated the work and dedication of faculty and staff of HCPS has been the driving success and feels they should be compensated fairly. Ms. Kyle stated reasonable class sizes are needed and we need to be a city that values education. Becky Deloni, 33 Laurel Street, requests council to aspire to fully fund the HCPS, feels the schools are stressed and believes taxes should be raised to cover the needs of education. Nasir Alsaadun, 2312 Kendall Lane, stated he came to the city as a refugee in 2008 he thought being a small city the education would not be that good for his children. Mr. Alsaadun stated his children’s english is getting better and better and never thought his children would be gifted as well. Mr. Alsaadun values the quality of education and help from HCPS, and hopes council supports the full budget requested by HCPS. Viktor Sokolyuk, 635 Circle Drive, stated he is in support of the Harrisonburg city schools, he is a father of four children, they have graduated from Harrisonburg High School and moved onto higher education and now are looking for jobs in the city. Mr. Sokolyuk has seen a lot of growth in the city, supports investment in the school system and urges council to provide the funding needed. City of Harrisonburg Page 6 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 Durmount Perry, 175 Logan Lane, special education teacher, stated he is in a classroom of 25 kids, 15 of which receive special services whether it be counseling, teaching, or therapy. Mr. Perry stated the teachers at Harrisonburg are doing it all and some will get burned out. Mr. Perry stated the teachers love what they do but need help. Mr. Perry stated the staff and faculty are very dedicated and HCPS needs councils support. Boris Ureata, 512 Green Street, stated full funding is needed, additional positions are needed. Mr. Ureata reflected on two years ago when the debate of a new jail was discussed. Mr. Ureata feels creative funding for Middle River Regional Jail was done, and feels the city can be creative now. Mr. Ureata stated our taxes are fairly low compared to surrounding localities therefore feels a tax increase is ok as the schools need the full funding requested. Michael Strawderman, 1055 Carriage Drive, teacher at Thomas Harrison Middle School, stated he appreciates the fact that council is considering raising taxes to fund the schools, and feels taxes can be raised more, reality is prices will always go up, if taxes aren't raised to fund city schools then drastic things need to be done; do we stop incoming new citizens, do we address low income housing moving in to old student housing that lowers our income revenue, can we do something about the homes owned by JMU possibly used as residences and classified as tax exempt. Vice-Mayor Baugh stated the State Legislature needs to be contacted about that, as we have no authority on the issue. Mr. Strawderman requested council fully funds the request from HCPS. Tim Bell, city resident, stated he feels the three groups affected by this budget are the teachers, the special needs kids and the higher achieving kids. Mr. Bell stated one of the biggest highlights in his daughter’s life was acceptance into the STEM Governors Academy at HHS. Mr. Bell feels unique possibilities such as this help our city produce future leaders on the national level in the STEM fields. Mr. Bell stated such programs could be negatively impacted by the budget proposal. Mr. Bell feels every effort must be made to not negatively impact the future of our students. Kristen Loflin, 282 Fairway Drive, stated we have a great diversity of needs within the city schools, and meeting minimum standards the state sets is not enough . Ms. Loflin stated low student to teacher and low student to counselor ratios are needed. Ms. Loflin stated the current budget has no frills, staff is doing all they can, feels staff will leave if they do not get the funding needed, pay raises and lower class counts . Andy Perrin, 320 West View Street, stated JMU only owns 29 properties in which staff live, and the amount of taxes the residents and students pay in the city outweigh the loss of real estate taxes. Kathy Sisson, educator, stated many alluded to a long term view being needed City of Harrisonburg Page 7 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 and is in favor of an increase in taxes and support our children. Ms. Sisson stated more and more students are being enrolled, and compared how things are different now than they were in the past, how children are more likely to attend school despite life circumstances. Ms. Sisson stated if we cheer for test scores going up, dropout rates going down and we have larger graduating classes, we cannot begrudge the funding of the positions and the programs that are absolutely necessary for those successes to occur. At 8:43 p.m., Mayor Reed closed the public hearing and the regular session reconvened. at 8:43 p.m. Meeting went into recess. See additional notes under agenda item after recess. . Recess At 8:44 p.m. Vice Mayor Baugh requested a five minute recess. Meeting reconvened at 8:50 p.m. 6. Public Hearings (continued) 6.a. Continued presentation on the proposed FY2017-2018 budget meeting returned from recess at 8:50 p.m. and conversation resumed. Vice Mayor Baugh motioned to move forward with the budget as presented with the exception of increasing the real estate tax from five cents to seven cents. Vice Mayor Baugh stated procedurally this is the most council can do tonight without any backtracking, re-advertising etc., Vice Mayor Baugh stated council was at this same stage last year, the budget was approved by 3-2 vote. Vice Mayor Baugh stated a budget is made up of projections and assumptions, the numbers are not carved in stone, and even if council went with the original proposed budget from the city manager, the subject would not be over, further reviews with school board and council would take place, the issue of the raises were never a concern, fine tuning may be needed to get there. Vice Mayor Baugh stated council and staff will continue to work with the school board, but no one knows what the world is going to look like in six months, and for the moment he is comfortable with where we are at now. Mayor Reed reiterated Kizner’s ability to work with an $800,000 increase by raising tax to 7 cent. Vice Mayor Baugh reviewed all proposed tax increases and noted the increase of real estate to seven cents rather than the proposed five cents. City of Harrisonburg Page 8 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 Council Member Jones asked if the city could do a six and a half cents tax rate and cover the rest with cash. Council Member Byrd reviewed what the additional two cents would generate versus one and half cent. A motion was made by Vice Mayor Baugh, seconded by Council Member Jones, to approve the FY18 Budget reflecting amending the real estate tax increase to seven cents, all else is approved as presented. The motion carried with a recorded roll call vote taken as follows: 6.b. Consider amending Section 4-2-62 (Levy of Tax; amount) and Section 7-4-1 (Schedule of rates and charges generally) of the City Code of Harrisonburg, Virginia City Attorney Chris Brown stated the proposed budget includes an increase to the city’s consumer utilities taxes, which include electric, natural gas and water . Attorney Brown reviewed the chart that summarized the changes, for both residential and commercial users there is a mathematical formula for each, and noted the residential cap will be increased to $2.00 a month and for commercial and industrial users the cap will be increased to $20.00 per month. Attorney Brown noted this increase will generate approximately $895K in additional projected revenue and these taxes have not increased since 2001. At 9:04 p.m., Mayor Reed closed the regular session and called the second public hearing to order. A notice appeared in the Daily News-Record on Saturday, April 15, 2017 and Saturday, April 22, 2017. Ian, 275 Old South High Street, asked if the increase was just for a user. City Attorney Brown stated that was correct. At 9:04 p.m., Mayor Reed closed the public hearing and the regular session reconvened. A motion was made by Council Member Byrd, seconded by Council Member Hirschmann to approve the Ordinance Amendment as presented. The motion carried with a recorded roll call vote taken as follows: 6.c. Consider granting a waterline easement over public property to Jacktown Holdings, LLC City Attorney Chris Brown, presented a request from Jacktown Holdings, LLC, owner of the building of Jack Brown’s Burger Joint and Billy Jack’s, for a waterline easement for a sprinkler system. Attorney Brown noted the 2nd floor of that building needed a sprinkler system and the owner decided to install the sprinklers in the restaurants as well. Attorney Brown reviewed the location of the city waterline and the path of the proposed easement. Attorney Brown noted that should council approve this a plat will be prepared and a waterline easement agreement will be drafted, stating the property owner will repair the damage to the pavement for this waterline, and will maintain the private waterline and any repairs City of Harrisonburg Page 9 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 associated with such a waterline. Attorney Brown noted before issuance of this easement a final review will be done by Public Utilities, Public Works and the building official. At 9:07 p.m., Mayor Reed closed the regular session and called the third public hearing to order. A notice appeared in the Daily News-Record on Monday, April 18, 2017 and Monday, April 24, 2017. There being no one desiring to be heard, Mayor Reed closed the public hearing at 9:08 p.m., and the regular session reconvened. A motion was made by Council Member Byrd, seconded by Vice Mayor Baugh, to approve the granting of a waterline easement over public land as presented. The motion carried with a recorded roll call vote taken as follows: 7. Regular Items 7.a. Presentation of the Harrisonburg City Schools proposed FY18 budget Dr. Scott Kizner, superintendent of Harrisonburg City Public Schools (HCPS), thanked council for the motion on the budget, and feels he has the responsibility to be the advocate for the school system and the $800K is remarkably appreciated, but would like to work with council at looking at ways that will not be tied to a tax rate increase to reach the additional $300K requested. Dr. Kizner noted decisions need to be made now rather than in December as the school system is in need of personnel that need to be hired to meet enrollment needs. Dr. Kizner stated he will present the Average Daily Membership (ADM) and hopes that will reflect on council how the presentation will help get closer to the additional $ 300K requested. Dr. Kizner agreed we are all in this together and feels we have a great school system. Dr. Kizner stated the school budget is aligned with their mission and core beliefs: equity, learning, excellence, together (collaboration) and forward (continuous improvement). Dr. Kizner stated they started working in 2106 with staff, over $2M in requests received from staff were not presented to the school board because it could not be supported. Dr. Kizner reviewed recent accomplishments, history of on-time graduation rate, advance diploma recipient rate, and dropout rate. Dr. Kizner reviewed future challenges including growth and facility limitations, mandates, diversity, etc., and enrollment growth and projections from FY2009 through FY2022. Dr. Kizner noted the redistricting of over 1000 students with minimal upset families. Dr. Kizner reviewed new opportunities for 2017-2018, including expansion of STEM offerings, language academies, dual immersion programs, expansion of Teacher Residency Program with James Madison University (JMU) to name a few. City of Harrisonburg Page 10 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 Dr. Kizner provided a handout reflecting the budgeted ADM, and enrollment versus projected ADM for March 31st, 2017 and noted for FY16-17 the school board projected at a one percent difference. Council Member Byrd stated when parents are told funds are being given back to the city the funds are coming from the Virginia Department of Education. Dr. Kizner stated the ADM grew five percent, which equals 260 students. Dr. Kizner noted the $1,948,637 in state revenue is driven by enrollment. Dr. Kizner reviewed the total revenues by source, salary and benefit increases, new positions needed, summary of personnel and non-personnel requests. Mayor Jones asked if Elon Rhodes staffing was obtained from staffing already on hand . Dr. Kizner replied, stating everything with the exception of a new custodian. Dr. Kizner stated the biggest increase in the proposed budget was due to transportation. Council Member Jones asked if staff will use the funds set aside for supply allocations. Dr. Kizner stated yes they will and could probably use more. Dr. Kizner reviewed the Non-personnel increases and explained some of the programs such as preschool agreements with private schools. Dr. Kizner reviewed total expenditures by function, noting transportation is the largest increase at 12.54%. City Manager Hodgen asked Dr. Kizner why he thinks the transportation budget is increasing this year. Dr. Kizner replied because we have more kids and two new buildings. City Manager Hodgen stated the city had to hire seven new school bus drivers, and should receive the pay increases, also purchased additional busses, and states if we operated as many other cities in Virginia, the full cost of pupil transportation would be with the school. Further discussion took place regarding the transportations costs. Dr. Kizner reviewed the total per pupil expenditures, and noted the price per lunch meals increased by 10 cents per meal. Dr. Kizner summarized by saying we do not want to lose site of what is important, 6100 plus children, including pre-school, and the great pride in our school system. Council Member Byrd asked how many classrooms will Blue Stone bring online. Dr. Kizner stated Blue Stone will open up with 640 students, Keister will open up with significantly less. Council Member Byrd stated he was trying to figure out how student to teacher ratio increased when an additional 40 classrooms will be added. Dr. Kizner, stated 5th grade teachers are moving to the Elementary Schools, 6,7 & 8th teachers will still be there, with more children, more classrooms with the same amount of teachers does not reduce student/teacher ratio. This Presentation was received and filed. 7.b. Consider write off of delinquent utility billing accounts Mike Collins, Director of Public Utilities, presented a request to write off uncollectable accounts for FY15 in the amount of just over $26K which reflects a small percentage of what was collected. Mr. Collins noted staff will continue to collect and follow normal procedures for delinquent accounts. City of Harrisonburg Page 11 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 A motion was made by Council Member Byrd, seconded by Vice-Mayor Baugh, to approve the write off of deliqanuent utility billings as presented. The motion carried with a recorded roll call vote taken as follows: Yes: 5- Mayor Reed, Vice-Mayor Baugh, Council Member Byrd, Council Member Jones and Council Member Hirschmann No: 0 7.c. Report to City Council the Sanitary Sewer Management Plan. Mike Collins, director of Public Utilities, presented the Harrisonburg Sanitary Sewer Management Plan and stated the raw water supply has an impact on the water rates. Mr. Collins noted the sewer system will need some attention, which is about $119M worth of assets under the ground, with a net book value of $ 74M and the annual depreciation is $1.2M. Mr. Collins reviewed what drives the annual sewer budget, and noted this year an increase for water is proposed and because concentration on the water system over the next few years, the larger part of any sewer funding is being set aside until FY2022. Mr. Collins reviewed the eight objectives for the sanitary sewer management plan : Forecast City Build-out sales, Harrisonburg Rockingham Regional Sewer Authority (HRRSA) flow capacity, HRRSA POC (pollutant of concern) Capacity, HRRSA Interceptor, city owned interceptors, asset risk management, infiltration and inflow abatement, sewer system integrity, and financial benchmarks. Mr. Collins stated the non-city interceptors have not been replaced since the plant was built, and although the flow has increased, the interceptors have not. The cost associated with that upgrade could be $90M, of which the city would cover 83%. Mr. Collins stated a contract engineer has been hired to help with analysis of the city ’s interceptors, and possible upcoming costs could include sewer treatment capacity of $20M, interceptor program of $90M and not sure about the interceptor costs within the city as of yet, which is all required to increase the raw water supply. Mr. Collins noted pipe lines usually last approximately 100 years, the first ones in the city were placed in 1898, and feels a plan to stay ahead of any issues, is to engage in an asset management plan, which he hopes to have that set up in the near future. Mr. Collins reviewed the financial benchmarks; the city received a check mark on the customer rate index, the liquidity and the debt coverage all of which reflect the utility rate has room to grow based on household median income. Mr. Collins noted because the rates on the sewer budget will not be increased, liquidity will not increase until funding goes back into the sewer system rather than the water system. Mr. Collins stated FY18 reflects an increase of 20 cents for water driven primarily to cover the debt service for the pipeline only for the Eastern Raw Water Line, and the five cents increase for sewer was a chosen number to avoid funds getting to City of Harrisonburg Page 12 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 far behind. Mr. Collins noted our rate structure is considered a declining block rate structure, the more that is used the less expensive it is, and if interested, a study can be done to seek other alternative ways of charging, as this is an antiquated system. Council Member Byrd stated this conversation took place three years ago to start the process This Report was received and filed. Recess at 10:24 p.m. Mayor Reed requested a recess. At 10:29 p.m. the meeting reconvened. 8. Special Event Application Requests 8.a. Consider a special event application for the EMU Graduation on April 30, 2017 Jeremiah Jenkins, special events coordinator for Harrisonburg Downtown Renaissance (HDR), presented a special events application on behalf of Eastern Mennonite University for minor assistance from public works for April 30, 2017 commencement ceremony. Mr. Jenkins noted a small section of Park Road will be closed and a message board will be utilized and recommended to council with approval by the committee. A motion was made by Vice Mayor Baugh seconded by Council Member Hirschmann, to approve the special events application as presented. The motion carried with a recorded roll call vote taken as follows: Yes: 5- Mayor Reed, Vice-Mayor Baugh, Council Member Byrd, Council Member Jones and Council Member Hirschmann No: 0 8.b. Consider a special event application for the 2nd Annual Rotary Strawberry Festival on May 20, 2017 Jeremiah Jenkins, special events coordinator for Harrisonburg Downtown Renaissance (HDR), presented a special events application for the Second Annual Rotary Strawberry Festival to be held on May 20, 2017. Mr. Jenkins noted the city hall parking lot will be used, the grassy field next to Turner Pavilion as well as Warren Street will be use. The event will not require any police services but will require Public Works assistance in road closures. Mr. Jenkins noted that since this event is raising money for entities outside of the city, it was recommended they incur the fees from Public Works to be estimated at $250.00, which was City of Harrisonburg Page 13 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 accepted by the organizers. Mr. Jenkins stated this is recommended to council with approval by the committee. A motion was made by Vice Mayor Baugh seconded by Council Member Byrd, to approve the special events application as presented. The motion carried with a recorded roll call vote taken as follows: Yes: 5- Mayor Reed, Vice-Mayor Baugh, Council Member Byrd, Council Member Jones and Council Member Hirschmann No: 0 9. Other Matters 9.a. Comments from the public, limited to five minutes, on matters not on the regular agenda. (Name and address are required) Tom Domonoske, 461 Lee Avenue, thanked council for their service to the community, and was impressed by the people in the crowd that knew they would get a chance to talk, and no one was upset. Mr. Domonoske stated back in 2015 the number of incarcerated individuals at Middle River Regional Jail was 439 which has increased to 554 as of March 2016, which equals a 26% increase. Mr. Domonoske feels a change, led by the leaders on how we view people who end up on the wrong side of the law, will help change this trend, as they are people that need education rather than incarceration. Diane Orndoff, 22 East Market Street, stated the board for Middle River Regional Jail (MRRJ) has decided not to go forward with health care accreditation consideration. 9.b. City Council and Staff Mayor Reed stated the Food truck rally will be held on May 13 from 11a.m. to 3p.m. at the Simms Center; May is Bike Month and for a complete list of events visit the website of the Shenandoah Valley Bicycle Coalition; Congratulations in the coming weeks to all of the college graduates from Eastern Mennonite University and James Madison University; and National Police Week is recognized May 14 through 19, 2017. Council Member Byrd stated he was out of the country during last meeting and thanked council for carrying on and setting up for a great meeting this evening. Council Member Jones mentioned Kurt Boshart is retiring and his event is Friday, April 28, 2017 and thanked the City Manager for his efforts and wishes he wasn ’t leaving. 10. Boards and Commissions City of Harrisonburg Page 14 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 10.a. Stormwater Advisory Committee A motion was made by Council Member Byrd, seconded by Vice Mayor Baugh to re-appoint Rob Alexander and Eldon Kurtz to the Stormwater Advisory Committee. The motion carried with a unanimous voice vote. 11. Closed Session 11.a. Virginia Code Section 2.2-3711(A), under: Subsection 1 for a discussion and consideration of prospective candidates for employment or promotion, and the resignation or retirement of specific City Employees and Subsection 29 for a discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offers, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the pubic body At 10:45 p.m., the closed session ended and the regular session reconvened. City Attorney Brown read the following statement, which was agreed to with a unanimous recorded vote of Council: I hereby certify that to the best of my knowledge (1) only public business matters lawfully exempted from open meeting requirements under Chapter 37 of Title 2.2 of the Code, of Virginia, 1950, as amended, and (2) only such public business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the closed meeting by the City Council. A motion was made by Council Member Byrd, seconded by Vice Mayor Baugh, to enter into closed session as authorized by the Virginia Freedom of Information Act, Virginia Code Section 2.2-3711(A), under: subsection 29. The motion carried with a recorded roll call vote taken as follows: Yes: 5- Mayor Reed, Vice-Mayor Baugh, Council Member Byrd, Council Member Jones and Council Member Hirschmann No: 0 12. Adjournment At 10:45 p.m., the closed session ended and the regular session reconvened. City Attorney Brown read the following statement, which was agreed to with a unanimous recorded vote of Council: I hereby certify that to the best of my knowledge (1) only public business matters lawfully exempted from open meeting requirements under Chapter 37 of Title 2.2 of the Code, of Virginia, 1950, as amended, and (2) only such public business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the closed meeting by the City Council. At 10:45 p.m., there being no further business and on motion adopted, the meeting was adjourned. City of Harrisonburg Page 15 Printed on 5/10/2017 City Council Meeting Minutes - Final April 25, 2017 ________________________ ________________________ DEPUTY CITY CLERK MAYOR City of Harrisonburg Page 16 Printed on 5/10/2017