City Council

Minutes from the Petersburg City Council meeting held on: May 16, 2017 -1– ______________________________________________________________________________ The regular meeting of the Petersburg City Council was held on Tuesday, May 16, 2017, at the Union Train Station. Mayor Parham called the meeting to order at 6:30p.m. 1. ROLL CALL: Present: Council Member Charles H. Cuthbert, Jr Council Member Annette Smith-Lee Council Member Treska Wilson-Smith Council Member Darrin Hill Vice Mayor John A. Hart, Sr. Mayor Samuel Parham Absent: Council Member W. Howard Myers Present from City Administration: Interim City Manager Tom Tyrrell City Attorney Joseph E. Preston Clerk of Council Nykesha D. Jackson, CMC 2. CLOSED SESSION: City Attorney Joseph Preston stated that City Council will now move to go into closed session for one purpose pursuant to Section 2.2-3711.A (3) of the Code of Virginia, 1950 as amended. He stated that council will be in closed session for discussion and consideration of the disposition of publicly held property specifically the Roper Lumber site located at 113 and 119 Pocahontas Street including the warehouse and the disposition of the Titmus Optical Building located at 1004 and 1015 Commerce Street, where discussion in an open meeting would adversely affect the bargaining position or negotiation strategy of the City of Petersburg. Council Member Hill moved that the City Council go into closed session for the purposes noted by the City Attorney. The motion was seconded by Vice Mayor Hart. There was no discussion on the motion, which was approved on roll call vote. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Absent: Myers City Council entered closed session at 6:32 p.m. CERTIFICATION: Mr. Preston stated that City Council now moves to come out of closed session and certify that only public business matters lawfully exempted from an open meeting requirement pursuant to the Virginia Freedom of Information Act and only such business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the closed meeting. Council Member Hill made a motion to return City Council into open session and certify the purposes of the closed session. The motion was seconded by Council Member Smith-Lee. There was discussion on the motion, which was approved on roll call vote. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Absent: Myers 17-R-23 A RESOLUTION CERTIFYING, AS REQUIRED BY THE CODE OF VIRGINIA, SECTION 2.2- *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -2– ______________________________________________________________________________ 3712, THAT TO THE BEST OF EACH MEMBER’S KNOWLEDGE, ONLY PUBLIC BUSINESS MATTERS LAWFULLY EXEMPTED FROM OPEN MEETING REQUIREMENTS OF VIRGINIA LAW WERE DISCUSSED IN THE CLOSED SESSION, AND ONLY SUCH PUBLIC BUSINESS MATTERS AS WERE IDENTIFIED IN THE MOTION CONVENING THE CLOSED SESSION WERE HEARD, DISCUSSED, OR CONSIDERED. 3. MOMENT OF SILENCE: a. Clerk of Council, Nykesha D. Jackson, led council and the audience in a moment of silence. 4. PLEDGE OF ALLEGIANCE: a. Clerk of Council, Nykesha D. Jackson, led council and the audience in the pledge of allegiance. Mayor Parham stated “Today’s Positively Petersburg story is a history lesson about Dr. Florence Farley who has a talent for being ‘the first’ of many endeavors. Dr. Farley was the first African American woman to become the Mayor of a City in the Commonwealth of Virginia where she served as Mayor here in Petersburg beginning in 1984. She has degrees from Virginia State and a Ph. D from Kent University – each in psychology. Commissioned as a second lieutenant in the United States Women’s Army Corps, Farley became the first African American female training officer right here at Fort Lee. Dr. Farley was the Chief Psychologist at Central State Hospital and was the first African American clinically licensed psychologist in the Commonwealth of Virginia; and if that isn’t enough firsts, she began her political career in 1973 and was the first woman elected to the Petersburg City Council and was a member of Virginia’s first majority black City Council. I would like to recognize and honor Dr. Florence Farley for her service to Petersburg and her many accomplishments of being first. Let’s give a round of applause for Dr. Florence Farley.” 5. PROCLAMATIONS/RECOGNITIONS: a. A Proclamation designating May 14-20, 2017, as National Police Week, and May 15, 2017, as Peace Officers Memorial Day. BACKGROUND: National Police Week, which occurs each year during the week in which May 15th falls, recognizes the service and sacrifice of U.S. law enforcement. Established by a joint Resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others. National Police Week is a collaborative effort of many organizations dedicated to honoring America’s law enforcement community. Principal organizers of National Police Week are: National Law Enforcement Officers Memorial Fund (NLEOMF), which sponsors the annual Candlelight Vigil at the National Law Enforcement Officers Memorial; Fraternal Order of Police/Fraternal Order of Police Auxiliary (FOP/FOPA), which organize the Peace Officers Memorial Day Service at the U.S. Capitol; and Concerns of Police Survivors (C.O.P.S.), which holds the National Police Survivors’ Conference. RECOMMENDATION: Mayor Parham read and present a proclamation. Mayor Parham read and presented the proclamation. He stated that they will be having an event at the police headquarters at 2:00pm on tomorrow. He stated that he encourages all to attend. 6. COMMUNICATIONS/SPECIAL REPORTS: a. City Manager’s Report *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -3– ______________________________________________________________________________ i. On June 6, 2017, at the regular council meeting a public hearing will be held on a proposed 14.3% water and waste water rate increase. This hearing was scheduled on May 6, 2017, during the City Council Work session. Mr. Tyrrell stated that he is glad that they got put to the front of the agenda for a lot of reasons. He stated that he wanted to make an introduction of the new Fire Chief and then turn it over for the financial report. He stated that the new Fire Chief is Dennis Rubin. Dennis Rubin, Fire Chief of Petersburg, stated that he appreciates the opportunity to be a part of a great organization. He stated that for the past two weeks he has been in the transition phase of finding a new home in the City of Petersburg and working closely with the fire department. He stated that they are in great hands and that they have great neighbors that surround them and work hard with them. He stated that it is truly an honor to be working with the organization. He stated that he would like to thank all of them and that he looks forward to working with everyone. Mayor Parham thanked Chief Rubin and stated to him “Welcome to Petersburg.” Mr. Tyrrell stated that they also have a new general manager for transit. He stated that his name is Charles Koonce. Charles Koonce, General Manager of Transit, stated that he appreciates the opportunity to lead the transit agency. He stated that they are great and that they will be greater and that he will not let them down. Mayor Parham thanked Mr. Koonce. Mr. Tyrrell stated that the newly assigned interim police chief is Brian Braswell. Interim Chief Braswell stated that he is honored to be in this position. He stated that he has been with the police department for 26 years which is more than half his life. He stated that he loves the City of Petersburg and that he is honored to be present as chief for a short period. Mr. Tyrrell stated that he would like to ask anyone that is part of the Workplace Matters Committee to please stand. He stated that this committee is a forum where they get the best ideas. He stated that the initiative is something that they tried in other places and that it has seemed to work. He stated that it provides a way for the people that does the work to get their ideas in front of the City for the organizational leadership so they don’t have to worry about all the noise in between. He stated that it forces the City Manager to clear his calendar once a month to listen to all the great ideas that they have. He stated that their first newsletter went out this week. He stated that he would like to thank the committee for all their hard work. He stated that Jack Berry will come up to do the utility update. Jack Berry, Interim Deputy City Manager, stated that he will give a brief update on the work in the utility department. He stated that there are a lot of efforts under way to strengthen the department and that there are a lot of activities that are underway. He stated that one is the Adhoc Committee. He stated that it is one of the hardest working groups that is exploring all aspects of the utility system. He stated that they will be prepared to make a recommendation soon. He stated that they have a meeting scheduled for May 18th for a special meeting. He stated to Ms. Jackson that they may have to change the meeting because one of the advisors that had planned on coming to the meeting has some medical issues. He stated that they may have to reschedule it again. He stated that they have two regular meetings scheduled on May 25th and then June 8th. He stated that the plan for the Adhoc Committee is to make a recommendation to City Council. He stated that they believe that they have all the information to make a recommendation on various alternatives that they have put in front of them. He stated that they will evaluate and rank the alternatives and prepare to make a *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -4– ______________________________________________________________________________ recommendation on their findings after their June 8th meeting. He stated that they talked about the new legislation on rates dealing with the water utility network. He stated that they have taken a lot of activity in the past week that have done by staff in the area. He stated that there were water line breaks and pumps to be fixed and flushed. He stated that there was one incident were 15 homes ad to boil water. He stated that there were leaks that were repaired as well. He stated that they have brought in experts to review the system regarding collections and meter readings. He stated that they have found an apartment complex with 90 units that were not being billed. He stated that there are people who were not getting billed. He stated that they are fixing things one by one. He stated that there were 15 cases that have been referred to the Commonwealth Attorney for prosecution of turning water back on when they were disconnected due to nonpayment. Mr. Berry showed a video of improper meters that need to be fixed. Mayor Parham asked Mr. Berry could he chime in on the collection rate. He stated that he noticed that the collection rate has gone up. Mr. Berry stated that he is hesitant to say exactly where they are with that. He stated that they are doing metric tracks on the collection and that they will be doing this every month. He stated that there was a good month last month where the collection rate was very high. He stated that this was because of old accounts that all hit at once. Council Member Hill stated that he has been receiving complaints on water billing sky rocketing. He stated that it is a lot of complaints coming from the Berkeley Manor area. He stated that he needs someone to look in that area and look at their pipe size as well. He stated that he received three calls today from that area. Council Member Cuthbert stated that he wants to speak about the rate increase for 14.3% that will be on June 6th. He stated that he is already getting phone calls. He stated that he has tried to explain the need to increase the water and wastewater rates. He stated that he thanks the Bobb Group on the report that they have brought about today. He stated that he is reluctant to keep taking more and more money from the citizens at the same time. He stated that on June 6th he is seriously thinking about making the motion to adopt the rate increase. He stated but to postpone the effective date of the increase until the Bobb Group presents council with feasible plan to increase the collection rate to the normal of 92% by January 1, 2018. He stated that he thinks that this is achievable. Mr. Berry stated that they hear him and that they promise to have a Comprehensive Plan with improving the billing and collection by June 30th. He stated that it is important that they get the resources that they need to fix the process, systems, technology, meters, pipes and pumps. He stated that if they can get their house in order than they can moderate future rate increases. Vice Mayor Hart asked when did the 13.4% start for the customers. He stated that he is getting a lot of confusion. Janell Sinclair, Utility Billing Supervisor, stated that the 13.4% increase will not take place on the billing until the June 26th billing due date. She stated that the increase that the customers have been seeing is because they have a one inch meter. She stated that on the last due date of May 1st the customers saw a $10 increase on the base rate of water. She stated that on this bill with a May 31st due date it had water and sewer. She stated that this was a combined increase for $33. She stated that on the next bill have the 13.4% increase. Mr. Berry stated that as they recall there were 1,700 customers that were not being billed with the rate ordinance that was approved. He stated that they were being billed the wrong amount. He stated that this is the correction that he was talking about. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -5– ______________________________________________________________________________ Vice Mayor Hart stated that maybe someone in his education of engineering he is not understanding. He stated that one gallon will be one gallon whether coming from a cup or a jug. He stated that no matter the size of the pipe it still should only be a charge for one gallon of water. He asked how is there a difference of cost if there is only one gallon of water being used. Mrs. Sinclair stated that per the City’s ordinance each meter has a different rate. She stated that this is the City’s ordinance that City Council mandates. She stated that if it is a 5/8 meter than the amount is $6.82 for a base rate. She stated that for a one inch meter the base rate is $17.06 for water. She stated that for sewer for a 5/8 meter it is $15.47 and for a one inch is $38.66. She stated that City Council can dictate the rates and full control. She stated that administration does not can change it. She stated that she is a City resident and that she was effected by the one inch rate. She stated that she did not know until she went home and saw her bill was for a one inch meter. She stated that she identifies and tries to explain that she does not can change anything. Mr. Berry stated that the meter is based on the house size, a pool, irrigation system and other things. He stated that this is a decision that is made when the house is looked at by the plumber for installation on what size meter you need. Vice Mayor Hart stated that his last comment is on the utility billing breakdown. He stated that there is a lot of misunderstanding on the utility billing. He stated that he knows that there is a water part and a sewage part and taxes and trash. He stated that he thinks that this needs to be cleared up as well. Mrs. Sinclair asked what exactly is it that they would like them to do. Vice Mayor Hart stated that if they can come out to a ward meeting to help the people to better understand the breakdown of the bills. Mrs. Sinclair stated that she will attend any ward meetings that she is requested at. Mr. Tyrrell stated that the last piece of utility billing is regarding an email that was received from him to council that was a draft of a letter that he will send to 1,716 customers that was effected by the change in billing. He stated that this is a go forward situation. He stated that this is a City ordinance. He stated that he does not have the authority to not retroactively collect the higher rate. He stated that they are doing an analysis of this for a recommendation for council. He stated that the error in billing existed for over a year before they caught it. Council Member Wilson-Smith stated that when it first came to the attention of council and they learned about the individuals that have not been billed accordingly, she specifically asked about retroactive billing. She stated that if she is not mistaken it was agreed upon that they would not do this. Mr. Tyrrell stated that they have not. He stated that this is an ordinance so they need to modify the ordinance to say this. Council Member Wilson-Smith stated that this is what they stated at the meeting. She asked when can they get this information. Mr. Tyrrell stated that they can do this on June 6th. Council Member Wilson-Smith asked can they have the ordinance before that date so that they may look over it. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -6– ______________________________________________________________________________ Mr. Tyrrell responded yes. He stated that they are not going to recommend retroactive billing. He stated that they believe that they can consider the industry for the size of the pipes. b. Monthly Financial Reports BACKGROUND: As the City approaches the end of Fiscal 2017, the performance of this budget becomes more obvious. The attached budget to actual report is through April 30, 2017, or 83% of the budget expended. Finance staff is working with departments to finalize fiscal year end projections for FY17 to ensure that the year ends in a balanced state. RECOMMENDATION: This report is for information purposes only; no recommendation is provided. Ms. Birch stated that she is present based on the agreement a few months about bout monthly financial reports at the second meeting of each month. She stated that she apologizes for last month because she was ill. She stated that she wanted to remind everyone that they are nearing the end of FY17. She stated that has been a transition year for them for many reasons. She stated that one is that the Bobb Group joined the City. She stated that the second thing is that there were a lot of modifications that was approved back in January from the second amendment. She stated that this was based on information that they knew from first six months. She stated that they had to freeze travel, training, conferences and things of that nature. She stated that they also put a freeze on hiring employees as well. She stated that every purchase had to have a purchase requisition that the Director of Finance must approve before a department can spend. She stated that they also reduced cellphone usage across the City as well. She stated that they wanted to close FY17 without making the situation worse. She stated that they have reduced those that can use purchase cards to buy things. She stated that few challenges are that they are trying to do a budget projection. She stated that the auditors are in town working with the City. She stated that there are departments that are still bringing invoices from a year ago. She stated that they continue paying for invoices from 2016 during this year. She stated that in the general ledger things have gotten posted that skew the numbers. She stated that this takes a lot of more research regarding debt service in the City. She stated that she thinks that the City is going to be $500,000 over the budget. She stated that they were $7 million over budget and that now they are down to $500,000. She stated that this is a big accomplishment. She stated that there is a low collection rate with personal property taxes. She stated that typically they have a collection rate of about 72%. She stated that the taxes are due the end of June which is near the end of the fiscal year. She stated that they have a $1.2 million-dollar contingency that they set up in January to help offset some of the budget overruns that they knew were going to be there. She stated that she is bringing this in the equation. She stated that they have been working hard to close this and that they may come back with recommendations and hopefully they do not have to do this. Mr. Berry stated that it is okay to be over budget because Nelsie has paid off so many bills from the prior year. He stated that the City was in such a big whole that they have gotten far to get out the hole. He stated that she is comfortable now. Ms. Birch stated that normally she would not be but comfortable but that this is a major accomplishment this year. She stated that they plan to come back in June at the second meeting to talk about the CAFR. She stated that it will be an interesting conversation. She stated that hopefully FY16 will be the last year for Petersburg financially. She stated that the next information is budgetary information up until April 30th. She stated that accounting was so severally broken and that they are working through this to make sure that they do not over spend grants. She stated that she has a team working with this currently. Council Member Hill stated that he has one question. He asked is the City’s software talk to DMV software relating to the vehicles. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -7– ______________________________________________________________________________ Ms. Birch stated that this is a Commissioner of Revenue question and that she is not present. She stated that this is an area that they have talked to her about in regards to automatic downloads and the billing system. She stated that she is not sure if Mrs. Hairston is at the moment yet. She stated that they are constantly working the file to make sure information is up to date. Mayor Parham asked Ms. Birch what can they do as City Council to close the gap. He stated that they have been working with the DMV download for a couple of years now. He stated that this is hurting the City. He stated that the City has zero room for error right now. Mr. Tyrrell stated that he believes that they made some suggestions in a letter to the Commissioner of Revenue that would answer the question. Ms. Birch stated that from a City Council perspective there is something that they can do and say that they expect this. She stated that inviting the Commissioner of Revenue to the next meeting to talk about the process would be the next thing. Mayor Parham stated that he understands and he knows that the Commissioner is retiring and that this is election year. He stated that he does not want a learning curve going into next year. Council Member Cuthbert stated that he would like to follow-up on that. He stated that they were given a couple of options and that it sounds like to him that inviting the Commissioner of Revenue to the next meeting City Council can ask her what can be done to address this problem. He stated that they live on the revenues and they need it. Mayor Parham stated that they will extend the invitation for her to the next council meeting. Council Member Cuthbert stated that he appreciates this. He asked what was the due dates of the 54% payment of bills that were sent out the end of February. Ms. Birch stated that she thinks that they were February 28th. Council Member Cuthbert asked was there a penalty for them. Ms. Birch stated that according to the residence present there is a penalty. She stated that she is not sure. Paul Mullin, City Treasurer Office, stated that there is a penalty of 10% if paid after February 28th. Council Member Cuthbert asked Mr. Mullin do he have any thoughts on collecting more than 54%. Mr. Mullin stated that he believes there is a way but that this would be a question for Mr. Brown to answer at this time. Council Member Cuthbert stated that he would ask the Mayor to also invite Mr. Brown to the June 6th meeting as well to ask questions of him as well. He stated that on Petersburg Area Transit the expenditures as of April are 100.45% with two months to go. He asked is there a reason for that. Ms. Birch stated that there are cost of alarms. She stated that they know they assumed a lot of bills that were not paid in FY16. She stated that she does not have that number currently. She stated that they are currently working to make sure that they have done all of the necessary federal drawdowns of revenue. She *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -8– ______________________________________________________________________________ stated that in the 2nd amendment there was a fund given to PAT. She stated that the transfer was told that it was not needed. She stated that they were paying a lot of bills from FY16. She stated that she must have a follow up meeting with the state on the funding and requirements to make sure that everyone is on the same page. She stated that as they move forward this will not be an issue. She stated that the red marks are areas that they are already over in the budget. She stated that all the debt service has been posted to the general fund. She stated that they have to go and clean up some of the information in the budget. She stated that there is also included a report of cash flows. She stated that they hope to have the first three months of cash flow report. She stated that there is no real bill until real estate is due. She stated that they will have $9 million for the first three months of the next fiscal year. Council Member Cuthbert stated that he sees that fines and forfeiture is at 142% budget. He stated that he does not know what explanation there is. He asked Ms. Birch to shed some light on this information. He stated that this is a great improvement. Ms. Birch stated she is having technical problems with her cursor on her computer. She stated that she has to get back to them on this and that she may be able to do so before the evening is over. Council Member Cuthbert stated that he has questions about the next column as well. Ms. Birch stated the very top says that on May 7th there was $2.8 million dollars in the bank. She stated that they have to exclude the checks that have been written that people have not cashed yet. She stated that she only had $1 million dollars available. She stated that the million is all she had for that day. She stated that they had payroll coming up on that date. She stated that the second column of the $5.3 million is the total obligations for that month. She stated that as the revenue come in they decrease the projections. She stated that those numbers are projections. She stated that at any point of point they are managing the money every day. She stated that they are trying to estimate the month of May to pay June bills. c. Robert Bobb Group Report Mr. Bobb stated that in the presentation that Ms. Birch gave they will not carry a deficit into the next fiscal year. He stated tat they are going to review their expenditures and that they will be careful with this. He stated that they must have a fund balance. He stated that they need a liquidity event. He stated that every day they still need to build a fund balance. He stated that he spoke at city Council’s Vision that they were not sure if they could make payroll at the end of this month. He stated that the City’s payday does not come every day. He stated that the City has never missed a debt payment. He stated that this is fantastic. He went over the checklist on the goals that they have reached and the goals that they have begun to work on. He stated that the search firm and Ms. Jackson will coordinate the schedules for the interviews of the City Manager position. He stated that it takes some time to do background checks. He stated that hopefully they will have a City Manager in the position by July 1st. He stated that on May 24th they will be interviewing the position for Police Chief. He stated that they have five candidates. He stated that they have completed the interviews for the Director of Finance. He stated that they have chosen a candidate and they will introduce this person to the City Manager so that they will have their input on who is picked. He stated that the Johnson Controls contract is being looked at and worked on by the forensic audit. He stated that two teams have been selected to come in and look at the utility billing process. He stated that they are also looking at the meter reading process. He spoke on council having a Retreat in August. Council Member Hill stated that he knows that they are about to do the interviews for City Manager and that they are looking at other people in the director’s position. He stated that he does not want them to get to far ahead of themselves where they are hiring directors without the consent of the City Manager. He stated that he is concerned about this. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 -9– ______________________________________________________________________________ Mr. Bobb stated that they are at the process of about to hire a City Manager. He stated that they will vet the top candidates and that they will turn tis over to the City Manager so that person can make their choice. He stated that here are areas that have all the positions filled and that they must get to know that person. He stated that there is no guarantee that they will come out of the process with a consensus of a who will be the next City Manager. He stated that they will go in and come out with a final candidate. He stated that sometimes they will interview all candidates and still may come out without picking a person. He stated that they are continuing to have conversation with the Governor’s Office with potential risk of the City of Petersburg. He stated that hopefully they will get some state funds to assist the City. Council Member Wilson-Smith asked can they go back to the slide on page 25. She stated that she wanted to talk about developing a plan for payoff current RAN. She asked have they developed a plan. Mr. Bobb stated that they are paying off the current RAN every month. Council Member Wilson-Smith asked are they on schedule. Mr. Bobb stated that they are on schedule. Council Member Wilson-Smith stated that she would like to talk about number 19 and collecting delinquent revenues. She asked is there a percentage of revenues that they have collected. Mr. Bobb stated they are making sure that they have a process in place to collect every penny that is owed to the City. He stated that in Mr. Berry’s presentation it was discussed a few customers that have not paid the City. He stated that they had a conversation with the treasurer on personal property and that they can start booting some of the cars to drive people to pay their bills. Council Member Wilson-Smith stated that they are saying they have a process of how to collect delinquent reviews but that they have not collected them. Mr. Bobb stated that they have initiated it. Council Member Wilson-Smith that they have initiated the process and collected delinquent revenues. She stated that when she reads it she sees that they have collected the revenues. She stated to Mr. Bobb that the forensic auditors are looking at the Johnson Controls contract and that he is also looking at the Johnson Controls contract. Mr. Bobb stated that they have gone back and looked at a number of the documents. He stated that the auditors are going back and looking in it. He stated that they will be identifying who was involved with the project and who all touched the contract. He stated that all the documents that were evaluated will be overlooked with legal review. He stated that they are also trying to find out how the decision was made with the leasing was done with the water meters. Mayor Parham stated that he had some questions as it relates to technology. He asked can he give them an estimate of time to correct the DMV download process being that they are working on the technology process of building back the City. Mr. Bobb stated that the auditors in the past stated that they need to look at the process. He steed that Dileep will meet with the Commissioner of Revenue to see what they can do to help the process. Mayor Parham asked can they have this information for the next meeting in June. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 10 – ______________________________________________________________________________ Mr. Bobb stated that they can have this information at next meeting in June. Dr. Alton Hart, Director of the Petersburg Health Department, stated that he is present to talk about a summit that the health department is hosting. He stated that they are in partnership with the United Way and the Cameron Foundation and the Petersburg Wellness Consortium. He stated that it is called “Beyond Adverse Childhood Experiences Building Community Resilience.” He stated that research that the this is built from health outcomes. He stated that this has shown to relate to heart disease, suicide and drug addiction. He stated that they are sponsoring the summit to help the community to know things that are happening in Petersburg. He stated that the summit will be June 1-3rd. He stated that they are inviting each council member to attend the summit. He stated that this is only he beginning and that this is a public health crisis in the community. 7. CONSENT AGENDA (to include minutes of previous meeting/s): a. Minutes: Regular Council Meeting Minutes of May 2, 2017 b. Schedule a public hearing on a proposed ordinance granting the Interim City Manager the authority to amend the PCS Site Agreement with SprintCom located at 309 Fairgrounds Road. c. Schedule a public hearing for issuance of $3.0 million in General Obligation Bonds. d. Schedule a public hearing for the consideration of an ordinance to create the position of the City Tax Collector for the City of Petersburg. Vice Mayor Hart made a motion to accept the Consent Agenda with the scheduling of public hearings on June 6, 2017. The motion was seconded by Council Member Wilson-Smith. The motion was approved on roll call. On roll call vote, voting yes: Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Abstain: Cuthbert; Absent: Myers 8. OFFICIAL PUBLIC HEARINGS: a. A public hearing to amend Sections 106-132, 106-134, 106-135, 106-136, and 106-137, of the 2000 Code of the City of Petersburg, to reduce the exemption from taxation via rehabilitation credit, from 10 years to 5 years. BACKGROUND: The Code of Virginia, Section 58.1-3220 (B) and 58.1-3221 (B) states “The governing body of a county, city, or town may place a shorter time limitation on the length of such exemption, or reduce the amount of the exemption in annual steps over the entire period or a portion thereof, in such manner as the ordinance may prescribe.” This amendment would reduce the amount of time for an exemption via rehabilitation credit from 10 years to 5 years. The City loses 5 million dollars in revenue by having the tax credit extended to 10 years. RECOMMENDATION: Recommend City Council amend the City Code to reduce the exemption from taxation via rehabilitation credit from 10 years to 5 years. Richie McKeithen gave a briefing of the rehabilitation credit program with PowerPoint slides. Ms. Jackson opened the floor for public comments. Gloria Brown, 1557 S. Sycamore Street, stated that she understand and appreciates bringing dollars into the City. She stated that she knows that the City Assessor compared and matched the city to other *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 11 – ______________________________________________________________________________ jurisdictions but since we are an older City and that she just had a tree hit her home and that it is not easy to do renovation. She stated that her question is in other older laces with properties that have more challenges what is their metric of abatement. She stated that she appreciates that if they go to five years and that the City has the resources to help renovate and restructure homes that were built in the late 1800s. She stated that it is hard to renovate these residential and commercial properties. Mr. McKeithen stated that the oldest locality that would be compared to this would be the City of Richmond. She stated that they have a lot of older properties that were built some 100 years ago. He stated that they are still down to seven and five year combinations. He stated that he does not know if Williamsburg have this or not. He stated that he knows some of the places on the peninsula have this. He stated that they have to consider this program for everyone. He stated that there are some cost savings. Seeing no further hands, Ms. Jackson closed the public comment period. Council Member Wilson-Smith made a motion to amend the City Code to reduce the exemption from taxation via rehabilitation credit from 10 years to 5 years effective with tonight’s date and that it does not affect those individuals that are currently in the 10-year process. The motion was seconded by Council Member Smith-Lee. There was discussion on the motion and with Mr. McKeithen. The motion was approved on roll call. On roll call vote, voting yes: Smith-Lee, Wilson-Smith, Hill and Hart; Voting No: Cuthbert and Parham; Absent: Myers 17-ORD-20 AN ORDINANCE TO AMEND THE CITY CODE TO REDUCE THE EXEMPTION FROM TAXATION VIA REHABILITATION CREDIT FROM 10 YEARS TO 5 YEARS. b. A public hearing to rezone 217-221 North South Street from M-1 “Light Industrial” to PUD “Planned Unit Development” with conditions. BACKGROUND: There are three different buildings located on this tract of land. The first building addressed as 217 North South Street was previously used as a gun shop, Dunbar Gun Company. There is a smaller building addressed as 221 North South Street, which was previously used as storage for the hardware store. The third two-story brick building about 10,800 square feet and addressed as 219 North South Street was previously occupied by Accurate Auto Glass, a windshield repair and replacement business. The property abutting N. South Street and known as 217 N. South Street is the subject of the rezoning case. The applicant is requesting to convert this former gun shop to two (2) market rate residential units. The applicant has shown in the plans that the integrity of the structures will be protected and restored as a part of the revitalization of this building. The Planned Unit Development allows the applicant to have a variety of land uses. This zoning designation has been determined to be appropriate to facilitate this development and future development of the site. The two residential units will have a small parking area in front of 217 N. South Street as well as a few spaces being available in the rear of the property. There is currently a 10’ access easement across the adjacent property occupied by the Hardware Store. The one-story building to the rear and addressed as 221 North South Street is currently being renovated as offices for the applicant’s Construction Company. This business will be moving from the City of Hopewell to the City of Petersburg. The office use is permitted by right of the industrial zoning and did not require any special approvals. The applicant has not identified a use for the two-story building known as 219 North South Street. However, the PUD zoning would allow for a number of uses to be permitted. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 12 – ______________________________________________________________________________ RECOMMENDATION: Following a duly advertised public hearing, Council may affirm the Planning Commission recommendation, overturn the Planning Commission recommendation, table for further consideration, or return the item under consideration to the Planning Commission requesting further review. Planning Commission voted at their April 5, 2017, regular meeting to approve the request with a vote of 6-0. Michelle Peters, Director of Planning and Economic Development, gave a brief presentation with PowerPoint slides. Ms. Jackson opened the floor for public comments. Shea Crump, 710 High Street, asked how will this change effect the parking. Mrs. Peters stated that the request is to renovate the one-story building into a two-family dwelling. She stated that off-street parking would be provided on the site. She stated that the office use that is under a permit now will use parking as well on the site. She stated that there is an easement to tis parking from the hardware site that is adjacent to it. She stated that it is not dependent on on-street parking. Seeing no further hands, Ms. Jackson closed the public comment period. Vice mayor Hart made a motion to approve the recommendation provided by the Planning Commission. The motion was seconded by Council Member Cuthbert. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Absent: Myers 17-ORD-21 AN ORDINANCE TO APPROVE THE REZONING OF 217-221 NORTH SOUTH STREET FROM M-1 “LIGHT INDUSTRIAL” TO PUD “PLANNED UNIT DEVELOPMENT” WITH CONDITIONS. c. A public hearing for a request to rezone 3706 South Crater Road identified as T.P. 101-06-0001 from PUD “Planned Unit Development” to M-1c “Light Industrial” District with certain conditions. BACKGROUND: This property is subject of a 2007 rezoning case ordinance #07-Ord-104A, where a proposal was put forth to rezone the property from the Agricultural (A) zoning district to the Planned Unit Development (PUD) district. This rezoning would facilitate the development of 82.4 acres of land, within the City of Petersburg. This tract of land abuts 72.7 acres which is located in Prince George County and under the same ownership. The former proposal was known as Independence Village and Town Center which was to accommodate five types of districts/uses; 1. Mixed Residential; 2. Age Targeted Residential; 3. Main Street District-commercial, office and residential uses in conjunction with civic open spaces/buildings; 4. Regional Retail-Commercial (including “big-box” retail uses), office, flex space and residential uses; 5. Outparcel District- commercial, office, civic allowing flexibility for potential users to have drive-thru-services, and independent/individual buildings on privately owned parcels oriented towards South Crater Road. The rezoning was conditioned upon several actions occurring, one of those conditions deemed that if the current or future owners did not fulfill the obligations of the ordinance the City Council had the right to rezone the property. Since the project was next constructed and the sunset provision ended in 2012, the City of Petersburg Planning Commission and City Council can now consider an application for rezoning. The sunset provisions was only included in the City of Petersburg’s approval and did not apply to the Prince George County rezoning case. The revised proffers dated June 9, 2010 are currently binding and requires compliance by future development. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 13 – ______________________________________________________________________________ The current applicant is requesting to rezone the property from the Planned Unit Development (PUD) zoning designation to the Light Industrial District (M-1c) with conditions. This rezoning request is to facilitate the sale of the property for development for commercial uses such as retail trade, service industries, and other uses permitted by the B-2 and B-1 districts since the uses of these districts are incorporated and permitted in the M-1 district. In addition, to those uses warehouse and distribution centers would be permitted along with light industries that manufacture, process, store and distribute goods and materials that are dependent on raw materials refined elsewhere. Since the rezoning is conditioned there are uses that will not be permitted. RECOMMENDATION: Following a duly advertised public hearing, Council may affirm the Planning Commission recommendation, overturn the Planning Commission recommendation, table for further consideration, or return the item under consideration to the Planning Commission requesting further review. Planning Commission did not act within the 60-day time allotted by State Code; therefore, the case goes straight to City Council for action. Michelle Peters, Director of Planning and Economic Development, gave a brief presentation with PowerPoint slides. William Welch, property owner representative, stated that they have hired Ms. Linderman and Mr. Diriam that will take everyone through a process to explain what they are trying to do. Diane Linderman, Managing Partner at VHB, gave a small presentation with PowerPoint slides on the project. Robert Diriam, Commercial Broker of CBRE, gave a briefing of the proposed request to rezone. Ms. Jackson opened the floor for public comments. Leonard Muse, 116 S. Plains Drive, stated that he has provided City Council with a presentation and comments and concerns during the Planning Commission portion with the City. He stated that this rezoning is not consistent with the Comprehensive Plan. He stated that it is not consistent with the plan that is currently in effect. He stated that the there are other business that are commercial and residential that are near the site. He stated that he urges council to not move forward with this rezoning. Seeing no further hands, Ms. Jackson closed the public hearing. There was discussion among City Council Members and staff. Council Member Cuthbert made a motion that City Council hereby rezones the property in question as a PUD to permit only the following uses of healthcare, retailing, office, warehouse and distribution centers along with light industries that manufacture, process, store and distribute goods and materials that are dependent on raw materials defined elsewhere provided that the appearance of the South Crater Road gateway and the peace and quiet residence along South Plains Drive are not adversely affected. The motion was seconded by Council Member Hill. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Smith-Lee, Hill and Parham; Voting No: Wilson-Smith and Hart; Absent: Myers 17-ORD-22 AN ORDINANCE TO REZONE PROPERTY LOCATED AT 3706 SOUTH CRATER ROAD TO PUD TO PERMIT ONLY THE FOLLOWING USES OF HEALTHCARE, RETAILING, OFFICE, WAREHOUSE AND DISTRIBUTION CENTERS ALONG WITH LIGHT INDUSTRIES THAT MANUFACTURE, PROCESS, STORE AND DISTRIBUTE GOODS AND MATERIALS THAT ARE DEPENDENT ON RAW MATERIALS DEFINED ELSEWHERE PROVIDED THAT THE APPEARANCE OF THE SOUTH CRATER ROAD GATEWAY AND THE PEACE AND QUIET *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 14 – ______________________________________________________________________________ RESIDENCE ALONG SOUTH PLAINS DRIVE ARE NOT ADVERSELY AFFECTED. d. A public hearing on a referendum to be added to the November 7, 2017, ballot regarding the election of the Petersburg City Mayor. BACKGROUND: Several citizens have approached the City Council about being able to vote for the Mayor as opposed to the current system of selecting the Mayor and Vice Mayor from among council. City Council voted on December 13, 2016, to add to the November ballot, a referendum which seeks input as to the method the Mayor is to be appointed. Petersburg Question 1  Would you like to elect your Mayor at large?  Would you like the Council to elect the Mayor among themselves? Petersburg Question 2  If you selected Mayor at large from question 1.  Do you prefer the Candidate for Mayor be selected as one of the members of Council?  Or an Independent Candidate? RECOMMENDATION: Recommend approval to add the referendum to the November 7, 2017 ballot. Ms. Jackson opened the floor for public comments. Gloria Brown, 1557 South Sycamore Street, stated that this has been something very important that has been on her mind for the last ten years. She stated that a couple of the council members back in 2007 wanted the public to have a say on who the mayor is. She stated that she really never felt comfortable with seven people deciding who she would like as Mayor of the City. She stated that she feels that giving the residents of Petersburg more empowerment to make decisions will grow from there. She stated that unfortunately when they brought this to the table in 2007 a council member tried to corner her and say that it was not a good idea. She stated that she feels like it should be an independent candidate. She stated that she feels like the citizens should have a voice in how the City is running in leadership. Barb Rudolph, 1675 Mt. Vernon St., stated that she does not have the history that Mrs. Brown has. She stated that she agrees to a lot of the points that she made. She stated that she thinks that there is a lot to be said in the citizens having a voice on choosing a Mayor. She stated that she knows that this issue gets confusing. She stated that they are not talking about having a Mayor like the Mayor of Richmond. She stated that she believes that they are still talking about having a City Manager form of government. She stated that four of the council members voted for Mayor Parham including himself. She stated that her council member did vote for the Mayor. She stated that she is not trying to make this personal. She stated that she urges them to add a question to the referendum and that some rewording is needed but that she thinks that this is a good idea. Ron Flock, 1708 Pender Avenue, stated that he served on the Citizenry Committee and that this was one of the discussions that they had. He stated that the only thing that made them speak on this topic was the responsibility of the Mayor. He asked how does someone running for Mayor run a platform that they cannot do anything about. He stated that at the same time it was pointed out across Virginia that there are plenty ways to make it work. He stated that they can look at different ways. He stated that his only concern is the broad spectrum that this covers without having anything more detailed to really consider as to how to move forward with the Mayor’s position and their role. He stated that if they could come up with something that would give the Mayor the ability to run on a platform affect then he believes that this is a good thing. He stated that if they *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 15 – ______________________________________________________________________________ are just going to let someone run and cannot do anything then what is the point. Linwood Christian, 410 Mistletoe Street, stated that he is present to say that he is glad that this is coming forward and that he hopes that this going on the ballet. He stated that right now he has been the City longer than a lot of people and that this is not working. He stated that he opposes to having a Mayor chosen from among City Council Members. He stated that they have showed that they do not have the backbone. He stated that there are things that City Council could have did as council members but that they did not do this. He stated that from among them City Council has shown how personal things can get. He stated that right now the Mayor is nothing more than a committee chairperson. He stated that he does not want the Mayor to always go around kissing babies. He stated that the current way is a way to take away the voice of the citizens. He stated that when they hire a City manager to make that this person is not going around working on anyone’s church on taxpayer’s time. He stated that currently the Mayor is not responsible for nobody but the people in his ward. Michael Edwards, 409 Grove Avenue, stated that the only question that he has nobody has answered it. He stated that if they pass this are they adding a number eight and it be a tie breaker. He asked what type of salary will this person have. He stated that they already have a tax collector position floating around that has a salary of $100,000. He stated that they cannot afford to bring in anymore positions for the sack of appeasing people minds and opinions. He stated that he does think that they should have a say in who is the Mayor. He stated that the last Mayor that the City had was a circus. He stated that he has told Council Member Myers this to his face. He stated to Mayor Parham that he can commend him that he has stuck to the rules of the Mayor. He stated that he encourages them all to look at this. He stated that there is a lot of inconsistency. He stated that he does not see this making the November ballot. Atiba Muse, 104 South Plains Drive, stated that he is in favor of the citizens electing a Mayor. He stated that he hopes that as citizens they are provided true clarity as to how this dynamic works. Seeing no further hands, Ms. Jackson closed the public hearing. There was discussion and comments among City Council Members. Council Member Wilson-Smith made a motion to approve the amendment to Section106-10 of Article I of Chapter 106 pertaining to personal property tax. The motion was seconded by Council Member Smith-Lee. The motion was not approved on roll call. On roll call vote, voting yes: Smith-Lee, Wilson-Smith and Hart; Voting No: Cuthbert, Hill and Parham; Absent: Myers 9. PUBLIC INFORMATION PERIOD: A public information period, limited in time to 30 minutes, shall be part of an Order of Business at each regular council meeting. Each speaker shall be a resident or business owner of the City and shall be limited to three minutes. No speaker will be permitted to speak on any item scheduled for consideration on the regular docket of the meeting at which the speaker is to speak. The order of speakers, limited by the 30-minute period, shall be determined as follows: a) First, in chronological order of the notice, persons who have notified the Clerk no later than 12:00noon of the day of the meeting, b) Second, in chronological order of their sign up, persons who have signed a sigh-up sheet placed by the Clerk in the rear of the meeting room prior to the meeting. Lora Jarratt, 1633 Montpelier Street, stated that she is present tonight in reference to the rate increase that has been imposed on the 1,716 residents with one inch meters. She stated that many citizens have no idea of their meter size or understand why they are assuming these inflated fees of the water and sewer meters. She stated that in over 50 years or less residents have paid low rates and they are now being assessed. She stated that notices have not been sent out to alert residence in reference to the one inch *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 16 – ______________________________________________________________________________ meters. She stated that the increases are taking effect before the 13.4% increase that is scheduled and will further inflate the financial burden on the citizens. She stated that she is told both the usage travels through the pipes are what increase the rates. She asked is the pressure of the pipes more important than preserving the water usage. She stated that she is asking that they send out notice to the 1716 customers with one inch meters. She stated that they have to right know and understand the rates. She asked council to review the base rate of the one inch meters. She stated that the decision to implement will create hardship on the citizens and threaten their ability to afford a very needed commodity. She stated that the people are in opposition of the inflated charges and that they are relying on the council representatives to vote to remove or minimize the cost. She stated that they deserve the same treatment of those who previously own and rented the properties. She stated that she thanks council for allowing her to speak and look forward to positive change. Julian Greene, 1625 Blair Drive, stated that he is the chair of the Petersburg Education Foundation. He stated that he has two other foundation members with him. He stated that he also has attending with him Annie Mickens and Ralph Bolling. He stated that they are present because there will be a meeting tomorrow at the school board. He stated that they are hopeful that a decision is made regarding the use of Peabody middle School as the school is transferring the kids over from Peabody to Vernon Johns. He stated that they are seeking custodial use of Peabody for summer programs and year around programs. He stated that they have made several attempts to try and speak with the City administration about this initiative. He stated that they are present tonight because they are frustrated and time is moving forward. He stated that they need to get the support and collaboration of council to move forward. He stated that there is a plan that they have the community supports that council needs to recommend and approve. He stated that there are people that are coming to do the teaching and training at their council. He stated that they are not coming to ask for any money from the City. Annie Mickens, 1013 Melville Street, stated that the issue that they have is that they seek no funds but support from the City and collaboration with Parks and Leisure. She stated that this would call for the City administration to have that conversation regarding the collaboration with what is now Parks and Leisure Services. Mr. Greene stated that the school board meeting is tomorrow at 6pm at Petersburg High School in the cafeteria. Mrs. Mickens stated that Dr. Newsome has made a recommendation to the board and the board has accepted the collaboration will take place with the National Peabody Alumni Association. She stated that this is truly of the Peabody being on the national historical register. She stated that because of them being on the register the collaboration of funding takes place out of historical perspective. She stated that the collaboration needs to be with the City as well. She stated that Dr. Newsome will make an announcement for the public review. Ron Flock, 1708 Pender Avenue, stated that the residents of the City see what actions it can place wither with or without the knowledge and the approval of council. He stated that consensus among citizens of his greeting is correct. He asked at what point did they decide to become a messenger on the Robert Bobb Group train. He stated that they have demonstrated time and time again that governing is no longer in their job description while City employees are being kicked to the curb without council’s consent or approval. He stated that he does not recall a motion before City Council relinquishing themselves from governance or any motion outside the contractor to define or implement any policy without motion or approval. He stated that the reduction of workforce process that was implemented yesterday is based on a FY18 budget. He stated that it has not been approved. He stated that there are policies and procedures in place that give authority of implementation of any foreseen actions that the City wishes to pursue. He stated that these policies and procedures are not being followed. He stated that he does not know if the City Attorney was conferred with about the reduction force letter that was issued to the employees. He stated that if he was that he would *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 17 – ______________________________________________________________________________ suggest that they consider removing him from employment. He stated that he would not fault the employees if they wish to sue the City due to distress and against City council due to negligence. He stated that he has recommended that City Council do their jobs. Cory Harris, 2316 Anderson Street, he asked have they noticed that the people are smiling when it comes to the City Council meeting are not the right people. He stated that they are tired of communicating with them. He stated that City Council thinks that the citizens are their enemy but that thy are not. He stated that they are only trying to get them to understand that the biggest investors are the citizens. He stated that City Council is neglecting them. He stated that every time he comes to a City Council meeting he see investors that area smiling and cheerful. He stated that when he looks at the residents they are unhappy. He asked City Council does this bother them or do they care. He stated that less than a week ago when he left a restaurant a father and his wife and young child was there. He stated that he wife was holding the child while they were crying and that the man came to him and others begging for money because he lost his home. He stated that when he looked at the gentleman it took everything in him not to cry. He stated that when he speaks at City Council meetings he speaks from experience when it comes to poverty. He stated that he remembers when he was filled with so much anxiety that he could not move because he did not know what was going to happen to him the next day. He asked do they understand that there are people in the City that are struggling and that they need leadership. He stated that they do not need politicians that are pretending to be leaders. He stated that Dr. Farley told him to give City Council a message. He stated that she does not want them recognizing her. He stated that it is an insult to her. He stated that she has spent 17 years on City Council and she was called Robin Hood because she cared about citizens. He stated that if they care about citizens they need to wake up because they are destroying them and not helping them. Linwood Christian, 410 Mistletoe Street, stated that he must thank Council Member Smith-Lee in regards to his godmother home on Montgomery Street. He stated that not only were people going in her house but a lot of the people were going in abandoned homes in the area as well. He stated that he thanks her for letting him know that she was aware. He stated that he must thank Council Member Wilson-Smith because she was the only one member in council who tried to help the budget crisis. He stated that she forfeited her salary. He stated that like Dr. Farley she is one of the few that have been concerned about the citizens. He stated that the council meeting tonight was called to order and then went into closed session for an hour. He stated that then there were all these presentations that last forever in a day. He stated that they need to do like the school board and have a regular session and work session. He stated that people got to the point that everyone was saying the same thing. He stated that they have shown the citizens that they do not want to listen and that they have shown personalities that they do not want the citizens involved. He stated that they have been asking for a Mayor at-large for a while. He stated to Mr. Preston that he heard what he said. He stated that the same thing was said by his council member when he was Mayor to shut down everything Council Member Wilson-Smith tried to bring before council. He stated that he has seen more flip-flopping at the pizza place. He thanked Council member Smith-Lee. He stated that like she said if you are going to stick to something then stick to it. He stated to Council Member Cuthbert that there is already division on council whether he knows it or not. He stated to Council Member Smith-Lee to watch it because she chooses to stand up and that she is going to be next. He stated that the citizens are tired. He stated that if they wanted to do something they could have went after the Mayor from 2009 who allowed the City Manager to get the City in this mess. Barb Rudolph, 1675 Mt. Vernon Street, stated that she will try not to be too repetitive over what other speakers stated. She stated that she will digress for a second over a question about something that Ms. Birch stated earlier. She stated that she thinks that Ms. Birch stated that the contingency fund was $1.2 million dollars that was set aside in January. She stated that she thought when the vote was taken to extend the Robert Bobb Group contract that this is where the money was coming from which is the contingency fund. She stated that she does not think that it is $1.2 million anymore. She stated that the numbers are always like moving target counting on the money from the state like Mr. Bobb stated the was being requested. She stated that she thinks that it pays to pay attention. She stated that the numbers change and that they should be kept *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 18 – ______________________________________________________________________________ up with this. She stated that the layoffs that were announced the other day were City employees. She stated that this was a great surprise. She stated that she thinks because some of them were City employees they were scared to talk about. She stated that she thought how does this happen when the budget for FY18 has not been voted on yet. She stated that there has been a lot of elements of proposing City government to be outsourced in some areas. She stated that she does not know the rationale of this. She stated that it appears that the Robert Bobb Group is running everything and City Council as a democratic body does not have a voice. She stated that they need to think about the employees. She stated that she read the letter eliminating positions. She stated that one of the press representatives was quoted saying in the paper that every one of the employees that have gotten a lay-off notice would be interviewed for a job within the City but that they would not be guaranteed to get the job. She stated that she does not think that the public relations person checked this out with the human resource department. She stated that this sounds highly unlikely. Gloria Brown, 1557 S. Sycamore Street, stated that she wanted to invite the business of community mentioned at the last meeting to have everyone involved in all the positive transition of Petersburg moving forward. She stated that they are having a Business Appreciation Reception at the train station on May 23rd. She stated that they invite all the business community to come out and have some conversation and they are chugging the train to make Petersburg again the main street designation. She stated that she has only been in the City for 13 years now. She stated that Petersburg is the first main street designated City in Petersburg. She stated that the are going to have some discussion and a lite formal meet and greet and appreciation for the business community. She stated that she believes it begins at 6pm. She stated that also on May 25th at Ammo Brewery from 11:30amto 1:00pm they will continue to have discussion regarding the main street. 10. BUSINESS OR REPORTS FROM THE MAYOR OR OTHER MEMBERS OF CITY COUNCIL: a. Consideration of an appropriation for $42,490.67 from the Economic Development/Sale of Property Account to support economic development activities in the General Fund. BACKGROUND: The City Treasurer maintains over 20 checking accounts for various reasons that create additional reconciliation work and increases the cost of managing City funds. The economic development/sale of surplus property checking account was opened several years ago by the former Director of Finance for the proceeds from the sale of property; this checking account is separate from the Economic Development Authority checking account. The balance remaining in this account is $42,490.67. There are three invoices related to economic development that the City has paid that were unplanned and can be offset by these funds: the first invoice of $8,658.58 is Cranemasters, needed to make emergency repairs to the rail line located at the Bessemer industrial park. This is not covered under the inventory list for urban allocation funding; the second invoice of $2,230.67 is to install the fence around the old Ramada hotel to alleviate risks of burglary and property damage to this City property; and the remaining funds will be used to offset the third invoice for the Virginia Gateway Region. This regional partner was eliminated during the second amended FY17 Budget and complete payment was not made for the FY16 dues. Therefore, the City owes $53,607.50 for the current fiscal year and previous fiscal year. There is value in this organization to keep them as a regional economic development partner. RECOMMENDATION: Recommend City Council approve the appropriation ordinance for $42,490.67. Nelsie Birch, Interim Deputy City Manager/Director of Finance, gave a summary of the property account to support economic development activities in the general fund. Ms. Jackson opened the floor for public comment. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 19 – ______________________________________________________________________________ Seeing no hands, Ms. Jackson closed the public comment period. Vice Mayor Hart made a motion to approve the appropriation ordinance in the amount of $42,490.67. The motion was seconded by Council Member Hill. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Absent: Myers 17-ORD-23 AN ORDINANCE AMENDING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2016, AND ENDING JUNE 30, 2017, IN THE GOVERNMENTAL OPERATING FUNDS. b. Consideration of a Lease Agreement with David McCormack for Harbor Land at 275 River Street. BACKGROUND: The 4-year, six-month lease between Waukeshaw Development (Dave McCormack) and the City provides that the lessee will have primary responsibility for maintenance, landscaping, grass cutting, cleaning, promotion of events, and insurance. The agreement is a means of bringing concerts and other events to the property without exposing the City to the financial risks or liability associated with promotion concerts. The agreement is similar to one employed by the City of Richmond for its festivals and events site (Brown’s Island) on the riverfront, which hosts hold events such as Friday Cheers, Dominion RiverRock, Exterra, and the Richmond Folk Festival. The lessee has plans for a dog park, gravel walks and a children’s play area, although these improvements are not a requirement of the agreement. Permanent improvements will become property of the City at the end of the lease. The annual rent is $1. The lessee agrees to hold a minimum of 8 events per year on the site and the City retain rights to use the site for 8 events of its own at no cost. The lease contains a requirement for crowd management plans to be approved by the Police Chief and Fire Chief, will all costs of security, EMS, traffic control, etc. to be borne by the lessee. Amplified music will not be allowed on the premises after 8pm Monday through Thursday; 10pm Friday and Saturday nights; and 6pm Sunday nights. RECOMMENDATION: Recommend City Council authorize the City Manager to enter into a lease with Waukeshaw Development under certain terms and conditions. There was discussion among City Council Members, the developer (John McCormack) and staff. Council Member Cuthbert made a motion to authorize the City Manager to enter the proposed lease in question provided that language be included in the lease so that the lease can be terminated on short notice and thereby no interfere with the sale of property in question. The motion was seconded by Council Member Smith-Lee. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson- Smith, Hill, Hart and Parham; Absent: Myers 17-ORD-24 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER THE PROPOSED LEASE IN QUESTION PROVIDED THAT LANGUAGE BE INCLUDED IN THE LEASE SO THAT THE LEASE CAN BE TERMINATED ON SHORT NOTICE AND THEREBY NO INTERFERE WITH THE SALE OF PROPERTY IN QUESTION. c. Consideration of a Memorandum of Understand for the Preservation Task Force. BACKGROUND: The PPTF entered a Memorandum of Understand with the City on November 22, 2016 for a 90-day period. The organization would like to extend this MOU until April 30, 2017. Currently, PPTF manages both the Blandford Church and Reception Centre and Centre Hill Mansion. The organization is also *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 20 – ______________________________________________________________________________ responsible for marketing, inventory of historical collections and artifacts. RECOMMENDATION: Recommend City Council extend the MOU with the Preservation Task Force until May 2018 based upon attached deliverables. Michelle Peters, Director of Planning and Economic Development, gave a summary of the MOU extension. Council Member Wilson-Smith made a motion to extend the MOU with the Preservation Task Force until May 2018. The motion was seconded by Council Member Cuthbert. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Smith-Lee, Wilson-Smith, Hill, Hart and Parham; Absent: Myers Council Member Hill stated that he would like to thank everyone for coming out. He stated that he wanted to announce that Ward 2 will be having a Town Hall Meeting on June 8, 2017, at 6:30pm at Good Shepherd Baptist Church. He stated that he must also leave as well. Council Member Hill left at 11:23pm Council Member Cuthbert stated that he would like the City Manager to report on the efforts to change the zoning prohibit residential use on the 1st floor. He stated that he would ask that the City Manager address this under the City Manager’s report so that it does not cut into his time. He asked Mr. Tyrrell would he address that issue at the requested time. Mr. Tyrrell responded yes. Council Member Cuthbert stated that the next item that he would like to talk about is Blandford Cemetery. He stated that he is very concerned about the proposal to transfer $100,000 from the perpetual care fund to the general fund. He stated that he thinks this is a violation of the City Code. He stated that 30-109 says that annually or at such time the board of sinking fund commissioners may elect the income from perpetual care charges shall be credited to the general fund of the City for cemetery operations. He stated that he sent an email to the Clerk of Council to see whether the City has a board of Sinking Fund Commissioner’s and if not who they last were. He stated that apparently, this cannot be determined. He stated that he does not see how this can be transferred until they establish a board of sinking fund commissioners. He stated that he wanted to put this on the table for council consideration. He stated that he does not know how to address this. He stated that they can create a job description of the commissioners. Mayor Parham stated that he wanted everyone to look at the resolution that was passed out to everyone. He stated that they have been battling the parole and probation moving to the Child Support Office. Mayor Parham made a motion to strongly objects to the location of the District 7 parole office at 2623 Park Avenue in Petersburg, Virginia with a resolution. The motion was seconded by Council Member Smith- Lee. There was discussion among City Council Members. The motion was not approved on roll call. On roll call vote, voting yes: Hart and Parham; Voting No: Smith-Lee and Wilson-Smith; Absent: Myers and Hill; Abstain: Cuthbert Council Member Wilson-Smith stated that she had one concern tonight. She stated that it was brought to her attention that when their agendas are made for the council meetings the Mayor and/or Vice Mayor are not a part of it. She stated that she would like to bring this concern forward and ask that going forward that the Mayor and Vice Mayor be involved when the agenda is prepared. She stated that the agenda is City Council’s agenda. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 21 – ______________________________________________________________________________ Mayor Parham stated that he is involved with the team that prepares the agenda. Council Member Wilson-Smith stated that she apologizes. She stated that she questioned something that was left off the agenda and so she tried to find out who established the agenda. She stated that when she was told who they did not call the Mayor’s name and she asked why he was not involved. She stated that if he is involved then this is great and that if he is not she would like him to be a part of it. Council Member Smith-Lee stated that she had her ward meeting on May 11th and they talked about cleaning up the neighborhood in Ward 6. She stated that she is trying to collaborate and communicate with the City Manager about the vacant properties on Montgomery Street. She stated that she needs to talk to City Manager about that. She stated that she also received a telephone call of the owner of some property on Wilcox Street saying that there are a lot of gunshots being heard and that they would like for some additional patrol in that area. Vice Mayor Hart stated that he would like to thank everyone for lasting this long with them. He stated that there will be a Ward 7 meeting on May 23rd at Stuart Elementary School. He stated that it will be a joint meeting with school board member Adrian Dance. He stated that they asked that everyone come out. He stated that the meeting is 6:30pm to 8:00pm. He stated that he has Michelle Peters attending from the City side going forward. He stated that as they are coming up to June 6th for the budget he is asking the City Manager if they can get at a least out a copy of the final budget proposal so that they can make sure that they have not missed or overlooked anything. He stated that there have been some changes requested from City Council in the past week. 11. ITEMS REMOVED FROM CONSENT: *No items for this portion of the agenda. 12. UNFINISHED BUSINESS: *No items for this portion of the agenda. 13. NEW BUSINESS: a. Consideration of FY2018 Proposed Budget Adjustments from City Council and Administration BACKGROUND: City Council Members and the Administration will provide recommended adjustments to the City Manager’s proposed FY18 All Funds Budget. Per the Rules of Council each recommended adjustment must be voted upon and receive at least four in favor votes to be approved. RECOMMENDATION: Recommend City Council hold votes on all proposed adjustments to the proposed FY17-18 All Funds Budget. Mr. Tyrrell stated that two council members submitted proposed amendments. He stated that he only has the form for one of them. He stated that he knows that Council Member Hill filled it out. He stated that he does not know if he got the other three additional signatures on it. He asked the Mayor how does he want to deal with it. He stated that council process required that they have four out of the seven to support the proposal. He stated that he has this for Council Member Cuthbert. Ms. Birch stated that Council Member Wilson-Smith gave her a copy of hers. *Audio available  Minutes from the Petersburg City Council meeting held on: May 16, 2017 - 22 – ______________________________________________________________________________ Mr. Tyrrell asked are their three other members that support Council Member Hill proposal. He stated that it is for the Cooperative Extension. Three members stated that they support it. Ms. Birch stated that what typically happens is that when you approve the budget you approve an appropriation ordinance with it. She stated that they will not get a physical document until the end of June that has all the approved changes. She stated that it takes a lot of time to do this. She stated that they have highlighted all the changes that are technical in nature and council changes. She stated that they are to review this and call them if something does not look right or if they have questions or if they are concerned with something. She stated that everything is on this except Council Member Wilson-Smith proposal for the assistant city attorney. 14. REPORTS/RESPONSES TO PREVIOUS PUBLIC INFORMATION PERIOD: *No items for this portion of the agenda. 15. CITY MANAGER’S AGENDA: *No items for this portion of the agenda. 16. BUSINESS OR REPORTS FROM THE CITY CLERK: *No items for this portion of the agenda. 17. BUSINESS OR REPORTS FROM THE CITY ATTORNEY: *No items for this portion of the agenda. 18. ADJOURNMENT: City Council adjourned at 11:54 p.m. _________________________ Clerk of City Council APPROVED: _________________________ Mayor *Audio available