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City Council

Regular Meeting

Petersburg, VA · May 24, 2022

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Minutes

Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -1– ______________________________________________________________________________ The Special City Council Meeting of the Petersburg City Council was held on Tuesday, May 24, 2022, at the Petersburg Public Library. Mayor Parham called the Special City Council Meeting to order at 12:00 p.m. 1. ROLL CALL: Present: Council Member Charles H. Cuthbert, Jr. Council Member Treska Wilson-Smith Council Member W. Howard Myers Council Member Arnold Westbrook, Jr. Council Member Darrin Hill Vice Mayor Annette Smith-Lee Mayor Samuel Parham Absent: None Present from City Administration: Clerk of Council Nykesha D. Jackson Interim City Manager Kenneth Miller City Attorney Anthony Williams 2. DISCUSSION AND CONSIDERATION: a. Consideration to approve and appropriate the budget for Petersburg City Public Schools for FY22-23. BACKGROUND: The total budget for Petersburg Public Schools is $91,050,600, which includes the following breakdown: Local fees: $66,000 Erate: $225,000 Sales Tax: $5,420,137 State: $42,278,401 Federal: $55,000 City Transfer: $10,000,000 Food Service: $2,927,000 Grants $30,079,062 RECOMMENDATION: Staff Recommends that City Council adopts and approves the Petersburg City Public Schools FY2022-23 Proposed Budget and Appropriation Ordinance. Dr. Julius Hamlin, Superintendent of Petersburg Public Schools, gave a brief overview of the school’s budget. Key points:  2014-2015 Application for Year-Round School Planning Grants of $100,000  2015-2016 PCPS Applied for and was awarded $800,000 to implement year-round school.  2016-2017 PCPS Applied for and was awarded $700,000 to implement year-round schools.  PCPS stopped year-round school in spring 2017 for lack of outcomes and increased unsustainable expense.  2020 GA appropriation act authorized Start-Up Grant $300,000 per year or $400,000 accredited *Audio available upon request. Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -2– ______________________________________________________________________________ with condition or level three school.  2021 Funding had to be included in CRRSA or ESSER II Grant Application in Spring 2021.  2022 no announced funding sources as of yet. There was discussion among City Council, superintendent, and staff. Council Member Hill made a motion to adopt the ordinance and approve the Petersburg City Public Schools FY2022-23 Proposed Budget and Appropriation Ordinance. Vice Mayor Smith-Lee seconded the motion. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham 22-ORD-32 AN ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2022, AND ENDING ON JUNE 30, 2023, IN THE SCHOOL OPERATING, FOOD SERVICE, AND SPECIAL REVENUE FUNDS. b. Consideration of the City of Petersburg’s FY2022-23 Proposed Operating and Capital Budget and Appropriation Ordinance to include rate of taxation on real property. BACKGROUND: The Interim City Manager has proposed an operating spending plan of $104,201,022 and a capital spending plan of $17,367,693 for FY2022-23. The Interim City Manager presented the FY2022-23 Proposed Operating and Capital Budget to City Council on March 29, 2022, for the operating budget and the capital budget on March 30, 2022. There were two community budget work sessions held on April 13th and April 14th and an official public hearing was held on April 19th to receive community input. The final step in the budget process is for City Council to adopt the FY2022-23 Proposed Operating Budget and approve the Appropriation Ordinance. RECOMMENDATION: Staff recommends that City Council adopts and approves the City of Petersburg's FY2022-23 Proposed Operating, and Capital Budget and Appropriation Ordinance include reduction in tax rate. Stacey Jordan, Finance Director, gave a brief overview of the proposed operating and capital budget. There was discussion among city council and staff. Council Member Myers asked, “What is the root cause of us losing these funds? Is it not being allocated as it should be or are they not being appropriated appropriately within a department?” Mr. Miller stated, “Mr. Myers, if we are going to discuss employees.” Council Member Myers stated, “I am not discussing an employee I am asking why the funding is not being appropriated correctly. I had not pointed a finger at an employee. I just simply asked a question as to the root cause. Now if it implies or implicates then you may address that question in a closed session.” Council Member Cuthbert stated, “May we go into closed session to get an answer to this? I would like to know who is responsible.” Mayor Parham stated, “Okay, Mr. Williams can you give me the terminology for closed session.” Mr. Williams stated, “The mayor would entertain a motion to convene in closed session pursuant to §2.2-3711(A)(1) of the Code of Virginia for the purpose of discussing the performance of specific public officer or employee. *Audio available upon request. Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -3– ______________________________________________________________________________ Council Member Myers made a motion that the City Council go into closed session for the purposes noted. Council Member Westbrook seconded the motion. There was no discussion on the motion, which was approved on roll call vote. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham City Council entered closed session at 12:49 p.m. CERTIFICATION: Mr. Williams stated, “The Mayor would entertain a motion to conclude the closed session called this evening to certify in accordance with §2.2-3712 that the Code of Virginia that to the best of each members knowledge that only public business matter lawfully exempted from the opening meeting requirements were discussed and that only such public business matters were identified in the motion by which the closed meeting was convened, heard, discussed, or considered. If any member believes that there was a departure from the foregoing requirements should so state prior to the vote indicating the substance for departure that in his or her judgment has taken place. This requires a roll call vote Mr. Mayor.” Council Member Hill made a motion to return City Council into open session and certify the purposes of the closed session. Council Member Myers seconded the motion. There was no discussion on the motion. The motion was approved on roll call vote. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, and Parham 22-R-34 A RESOLUTION CERTIFYING, AS REQUIRED BY THE CODE OF VIRGINIA, SECTION 2.2- 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. City Council returned to open session at 1:16p.m. There was continued discussion among City Council and staff. Mr. Williams stated, “The manager would like to put something on the record regarding pay increases. Mr. Miller stated, “Just to clarify something that I said earlier. You will see when we do our amendment starting July 1, that the employees, all that fall under the city manger and council and not the constitutional or state officers will receive a 5% pay increase. However, employees that have had a written reprimand or higher, a suspension or been put in the street for a number of days for behavior. Or an employee that is on a performance improvement plan, he or she will not be eligible to get that 5% starting July 1. They will be eligible after the 12 months that they had their infraction, or their infraction has been cleared. Then he or she through his supervisor is eligible for the 5%. Nothing prohibits any employee who is a full-time employee who is non- constitutional will be eligible for this 5%. I wanted to make sure that I got that out their sir.” Council Member Myers made a motion to adopt the ordinance. Vice Mayor Smith-Lee seconded the motion. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham *Audio available upon request. Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -4– ______________________________________________________________________________ 22-ORD-33 AN ORDINANCE MAKING APPROPRIATIONS IN THE ALL-FUNDS BUDGET FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2022, AND ENDING JUNE 30, 2023. c. Consideration of an ordinance to authorize the City Attorney to proceed with condemnation of a portion of parcel 065-110004, 2793 South Crater Road. BACKGROUND: The city received Congestion Mitigation and Air Quality Improvement (CMAQ) funding for the South Crater Road Area – Signal Coordination project, to make improvements to the traffic signals along South Crater Road from Flank Road to Rives Road. The City’s engineering consultant Kimley- Horn has developed plans to construct new traffic signals and pedestrian crossing. 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement is required from parcel 065-110004, property owner – BHY Investment 2, LLC, a Virginia limited liability company, to construct improvements. Kimley-Horn subconsultant, KDR Real Estate Services, determined value of the easements required and negotiated with BHY Investment 2, LLC. The property owner initially agreed to negotiated amount but now refuses to sign any documents. RECOMMENDATION: The Public Works Department recommends proceeding with the eminent domain process and approving the attached ordinance. Andrew Barnes, City Engineer and General Manager of Utilities, gave a brief overview of the requested approval of ordinance. Council Member Hill made a motion to adopt the ordinance. Council Member Myers seconded the motion. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham 22-ORD-34 AN ORDINANCE TO AUTHORIZE THE CITY ATTORNEY TO PROCEED WITH CONDEMNATION OF A PORTION OF PARCEL 065-110004, 2793 SOUTH CRATER ROAD. d. Consideration of an appropriation of the America Rescue Plan Act (ARPA) – Group Violence Intervention Grant - $300,000 – 2nd Reading BACKGROUND: The City of Petersburg Department of Police has been awarded a grant from the Commonwealth of Virginia Office of the Attorney General for the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant in the amount of 300,000. RECOMMENDATION: Recommend that Council approve the appropriation ordinance of the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant for $300,000. Stacey Jordan, Finance Director, gave a brief overview of the consideration of an appropriation in the amount of $300,000. Council Member Myers made a motion to adopt the ordinance. Council Member Hill seconded the motion Mayor Parham opened the floor for public comments. Seeing no hands, Mayor Parham closed the public hearing. Council Member Wilson-Smith stated, “At the first reading, we agreed then that before this money is *Audio available upon request. Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -5– ______________________________________________________________________________ spent that it would come back to council. Is that still in place?” Mr. Miller stated, “Yes.” The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham 22-ORD-35 AN ORDINANCE, AS AMENDED, SAID ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING JULY 1, 2022, AND ENDING JUNE 30, 2023, FOR THE GRANTS FUND. e. Consideration to amend Ordinance Section 106-1. – Rate of taxation on real property. BACKGROUND: The City has not had a tax reduction in Real Property taxes. For FY22-23 Council choices is to reduce the tax rate. Advertisement was placed with the Notice of proposed tax rate was advertised April 5th and the public hearing was conducted on April 19th. RECOMMENDATION: It is the recommendation of City staff that Council adopt a tax rate necessary to accomplish the Council's choices in the FY22-23 budget and approve the attached ordinance. Stacey Jordan, Finance Director, gave a brief overview of the consideration to amend section 106-1. Mr. Williams stated, “Just for clarification. This is just a house cleaning effort to set the real estate tax rate and to start the process to do it by ordinance which is how you are supposed to do it. Next, year you will see an actual text revision to 106.1 to make it cleaner and easier. But Mrs. Jordan noted that the way that it is done is the way that we need to start doing it this way to be in compliance with the code.” Mayor Parham stated, “I would like to thank staff for helping us get there. Because it is definitely a huge win for the citizens of Petersburg in getting this tax rate down. It has been $1.35 for such a long time. I definitely commend staff for building a budget and factoring in that $1.27 and giving the citizens of Petersburg some relief here at a time when everything else is going through the roof.” Council Member Hill made a motion to adopt the ordinance. Council Member Myers seconded the motion. Mayor Parham opened the floor for public comments. Seeing no hands, Mayor Parham closed the public hearing. The motion was approved on roll call. On roll call vote, voting yes: Cuthbert, Wilson-Smith, Myers, Westbrook, Hill, Smith-Lee, and Parham 22-ORD-36 AN ORDINANCE TO AMEND SECTION 106.1 PERTAINING TO REAL PROPERTY TAX RATE. 3. ADJOURNMENT: City Council adjourned at 1:28 p.m. _________________________ Clerk of City Council *Audio available upon request. Minutes from the Petersburg Special City Council meeting held on May 24, 2022 -6– ______________________________________________________________________________ APPROVED: _________________________ Mayor *Audio available upon request.

Agenda

City of Petersburg City Council Virginia www.petersburgva.gov Samuel Parham, Mayor – Ward 3 Annette Smith-Lee, Vice-Mayor – Ward 6 Treska Wilson-Smith, Councilor – Ward 1 Darrin Hill, Councilor – Ward 2 May 24, 2022 - Special City Charlie Cuthbert, Councilor – Ward 4 W. Howard Myers, Councilor– Ward 5 Council Meeting Arnold Westbrook, Jr., Councilor – Ward 7 May 24, 2022 Interim City Manager Petersburg Public Library Kenneth Miller 201 West Washington Street Petersburg, VA 23803 12:00 PM 1. Roll Call 2. Discussion and Consideration a. Consideration to approve and appropriate the budget for Petersburg City Public Schools for FY22- 23. (Page 2) b. Consideration of the City of Petersburg's FY2022-23 Proposed Operating and Capital Budget and Appropriation Ordinance to include rate of taxation on real property. (Page 6) c. Consideration of an ordinance to authorize the City Attorney to proceed with condemnation of a portion of parcel 065-110004, 2793 South Crater Road. (Page 12) d. Consideration of an appropriation of the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant - $300,000 - 2nd Reading (Page 69) e. Consideration to amend Ordinance Section 106-1. - Rate of taxation on real property. (Page 71) 3. Adjournment Page 1 of 75 2.a. City of Petersburg Ordinance, Resolution, and Agenda Request DATE: May 24, 2022 TO: The Honorable Mayor and Members of City Council THROUGH: Kenneth Miller, Interim City Manager FROM: Maria Pitre-Martin, Stacey Jordan RE: Consideration to approve and appropriate the budget for Petersburg City Public Schools for FY22-23. (Page 2) PURPOSE: To approve and appropriate the budget for Petersburg City Public Schools for FY22-23. REASON: The City of Petersburg City Council must approve and appropriate the budget for Petersburg City Public Schools. RECOMMENDATION: Staff recommends that City Council adopts and approves the Petersburg City Public Schools FY2022-23 Proposed Budget and Appropriation Ordinance. BACKGROUND: The total budget for Petersburg City Public Schools is $91,050,600 which includes the following breakdown: Local Fees: $66,000 Erate: $225,000 Sales Tax: $5,420,137 State: $42,278,401 Federal: $55,000 City Transfer: $10,000,000 Food Service: $2,927,000 Grants: $30,079,062 COST TO CITY: 10,000,000 BUDGETED ITEM:N/A REVENUE TO CITY: N/A CITY COUNCIL HEARING DATE: 5/24/2022 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: Petersburg City Public Schools AFFECTED AGENCIES: Petersburg City Public Schools RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: N/A Page 2 of 75 REQUIRED CHANGES TO WORK PROGRAMS: N/A ATTACHMENTS: 1. Schools appropriation FY22-23 2. Attachment A for City Memo Page 3 of 75 AN ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2022, AND ENDING ON JUNE 30, 2023, IN THE SCHOOL OPERATING, FOOD SERVICE, AND SPECIAL REVENUE FUNDS BE IT ORDAINED by the City Council of the City of Petersburg, Virginia: I. That appropriation for the fiscal year commencing July 1, 2022, and ending June 30, 2023, are made from the following resources and revenues anticipated for the fiscal year. Resources Revenue: State Standards of Quality, Lottery Proceeds, Incentive, and Categorical funding $42,278,401 State Sales and Use Tax 5,420,137 Food Service 2,927,000 Federal Revenue (JROTC) 55,000 Special Revenue (State and Federal Grants) 30,079,062 Transfer from City General Fund 10,000,000 Local Funding 66,000_ Total Revenue $91,050,600 Total Resources $91,050,600 II. That there shall be appropriated from the resources and revenue of the City of Petersburg for the fiscal year commencing July 1, 2022 and ending June 30, 2023, the following sums for the purposes mentioned: Requirements: Operating Fund $58,044,538 Food Service Fund 2,927,000 Special Revenue Fund 30,079,062 Total Requirements $91,050,600 III. That approved legal purchase orders outstanding at June 30, 2022 are hereby carried forward and re-appropriated as of July 1, 2022. IV. That all unencumbered balances for the annual appropriation standing on the books of the Finance Director as of June 30, 2022 shall be cancelled; and subject to audit., shall be re- appropriated into FY2022. V. That this ordinance shall be in force from and after July 1, 2022 and all other ordinances or parts of ordinances in conflict herewith are hereby repealed. Page 4 of 75 Attachment A Petersburg City Public Schools FY2022 ‐ 2023 Proposed Budget FY23 FY22 School Board Difference Adopted Proposed FY22 to FY23 Operating Fund Local Fees 82,500 66,000 (16,500) ERATE 225,000 225,000 ‐ Sales Tax 4,948,786 5,420,137 471,351 State 32,083,185 42,278,401 10,195,216 Federal 47,000 55,000 8,000 City Transfer 10,000,000 10,000,000 ‐ Total Operating 47,386,471 58,044,538 10,658,067 Food Service 2,928,900 2,927,000 (1,900) Special Revenue (Grants) 7,518,045 30,079,062 22,561,017 Total All Funds 57,833,416 91,050,600 33,217,184 Page 5 of 75 2.b. City of Petersburg Ordinance, Resolution, and Agenda Request DATE: May 24, 2022 TO: The Honorable Mayor and Members of City Council THROUGH: Kenneth Miller, Interim City Manager FROM: Stacey Jordan RE: Consideration of the City of Petersburg's FY2022-23 Proposed Operating and Capital Budget and Appropriation Ordinance to include rate of taxation on real property. (Page 6) PURPOSE: Consideration of the City of Petersburg's FY2022-23 Proposed Operating and Capital Budget and Appropriation Ordinance to include rate of taxation on real property. REASON: The Interim City Manager presented the FY2022-23 Proposed Operating and Capital Budget to City Council on March 29, 2022 for the operating budget and the capital budget on March 30, 2022 to include a reduction to the Real Property tax decrease which would be $1.27 per $100 of assessed value. There were two community budget work sessions held on April 13th and April 14th and an official public hearing was held on April 19th to receive community input. The final step in the budget process is for City Council to adopt the FY2022-23 Proposed Operating Budget and approve the Appropriation Ordinance. RECOMMENDATION: Staff recommends that City Council adopts and approves the City of Petersburg's FY2022-23 Proposed Operating and Capital Budget and Appropriation Ordinance include reduction in tax rate BACKGROUND: The Interim City Manager has proposed an operating spending plan of $104,201,022 and a capital spending plan of $17,367,693 for FY2022-23. The Interim City Manager presented the FY2022-23 Proposed Operating and Capital Budget to City Council on March 29, 2022 for the operating budget and the capital budget on March 30, 2022. There were two community budget work sessions held on April 13th and April 14th and an official public hearing was held on April 19th to receive community input. The final step in the budget process is for City Council to adopt the FY2022-23 Proposed Operating Budget and approve the Appropriation Ordinance. COST TO CITY: $104,201,022 BUDGETED ITEM: N/A REVENUE TO CITY: $104,201,022 CITY COUNCIL HEARING DATE: 5/24/2022 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: N/A AFFECTED AGENCIES: ALL Page 6 of 75 RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: N/A REQUIRED CHANGES TO WORK PROGRAMS: N/A ATTACHMENTS: 1. FY2022-2023 Proposed All Funds Budget 03.30.2022 2. NOTICE OF PROPOSED REAL PROPERTY TAX DECREASE 3. 2 Page 7 of 75 AN ORDINANCE MAKING APPROPRIATIONS IN THE ALL FUNDS BUDGET FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2022 AND ENDING JUNE 30, 2023. BE IT ORDAINED by the City Council of the City of Petersburg, Virginia: I. That appropriations for the fiscal year commencing July 1, 2022 and ending June 30, 2023, in the All Funds Budget are made from the following resources and revenues of the City, for the fiscal year ending June 30, 2023. Revenue General Fund Revenue $73,856,740 General Property Taxes $36,957,828 Other Local Taxes $13,577,400 Licenses, Permits and Fees $302,840 Fines and Forfeitures $405,000 Revenue from Use of Money and Property $110,000 Revenue from Other Agencies $18,723,284 Charges for Services $2,625,008 Recovered Costs $40,500 Miscellaneous Revenues $914,880 Non-Revenue Receipts $200,000 Grants Fund Revenue $1,002,267 Community Development Block Grant $628,399 VDOT Highway Maintenance Urban Allocation $5,984,699 Utilities $15,116,132 Mass Transit $4,974,745 Dogwood Trace Golf Course $1,379,028 Stormwater $1,259,012 Total Revenue $104,201,022 II. That there shall be appropriated from the resources and revenues of the City of Petersburg for the fiscal year commencing on July 1, 2022 and ending June 30, 2023 the following sums for the purposes mentioned: Expenses General Fund Expenditures $73,856,740 General Government $6,380,474 Constitutional Offices $5,287,980 Public Safety $17,785,504 Courts & Other Public Safety $273,360 General Services $5,536,145 Social Services $14,596,193 Recreation & Community Engagement $1,977,763 Page 8 of 75 Development Services $2,427,008 Debt Service $3,127,269 Fund Balance Restoration $1,000,000 Schools Transfer $10,000,000 Non-Departmental $3,902,716 Transfers to other Funds $1,562,329 Grants Fund $1,002,267 Community Development Block Grant $628,399 VDOT Highway Maintenance Urban Allocation $5,984,699 Utilities $15,116,132 Mass Transit $4,974,745 Dogwood Trace Golf Course $1,379,028 Stormwater $1,259,012 Total Expenses $104,201,022 This budget recommends a reduction in the Real Estate Tax Rate from $1.35 to $1.27: No change to the Personal Property Tax Rate of $4.90: or the Machinery & Tools Tax Rate of $3.80. Page 9 of 75 NOTICE OF PROPOSED REAL PROPERTY TAX DECREASE The City of Petersburg proposes to decrease property tax levies. 1. Assessment Decrease: Total assessed value of real property, excluding assessments due to new construction and improvements to property, exceeds last year’s total assessed value of real property by 13 percent. 2. Lowered Rate necessary to Offset Increased Assessment: The tax rate which would levy a reduction in the amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusion mentioned above, would be $1.27 per $100 of assessed value. This rate will be known as the “lowered tax rate.” 3. Effective Rate Decrease: The City of Petersburg is proposing to adopt a tax rate of $1.27 per $100 of assessed value. The difference between the lowered tax rate and the proposed tax rate would be $.08 per $100. The difference will be known as the “effective tax rate decrease.” Individual property taxes many, however, increased at a percentage greater than or less than the above percentage. 4. Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues, the total budget of the City of Petersburg will exceed last year’s by .32 percent. A public hearing on the decrease will be held on April 19, 2022, at the Petersburg Public Library, 201 West Washington Street, Petersburg, Virginia. Taxpayers may request to examine appraisal cards, working papers and other information regard the methodology employed in calculating the assessed value available at www.petersburg.gov/148/City-Assessor, via telephone at (804) 733- 2336, or may be obtained at the City Assessor’s Office. Issued in accordance with § 58.1-3321, Code of Virginia, 1950, as amended. Page 10 of 75 Page 11 of 75 2.c . City of Petersburg Ordinance, Resolution, and Agenda Request DATE: May 24, 2022 TO: The Honorable Mayor and Members of City Council THROUGH: Tangela Innis, Deputy City Manager Kenneth Miller, Interim City Manager FROM: Randall Williams RE: Consideration of an ordinance to authorize the City Attorney to proceed with condemnation of a portion of parcel 065-110004, 2793 South Crater Road. (Page 12) PURPOSE: To authorize the City Attorney to proceed with condemnation of a portion of parcel 065-110004, 2793 South Crater Road, property owner – BHY Investment 2, LLC, a Virginia limited liability company. REASON: The city requires 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement to construct signal improvements at the southeast corner of South Crater Road and Flank Road intersection. RECOMMENDATION: The Public Works Department recommends proceeding with the eminent domain process and approving the attached ordinance. BACKGROUND: The city received Congestion Mitigation and Air Quality Improvement (CMAQ) funding for the South Crater Road Area – Signal Coordination project, to make improvements to the traffic signals along South Crater Road from Flank Road to Rives Road. The City’s engineering consultant Kimley-Horn has developed plans to construct new traffic signals and pedestrian crossing. 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement is required from parcel 065-110004, property owner – BHY Investment 2, LLC, a Virginia limited liability company, to construct improvements. Kimley-Horn subconsultant, KDR Real Estate Services, determined value of the easements required and negotiated with BHY Investment 2, LLC. The property owner initially agreed to negotiated amount but now refuses to sign any documents. COST TO CITY: Nominal cost associated with property value. Legal/Filing Fees BUDGETED ITEM: REVENUE TO CITY: CITY COUNCIL HEARING DATE: 5/24/2022 Page 12 of 75 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: AFFECTED AGENCIES: RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: REQUIRED CHANGES TO WORK PROGRAMS: ATTACHMENTS: 1. BHY Investment 2 LLC, Agenda Request Parcel 065-110004 2. BHY Investment 2 LLC, Council Ordinance 3. Basic Administrative Report (BAR), 6-29-2021 4. ROW Administrative Settlement Evaluation Form, 9-14-2021 5. ROW Negotiation Report 6. KDR Letter to Eun Lee, 5-28-2021 7. KDR Letter to Eun Lee, 6-28-2021 8. KDR Letter to Eun Lee, 7-28-2021 9. KDR Letter to Eun Lee, 8-16-2021 10. KDR Letter to Eun Lee, 11-23-2021 11. KDR Letter to Eun Lee, 12-3-2021 12. KDR Letter, 1-5-2022 Page 13 of 75 City of Petersburg Agenda Request DATE: March 24, 2022 TO: Honorable Mayor and Members of City Council THROUGH: Kenneth Miller, Interim City Manager FROM: Randall Williams, Interim Director of Public Works RE: An Ordinance to Authorize the City Attorney to proceed with condemnation of a portion of Parcel 065-110004, 2793 South Crater Road PURPOSE: To authorize the City Attorney to proceed with condemnation of a portion of parcel 065-110004, 2793 South Crater Road, property owner – BHY Investment 2, LLC, a Virginia limited liability company. REASON: The city requires 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement to construct signal improvements at the southeast corner of South Crater Road and Flank Road intersection. RECOMMENDATION: The Public Works Department recommends proceeding with the condemnation process. BACKGROUND: The city received Congestion Mitigation and Air Quality Improvement (CMAQ) funding for the South Crater Road Area – Signal Coordination project, to make improvements to the traffic signals along South Crater Road from Flank Road to Rives Road. The City’s engineering consultant Kimley-Horn has developed plans to construct new traffic signals and pedestrian crossing. 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement is required from parcel 065- 110004, property owner – BHY Investment 2, LLC, a Virginia limited liability company, to construct improvements. Kimley-Horn subconsultant, KDR Real Estate Services, determined value of the easements required and negotiated with BHY Investment 2, LLC. The property owner initially agreed to negotiated amount but now refuses to sign any documents. COST TO CITY: N/A BUDGETED ITEM: N/A REVENUE TO CITY: N/A CITY COUNCIL HEARING DATE: Page 14 of 75 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: N/A AFFECTED AGENCIES: N/A RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: N/A REQUIRED CHANGES TO WORK PROGRAMS: N/A ATTACHMENTS: Yes STAFF: Kenneth Miller, Interim Director of Public Works Page 15 of 75 AN ORDINANCE TO AUTHORIZE THE CITY ATTORNEY TO PROCEED WITH CONDEMNATION OF A PORTION OF PARCEL 065-110004, 2793 SOUTH CRATER ROAD _____________________________________________ WHEREAS, for the construction of new traffic signals at the intersection of South Crater Road and Flank Road it is necessary to purchase 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement; and WHEREAS, the City of Petersburg, Virginia, Department of Public Works engineering consultant, Kimley-Horn through their subconsultant KDR Real Estate Services, has attempted to negotiate with the property owner BHY Investment 2, LLC, of 2793 South Crater Road, parcel 065- 110004; and WHEREAS, BHY Investment 2, LLC has refused to sell to the City of Petersburg, Virginia, 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement to allow construction of new traffic signals; and WHEREAS, to allow construction of the new traffic signals the Public Works Department has recommended proceeding with condemnation to obtain 153 square feet (0.004 acres) of permanent signal easement and 37 square feet (0.001 acres) of temporary construction easement. NOW, THEREFORE, BE IT ORDAINED, by the City Council for the City of Petersburg, Virginia that the City Attorney is authorized to proceed with condemnation of the portion of property required for the permanent signal easement and the temporary construction easement. 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City of Petersburg Ordinance, Resolution, and Agenda Request DATE: May 24, 2022 TO: The Honorable Mayor and Members of City Council THROUGH: Kenneth Miller, Interim City Manager FROM: Margo Hardy RE: Consideration of an appropriation of the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant - $300,000 - 2nd Reading (Page 69) PURPOSE: To appropriate the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant in the amount of $300,000. REASON: These are the funds awarded to the City of Petersburg Department of Police and issued by the Commonwealth of Virginia Office of the Attorney General. RECOMMENDATION: Recommend that Council approve the appropriation ordinance of the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant for $300,000. BACKGROUND: The City of Petersburg Department of Police has been awarded a grant from the Commonwealth of Virginia Office of the Attorney General for the American Rescue Plan Act (ARPA) - Group Violence Intervention Grant in the amount of 300,000. COST TO CITY: There is no monetary cost to the City. This is a reimbursement grant. BUDGETED ITEM: REVENUE TO CITY: $300,000 CITY COUNCIL HEARING DATE: 5/24/2022 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: N/A AFFECTED AGENCIES: City of Petersburg Department of Police RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: N/A REQUIRED CHANGES TO WORK PROGRAMS: N/A ATTACHMENTS: 1. American Rescue Plan Act (ARPA) Group Violence Intervention Grant Page 69 of 75 AN ORDINANCE, AS AMENDED, SAID ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR COMMENCING JULY 1, 2022, AND ENDING JUNE 30, 2023 FOR THE GRANTS FUND. _____________________________________________________________________ BE IT ORDAINED by the City Council of the City of Petersburg, Virginia: I. That appropriations for the fiscal year commencing July 1, 2022, in the Grants Fund are made for the following resources and revenues of the city, for the fiscal year ending June 30, 2023. Previously adopted $0.00 ADD: American Rescue Plan Act (ARPA) Group Violence Intervention Grant $300,000 Total Revenues $300,000 II. That there shall be appropriated from the resources and revenues of the City of Petersburg for the fiscal year commencing July 1, 2022 and ending June 30, 2023, the following sums for the purposes mentioned: Previously adopted $0.00 ADD: American Rescue Plan Act (ARPA) Group Violence Intervention Grant $300,000 Total Expenses $300,000 Page 70 of 75 2.e . City of Petersburg Ordinance, Resolution, and Agenda Request DATE: May 24, 2022 TO: The Honorable Mayor and Members of City Council THROUGH: Kenneth Miller, Interim City Manager FROM: Stacey Jordan RE: Consideration to amend Ordinance Section 106-1. - Rate of taxation on real property. (Page 71) PURPOSE: Amend Ordinance Section 106-1. Rate of taxation on real property. REASON: The City of Petersburg recently completed the reassessment process. With these reassessment figures, we have computed a revenue neutral tax rate for your consideration. The FY22-23 Budget was compiled based on the reduction. The reduction does not hinder the city from maintaining the budget or maintain services, but to reallocate funds to create a more livable City for all. RECOMMENDATION: It is the recommendation of City staff that Council adopt a tax rate necessary to accomplish the Council's choices in the FY22-23 budget and approve the attached ordinance. BACKGROUND: The City has not had a tax reduction in Real Property taxes. For FY22-23 Council choices is to reduce the tax rate. Advertisement was placed with the Notice of proposed tax rate was advertised April 5th and the public hearing was conducted on April 19th. COST TO CITY: BUDGETED ITEM: yes REVENUE TO CITY: $26,095,839 CITY COUNCIL HEARING DATE: 5/24/2022 CONSIDERATION BY OTHER GOVERNMENT ENTITIES: N/A AFFECTED AGENCIES: General Government RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: N/A REQUIRED CHANGES TO WORK PROGRAMS: N/A Page 71 of 75 ATTACHMENTS: 1. Ordinance to amend Section 106.1 2. 2 3. Revenue Neutral Page 72 of 75 AN ORDINANCE TO AMEND SECTION 106.1 PERTAINING TO REAL PROPERTY TAX RATE WHEREAS, The City of Petersburg Code has a codified section that depicts a real property for all tracts of land, lots and improvements thereon; and, WHEREAS, this aforementioned tax if referenced in Section 106.1 of the City of Petersburg code; and WHEREAS, The City of Petersburg Council revisits this section of Petersburg City Code in correlation with reviewing budget options for the impending fiscal year and amends the aforementioned tax rate to accomplish Councils priorities in the Cit of Petersburg next fiscal year’s budget. NOW therefore be it ORDAINED, that the adoption of this ordinance shall implement the proposed amendments to Sections 106.1 of the City of Petersburg City Code to change the real estate tax rate to $1.27 cents per $100 of assessed value. Page 73 of 75 Page 74 of 75 Revenue Neutral Rate Calculations & Options for FY 21-22 Budget 58.1-3321. Effect on rate when assessment results in tax increase; public hearings. A. When any annual assessment, biennial assessment or general reassessment of real property by a county, city or town would result in an increase of one percent or more in the total real property tax levied, such county, city, or town shall reduce its rate of levy for the forthcoming tax year so as to cause such rate of levy to produce no more than 101 percent of the previous year's real property tax levies, unless subsection B is complied with, which rate shall be determined by multiplying the previous year's total real property tax levies by 101 percent and dividing the product by the forthcoming tax year's total real property assessed value. Calculation: RE Tax Tax Yr RE Actual Levy Rate x Fiscal Year Rate/ $100 Assessed Value-1 Assessment Increase 2021-22 .. $2,185,947,332 $29,510,289 13.43% Grand (Deferred) Total Local Levy (21-22) = 26,015,940 * 101% = 26,276,099.40 2020-21 $1.35 $1,927,106,692 $26,015,940 Grand (Deferred) Total Value (2021-2022 estimate) = 2,185,947,332 Tax Rate (2023) = 0.0135 Notes: 1 estimate from Commissioner of Revenue while awaiting formal submission of date from Assessor and using COR value for 2022-23 Tax Rate Reduction Scenario- Options: Median Assessment Reduced tax rate Option 1 Option 2 Option 3 to PY levy plus 1% reduce tax rate to 100% of reduce tax rate to 100% No change in Current Tax Rate Option 1 New tax rate per$1.20 statue $1.21 previous year + 2% revenue $1.23 of previous year + 3% $1.27 tax rate $ 102,000 $ 102,000 New RE levy $26,276,100 $26,536,259 neutral $26,796,419 revenue neutral $27,761,531 $ 1.35 $ 1.27 Actual RE revenue $24,699,534 $24,944,084 $25,188,633 $26,095,839 $ 1,377 $ 1,295 Difference in Revenue for each Difference from $ 82 option $244,550 $229,877 $852,773 Current Rate Calculation to Determine Revenue Neutral Tax Rate as per 58.1-3321: 1. Determine tax levy for current fiscal year and the increase 2. If greater than 1% increase, must reduce new levy to 101% of previous year the increase is 13.43% so must reduce rate to = 101% 3. a 1% increase of the previous year level = $26,276,100 4. calculation to reduce the tax to equate to 101% of last year's levy $26,276,100 = X ($1,425,000,000) 5. Solve for X = $1.2020 6. Check Levy that equates to 101% of previous year levy $1,425,000,000 x $.7958 = $26,276,100 7. Tax rate would reduce to $1.2020 8. Tax rate reduction $0.1480 in cents = 14.80 Other Options: 1. reduce tax rate to greater than 101% of the previous year levy, see section B pf 58.1-3321; requires separate public hearing and 30 day notice or 14 depending on amendments by April 30 2. To reduce that tax rate to 100% revenue neutral 3. to reduce rate beyond revenue neutral, = 1 cent reduction is $218,594.73 Is tax base total the Grand total including land use deferred total or Grand deferred total Board wants to use $250,000 for FB Page 75 of 75

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