City Council Work Sessions

City Council Work Session June 15, 2022 Work Session of the Suffolk City Council was held in the City Council Chamber, 442 West Washington Street, on Wednesday, June 15, 2022, 4:00 p.m. PRESENT Council Members - Michael D. Duman, Mayor, presiding Leroy Bennett, Vice Mayor Shelley Butler Barlow Donald Z. Goldberg Timothy J. Johnson Lue R. Ward, Jr. LeOtis L. Williams Erika S. Dawley, City Clerk William E. Hutchings, Jr., City Attorney Albert S. Moor, City Manager ABSENT Roger W. Fawcett (excused) Mayor Duman announced that Council Member Roger Fawcett is excused from today’s Work Session. PLAN OF FINANCE Utilizing a PowerPoint presentation, Kyle Laux, Senior Vice President, Davenport and Company, the City’s financial advisors, gave an update about the above referenced item. Referring to the presentation, Council Member Goldberg asked about the need to offer the 2022 Stormwater Enterprise Revenue Bonds and the potential impact on the City’s bond rating. Mr. Laux said that the City would still be in compliance with its financial policies, which will be viewed positively by the bond rating agencies. Referring to the presentation, Council Member Johnson inquired about the methodology of the payments of the City’s stormwater projects. Mr. Laux stated that to date, the City has funded all stormwater projects via pay as you go. Referring to the presentation, Council Member Johnson called for the amount projected to be borrowed as it relates to the 2022 Stormwater Enterprise Revenue Bonds. Mr. Laux said the City would be borrowing $5,000,000 this year and $5,000,000 the following year. Referring to the presentation, Council Member Johnson sought clarification about the use of cash in addition to the funds related to the 2022 Stormwater Enterprise Revenue Bonds for stormwater capital projects. Mr. Laux explained that cash will also serve as a funding source in addition to the $10,000,000 in 2022 Stormwater Enterprise Revenue Bonds. Council Member Johnson opined about the City’s previous approach to assigning funds for upcoming stormwater capital projects. City Manager Moor advised that the use of the 2022 Stormwater Enterprise Revenue Bonds will allow the City to address the stormwater capital projects at an accelerated pace. 1 City Council Work Session June 15, 2022 Referring to the presentation, Council Member Williams requested information about the anticipated cost of stormwater capital projects in Fiscal Year 2024 to $10,920,000. Mr. Laux replied that the annual cost of the stormwater capital projects is tied to the City’s Capital Improvement Plan. Assistant Finance Director Charles Meek added that at this time, the aforementioned amount addresses the contemplated multiyear projects in Fiscal Year 2024. He further stated that the City will only borrow money for construction and will not borrow more than is needed. Mayor Duman queried about today’s activity at the Federal Reserve Bank as it relates to interest rates. Mr. Laux said that the Federal Reserve Bank increase interest rates .75%. Mayor Duman opined about the City’s ability to lock into 20-year fixed rate loans. Mr. Laux stated that it is the continued intent to seek the best rates available at any given time. He added that banks would continue to offer localities 20-year fixed rate loans. CLOSED MEETING City Clerk Dawley presented the Closed Meeting motion for City Council’s consideration: 1. Pursuant to Virginia Code Sections 2.2-3711(A)(8) and (A)(1), the consultation with legal counsel employed by a public body regarding specific legal matters requiring the legal advice of such counsel, and the discussion, consideration, or interviews of prospective candidates for appointment and the assignment, appointment, and performance of specific public officers or appointees of the City, specifically the appointments as shown on the attached list for vacancies or term expirations for the Clean Community Commission, Early Childhood Development Commission, Hampton Roads Planning District Commission, Human Services Advisory Board, Local Board of Building Code Appeals, Paul D. Camp Community College Board, Sister Cities Commission, Tidewater Youth Services Commission and Western Tidewater Water Authority; and 2.. Pursuant to Virginia Code Section 2.2-3711(A)(5) and (8), the discussion of a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facilities in the community; and consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel, specifically concerning EDIP proposals regarding Project Jersey and Project Stone; and 3. Pursuant to Virginia Code Section 2.2-3711(A)(3) and (A)(8) the discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body; and, consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel regarding Tax Map Parcel 10*46. 2 City Council Work Session June 15, 2022 Vice Mayor Bennett, on a motion seconded by Council Member Williams, moved that City Council convene in a closed meeting for the above referenced purposes, by the following roll call vote: AYES: Mayor Duman, Vice Mayor Bennett, and Council Members Butler Barlow Goldberg, Johnson, Ward and Williams 7 NAYS: None (Council Member Fawcett excused.) 0 Mayor Duman announced that Council Member Roger Fawcett has requested to participate electronically in today’s Closed Meeting, because he is unable to be present because of a medical condition. Vice Mayor Bennett, on a motion seconded by Council Member Johnson, moved that Council Member Roger Fawcett be approved to participate electronically in today’s Closed Meeting, because he is unable to be present because of a medical condition, by the following roll call vote: AYES: Mayor Duman, Vice Mayor Bennett, and Council Members Butler Barlow Goldberg, Johnson, Ward and Williams 7 NAYS: None 0 City Council convened in Closed Meeting at 4:39 p.m. The Closed Meeting concluded at 5:44 p.m. Teste: ____________________________________________ Erika S. Dawley, MMC, City Clerk Approved: _________________________________________ Michael D. Duman, Mayor APPROVED: DECEMBER 21, 2022 3