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HomeMy Public PortalAbout2007_03_13 COUNCIL MEETING March 13, 2007 7:00 p.m. Presentation of County Office Proposal - Keane Enterprises - Andy Shuckra Mr. Shuckra gave a presentation on the Loudoun County Government Center proposal for the Oaklawn property. He stated the zoning fits the density and use of developing the government center in Land Bays A and B. He discussed the phasing of both Land Bay A and B which would consist of 500,000 Square Feet of building spaces total in Phase I. Phase 2 would add an additional 800,000 Square Feet. The positive impact on Leesburg is (1) Harrison Street and Shenandoah Building potentially would come back on the property tax roles; (2) the key component of Leesburg's identity would be retained; (3) the southeast sector of Leesburg would be energized by accelerating a new growth area; and no rezoning would be required. The transportation advantages are (1) Battlefield/Greenway interchange will not be tolled; (2) excellent access to primary road arteries in Loudoun, Route 15, Route 7, and Route 28; (3) links to local and regional bus transit, and future metro. Oaklawn is close to the proposed Park and Ride on Sycolin Road; and 913 of the 1159 County employees come from Leesburg or points north or west. Additional benefits include the continuity of the County Seat remaining in Leesburg; constituents to the west would be disenfranchised with additional distance, fuel and tolls with an eastward location; the public at large is familiar with the convenience and affordability of Leesburg as the location for government services; and a location in Oaklawn would provide minimal disruption. Mr. Shuckra stated the site would be on a gateway location with superior visibility. A thoughtful design and materials can make an architectural statement at a prestigious site. Further, the site plan is ready as no rezoning is necessary and the uses and densities exactly match zoning in these land bays. It complies with Regional Office in the Town Plan and the onsite infrastructure is approved, bonded and under construction . He explained the infrastructure of Phase 1 and 2. In conclusion, he stated that through superior transportation infrastructure, fiscal responsibility, an active mixed use environment, and affordable access, Oaklawn offers the best solution for the Town, County and citizens. Council Chambers, 25 West Market Street, 7:30 p.m. Mayor Umstattd presiding. Councilmembers Present: Kelly Burk, Kathryn Sheldon Hammier, Susan Horne, Marty Martinez, Ken Reid, Kevin Wright, and Mayor Kristen Umstattd. Town Council Minutes for meeting of March 13. 2007 Page 2 Councilmembers Absent: Staff Present: Town Manager John Wells, Assistant to the Town Manager Nicole Ard, Assistant to the Town Manager Kathy Leidich, Director of Engineering and Public Works Tom Mason, Chief of Police Joe Price, Director of Planning, Zoning and Development Susan Swift, Director of Capital Projects Management Nagi Elsewaissi, Director of Finance Norm Butts, Director of Utilities Randy Shoemaker, Airport Director Tim Deike, Capital Projects Engineer Ann Geiger, Planner Wade Burkholder and Chris Murphy, Zoning Administrator Brian Boucher, Comprehensive Planner Scott Parker, Chief of Engineering Bill Ackman, Comprehensive Planner David Fuller, Management Specialist Tami Watkins and Clerk of Council Judy Ahalt. AGENDA ITEMS A. Invocation by Mayor Umstattd B. Salute to the Flag was led by Council Member Reid C. RolI Call Mayor Umstattd announced Council Members Hammier and Martinez will be arriving late. Martinez arrived at 7:53 p.m. and Hammier at 8:55 p.m. D. Minutes a. Work Session Minutes of November 28, 2006 On a motion by Vice Mayor Horne, seconded by Council Member Wright, the minutes of November 28, 2006 were approved as amended by a 5-0-2 Vote (Hammier and Martinez absent). E. Presentations No presentations F. Petitioners The petitioner's section opened at 7:36 p.m. Frank Holtz, 103 Bridgette Place, addressed Council as Chairman of the Loudoun County Community Justice Board. He commended Leesburg Police Officers Hall and Bolden for their efforts in detaining two individuals at the intersection of Rt. 7 and Cardinal Park Drive. He stated a traffic stop discovered these two individuals in the possession of hand guns. The investigation is on going. Further, he stated Leesburg has good police officers. The petitioner's section c10sed at 7:40 p.m. G. Public Hearings a. Water and Sewer Rate Structure The public hearing opened at 7:44 p.m. John Wells stated the Town Council established tonight's hearing to receive the public's thoughts regarding the water and sewer rates. Town Council Minutes for meeting of March 13. 2007 Page 3 On December, 2005 the Town Council adopted by ordinance a multi- year plan for water and sewer rates. Action on these water and sewer rates was a resuit of a rate study presented to Town Council by the Municipal & Financial Services Group on October 24, 2005. Their study indicated the Town's Utility Fund was operating at a deficit and had been doing so for two years. The water and sewer rates per thousand gallons had at that time not changed for 13 years. Counciloriginally considered an increase in the combined water and sewer rates and no proposed change in the surcharge levels for the in-Town and out-of- Town customers by the following percentage: Fiscal Year ending 2006 - 10%; FY 2007 and FY 2008 9 V2% each year, FY 2009 6% and FY 2010 - 3%. Upon additional consideration and discussion Council examined options to increase the out-of-Town surcharge set at that time at 50%. The Council considered a range of options up to 100%. In final deliberations and actions af ter the public hearing Council adopted a surcharge for out-of- Town customers at 100% on December 13, 2005. This resulted in a typical in-Town and out-of-Town combined water and sewer increase by the follow amounts: in-Town residents for FY 2006 3%, 8% each year in 2007-08, 6% in 2009 and 3% in 2010. For out-of-Town residents the combined bill would increase 36% in FY 2006, similar increases would follow for in-Town residents of 8% for 2007 and 2008, FY 2009 - 6% and FY 2010 - 3%. Mr. Wells stated out-of-Town customers have filed a lawsuit challenging the surcharge levied on their water and sewer bills in October 2006. Since then Council has considered a number of options publicly that would change the level of surcharge on out-of-Town customers. Those options have included reductions in the surcharge to 75% and 50% implemented over a five-to-ten year period. Council also has asked that the rate study be updated to reflect the current economic trends. A surcharge change could resuit for increased rates for in-Town customers. Council has taken no action on rates or made specific recommendations on rates or surcharge levels at this time. Before any public hearing is advertised with specific rates, the Council asked that this forum be advertised to allow the public to be heard on the topic of rate structure and the implications of changes to rates or surcharges for in-Town and out-of- Town customers. Council Member Wright c1arified for purposes of the record the water rates had not changed since 1992. Is that true for both in-and out-of-Town? Mr. Wells stated the surcharge changed for out-of- Town customers in 1998. Town Attorney Barbara Beach stated the surcharge reached 50% with three changes. Council Member Wright verified the out-of- Town area in question has been the Town's planned service area since 1986. Council Member Wright also verified that none of his tax bill to the Town goes to operation of the Utility Fund. Town Council Minutes for meeting of March 13. 2007 Page 4 Council Member Reid asked if there had been a recommendation by the Utilities Department or prior Town Managers between 1992 and 2005 to raise utility rates. Mr. Wells stated a series of increases for users were identified and recommended to Council in the early 1990's and ultimately the Town Council did not enact those even though they were identified for future increases. They were either rescinded or not enacted at that time. Council Member Reid asked the vote on those recommended increases. Council Member Reid stated Council Member Wright has done a lot of research on availability fees which we calculate on anticipated usage. He added in the past he has brought up the issue of reducing those fees as an incentive to attract restaurants, wet labs, etc. and he was told that would increase residential customer rates. He asked if availability fees have been high in order to minimize the rates for homeowners. Town Attorney Beach stated the availability fees go to build the infrastructure and the water rate fees go to the operation of the system. Ms. Beach stated the Utility Fund at the end of the year has to even out. The monies that go in the fund come from several sources, one being the availability fees and the fees for water service. Although they are looked at separately, it is true that at the end of the year it should cover its own costs. Mayor Umstattd stated in 2006 the Town floated a $55.6 million bond for the expansion of our utility plants and that is what we call a double barrel bond. If at any time Utility rates are inadequate to fund the debt service on that bond, the General Fund which is comprised of Town taxpayer money will cover the debt service. Steve Axeman, 221 Rosemeade Place, SW, addressed Council asking to keep the water rates surcharge at 100%. He stated an estimated 79% of the utility debt load can be attributed to the out-of- Town residents. That would mean the $55 million dollars that we have in debt service is borne by the Leesburg users. Therefore 22% is not too much to ask for from Town residents. The availability fees were not paid in fair share by the out-of- Town users. He reminded Council they represent the residents of Leesburg. It is important to be fair to the out-of- Town citizens, and I think you have done that. The Town has do ne their research and the surcharge is fair. He stated 17 years ago when he lived in Fayette County, Georgia he paid $150 a month for water and sewer. He stated the surcharge is still cheap by a lot of standards. He stated the County should not give the Town a 90-day limit to make a decision on the water rates before they move forward on Crosstrail. Town Council Minutes for meeting of March 13. 2007 Page 5 In closing he asked Council keep the same rates and thanked the Mayor for keeping senior rates down. Brian Shifflett, 18578 Merion Court, addressed the Council as follows: "The primary reason we are here tonight is to provide input on how to develop rates that keep the Utility Fund financially sound. One of the major elements of the Utility Fund's budget is debt service, as the Utility Fund has approximately $70 million of outstanding debt issued to finance utility system improvements. I have heard comments to the effect that a portion of Leesburg's local tax revenues pay for the Water and Sewer Utility, which is untrue. Perhaps those comments were made because there is some confusion about the monies used for debt service payments on the Utility bonds. From 1992 untillast year, it was Leesburg's practice to issue revenue bonds for utility system improvements. Revenue bonds rely on the stream of revenue produced by the Utility system to repay the debt. The Town has also used general obligation bonds for pre-1992 Utility Fund debt, which are backed by the full faith and credit of the Town. As a matter of practice, the Town pays the debt service on the general obligation bonds pre-1992 Utility Fund debt which is backed by the full faith and credit of the Town. As a matter of practice, the Town pays the debt service on the general obligation bonds allocated to the Utility Fund from revenues of the system. The Town has never defaulted in the payment of either principal or interest on any debt obligation. Nor have I found any example of a municipal water utility in the Commonwealth of Virginia that defaulted on their bonds. It would be prudent to note that when the Town Council considered the proposed utility rate structure in October and November, 2005, the rate base assumed that the Town would continue issuing revenue bonds." Double- barrel bonds are generally obligation public utility bonds and primarily rely of the streak of revenues produced by the utility system to repay the debt, but they also use the full faith and credit of the Town as an additional payment guarantee. The Town's Bond Consultant, Courtney Rogers of Davenport & Co., told Town Council at their meeting on January 24, 2006, that: · "Town General Obligation Ratings in the "AA" range will produce approximately 10-15 basis points interest rate advantage versus Pure Revenue Bonds." · "..the bonds will be primarily backed by the Enterprise Fund; however, the addition of General Fund backing will save the Town $50,000 by using general obligation bonds. Further,... this will not impact the credit rating or debt capacity of the General Fund." One should note that saving $50,000 annually on the pre-determined rate base should cause rates to go down, not go up, unless you are in a deficit situation. As an out-of- Town customer, it is my opinion that about 20% of the $50,000 annual savings applies to debt used to improve the system to serve the out-of- Town customers that is probably a point that we differ, the whole 79% of debt going to out-of- Town customers is debatable. Town Council Minutes for meetina of March 13. 2007 Page 6 We have 2,800 out-of-Town customers and that number is not growing .......(inaudible) the basis for the increase in 2005 from 1998. Basically, the Town had 4,800 utility customers in 1992 and ended up with (inaudibie) in 2005. 2,700 of those were out-of-Town and 6,500 were new customers were in Town, 79% is absolutely wrong. So, $50,000 or $10,000 savings could be a cost differential between the rates you set for in- Town vs. out-of- Town. He added your debt covenants require you to collect revenue to pay for the system operations, the debt service, and reserve fund requirements. He added Council's review should be sure the Utility Fund is financially sound and you need to consider that the revenues of the utility system customers, all of us, pay that service. That obligation should be spread proportionally across all users." Melanie Fondaco, 18896 Goose Club Court, stated the Utility Fund is an enterprise fund and pays for itself. It is completely independent of the General Fund. No tax money goes to water and sewer and the fact that out- of-Town users don't pay tax has nothing to do with setting rates for water and sewer. She stated the utility rates have become a political issue. The Town of Leesburg has an obligation to represent Town taxes payers as it relates to the General Fund. The Town fought for the right to be our provider and they should have fair and reasonable rates as required by Virginia Code for all customers. The Utility Fund is not regulated nor is there an advisory board. Management and rate making decisions should be taken out of the hands of Town Council which would resuit in a much more balanced approach. Town residents have had extremely low rates for a long time and any decision should be business based and not politically motivated. John Caron, 18999 Rock Creek Drive, addressed Council with the following remarks for Town residents as follows: "In 1986 the Town fought for the right to serve the out-of-Town area primarily based upon the argument that the Town could provide the services at a lower cost than the County thus an out of court agreement was reached with the County for the Town to be the sole provider of water and sewer to these customers; during the early 90's developments plans and water permits were agreed to and developers paid for the infrastructure and expanded capacity through availability and pro-rata fees and proffered land for water plant expansion; in 1993 to 1995 the Town rescinded planned water rate increases; in 1998 the Town implemented a 50% surcharge phased in over three years for out-of-Town customers without any justification provided and no increase to in-Town residents. In the fall of 2005 the Town conducted an independent rate study which showed a large operational shortfall and the study suggested 30% increase for all users to be phased in over three years. The Town Council believed the in-Town users could not bear the cost increase and directed the consultant to shift the vast majority of the increase to 20% of the customers, i.e. those out-of- Town. On January 1, 2006 the Town increased the surcharge Town Council Minutes for meeting of March 13. 2007 Paae 7 to 100%, no phasing. The in-Town rates still remained at the 1992 levels. No increases in 14 yrs. That is an effective rate decrease of 47% for an inflation adjusted basis. The actual cost of service for out-of- Town service is equal or lower than for in-Town service. Some of the facilities that provide this service are located in the out- of-Town areas. Other Town's do have a 100% surcharge, many of those are in remote areas; some towns have no surcharge, another town with a surcharge is Vienna, VA. Their surcharge is 11 %, but in all cases Virginia law requires the rates to be fair and reasonable and based on supportabie rate setting practices. He clarified the out-of- Town residents have not demanded elimination of the surcharge, they want our rates to be fair and reasonable as required by code. So our rates are 121% higher than LCSA and in-Town rates 21% higher than LCSA. Three points: (1) the Town did not live up to their promise of 1986 for competitive water rates; (2) serious cost issues have been massed by the surcharge; (3) the major concern, independent of the surcharge, is that water and sewer simply costs too much in Leesburg. Ann Jansen. 105 Balch Springs Circle, asked that Council keep the existing surcharge in place. As a governing body representing the citizens of Leesburg, I appreciate your efforts to act on our behalf and in our best interest. She stated she respectfully request that the Town should remain firm in their decision to enact the 100% surcharge. She stated she realizes the Council has received a great deal of pressure regarding this issue. Af ter reviewing the analysis, I would say that the outcome was a fair and equitable decision. I do respect and value the out-of-Town customer comments. People need to understand the reasoning behind the decision of the 100% surcharge. At minimum, it needs to be communicated in a way that makes sense and given facts supporting the decision. Perhaps the real problem is not the rate of the surcharge, but the public perception that this decision was made in an arbitrary or capricious manner. The remedy is not necessarily backing down; it is really expressing to people how this decision was founded. If people could see that it would demonstrate the decision was supported by the evidence. She added this is not an isolated decision, it has been implemented in numerous jurisdictions throughout Virginia for the very reason that Town's do actually shoulder the burden of fiscal responsibility of their water and sewer utilities. The cost included maintenance and future expansion, increased plant capability and additional standards to meet stringent environmental standards. Timotha Rainey. 502 Balls Bluff Road, asked that Council keep the existing surcharge in place as they are the governing body that represents Leesburg residents and taxpayers. She stated there is already astrong precedent in Virginia to charge a 100% surcharge such as: Appomattox, AltaVista, Covington, Galax, Front Royal, Harrisonburg, Glasgow, Marion, Orange, Petersburg, Purcellville, Rock Mount, South Boston, South Hili, Town Council Minutes for meeting of March 13. 2007 Page 8 Whitesville, and the Stony Creek Sanitary District. Richmond, Warrenton, Winchester and Vienna charge a significant surcharge; and even LCSA charges higher rates for certain parts of the County. She added the out-of- Town customers had the opportunity to become part of the Town by annexation. These residents don't want to assume the responsibility of the $56 million bond and pay Town taxes. Further, Ms. Rainey stated Council will be held accountable to the Town residents whom they are elected to serve. Loudoun County Supervisor Sally Kurtz read the following into the record: "I will begin my request to you all tonight by first reading parts of the address I sent to you (Council) in November of 2005 because fundamentally I think you face the same issues tonight that you faced then. 'I have read your consultant's, Municipal and Financial Services Group, power point presentation to you on October 24, 2005 and their final Report of November 7, 2005. I can certainly support their findings that additional investment to the Utility needs to occur to assure stability and financial health. I agree with Town policies that both water and sewer systems must be self-supporting and that they need to be run as a business. I do represent citizens both inside the Town Iimits and outside the Town Iimits. It is my considered opinion that all are equal shareholders in this utility, equally invested. As customers, as shareholders they are all equally dependant on the utility, its proper functioning and fiscal viability.' In 1986 an agreement between the Town and County allowed the Town to be exclusive provider of water service to this out-of- Town area because the Town could provide service cheaper than the County and shortly thereafter the existing Town surcharge was removed. Up until 1998 all utility rate adjustments by the Town Council supported those policies. In 1998 a Leesburg Town Council set a policy for a new 50% surtax on out-of-Town customers - without justification. I think that initial surcharge violated long held policy understandings between the Town and County. You all have been on the other si de of what I consider as the County violating its long-held planning policies with the Town. I would hope that you would be particularly sensitive to the issue. I've been trying to imagine myself in front of two families, one on the left Iives in the Town limits and one on the right Iives outside the Town Iimits. Both families hold two jobs, both have children to educate, and a mortgage to pay, both sit in the gridlock we all share. Both assume a tax burden to pay for the local services government delivers, but the difference in the tax burden between inside Town and outside Town has nothing to do with Leesburg's utility rates. No money from Leesburg's General Fund supports this utility. Both families pay for a product produced for their consumption. Both are shareholders in the utility business. Town Council Minutes for meetina of March 13. 2007 Page 9 In reality, if this Utility goes belly-up, both my families on the left in Town and my family on the right out-of-Town will pay increased rates to bring back solvency. I'd like to look both these families in the face and explain in cold fact a justification for both rates, those in Town and those out-of- Town. I think this Town Council inherited the 50% surcharge from 1998 and you now have an opportunity to begin a correction reflecting long-held policies and reflecting sound policies for a cost-based enterprise fund. As I said in November of 2005, I know you all to be thoughtful, willing to listen and consider the issues presented to you from the public. Tonight I ask you to establish an equitable and reasoned rate structure reflecting true costs and accountability for all Leesburg's utility consumers." David D'Onofrio. 42821 Forest Glen Dr. addressed Council with a reminder that five communities are impacted by the water and sewer rates, Spring Lakes, River Creek, Potomac Station, West Goose Creek Lansdowne and Lakes at Red Rock. He stated the issue is about the rising cost of water and sewer and how it is going to impact all of us. He stated if the out-of- Town rates stay the same; in-Town rates will still increase 56% over the next nine- years. Fund. Mr. D'Onofrio called for improved management practices for the Utility Further, he stated out-of- Town Leesburg customers pay more than any other in the metro area. He added the issue is about the rising cost of expenditures and the users should share equally as customers. Ann Jones. 207 Prince Street, addressed Council asking for the continuation of the 100% surcharge. She stated the in-Town residents are the ones responsible for the bonds. She also expressed her concern with the pressure the Loudoun County Board of Supervisors in putting on the Town. Stu Curley, addressed Council saying the Town fought to service their area which consists of five communities and 2,800 customers. He stated the County and Town entered into an agreement to provide service to their communities and water permits were issued with no surcharge in place. Further, the infrastructure was paid for by $36 million in availability fee, the developer paid the pro rata fees and the agreement with the County has not been honored. Further, a 100% surcharge is not normal in the metro area. Some rural areas have a high surcharge, but they are based on higher costs. He stated if the surcharge was reduced by 50% it would only be about a 5-7% increase for in-Town customers. In closing, he stated the Utility Fund needs to be scrutinized. GiGi Robinson. 207 Prince Street, addressed Council stating water users should be treated equally, it should not be phased in and made effective by the end of this quarter. She stated it is the right thing to do. She stated Town Council Minutes for meeting of March 13. 2007 Page 10 that in the past Council may have acted irresponsibility as politicians. They did not fully forecast the down markets and therefore did not raise the rates in a steady manner. Then in December 2005, Council abruptly raised the rates. That was not a bad thing; the increased rates were needed. Water will become increasing scarce to us as a planet and paying more to make this resource available to us makes sense. Any excess money should be put in a fund to address stricter regulations for water distribution and waste disposable. However, the majority of the increase was imposed on out-of- Town users. This decision was not supported by solid figures or reasoning. The accounting mess seemed to be deliberately confusing and made the issue extra complicated. She stated the out-of- Town residents are not hard strapped, they want to pay their bilis. Further, we all need to face up to the cost of clean water and efficient sewer; and 100% roll back should take place immediately without phasing. David Winaate. Ashtown Downs Homeowners Association, presented a resolution from the Ashton Downers Homeowners Association Board of Directors which opposed the reduction of the out-of- Town water and sewer rates. They expressed their support for the 2005 Town Council decision and the position of the present Mayor. He stated there association consists of 127 homes. Further, they asked Council to stay focused on their responsibilities as elected representatives of our Town and please do not be swayed by the threats coming from the Loudoun County Board of Supervisors or out-of- Town communities. Sandy Kane. 815 Kenneth Place SW, addressed Council echoing the comments of Ann Jansen. Jim Haynes asked why the Town is in the water and sewer business. He stated things are very different than they were in 1968. Further, Council is acting as a board of directors running a high-tech business. This business is not running very weil and the rates have not been raised since 1992. He suggested a multi-jurisdictional sewer authority be considered. Tom Marshall stated he was impressed by caliber of both sides' comments. As a Town resident, he pays full Loudoun County and Town taxes. He stated Ida Lee Park is used by Town and County residents; we have a police department although his County taxes help support the Loudoun County Sheriff's Office. He suggested a fair compromise would be 20%. John Drury stated the surcharge is an important component of the budget and an insurance policy to ensure the system works. He suggested possible solutions such as have the County take over water and sewer or the Town selling water and sewer capacity. Town Council Minutes for meeting of March 13. 2007 Page 11 Nan Moore, 43241 Overview Place, addressed Council stating she lives in the community of Lansdowne in West Goose Creek. She stated her actual one month bill was $800; and she and her husband work hard for that money and do not want to pay the high bills. Enrico Gonzalez. 404 Wingate Place, stated the most of us live in very comfortable homes, but Leesburg has a larger population of people who don't. The 60% proposed increase for those Leesburg residents could be devastating. Steve Axeman, 221 Rosemeade Place, provided additional information on a surcharge imposed in 1962 stating the area which is now Country Club was developed with a 50% surcharge. Mayor Umstattd stated we have received 31 emails and with the exception of one was in support of the continued rate structure. She read an email from Noah and Patricia Kraus who live in at 137 Davis Avenue, SW Leesburg as follows: "We are Leesburg Town residents and property owners. We oppose the increase of "in-Town" water rates. As residents of the Town of Leesburg we pay both Town and County real estate and personal property taxes. The out-of- Town customers pay only County taxes. When the out-of- Town customers first had the opportunity to be part of the Town of Leesburg, they declined because they couldn't see how paying the extra Town taxes would benefit them. However, the Town residents eventually received a benefit, in the form of lower in-Town water rates. There is a simple solution for the out-of- Town customers. Petition to become part of the Town. The Town will be happy to have the extra tax revenue and, as new in-Town customers, they will benefit from the lower in- Town water rates. " Following a response to the email from another Council Member, the Kraus family replied as follows: "I agree there is bad planning, but ultimately everyone needs to pay their fair share. I pay Town and County taxes, the out-of- Town customers pay only County taxes. Members of any organization usually pay less than non-members. As a Town resident I should receive the benefit of a lower water rate. I find it interesting that during this entire controversy nothing has been said of the substantial monetary benefit that many of the out-of- Town customers have received from the Town of Leesburg. As you know it's the Town's practice to reduce the sewerage usage cost for newly built homes using Town water. In other words, the Town subsidizes the establishment of new lawns. The question is where are most of the new developments built; answer where the land is available, outside the Town limits. This costly monetary perk is passed on to all existing customers. This is my understanding on how it works. If a homeowner of a newly built house uses Town Council Minutes for meetina of March 13. 2007 Page 12 150,000 gallons of water a quarter, the owner will only be billed for a maximum of 26,000 gallons of sewage until the winter quarter usage is established. Once the winter quarter usage is established, if the homeowner uses 150,000 gallons of water, the sewer is for a like amount. Based on this example, on figures provided by a Town employee, an in-Town customer would save $448 that quarter and out-of-Town would save $894 that quarter. Solution, remove this costly and unnecessary perk and reduce everyone's bill. Several years ago, my two teenage step-sons came to visit for the summer and after they left I got hit with an exorbinate water and sewer bill because we exceed the winter quarterly usage. I paid the surcharge for every single drop of water, not just the excess over the winter quarter. Solution, surcharge rates should only apply to excess amounts of water over the winter quarter usage. Did I complain, you better believe it? I paid the bill and learned to conserve water. How did I do this, I stopped watering my lawn. Patricia Kraus, 137 Davis Avenue, Leesburg." The Mayor asked that all other email's on this issue be included as part ofthe record. (On file in the C1erk's Office). John Wells stated the budget public hearing will be March 27 and the public hearing on water rates will be set close to the same time, pending direction from Council. Council Member Martinez, seconded by Vice Mayor Horne, made a motion to close the public hearing. Council Member Wright c1arified there will be ongoing discussion on the water rates. The motion to close the public hearing was approved by the following vote: Aye: Burk, Horne, Hammier, Martinez, Reid, and Wright Nay: Mayor Umstattd Vote: 6-1 The public hearing c10sed at 9: 12 p.m. Council took a five (5) minute recess. b. Town Plan Amendment - Airport Service Plan The public hearing opened at 9: 18 p.m. Scott Parker addressed Council regarding this Town Plan Amendment. He stated an ordinance is proposed to amend the Town Plan, creating references to the Leesburg Executive Airport service plan and amending the Land Use Policy Map and Airport Land Use Policy Map. He stated these changes are for consistency with the Town Plan to allow airport uses and for sign-off by the Federal Aviation Administration. Town Council Minutes for meeting of March 13. 2007 Paqe 13 He reported the area of amendment represented within the Land Use Policy Map and the Area Land Use Policy Map relates to an area of approximately 141 acres that varies from approximately 800 to 1200 feet west of the centerline of the southern end of the runway. Since the service plan shows airport uses in this area, the two policy maps have been amended from Regional Office to Community Office/Light Industrial. The reason for this change is to accommodate airport related uses in this area, per the service plan, which are not allowed under the current Regional Office designation. He noted this entire area is outside the Town Iimits, under the jurisdiction of the County of Loudoun. He reported the Planning Commission has recommended approval of TLTA 2006-0001 and the accompanying ordinance. There were no petitioners at this public hearing. Mayor Umstattd stated Steve Axeman is concerned that grading on the Crosstrail property may have an impact on the ILS system at the airport. The public hearing c10sed at 9:29 p.m. On a motion by Council Member Wright, seconded by Council Member Burk, the following motion was proposed: 2007-0-08 ORDINANCE Amending and reordaining the Town Plan of Leesburg, Virginia, 2005, as amended, by amending Section B (Town Plan Elements), (Land Use), (Sector Objectives), (Southeast Sector Objectives), by adding a new objective 4 (A), and by amending the following subsections of Section B (Town Plan Elements); (Land Use), (Airport Area Land Use Policy Map), (Paragraph 2); (Transportation), (Objectives), (Objective 6.a.), and by adopting a new land use policy map in place of Section C (Policy Maps), (Land Use Policy Map) and a new Airport Area Land Use Policy Map in place of Section C (Policy Maps), (Airport Area Land Use Policy Map). The motion was approved by the following vote: Aye: Burk, Horne, Hammier, Martinez, Reid, Wright and Mayor Umstattd Nay: None Vote: 7-0 c. Airport Service Plan Adoption of Leesburg Executive Airport Master Plan (Service Plan) Update The public hearing opened at 9:30 p.m. There were no petitioners. The public hearing c10sed at 9:31 p.m. Town Council Minutes for meeting of March 13. 2007 Paae 14 On a motion by Vice Mayor Horne, seconded by Council Member Martinez, the following motion was proposed: 2006-38 RESOLUTION Adoption of the Leesburg Executive Airport Master Plan (Service Plan) Update) The motion was approved by the following vote: Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor U mstattd Nay: None Vote: 7-0 d. Oaklawn Child Care Center - TLSE-2006-0003 The public hearing opened at 9:33 p.m. Wade Burkholder stated the applicants request to expand the child care center use with in Land Bay MUC5 from 7,500 square feet to 10,000 square feet. He stated the applicant is in compliance with the special use standards for a child care center. Mr. Burkholder stated the plat provides for 54 parking spaces with 10 spaces designated as arrival and departure zone. The perimeter and interior parking lot landscaping meets the Zoning Ordinance and the buffers are approved per the Concept Plan. In addition, the Board of Architectural Review reviewed the special exception plat. He stated the application is not in compliance with the Town Plan regarding pedestrian accessibility with regard to Battlefield Parkway and having a more street oriented building. The F.A.R. approved for the concept plan is .4; the Town Plan proposes .6 and the applicant proposes .11. For these reasons of Town Plan non-conformance, staff recommends denial. The Planning Commission recommended approval with conditions of this application by a 4-2-1 vote. The conditions cited for approval refer to: (1) substantial conformance with the current special exception, (2) approval of the special exception does not express or imply any waiver or modifications, (3) sight triangle landscape clearance, (4) landscape plan may require relocation of some materials within the land bay, (5) sidewalk width increased to six feet in front of the child care center, (6) active outdoor recreation area must be relocated outside the area along Battiefield Parkway anticipated to be used for required landscape screen, (7) site lighting designed in accordance with Design and Construction Standards Manual and the Zoning Ordinance, (8) signage to designate spaces for child pick up and drop off only, (9) one way internal vehicular circulation and (10) installation of a minimum four foot black metal fence treated to withstand oxidation. Council Member Burk asked why the applicant is proposing a F.A.R. of .11 when the Town Plan sa ys F.A.R. of .6. Mr. Burkholder stated the applicant would have to answer that question. Town Council Minutes for meeting of March 13. 2007 Paqe 15 Vice Mayor Horne verified the Zoning Ordinance requires a minimum of four feet fencing in the recreation area. She added that good, safe daycare is a huge concern of parents in Leesburg. Council Member Hammier asked why the increased square footage to 10,000. Mr. Burkholder stated the original 2003 concept plan granted a 7,500 square foot structure and any increase in square feet requires a special exception per the Zoning Ordinance. Colleen Snow, Cooley, Goddard & Cornish, on beha lf of Keane Enterprises for Oaklawn thanked Mr. Burkholder, staff and the Planning Commission for working with them on this Special Exception. She stated the special exception request is needed because they are expanding the size for this use. She added this use is important because it will help support surrounding residents and hopefully the County Government Center. She added the 10 conditions do not related to the expanded size of the facility. Further the .11 F.A.R. is just for the daycare center and will go up when other areas are developed. She stated the minimum four foot fence is a requirement of the Zoning Ordinance and they will comply with the state Iicensing agency. In conclusion, she asked for approval of TLSE-2006-0003 Oaklawn Day Care Center. Council Member Wright stated he recalls from a Planning Commission discussion that land features are a factor in the lower F.A.R. Andy Shuckra stated the site has two access points, one from Battlefield Parkway and the other Miller Drive. One allows for thru traffic from the other use on the south side. The other access had to be put to the north because there was concern by the owner. The Zoning Ordinance requires separating the playground from the parking lot and the overland relief required a water flow path through the parking lot. Council Member Reid verified the buffer material is tree and shrubs. The public hearing c10sed at 9: 55 p.m. On a motion by Vice Mayor Horne, seconded by Council Member Wright, the following motion was proposed: 2006-39 RESOLUTION Approving TLSE-2006-0003, Oaklawn child care center, permitting a $10,000 square foot child care center use in Land Bay MUC 5 at Oaklawn at Stratford The motion was approved by the following vote: Town Council Minutes for meeting of March 13. 2007 Paae 16 Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor Umstattd None 7-0 Nay: Vote: e. Virginia Commerce Bank drive-thru The public hearing opened at 9:57 p.m. Planner Chris Murphy stated the site proposed for the bank is the former Knossos Restaurant site (341 East Market St.). He stated the Zoning Ordinance requires a special exception approval for a bank with a drive-thru facility in the B-2 Zoning District. He added staff is recommending conditional approval of this application. Conditions include: (1) substantial compliance with Special Exception Plat, (2) approval does not express or imply any waiver or modification of requirements set forth in the Subdivision and Land Development Regulations, the Zoning Ordinance, or the Design and Construct Standards Manual (DCSM) except as approved by Council on the Special Exception plat, (3) speaker volume for the drive-thru shall not emit sound levels in excess of maximums established in the Zoning Ordinance, and (4) miscellaneous site conditions. The application has been approved by the Planning Commission and the Board of Architectural Review. Council Member Hammier asked if there is an economic development report on the economic impact to the Town for converting a restaurant use to a bank. Mr. Murphy stated the Economic Development Director did provide a memorandum in support of this application. Mr. Wells stated banks pay a franchise tax which is a measure of the bank's assets. In general, banks are a via bie economic impact for the Town. Council Member Wright c1arified a drive-thru bank use could not be converted to a restaurant drive-thru use with out a special exception. Mr. Murphy c1arified that a drive thru lane shall be a minimum of 10 feet and the pass thru lane a minimum of 12 feet. Also, the applicant is given credit for using the existing building. Council Member Reid asked if there was an effort to keep Knossos or to find them another site. Also, he asked the traffic impact of this use. Mr. Murphy stated there is not a negative impact on traffic. Mark Nelis, attorney for the applicant, stated the property has been properly posted and certified letters sent. He stated Virginia Commerce Bank has 19 branches and have obtained a long-term lease on the property. Additionally, the drive-thru is a very important element for them. Town Council Minutes for meeting of March 13. 2007 Page 17 He stated he supports staff's report and agrees to the conditions. He added the use will comply with the Zoning Ordinance and Town Plan and traffic generated will be less than the prior use. Finally, they have requested three modifications based on existing conditions at the site. Vice Mayor Horne stated Virginia Commerce Bank has proven themselves to be astrong corporate entity. Council Member Martinez stated he has no problems with this application but in future redevelopment we should bring the building closer to the curb with parking in the rear. Council Member Hammier c1arified the bank has sig ned a long term lease without approval of this application. She also stated the need to move buiidings c10ser to the street when redeveloping, but we are not actively doing so. Council Member Wright verified the pedestrian circulation on this site is adequate. He stated a bank is successful if it can capture 1/10 of 1 % of the market. He verified a bank will provide a better appearance than the previous use. Council Member Reid clarified the location of the drive-thru and the walk up ATM is on the same side. Council Member Wright questioned the safety of the walk up ATM. Mr. Murphy stated the police department had no problem with the ATM location. Warren Stanley, River Creek, addressed Council concerning his difficulty in obtaining a restaurant site for casual dining. Mayor Umstattd stated we do not regulate what type of building goes on the site and this building has not had a tenant in quite some time. Vice Mayor Horne suggested Mr. Stanley talk with the Economic Development Department. Council Member Reid stated it is becoming extremely congested on East Market Street and expressed the need to start towing the line and demand the building on the street if the Crescent District is to go forward. Therefore he will vote against this application. Council Member Hammier requested Council delay a vote on this application until an economic development impact statement and more information for the best and highest use for this site is provided. Town Council Minutes for meetina of March 13. 2007 Page 18 The public hearing c10sed at 10:34 p.m. Vice Mayor Horne, seconded by Council Member Burk, made a motion for approval. Council Member Hammier, seconded by Council Member Reid, made a motion to table. The motion to table failed by the following vote: Aye: Hammier and Reid Nay: Burk, Horne, Martinez, Wright and Mayor Umstattd Vote: 2-5 The original motion was made by Vice Mayor Horne, seconded by Council Member Burk, as follows: 2007-40 RESOLUTION Approving Special Exception TLSE-2006-0005, Virginia Commerce Bank, to permit a single lane bank drive-through at 341 East Market Street. The motion was approved by the following vote: Aye: Burk, Horne, Martinez, Wright and Mayor Umstattd Nay: Hammier and Reid Vote: 5-2 f. Amendments to the Subdivision and Land Developments Regulations The public hearing opened at 10:41 p.m. Lee Phillips stated planning, engineering, utilities and legal staff have met to discuss the draft amendments. He stated a number of inconsistencies with the State Law were noted and amendments were drafted to eliminate the i nconsistencies. He noted the major improvements include: (1) elimination of the preliminary site plan, (2) new minor site plan, (3) new site plan waiver, and (4) new bonding thresholds. Further, the development industry has been given a chance to review the proposed draft. Only five people attended and no significant problems were raised. Mr. Phillips stated there are also changes to the Review Fee Schedule related to the changes in the Subdivision and Land Development Regulations Council Member Hammier thanked staff for the hard work and effort. Council Member Wright thanked staff for the change in the Boundary Line Adjustment vacation. The public hearing c10sed at 10:45 p.m. Town Council Minutes for meetina of March 13. 2007 Paae 19 On a motion by Council Member Martinez, seconded by Vice Mayor Horne, the following motion was proposed: 2007-0-09 ORDINANCE To amend and reordain Section 14.51 (Regulations Adopted) of Article IV (Subdivision and Land Development) of Chapter 13 (Planning and Development) of the Code of the Town of Leesburg, Virginia, 1976, as amended, the regulations adopted and incorporated therein and the Subdivision and Land Development Applications Section of the Review and Inspection Free Schedule. The motion was approved by the following vote: Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor Umstattd Nay: None Vote: 7-0 H. Legislation I None ORDINANCES CONSENT AGENDA On a motion by Council Member Martinez, seconded by Vice Mayor Horne, the following consent motion was proposed: 2007-41 RESOLUTION Accepting the public improvement, releasing the performance guarantees, and approving maintenance guarantees for Potomac Crossing Sections 8 and 9. 2007-42 RESOLUTION Authorizing time extensions for completion of public improvements and approving performance guarantees for Potomac Station Sections 1B, 1C, 3C and 6EFG. 2007-43 RESOLUTION Awarding contracts for medical, dental and vision care insurance. REGULAR AGENDA On a motion by Council Member Martinez, seconded by Vice Mayor Horne, the following was proposed: 2007-44 RESOLUTION Establishing a storm drainage Pro-Rata Share District for the Fort Evans Road storm drainage improvements project. The motion was approved by the following vote: Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor Umstattd Town Council Minutes for meeting of March 13. 2007 Page 20 Nay: None Vote: 7-0 On a motion by Vice Mayor Horne, seconded by Council Member Burk, the following motion was proposed: 2007-45 RESOLUTION Making an appointment to the Environmental Advisory Commission - Neely Law The motion was approved by the following vote: Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor Umstattd Nay: None Vote: 7-0 I. Boards and Commissions a. Airport Commission Vice Mayor Horne stated the South Apron expansion is on hold pending FAA review of the ILS constraints with the road network. b. Thomas Balch Library Commission No comment c. Board of Architectural Review Council Member Reid stated the community meeting for the new fire department building on Loudoun St reet has been deferred. d. Cable Television Advisory Commission Council Member Hammier stated the Cable Commission will have a special speaker discussing technology innovations with emergency management that will take place on April 3 at 7:00 p.m. at the Leesburg Police Department. e. Commission on Public Art No comment f. Information Technology Commission No comment g. Economic Development Commission Council Member Martinez stated the Commission had a strategy meeting and will soon be making a presentation to Council. He added they are looking forward to having a joint meeting with Council. h. Environmental Advisory Commission The Mayor reported meeting Paul Ferguson of the Arlington County Board of Supervisors and he would be happy to brief our Commissions on the Green Buiidings in Arlington County. i. Parks and Recreation Commission Council Member Wright stated the Commission is working on the Dog Park Agreement. Town Council Minutes for meetinq of March 13. 2007 Page 21 j. Planning Commission Council Member Wright stated the Commission is not thrilled about the scheduling of a joint public hearing with Council. k. Tree Commission Council Member Reid stated an Urban Forester has been hired. I. Standing Residential Traffic Committee Council Member Reid stated a citizen on Dry Mill Road has brought forward an issue of traffic calming. J. Old Business K. New business a. RESOLUTION Encouraging gubernatorial and General Assembly revision of Transportation Bill HB 3202 On a motion by Council Member Martinez, seconded by Council Member Burk, the following motion was made: RESOLUTION Encouraging gubernatorial and general assembly version of Transportation Bill HB 3202the above motion was tabled by the following vote: Council Member Wright, seconded by Council Member Reid, made a motion to table. The motion to table was approved by the following vote: Aye: Hammier, Horne, Reid and Wright Nay: Burk, Martinez and Mayor Umstattd Vote: 4-3 b. Union Cemetery On a motion by Council Member Burk, seconded by Vice Mayor Horne, the following motion was proposed: 2007-46 RESOLUTION Declaring that public necessity exists and authorizing staff to acquire a permanent easement necessary to construct the North King Street Storm Drainage improvements project through the Union Cemetery Mr. Raymond Kirkpatrick, Cemetery Board member, was present and agreed to the conditions of proposed easement acquisition. The motion was approved by the following vote: Aye: Burk, Hammier, Horne, Martinez, Reid, Wright and Mayor Umstattd Nay: None Vote: 7-0 Town Council Minutes for meeting of March 13. 2007 Page 22 L. Council Comments Council Member Burk stated she participated in the Rehau Scavenger Hunt to benefit non-profit groups. She and Lisa Capraro were part of the winning Crossroads team. She recognized Pastor Robinson for being appointed as an Associate at the Providence Baptist Church. Vice Mayor Horne mentioned the issue of traffic calming on Dry Mill Road in the vicinity of Wage and Anne Streets and asked the Standing Residential Traffic Committee to look at traffic calming. She reminded everyone that April 14 is the Keep Leesburg Beautiful Kickoff and Tammy Watkins will be the point of contact. She shared a letter from Delegate Marshall of Danville, Virginia. He stated Delegate Joe May deserves the credit for facilitating passage of the Town's Charter Bill. He stated our area is very fortunate to have such an astute and respected member of the House of Delegates. Further, he has the citizens at heart. Vice Mayor Horne stated our role as Council Members is to represent the Leesburg taxpayers. We answer to the people who put us there. There is a need to look at annexation with due diligence. Council Member Martinez suggested that when we have a presentation, such as the green building one, it should be sponsored by a board or commission. He reported attending the Black History Month celebration at Mt. Olive Baptist Church. He disclosed a meeting with Christine Station application. regarding the Potomac He reminded all that he is putting together a team for Relay for Life. He asked that Joel Hanna be recognized for receiving his Eagle Scout Award at the next Council meeting. Council Member Martinez stated he attended Mrs. Tate's Cookies ribbon cutting. Council Member Hammier apologized for being late. She stated she has read all of the emails concerning the water rates. The water debate is extremely serious and it can be in our best interest to compromise to maximize the long term interest and providing water and sewer to the Crosstrail Property. Ultimately aligning greater community interest relative to what is best for all of us and she looks forward to a very productive dialog. We need to be very specific and not mix up the surcharge issue with rates. She stated she will continue to do research on her own relative to how we do an audit to our overall costs. Another key point is that Council has not looked at rates on an annual basis. Town Council Minutes for meeting of March 13. 2007 Page 23 She reported a meeting on the April 20 with Walsh, Collucci and Clark regarding Potomac Station. She reported a meeting with Rod Heubbers and Ron Williams to get an update on the Cornwall Campus. Ken Werner joined her at that meeting. She asked if they had a comprehensive master plan for Cornwall and might they have a role to house a downtown hospital location innovation home for worldwide medical automation institute as weil as an incubator. They are very open to this idea to become a biotech research partner. She reported Bob Skunda is coming on March 21 for a meeting with the Economic Development Commission. She disclosed a discussion on March 6 with Mike Banzhaf on Ridgewater and Hobie Mitchell on the March 7 and did attend the Science Cabinet Meeting on March 9 and has set up a meeting with Dr. Robin Felder to meet with Sally Kurtz and Scott York on March 20. Council Member Wright thanked the public for speaking on water rates. He stated it is the Council's duty to protect the Town's interest. He stated there are a lot of questions that need to be answered about the condition of the Utility Fund. He stated the need to have a yearly analysis of the fund. The Utility Fund is an Enterprise Fund and is self-sufficient and the revenues cannot be moved to another fund. Back in the 80's when the Town successfully fought to maintain the out-of- Town service area, but we elected not to annex them. Later, when they were approached about annexation they did not want to be part of the Town as they were not sure it would be tax positive. Thus the Town removed them from the scope of the proposed annexation. If we bring those residents in, the surcharge discussion will happen again. He stated there are several issues that are driving rates, slower growth, continuing litigation, and the continuing threat from the County to reduce our service area (changes go bevond the JLMA). In representing our Town residents there are several issues to keep in mind. Another thing is to keep in mind is the controls and views to better manage the fund. We need to adopt fiscal management policies, annual reviews, and an advisory board to justify fair and reasonable rates. Council Member Reid stated his appreciation for Council Member Wright's work on the water and sewer rate issue. He suggested starting a cursory study into what it would cost to bring the affected area into the Town. He thanked Vice Mayor Horne for reminding Council Members they work for Leesburg residents and taxpayers and the Mayor for notifying citizens to attend this meeting to express their opinion about the water rate issue. He expressed his concern that the Board of Supervisors is holding the Crosstrail Development and the Boundary Line Adjustment over our heads. Town Council Minutes for meeting of March 13. 2007 Page 24 Council Member Reid suggested we move forward with the annual review of water rates and thanked citizens for speaking out tonight. He stated there was a Dulles Greenway toll increase hearing today by the State Corporation Commission. They have accumulated bad debt through poor management and the motorists are going to have to pay to remedy this situation. Finally, his children will be going to the Odyssey of the Mind State Championship on April 21. M. Mayor's Comments Mayor Umstattd disclosed a meeting with Colleen Snow regarding Oaklawn. She encouraged everyone to go visit Mrs. Tate's Tea Room. She stated March 21 will be Suzuki Dealership Ribbon Cutting at 11 :00 a.m. adding a member of the Suzuki family will be present. The Mayor stated our obligation is to protect the citizens of the Town with regard to water rates. She stated her disagreement that an analysis was not do ne before the i ncreases were done for the out-of- Town users. The 2005 decision of Council was fair and prudent. She added this Council is in a different situation than previous ones and the increases are warranted. She reminded everyone the Board of Supervisors opposed the last proposed annexation and hired an attorney to oppose the Town's request. The Mayor stated people value Leesburg's small town charm. Further, two recent projects that had been zoned and planned for commercial have been rezoned by a previous Council into projects totaling nearly 1,000 new homes. The Town got 700 homes with the KSI project but were able to get transportation proffers. She added if we are serious about annexation to broaden our commercial base, we cannot keep rezoning properties. N. Town Manager Comments John Wells stated the budget work session on Thursday of this week will focus on the Capital Improvements program. He highlighted two things Council did tonight that tie into the strategic goals of Council. One was the Subdivision and Land Development Regulations amendments which tie into the impact on the improvement of the development process. Secondly, the proposed meeting between the Council and Economic Development Commission will provide a foundation step for the strategic goals for economic development. o. Adiournment On a motion by Council Member Martinez, seconded by Vice Mayor Horne, the meeting adjourned at 11:33 p.m. on a 7-0 vote. Town Council Minutes for meetina of March 13. 2007 ATTEST: ~tJÙ ~ lerk of counCif(J" - - . 2007 _tcmin0313 Paae 25 C. U stattd, Mayor Town of Leesburg