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HomeMy Public PortalAbout2004_02_09Council Work Session February 9, 2004 Council Chambers, 25 West Market Street, 7:30 p.m. Mayor Umstattd presiding. Councilmembers Present: Frank Buttery, Mervin Jackson, Melinda Kramer, Marry IVlartinez, David Schmidt, Robert Zoldos and Hayor Umstattd. Councilmembers Absent: None Staff Members Present: Town Manager Bob Noe, Town Attorney William Donnelly, Assistant to the Town Manager Nicole Ard, Assistant to the Town Manager Kathy Leidich, Tnterim Finance Director George Shelley, Chief of Police Joe Price, Director of Engineering and Public Works Tom Mason, Director of Economic Development Betsy Fields, Director of Planning, Zoning and Development Susan Swift, ]:nterim Airport Director Cindi Martin, Deputy Utilities Director Aref Etemadi, Management/Budget Officer Hike Freda, Zoning Administrator Brian Boucher, Transportation Engineer Calvin Grow, Budget Analyst Bob Berkey, Planner Nick Colonna, Management Intern Alexandra Shabelski, Administrative Associate :[! Jackie Seipel, and Clerk of Council .]udy Ahalt. AGENDA [TENS Agenda for Council Meeting of February :t0~ 2004. a, FY 2003 Financial Report George Shelley stated the auditors would present their report to Council tomorrow night and briefly outlined the FY 2003 Financial Report. He stated the auditors did not report any major problems; however, they have made several recommendations in areas where current policies need to be improved. Further, he stated the staff responses and work plans will be submitted to Council soon. Councilmember Schmidt verified the FY 2004 mid-year financial report public hearing has been scheduled for February 24. b. Authorizing the refinancing of certain Series ::[996 General Obligation public improvement bonds Hr. Shelley stated this refinancing would result in a $125,000 savings to the town. Councilmember Schmidt asked why staff didn't identify this bond for refinancing earlier given the five-point spread and asked if there are other issues that would qualify for refinancing? Hr. Shelley stated this issue was looked at earlier, but the savings were not significant until now. Further, he stated the last refinancing was in September 2003 and the town does not have any other issues that would qualify for refinancing at this time. Councilmember Buttery verified staff does evaluate the town's bonds quarterly to determine if refinancing is needed. Town Council Work Session Minutes for February 9, 2004 Paqe 2 2. Union Cemetery - Project timing/waiver or reduction of $3,700 fee Councilmember Buttery recused himself from the discussion of this item because of his position on the Union Cemetery Board. William Donnelly stated the Union Cemetery Board will be submitting plans for its proposed storm-water drainage system and has asked that the town waive the $3,700 plan review fee. He stated as it hasn't been the normal practice of Council to waive fees he recommends that Council donate the amount of the fee if the cemetery qualifies as a non-sectarian charitable organization. ~[t was the consensus of Council to have IVlr. Donnelly research the state code to determine if the cemetery qualifies as a charitable organization and then to make a donation to the cemetery in the amount of $3,700. IVlayor Umstattd asked the members of the Union Cemetery Board who were present to consider a request from the residents of Old Waterford Knoll to plant tress for screening along their property line. 3. Ft. Beauregard Commercial presentation As the applicant for this project was not present, Mayor Umstattd provided a brief outline of the project to the concerned citizens in the audience. She stated the proposed location for this commercial center is the corner of Battlefield Parkway and Sycolin Road. Further, she stated it would consist of one or two-story office buildings as well as a restaurant and gas station. Mayor Umstattd stated there is an unusual proffer on this property which may cause the property owners to lose the right to develop commercial locations on this site. Brian Boucher stated he anticipates having a proffer interpretation within a week or so. Sandy Kane, 815 Kenneth Place, addressed Council and expressed concern with the possibility of a gas station at the Ft. Beauregard location given its proximity to the creek. John Drury, 621 Beauregard Drive, addressed Council stating development of this site may increase the flooding of his property near Lawson Road. Further, he expressed concern with potential run off from the proposed gas station into the creek. Councilmember Zoldos expressed concern with the potential increase of traffic on Sycolin Road. 4. Airport :]:ssues - New Terminal Building Councilmember Zoldos stated the Airport Commission met on January 20 to vote on a lease rate for the new terminal building. He stated numerous pilots and tenants are concerned with the proposed lease rate and asked them to address Council regarding their concerns. Tom Toth, Toth Financial, addressed Council stating the tenants have concerns about the increased lease rate for the new terminal as well as the Airport Town Council Work Session Minutes for February 9, 2004 Paqe :3 Commission's action to allow other businesses to lease the area that was originally designated to be a restaurant. Jim Haynes, 602 Lasswell Court, addressed Council stating the Leesburg Executive Airport has created 617 jobs and a $41 million dollar impact on the area. He outlined the contributions the airport has historically made to the community and stated if this new lease rate is put into effect, the businesses will have to cut back on their services or move to another airport. Rich Vaaler, 218 Wirt Street, addressed Council regarding the proposed lease rates for space in the airport terminal. He stated a lease rate of $24.82 is above market value for space at a general aviation airport. Mr. Vaaler expressed concern that this lease rate could hurt the viability of businesses at the Leesburg Executive Airport. Donald Robb, Av/Ed Flight School, addressed Council regarding the impact the proposed lease rates would have on his business at the airport. He stated he would be forced to move to a smaller space and cut back on services in order to afford this additional expense. Dan Moats, 808 Anne Street, addressed Council. Mr. Moats stated a business plan should be developed for the airport to determine other potential sources for funding the terminal expansion. Further, he asked Council to think of the business owners at the airport who will not be able to afford the proposed lease rate and will be forced to relocate their business. Tom Toth, stated he relocated his family and business to Leesburg because of the airport. Mr. Toth recommended the town maximize income by installing an :[LS system, building corporate hangers and investing in land on the west-side of the airport. He stated his four companies need access to the airport in order to serve their customers around the country. Further, he asked Council to direct the Airport Commission to revisit the lease rate. Steve Axeman, Leesburg Airport Commission, stated the financial outlook for the airport is not good at this time and thanked the airport staff for their hard work. He stated the airport could be a powerful economic engine, but not if the town has to continue to subsidize it. Further, he stated the commission voted to turn the restaurant space in the new terminal into office because there is not enough traffic in the terminal to support the restaurant. Mr. Axeman outlined some of the Iow lease rates currently in effect at the airport and stated the Airport Commission cannot recommend a lower lease rate for space in the terminal building and suggested that Council make the final decision on this issue. Sid Lissner, Leesburg Airport Commission, stated the commission has acted responsibly regarding this issue. He stated the airport is in debt and all information indicates $24.82 is a fair lease rate to charge. Stanley Caulkins, Leesburg Airport Commission, stated the town subsidizes other facilities such as the :[da Lee Park Recreation Center as well as the airport. He stated the commission has acted responsibly and deferred any decision to decrease the proposed lease rates to the Council. Town Council Work Session Minutes for February 9, 2004 Page 4 Robert Hepp, Aviation Adventures, stated the lease rate recommended by the Airport Commission would severely cut into his profits. He stated he also operates a business out of IVlanassas airport where he pays $12.50 per square foot, utilities included. Further, he stated if he were to raise his fees to compensate for the increase in lease rates, his students would find another school to attend. Mayor Umstattd stated the Airport Commission has done its duty well; however, this seems to be a decision for the Council to make. She also thanked the business owners for attending the meeting tonight. Councilmember Schmidt stated if the commission feels they have made the best decision and received adequate citizen and business input, Council should make a decision on this issue, if not then it should go back to the Airport Commission for further discussion. He stated it would not be wise for the town to set the lease rates above market value. Further, he asked Mr. Donnelly to address whether this issue is one for Council or the Airport Commission. IVlr. Donnelly stated the Town Code delegates authority to the Airport Commission to set the lease rates at the airport. He stated if Council would like to make this decision, then the ordinance would have to be amended. Steve Axeman, stated there is no need to amend the ordinance as the Airport Commissioners serve at the pleasure of the Council and would ultimately follow their lead on this issue. Councilmember Martinez stated when competitive businesses stand together, then Council needs to take notice and consider the issue. Further, he stated he does not see the economic impact generated by the airport as Mr. Haynes indicated. Councilmember Zoldos thanked all the speakers for attending the meeting. He stated many of the lease rate agreements at the airport were set over 30 years ago, which is why they are so Iow. He suggested the commission take another look at this issue and consider an incremental increase in the rates. Councilmember Buttery asked staff to provide the Council with a copy of the Town Code section regarding the Airport Commission at the next worksession. Councilmember Kramer asked Cindi Martin how the Airport Commission arrived at the proposed lease rate? Ms. Martin stated first the project costs for the expansion were divided by leasable square foot, which amounted to a rate of $52.00 a square foot. Then the staff and commissioners looked to reduce that rate by looking at all the projects at the airport that have a debt service and a revenue center attached. Those were consolidated into one cost center letting the older projects about to fall off of debt service subsidize the front years of the terminal. This reduced the rate, with the administrative costs added in, to $24.82 per square foot total plus triple net to cover operations and maintenance. She stated staff decided on the triple net figure for utilities because there is no history of operations and maintenance costs for this new facility. Councilmember Kramer asked if the proposed lease rates are comparable with other airports in the area? Town Council Work Session Minutes for February 9, 2004 Paqe 5 Ms. Martin stated it is hard to compare lease rates with Leesburg because other terminals may be set up differently and are as much as 20 years older. Further, she stated if the airport kept the same lease rate of $17.48 per square foot for the new terminal, the estimated additional deficit incurred would be $65,540.00 annually. Mayor Umstattd thanked the staff and commission for their hard work and in- depth research into this issue. Councilmember Zoldos asked staff to address the administrative overhead that is charged to the airport. Mike Freda stated the town charges the airport fund $164,000 for services provided by the general government such as budget, human resources, capital projects services, etc. while the town subsides the airport by approximately $300,0O0. Councilmember Zoldos stated the charge to the airport fund seems high. Councilmember Schmidt verified when discussing ways to recapture the debt staff is only considering the funds spent by the town government and not the funds that were subsidized by the Federal and State governments. Further, he verified the town did not fund the entire $4.5 million for the terminal, but rather only $1.9 million through debt service. Steve Axeman stated the Airport Commission and staff plan to put together a business plan for the airport once the master plan update is complete. Mayor Umstattd stated the commission should consider setting the lease rate to recapture some of the debt while not driving the businesses away. Councilmember Zoldos excused himself from the meeting at this point. 5. BP Oil gas station sign at Holtzman property on Catoctin Circle Brian Boucher stated on .~une 13, 2000 the Town Council adopted a resolution to approve a pole sign for the Amoco station based upon the finding that the unusual site conditions prohibited the ability to obtain effective signage as a result of the Catoctin Circle widening. He stated Amoco has since been purchased by BP Oil and the owner is asking to change the face of the existing sign to reflect this. Council expressed their support of this request. 6. Water Filtration Plant engineering services contract amendment No. 3 Aref Etemadi recommended that Council authorize approval of this contract amendment in the amount of $739,100.00 for the Kenneth B. Rollins Water Filtration Plant Upgrade and Expansion. He stated the biggest change in the original project scope for engineering services is the addition of approximately $:t00,000.00 for obtaining a Loudoun County Commission Permit and Special Exception Permit/Plat. Further, he stated staff had hoped this would be just a minor modification to the Loudoun Planning Commission permit and Special Exception granted in 1998 for a previous expansion. However, the county has stated the town will have to submit a Town Council Work Session Minutes for February 9, 2004 Paqe 6 new plat and Special Exception application with archeological studies because some portions of the property have not been previously excavated. Mayor Umstattd asked if the town would have to get a permit from Maryland for the increase in usage of the Potomac River even though the U.S. Supreme Court ruled for Fairfax County stating no one in the State of Virginia should have to obtain a permit from Maryland? Mr. Etemadi stated the town has submitted the permit application to Maryland because the Supreme Court case has not been finalized yet. Councilmember Martinez stated, on another issue, he would like to know the status of the extra lane on Sycolin Road and the installation of traffic signals? Tom Mason stated the right turn lane at Sycolin Road and Tolbert Lane is under design, the design process for the left turn lane at Sycolin Road and Lawson Road is nearly complete and the turn lanes and traffic signal at the intersection of Tolbert Lane and Evergreen Mill Road are currently under design as well. He stated staff hopes to have the improvements implemented by the beginning of the new school year. 7. Northern Virginia Regional Commission Ali-Hazard Mitigation Plan Nick Colonna stated the Northern Virginia Regional Commission has received a $100,000 grant from the Virginia Department of Emergency Management to develop a regional pre-disaster Ali-Hazard Mitigation Plan. He stated the commission is asking that each member jurisdiction sign a letter of intent and designate staff to participate in the development of the plan. Further, he stated he would serve as the town's primary representative with assistance from Nagi Elsewaissi and Bob Berkey. Mr. Colonna stated once the plan is approved by Council, Planning Commission and the Federal Emergency Management Agency, the town will be eligible for pre-disaster and post-disaster hazard mitigation grants. Councilmember Schmidt asked if there are any legal considerations? Mr. Donnelly stated there are no consequences to the town for participating or not participating. Further, he stated there are no financial obligations other than staff ti me. Tt was the consensus of Council to participate in this program. 8. Proposed "No Smoking" bill discussion - Councilmember Zoldos It was noted that this item had been discussed at the previous Council worksession and it was removed from the agenda at the request of Councilmember Zoldos. 9. Edwards Ferry Road outside the town corporate limits Calvin Grow stated Edwards Ferry Road is currently paved to Battlefield Parkway. He stated the Virginia Department of Transportation has a project to pave the remainder of Edwards Ferry Road in their Six-Year Plan; however, it will likely be 2010 or beyond before paving is complete. He stated staff recommends against taking over maintenance of this road after it is paved because of the estimated Town Council Work Session Minutes for February 9, 2004 Page ? $15,000 yearly cost to the taxpayers. He added there is currently paved access to the Water Treatment Plant from River Creek Parkway. Councilmember Schmidt stated this was an idea brought up by Delegate May and worth discussing. He stated Delegate May proposed to get money from the state to fund paving Edwards Ferry Road at its current two-lane width. Mayor Umstattd stated generally VDOT does not contribute to the maintenance of roads that are not built to its standards, and their standards would require widening the road. She stated the county is concerned for the historic sites along the road, which could be damaged if the road is widened by VDOT. Further, she suggested the legislators could work with VDOT to pay maintenance on a pave in place project for this road. Councilmember Schmidt stated this should also be considered as a way to relieve traffic from the Rt. 15 Bypass once the Costco and Target stores are opened. Councilmember Martinez stated once Battlefield Parkway, Costco and Target open the residents in the Northeast will need this access. He stated the town shouldn't have to pay for this; however, it should be looked at as a traffic calming measure. Further, he asked if VDOT would install sidewalks, curb and gutter when the road is paved? Mr. Mason stated the road would be brought up to VDOT standards, which may or may not include those amenities. He stated the road is already in the VDOT secondary road system. When they decide to pave this road it could be that they will do a pave in place for part of the road and add curb and gutter to another part in order to avoid disturbing the historic sites. Councilmember Martinez stated it would be nice if VDOT could install a trail along the road as well, Mr. Mason stated a trail is being considered by Loudoun County. Vice-Mayor .lackson stated there is always flooding on Edwards Ferry Road around Sage Hill. Councilmember Buttery stated based on the information at this time he could not support town maintenance of this road. He suggested staff should work with the County to see if they would be interested in taking on this project. Further, he verified Woodburn Road was done as a pave in place project. Councilmember Schmidt stated Delegate May is recommending that this project be expedited and still have VDOT pave it, 10. Lawson Road at Tuscarora Creek Calvin Grow stated the Town Plan has recommended closure of the Lawson Road crossing of Tuscarora Creek since 1985. He stated the recommendation first surfaced in a VDOT analysis of the town's transportation needs, which recommended that the road be relocated to Battlefield Parkway. Further, he cited many potential problems with any improvements to Lawson Road and recommended that a future capital project be added to the CIP for design and construction of a pedestrian crossing bridge over Tuscarora Creek at Lawson Road. This would be done once Battlefield Parkway is open and Lawson Road is closed. Town Council Work Session Minutes for February 9, 2004 Paqe 8 3ohn Drury, 621 Beauregaurd Drive, asked Council to close Lawson Road and remove the bridge because this has been used as a cut-through with a number of children living on that road. Further, he addressed the issues of flooding in his yard and sediment run-off into the creek because of the bridge. Sandy Kane, Environmental Advisory Commission, stated the commission is concerned with the environmental impact of the continued repair of Lawson Road. Further, she urged Council to wait until Battlefield Parkway is constructed before closing the road because of the negative traffic impact this would cause. 3ohn Drury, stated he does not want closure of this road to be detrimental to other neighborhoods. Mayor Umstattd stated Council would consider this item during the CTP discussions. 11. Visit from City of Sam Cheok Mr. Noe stated in celebration of the one-year anniversary of the sister-city relationship with the City of Sam Cheok, South Korea, they would like to send a delegation of children, age 10-13 to stay in the Town of Leesburg for four nights. Tt was the consensus of Council to host the delegation from Sam Cheok. 12. Loudoun Street Addition update Mr. Noe stated the architectural firm, Bowie Gridley, has provided revised projected cost of construction for the Loudoun Street addition. He provided a timeline of events stating the additional space and architectural changes made as part of the public process have increased the cost to $7.1 million. He stated there will need to be further changes made to the interior to accommodate the three departments who plan to relocate there. Further, this project will not be ready for approval by the current Council. Councilmember Schmidt clarified the financing of this building. He stated the town would be borrowing money from the Utility Fund and repaying the monies from the General Fund. Further, he stated it is his understanding that the debt service would be the portion that is borrowed from the utilities fund and nowhere near the $7.1 million figure. He stated the Council should not keep putting this off because the cost will only increase. IVlr. Noe stated the town would review financing alternatives, He stated in our personal lives most of us choose to buy a house as opposed to renting one and it is no different in government. Councilmember Martinez asked why the Utility Fund is being used for this project? Mr. Noe stated the Utility Department is proposed to move into the building and have the funds available. He stated the General Fund always proposed to pay it's pro rata share, plus interest. Town Council Work Session Minutes for February 9, 2004 Paqe 9 Councilmember Schmidt asked what the lease rate would be for the new facility? Ms. Ard stated the town anticipates charging $19 to $20 per square foot. Mayor Umstattd stated her concern with the large increase in price because of the design changes. :t2a. Memo from Town Manager regarding employee conduct during town elections. Tn Councilmember Zoldos' absence Sandy Kane, Environmental Advisory Commissioner, addressed Council regarding this issue. Ms. Kane stated she received a memo from IVlr. Noe in her town paycheck which stated that town employees may not participate in any campaign for the town elections. She stated there was some confusion as to whether this memo pertains to the commission members as well. IVlr. Noe stated this memo does not apply to the commission members but was sent to the commission members as an informational item so they were aware of the policies regarding staff. Council asked IVlr. Noe to send a letter to the commission members clarifying this situation. :1.3. Preview items for February 23~ 2004 work session a. General contractor prequalification process No discussion b. Fee Waiver Request - Heritage High School Project Graduation Celebration Councilmember Martinez stated he would not be attending the next worksession and asked Council to support this item. c. Water Pollution Control Facility upgrade and expansion, Project 7.5 Services during construction No discussion d. 2004 Pony National Girls Softball Tournament Councilmember Schmidt stated he would like information regarding their request for $20,000 and whether Loudoun County is contributing any money since their fields will be used as well. Councilmember Martinez stated he would like to know what organization would be organizing the sale of concessions. Further, he stated traditionally there is a charge for parking fees for these tournaments and he would like Mr. Dentler to address this. e. Proposed tourist center in Loudoun Street Addition No discussion fw New Airport Terminal - Tenant lease space allocation process & fees No discussion Town Council Work Session Minutes for February 9, 2004 Paqe ]0 The meeting was adjourned at :L0:33 p.m. 2004_tcwsminO209.doc ;e~k of Council