Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  1) Call to order and roll call: Mayor Fosque called the meeting to order at 7:00 PM: and roll was called. Councilmembers Cindy Holdren, Joy Marino, Sarah Nock, Maphis Oswald, Paul Weitzel and Mayor Fosque were present. Town Manager Matt Spuck and Town Clerk Debbie Caton were  also present. A quorum was established.  2) Pledge of Allegiance  Mayor Fosque announced Councilmember Ray Burger resigned effective September 23, 2024, as 3) Approve minutes from August 26, 2024, meeting. Councilmember Oswald moved to approve the meeting minutes. Councilmember Marino seconded the motion. The motion passed witha  he and his family moved out of town.  5-Ovote. 4) Public Hearings a. None scheduled. 5) Public Presentation: 6) Council Action  a. ESCADV- Kayla Gray Ms. Gray was not present.  a. Article XV: Special Use Permit - Town Manager Spuck explained there were no changes  from the previous meeting.  Councilmember Oswald asked the procedure for an impact study oft traffic as she thinks it might be too much to ask of the applicant. The zoning administrator can use his discretion as to when this would be necessary. Councilmember Marino would like Section 38-499 (6) to be deleted. This was Councilmember Holdren would like Section 38-498 (c) to include prompt notification to the applicant along with justification for the decision. After more discussion and several requested revisions, Town Council tabled the vote. b. The ordinance is to initiate amendments to allow zoning for HRSD to operate the collections system. -Town Manager Spuck explained that in order for HRSD to properly operate the collection system of the sewer system, several changes are required to ordinances and zoning. HRSD will dot this int two phases. Phase one is voting on the new  decided at the previous meeting.  1Page    Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  ordinances. This ordinance sets the layout for the resolution. Planning Commission will also review the resolution. Aj joint public hearing will be scheduled for the October 28,  2024, meeting.  7) Public Comments  a. Dana Simson - Ms. Simson announced the upcoming events for Halloween weekend which will be held October 25, 2024 October 26, 2024. There will be several events to include the pumpkin carving at the gazebo and a Halloween parade. Dr. Greg Felthousen - Dr. Felthousen presented a written copy of a proposal for the d. Rosemary Paparo - Ms. Paparo is a participant in Onancock Resident's Group (ORG), but shei is speaking for herself at tonight's meeting. ORG has never advocated to close HOS, but they do not seem to bet financially' viable. For example, they still cannot afford to pay property insurance which is budgeted at almost $10,000 for FY2025. The town pays the premium. Now there isa request for almost $500,000 for windows and a new HVAC system. All these costs are the responsibility of FOS under the lease agreement. Other repairs are needed: such as a new roof which could cost 500,000-51,000,000. In the meantime, FOS has invested thousands of dollars in a new performance pavilion. Ms. Paparo thinks these funds could have been better usedi for overall repairs. A good option (inl her opinion) is for the town to take over the school as a cultural and community center. Thei town can hire a general manager to oversee daily operations. e. Geoff Daking - Mr. Daking stated the problem with the school is the "fuzzy" lease which does not specify who is responsible for capital improvements. The Virginia property maintenance code 103.2: states the owner of the structure shall provide and maintain all buildings structures systems and facilities associated and equipment and compliance with this code unless specifically expressed or implied. Mr. Daking did research on both lawyers that wrote the lease to learn neither had experience in commercial real estate law. Mr. Daking stated the issues with the: school have been delayed and the Town Council must keepi in mind the property was leased to an entity that never had the ability to pay for these repairs. Hei thinks iti is the town's responsibility. The funds generated for the construction of the performance pavilion could not have been used for maintenance because the funds were private donations specifically earmarked for the Kent Sudman - Mr. Sudman would like to see public comments on the agenda for every meeting held by Town Council. Public comments should pertain to the specific items on the agenda with the time being controlled as iti is right now. Mr. Sudman would like to hear Town Council discussion before making public comments. Mr. Sudman first heard about ORG when ai flyer was plaçed in his mailbox without postage which is ai federal  b. Mary Clements see attached. town. - See attached.  building.  2/Page    Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  offense. He requested. al list of members of ORG and other supporting documents such Cherie Tapman Ms. Tapman is inquiring about the cannon that was displayed at the Historic Onancock: School (HOS). This historical artifact was gifted to a resident who has since refurbished it. Ms. Tapman feels the cannon belongs to the town and it should be h. Thelma Gillespie - Ms. Gillespie is at former postmaster, and reiterated Mr. Sudman's earlier comment about leaving mail in others' mailboxes without postage. Thisisa Toni Nelson - Ms. Nelson owns two commercial buildings in Onancock. Ms. Nelson thanked thet town council for the continued good work. She also thanked the residents who spoke during public comments who speak all sides ofa ani issue. She agrees with Mr. Sudman ini that public comments should be after council discussion. She asked for the  as financials for the organization.  returned for display at the school.  federal offense.  FOS loan vote to bei tabled for clarification.  8) Council discussion -FOS Loan  a. Councilmember Weitzel asked ift the price included removal of the oil boiler and ifit will bel buried underground. Ifthe tank is buried, will this later be al liability to the town? Mayor Fosque responded that he does not think the price includes those twoi items. Councilmember Weitzel thinks a comprehensive engineering assessment is a goodi idea. b. Councilmember Nock agrees with Councilmember Weitzel but since the maintenance issues have been delayed and winter is quickly approaching, any freeze issues with pipes could be tough to manage. Councilmember Nock is hopeful for a solution to bridge for whenever the boiler decides to stop working. FOS is trying to proceed with electrical work that would support additional space heaters if needed. Councilmember Nock asked if Town Manager Spuck would be willing to share an email sent to town council regarding the FOS loan. Town Manager Spuck read his email. - see attached. Councilmember Oswald asked Town Manager Spuck to read the lawyer's comments regarding partnering with FOS. Town Manager Spuck read the email - see attached. Councilmember Oswald thinks there is al lot of work left to do on considering the loan for FOS. The lawyer has advised not to partner with FOS. There are other loan options. She thinks several good ideas have been presented. The idea of the town taking overa as d. Councilmember Holdren shares Councilmember Nock's concerns. She has concerns about the length of the loan. She would like to know the best solution for the heating. She supports the town paying for the loan and potentially paying for the entire payment. Councilmember Marino requested an engineer report to help prioritize the repairs. Town Manager Spuck was directed to obtain bids for a structural and mechanical  Parks and Recreation is appealing.  engineer assessment of HOS.  3Page    Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  9) Committee reports  a. Personnel- - Cindy Holdren The personnel committee did not meet in September. Town Manager Spuck's evaluation is being discussed in closed session after tonight's b. Onancock Main Street (OMS) - Cindy Holdren - OMS held two community events in September. OMS hosted an online survey that ends October 15, 2024. OMS is working onan new mural for al building in the Uptown section. The mural will celebrate our Historic Onancock School (HOS)- Sarah Nock- The search is ongoing for the next Executive Director. Interviews are inj progress. The pavilion construction and fundraising are progressing. OBCA hosted a' "Meet the Candidates" forum. There are several events  meeting.  cultural heritage over the years.  scheduled for the upcoming months.  Wine Wednesday, Wednesday, October 2, 2024 Pedal and Pour- - Friday, October 25, 2024  Champagne and Oyster Tasting - Sunday, November17, ,2024  d. Planning Commission - Fletcher Fosque - The planning commission did not meet in September because of the Labor Day! holiday. Currently, there is a vacant seat on the e. Waterfront - Fletcher Fosque - The committee discussed winter projects and other maintenance required to close for1 the off-season. The marina will close for the season f. Economic Development Authority (EDA) - Joy Marino - The EDA did not meet. 10) Mayor's Report - Mayor Fosque plans to attend the VML meeting scheduled for October 14,  planning commission. on October 31, 2024.  2024, in' Virginia Beach, VA. 11) Town Manager's Report-  a. Manager's Report - Town Manager Spuck's full report is provided in thei town council b. Financial Report - Town Manager Spuck's full report is provided in the town council New Grant - Governor' Youngkin announced grant money for Historic Preservation of capital improvements ahead of the Nation's Semiquincentennial in 2026. Town Manager Spuck submitted the preliminary application. All four projects were accepted and will go  packet. packet.  tot the next stage of grant writing.  4IPage    Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  12) Town Councilmember comments  a. Councilmember Holdren echoed Councilmember Marino's comments about Councilmember Burger. Councilmember Holdren addressed negative feedback about the amount of money being spent on landscaping to say the results are not always instant but the hedge by thet town sign looks the best it has looked in several years. b. Councilmember Marino thanked Councilmember Burger for his service to thet town by serving asa council member. He will be missed. She received feedback from the candidates' forum requesting the event be set up with microphones and an avenue to Councilmember Nock reminded the audience that early voting starts September13, 2024- - November 2, 2024. You can vote at the county registrar's office. d. Councilmember Oswald commented the music played at a wedding across the creek was enjoyed until around 11:00 PM. This lets you know how the sound travels across the  watch it remotely.  creek.  e. Councilmember Weitzel thanked everyone for attending the meeting.  13) Closed Session - Councilmember Holdren moved to enter closed session to discuss personnel matters per 2.2-371(A) to discuss the town manager's performance. Councilmember Weitzel seconded the motion. The motion passed with a! 5-Ovote. Closed session started at 8:57 PM. Councilmember Holdren moved to exit closed session of this regular meeting of the Onancock' Town Council and certify by roll call vote that the item discussed in Closed Session align with the purpose stated in the motion made in Open Session. Councilmember Weitzel seconded the motion. Aroll  call vote was taken:  Councilmember Holdren - yes Councilmember Marino - yes Councilmember Nock - yes Councilmember Oswald - yes Councilmember Weitzel - yes Mayor Fosque - yes Open session reconvened at 10:12 PM.  5Page    Town of Onancock Town Council Meeting Monday, September 23, 2024  7:00 PM  14) Adjourn- - Councilmember Marino moved to adjourn the meeting. Councilmember Nock seconded the motion. The motion passed with a! 5-0 vote. The meeting adjourned at 10:15 PM.  Fletcher Fosque, Mayor  Debbie Caton, Town Clerk  6IPage    Town Council Meeting 23 September, 2024  respectfully request these notes be included ini the meeting minutes.  Mary Clements, 8 Joynes Street  Councilman Burger maintains an office in HOS. He would be directly effected by any financial or other decision regarding FOS or HOS. It is appropriate he recuse himself The last pages of Town Council packet include the Town Manager Report. Under New Grant, projects listed include the windows at the school. How much was requested in the grant application and from where would the one-third match for the request come? The lease covering the relationship between the Town of Onancock and FOS has been broken in several area and for quite some time. Even if all funds for all repairs magically appeared, work would NOT be completed for at lease several months, well into the The following are suggestions for consideration for the development of a new lease Hire a Director of Parks and Recreation for the town. Duties would include but not be Complete control of the HOS building and grounds for the assessment of repairs needed, communicating these needs to TC and TM, looking for grants or other funding sources and applying for same with oversight of TM and TC.  from matters effecting FOS or HOS.  heating season.  and to ease the financial burden of town taxpayers:  limited to:  Upkeep of HOS building and grounds. Determining priorities for repair.  Requisition bids for a service company specializing in the repair and maintenance of HOS boiler for an least 3 years and bring those bids to TC and' TM for consideration. Needs assessment for all the other parks and open spaces including but not limited to ball field, Sunset Park, dog park, Northeast park, town highway entrance and Developing a comprehensive budget for HOS and any other parks and rec needs to Since FOS would be relieved from the costs of attempting repairs, increase their rent. Current commercial rent within 5 miles of this meeting room range from $10 per sq/ft to $25 per sq/ft. Since it is obvious FOS would be unable to pay that amount for rent, start with a percentage of reported income for the year before and increase the percentage annually until a more appropriate figure is attained. For example, ifi the reported income -not including grant for special projects- is $50,000 for last year,  overseeing placement of specialty event signs at the entrance. be included in the town budget as line items for council vote.    start with 10% of 50,000= $5000 annually or $417 (rounded) per month. The next year increase itt to 12%, the third year to 14%, the forth year to 16% and sO on until FOS wouid retain the right to continue with their community enrichment programs as desired, with the caveat that any programs that require a permanent alteration of the grounds be evaluated by the DPR and brought to a public meeting for explanation. Itiso confusing what relationship the town has with the Pavilion. At this point, it appears the Pavilion is fully owned by FOS. Forbid the resale or longi term single Use funds from the $2,221,485 cash reserves in the savings account for the first issue requiring repair. This should probably be the roof since any leaks onto new Set water/sewer and electrical use values and include those in the sub-renters monthly payments. Discontinue the 'free' first 43,100 gallon per quarter in water/ Ificost for heating oil is not currently included in the sub-renters payment, include. it  an more equitable rent is achieved.  entity sub-leasing of the building to protect the town property. Require FOS purchase insurance for the Pavilion and it's use.  wiring may result in electrical fires.  sewer benefits: there.  L -  It has been mentioned thati OEDA be responsible for the loan being requested by FOS. This is a poor choice at the present time since OEDA currently has few funds available  and does't have independent legal council.  Thank you.    DR. Gkey Felhousen  Dear Town Council Members,  1.) Have the town council and town manager consult  with the Town' attorney, Mr. Eric Gregory.  2.) Void the current lease between FOS and the Town.  3.) Ask FOS to continue as stewards of the Old School and establish a new lease designating the Town as owner and responsible party for school upgrades.  4.) Use Town reserves for "bandaid repairs" to  preserve the Old School while OPEN MEETINGS are  held to re-purpose the Old School.    5.) Obtain an accurate evaluation and estimates of the costs for a full reworking of the Old School. Determine a realistic plan and put the plan out for open public  bids, to be shared with the citizens.  6.)Isuggest that the Town consider using the Old School as a learning center : The Original Purpose. Use the Old School as a regional center for education in the creative Arts and the Environment, partnering with local artists and environmental organizations such as the Virginia Master Naturalists, the Chesapeake Bay Foundation and the Nature  Conservancy.    6.) Rebrand and market the Town as a regional hub for  the Arts and Environment.    Iwould feel negligent ifldidn't share my interpretation of the consequences of simply walking away from the loan. First, nothing precludes us from taking out the entire loan. It does not create a partnership with the school and provides care for our assets. Financially, the total loan payment is less than 1% of our operating budget. Without adequate heating and windows, a significant portion of our school will become uninhabitable. This could lead to the departure of our local artists, who may find downtown studio space unaffordable. It's important to note that these are not just any spaces but the creative hubs of our community, not high-end galleries, as some may suggest. Once the artists leave and the staff can't get paid, the building will close and fall into disrepair. An investment of 1% of our budget will cover most major problems except the roof. Without the necessary funds, our building, playground, nature trail, and pavilion willinevitably deteriorate. In the long run, we risk having a derelict building at the heart of our town or being forced to sell it. This is a future we can prevent with the right investment now. A developer would be the logical customer for the property. Still, given the proximity to the creek and the requirements of our subdivision ordinance, it would likely be a losing proposition. Selling the building as condos with the amount of work would net the town very little. Tearing the buildings down and making it into an open space is an option that would cost well over $100,000; it would leave the pavilion unfinished and a hole in the soul of the town's history. Caring for the grass and vegetation would also cost thousands each year. The school is our building, and it's our collective responsibility to preserve it. Spending 1% of our operating budget to care for it seems reasonable and prudent. The options for the schools to go away are distasteful. A small group of residents would eagerly discourage helping the school, likely claiming the negative impact on taxpayers (if we add the full loan payment to only real estate rates, it will change from $.242 to $.242216). We could craft a Survey Monkey to determine how your constituents feel, but ultimately, it's our collective responsibility to preserve our school. The school has a useful life that is greater than the term of the loan. It will be sad for many residents if we let the FOS die because the town  didn'ti invest in its own building.    923124,3:15PM : Outlook  Mail- Paul Weitzel Outlook  Q Search  5 9 PW  Home View Help New mail Favorites Inbox P Sent Items 2 Drafts Add favorite Folders Inbox Drafts > Sent Items W Deleted Items Junk Email Archive Notes Conversation History Creater newf folder Ca Search Folders & Got tor new Groups  U Delete 10 2  Archive Report 9 Sweep 6 Move to V 6 Reply $6 Replya all a Forward V Quicks  Sent: Tuesday, September 17, 20243:50:071 PM To: Cindy! Holdren chodeneonnodk.om, Fletcher Fosque foqye@onancckcom, Joyl Marino marmo@onancockcom, Maphis Oswald mowaldeonanoctcom, Ray Burger <buger@onancckcom), Sarahl Nock Snock@onancock. com>; Maphis Oswald mormalb4@werionneb, Paul Weitze! puiwatatonmocdcom Subject: Who paysf for capitale expeditures lasked Erica a couple of questions (bottom). His response ist below. ONANCOCK. Town! Manager 1680  Inbox * Ray Burger RB Re: Wouldy you: suppor. Wed9/18 Surc, that sounds beneficial Ray JM Joy Marino Re: Who pays for capit.. Tue9/17 Thank you. lappreciateit. Geto. Matt Spuck Re: Who pays for capit.. Tue9/17 Iforwarded! Eric's email tok Katie. i JM Joy! Marino Re: Who pays for capit.. Tue9/17 Thisr member isl Get Outlook fori L Cindy" Holdren Re: Who pays for capit... Tue9/17 Ist the EDA aware ofh his recomme...  de  6  10 2  Matt Spuck E:757-7873363 Emwtapxdeommexdcom w: www.onanc a:15North Street, Onancock, 23417  From: Eric Gregory <tric@helywleycom> Sent: Tuesday, September 17, 20243 3:00PM To: Matt Spuck <matt.s spuck@onancockcom, Subject: RE: Capital Matt,  Thel lease (attached) includes provisions applicablet toy your question below, whichg govern! Rehabilitation and Development (Paragraph 4)and Maintenance (Paragraph! 5. Paragraph4on Rehabilitation: and Development arep prettys specific about FOS's role andr responsibilities tor make certaini improvements, fundraise for thep purpose ofi investingfunds intor rehabilitating and developing the facility, andt tot ber responsible! for There is nop provision conçerning" "Capital"., per se. Idon'tsee anyp particular provisions that require thel Townt tob be responsiblei fort ther maintenance oru upkeep or capital improvements oft the facility. lwoutd recommend: against partneringv with FOS ona any loans ort born rowings becausei itc could andl likelyy would get problematici ifFOS were uneble ton make payments or otherwise complywith thet terms oft thea arrangement. lfthe Towny wants top pursue! loans ort borrowings toi improvet thec old school facility, I'ds suggesty youd considers going tol DHCD or using your EDA asa ac conduiti fora a project! like this. Thaty would provide somei insulationt fort thel Town ando doings such thingsis one oft thec core areas ofn responsibility for EDAS.  maintenance.  Eric EricA, Gregory Hefty) Wiley & Gore, PC. 100 West Franklin Street, Suite 300 Richmond, VA2 23220 Office: (804)7 780-3143 Mobile: (804)3 306-2072 E-mail erichetvwiey.com Web: www.heltywiley.com  HIEFTY WILEY & GORE. PC. THISE E-MAIL AND ANY ATACAMEMISHERETOARE  NIBNIAIIAW  mpsouleokalkaasscomnuiMoueAMiNAcOMAMGEATOMENOA2COMAMRITZAPROMOINARIABOMAMwTAKWABSTEMK.- 1/1