Council addresses recycling, Tederick contract and Crooked Run West

It was a spirited, informative and occasionally contentious Front Royal Town Council Work Session Monday evening, November 4, at Town Hall.

The work session opened with a presentation by new recycling contractor Republic Services clarifying some do’s and don’ts of the Town’s new single stream recycling contract – the uptake being that following some basic guidelines it may not be as complicated a transition to the new system as it initially seemed.

Recycling contractor Republic Services clarifies issues on the new single stream contract with the Town.

Prior to adjournment to Closed Session to conduct an exit interview with departing Town Manager Joe Waltz whose final day here is Friday, the work session concluded with Councilman Gene Tewalt revisiting issues he has with the negotiating process on the contract that will install Interim Mayor Matt Tederick as Interim Town Manager succeeding Waltz for as long as six months.

As discussion turned to the inclusion of a tax shelter arrangement allowing Tederick to transfer his contract to an unnamed LLC under his control, Tederick observed, “I can’t be part of this conversation,” handing the meeting chair over to Vice Mayor Bill Sealock.

Councilman Tewalt attempts to get his point across to Councilman Meza.

Tewalt again noted that he had not seen a draft of the contract prior to a vote on its approval. That led Councilman Jacob Meza, who was apparently more directly involved in the contract negotiation, to state that there had been copies on the table prior to the contract’s approval, which came as news to Tewalt.

“Why are we paying an LLC?” Tewalt pressed of the LLC transfer option Tederick previously told Royal Examiner could save him as much as $7,000 in tax payments.

“Why, do you think it’s illegal?” Meza asked.

Tewalt replied that it had an appearance of illegality.

Sealock said that when he inquired about the LLC option the Town Attorney didn’t have an issue with it, so he had voted to approve the contract as presented.

However asked about his involvement in development of the contract, Napier restated what he previously told Royal Examiner – “I do not give tax or business advice” but adding that the LLC/tax arrangement did not substantially change the nature of the contract as it applies to the interim town manager’s duties and responsibilities in overseeing the administration of the Town governmental apparatus.

Mayor Tederick listens to the contract discussion but calls Tewalts comment “out of order.”

Councilman Chris Holloway then observed that during earlier closed session discussion Tewalt had thrown his hat into the ring as a potential candidate for the interim town manager’s job. Tewalt, a past director of the Town Public Works Department, later confirmed that he had offered his services in the interim town manager’s role before realizing the Town Charter prohibition on council members being appointed to Town staff positions for a year after their service on council would prevent it.

Tederick offered that by not having tax deductions or benefits written into his contract he was saving the Town about $4,000 a month on his contract arrangement and called the tax/LLC aspect of the contract a “red herring”.

But when Tewalt observed the whole contract process reminded him of the EDA situation, Tederick reacted by calling the comment “out of order”.

Between that meeting-ending drama and the opening recycling explanation, council also revisited the Crooked Run West central water-sewer request and potential impacts on the Town’s water policy in the Route 522/340 North Commercial Corridor; adoption of a “Spot Blight Abatement Ordinance” mirroring one in place in both Leesburg and Loudoun County that would give the Town authority to finally begin a legally-established method of forcing property owners’ to correct problems with structures cited as a danger to public safety, health and welfare; and pedestrian safety improvements on Kerfoot Avenue in the vicinity of the youth soccer fields and skatepark.

More on these Council discussions in upcoming Royal Examiner stories; however, spoiler alert on the Crooked Run West request for Town central water-sewer – a clear council majority indicated no interest in extending that central utility to facilitate primarily residential development at Crooked Run West. A vote on the request was scheduled for the upcoming council meeting. We’ll see how that clear, stated majority holds up over the next week …

Watch all of those work session discussions and presentations in this exclusive Royal Examiner video: