Supervisors Reject Adding Cigarette Tax; OK Resolution Seeking Additional Maternity Service Provider

Other than routine monthly approvals of departmental accounts, finances, and meeting minutes, there were only three action items other than approval of an adjusted six-item Consent Agenda on the Warren County Board of Supervisors regular meeting agenda of Tuesday, August 20. However, those three action items each had potential significant impact on the path of future county operations. Those items in the order of their appearance on the agenda were:

Senior Services site on the move

Approval of an annual lease with the Shenandoah Area Agency on Aging for facilities related to programs offered to the community’s seniors – approved unanimously on motion by Vicky Cook, second by Richard Jamieson. As the staff summary noted the SAAA will be moving it senior service location into the 15th Street Health and Human Services Complex at the old middle school site:

The county’s Senior Center will be relocating to the 15th Street Health & Human Services complex seen here looking north at Massanutten Ave.’s intersection with 15th St. Royal Examiner Photos Roger Bianchini

“Shenandoah Area Agency on Aging, Inc. (“SAAA”) has leased the County-owned building located at 1217 Commonwealth Avenue, also known as the Senior Center, since approximately May 2001. When the last lease was executed, it was anticipated that the SAAA would move to the (15th Street) Health and Human Services Complex once improvements were complete.

“While the Services Complex is owned by the Warren County School Board …, the County currently leases the Services Complex through a lease agreement dated October 18, 2011 that granted permission to the County to lease a portion of the Services Complex to the SAAA.

“Now that the improvements are complete, the SAAA would like to lease a portion of the Services Complex beginning the date of the final signatures and continuing (if not otherwise terminated or extended) for a term of one year. This Agreement will automatically renew from year to year unless cancelled upon thirty days notice …”

No rolled tobacco tax revenue added

Next was consideration of approval of an Ordinance amendment to add to County Codes the imposition in January of a rolled tobacco products “Cigarette Tax” forecast to produce from a minimum of $200,000, up to the potential of $600,000 in revenue that would ease the tax burden on citizens paying Property and Real Estate Taxes to fund county operations. The proposed tax on the sale of cigarettes within the County was at a rate of 2-cents per cigarette or cigar in each pack sold.

After extensive discussion on the nature of the tax as taking advantage of a personal addiction among less-than-affluent people, by 3-2 votes the board rejected a series of three motions, first to table the matter for further information (1:28:30) Cook motion, second John Stanmeyer, with Cheryl Cullers, “Jay” Butler, Richard Jamieson dissenting; then to deny approval (1:32:18) Jamieson motion, Stanmeyer second, with Cook, Cullers, Butler dissenting; and finally to approve the enabling code amendment (1:33:00) Butler motion, second Cullers, with Stanmeyer, Jamieson, Cook dissenting.

The staff presentation by Finance Director Alisa Scott on the proposed ordinance change and the need for additional tax revenue begins at the 1:07:40 linked video mark; board and staff discussion launches at the 1:11:40 mark; the motions and votes begin at the 1:28:14 mark with County Attorney Jason Ham’s call for a second to Supervisor Cook’s earlier motion to table.

Finance Director Alisa Scott presented a PowerPoint on coming revenue needs and the potential of revenue from a proposed cigarette/rolled tobacco tax. Below are two graphics illustrating additional revenue needs ($1.15 million) and estimated revenue provided by a cigarette tax ($524,525) in the coming fiscal year. A board majority rejected the proposed tax as financially oppressive (est. $12 per month at a pack a day) on an economically vulnerable portion of the community, low-income, addicted chain-smokers.

Following that lengthy discussion the board approved the Consent Agenda as amended, with one item removed for board discussion.

About a Maternity Ward here

At the meeting’s outset that item, originally number 7 on the Consent Agenda, was moved to the meeting’s final item “N” Additional New Business, at the suggestion of Chairman Cullers. It related to another added agenda item, a presentation by Valley Health officials in defense of their Warren Memorial Hospital services and past and present role in the EMS Drug Box Exchange Program. The board approved that addition on the suggestion of Vice-Chairman “Jay” Butler. See related Royal Examiner story on that Valley Health presentation at LINK “Valley Health Responds to Negative Portrayal Related to Services and EMS Drug Box Program Cost Realignment”.

Valley Health personnel present, two of whom spoke to their rebuttal of criticism directed their way at the supervisors August 13 work session, remained to listen to the Maternity Services discussion near the meeting’s end. Part of the criticism at last week’s work session revolved around Valley Health’s decision not to include a Maternity Ward in the new Warren Memorial Hospital. There is extensive reference to that decision in the above, linked story.

But with some consitituents still unhappy about that decision, along with their elected representatives, it appears this “Additional New Business” item was added late to the August 20 meeting agenda. It seeks to encourage “health care providers to establish additional women’s healthcare and maternity services in Warren County.”

Three of the Valley Health contingent are seated to the left in rows one and two, as they listen to Jennifer Coello’s opening remarks in defense of their Warren County operations, particularly in women’s health services. Below, Feb. 2018 file photo of protest at old WMH of announcement there would be no maternity ward in the new hospital to serve what was estimated by Supervisor Vice-Chairman Butler at just 300 hospital births per year in Warren County.

And while that initiative could include Valley Health revisiting the issue, it appeared focused on the potential of courting other regional health care providers bringing birthing-service proposals forward if Valley Health continues to not see a viable way to add them to Warren Memorial Hospital’s services.

In indicating support of the Resolution, several supervisors observed in turn that they felt it did not “denigrate Valley Health” as Jamieson put it, but rather “actualizes the effort to add maternity services here for whoever can make it work” and that the County was simply inviting a medical service provider with the operational capacity to make it work here to step forward. Butler noted that with out-of-hospital birthing options often chosen locally, there were probably only about 300 hospital births here per year.

And on a motion by Cook, second by Jamieson, the board unanimously approved the Resolution as the Valley Health contingent looked on. LINK to full Resolution

Prior to its action agenda, the supervisors were first introduced to new members of Warren County Fire & Rescue by Chief James Bonazano and administrative staff; then to new Children’s Services Act (CSA) Director Gemel Clark by Department of Social Services Director Jon Martz.

Introductions of new County staff, first, new Fire & Rescue personnel, then below new Dept. of Social Services Children’s Services Act (CSA) Director Gemel Clark, presented by DSS Director Jon Martz.

County/EDA relationship adjustment

One item of note in the Consent Agenda was number 6, a Resolution removing the County’s self-imposed role as Fiscal Agent for the EDA. As explained in the agenda staff summary:

“Warren County, Virginia entered into a Memorandum of Understanding for Fiscal Agency Services on July 11, 2019, with the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (the “EDA”) that provided that the County would be the EDA’s fiscal agent. The MOU expired, and fiscal agency services were then provided pursuant to an Agreement for Fiscal Agency Services and the agreement provides that it may be terminated upon thirty days’ notice. After consultation with the EDA Chairman, the County has decided to terminate the Agreement. The Agreement is terminated effective upon thirty days’ notice to the EDA. The County Administrator shall give notice of such termination to the EDA forthwith.”

Two hour Closed/Executive Session

The board and staff came out of a nearly two-hour closed session at 6:55 p.m. following discussion of a variety of topics, including potential litigation with the Town of Front Royal over EDA issues.

Prior to its regular open meeting, the supervisors and staff entered an Executive/Closed Session at 5 p.m. that adjourned about five minutes prior to the start of the 7 p.m. open meeting. The motion into Closed Session read:

“I move the Board enter into a closed meeting under the provisions of Sections 2.2-3711(A)(7) and (A)(8) for consultation with legal counsel pertaining to actual or probable litigation and the provision of legal advice regarding the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (the “EDA”), the Town of Front Royal, the EDA vs. Jennifer McDonald, et al., the Town of Front Royal vs. the EDA, et al., the EDA vs.the Town of Front Royal, other potential claims and litigation relating to other possible liabilities of the EDA, the recovery of EDA funds and assets, the outstanding indebtedness of the EDA, bank actions and potential actions related to the same, the Forbearance and Support Agreements, and matters related to the Purchase Option Agreement with APV Cardinal Energy, LLC, and legal matters regarding the Agreement with Page County for landfill services.

“I further move that the Board enter into a closed meeting under Section 2.2-3711(A)(8) for consultation with legal counsel and the provision of legal advice regarding legal matters related to the providing of library services (emphasis added), payments in lieu of taxes, the disposal of waste materials by a County contractor engaged in the construction of the Indian Hollow Road boat landing, and approvals of the use of County property, including the Courthouse, for public displays.

“Finally, I move that the Board enter into a closed meeting under Section 2.2-3711(A)(1) to discuss the performance and employment of the County Administrator.” It might be noted on this last matter, that County Administrator Daley has asked for a heads up on the Board’s intention toward his re-hiring prior to his contract coming up for renewal in February 2025.

The balance of the Consent Agenda approved unanimously was as follows:

1. Use of Courthouse Grounds – Knights of Columbus Banner Permission – Steven Young
2. Award Recommendation: Asset Replacement Vehicles for Sheriff’s Department. – COST & FINANCING: Funding for this purchase in the amount of $664,529.34 is budgeted and available in the FY25 budget line item 4-60-31020-7001 Vehicle Replacement.
3. Award Recommendation In-Car Video Cameras for Sheriff’s Department – The Finance and Purchasing Department received a request from the Sheriff’s Department to review cooperative contracts for the purchase of 12 in-car video cameras, equipment and software licensing from Motorola Solutions under VITA Contract # VA-230420-MSI in the amount of $113,074.40 and the installation through Warren County Public School’s Transportation in the amount of $4,680.00 for a combined total of $117,754.40 … Funding for this purchase in the amount of $117,754.40 is budgeted and available in the FY25 budget line item 4-60-31020-7005 Police Equipment.
4. New Road naming request for properties accessed off of Liberty Hall Road. – Cory Griffith, GIS Coordinator, EXPLANATION & SUMMARY: The naming of the 30-foot wide private access easement off of Liberty Hall Road, has been initiated per E-911 guidelines to be named and made a private road, in honor of the family subdivision created on 4/25/2024. The easement runs along the family subdivision. One house is being constructed and there are two more lots located in this subdivision with the potential of building in the future. This would increase the total number of houses that will potentially share this road, to three (3).

The Warren County Code requires three (3) or more dwellings to be numbered where the driveways meet on a final platted by-way within a subdivision. With three (3) or more dwellings on this right-of-way, this lane will require a new name.

The owners within this subdivision have been contacted and are agreeable upon the new road name. The proposed name is “Weathertop Lane”.

COST & FINANCING:

The cost of erecting the road sign pole is $151.35. The road sign pole is required to have (2) crossed road signs identifying each of the intersecting roads (Liberty Hall Rd & Weathertop Lane) for a total cost of $221.65 to be paid for and installed by the County

5. Equitable Sharing Agreement and Certification – Crystal Cline, Sheriff

A routine annual matter as explained in the staff summary: “The Warren County Sheriff’s Office participates in the Department of Justice and the Department of the Treasury Asset Forfeiture Program. Federal law authorizes the Attorney General and the Secretary of the Treasury to share federally forfeited property with participating state and local law enforcement agencies. In order for the Sheriff’s Office to maintain compliance for continued participation in the Program, the Sheriff’s Office is required to sign and submit an Equitable Sharing Agreement and Certification (ESAC) each year. The ESAC must be approved by the head of the law enforcement agency and a designated official of the governing body prior to submission.”

6. Resolution – Fiscal Agency Termination for the Economic Development Authority (as referenced above)

The meeting adjourned at 8:45 p.m.

Click here to watch the Warren County Board of Supervisors Meeting of August 20, 2024.