City Council Business Meeting

City of Charlotte Charlotte-Mecklenburg Government Center 600 East 4th Street Charlotte, NC 28202 Meeting Agenda Monday, July 27, 2015 Council Chambers City Council Business Meeting Mayor Daniel Clodfelter Mayor Pro Tem Michael Barnes Council Member Al Austin Council Member John Autry Council Member Ed Driggs Council Member Claire Fallon Council Member David Howard Council Member Patsy Kinsey Council Member Vi Lyles Council Member LaWana Mayfield Council Member Greg Phipps Council Member Kenny Smith City Council Business Meeting Meeting Agenda July 27, 2015 1. CITY COUNCIL MEETING Monday, July 27, 2015 In addition to the previously advertised public hearing items, Departments have asked that the time sensitive items listed below not be deferred. Item# Title 9 Public Hearing for Floodplain Regulations Ordinance Revisions 13 Approval of the Refunding of Water Sewer Revenue Bonds 14 Approval of Permanent Financing for Water/Sewer Capital Projects 31 Charlotte-Mecklenburg Police Westover Division Change Order 34 Bojangles Coliseum Food Service Upgrades and Ice Plant Repairs 73 Budget and Performance Management 5:00 P.M. DINNER BRIEFING, CONFERENCE CENTER 2. Mayor and Council Consent Item Questions Resource(s): Ann Wall, City Manager’s Office Time: 5 minutes Synopsis: Mayor and Council may ask questions about Consent agenda items. Staff will address questions at the end of the dinner meeting. City of Charlotte Page 2 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 3. Employee Health Clinics Committee Chair: Council member Greg Phipps Staff Resource(s): Cheryl Brown, Human Resources Time: 10 minutes Explanation § Healthcare costs continue to rise, with unmanaged health and chronic conditions as the primary drivers. § On April 28, 2014, the City issued a Request for Proposal (RFP) for employee health clinic services. In response to the RFP, the City received nine proposals from interested service providers. § The project team evaluated the proposals and recommends awarding the contract to OurHealth as the service provider best meeting the City’s needs in terms of qualifications. § The OurHealth model initially implements five medical clinics strategically located throughout the City. The use of the clinic is voluntary and employees are free to retain their Primary Care Physician (PCP) and use the clinic in conjunction with their PCP. § Implementing employee health clinics result in numerous benefits to both the City and employees/retirees/dependents, such as control medical cost increases, redirect care from expensive and inappropriate settings, and improve employee productivity. § On June 29, 2015, the Budget Committee voted unanimously (Phipps, Driggs, Kinsey, Lyles, and Mayfield) to approve the recommendation to the full City Council. Future Action The City Council is requested to consider the Employee Health Clinic, agenda item 68. 4. Interstate-485 South and U.S. 74 Managed Lanes Projects Staff Resource(s): Norm Steinman, Transportation Tim Gibbs, Transportation Time: 45 minutes Explanation § The Charlotte Regional Transportation Planning Organization (CRTPO) has prepared its recommended FY2016-2025 Transportation Improvement Program. The CRTPO Board is scheduled to adopt this Program at their August 19 meeting. § Included in the dozens of transportation projects (highways, transit, and pedestrian/bicycle) programmed for construction between FY2016 and FY2025 are the Interstate-485 South and U.S. 74 (Independence) managed lanes projects. § The presentation will cover hours of operation, access and egress locations, eligibility of user categories, and the schedule for implementation of the managed lanes projects in Charlotte. Future Action This presentation is for information only. City of Charlotte Page 3 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 5. Answers to Mayor and Council Consent Item Questions Staff Resource(s): Ann Wall, City Manager’s Office Time: 10 minutes Synopsis Staff responses to questions from the beginning of the dinner meeting. Introductions Invocation Pledge of Allegiance 6:30 P.M. CITIZENS FORUM 7:00 P.M. AWARDS AND RECOGNITION 6. Women’s Equality Day Proclamation Action: Mayor Clodfelter will read a proclamation recognizing August 26, 2015, as Women’s Equality Day. 7. National Night Out Proclamation Action: Council member Phipps will read a proclamation recognizing August 4, 2015, as National Night Out in Charlotte. 8. Consent agenda items 29 through 100 may be considered in one motion except for those items removed by a Council member. Items are removed by notifying the City Clerk. Consideration of Consent Items shall occur in the following order: A. Consideration of consent Items that have not been pulled, and B. Consider of Consent Items with citizens signed up to speak to the item. PUBLIC HEARING City of Charlotte Page 4 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 9. Public Hearing for Floodplain Regulations Ordinance Revisions Action: A. Conduct a public hearing on a minor revision to the Floodplain Regulations Ordinance, and B. Adopt an Ordinance revision converting preliminary floodplain maps to final, effective September 2, 2015. Staff Resource(s): Daryl Hammock, Engineering & Property Management Explanation § To remain in the National Flood Insurance Program, the Federal Emergency Management Agency requires all jurisdictions affected by the new maps to amend their floodplain ordinances to include new effective dates. § For the purpose of revising the maps, the County was divided into three geographic sections and Ordinance revisions have been occurring in three phases representing the three sections. § On June 25, 2012, the City Council approved amendments to the Floodplain Regulations Ordinance, which permitted preliminary maps to be used for local regulation. § On January 27, 2014, the City Council approved converting Section 1 of the preliminary maps to final. § Staff recommends a minor ordinance revision to change the effective date of floodplain maps to September 2, 2015, at which time the preliminary status of the maps will cease. § Action item B will convert Section 2 preliminary maps to final maps. § The third and final phase to convert preliminary maps for Section 3 to final will be completed in 2016, and Council will be asked to approve the conversion at that time. § The Federal Emergency Management Agency also requires a change to clarify delegation of management of the ordinance, designating the Storm Water Services Manager as the floodplain administrator. Background § Through an Interlocal Agreement, Mecklenburg County administers the City’s floodplain ordinance along with all other floodplain ordinances in Mecklenburg County. This ensures a consistent local program Countywide. § It is standard practice to periodically review and re-evaluate floodplain mapping, depending on the amount of development in watersheds. Storm Water Services last re-evaluated floodplain maps in this area in 2000. § The maps show property susceptible to flooding and are used by staff to regulate development and by the Federal Emergency Management Agency for flood insurance purposes. § Community involvement efforts included seven public meetings and multiple communications to the more than 5,500 directly-affected citizens through direct mailings, as well as a water bill insert, television and printed media communication, and a web page with proposed flood maps and information on how to provide public comment. Fiscal Note Funding: The proposed revisions to the Floodplain Ordinance will not impact the Storm Water Services budget or the general fund. Chapter 9 Strikethrough July 2015 PMRMapPhases City of Charlotte Page 5 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 10. Public Hearing on Voluntary Annexation Action: A. Hold a public hearing for the Marsh Tract II voluntary annexation, and B. Adopt an ordinance with an effective date of July 27, 2015, to extend the corporate limits to include this property and assign it to the adjacent Council District 7. Staff Resource(s): Jonathan Wells, Planning Policy The annexation is consistent with City voluntary annexation policies approved by the City Council on March 24, 2003; more specifically this annexation: - Will not adversely affect the City’s ability to undertake future annexations; - Will not have undue negative impact on City finances or services; and - Will not result in a situation where unincorporated areas will be encompassed by new City limits. Explanation § Public hearings to obtain community input are required prior to City Council taking action on annexation requests. § A petition has been received from the owners of this 12.58-acre property located west of the 3900 block of Tilley Morris Road in south Mecklenburg County. § The property is owned by Marsh Mortgage Company. § The property is vacant and is zoned R-12MF (CD): residential multi-family conditional and NS: neighborhood services. § The property is located within Charlotte’s extraterritorial jurisdiction and shares boundaries with current city limits. § The property adjoins a site planned for a single-family residential development also owned by the petitioner. § Intent of the annexation is to include the entire limit of future Ardrey Kell Road (to be constructed by petitioner) on petitioner’s property into City limits thereby subjecting the road to City design guidelines. § Annexation of this property will allow for more orderly extension of City development review, City services and capital investments in the future. § The effective annexation date for this property is July 27, 2015. § The Annexation Ordinance assigns the annexed area to adjacent City Council district 7. Fiscal Note Funding: Not Applicable Marsh Tract II map Ordinance POLICY 11. City Manager’s Report City of Charlotte Page 6 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 12. Prosperity Hucks Area Plan Action: Approve the Transportation & Planning Committee recommendation to adopt the Prosperity Hucks Area Plan - Concept Plan with proposed revisions, and receive as information the Implementation Guide and related material. Committee Chair: Council member Vi Lyles Staff Resource(s): Kent Main, Planning Explanation § The Prosperity Hucks Area Plan (Plan) encompasses about 6,200 acres. It is bounded generally on the northwest by Eastfield Road and the town of Huntersville; on the northeast by the Cabarrus County line, on the southeast by Beard Road and Mallard Creek Road, on the south by various property lines south of Hucks Road, and to the west by various property lines west of Browne Road. § The Plan establishes a vision and provides policy direction to guide future growth and development consistent with the Centers, Corridors and Wedges Growth Framework. It updates the Prosperity Church Road Villages Plan (1999). § The City Council will be asked to adopt Volume I: Concept Plan. - Volume II: Implementation Guide is a tool for staff to track projects and is not adopted by the City Council. - Volume III: Existing Conditions provides information from the initial area analysis and also is not adopted. Planning Process § The Plan development process began in November 2012. The original draft Plan was completed in December 2013 and was scheduled for public comment at the City Council meeting on February 24, 2014. § Public comment was deferred because of significant community concerns pertaining to: - Extent of multi-family development, - Location and type of retail uses, - Level of detail in design guidance, and - Provision of open space. § As a result, staff undertook an intensive community dialog process during spring and summer 2014 to address the concerns. This included core group meetings, well-attended small group discussions, a group mapping exercise, a drop-in charrette, and a public forum. § The new refined draft Plan addresses community concerns, and provides greater detail in recommendations and design guidance. It was presented at a public meeting in April 2015. Plan Recommendations § The Plan area includes an Activity Center and a substantial Wedge Area. The vision for the Activity Center is of a community serving mixed-use area complementing and enhancing the surrounding neighborhoods with a rich variety of retail, office, entertainment, and residential uses in a well-designed and appropriately scaled form. § The Plan includes detailed recommendations for each of the 15 Policy Areas within the Activity Center. The recommendations cover land use, community design, mobility, and open space. In addition the Policy Areas identify locations appropriate for residential, retail, office and other uses, City of Charlotte Page 7 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 including anchor retail uses, and uses with drive-through facilities and/or gasoline pumps as well as address appropriate residential types and densities, building and parking orientations, relationship to other surrounding uses, street network standards, and incorporation of open space. § The vision for the Wedge is to remain primarily lower-density, single-family neighborhoods, with new development continuing to provide a high-quality of life and protection for tree canopy. Policies identify appropriate locations and design guidance for smaller scale retail uses, limited areas of slightly higher residential density, open space, and institutional uses. Charlotte-Mecklenburg Planning Commission (Planning Committee) § On May 19, 2015, the Planning Committee received public comment. Six area residents spoke all in support of the Plan. Comments included praise for the stronger, more explicit policy language in the Plan, success in mitigating concerns, and transparency of the process with the public’s ideas included in the Plan. § On June 16, 2015, the Planning Committee unanimously recommended approval of the plan with the staff proposed revisions. Transportation & Planning Committee Discussion § The Transportation & Planning Committee reviewed the draft Plan during their regular meetings on May 11 and May 28, 2015. § On July 13, 2015, the Committee voted unanimously, 4-0 (Lyles, Howard, Kinsey, Phipps; Smith was absent) to recommend adoption of the Prosperity Hucks Area Plan with the staff proposed revisions. City Council Discussion § On June 22, 2015, the City Council received public comments from five speakers. All the speakers were in support of the Plan. § Speaker comments included how residents came together, how the plan responded to concerns, the balanced nature of recommendations, and the need for diligence in following the Plan as development proposals come forward. Fiscal Note Funding: Not Applicable Prosperity Hucks Area Plan, Refined Draft Prosperity Hucks Proposed Revisions to Refined Draft BUSINESS City of Charlotte Page 8 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 13. Approval of the Refunding of Water Sewer Revenue Bonds Action: A. Adopt a bond order that makes certain statements of fact concerning the refunding of Water & Sewer Revenue Bonds (Series 2002 B&C, 2005A, 2006A), B. Provide for the issuance of Water & Sewer Revenue Refunding Bonds in an amount not to exceed $350 million and authorize the termination of related contracts, and C. Authorize City staff to take necessary actions to complete the financing, including making application to the Local Government Commission. Staff Resource(s): Scott Greer, Management & Financial Services Barry Gullet, Charlotte Water Explanation § On February 11, 2002, the City Council approved the issuance of $325 million in Water Sewer Revenue Bonds to fund $185 million in new projects and to refund $140 million of outstanding debt. Variable rate revenue bonds were issued and the City entered into contracts with Bank of America to guarantee a fixed interest rate lower than could have been achieved with traditional financing. § In 2005 and 2006 financing for new projects totaling $133.4 million were issued at a fixed-rate. § Current market conditions allow the refunding of all of these existing outstanding revenue bonds and terminating related contracts with a net savings estimate of $9.8 million. § The restructuring will reduce the risks and costs associated with the variable rate issuances from 2002. § The Local Government Commission is expected to review this transaction for approval during its August meeting. Upon approval, the transaction is scheduled to close at the end of August. Fiscal Note Funding: Charlotte Water Debt Service Fund Bond Order-Charlotte Water Sewer 2015 Refunding City of Charlotte Page 9 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 14. Approval of Permanent Financing for Water/Sewer Capital Projects Action: A. Adopt a bond order that makes certain statements of fact concerning long-term Water and Sewer Revenue Bonds, B. Provide for the issuance of Water & Sewer Revenue Bonds in an amount not to exceed $180 million, and C. Authorize City staff to take necessary actions to complete the financing, including making application to the Local Government Commission. Staff Resource(s): Scott Greer, Management & Financial Services Barry Gullet, Charlotte Water Explanation § On May 12, 2014, the City Council approved the issuance of $180 million in short-term water and sewer revenue bonds to fund ongoing project construction for the Charlotte Water Community Investment Plan (CIP), with conversion to permanent debt estimated in Fiscal Year 2016. § The Water and Sewer Financial Plan anticipates future annual rate increases of 3%-5%, which includes the cost of current and future debt service and operating. This action to convert the short-term financing of capital construction costs over the last two fiscal years to permanent financing will not change these anticipated annual rate increases. § The use of bond proceeds were as follows: - Maintaining existing treatment facilities to ensure reliable treatment processes and regulatory compliance; - Rehabilitation and replacement of existing water and sewer infrastructure that has met its useful performance life; and - Specific projects include replacing aging water and sewer lines along Independence Boulevard, replacement of the Steele Creek Wastewater Lift Station, upgrades to the Sugar Creek Wastewater Treatment Plan and the Irwin Creek Wastewater Treatment Plant, and replacing the Upper Taggart Creek sewer line. § The Local Government Commission is expected to review this transaction for approval during its August meeting. Upon approval, the transaction is scheduled to close at the end of August. Next Steps § An additional action will be included on the August 24 Council Business Meeting agenda to request the City Council approve the authorization a new short-term bond program to fund future ongoing construction expenses approved in the Charlotte Water CIP. Fiscal Note Funding: Charlotte Water Debt Service Fund Bond Order-Charlotte Water Sewer 2015 Refunding City of Charlotte Page 10 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 15. Amend Stormwater Ordinance Action: Amend Chapter 18 - Stormwater Ordinance to exempt the City from paying a stormwater fee for public street rights-of-way. Staff Resource(s): Kim Eagle, Management & Financial Services Daryl Hammock, Engineering & Property Management Explanation § On May 11, 2015, a public hearing was held on the Stormwater Ordinance. There were no comments. § The City ordinance exempts certain categories of property from paying a stormwater fee. § Although state roads have been exempt from paying a fee since the program began, the City’s public street rights-of-way were not exempt. § Early in the program, the City’s general fund paid a contribution to the program in lieu of paying a fee specifically based on City street impervious area. § The general fund contribution rose proportionately with the percentage of annual fee increases, but did not rise to reflect increases in impervious area. § In Fiscal Year 2007, the City Council capped future contributions from the City’s general fund to the stormwater enterprise fund at the Fiscal Year 2006 level of approximately $5.7 million. § The City’s general fund often invests in stormwater system improvements through neighborhood and transportation improvement and transit projects. § Most large NC cities do not pay a stormwater fee based on impervious surface for public street rights-of-way. § The surrounding Mecklenburg towns do not pay a stormwater fee. § The amendment would allow an exemption for public rights-of-way within the City, which will result in the ordinance being consistent with the current practice of how it collects stormwater fees. § This ordinance change will not affect the payment amount from the General Fund to Storm Water Services. Background § Under North Carolina law for public enterprises, cities are authorized to set and collect fees to fund storm drainage maintenance and replacement, and to comply with Federal Clean Water Act requirements. § The City and Mecklenburg County together established a combined stormwater utility in January 1993 and began assessing fees to most public and private property. Fiscal Note Funding: Not Applicable Chapter 18 strikethrough July 2015 City of Charlotte Page 11 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 16. Amend the City’s Benefits Plans Action: Amend the City’s group benefits plans to limit benefits to spouses (same-sex or opposite sex) and dependents and to discontinue benefits for same-sex domestic partners, effective January 1, 2016. Staff Resource(s): Cheryl Brown, Human Resources Explanation § As part of the Fiscal Year 2013 budget process, On July 11, 2012, the City Council authorized the City Manager or his designee to design, develop, and implement policies and programs to extend benefit coverage to same-sex domestic partners, effective January 1, 2013. Benefit coverage was not extended to opposite-sex domestic partners as these couples had the option to get married and add their spouse due to marriage. § In light of the recent United States Supreme Court decision in Obergefell v. Hodges relating to state recognition of same-sex marriages under the Equal Protection Clause of the United States Constitution, staff recommends ending the policy offering coverage for same-sex domestic partners at the expiration of the current benefit plan year (December 31, 2015), and offering benefit coverage to legal spouses of all qualifying City employees, whether same-sex or opposite-sex spouses, effective at the beginning of the next benefit plan year (January 1, 2016). With the recent ruling, same-sex couples now have the option of legally-recognized marriage; therefore, this change will treat both same-sex couples and opposite-sex couples the same. § As of July 1, 2015, 19 employees and non-Medicare-eligible retirees have selected benefit coverage under this extension. § An employee’s same-sex domestic partner who chooses not to get married, thus not qualify for spousal coverage will have the opportunity to obtain insurance coverage through the Health Insurance Marketplace. § Employees who subsequently get married after the conclusion of the City’s Open Enrollment period may then add their spouse, same-sex or opposite-sex, to the City’s health plan within 31 days from the date of marriage. § Representatives from the City’s Human Resources Department have spoken with all affected employees and pre-Medicare-eligible retirees to explain the change and options for continued coverage. § With an effective date of January 1, 2016, this recommendation will permit same-sex domestic partner benefits to remain available both to existing and newly qualified employees through the remainder of this benefit plan year. It also provides adequate time for dependents to obtain coverage through other means such as the Health Insurance Marketplace or their own employer. Fiscal Note Funding: Not Applicable City of Charlotte Page 12 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 17. NBA All-Star Game Action: Approve a City Services Agreement describing specific services, event support, licensing, advertising, and permitting commitments with the National Basketball Association for hosting the 2017 All-Star Game in Charlotte. Through an agreement with the Charlotte Regional Visitors Authority, the City’s contribution for City services will be capped at $600,000. Staff Resource(s): Tom Murray, Charlotte Regional Visitors Authority Ron Kimble, City Manager’s Office Cindy White, City Attorney’s Office Explanation § A proposal to host the 2017 National Basketball Association (NBA) All-Star Game was developed by the Charlotte Hornets and Charlotte Sports Foundation, with support from the City of Charlotte and Charlotte Regional Visitors Authority (CRVA). § The Hornets and Sports Foundation delivered the proposal to the NBA in August 2014. § In April 2015, the NBA representatives travelled to Charlotte for a site visit and to hold contract discussions. § The NBA announced Charlotte as the site for the 2017 All-Star Game on June 23, 2015. § Expenses to support the All-Star Game will be offset by revenues and is expected to leverage at least $60 million in direct spending and $100 million in economic impact in Charlotte. Economic and Community Benefits § The All-Star Game, a celebration of athletic excellence in the NBA, is held in February of each year. § Various All-Star events will be held in multiple venues. § The direct economic benefit from the event is expected to be at least $60 million, an amount between that of the CIAA and the Democratic National Convention. § Expected spending by visitors and organizations associated with the 2017 All-Star Game is estimated to generate at least $7.2 million in state and local tax receipts as a result of the event. § The NBA also develops legacy service projects during the All-Star event that generates additional community benefits for the host community. § During the 2015 NBA All-Star event in New York, 754 health and fitness events were held impacting over 1 million children. § Multiple events were held in New York during the All-Star Week that provided positive impacts for sustainability, women in technology, veterans, disabled athletes, Special Olympics, and at-risk children. § It is expected that the NBA will produce a similar volume and quality of community programs in Charlotte in 2017. § Recent host cities include New York in 2015, New Orleans in 2014, Houston in 2013, and Orlando in 2012. Toronto will host in 2016. § New Orleans (the most recent host for which economic information is available) hosted 54,576 visitors to the All-Star Game in 2014. Total direct spending during the New Orleans All-Star event, including visitors and organizations associated with the event, was $60.4 million. § Total economic impact for the City of New Orleans was $106.1 million, including spending by the host organizations and other indirect and induced spending during the event. § Additionally, the All-Star Game will enhance the City’s marketing efforts through 22.3 million television viewers, 1.2 billion social media impressions, and will be seen in as many as 215 countries in nearly 50 languages. This will bring additional national and international exposure to Charlotte. City of Charlotte Page 13 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 Funding Proposal City of Charlotte § The City of Charlotte’s recommended funding commitment to support the NBA All-Star Game includes a $600,000 in-kind contribution primarily in the form of public safety and traffic control costs and a $1.5 million appropriation from Hospitality Tax funds in 2017. § The City and CRVA will also solicit support from the State of North Carolina and Mecklenburg County. Charlotte Regional Visitors Authority § CRVA will invest $1.0 million in Business Development funds and commit $250,000 in event profits to fund the Local Organizing Committee, which is in charge of coordinating the event. § In addition to providing funding support, CRVA will host All-Star events at the Charlotte Convention Center and Bojangles Coliseum and handle destination management responsibilities for the event. Charlotte Hornets § The Charlotte Hornets will commit $150,000 in event profits to help fund the Local Organizing Committee. § The Hornets will collaborate with the Charlotte Sports Foundation to generate $1.5 million in sponsorship and ticket package sales revenue to further fund the Local Organizing Committee. § CRVA and the Hornets will split 50/50 the risk on sponsorship and ticket package sales revenue above/below $1.5 million. § In addition to providing funding support, the Hornets will host All-Star events at Time Warner Cable Arena. § Total revenues identified to support the event are estimated to be $5,856,400, including the following: - City In-Kind Services: $600,000, - Hospitality Taxes: $1,500,000, - CRVA Business Development: $1,000,000, - CRVA Food and Beverage Net Income: $250,000, - Sponsorship Packages: $1,500,000, - Hornets Time Warner Cable Arena Event Net Income: $150,000, and - Support from State, support from Mecklenburg County, and/or sponsorship sales that exceed budget: $856,400. § Total expenses to hold the event in Charlotte are estimated to be $5,856,400, including the following: - Use of Time Warner Cable Arena: $1,606,400*, - Use of Charlotte Convention Center and Bojangles Coliseum: $1,000,000, - Destination Management: $1,150,000, - Host Fee: $750,000, - City Services: $600,000, and - Sales Tax for Complimentary and Sponsor Tickets: $750,000. *This is the cap on expense at the Time Warner Cable Arena. Any expenditure savings below the cap will be shared 50/50 between the Hornets and CRVA. Fiscal Note § Funding for City services will be included in the City Manager’s Fiscal Year 2017 Recommended Budget and will not come from the General Fund Operating Budget. Currently, it is anticipated that the City’s in-kind costs, estimated at $600,000, will be funded from the excess proceeds from the sale of Interstate-277 land parcels. § The City’s contribution for City services will be capped at $600,000, with the CRVA providing funding for any expenses above $600,000. § The City’s Fiscal Year 2017 budget will include allocations of hospitality funding to the CRVA with a contract in place covering the use of such funding. City of Charlotte Page 14 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 NBA All-Star Games_City Svcs Agreement_07-27-15 18. Charlotte International Cabinet Restructuring Action: Approve changes to the charge and structure of appointments to the Charlotte International Cabinet. Staff Resource(s): Bill Cronin, Neighborhood & Business Services Alexis Gordon, Neighborhood & Business Services Explanation § The history of the Charlotte International Cabinet is as follows: - 1992: the Mayor’s International Cabinet (MIC) was created. - 2008: City Council merged MIC and Charlotte Sister Cities Committee to create Charlotte International Cabinet (Cabinet). - 2012: The Lee Institute conducted a study of the mission and structure of the Cabinet and recommended the creation of an Office of International Relations to separate Charlotte Sister Cities as an independent non-profit, and limit the size of the Cabinet to no more than 21 members (previously 30 members). - 2013: City Council accepts the recommendation and creates the Office of International Relations. A hold is placed on Cabinet appointments to cause attrition. - 2014: Began discussions on a possible restructure of appointments due to a category imbalance. - 2015: Immigrant Integration Task Force recommended an evaluation of the charges and composition of the Cabinet. § The Office of International Relations proposes the following reorganization: - Retain the same number of appointments: 14 by the City Council and 7 by the Mayor; - Reassign categorized appoints to be in line with other citizen advisory boards; - The Chair and Vice-Chair will be selected by the Mayor; and - Minor changes to the Cabinet’s charge to reflect a new structure and focus of work. Fiscal Note Funding: Not Applicable 072715_Attachment_CIC Charge and Membership Revisions_Final City of Charlotte Page 15 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 19. Business Investment Grant for Dimensional Investment Fund Advisors, LP Action: Approve the City’s share of a Business Investment Grant to Dimensional Investment Fund Advisors, LP for a total estimated amount of $2,787,453 over seven years (total City/County grant estimated at $7,638,584). Staff Resource(s): Bill Cronin, Neighborhood & Business Services Explanation § Dimensional Fund Advisors, LP (the Company) is a leading global investment firm founded in 1981, and based in Austin, Texas. Their primary business is investment management. § The Company has more than 850 employees across 11 offices in eight countries; serving clients in more than 25 countries. § The Company provides investment solutions for institutions, such as pension funds, retirement plans, insurance companies, governments and agencies, endowments and foundations, and financial advisors. § On July 8, 2015, the Company announced its decision to establish an east coast regional headquarters in Charlotte to support company growth and provide better support to regional clients, and improve the company’s capacity to recruit regional talent. § The Company considered competitive offers in Austin, Texas, and York County, South Carolina. § The project will include the following: - $98 million in capital investment ($88 million for a new regional headquarters facility and $10 million in technology, machinery, and furniture and fixtures) - 316 new jobs over five years (85% locally hired and 15% relocated) with an average annual wage of $154,000 (318% of the regional average wage) - New jobs will be in the areas of financial advising, portfolio management, research, compliance, trading, and corporate operating positions in legal, finance, and executive leadership. Business Investment Grant § The project meets each of the City Council-approved criteria for Regional Headquarters project for a seven-year term. § On June 22, 2015, the City Council indicated its intent to approve a Business Investment Grant to the Company in a closed session. § On July 7, 2015, the Mecklenburg County Board of County Commissioners indicated its intent to approve a Business Investment Grant to the Company in a closed session, and will vote in public session on August 4, 2015. § The state of North Carolina has awarded an $11.9 million Job Development Investment Grant. § The general terms and conditions of this grant include: - A portion of the grant must be repaid if the company moves this investment from Charlotte within seven years of the end of the grant term. - Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office. - All property taxes due from the company must be paid before a grant payment is made. Fiscal Note Funding: Business Investment Grant 072715_Attachment_NBS_Business Investment Grant Analysis_revised City of Charlotte Page 16 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 20. LYNX Blue Line Extension Long-Term Financing Action: A. Adopt a resolution authorizing the negotiation of an amendment to an installment financing contract and submission of an application to the U.S. Department of Transportation for a Transportation Infrastructure Finance and Innovation Act Loan, B. Set a public hearing related to the financing of the LYNX Blue Line Extension project, and C. Authorize the payment of expenses associated with loan closing including but not limited to legal fees, financial advisory fees, and other required costs. Staff Resource(s): Dee Pereira, CATS Scott Greer, Management & Financial Services Explanation § On March 25, 2013, the City Council approved a financing plan for the CATS LYNX Blue Line Extension (BLE) project. The $1.16 billion BLE project is funded through a federal grant (50%), state grant (26%), and local share (24%). § The local share of the project is $281 million, of which up to $180 million will be financed through long-term debt. The remaining $101 million is funded from short-term financing and local funding sources primarily comprised of transit sales tax revenue. § Since 2013, the City has explored financing options including a loan from the U.S. Department of Transportation (USDOT) under the Transportation Infrastructure Finance and Innovation Act (TIFIA). The federal TIFIA program provides credit assistance for qualified projects of regional and national significance. Many large-scale transportation, transit, railroad, intermodal freight, and port access projects are eligible for assistance. § In April 2014, the Transit Funding Working Group made a recommendation to pursue TIFIA credit assistance on the BLE project. § A TIFIA loan is directly funded from the federal government and provides long-term fixed interest rates less than traditional financing in the public markets and provides for greater repayment flexibility. § In November 2014, the City submitted a TIFIA Letter of Interest to the USDOT. § On June 19, 2015, based on review of CATS’ eligibility and creditworthiness for the BLE project, USDOT issued an invitation to the City to submit an application for TIFIA credit assistance, which is the last step in the TIFIA loan process. § The execution and closing of the TIFIA loan is subject to negotiation of an agreement with a target closing date in September 2015. § The expenses associated with the loan application include but are not limited to legal fees, financial advisory fees, and other costs estimated to be between $300,000 and $500,000. Next Steps § City Council will need to approve expenses associated with this loan. § A public hearing is required by state statute to enter into an installment financing contract such as the TIFIA loan. § The public hearing on the long-term financing is August 24, 2015, at 7:00 p.m. § After the public hearing, a City Council action will be required for final approval of the installment financing. Fiscal Note Funding: CATS Community Investment Plan City of Charlotte Page 17 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 Initial Resolution - Charlotte Transit - TIFIA Financing - 2015 21. Nominations to the Citizen’s Review Board Action: Nominate citizens to serve as specified. Incumbents may be reappointed at this meeting. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § Four appointments for three-year terms beginning August 1, 2015, and ending July 31, 2018. - Alan Adler, Jason Baker and Robbie Harrison have completed two full terms of service, therefore, are not eligible for reappointment. - Theresa Halsey is eligible and interested in being considered for reappointment. § One appointment for an unexpired term beginning immediately and ending July 31, 2018. - Richard Thaxton is no longer eligible to serve. CRB Applicants - July 27, 2015 22. Nomination to the Domestic Violence Advisory Board Action: Nominate citizens to serve as specified. Incumbents may be reappointed at this meeting. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § One appointment for a three-year term beginning September 22, 2015, and ending September 21, 2018. - Eddie Sanders is eligible and interested in being considered for reappointment. DVAB Applicants - July 27, 2015 City of Charlotte Page 18 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 23. Nominations to the Historic Landmarks Commission Action: Nominate citizens to serve as specified. Incumbents may be reappointed at this meeting. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § Two appointments for three-year terms ending July 16, 2018. - Joseph Elliott is eligible and interested in being considered for reappointment. - Michael Rogers has completed two full terms of service, therefore, is not eligible for reappointment. HLC Applicants - July 27, 2015 24. Nominations to the Passenger Vehicle for Hire Board Action: Nominate citizens to serve on specified. Incumbents may be reappointed at this meeting. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § Three appointments for three-year terms ending July 1, 2018. - Andrew Thompson (Category 2 - driver or chauffer) has completed two full terms of service and is not eligible for reappointment. - Diatra Fullwood (Category 3 - representative of the Hospitality & Tourism Industry) is eligible and interested in being considered for reappointment. - Carolyn Carr (Category 4 - one user of passenger vehicles for hire) is eligible but no longer interested in being considered for reappointment. PVH Applicants - July 27, 2015 City of Charlotte Page 19 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 25. Nominations to the Transit Services Advisory Committee Action: Nominate citizens to serve as specified. Incumbents may be reappointed at this time. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § One appointment for a Suburban Employer served by Charlotte Transit beginning immediately and ending January 31, 2018. - David Harris has resigned. § One appointment for a van pool representative beginning immediately and ending January 31, 2016 and then continuing for a full three-year term beginning February 1, 2016, and ending January 31, 2019. - William Grimm Jr. has resigned. TSAC Applicants - July 27, 2015 26. Nomination to the Waste Management Advisory Board Action: Nominate citizens to serve as specified. Incumbents may be reappointed at this time. Staff Resource(s): Stephanie Kelly, City Clerk’s Office Explanation § One recommendation by the City Council for appointment by the Board of County Commissioners for an unexpired term beginning immediately and ending November 5, 2015, and then continuing for a full three-year term beginning November 6, 2015, and ending November 5, 2018. - Howard Cohen has failed to meet the City Council attendance policy requirement. WMAB Applicants - July 27, 2015 27. Conclusion of Consent Agenda 28. Mayor and City Council Topics The City Council members may share information and raise topics for discussion. CONSENT City of Charlotte Page 20 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 29. Sexual Assault Cold Cases Grant for a Prosecutor Position Action: A. Authorize the City Manager to accept a two-year grant from the Governor’s Crime Commission in the amount of $121,106.34 to fund a prosecutor position for Sexual Assault cases, and B. Adopt a budget ordinance appropriating $121,106.34 in funds from the North Carolina Governor’s Crime Commission. Staff Resource(s): Darrell Price, Police Melanie Peacock, Police Explanation § The North Carolina Governor's Crime Commission awarded a grant in the amount $121,106.34 to the Charlotte-Mecklenburg Police Department (CMPD) Cold Case unit, including an in-kind match of $40,368.78. The project total is $161,475.12. § Currently the assistant district attorney position, which works with the Cold Case unit, will no longer be funded through the 2011 National Institute of Justice Solving Cold Cases with DNA grant or CMPD’s operating budget. § Prosecution of cold cases is very specialized. For the two years of the grant funding, the retained assistant district attorney (retired) will begin training current assistant district attorneys to take over this specific case load after the grant period has ended, thus requiring no further funding from the CMPD’s operating budget. § The two-year grant period is from July 1, 2015, through June 30, 2017. Fiscal Note Funding: North Carolina Governor’s Crime Commission and Police Operating Budget CMPDOrd072715-Sexual Assault Prosecutor position City of Charlotte Page 21 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 30. Juvenile Diversion Program Grant for New, Temporary Positions Action: A. Authorize the City Manager to accept a grant from the North Carolina Governor’s Crime Commission in the amount of $97,737.75 to fund two, new full-time positions for the Juvenile Diversion Program, and B. Adopt a budget ordinance appropriating $97,737.75 in funds from the North Carolina Governor’s Crime Commission. Staff Resource(s): Vicki Foster, Police Anthony Hall, Police Explanation § The Governor’s Crime Commission awarded a grant in the amount of $97,737.75 for the Juvenile Diversion Program, including an in-kind match of $32,579.25 from Charlotte-Mecklenburg Police Department (CMPD), Charlotte-Mecklenburg Schools, and the Huntersville Police Department. The project total is $130,317. § The grant will fund two, temporary full-time positions: a program assistant and a diversion specialist, which will support youth-related positive engagement activities and efforts in the Charlotte-Mecklenburg community. § The program assistant and diversion specialist positions will be responsible for youth referrals from schools and agencies currently outside the boundary of the City of Charlotte and ineligible for diversion. § Additional staff will allow capacity to extend program participation, by approximately 100 youth, particularly minorities, in an effort to redirect behaviors that may lead to legal repercussions. § In addition, CMPD will contract with outside agencies to provide life skills workshops covering topics, such as substance abuse, goal setting, and decision making for youth referred to the diversion program. § Based upon their assessment, participants will be assigned to attend eight hours of training in a specific two-day workshop, no greater than six hours per day, covering conflict resolution, decision-making, academic excellence, and/or critical thinking. § Parent/guardians will participate in two hours of training designed to assist in understanding and directing their child. § The grant period is from July 1, 2015, through June 30, 2016. § At the end of the grant period, the positions will no longer be funded or may be requested through the City’s annual budget process. Fiscal Note Funding: North Carolina Governor’s Crime Commission and Police Operating Budget CMPDOrd072715-Juvenile Offender Diversion City of Charlotte Page 22 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 31. Charlotte-Mecklenburg Police Westover Division Change Order Action: Approve change order #1 in the amount of $485,000 to Randolph & Son Builders, Inc. for the Charlotte-Mecklenburg Police Department Westover Division Station. Staff Resource(s): William Haas, Engineering & Property Management Lisa Goelz, Police Patrick Mumford, Neighborhood & Business Services Explanation § Construction began in February 2015 and the project is 40% complete. § Change order #1 in the amount of $485,000 will provide funds to cover costs associated with the removal of buried trash and petroleum saturated soil. § Land was previously owned by a construction company and allowances have been included in the contract for anticipated unsuitable soils. § However, site work to date has uncovered large quantities of buried trash including tires, microwaves, utility poles and shovels. § The petroleum-based soil has also been discovered and will require export to a special landfill site approved by the North Carolina Department of Natural Resources. § The excavation, export, and infill of the anticipated remaining material will extend beyond current contract amounts. § Change order #1 will increase the current contract value from $5,744,413.83 to $6,229,413.83. Funds will be transferred from the project contingency available in the project budget. § The project is expected to be completed under budget. § Construction is expected to be complete by first quarter 2016. Background § On January 27, 2014, the City Council approved the land purchases for this project. § Six parcels were combined to create a 5-acre site at 2550 West Boulevard. § The Charlotte-Mecklenburg Police Department Westover Division and the Neighborhood & Business Services Southwest Service Area Team will be located at the new 16,250 square-foot facility. Charlotte Business INClusion The work involved in this change order will be performed by Randolph & Son Builders, Inc. and its existing subcontractors (Part D: Section 6 of the Charlotte Business INClusion Policy). Randolph & Sons Builders is on track to meet their SBE commitment of 19.54% and their MBE commitment of 5.11%. Fiscal Note Funding: General Facilities Community Investment Plan Location Map - CMPD Westover Division Station Project Rendering Unsuitable Soil Site Plan City of Charlotte Page 23 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 32. Interlocal Agreement between the City of Charlotte and the Charlotte Mecklenburg Board of Education Action: A. Adopt a resolution for the Interlocal Agreement between the City of Charlotte and the Charlotte-Mecklenburg Board of Education for construction of the University Pointe Boulevard road extension on portions of the Zebulon Vance High and James Martin Middle School Campus, including the acquisition of all property rights from the school campus necessary to complete the project, and B. Authorize the City Manager to execute any and all documents necessary to comply with the terms of the Agreement. Staff Resource(s): Dan Leaver, Engineering & Property Management Charles Anzalone, Engineering & Property Management Julie Millea, Engineering & Property Management Explanation § The City is designing a road improvement project to extend the existing University Pointe Boulevard to IBM Drive to improve vehicular, pedestrian, and bicycle travel. § As part of the project, the City requires both fee-simple and easements across the properties owned and operated by the Charlotte-Mecklenburg Board of Education known as Zebulon Vance High School and James Martin Middle School. § Plans for the project include: - A new public road, - Private access road, - Bridge over Interstate-85 and roundabout at the intersection of IBM Drive and the new University Pointe Boulevard extension, - Bicycle lanes, - Curb and gutter, - Planting strips - Sidewalks, - A new culvert over Doby Creek, and - Driveway and parking lot improvements. § The appraised fair market value of the school property needed by the City for the project is $388,275, and the Charlotte-Mecklenburg Board of Education has indicated that it will grant the property rights upon payment of this amount in compensation. § A construction contract is expected to be presented to the City Council for award by the end of 2015. Charlotte Business INClusion This is an interlocal agreement contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: General Transportation Community Investment Plan UPB City CMBE Interlocal Agreement.docx Location Map - Interlocal Agreement Between the City of Charlotte and the Charlotte-Mecklenburg Board of Education Site Plan_Interlocal Agree City & CMBE_File #15-778_07-27-15 University Pointe Interlocal Resolution City of Charlotte Page 24 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 33. Bank of America Stadium Phase II Budget Ordinance Action: Adopt a budget ordinance appropriating $23.5 million to complete Phase II financing of Bank of America Stadium Improvements. Staff Resource(s): Ron Kimble, City Manager’s Office Randy Harrington, Management & Financial Services Explanation § On April 22, 2013, the City Council approved business terms with the Carolina Panthers to fund improvements to Bank of America Stadium as part of a 10-year partnership. § In accordance with the business terms, the City will provide $75 million to finance certain improvements to the Bank of America Stadium as part of an overall $112.5 million upgrade to the facility in three phases. § Funding for the City’s investment is provided from existing 1% food and beverage tax and 3% occupancy tax. § On October 28, 2013, the City Council approved $28.0 million in funding for Phase I of the City-funded Stadium Improvements. § On March 23, 2015, the City Council adopted a resolution to proceed with the financing of Phase II of the project for $23.5 million. § Adoption of the Budget Ordinance will enable the funds to be used for Phase II projects. § Phase II improvements include planning, acquisition and construction of security, access, technology, communications, landscape, and infrastructure improvements. § The final $23.5 million appropriation for Phase III of the Stadium Improvement projects to complete the City’s $75 million financing is scheduled for Fiscal Year 2018. Fiscal Note Funding: Convention Center Capital Projects Fund Panther Stadium Phase II $23.5M Budget Ordinance 7-27-15 City of Charlotte Page 25 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 34. Bojangles Coliseum Food Service Upgrades and Ice Plant Repairs Action: A. Authorize the City Manager to negotiate a contract not to exceed $800,000 to the lowest responsive bidder Encompass Building Group, Inc. for the Bojangles Coliseum Phase 1B Concessions Renovation Upfit, B. Award a contract in the amount of $176,045 to the lowest responsive bidder Edward Don & Company for kitchen and food service equipment purchase, and C. Award a contract in the amount of $239,523 to the lowest responsive bidder Carolina Industrial Refrigeration Inc. for the Bojangles Coliseum Ice Plant Repairs & Upgrades. Staff Resource(s): William Haas, Engineering & Property Management Steve Bagwell, Charlotte Regional Visitors Authority Explanation Action A § On December 8, 2014, the City Council approved $15,953,375 in capital repairs and improvements for the Bojangles’ Coliseum over the next two years. § The Phase 1B Concessions Renovation Upfit project includes: - Renovations to food service areas and back of house concession spaces, - Upgrades to food and supply storage, - Installation of owner provided kitchen equipment and, - Health code requirements. § The work is expected to be complete by October 2015 and is integral to the return of the Charlotte Checkers to the Bojangles Coliseum for the 2015-2016 season. The food service renovations are critical for Phase I completion. § This upfit will be the first major upgrade of the food service areas since 1995 when the building was re-opened. § The Engineering & Property Management Department advertised Invitations to Bid for Phase 1B - Interior Renovations on June 1, 2015. § On June 9, 2015, a pre-bid conference and walk-through was held on site to actively solicit participation and discuss with potential bidders the scope of work. § On June 22, 2015, an additional site walk-through opportunity was made available. § By bid closing the City did not receive the minimum number of bids as required by North Carolina General Statute 143-129. § The project was re-advertised on June 30, 2015. § On July 8, 2015, two bids were received from interested general contractors. § Encompass Building Group, Inc. was identified as the lowest responsive bidder. § Cost negotiations are necessary because all bids exceeded the estimate for this scope of work. § North Carolina General Statute allows negotiation with the lowest responsible bidder, making reasonable changes to the plans and specifications as may be necessary to bring the contract price within the funds available. Reject Low-Bid Explanation § The apparent low bidder, Metcon, Inc. failed to meet the CBI goals. § Staff rejected the bid from Metcon, Inc. as non-responsive. Action B § The kitchen and food service equipment purchase includes: - New ovens and grills, - New refrigerators and freezers, City of Charlotte Page 26 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 - New hoods and fire suppression equipment and - Additional hand and mop sinks. § On July 16, 2015, two bids were received from interested vendors. § Edward Don & Company was identified as the lowest responsive bidder. § This equipment will meet current health code requirements. § Redesigned concession layouts will also provide more menu choices for visitors of the coliseum. Action C § The existing ice plant system is 22-years-old and in need of repair. § The Ice Plant Repairs & Upgrades project includes: - Flushing and neutralizing calcium residue from the existing system, - Replacing filters, pumps and compressors, and - Rebuilding the refrigeration system. § On June 23, 2015, a pre-bid conference and walk-through was held on site to actively solicit participation and discuss with potential bidders the scope of work. § By bid closing the City did not receive the minimum number of bids as required by North Carolina General Statute 143-129. § The project was re-advertised on June 30, 2015. § On July 8, 2015, one bid was received from Carolina Industrial Refrigeration. Future Action § The City Council will be asked to approve additional Phase 1 items at the August 24th Council Business Meeting. § Phase 2 scope of work will include upgrades to facility electrical and HVAC systems as well as exterior improvements to sidewalks and storm drainage. § Phase 2 work is scheduled to be completed June thru October 2016. Background § Bojangles Coliseum opened as the Charlotte Coliseum in 1955 and has been operating for 59 years. § It was the first free-span dome in the United States. The Coliseum’s exterior has been designated a historic landmark. § The Coliseum is owned by the City of Charlotte and operated by the Charlotte Regional Visitors Authority (CRVA). § The Coliseum averages 85 annual events that include graduations, consumer shows, civic events, concerts and performances with average annual attendance of 183,232. § The Coliseum and the adjacent Ovens Auditorium hosts the majority of commencement exercises annually for Charlotte-Mecklenburg Schools, as well as many area colleges and private schools. § The move of the Checkers to the Coliseum will benefit all parties: - It frees up coveted dates in the Time Warner Arena, a move that is supported by the Charlotte Hornets, - It improves and solidifies the business model for the Coliseum, - The Checkers can go back home to where they started in Charlotte, and - It creates economic vitality in the Independence Boulevard corridor. § The agreement between CRVA and the Checkers includes: - The team will begin to play in the Coliseum in October 2015, - The Checkers will pay market rent, - The team and CRVA will share concessions and advertising revenue, - CRVA will keep all parking revenue, and - Clawback provisions are in place if the Checkers leave in the early years of the agreement. Charlotte Business INClusion Action A Established SBE Goal: 14% City of Charlotte Page 27 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 Committed SBE Goal: 15.63% Encompass Building Group, Inc. exceeded the established SBE subcontracting goal, and has committed 15.63% (up to $125,040) of the total contract amount to the following certified firm (Part B: Section 3 of the Charlotte Business INClusion Policy): • All-Pro Builders & Restorations, LLC (SBE, MBE) (up to $125,040) (construction services) Established MBE Goal: 5% Committed MBE Goal: 15.63% Encompass Building Group, Inc. exceeded the established MBE subcontracting goal, and has committed 15.63% (up to $125,040) of the total contract amount to the following certified firm (Part B: Section 3 of the Charlotte Business INClusion Policy): • All-Pro Builders & Restorations, LLC (SBE, MBE) (up to $125,040) (construction services) Action B No subcontracting goals were established because there were no opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). Actions C No subcontracting goals were established because there were no opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Convention Center Capital Project Fund Budget Line Item Comparison_RCA Attachment 6 (rev 2) City of Charlotte Page 28 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 35. Tree Removal and Pruning Arborist Services Action: A. Approve a contract with each of the following firms for tree removal arborist services (Fiscal Year 2016) in an amount not to exceed: 1. Heartwood Tree Service, LLC. ($167,000), 2. The Davey Tree Expert Company (167,000), 3. Cadieu Tree Experts, Inc. ($194,000), 4. HRF Enterprises, LLC. ($167,000), and 5. E. Schneider Enterprises, LLC, dba Schneider Tree Care ($167,000), and B. Authorize the City Manager to renew the contracts for one additional year. C. Approve a contract with each of the following firms for tree pruning arborist services (Fiscal Year 2016) in an amount not to exceed with the option to renew for one additional year: 1. E. Schneider Enterprises, LLC, dba Schneider Tree Care ($75,000), 2. Heartwood Tree Service, LLC ($50,000), 3. Arborguard Inc., dba Arborguard Tree Specialists ($100,000), and 4. The Davey Tree Expert Company ($75,000), and D. Authorize the City Manager to renew the contracts for one additional year. Staff Resource(s): Quin Hall, Engineering & Property Management Explanation § The following contracts will provide tree removal and pruning services for various locations within the City of Charlotte. § The City will issue work orders for specific individual projects separately to each contractor. § In May 2015, a Request for Proposals for these services was advertised; 14 firms submitted a proposal - seven for tree removal services and seven for tree pruning services. § None of the firms that submitted a Request for Proposals are MWSBEs. § Firms were selected based on criteria that included capability to perform, past performance, and pricing using the City Council-approved selection process. Tree Removal and Tree Arborist Services § These contracts will include the removal of trees identified by the City that are storm damaged, diseased/deteriorated, or pose a safety hazard to the public. § Services include stump grinding, debris removal and disposal, seeding, mulching, and clean up. § These contracts will include systematic tree pruning services throughout the City for completing street tree pruning. § Multiple crews can be retained for faster, ongoing pruning services as well as quick response to storm events. § Systematic tree pruning is important in reducing safety and liability issues as well as maintaining the overall health of the tree. Charlotte Business INClusion No subcontracting goals were established because there are no opportunities (Part C: Section 2.1 (a) of the Charlotte Business INClusion Policy). Fiscal Note City of Charlotte Page 29 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 Funding: General Pay-As-You-Go Community Investment Plan City of Charlotte Page 30 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 36. Scaleybark Road Traffic Calming Action: Award a contract in the amount of $1,433,650.61 to lowest responsive bidder Sealand Contractors Corp. for the Scaleybark Road Traffic Calming project. Staff Resource(s): Tim Greene, Engineering & Property Management Johanna Quinn, Transportation Explanation § The project will install traffic calming features along Scaleybark Road between Conway Avenue and Woodlawn Road. § The work will include: - Grading, - Drainage, - Concrete sidewalks, - Curb, - Wheelchair ramps and driveways, - Retaining walls, - Water mains and services, - Asphalt paving, and - Pavement markings. § On May 22, 2015, the City advertised an Invitation to Bid for Scaleybark Road Traffic Calming; less than three bids were received from interested service providers. § On July 9, 2015, the project was re-bid per NC General Statute 143.132 (a). Two bids were received from interested service providers, and staff was able to accept the bids per NC General Statute 143.129 (b). § Sealand Contractors Corp. was the lowest responsive bidder. § Construction is expected to be complete by fourth quarter 2016. Background § Innovative traffic calming tools include, curb extensions, bumpouts, and pavement markings to delineate alternate street uses, such as on-street parking and bicycle lanes. § Traffic calming projects are typically identified in response to citizen requests and traffic/speed studies. § Street improvements such as this traffic calming project often require the upgrade of existing utility infrastructure, including water, sewer, and storm drainage systems as part of the overall work. Any needed utility upgrades, as identified by Charlotte Water or Storm Water Services, are routinely incorporated into these general capital projects while the street is under construction. § The cost of the water main and sewer upgrades will be reimbursed by Charlotte Water. Charlotte Business INClusion Established SBE Goal: 13.00% Committed SBE Goal: 13.00% Sealand Contractors Corp. met the established SBE subcontracting goal, and has committed 13.00% ($186,375.30) of the total contract amount to the following certified firms: (Part B: Section 3 of the Charlotte Business INClusion Policy): § Darnell Jones Trucking, Inc. (SBE, MBE) ($64,807) (hauling) § D’s Trucking Services Inc. (SBE) ($64,806) (hauling) § MDJ Construction (SBE) ($23,544) (sidewalk/driveway) § On Time Construction, Inc. (SBE, MBE) ($20,550) (masonry) § Carolina Wetland Services, Inc. (SBE) ($4,697.30) (erosion control) City of Charlotte Page 31 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 § Spot Em Inc. (SBE) ($3,275) (utility locating) § R & N Construction Group, LLC (SBE) ($3,000) (retaining wall) § Boudreaux’s Iron Shop, Inc. (SBE) ($1,696) (handrail) Established MBE Goal: 4.00% Committed MBE Goal: 5.95% Sealand Contractors Corp. met the established MBE subcontracting goal, and has committed 5.95% ($85,357) of the total contract amount to the following certified firms: (Part B: Section 3 of the Charlotte Business INClusion Policy): § Darnell Jones Trucking, Inc. (SBE, MBE) ($64,807) (hauling) § On Time Construction, Inc. (SBE, MBE) ($20,550) (masonry) Fiscal Note Funding: General Transportation Community Investment Plan, Charlotte Water Community Investment Plan, and Storm Water Community Investment Plan Location Map - Scaleybark Road Traffic Calming City of Charlotte Page 32 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 37. Private Developer Funds Appropriation Action: Adopt a budget ordinance appropriating $232,269 in private developer funds for traffic signal improvements with the following developers: Toringdon Future Development, LLC, Old Towne Investments, LLC, Marsh Realty Company, Bradford Charter Holdings, LLC, and Dixie River Land Company, LLC. Staff Resource(s): Scott Putnam, Transportation Explanation § The $232,269 is restricted to traffic signals, upgrades, and related work to the developer projects listed below. § The following developers are fully funding traffic signal installations and improvements to mitigate traffic impacts around their respective development projects: - Toringdon Future Development, LLC contributed $75,000 for a new traffic signal installation at the intersection of Endhaven Lane and Elm Lane. - Old Towne Investments, LLC contributed $95,269 for modifications to the existing traffic signal at the intersection of Sharon Road and Ashley Park Lane. - Marsh Realty Company contributed $36,500 for modifications to the existing traffic signal at the intersection of South Boulevard and Poindexter Drive. - Bradford Charter Holdings, LLC contributed $14,000 for modifications to the existing traffic signal at the intersection of Interstate-485 with the NC 29 Ramp. - Dixie River Land Company, LLC contributed $11,500 for modifications to the existing traffic signal at the intersection of Trojan Drive and Dixie River Road. § Payments made by developers are in response to estimates of work prepared by the Charlotte Department of Transportation and supplied to the developers. § Any funding contributed by developers for signal projects that is unused by the City will be refunded after project completion. Fiscal Note Funding: Developer Contributions Traffic Signal Improvements_Map_ 070115 CDOT ord 072715 Developer Contributions City of Charlotte Page 33 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 38. Nevin Road Sidewalk Improvements Action: Award a contract in the amount of $868,574.96 to the lowest responsive bidder Sealand Contractors Corp. for the Nevin Road Sidewalk Improvements project. Staff Resource(s): Bette Frederick, Engineering & Property Management Explanation § In support of the City’s Sidewalk Program to enhance connectivity, offer transportation choices, and improve pedestrian safety, the project will provide six-foot wide sidewalk, eight-foot wide planting strips, and storm drainage improvements (where applicable) along the north side of Nevin Road from Lake Road to Alpine Lane and a portion of Lake Drive from Nevin Road to Alpine Lane (approximately 1.06 miles). § The project will also include the following infrastructure: - Accessible ramps, - Concrete driveways, - Pedestrian refuge island with pedestrian crossing, - Fifty-foot pedestrian bridge over Irwin Creek, and - Bus waiting pads. § On June 9, 2015, the City issued an Invitation to Bid; three bids were received from interested service providers. § Sealand Contractors Corp. was selected as the lowest responsive bidder. § Construction is expected to be complete fourth quarter 2015. Charlotte Business INClusion Established SBE Goal: 13.00% Committed SBE Goal: 13.00% Sealand Contractors Corp. met the established SBE subcontracting goal, and has committed 13.00% ($112,915) of the total contract amount to the following certified firms: (Part B: Section 3 of the Charlotte Business INClusion Policy): § D’s Trucking Services Inc. (SBE) ($49,704) (hauling) § Darnell Jones Trucking, Inc. (SBE, MBE) ($28,059) (hauling) § On Time Construction, Inc. (SBE, MBE) ($15,370) (concrete, masonry) § Boudreaux’s Iron Shop, Inc. (SBE) ($14,400) (handrail) § Carolina Wetland Services, Inc. (SBE) ($5,382) (erosion control) Established MBE Goal: 5.00% Committed MBE Goal: 5.00% Sealand Contractors Corp. met the established MBE subcontracting goal, and has committed 5.00% ($43,429) of the total contract amount to the following certified firms: (Part B: Section 3 of the Charlotte Business INClusion Policy): § Darnell Jones Trucking, Inc. (SBE, MBE) ($28,059) (hauling) § On Time Construction, Inc. (SBE, MBE) ($15,370) (concrete, masonry) Fiscal Note Funding: General Transportation Community Investment Plan Location Map - Nevin Road Sidewalk Improvements City of Charlotte Page 34 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 39. Underground Locating Services Action: A. Approve two service contracts (one with Storm Water Services and one with Transportation) with One Call Concepts Locating Services, Inc. to provide underground locating services for an initial term of three years, and B. Authorize the City Manager to renew the two contracts for an additional one-year term with possible price adjustments and to amend the contracts consistent with the City’s business needs and the purpose for which the contracts were approved. Staff Resource(s): Stewart Edwards, Engineering & Property Management Charles Abel, Transportation Explanation § City of Charlotte Storm Water Services currently has more than 5,000 miles of storm drainage system. § Charlotte Department of Transportation has more than 250 miles of fiber optic communications cables. § The Underground Damage Prevention Act, effective October 2014, has increased the demands and requirements of City-provided underground locating thus increasing the demand for locating services. § Locating demands are anticipated to increase as construction and telecom needs increase and infrastructure updates continue. § On May 1, 2015, Charlotte Water issued a Request for Proposals for Charlotte Water, Storm Water, and Charlotte Department of Transportation to select a vendor to provide underground locating services; three proposals were received from interested service providers. § The project team, consisting of staff from Charlotte Water and Engineering & Property Management, evaluated the proposals and determined that One Call Concepts Locating Services, Inc. best meets the City’s needs in terms of qualifications, experience, cost, and responsiveness. § The unit prices, set forth in the contract, are available upon request. § Estimated contract expenditures for Storm Water Services are approximately $3,000,000 total for the three-year term. § Estimated contract expenditures for the Charlotte Department of Transportation are approximately $120,000 total for the three-year term. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Storm Water Services Operating Budget and General Transportation Community Investment Plan .Attachments City of Charlotte Page 35 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 40. West Terminal Ramp Expansion Design Services Contract Amendment Action: A. Approve Contract Amendment #1 in the amount of $411,806 to Talbert, Bright, and Ellington, Inc. for Design Services for the Demolition and Environmental Remediation of the West Terminal Ramp Expansion, and B. Adopt a budget ordinance appropriating $411,806 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Jack Christine, Aviation Explanation § On September 22, 2014, the City Council approved a design contract with Talbert, Bright and Ellington, Inc. in the amount of $2,783,581 for the West Terminal Ramp Design. § The West Terminal Ramp Expansion is located on the site of the old rental car return facilities on Rental Car Road. § Contract amendment #1 in the amount of $411,806 will include the demolition and environmental remediation contract documents in order to properly dispose of any contaminated facilities and soil. § An environmental assessment was conducted by AECOM of NC to determine the extent of any environmental contamination and to develop the process by which to dispose of this material. AECOM will be a subcontractor to Talbert, Bright, and Ellington, Inc. during the contract document preparation and will be monitoring the remediation process during the removal and demolition phase. § The new total value of the contract including the amendment is $3,195,387. Disadvantage Business Enterprise All additional work involved in this amendment will be performed by Talbert, Bright, and Ellington, Inc. and their existing sub consultants. For this amendment Talbert, Bright, and Ellington, Inc. has committed 9.76% ($40,200) of this amendment to the following certified firms: § Prism Laboratories, INC. (DBE,WBE) ($40,200) (analytical service) Fiscal Note Funding: Aviation Community Investment Plan Budget Ordinance City of Charlotte Page 36 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 41. Airport East Terminal Expansion Phase II Design Contract Amendment Action: Approve contract amendment #1 in the amount of $417,360 with DAS Architecture, Inc. for the LEED Certification Plan for the East Terminal Expansion 2015 - Phase II. Staff Resource(s): Jack Christine, Aviation Explanation § The Aviation Department developed the East Terminal Expansion design and construction in two phases. Phase I included the construction of additional space at the baggage level for conveyors and sorters and was completed in 2012. § Phase I design also included some preliminary design for Phase II - construction of a food court and additional circulation space on the departures level. After reviewing the initial design of Phase II, airline partners requested that additional work on the project be put on hold. § On December 8, 2014, the City Council approved a contract with DAS Architecture, Inc. in the amount of $704,800 to restart Phase II design and to add a third level for tenant office space. § The Aviation Department determined that the project could achieve LEED certification in accordance with the City’s draft Sustainability Policy by adjusting the original design. § The amendment’s scope is to determine what is needed to ensure certification, revise the bid package, administer the process with the United States Green Building Council, and provide the required commissioning services to complete the building start-up. § The new total value of the contract including the amendment is $1,122,160. The project remains within budget. Charlotte Business INClusion The work involved in this amendment will be performed by DAS Architecture, Inc. and its existing sub-consultants (Part D: Section 6 of the Charlotte Business INClusion Policy). For this amendment, DAS Architecture has committed 10.06% ($42,000) to the following certified firm: § System WorCx, PLLC (SBE) ($42,000) (LEED Commissioning) Fiscal Note Funding: Aviation Community Investment Plan City of Charlotte Page 37 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 42. Concourse E Phase VIII Design Contract Amendment Action: A. Approve contract amendment #1 in the amount of $472,730 with LS3P Associates for additional design services of Concourse E Phase VIII, and B. Adopt a budget ordinance appropriating $472,730 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Jack Christine, Aviation Explanation § The Aviation Department has constructed Concourse E in multiple phases to meet the growing demand of the airline partners. Phase I of construction on Concourse E began in 1999. § On February 9, 2015, the City Council awarded a contract with LS3P Associates in the amount of $372,475 for design services of Concourse E Phase VIII, which included space for six new gates, adequate holdroom, passenger boarding bridges, concessions, and restrooms. § American Airlines has requested four additional gates with holdrooms and support space, bringing the total number of gates to 10 in this phase. § Contract amendment #1 in the amount of $472,730 will accommodate the additional design work needed for the additional space. § The new total value of the contract including the amendment is $845,205. Charlotte Business INClusion The work involved in this amendment will be performed by LS3P Associates and its existing sub-consultants (Part D: Section 6 of the Charlotte Business INClusion Policy). For this amendment, LS3P Associates has committed 23.69% ($111,990) to the following certified firm: § Wilson Group Architects PA (SBE) ($111,990) (architectural design and construction administration) Fiscal Note Funding: Aviation Community Investment Fund The airlines will pay for the total cost of Phase VIII Expansion through rates and charges. Budget Ordinance City of Charlotte Page 38 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 43. Runway and Taxiway Rehabilitation Design Services Contract Amendment Action: A. Approve contract amendment #2 in the amount of $181,345 with W.K. Dickson & Co. Inc. for airfield design services to rehabilitate the Runway and Taxiway Pavement, and B. Adopt a budget ordinance appropriating $181,345 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Jack Christine, Aviation Explanation § On May 28, 2013, the City Council awarded a contract to W.K. Dickson & Co. Inc. in the amount of $196,000 for design services of rehabilitating Runway 18L-36R and associated taxiway pavements. § On February 2, 2015, the Aviation Director approved contract amendment #1 in the amount of $47,890 for additional design and construction administrative services related to the Runway 18L- 36R project. § Contract amendment #2 in the amount of $181,345 includes the redesign of the Runway 5- 23/Taxiways D, A, and M pavement rehabilitation project to include bidding services, construction administration, construction inspection, and quality assurance testing. § The total contract amount including the amendments will be $425,235. Disadvantage Business Opportunity All additional work involved in this amendment will be performed by W.K. Dickson & Co. Inc. and its existing sub-consultants. W.K. Dickson & Co. Inc. has committed 33.09% ($60,000) of this amendment to the following certified firm: · On Spec Engineering PC (DBE) ($60,000) (quality assurance testing) Fiscal Note Funding: Aviation Community Investment Plan Budget Ordinance City of Charlotte Page 39 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 44. Passenger Boarding Bridges and Ancillary Equipment Action: A. Award a contract in the amount of $2,718,228 to the lowest responsive bidder John Bean Technologies Corporation for the purchase of three passenger boarding bridges and ancillary equipment, and B. Adopt a budget ordinance appropriating $2,718,228 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Jack Christine, Aviation Explanation § A passenger boarding bridge is a device that passengers use to board an aircraft. § The Aviation Department is replacing two, older passenger boarding bridges and installing a new one on Concourse A to accommodate the airlines’ needs. § In addition to the passenger boarding bridges, the Aviation Department is also replacing the preconditioned air units and ground power units for each of the three gates. § On May 8, 2015, the City issued an Invitation to Bid for the purchase and installation of the three passenger boarding bridges, preconditioned air units, and ground power units; two bids were received from interested service providers. § John Bean Technologies Corporation was selected as the lowest responsive bidder. Charlotte Business INClusion No subcontracting goal was established because there are no opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Community Investment Plan The Aviation Department will seek reimbursement for this purchase from the Passenger Facility Charge (PFC) fund upon Federal Aviation Administration approval of PFC application #6. Budget Ordinance City of Charlotte Page 40 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 45. Interstate-85 Airport Directional Signage Municipal Agreement Action: A. Adopt a resolution authorizing the City Manager to execute a Municipal Agreement with the North Carolina Department of Transportation in the amount of $176,013.10 for signage modifications associated with the Josh Birmingham Parkway Realignment project, B. Authorize the City Manager to approve the final reimbursement request for the actual costs of construction, and C. Adopt a budget ordinance appropriating $176,013.10 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Jack Christine, Aviation Explanation § The Aviation Department recently completed the Josh Birmingham Parkway Realignment project, which now connects the new Entrance Roadway to Little Rock Road and creates a direct route from Interstate-85 to the front of the Terminal. § The Aviation Department is entering into a Municipal Agreement with North Carolina Department of Transportation (NCDOT) to modify existing interstate guide signs along Interstate-85 between Interstate-485 and Freedom Drive directing vehicles to the Airport. § The estimated total cost of $176,013.10 includes the design, fabrication, and associated labor for installation of the signs. § Should the actual cost be different from the estimated amount of this Agreement, the City Manager will sign a Supplemental Agreement for the cost differential. Final invoice differences can be attributed to: - Actual unit price bids being different than estimate; - Changes in material costs between when the estimate was prepared and the completion of the project; or - Required design modifications resulting NCDOT project changes. § The format and cost-sharing philosophy are consistent with past Municipal Agreements. Charlotte Business INClusion This is an Interlocal Agreement contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy. Fiscal Note Funding: Aviation Community Investment Plan Budget Ordinance Resolution City of Charlotte Page 41 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 46. Aircraft Deicing Operator Action: Authorize the City Manager to approve additional expenses related to the contract with Integrated Deicing Services, LLC from time to time consistent with the City’s business needs for the duration of the contract. Staff Resource(s): Jack Christine, Aviation Explanation § The Aviation Department presently provides aircraft deicing services for the airlines, with the airlines reimbursing the Aviation Department for all deicing facilities, materials, and services through a deicing use charge. § On September 13, 2010, the City Council approved a three-year contract with Integrated Deicing Services, LLC (IDS -formerly Contego Systems, LLC) to operate an aircraft deicing facility at the Airport. The contract included an option for a three-year extension exercisable by the City Council. § On September 8, 2014, the City Council approved the extension and amendment of the original contract for additional services that IDS would undertake at the request of the Aviation Department, including the procurement of deicing fluid and additional management responsibilities. § The September 8 action included a statement in the explanation that the contract amount, including the three-year extension, was estimated to be $8,070,000. In actuality, this number represented the projected cost of a three-year extension only. The revised, estimated contract amount for the initial three-year term and the three year extension is $14,500,000. § The action will authorize the City Manager to approve additional funds for Airport deicing operations in an amount not to exceed $14,500,000 through the expiration of the three-year extension. Charlotte Business INClusion No subcontracting goal was established because there are no opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Operating Budget City of Charlotte Page 42 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 47. Airport Building Automation System Upgrade Action: A. Approve the purchase of the Airport Building Automation System Upgrade, as authorized by the sole source exemption of G.S. 143-129 (e)(6), and B. Approve a contract with Johnson Controls, Inc. for the purchase and installation of building automation hardware in an amount not to exceed $392,561. Staff Resource(s): Jack Christine, Aviation Sole Source Exemption § G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when: - Performance or price competition are not available; - A needed product is available from only one source or supply; or - Standardization or compatibility is the overriding consideration. § Sole sourcing is necessary for this contract due to compatibility with existing equipment. § The City Council must approve purchases made under the sole source exception. Explanation § The Airport has a Building Automation System (BAS), MetaSys, that controls and monitors all heating, air conditioning, and lighting systems at the Airport. This allows the Airport to optimize the systems for energy savings, and to remotely control the systems to efficiently operate the system and over-ride it in an emergency. § The Airport’s BAS was originally installed in the Airport Terminal in the 1980’s using the technology that was current at the time. § As the Aviation Department expanded the Terminal, there were subsequent additions to the BAS using technology that was current at the time of construction. § Original parts of the Terminal still use the original controller components and related connectivity that were installed in the 1980’s. These older components are no longer serviceable and parts are no longer available. § Johnson Controls, Inc. installed the original BAS and is currently under contract with the Airport to maintain the system. Johnson Controls will maintain this new equipment under the existing maintenance agreement as they are the manufacturer of the system components. Charlotte Business INClusion This is a sole source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Community Investment Plan City of Charlotte Page 43 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 48. Airport Waste Hauling Action: Approve a one-year contract with Waste Management of the Carolinas for airport waste hauling and disposal. Staff Resource(s): Jack Christine, Aviation Explanation § As part of Aviation’s commitment to the environment, Aviation entered into a contract for the provision of single-stream recycling of the Airport’s waste at an onsite recycling center. § The Aviation Department terminated the existing contract due to the current contractor’s inability to meet their contractual obligations. The Airport’s waste hauling and disposal service was subcontracted to Waste Management of the Carolinas as part of this existing recycling contract. § Waste Management of the Carolinas, in its subcontractor role, has a team available, badged, trained, and familiar with Airport operations. § Each month, the Airport generates on average over 3,000 tons of refuse making it necessary that there is no interruption in waste hauling and disposal services. § The contract will allow Waste Management to provide these services from August 1, 2015, to July 31, 2016. § The Aviation Department requested and was granted by Procurement Services a waiver to the formal solicitation requirement for this contract to ensure there was no interruption in service. This one-year period will provide ample time to review current business processes and complete a formal solicitation for both waste hauling and disposal services and the recycling contract. § The annual estimated expenditure is $750,000. Charlotte Business Inclusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Operating Budget Waste Hauling Waiver City of Charlotte Page 44 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 49. Airport Financial and Business Consulting Services Action: A. Approve contracts with the following companies for financial, business, and passenger facility charges consulting services for an initial term of five years with: 1. Newton and Associates, Inc., 2. Frasca and Associates, LLC, and 3. LeighFisher, Inc., and B. Authorize the City Manager to amend the contract from time to time consistent with the City’s business needs and to renew the contracts for up to two additional, one-year terms. Staff Resource(s): Brent Cagle, Aviation Explanation § The Aviation Department uses a combination of full-time staff and consultants to prepare financial statements, financial models and analysis, and to oversee the Airport’s fiscal and business operations. § On March 24, 2015, the Aviation Department issued a Request for Proposals for the following services: financial consulting, business consulting, and Passenger Facility Charge (PFC) consulting services. The Aviation Department received eight proposals for these services. § A selection committee composed of Aviation Department staff and Management & Financial Services staff recommends the firms listed in Action Item A for various scopes of work: - Newton and Associates, Inc. has served as a financial and business consultant to the Airport since 1997. The selection committee chose them for financial and business consulting work based on the extensive and proven experience with the Airport’s history, and their involvement with current financial and business projects, including the development of the Airport Financial Plan, calculation of airline rates and charges, and negotiations of key business and revenue contracts. - The selection committee also selected Newton and Associates, Inc. for PFC administrative consulting services based on their successful development and administration of PFC programs at Charlotte Douglas and other airports across the country. - On November 25, 2013, the City Council approved a contract with Frasca and Associates, LLC financial advisory services for the Airport. They filled an integral role in the development of the Airport’s first Annual Report, development of the Airport’s Strategic Financial Plan, and are currently involved in developing rate models related to airline lease negotiations. The selection committee selected Frasca for financial consulting based on their current performance as well as their experience with other large hub airports. - LeighFisher, Inc. is a global leader in aviation consulting and has previously provided consulting services to the Aviation Department. The committee selected LeighFisher, Inc. for business consulting services based on their experience with the development of concession and other non-aeronautical revenue programs at other large hub airports throughout the county. § Multiple contracts will ensure availability, flexibility, and alternative solutions in the provision of services to best fit the particular needs of the Airport. § The hourly rates to be charged by the service providers vary based on the experience and qualifications of each firm’s consultants. A list of hourly billing rates is available upon request. § Total aggregate expenditures across all of the above contracts are estimated to be $4,000,000 over the five year term. Charlotte Business INClusion Subcontracting goals were not established on these contracts because there were no identified City of Charlotte Page 45 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). However, Newton & Associates, LLC is a City SBE. In addition, for Frasca and Associates, the City negotiated subcontracting participation after the proposal selection process, resulting in a commitment of 10% ($75,000) of their total contract amount to the following certified firm: Charles O Simmons - CPA (MBE) ($75,000) (financial analysis). Fiscal Note Funding: Aviation Operating Budget and Aviation Community Investment Plan 50. Airport Passenger Facility Charge Application Development #6 Action: A. Approve a professional services contract in an amount not to exceed $235,000 with Newton & Associates, Inc. for Passenger Facility Charge Application #6 development, and B. Adopt a budget ordinance appropriating $235,000 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund. Staff Resource(s): Brent Cagle, Aviation Explanation § The Federal Aviation Administration (FAA) has authorized the Airport to collect a Passenger Facility Charge (PFC) in the amount of $3.00 for all revenue passengers boarding a commercial flight in Charlotte. § The FAA restricts the use of these funds to certain types of expenses and requires all airports to submit an application detailing the use of these expenditures. § Since implementing the PFC program in 2004, the Aviation Department has submitted five PFC applications to fund such items as airfield and terminal expansion, the purchase of new airport fire-fighting equipment, and passenger boarding units. § The application process requires extensive knowledge of the PFC project eligibility and restrictions. § On March 24, 2015, the Aviation Department issued a Request for Proposals for PFC application development services in conjunction with financial and business consulting services. The Aviation Department received seven proposals for the development of the Airport’s sixth PFC application. § A selection committee of Aviation Department staff and Management & Financial Services staff selected Newton & Associates, Inc. for the development of PFC application #6 based on their previous success in the development and approval of PFC Applications #1 through #5, successful administration of the existing program, and their familiarity with the Airport’s existing community investment plan. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Newton & Associates, Inc. is a SBE. Fiscal Note Funding: Aviation Community Investment Plan The Airport will seek reimbursement for expenses associated with this contract from the PFC fund upon FAA approval of PFC application #6. Budget Ordinance City of Charlotte Page 46 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 51. Airport Vehicle and Equipment Fuel Contract Action: A. Award a unit price contract to the lowest responsive bidder Petroleum Traders Corporation for the purchase of fuel products for three years, and B. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the City’s business needs and the purpose for which the contract was approved. Staff Resource(s): Jack Christine, Aviation Explanation § The Aviation Department uses four types of fuel for its operations: ethanol-enhanced gasoline, unleaded gasoline, ultra-low-sulfur diesel, and ultra-low sulfur red-dyed diesel. § On March 31, 2015, Aviation issued an Invitation to Bid; five bids were received from interested service providers. § TAC Energy was initially the lowest responsive bidder but withdrew the bid based on their inability to meet the requirements necessary for the fuel operations. § Petroleum Traders Corporation was selected as the lowest responsive bidder based on a compilation of rates for the four fuel products. § The contract provides pricing based on the Oil Price Information Service Gross Average Rack Price on Thursday of each week plus a margin. § The annual expenditures are estimated to be $4,000,000 based on current oil prices. Charlotte Business INClusion No subcontracting goal was established because there are no opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Operating Fund City of Charlotte Page 47 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 52. Airport Shuttle Bus Washing Action: A. Approve a contract with Klean First Professionals for bus washing services for the term of three years, and B. Authorize the City Manager to amend the contract from time to time consistent with the City’s business needs and to renew the contracts for up to two additional, one-year terms. Staff Resource(s): Jack Christine, Aviation Explanation § Auto industry best practices suggest that a regular washing program can prolong the finish life and defer corrosion by removing environmental decontaminants from vehicle surfaces. In addition to normal weather exposure, numerous construction projects have increased the frequency of washing needed to maintain the cleanliness of the buses. § On May 22, 2015, the Aviation Department issued an Invitation to Bid for bus washing services; 13 bids were received from interested service providers. § Klean First Professionals was the second lowest bidder, and the lowest responsible bidder. § Klean First Professionals has extensive experience with large fleet washing operations, having worked previously for Mecklenburg Transportation System and Charlotte-Mecklenburg Schools. § Annual expenditures under the contract are estimated to be $127,920. § The selected vendor maintained a static unit price for cleaning each bus in the submitted bid documentation, which is $30 per unit per week for all five potential contract years. Reject the Low-Bid Explanation § The Aviation Department deemed Gentry Cleaners, Inc. not responsible due to the inability to meet reference requirements of the Invitation to Bid. Charlotte Business INClusion No subcontracting goal was established because there are no opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Aviation Operating Fund City of Charlotte Page 48 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 53. Analytical Laboratory Services Action: Approve a services contract with Pace Analytical Services, Inc. to provide analytical laboratory services testing for a term of two years. Staff Resource(s): Barry Shearin, Charlotte Water Explanation § The Federal Safe Drinking Water Act requires all drinking water suppliers to analyze their product for various compounds. This monitoring and analysis ensures drinking water meets Environmental Protection Agency and North Carolina Department of Environment and Natural Resources regulatory requirements for consumer health and safety. § The services in this contract include additional analyses of compounds listed under review for future regulations and analyses related to the assessment of new treatment strategies under consideration. The water quality testing associated with this contract includes source water monitoring for pharmaceuticals and personal care products, drinking water compliance, and sampling associated with special projects such as the corrosion control study Charlotte Water is currently conducting in an effort to enhance water quality in the distribution system. § The existing Charlotte Water Laboratory Services division is not equipped to perform these specific types of analyses. § On May 14, 2015, Charlotte Water issued a Request for Proposals for these specific analytical laboratory services; three proposals were received from interested service providers. § Pace Analytical Services, Inc. was selected based on best overall value, which includes their experience, background, approach, and pricing. § The annual expenditures are anticipated to total $74,640. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Charlotte Water Operating Budget City of Charlotte Page 49 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 54. Waste Water Treatment Process Control Preventative Maintenance Services Action: Approve a contract with Hach Company for process control equipment preventative maintenance services for a term of three years. Staff Resource(s): Barry Shearin, Charlotte Water Explanation § Charlotte Water uses Hach electronic equipment to monitor and control wastewater treatment processes in the plants. The equipment monitors and controls parameters such as dissolved oxygen, nutrient levels, ammonia, pH, alkalinity, and other physical and chemical values at various points within each of the plants. § Equipment of this type requires periodic calibration, maintenance, and repair of equipment. § The equipment allows plant managers to better control the amount of electricity and chemicals used during the treatment process while improving water quality. § These support services ensure the integrity of data reported to the state and federal regulatory agencies. § On May 18, 2015, Charlotte Water issued a Request for Proposals (RFP) for process control equipment preventative maintenance services. The RFP was electronically advertised in addition to a notice of advertisement distributed to 28 potential vendors. One proposal was received from an interested service provider. § Charlotte Water staff evaluated the proposal and determined that Hach Company’s proposal meets the City’s needs in terms of qualifications, experience, cost, appropriate response time, value, and responsiveness to the RFP requirements. § Total estimated annual expenditures are $282,282, and the estimated total over a three-year timeframe is $826,846. § Estimated three year expenditures for Union County in the amount of $36,000 will be refunded back to Charlotte Water as part of the current existing interlocal agreement. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Charlotte Water Operating Budget City of Charlotte Page 50 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 55. Steele Creek Pumping Station Replacement Project Action: Award a contract in the amount of $44,321,000 to the lowest responsive bidder English Construction Company, Inc. for construction services for the Steele Creek Pumping Station Replacement project. Staff Resource(s): Barry Shearin, Charlotte Water Explanation § Located in southwestern Mecklenburg County, the Steele Creek Pumping Station is one of the largest wastewater pump stations in the sewer system. This station serves an area approximately bounded by Interstate-485/Interstate-77, the Catawba River, the North/South Carolinas state line, and Shopton Road West. It has been in operation since 1981 and conveys wastewater to the McAlpine Creek treatment plant in Pineville. § The replacement project is needed to accommodate growth in the region. § The project will include building a new pumping station and more than six miles of large diameter pipe. § On April 6, 2015, Charlotte Water presented information about this project to the City Council Environment Committee. § The construction is scheduled to take approximately two years. § On April 28, 2015, Charlotte Water issued an Invitation to Bid for construction services for the Steele Creek Pumping Station Replacement project; four bids were received from interested service providers. § English Construction Company, Inc. was selected as the lowest responsive bidder. § Due to the nature of this project, the engineer’s estimate showed approximately 10% of the total project, estimated at $44.5 million, was for labor. The vast majority of the project is attributed to the cost of materials and supplies. As a result, Charlotte Water recognized the need to have an aggressive outreach effort to enhance MWSBE participation. § Charlotte Water contracted with Lil Associates II Inc., a City of Charlotte SBE and MBE, to assist with administering the Charlotte Business INClusion process on this project. Their services included establishing the project goals and facilitating two outreach sessions to connect prime contractors and SBE/MBEs prior to the bid opening. Charlotte Business INClusion Established SBE Goal: 2.00% Committed SBE Goal: 2.15% English Construction Company, Inc. exceeded the established SBE subcontracting goal, and has committed 2.15% ($948,000) of the total contract amount to the following certified firms (Part B: Section 3 of the Charlotte Business INClusion Policy): · P&TL, Inc. (SBE) ($385,000) (erosion control) · A-1 Precision Fence Company (SBE) ($143,000) (fence and gates) · Oliver Paving Company, Inc. (SBE, WBE) ($136,000) (paving) · MTS Trucking, Inc. (SBE, MBE) ($126,000) (hauling) · Sanders Constructors, Inc. (SBE) ($126,000) (clearing) · Martin Landscaping Company, Inc. (SBE) ($25,000) (landscaping) · D’s Trucking Service, Inc. (SBE, WBE) ($3,500) (hauling) · Diamond Trucking of NC Inc. (SBE, MBE) ($3,500) (hauling) Established MBE Goal: 2.00% Committed MBE Goal: 0.88% English Construction Company, Inc. failed to meet the established MBE subcontracting goal, but earned the City of Charlotte Page 51 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 minimum Good Faith Efforts (Part B: Section 5 of the Charlotte Business INClusion Policy). English Construction Company, Inc. has committed 0.88% ($386,692) of the total contract amount to the following certified firms: · CITI, LLC (MBE) ($257,192) (instrumentation and programming) · MTS Trucking, Inc. (SBE, MBE) ($126,000) (hauling) · Diamond Trucking of NC Inc. (SBE, MBE) ($3,500) (hauling) A further detailed write-up of English Construction Company, Inc. Good Faith Efforts is included as an attachment. Fiscal Note Funding: Charlotte Water Community Investment Plan WATER_072715__SteeleCreekPumpStation_Map GFE Summary Attachment for SteeleCreekPumpingStationReplacement221-05-657 56. Delivery of Sugar Water to Wastewater Treatment Plants Action: Approve contracts for the delivery of sugar water from the following vendors: 1. Coca-Cola Bottling Co. Consolidated ($250,000), 2. Independent Beverage Corporation ($120,000), and 3. Choice USA Beverage, Inc. ($50,000). Staff Resource(s): Barry Shearin, Charlotte Water Explanation § Charlotte Water currently contracts for delivery of sugar water to its wastewater treatment facilities. Sugar water is a waste product from local beverage companies to use in place of more expensive chemicals in the wastewater treatment process. Due to the limited availability of sugar water from any one company, Charlotte Water has three contracts for the delivery of sugar water. § Savings from the use of this product and others like it have resulted in savings of approximately $200,000 over the past year. § Using sugar water in the wastewater treatment process is environmental-friendly. It is used as a food source at the treatment plants that gets metered into the system for biological treatment of wastewater. § Due to the unique service and the limited number of vendors that can provide this service, in the past Charlotte Water received approval from the City Manager’s office to waive a solicitation process for this service. § The contract price is for delivery costs only as the product is provided free. This delivery price is determined by negotiation with each producer. Charlotte Business INClusion No subcontracting goals were established because there are no opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Charlotte Water Operating Budget City of Charlotte Page 52 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 57. Water Main Cleaning and Epoxy Lining Contract Action: A. Approve contract renewal #2 in the amount of $3,923,685.77 with Heitkamp, Inc. for water main cleaning and epoxy lining services, and B. Authorize the City Manager to approve up to one additional renewal with possible price adjustments based on the Construction Cost Index. Staff Resource(s): Barry Shearin, Charlotte Water Explanation § Charlotte Water operates and maintains more than 4,200 miles of water mains throughout Mecklenburg County with some aged more than 75 years. Cleaning and lining service are needed to restore hydraulic capacity and maintain water quality. The focus of the work is older areas of the water distribution system and will restore approximately 6.5 miles of water mains. § Projects are currently planned for the Ashley Park and Chantilly/Grier Heights areas. § Contract renewal #2 in the amount of $3,923,685.77 is needed to continue funding additional rehab needs that have been identified. The renewals are contingent on the contractor’s performance and the need for the work. § On April 9, 2012, the City Council awarded the original contract in the amount of $3,639,782.71. § On October 28, 2013, the City Council awarded contract renewal #1 in the amount of $3,748,976.20. § The new contract total including renewals is $11,312,444.68. Charlotte Business INClusion The work involved in this contract renewal will be performed by Heitkamp, Inc. and their existing subcontractors (Part D: Section 6 of the Charlotte Business INClusion Policy). For this renewal, Heitkamp, Inc. has committed 7.73% ($303,472) to the following certified firms: § Central Carolina Underground, Inc. (SBE) ($225,000) (excavation) § Conmat Development, Inc. (SBE) ($39,236) (sidewalk and concrete) § Shipps Fire Equipment Sales, Inc. (SBE, MBE) ($39,236) (backflow calibration) Fiscal Note Funding: Charlotte Water Community Investment Plan City of Charlotte Page 53 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 58. Transfer Surplus Land at Sugar Creek Waste Water Treatment Plant Action: Approve the transfer of approximately 9.5 acres of surplus land (Portion of tax identification number 173-061-02) located along Little Sugar Creek, south of Archdale Road to Mecklenburg County. Staff Resource(s): Barry Shearin, Charlotte Water Tim O’Brien, Engineering & Property Management Explanation § The property to be transferred is approximately 9.5 acres of a 17.97-acre parcel. Most of the land being transferred is in the 100-year flood plain with steep terrain and generally not developable. The land is located south of the Sugar Creek Waste Water Treatment Plant and is zoned R-4. The property was acquired in 1931 and is no longer needed by Charlotte Water. § Little Sugar Creek is within the area to be transferred to Mecklenburg County. Duke Power and Piedmont Natural Gas have utility easements that run the length of the property to be conveyed. § The Future Land Use Plan calls for this area along Little Sugar Creek to be designated as greenway. Due to the inability to construct within the flood plain area, the highest and best use for the portion of the land being transferred to Mecklenburg County is for greenway purposes. § Transferring the land to Mecklenburg County will likely make the remaining property (approximately 8.5 acres) more valuable since it will benefit from the amenity of a greenway trail. § No Charlotte Water utility lines within the area will be transferred; and there are no plans for future lines within the area. Background § Mecklenburg County is working in partnership with the City’s Cross Charlotte Trail which will result in a continuous north/south greenway and multi-use trail across the County. § Along with this portion of the Little Sugar Creek Greenway Trail, Mecklenburg County Park and Recreation Department will be constructing the greenway trail through Charlotte Water’s Sugar Creek Waste Water Treatment Plant property. A fence will be installed to protect the plant and keep pedestrians from accessing the waste water treatment plant operating area. § The Charlotte Mecklenburg Planning Committee recommended approval by a 5-0 vote to include this parcel to the greenway system as it will serve a critical need in providing linkages to other greenway trails, including the Cross Charlotte Trail. Fiscal Note Funding: Not applicable Attachment Map Little Sugar Creek Greenway Trail Map City of Charlotte Page 54 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 59. Cummins Diesel Original Equipment Manufacturer Repair Parts Action: A. Approve a unit price contract to the lowest responsive bidder MHC Kenworth for Cummins diesel original equipment manufacturer repair and replacement parts for the term of three years, and B. Authorize the City Manager to renew the contract for up to two additional, one-year terms and amend the contract consistent with the City’s business needs and the purpose for which the contract was approved. Staff Resource(s): Chris Trull, Management & Financial Services Explanation § The contract will provide Management & Financial Services, Fleet Management with Cummins original equipment manufacturer (OEM) diesel repair and replacement parts for fleet vehicles, including but not limited to, fuel system parts, injectors, seals, engine cooling systems components, internal engine components, turbochargers, and related power-plant repair, and maintenance items. § Cummins diesel engines power numerous pieces of equipment in the City fleet including but not restricted to fire apparatus, construction equipment, and other heavy/medium trucks. § An Invitation to Bid was issued and included specifications for 62 various diesel parts not currently provided through other heavy vehicle parts contracts; four bids were received from interested service providers. § MHC Kenworth submitted the lowest responsive bid. § Fleet Management will purchase parts on a unit cost basis as needed. § Annual expenditures under the contract are estimated to be $300,000. Fiscal Note Funding: Management & Financial Services Operating Budget Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy). City of Charlotte Page 55 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 60. Vehicle and Equipment Purchases from State Contracts Action: A. Approve the purchase of vehicles and fleet equipment from state contracts as authorized by G.S. 143-129(e)(9), B. Approve a contract with the following vendors for the purchase of vehicles and equipment for a term of one-year under NC Department of Purchase and Contract number 065A, 065C, 070A, 070G, 070Q, and 760H: 1. Asheville Ford Lincoln, 2. Capital Ford of Raleigh, 3. Capital Ford of Wilmington, 4. Charlotte Truck Center, 5. Godwin Manufacturing, 6. Horace G. Ilderton, LLC, 7. James River Equipment, 8. Knapheide, 9. Piedmont Truck Center, 10. Rob's Hydraulics, and 11. Sir Walter Chevrolet. Staff Resource(s): Chris Trull, Management & Financial Services State Contract Exemption G.S. 143-129(e)(9) allows local government to purchase from state contracts if the contractor is willing to extend the same or more favorable prices, terms, and conditions as those established under the state contract. Explanation § Management & Financial Services collaborates with other City departments on an annual basis to assess vehicles and equipment in determining replacement needs based on a rating of vehicle usage, age, maintenance costs, and condition. § State contracts aggregate purchasing power state-wide to provide goods to public agencies at the best value. § The vendors above are willing to provide vehicles and equipment to the City at the same or better terms as are provided in their contracts with the state of North Carolina. § In Fiscal Year 2015, the City solicited bids for vehicles commonly purchased from state contract in order to verify that state contracts were providing the best value for the City. The resulting bids received by the City reflected higher pricing than available from the state contract for every item for which bids were solicited. § The unit prices set forth in the proposed contracts is available upon request. § Annual expenditures are estimated to be $6,475,500 as shown the attachment. Charlotte Business INClusion These contracts are purchased off a State contract and are exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Various General and Enterprise Capital Equipment Replacement Funds City of Charlotte Page 56 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 15-733 Estimated Spend by Vendor 61. Vehicle and Equipment Purchases from Cooperative Contracts Action: A. Approve the purchase of vehicles and fleet equipment from cooperative purchasing contracts as authorized by G.S. 143-129(e)(3), and B. Approve a contract with the following vendors for the purchase of vehicles and equipment for a one-year term under Houston-Galveston Area Council Buy contracts HT06-14 and SC01-15: 1. Chastang’s Bayou City Autocar, 2. Grande Truck Center, 3. Hi-Vac Corporation, 4. Houston Frightliner-Western Star, and 5. Sewer Equipment Co. of America. Staff Resource(s): Chris Trull, Management & Financial Services Cooperative Purchasing Exemption NC S.L. 2001-328, effective January 1, 2002, authorizes competitive group purchasing. Explanation § Management & Financial Services collaborates with other City departments on an annual basis to assess vehicles and equipment in determining replacement needs based on a rating of vehicle usage, age, maintenance costs, and condition. § Cooperative purchasing contracts aggregate purchasing power at a regional or national level to provide goods to public agencies at the best value. § The vendors above have contracts awarded through Houston-Galveston Area Council Buy that offer competitively obtained contracts to public agencies for public works vehicles and equipment. § The unit prices, set forth in the proposed contracts, are available upon request. § Annual expenditures are estimated to be $2,065,000. Charlotte Business INClusion These are cooperative purchasing contracts and are exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: General and Enterprise Capital Equipment Replacement Funds 15-788 Estimated Spend by Vendor City of Charlotte Page 57 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 62. Freightliner and Sterling Truck Parts and Services Action: A. Approve the purchase of Freightliner and Sterling Truck Original Equipment Manufacturer replacement and repair parts and services, as authorized by the sole source exemption of G.S. 143-129 (e)(6), B. Approve a contract with Charlotte Truck for the purchase of original equipment manufacturer replacement and repair parts and services for an initial term of three years, and C. Authorize the City Manager to extend a contract for up to two additional, one-year terms with possible price adjustments as deemed reasonable and appropriate by the City Manager. Staff Resource(s): Chris Trull, Management & Financial Services Sole Source Exemption § G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when: - Performance or price competition are not available; - A needed product is available from only one source or supply; or - Standardization or compatibility is the overriding consideration. § Sole sourcing is necessary for this contract because there is only one supply source. § The City Council must approve purchases made under the sole source exception. Explanation § The City currently operates 129 Freightliner and Sterling heavy trucks and related operating systems for the Solid Waste Services Department and Transportation Department. Currently the Transportation Department has three additional units on order for the Street Maintenance Division. § Charlotte Truck Center is the sole factory authorized dealer and distributer of Freightliner and Sterling Truck warranty and non-warranty repair and replacement original equipment manufacturer parts and service for the Charlotte service area. § Freightliner and Sterling dealers and distributors are required by the manufacturer to maintain existing warranties, parts standardization, reliable supply chains, factory support, service methods, and training. § Annual expenditures under the contract are estimated to be $450,000. Charlotte Business INClusion This is a sole source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Management & Financial Services Operating Budget City of Charlotte Page 58 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 63. Vactor, Elgin, and ProPatch Truck Parts and Services Action: A. Approve the purchase of Vactor, Elgin, and ProPatch original equipment manufacturer replacement and repair parts and services authorized by the sole source exemption of G.S. 143-129(e)(6), B. Approve a contract with Public Works Equipment for the purchase of original equipment manufacturer replacement and repair parts and services for an initial term of three years, and C. Authorize the City Manager to extend the contract for two additional, one-year terms with possible price adjustments and to amend the contract consistent with the City’s business needs. Staff Resource(s): Chris Trull, Management & Financial Services Sole Source Exemption § G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when: - Performance or price competition are not available; - A needed product is available from only one source or supply; or - Standardization or compatibility is the overriding consideration. § Sole sourcing is necessary for this contract because there is only one supply source. § The City Council must approve purchases made under the sole source exception. Explanation § The City currently operates 33 units of Vactor, Elgin, and ProPatch and related operating systems for Solid Waste Services and Transportation Street Maintenance Divisions with an additional three units on order for the Street Maintenance Division. § Public Works Equipment is the sole Factory Authorized Dealer and Distributor of Vactor, Elgin, and ProPatch warranty and non-warranty repair and replacement original equipment manufacturer parts and services for the Charlotte, NC service area. § Vactor, Elgin, and ProPatch dealers and distributors are required by the manufacturer to maintain existing warranties, parts standardization, reliable supply chains, factory support, service methods, and training. § Annual expenditures under the contract are estimated to be $300,000. Charlotte Business INClusion This is a Sole Source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Management & Financial Services Operating Budget..Attachments City of Charlotte Page 59 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 64. International Truck Parts and Services Action: A. Approve the purchase of International Original Equipment Manufacturer Truck replacement and repair parts and services authorized by the sole source exemption of G.S. 143-129(e)(6), B. Approve a contract with Rush Truck Center for the purchase of International original equipment manufacturer Truck replacement and repair parts and services for an initial term of three years, and C. Authorize the City Manager to extend the contract for two additional, one-year terms with possible price adjustments as deemed reasonable and appropriate by the City Manager. Staff Resource(s): Chris Trull, Management & Financial Services Sole Source Exemption § G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when: - Performance or price competition are not available; - A needed product is available from only one source or supply; or - Standardization or compatibility is the overriding consideration. § Sole sourcing is necessary for this contract because there is only one supply source. § The City Council must approve purchases made under the sole source exception. Explanation § The City currently operates 122 units of International heavy trucks and related operating systems for Solid Waste Services and Transportation Street Maintenance Divisions with additional units planned for purchase. § Rush Truck Center is the sole Factory Authorized Dealer and Distributor of International Truck warranty and non-warranty repair and replacement original equipment manufacturer parts and service for the Charlotte, NC service area. § International dealers and distributors are required by the manufacturer to maintain existing warranties, parts standardization, reliable supply chains, factory support, service methods and training. § Annual expenditures under the contract are estimated to be $400,000. Charlotte Business INClusion: This is a Sole Source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). Fiscal Note Funding: Fleet Management Operating Budget City of Charlotte Page 60 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 65. Bus Maintenance Parts Action: A. Award a unit price contract to the lowest responsive bidder Carolina Powertrain for the purchase of alternators and voltage regulators for a three-year term, B. Award a unit price contract to the lowest responsive bidder TruckPro for the purchase of brake drums, metal shoe linings, and brake chambers for a three-year term, C. Award a unit price contract to the lowest responsive bidder Mohawk Manufacturing and Supply for the purchase of wheel seals and slack adjusters for a three-year term, D. Award a unit price contract to the lowest responsive bidder MHC Kenworth for the purchase of other bus maintenance parts, including wheel studs, S-Cams, bearings, races, and lug nuts for a three-year term, and E. Authorize the City Manager to renew the contracts for up to two, one-year terms with possible price adjustments and to amend the contracts consistent with the City’s business needs and the purpose for which the contracts were approved. Staff Resource(s): Larry Kopf, CATS Edward Pullan, CATS Explanation § Various parts are required for the ongoing maintenance and repair of the CATS bus fleet. § On May 8, 2015, CATS issued an Invitation to Bid; seven bids were received from interested providers. § Multiple contracts allow for award based on the lowest responsive bidder per product line. § Bus parts will be purchased on an as needed basis under the contract terms. The unit prices are set forth in the proposed contracts and are available upon request. § Annual expenditures for all four contracts are estimated to be $550,000. § Staff anticipates renewing the contracts for up to two additional, one-year terms at prices to be negotiated based on market conditions. Charlotte Business INClusion No subcontracting goals were established because there are no subcontracting opportunities. (Part B: Section 2.3 of the Charlotte Business INClusion Policy.) Fiscal Note Funding: CATS Operating Budget City of Charlotte Page 61 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 66. Safety Supplies Action: A. Award unit price contracts to the lowest responsive bidders for the purchase of Safety Supplies, for a term of one-year to the following vendors: 1. Northern Safety Co Inc., and 2. Korman Signs, and B. Authorize the City Manager to renew the contract for up to three additional, one year terms with possible price adjustments as deemed reasonable and appropriate by the City Manager. Staff Resource(s): Kay Elmore, Management & Financial Services Explanation § City departments routinely purchase safety supplies for daily operations including but not limited to Personal Protective Equipment, such as safety vests and hard hats for use in field operations as well as Traffic Control devices such as signs and cones to ensure safety of the public and staff. § Traffic Control signs are required for any work occurring within the right of way and provide communication to motorists, cyclists and pedestrians to increase the safety of both citizens and workers. § On May 5, 2015, an Invitation to Bid was issued for safety supplies; eight bids were received by interested service providers. The bids were evaluated and awarded by category (i.e. Personal Protection Equipment and Traffic Control). § Northern Safety Co. Inc. is the lowest responsive bidder for personal protective equipment, and Korman Signs is the lowest responsive bidder for traffic control devices. § The unit prices, set forth in the proposed contract, are available upon request. § The resulting contracts are available for use citywide. § The combined annual expenditures are estimated to be $670,000. Charlotte Business INClusion No subcontracting goals were established because there are no subcontracting opportunities (Part B: Section 2.3 of the Charlotte Buinsess INClusion Policy). Fiscal Note Funding: Various Departments’ Operating Budgets City of Charlotte Page 62 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 67. Exchange of Right-of-Way along the LYNX Light Rail Corridor with Solis Southline/Terwilliger Pappas Action: A. Approve a resolution authorizing an exchange of right-of-way between the City of Charlotte and Solis Southline/Terwilliger Pappas or its successors and assigns (Property Owner) involving Tax Identification #12104114, #12104122, and #12104124, and B. Authorize the City Manager to execute all necessary documents to complete the exchange of right-of-way between the City of Charlotte and Property Owner. Staff Resource(s): Tina M. Votaw, CATS Tim O’Brien, Engineering & Property Management Explanation § The Property Owner proposes to build a 300-unit apartment complex in the South End at the corner of Remount Road and South Boulevard between the East/West Light Rail Station and the New Bern Light Rail Station. § In order to construct the apartment complex, the Property Owner requires use of some of the City’s unused “excess” rail right-of-way. § The City’s ownership of the LYNX right-of-way between Scaleybark and Uptown is known as a “charter right-of-way”, which is similar to an easement right. The adjacent property owners possess ownership of the underlying “fee simple” title, subject to the City’s use as a rail corridor. § The charter right-of-way in this particular section of the rail corridor is approximately 130 feet wide, which is wider than necessary for rail purposes. Therefore, the City issued an Administrative Policy which states that the City will generally retain approximately 70 feet in width for rail purposes while allowing the excess right-of-way of approximately 30 feet in width on either side to be used by the adjacent Property Owner. Alternatively, the excess right of way may be retained by the City as buffer if needed. § Consistent with previous City Council actions, the City may release its charter rights on the excess right-of-way to facilitate transit supportive redevelopment. § The Property Owner will exchange property rights with the City for full and fair consideration as required by law. Fair consideration can be any combination of cash, real, or personal property and other benefits. § The methodology for valuing the excess right-of-way was established by the City’s appraisal staff. The percentages below are applied to the contract price. - The excess right-of-way being conveyed by the City to the Property Owner has a higher value (50%) because it is outside the active rail corridor and can be incorporated into the proposed adjacent development and, - The right-of-way being conveyed by the Property Owner to the City has a lesser value (10%) since it has already been used as part of the light rail corridor. § The right-of-way exchange includes three important elements: 1. The exchange only occurs when the Property Owner’s proposed redevelopment is consistent with the City’s vision; Council approved station area plans and zoning ordinances. 2. The right-of-way ends up in the hands of the party that will maximize its use, i.e., the City will have full ownership of the active rail corridor, while the adjacent Property Owner obtains the excess right of way unrestricted by the charter right of way and, 3. The exchange results in substantial redevelopment along the light rail corridor. The assessed value of the new developments that have been constructed and, therefore, the property tax revenues received by the City and the County are typically 5-10 times greater than the assessed value of the property prior to the right-of-way exchange and subsequent redevelopment. City of Charlotte Page 63 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 § Due to redevelopment of the site into the apartment complex, property tax revenues to the City will increase from approximately $32,000/year to approximately $150,000/year. § The exchange is recommended for the following reasons: - The City will receive approximately $221,350 in property and improvements including: o Deed to approximately 15,214 square feet, valued at approximately $51,350. o Improvements of approximately $95,000 consisting of ballast rail curb adjacent to the northbound light rail track and streetscape improvements including decorative fence and new multi-use sidewalk along the rail corridor to facilitate access to the light rail stations and further complete the Rail Trail adjacent to the rail corridor. o The Property Owner will be required to maintain all of the new streetscape improvements, including the new multi-use path, landscaping, irrigation, fencing, etc. at a cost of approximately $7,500/annually or approximately $75,000 over 10 years. - Property Owner will receive from the City: o Deed to approximately 12,661 square feet of excess right-of-way, valued at approximately $213,650, along with a License Agreement that will require the Property Owner to construct as well as maintain the new streetscape improvements as described above. Background The Transit Station Area Plans approved by the City Council define development standards for property adjacent to the rail corridor and envision that excess right-of-way will be incorporated into adjacent transit supportive development. RCA-062215-AttachmentCATSCouncil Resolutionexchangeoflandrights City of Charlotte Page 64 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 68. LYNX Blue Line Extension - Plant Growing Services Action: Approve contracts with the following companies for plant growing services: 1. Latham’s Nursery, $228,900, 2. Taylor’s Nursery, $145,100, 3. H&H Nursery, $51,800, and 4. SS Nursery, $31,000. Staff Resource(s): Danny Rogers, CATS Kourtnie Vincent, Engineering & Property Management Explanation § The northern half of the LYNX Blue Line Extension (BLE) project includes reconstruction of four miles of North Tryon Street, creating more than 13 acres of median between the light rail tracks and North Tryon Street. Landscaping is required for these 13 acres. § Due to the quantity of plant material required, contracting for plant growing services in advance is needed to ensure that an adequate number of plants will be available in accordance with the BLE project schedule. § On March 30, 2015, the City issued a Request for Proposal (RFP) for plant growing services. In response to the RFP, the City received four proposals from interested service providers. § City staff evaluated the proposals and recommends all four firms be awarded contracts for growing a portion of the total amount of plant material required for the BLE project. § The scope of these contracts includes growing and supplying the plant material per BLE project specifications and nursery best management practices. § A future Invitation to Bid will be issued for the installation and warranty of the plant material. Disadvantage Business Enterprise Pursuant to Department of Transportation DBE Program, subpart C, no DBE utilization goal was set for this solicitation and resultant due to no/limited subcontracting opportunities Fiscal Note Funding: Transit Community Investment Plan City of Charlotte Page 65 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 69. CATS Rail Corridor Maintenance - Design Services Action: A. Approve professional service contracts with the following companies for engineering and design services for an initial term of three years: - STV Incorporated, and - Parsons Brinkerhoff, Inc., and B. Authorize the City Manager to renew the contracts for one additional, three-year term with possible price adjustments and to amend the contracts consistent with the City’s business needs and purpose for which the contracts were approved. Staff Resource(s): Allen Smith III, CATS Explanation § CATS is responsible for maintaining approximately 9.6 miles of right-of-way along the LYNX Blue Line, which includes preventive maintenance, corrective maintenance, emergency repairs and routine repairs along the rail corridor. § The companies will be paid the unit prices and hourly rates set forth in the contracts, which are available upon request. § Estimated contract expenditures for both contracts are $100,000 annually/$300,000 in the aggregate over the three-year term. § On May 1, 2015, the City issued a Request for Qualifications for engineering and design services; three proposals were received. § City staff evaluated the proposals and recommends the top two highest ranked firms for the services. § The engineering consultants will provide analysis and design services for various maintenance and infrastructure repairs. § Specific tasks associated with these services will include, but are not limited to the following: - Site assessments; - Recommendations of infrastructure improvements; - Preparation of construction specifications, drawings, and estimates; and - Design services during construction. § Task orders will be assigned to the engineering consultants on an as needed basis. Disadvantaged Business Enterprise Because federal funds are being requested, the contracts are required to adhere to Federal DBE requirements. DBE goals will be established for each individual task order as it is developed. Fiscal Note Funding: CATS Community Investment Plan and CATS Operating Budget.. City of Charlotte Page 66 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 70. Computer-Aided Dispatch System Upgrade Action: A. Approve contract amendment #1 with Intergraph Corporation in the estimated amount of $190,000, for services to upgrade the Computer-Aided Dispatch System, and B. Authorize the City Manager to expend an additional estimated amount of $350,000 for ancillary hardware, software, and services to support the upgrade from various vendors. Staff Resource(s): Lisa Goelz, Police Crystal Cody, Police Explanation § On December 13, 2010, the City Council approved a Master Contract for System Integration with Intergraph Corporation to upgrade the Charlotte-Mecklenburg Police Department (CMPD) Computer-Aided Dispatch System. § CMPD uses the system to manage 911 call entry and dispatch for CMPD officers. § The last upgrade was completed in February 2011. The system must be upgraded every three to four years in order to continue working optimally to support emergency call taking and dispatch activities. § Intergraph Corporation will provide technical services to upgrade the system, training for the new software versions, and on-site upgrade support. § CMPD will purchase new 911 center computer workstations and servers (included in the $350,000) to maintain optimal performance and minimize downtime during the upgrade. This equipment will be procured based on City Procurement policy. § The new contract value including the amendment is $903,655. The term for the amendment will be one year to complete technical services for the upgrade. Fiscal Note Funding: 911 Fund Charlotte Business INClusion No subcontracting goal was established for this contract amendment because there are no subcontracting opportunities (Part D: Section 6 of the Charlotte Business INClusion Policy). City of Charlotte Page 67 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 71. Support to the District Attorney’s Office - Property Crime Unit Action: Authorize the City Manager to negotiate and execute the Fiscal Year 2016 contract in the estimated amount of $321,000 with the District Attorney and the North Carolina Administrative Office of the Courts for continued funding of five positions. Staff Resource(s): Greg Crystal, Police Explanation § Since 2008, the City has provided annual funding, via the Charlotte-Mecklenburg Police Department’s (CMPD) operating budget, to the District Attorney to support two Assistant District Attorneys and three Victim/Witness Legal Assistants from the North Carolina Administrative Office of the Courts. § The positions are used to address the backlog of cases in Mecklenburg County and support CMPD crime-fighting initiatives. § Funding for the District Attorney’s Office was discussed during the FY2016 budget development process and approved by Council on June 8, 2015 as part of the Budget Adoption action. While funding has been approved by Council, this action formalizes the agreement. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Police Operating Budget City of Charlotte Page 68 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 72. Employee Health Clinics Action: A. Authorize the City Manager to negotiate and execute a three-year contract and future contract amendments (including performance guarantees) with OurHealth to administer employee health clinics for City employees and non-Medicare-eligible retirees and their dependents, effective January 1, 2016, and B. Authorize the City Manager to extend the contract for an additional two, one-year terms. Committee Chair: Council member Greg Phipps Staff Resource(s): Cheryl Brown, Human Resources Explanation § The City has aggressively managed healthcare costs including: plan design changes; increase promotion of generic drugs; and implementation of a wellness program. § Healthcare costs continue to rise, with unmanaged health and chronic conditions as the primary drivers. - 55% of members are not compliant with a routine physical. - 75% of members identified with diabetes are not compliant with at least one of the chronic care guidelines for diabetes. - 11% of members had an emergency room visit in the last 12 months. - 42% of those visits were non-emergent and could have been treated by a Primary Care Physician (PCP). o Average cost an emergency room visit: $1,845 o Average cost of a PCP visit: $211 § Implementing employee health clinics will result in the following benefits to both the City and employees/retirees and dependents: - City benefits, o Control medical cost increases; o Redirect care from expensive and inappropriate settings; o Improve specialty referrals; o Improve employee productivity; o Enhance employee recruitment and retention efforts; o Improve a culture of health; and o Support employee morale. - The health clinics can provide the following benefits to employees, retirees, and dependents: o Receive good and often better access to affordable/quality care and medications; o Improve management of chronic conditions and improved health outcomes; o Conveniently located near work and home sites; o Enhance patient experience; o Reduce lost work time; and o Member cost savings. § The OurHealth model initially implements five medical clinics strategically located throughout the City. § Staffed by physicians and nurses, clinics will provide primary care services to employees, non-Medicare-eligible retirees, and dependents at no cost to the member. City of Charlotte Page 69 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 § The use of the clinic is voluntary, and employees are free to retain their primary care provider (PCP) and use the clinic in conjunction with their PCP. § The clinics will begin operation on January 1, 2016. Selection Process § On April 28, 2014, the City issued a Request for Proposal (RFP) for employee health clinic services. In response to the RFP, the City received nine proposals from interested service providers. § The project team, consisting of staff from the Human Resources Department, Willis Benefits Consultants, and the City Manager’s Office evaluated the proposals and recommends awarding the contract to OurHealth as the service provider best meeting the City’s needs in terms of qualifications, experience, and cost. Budget Committee Discussion § On June 29, 2015, Human Resources staff presented the proposed Employee Health Clinic recommendations to the Budget Committee. § On June 29, 2015, the Committee voted unanimously to approve the recommendations to the full City Council (Phipps, Driggs, Kinsey, Lyles, and Mayfield). Performance Guarantees · The OurHealth contract will include performance guarantees, including: o Annual cap in medical and pharmacy trend rates; o Health improvement and improvement in health outcomes; o Implementation metrics; o Member satisfaction; and o Member utilization. Charlotte Business Inclusion No subcontracting goals were established because there are no direct subcontracting opportunities. (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). However, the City will negotiate with OurHealth for MWSBE participation to be included as a part of the operational activity of the clinics. OurHealth has identified MWSBE vendors in the following scopes of work: § Architectural Services § Construction § Door/Window Graphics § Electrical/Wiring Services § Engineering § Facilities Maintenance § Interior Design § Janitorial Services § Security/Alarm Services § Signage § Technology Support Services Fiscal Note Funding: Funded within the overall health insurance budget through the Self-Insurance Fund ClinicPresentationCityCouncilJuly27_2015 City of Charlotte Page 70 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 73. Budget and Performance Management Software Maintenance and Subscription Action: A. Approve a two-year maintenance service contract with Obero, Inc. for Clarity and Cognos Disclosure Management software for an annual amount of $113,971.99 (two year total of $227,973.98), and B. Authorize the City Manager to approve up to two additional, one-year renewals with possible price adjustments at the time of renewal based on satisfactory performance and current support needs of the system. Staff Resource(s): David North, Innovation & Technology Eric Hershberger, Management & Financial Services Explanation § On August 25, 2014, the City Council approved the software maintenance and subscription contracts with IBM for Clarity and Cognos Disclosure Management (CDM) for $99,355 annually. § Clarity is the City’s budget and performance management system, which allows the City to produce and monitor the Operating and Capital budgets. § The Office of Strategy & Budget uses CDM to produce the citywide Strategic Operating Plan. § IBM in conjunction with Obero, Inc. has approached the City to offer a Dual Entitlement Renewal Program for the software maintenance and subscription agreement for Clarity. § The new agreement, which is $14,616.99 per year greater than what was previously approved by the City Council, will preserve several future opportunities: - Clarity is becoming a legacy software system, and IBM will discontinue support within the next four to five years. This agreement will allow the City dual entitlement on the software licenses for both Clarity and TM1 (IBM’s primary budgeting and performance management system). - IBM would provide $40,000 in lab design services to assist in determining if TM1 would be an appropriate replacement to Clarity. - After evaluating other Budget solutions, if the City selects TM1, Obero and IBM would migrate existing Clarity and CDM server environments to a cloud environment, which would save the City the cost of replacing and maintaining the existing servers. § CDM will remain unchanged. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Innovation & Technology Operating Budget City of Charlotte Page 71 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 74. Customer Relationship Management - Code Enforcement Case Management System Action: A. Approve a professional services contract with RMSource, Inc. in the amount of $217,810 for the continued development of Microsoft Dynamics CRM, a new code enforcement case management system, B. Approve a three-year contract for annual service support from RMSource, Inc. not to exceed $27,600 per year, and C. Authorize the City Manager to extend the service support contract for an additional one-year term. Staff Resource(s): Jeffrey Stovall, Innovation & Technology Patrick Mumford, Neighborhood & Business Services Explanation § In 2012, Neighborhood & Business Services (NBS) began exploring replacement options for CityView, a case management system for Code Enforcement (i.e. health and sanitation, minimum housing code, non-residential building code, zoning, and graffiti), which is currently on a platform that is no longer supported. § In consultation with Innovation & Technology, NBS undertook a business assessment and evaluation process resulting in the identification of Microsoft Dynamics Customer Relationship Management (CRM) as a potential replacement for CityView. Previously, the City had used the CRM tool to assist with special event permitting during the 2012 Democratic National Convention. § On March 25, 2013, the City Council approved $139,372 for web hosting services for CRM as part of the initial scoping process. Along with the hosting fees, an additional $68,000 has been paid toward preliminary development work. § At this time, additional customized development on CRM is necessary to ensure adherence with Code Enforcement procedures as determined by local and state statutes, and to further enhance the management of compliance letters, photo storage, and other documentation. § RMSource has provided development services related to CRM as well as other applications that interface with 311 systems. The firm is familiar with the City’s information technology environment and security protocols, and it currently provides hosting services for Charmeck.org, the City and County website. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Technology Project Evaluation Team Funds and Neighborhood & Business Services Operating Budget City of Charlotte Page 72 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 75. Collection Agency Services Action: A. Authorize the City Manager to negotiate and approve a contract with Professional Recovery Services, Inc. for collection agency services for an initial term of three years, and B. Authorize the City Manager to renew the contract for up to two additional, one-year terms and to amend the contract consistent with the City’s business needs and the purpose for which the contract was approved. Staff Resource(s): Susan Walker, Management & Financial Services Explanation § Management & Financial Services requires collection agency services for past due semi-annual accounts for storm water services, past due invoices related to code enforcement, Charlotte Water utility tap liens, and other services. § In February 2013, the Financial Services Division began submitting past due invoices primarily related to code enforcement to the company for collection. § In January 2014, the Revenue Division began a pilot program for submitting active semi-annual storm water accounts to the company for collection. § The company has met or exceeded expectations during the initial years in which the collections services for these account types have been piloted. Management & Financial Services’ staff recommends it is in the City’s best interests to enter into a term contract to continue the services. The company has collected approximately 35% of Revenue Division delinquent accounts and approximately 20% of Financial Services Division delinquent accounts. The industry average is 16- 18% for collecting on these types of delinquent accounts. § The company will electronically submit, update, and process payments as well as submit semi-annual Storm Water accounts to and from the clearinghouse for the NC Debt Setoff Program. § The Company will be paid 18% of gross funds collected. There is no charge for services related to the NC Debt Setoff Program and no fee is paid to the company for debts collected through debt setoff. § The estimated contract expenditures are $100,000 annually. Charlotte Business INClusion No subcontracting goal was established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy). Fiscal Note Funding: Management & Financial Services Operating Budget City of Charlotte Page 73 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 76. Refund of Property and Business Privilege License Taxes Action: A. Adopt a resolution authorizing the refund of property taxes assessed through clerical or assessor error in the amount of $10,835.40, and B. Adopt a resolution authorizing the refund of business privilege license payments in the amount of $129.96. Staff Resource(s): Teresa Smith, Management & Financial Services Explanation Notification of Property Tax and Business Privilege License Tax refunds due to clerical or assessor error are provided to the City by Mecklenburg County. Pearson Review Update § In accordance with the ordinance approved by the City Council on August 25, 2014, and the North Carolina law, a list of refunds, which have been paid since the last City Council Business Meeting as a result of the Pearson Review, is available at the City Clerk’s Office. § The amount of Pearson Review refunds paid since the last City Council Business Agenda Meeting on June 8, 2015, totaled $165,575.42. Fiscal Note Funding: Not Applicable Property Tax Refund Requests and Resolution BPLT Refund Requests and Resolution 77. Meeting Minutes Action: A. Approve the titles, motions, and votes reflected in the Clerk’s record as the minutes of: - May 18, 2015: Budget Workshop, - May 18, 2015: Zoning Meeting, - May 26, 2015: Straw Votes, and - June 1, 2015: Workshop, B. Amend Item No. 1 on the previously adopted minutes of the October 15, 2012, Zoning Meeting to correct the Petition Number listed as 2008-31 to Petition No. 2008-039, and C. Amend Item No. 21 on the previously adopted minutes of the March 17, 2014, Zoning Meeting to correct the Petition Number listed as 2014-076 to Petition No. 2014-007. Staff Resource(s): Bianca Payne, City Clerk’s Office City of Charlotte Page 74 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 In Rem Remedy: 215 Jones Street 78. Action: Adopt an Ordinance authorizing the use of In Rem Remedy to demolish and remove the structure at 215 Jones Street (Neighborhood Profile Area 88). For In Rem Remedy, the public purpose and policy are outlined here. Public Purpose: - Eliminate a blighting influence. - Reduce the proportion of substandard housing. - Increase tax value of property by making land available for potential infill housing development. - Support public safety initiatives. Policy: Housing & Neighborhood Development and Community Safety The In Rem Remedy items were initiated from 3 categories: 1. Public Safety - Police and/or Fire Dept. 2. Complaint - petition by citizens, tenant complaint or public agency referral 3. Field Observation - concentrated code enforcement program The In Rem Remedy item is listed below by category identifying the street address and neighborhood. Public Safety: 215 Jones Street 215 Jones Street.pdf City of Charlotte Page 75 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 79. Action: Adopt an Ordinance authorizing the use of In Rem Remedy to demolish and remove the structure at 1608 LaSalle Street (Neighborhood Profile Area 374). For In Rem Remedy, the public purpose and policy are outlined here. Public Purpose: - Eliminate a blighting influence. - Reduce the proportion of substandard housing. - Increase tax value of property by making land available for potential infill housing development. - Support public safety initiatives. Policy: Housing & Neighborhood Development and Community Safety The In Rem Remedy items were initiated from 3 categories: 1. Public Safety - Police and/or Fire Dept. 2. Complaint - petition by citizens, tenant complaint or public agency referral 3. Field Observation - concentrated code enforcement program The In Rem Remedy item is listed below by category identifying the street address and neighborhood. Field Observation: 1608 LaSalle Street 1608 LaSalle St.pdf City of Charlotte Page 76 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 In Rem Remedy: 3120 A&B Tuckaseegee Road 80. Action: Adopt an Ordinance authorizing the use of In Rem Remedy to demolish and remove the structure at 3120 A&B Tuckaseegee Road (Neighborhood Profile Area 5). For In Rem Remedy, the public purpose and policy are outlined here. Public Purpose: - Eliminate a blighting influence. - Reduce the proportion of substandard housing. - Increase tax value of property by making land available for potential infill housing development. - Support public safety initiatives. Policy: Housing & Neighborhood Development and Community Safety The In Rem Remedy items were initiated from 3 categories: 1. Public Safety - Police and/or Fire Dept. 2. Complaint - petition by citizens, tenant complaint or public agency referral 3. Field Observation - concentrated code enforcement program The In Rem Remedy item is listed below by category identifying the street address and neighborhood. Field Observation: 3120 A&B Tuckaseegee Road 3120 AB Tuckaseegee Rd.pdf City of Charlotte Page 77 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 In Rem Remedy: 3163 Maury Street 81. Action: Adopt an Ordinance authorizing the use of In Rem Remedy to demolish and remove the structure at 3163 Maury Street (Neighborhood Profile Area 6). For In Rem Remedy, the public purpose and policy are outlined here. Public Purpose: - Eliminate a blighting influence. - Reduce the proportion of substandard housing. - Increase tax value of property by making land available for potential infill housing development. - Support public safety initiatives. Policy: Housing & Neighborhood Development and Community Safety The In Rem Remedy items were initiated from 3 categories: 1. Public Safety - Police and/or Fire Dept. 2. Complaint - petition by citizens, tenant complaint or public agency referral 3. Field Observation - concentrated code enforcement program The In Rem Remedy item is listed below by category identifying the street address and neighborhood. Field Observation: 3163 Maury Street 3163 Maury St.pdf City of Charlotte Page 78 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 In Rem Remedy: 2100 Edison Street 82. Action: Adopt an Ordinance authorizing the use of In Rem Remedy to demolish and remove the structure at 2100 Edison Street (Neighborhood Profile Area 363). For In Rem Remedy, the public purpose and policy are outlined here. Public Purpose: - Eliminate a blighting influence. - Reduce the proportion of substandard housing. - Increase tax value of property by making land available for potential infill housing development. - Support public safety initiatives. Policy: Housing & Neighborhood Development and Community Safety The In Rem Remedy items were initiated from 3 categories: 1. Public Safety - Police and/or Fire Dept. 2. Complaint - petition by citizens, tenant complaint or public agency referral 3. Field Observation - concentrated code enforcement program The In Rem Remedy item is listed below by category identifying the street address and neighborhood. Public Safety: 2100 Edison Street 2100 Edison St.pdf 83. Aviation Property Transaction - 4228 Rockwood Road Action: Approve the following property acquisition. § Project: Aviation Master Plan § Owner(s): Phyllis Marie Brown § Property Address: 4228 Rockwood Road § Total Parcel Area: 1.27 acres § Property to be acquired in Fee: 1.27 acres in Fee Simple § Property to be acquired by Easements: N/A § Structures/Improvements to be impacted: Single-family Residence § Landscaping to be impacted: Trees and shrubs § Zoned: R-3 § Use: Single-family § Tax Code: 113-161-11 § Purchase Price: $152,000 § Council District: N/A City of Charlotte Page 79 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 84. Aviation Property Transaction - 7712 Cooper Lane Action: Approve the following property acquisition. Project: Aviation Master Plan Owner(s): Nicolas & Amanda Bratnick Property Address: 7712 Cooper Lane Total Parcel Area: .77 acres Property to be acquired in Fee: .77 acres in Fee Simple Property to be acquired by Easements: N/A Structures/Improvements to be impacted: Single-family Landscaping to be impacted: Trees and shrubs Zoned: R-3 Use: Single-family Tax Code: 141-104-07 Purchase Price: $160,000 Council District: 3 85. Aviation Property Transaction - 9508 and 9524 Dorcas Lane Action: Approve the following property acquisition. Project: Aviation Master Plan Owner(s): Kathryn Lacy Adkins Property Address: 9508 & 9524 Dorcas Lane Total Parcel Area: 1.37 acres Property to be acquired in Fee: 1.37 acres in Fee Simple Property to be acquired by Easements: N/A Structures/Improvements to be impacted: Single-family Landscaping to be impacted: Trees and shrubs Zoned: R-3 Use: Single-family Tax Code: 141-261-71 and 141-261-70 Purchase Price: $300,000 Council District: N/A City of Charlotte Page 80 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 86. Aviation Property Transaction - 5614 Wilkinson Boulevard Action: Approve the following property acquisition. Project: Aviation Master Plan Owner(s): Wells Fargo Bank, N.A. Executor of the Estate of Kathryn Beaty Property Address: 5614 Wilkinson Boulevard Total Parcel Area: 1.229 acres Property to be acquired in Fee: 1.229 acres in Fee Simple Property to be acquired by Easements: N/A Structures/Improvements to be impacted: Commercial Building Landscaping to be impacted: N/A Zoned: I-2 Use: Commercial Tax Code: 061-263-01 Purchase Price: $725,000 Council District: 3 87. Aviation Property Transaction - 8420 Tuckaseegee Road Action: Approve the following property acquisition. Project: Aviation Master Plan Owner(s): Keith & Judi Bumgarner Property Address: 8420 Tuckaseegee Road Total Parcel Area: 2.79 acres Property to be acquired in Fee: 2.79 acres in Fee Simple Property to be acquired by Easements: N/A Structures/Improvements to be impacted: Single-family Landscaping to be impacted: Trees and shrubs Zoned: R-3 Use: Single-family Tax Code: 055-381-47 Purchase Price: $215,000 Council District: 3 City of Charlotte Page 81 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 88. Property Transactions - Lilly Mill Drainage Improvements, Parcel #14 Action: Approve the following Acquisition: Lilly Mill Drainage Improvements, Parcel #14 Project: Lilly Mill Drainage Improvements, Parcel #14 Program: Flood Control Owner(s): Brian Parker and Allison O. Parker Property Address: 2419 Merrywood Road Total Parcel Area: 52,067 sq. ft. Property to be acquired by Easements: 8,059 sq. ft. (.185 ac.) in Storm Drainage Easement, plus 1,147 sq. ft. (.026 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Trees and various plantings Zoned: R-3 Use: Single-family Residential Tax Code: 173-254-03 Purchase Price: $11,300 Council District: 6 89. Property Transactions - Lilly Mill Drainage Improvements, Parcel #17 Action: Approve the following Acquisition: Lilly Mill Drainage Improvements, Parcel #17 .Body Project: Lilly Mill Drainage Improvements, Parcel #17 Program: Flood Control Owner(s): Charles W. Hicks and Christine Anne Hicks Property Address: 2100 Wittstock Drive Total Parcel Area: 22,125 sq. ft. Property to be acquired by Easements: 9,023 sq. ft. (.207 ac.) in Storm Drainage Easement, plus 1,474 sq. ft. (.034 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Trees Zoned: R-12 Use: Single-family Residential Tax Code: 173-301-26 Purchase Price: $47,400 Council District: 1 City of Charlotte Page 82 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 90. Property Transactions - Lyon Court Storm Drainage Improvements, Parcels #85, 86, and #88 Action: Approve the following Acquisition: Lyon Court Storm Drainage Improvements, Parcels #85, #86, and #88 Project: Lyon Court Storm Drainage Improvement Project, Parcel #85, #86 and #88 Program: Flood Control Owner(s): Jupiter Group, LLC Property Address: 2221 Central Avenue Total Parcel Area: 45,475 sq. ft. Property to be acquired in Fee: 932 sq. ft. (.021 ac.) in Fee Simple within Existing Right-of-Way Property to be acquired by Easements: 4,013 sq. ft. (.092 ac.) in Storm Drainage Easement, plus 6,601 sq. ft. (.152 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Various plantings Zoned: B-1 Use: Commercial Tax Code: 095-071-03, 095-071-04 and 095-081-06 Purchase Price: $125,250 Council District: 1 91. Property Transactions - Lyon Court Drainage Improvement Project, Parcel #102 Action: Approve the following Acquisition: Lyon Court Drainage Improvement Project, Parcel #102 Project: Lyon Court Storm Drainage Improvement Project, Parcel #102 Program: Flood Control Owner(s): James H. Spann, Jr. Property Address: 1547 Tippah Park Court Total Parcel Area: 10,678 sq. ft. Property to be acquired by Easements: 4,216 sq. ft. (.097 ac.) in Storm Drainage Easement, plus 510 sq. ft. (.012 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: Fence Landscaping to be impacted: Trees Zoned: UR-2 Use: Single-family Residential Tax Code: 095-071-31 Purchase Price: $25,000 Council District: 1 City of Charlotte Page 83 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 92. Property Transactions - Mallard Creek 9804 8” Sanitary Sewer, Parcel #1 Action: Approve the following Acquisition: Mallard Creek 9804 8” Sanitary Sewer, Parcel #1 Project: Mallard Creek 9804 8" Sanitary Sewer, Parcel #1 Owner(s): William Franklin Cook, II and Shelley M. Wilfong Property Address: 9518 Mallard Creek Road Total Parcel Area: 91,287 sq. ft. Property to be acquired by Easements: 1,452 sq. ft. (.033 ac.) in Sanitary Sewer Easement, plus 1,695 sq. ft. (.039 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Trees Zoned: R-3 Use: Rural Homesite Tax Code: 047-152-12 Purchase Price: $11,925 Council District: 4 93. Property Transactions - Mallard Creek 9804 8” Sanitary Sewer, Parcel #2 Action: Approve the following Condemnation: Mallard Creek 9804 8” Sanitary Sewer, Parcel #2 Project: Mallard Creek 9804 8" Sanitary Sewer, Parcel #2 Owner(s): Thomas Andrew Thore, Jr., William Steven Thore, Connie Thore Knight, Philiip Anthony Thore And Robert Paige Thore and any other parties of interest Property Address: 9602 Mallard Creek Road Total Parcel Area: 84,683 sq. ft. Property to be acquired by Easements: 2,745 sq. ft. (.063 ac.) in Sanitary Sewer Easement, plus 1,546 sq. ft. (.035 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Trees Zoned: R-3 Use: Rural Homesite Tax Code: 047-152-11 Appraised Value: $10,000 Property Owner’s Counteroffer: $11,038 Recommendation: To obtain clear title and avoid delay in the project schedule, staff recommends proceeding to condemnation. Council District: 4 City of Charlotte Page 84 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 94. Property Transactions - Mallard Creek 9804 8” Sanitary Sewer, Parcel #3 and #4 Action: Approve the following Acquisition: Mallard Creek 9804 8” Sanitary Sewer, Parcel #3 and #4 Project: Mallard Creek 9804 8" Sanitary Sewer, Parcel #3 and #4 Owner(s): Piedmont Unitarian Universalist Church, Inc. Property Address: 9704 And 9728 Mallard Creek Road Total Parcel Area: 281,536 sq. ft. Property to be acquired by Easements: 9,916 sq. ft. (.228 ac.) in Sanitary Sewer Easement, plus 5,598 sq. ft. (.129 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: Signs Landscaping to be impacted: Trees Zoned: R-3 Use: Rural Homesite Tax Code: 047-152-10 and 047-152-25 Purchase Price: $45,000 Council District: 4 95. Property Transactions - Johnston Oehler Farm to Market, Parcel #23.1 Action: Approve the following Condemnation: Johnston Oehler Farm to Market, Parcel #23.1 Project: Johnston Oehler Farm to Market, Parcel #23.1 Owner(s): Orville Oehler Thompson, Teddie Clinton Thompson and Richard Kirk Thompson and any other parties of interest Property Address: 3716 Johnston Oehler Road Total Parcel Area: 113,074 sq. ft. Property to be acquired by Easements: 12,459 sq. ft. (.286 ac.) in Storm Drainage Easement Structures/Improvements to be impacted: None Landscaping to be impacted: None Zoned: R-3 Use: Single-family Residential - Rural Acreage Tax Code: 029-301-34 Appraised Value: $5,300 Property Owner’s Counteroffer: None Property Owner’s Concerns: The property owner is concerned with the design of the storm drainage area and the compensation amount. City’s Response to Property Owner’s Concerns: Staff agreed to redesign the storm drainage area. Outstanding Concerns: The property owner does not agree with compensation amount. Recommendation: To avoid delay in the project schedule, staff recommends proceeding to condemnation during which time negotiations can continue, mediation is available and if necessary, just compensation can be determined by the court. Council District: 4 City of Charlotte Page 85 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 96. Property Transactions - University Pointe Boulevard, Phase 1, Parcel #1 Action: Approve the following Condemnation: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #1 Project: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #1 Owner(s): Brit-Charlotte LLC and any other parties of interest Property Address: 8335 IBM Drive Total Parcel Area: 7,984,548 sq. ft. Property to be acquired in Fee: 9,797 sq. ft. (.225 ac.) in Fee Simple Property to be acquired by Easements: 337 sq. ft. (.008 ac.) in Storm Drainage Easement, plus 32,735 sq. ft. (.777 ac.) in Temporary Construction Easement, plus 3,676 sq. ft. (.059 ac.) in Utility Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Trees and bushes Zoned: RE-2 Use: Laboratory/Research Tax Code: 047-111-05 Appraised Value: $38,250 Property Owner’s Counteroffer: None Recommendation: We are currently waiting on signed documents but to avoid delay in the project schedule, staff recommends proceeding to condemnation during which time negotiations can continue, mediation is available and if necessary, just compensation can be determined by the court. Council District: 4 City of Charlotte Page 86 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 97. Property Transactions - University Pointe Boulevard, Phase 1, Parcel #3 Action: Approve the following Condemnation: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #3 Project: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #3 Owner(s): International Business Machines Corporation and any other parties of interest Property Address: IBM Drive Total Parcel Area: 3,232,152 sq. ft. Property to be acquired in Fee: 1,457 sq. ft. (.033 ac.) in Fee Simple Property to be acquired by Easements: 3,409 sq. ft. (.078 ac.) in Storm Drainage Easement, plus 20,687 sq. ft. (.475 ac.) in Temporary Construction Easement, plus 1 sq. ft. ( ac.) in Utility Easement Structures/Improvements to be impacted: None Landscaping to be impacted: None Zoned: RE-2 Use: Laboratory/Research Tax Code: 047-391-09 Appraised Value: $10,700 Property Owner’s Counteroffer: None Recommendation: We are currently waiting on signed documents but to avoid delay in the project schedule, staff recommends proceeding to condemnation during which time negotiations can continue, mediation is available and if necessary, just compensation can be determined by the court. Council District: 4 City of Charlotte Page 87 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 98. Property Transactions - University Point Boulevard, Phase 1, Parcel #5 Action: Approve the following Condemnation: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #5 Project: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #5 Owner(s): DDR Belgate LP and any other parties of interest Property Address: NWC Ikea Boulevard/University Pointe Boulevard Total Parcel Area: 683,892 sq. ft. Property to be acquired in Fee: 12,867 sq. ft. (.295 ac.) in Fee Simple Property to be acquired by Easements: 1,655 sq. ft. (.038 ac.) in Storm Drainage Easement, plus 15,849 sq. ft. (.364 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: None Zoned: CC Use: Commercial Tax Code: 047-461-01 Appraised Value: $38,450 Property Owner’s Counteroffer: None Recommendation: We are currently waiting on signed documents but to avoid delay in the project schedule, staff recommends proceeding to condemnation during which time negotiations can continue, mediation is available and if necessary, just compensation can be determined by the court. Council District: 4 City of Charlotte Page 88 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 99. Property Transactions - University Pointe Boulevard, Phase 1, Parcel #14 Action: Approve the following Condemnation, University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #14 Project: University Pointe Boulevard Phase 1 (South Bridge over I-85), Parcel #14 Owner(s): DDR Belgate LP and any other parties of interest Property Address: 8150 Ikea Boulevard Total Parcel Area: 763,493 sq. ft. Property to be acquired by Easements: 310 sq. ft. (.007 ac.) in Storm Drainage Easement, plus 6,904 sq. ft. (.158 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: Various plantings Zoned: CC Use: Commercial Tax Code: 047-461-06 Appraised Value: $15,100 Property Owner’s Counteroffer: None Recommendation: We are currently waiting on signed documents but to avoid delay in the project schedule, staff recommends proceeding to condemnation during which time negotiations can continue, mediation is available, and if necessary, just compensation can be determined by the court. Council District: 4 100. Property Transactions - Torrence Creek Tributary Trunk Sewer, Parcel #5 Action: Approve the following Acquisition, Torrence Creek Tributary Trunk Sewer, Parcel #5 Project: Torrence Creek Tributary Trunk Sewer, Parcel #5 Owner(s): North Carolina Department of Transportation Property Address: 12101 Mt. Holly-Huntersville Road Total Parcel Area: 1,978,059 sq. ft. Property to be acquired by easements: 39,800 sq. ft. (.914 ac.) in Sanitary Sewer Easement, plus 68,993 sq. ft. (1.584 ac.) in Temporary Construction Easement Structures/Improvements to be impacted: None Landscaping to be impacted: None Zoned: CB Use: Industrial Tax Code: 017-193-01 Purchase Price: $41,465 Council District: N/A City of Charlotte Page 89 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 101. Reference - Charlotte Business INClusion Policy The following excerpts from the City’s Charlotte Business INClusion Policy are intended to provide further explanation for those agenda items which reference the Charlotte Business INClusion Policy in the business meeting agenda. Part A: Administration & Enforcement Appendix Section 20: Contract: For the purposes of establishing an MWSBE subcontracting goal on a Contract, the following are examples of contract types: § Any agreement through which the City procures services from a Business Enterprise, other than Exempt Contracts. § Contracts include agreements and purchase orders for (a) construction, re-construction, alteration and remodeling; (b) architectural work, engineering, surveying, testing, construction management and other professional services related to construction; and (c) services of any nature (including but not limited to general consulting and technology-related services) , and (d) apparatus, supplies, goods or equipment. § The term “Contract” shall also include Exempt Contracts for which an SBE, MBE or WBE Goal has been set. § Financial Partner Agreements, Development Agreements, and Construction Manager-at-Risk Agreements shall also be deemed “Contracts,” but shall be subject to the provisions referenced in the respective Parts of the Charlotte Business INClusion Program Policy. Appendix Section 27: Exempt Contracts: Contracts that fall within one or more of the following categories shall be “Exempt Contracts” from all aspects of the Charlotte Business INClusion Policy, unless the Department responsible for procuring the Contract decides otherwise: No Competitive Process Contracts: Contracts or purchase orders that are entered into without a competitive process, or entered into based on a competitive process administered by an entity other than the City shall be Exempt Contracts, including but not limited to contracts that are entered into by sole sourcing, piggybacking, buying off the North Carolina State contract, buying from a competitive bidding group purchasing program as allowed under G.S. 143-129(e)(3), or using the emergency procurement procedures established by the North Carolina General Statutes. Managed Competition Contracts: Managed competition contracts pursuant to which a City Department or division competes with Business Enterprises to perform a City function shall be Exempt Contracts. Real Estate Leasing and Acquisition Contracts: Contracts for the acquisition or lease of real estate shall be Exempt Contracts. Federal Contracts Subject to DBE Requirements: Contracts that are subject to the U.S. Department of Transportation Disadvantaged Business Enterprise Program as set forth in 49 CFR Part 26 or any successor legislation shall be Exempt Contracts. State Contracts Subject to MWBE Requirements: Contracts for which a minority and women business participation goal is set pursuant to G.S. 143-128.2(a) due to a building project receiving funding from the State of North Carolina shall be Exempt Contracts. Financial Partner Agreements with DBE or MWBE Requirements: Contracts that are subject to a disadvantaged business development program or minority and women business development program maintained by a Financial Partner shall be Exempt Contracts. Interlocal Agreements: Contracts with other units of federal, state, or local government shall be Exempt Contracts. Contracts for Legal Services: Contracts for legal services shall be Exempt Contracts, unless otherwise indicated by the City Attorney. Contracts with Waivers: Contracts for which the SBO Program Manager or the City Manager waives the City of Charlotte Page 90 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 SBO Program requirements shall be Exempt Contracts (such as when there are no SBE subcontracting opportunities on a Contract). Special Exemptions: Contracts where the Department and the Program Manager agree that the Department had no discretion to hire an SBE (e.g., emergency contracts or contracts for banking or insurance services) shall be Exempt Contracts. Appendix Section 35: Informal Contracts: Contracts and purchase orders through which the City procures services from a Business Enterprise that fall within one of the following two categories: Construction Contracts Less Than or Equal To $500,000: Service and Commodities Contracts That Are Less Than or Equal To $100,000: Part B: Formal Construction Bidding Part B: Section 2.1: When the City Solicitation Documents for a Construction Contract contain an MWSBE Goal, each Bidder must either: (a) meet the MWSBE Goal, or (b) comply with the Good Faith Negotiation and Good Faith Efforts requirements. Failure to do so constitutes grounds for rejection of the Bid. The City Solicitation Documents will contain certain forms that Bidders must complete to document having met these requirements. Part B: Section 2.3: No Goals When There Are No Subcontracting Opportunities. The City shall not establish Subcontracting Goals for Contracts where: a) there are no subcontracting opportunities identified for the Contract; or b) there are no SBEs, MBEs or WBEs (as applicable) to perform scopes of work or provide products or services that the City regards as realistic opportunities for subcontracting. Part C: Services Procurement Part C: Section 2.1: When the City Solicitation Documents for a Service Contract do not contain an SBE Goal, each Proposer must negotiate in good faith with each MWSBE that responds to the Proposer’s solicitations and each MWSBE that contacts the Proposer on its own accord. Additionally, the City may negotiate a Committed SBE Goal with the successful Proposer after the Proposal Opening. Part C: Section 2.1: No Goal When There Are No MWSBE Subcontracting Opportunities. The City shall not establish an MWSBE Goal for Service Contracts where there are no MWSBEs certified to perform the scopes of work that the City regards as realistic opportunities for subcontracting. Part D: Post Contract Award Requirements Part D: Section 6: New Subcontractor Opportunities/Additions to Scope, Contract Amendments If a Contractor elects to subcontract any portion of a Contract that the Contractor did not previously identify to the City as a subcontracting opportunity, or if the scope of work on a Contract increases for any reason in a manner that creates a new MWSBE subcontracting opportunity, the City shall either: § Notify the Contractor that there will be no Supplemental MWSBE Goal for the new work; or § Establish and notify the Contractor of a Supplemental MWSBE Goal for the new work. City of Charlotte Page 91 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 102. Reference - Property Transaction Process Property Transaction Process Following Council Approval for Condemnation The following overview is intended to provide further explanation for the process of property transactions that are approved by City Council for condemnation. Approximately six weeks of preparatory work is required before the condemnation lawsuit is filed. During this time, City staff continues to negotiate with the property owner in an effort to reach a mutual settlement. § If a settlement is reached, the condemnation process is stopped, and the property transaction proceeds to a real estate closing. § If a settlement cannot be reached, the condemnation lawsuit is filed. Even after filing, negotiations continue between the property owner and the City’s legal representative. Filing of the condemnation documents allows: - The City to gain access and title to the subject property so the capital project can proceed on schedule. - The City to deposit the appraised value of the property in an escrow account with the Clerk of Court. These funds may be withdrawn by the property owner immediately upon filing, and at any time thereafter, with the understanding that additional funds transfer may be required at the time of final settlement or at the conclusion of litigation. § If a condemnation lawsuit is filed, the final trial may not occur for 18 to 24 months; however, a vast majority of the cases settle prior to final trial. The City’s condemnation attorney remains actively engaged with the property owner to continue negotiations throughout litigation. - North Carolina law requires that all condemnation cases go through formal non-binding mediation, at which an independent certified mediator attempts to facilitate a successful settlement. For the minority of cases that do not settle, the property owner has the right to a trial by judge or jury in order to determine the amount of compensation the property owner will receive. City of Charlotte Page 92 Printed on 8/25/2015 City Council Business Meeting Meeting Agenda July 27, 2015 103. Reference - Property Acquisitions and Condemnations § The City has negotiated in good faith to acquire the properties set forth below § For acquisitions, the property owner and staff have agreed on a price based on appraisals and/or estimates. § In the case of condemnations, the value was established by an independent, certified appraisal followed by a third-party appraisal review. § Real Estate staff diligently attempts to contact all property owners by: - Sending introductory letters via regular and certified mail; - Making several site visits; - Leaving door hangers and business cards; - Seeking information from neighbors; - Searching the internet - Obtaining title abstracts, and - Leave voice messages § For most condemnation cases, City staff and the property owner(s) have been unable to reach a settlement. In some cases, condemnation is necessary to ensure a clear title to the property. § If the City Council approves the resolutions, the City Attorney’s office will initiate condemnation proceedings. As part of the condemnation process, real estate staff and the City Attorney’s Office will continue to negotiate, including court-mandated mediation, in an attempt to resolve the matter. Most condemnation cases are settled by the parties prior to going to court. § If a settlement cannot be reached, the case will proceed to a trial before a judge or jury to determine “just compensation.” § Full text of each resolution is on file with the City Clerk’s Office. § The definition of easement is a right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another, it is either for the benefit of land, such as right to cross A to get to B, or “in gross”, such as public utility easement. § The definition of fee simple is an estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited, commonly, synonym for ownership. City of Charlotte Page 93 Printed on 8/25/2015