City Council

Public Hearing 12/13/11 CITY OF FREDERICKSBURG, VIRGINIA HON. THOMAS J. TOMZAK, MAYOR HON. MARY KATHERINE GREENLAW, VICE MAYOR CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. BRADFORD C. ELLIS, WARD ONE HON. GEORGE C. SOLLEY, WARD TWO HON. FREDERIC N. HOWE, III, WARD THREE Council Chambers, 715 Princess Anne Street HON. BEATRICE R. PAOLUCCI, WARD FOUR Fredericksburg, Virginia 22401 December 13, 2011 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, December 13, 2011, beginning at 8:07 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Thomas J. Tomzak, presiding. Vice-Mayor Mary Katherine Greenlaw. Councilors Kerry P. Devine, Bradford C. Ellis, Frederic N. Howe, III and George C. Solley. City Council Absent. Councilor Beatrice R. Paolucci – sick. Also Present. City Manager Beverly R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Economic Development Director Karen Hedelt, Economic Development Manager Richard Tremblay, Fire Chief Eddie Allen and Clerk of Council Tonya B. Lacey. Notice of Public Hearings (D11-550 thru D11-552). The Clerk read the notice of the public hearings as they appeared in the local newspaper, the purpose being to solicit citizen input. Expanding the Technology Zone to Include the Entire City, Reducing Eligibility Criteria and Authorizing the City Manager to 17719 Public Hearing 12/13/11 Enter into Performance Agreements up to $100,000 in Total Value, by Amending City Code Chapter 22, “Businesses”, Article VI, “Technology Zones” – Action Postponed (D11-551). – 1 speaker. Economic Development Manager Tremblay summarized the proposed changes to the existing Technology Zone. He explained that the City had missed opportunities with companies considering locations outside of the five existing zones and others could not qualify because of the programs current employment and capital investment eligibility criteria. He said that the time it takes to bring an agreement to City Council for approval has been challenging for businesses having to make time sensitive location and leasing or purchasing decisions. In order to increase the effectiveness of the Technology Zones incentives, he proposed three changes: making the entire city a technology zone, reducing the eligibility criteria for businesses to qualify for incentives and authorizing the City Manager to approve performance and incentive agreements up to $100,000 in total value. Councilor Howe encouraged council to postpone action on this ordinance until a work session could be held on incentive across the board. His concern is that existing businesses have provided revenue to the base and they have to pick up the slack during the incentive periods for those new businesses. He said a lot needed to be discussed on incentives as a whole before making changes. Councilor Solley asked how the changes would affect the incentive program. Mr. Tremblay stated that it would make more businesses eligible both existing businesses and new businesses. He said there were many businesses looking at the City but couldn’t qualify based on the required jobs and in each of those cases if the proposed changes had already been in place they would have qualified. Councilor Solley also asked if the 17720 Public Hearing 12/13/11 $100,000 was the total value the City would receive over the period of the incentive and how many of the approved incentives would the City Manager have been able to approve if the proposed changes had already been made. Mr. Tremblay stated the $100,000 cap is the maximum tax reduction over the five years cumulative. He said there are three approved incentives currently and two out of the three approved the City Manager would have been able to approve. Mayor Tomzak asked Councilor Howe his reasoning for wanting to postpone a vote on the technology zone changes. Mr. Howe explained his reasoning in great detail and stated that he would like to place all incentives on hold until a work session is held concerning anything that represents a loss of revenue in the budget. Councilor Ellis said he supports expanding the technology zone across the City, but would also agree to postpone in order to look more strategically at the incentives. Councilor Solley agreed that a work session was needed in order to come to a common agreement. Matthew Kelly, 1309 Hanover Street, stated that incentives should be used to close a deal. He feels that the City is incentivizing competition. He said the incentives should be scrapped and the City should find businesses they want and asking what it would take to get them here. Councilor Devine moved to postpone action until a work session is held in order to come to an agreement on incentives; motion was seconded by Councilor Ellis and passed by the following recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe, and Solley. Nays (0). Amending the City’s Tourism Zones, by Adding a Route 3 Corridor Tourism Zone, Reducing Downtown Tourism Zone 17721 Public Hearing 12/13/11 Qualifications Except for Restaurants, and Authorizing the City Manager to Enter into Performance Agreements up to $100,000 in Total Value, by Amending City Code Chapter 22, “Businesses”, Article V, “Tourism Zones” – Action Postponed(D11-552). – 1 speaker. Matthew Kelly, 1309 Hanover Street, added that there are many infrastructure issues that need to be addressed and the biggest one is the parking downtown. He said the City needed to get away from incentivizing restaurants because the investments are so small. Councilor Howe made a motion to postpone this item; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). Adjournment. There being no speakers to come before the Council at this time, Mayor Tomzak declared the hearing officially adjourned at 8:35 p.m. Thomas J. Tomzak Thomas J. Tomzak, Mayor Tonya B. Lacey Tonya B. Lacey, CMC, Clerk of Council 17722 Regular Session 12/13/11 CITY OF FREDERICKSBURG, VIRGINIA HON. THOMAS J. TOMZAK, MAYOR HON. MARY KATHERINE GREENLAW, VICE MAYOR CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. BRADFORD C. ELLIS, WARD ONE HON. GEORGE C. SOLLEY, WARD TWO HON. FREDERIC N. HOWE, III, WARD THREE Council Chambers, 715 Princess Anne Street HON. BEATRICE R. PAOLUCCI, WARD FOUR Fredericksburg, Virginia 22401 December 13, 2011 The Council of the City of Fredericksburg, Virginia, met in regular session on Tuesday, December 13, 2011, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Thomas J. Tomzak, presiding. Vice-Mayor Mary Katherine Greenlaw. Councilors Kerry P. Devine, Bradford C. Ellis, Frederic N. Howe, III and George C. Solley. City Council Absent. Councilor Beatrice R. Paolucci – sick. Also Present. City Manager Beverly R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Economic Development Director Karen Hedelt, Economic Development Manager Richard Tremblay, Fire Chief Eddie Allen and Clerk of Council Tonya B. Lacey. Opening Prayer and Pledge of Allegiance. Council was led in prayer by Councilor Bradford C. Ellis, followed by the Pledge of Allegiance led by Mayor Tomzak. Auxiliary Officer Recognized. Mayor Tomzak recognized the presence of Officer Kevin Capach at this evening’s meeting. Update on Stafford Civil War Park (D11-549). Mr. Glenn Trimmer with the Friends of Stafford Civil War Sites gave a PowerPoint presentation that 17723 Regular Session 12/13/11 summarized Phase I construction, estimated costs, construction statistics, photos of work, Phase II (2012) construction status. Mr. Trimmer also presented all of Council with coins commemorating Phase I construction. Update on the School Division. Dr. David Melton began with an update on the China Global Partner Program that the City participated in. There are 400 million students in China. It has the largest standing army and cash reserve in the world and the third largest economy. He stated that the United States education is often compared to China’s, but after middle school students in China no longer receive free education. The quality of education is dependent on how much money the child’s parents have. Students that graduate from high school tend to come to the United States (U.S.) to continue their educations and there are over 800,000 Chinese students in the U.S. The program was sponsored by the Virginia School University Partnership an extension of the University of Virginia. It was designed to provide an understanding of the importance of studying China in public education. In preparation of the trip, they had to attend 4 days of seminars to learn the history, economy, educational system and culture. The goals of the program were to raise the global and economic awareness of China as a major trading partner to Virginia and the US. The second goal was to understand the skill the U.S. students would need to collaborate and compete successfully in the international market and finally to evaluate the curriculum and syllabi to determine how to address China in the preparation of the U.S. students in a global economy. They learned a lot about the history, culture, the economy, government and policies of China and they also learned about the cultural, economic and political relationships between China and the U.S. and how China is addressed in the Virginia Standards of Learning (SOL). He stated that a 17724 Regular Session 12/13/11 more detailed presentation would be held on January 9, 2012. The pictures and videos from the trip are going to be used as resources in Social Studies classes. He also stated that through scholarships they will send some students to China in 2013. Dr. Melton also discussed the budget and stated that the Virginia Retirement System Board has proposed an increase of 10.44% on the teacher rate that will cost the schools $2.1 million, they are estimating a health increase of 12%, which is about $400,000 and since the schools have had a gain of approximately 600 student in the last three years, additional teachers will be needed in the upper elementary level. The local composite index is proposed to go down which could mean $1.5 million in new funding from the State. Dr. Melton updated Council on the initiatives as followed: the first parent information night was held. Dinner was served and parents had a variety of sessions to attend. He thanked Mayor Tomzak for leading one of the sessions. The Dropout Prevention Advisory had met and had an organizational meeting. He said they hope to have two more this year. He thanked Councilor Howe for volunteering. The Breakfast buddies program is up and running and they had a great turnout of many great role models from the community. Council Howe commended Dr. Melton on the committee for dropouts and said he was excited for the opportunity to help. He also said the energy management initiative group had met to address the energy management cost savings. Citizen Comment. The followings speakers came forward to participate in the citizen comment portion of this evening's meeting. Marilyn Brown, 546 Warrenton Road, stated that the Stafford shelters have no 17725 Regular Session 12/13/11 heat and the homeless were going to Prince William County. She also stated that FRED was not being run properly. Matthew Kelly, 1309 Hanover Street, asked several questions regarding the courthouse project: Why was furnishing and equipment removed from the contract? What is the assessed value of the property? What does the City plan to do after Juvenile and Domestic Relations Court is moved out of the Executive Plaza? Any plans to upgrade the technology for the courts? Are the new bathrooms, that will replace the current ones, going to be temporary or permanent and where are they going? How much is the City saving on the construction cost? Will Council consider not taking on any big projects until after elections in May? What’s Council’s thought on the other projects that are needed; can they be done at the same time as courts? Why isn’t more parking cost included in the price of the project? What are the views on the impact of this project on the list of priorities and projects? When is the ARCADIS report being released. Public Hearings Held (D11-550 thru D11-552). At this time, the regular session was recessed in order to conduct the scheduled public hearing; the meeting was immediately reconvened upon conclusion of the hearings. Council Agenda. The following Council agenda was presented for consideration. A. International Institute of Municipal Clerks – Mayor Tomzak B. Renwick Building – Mayor Tomzak C. Report on Meeting with President Richard Hurley Regarding Neighborhood Complaints – Vice-Mayor Greenlaw International Institute of Municipal Clerks (IIMC). Mayor Tomzak 17726 Regular Session 12/13/11 recognized and congratulated Clerk Tonya Lacey for completing her clerk’s certification. She is now a Certified Municipal Clerk. Renwick Building. Mayor stated that they would have to give great consideration on what’s the best use for the building. Report on Meeting with President Richard Hurley Regarding Neighborhood Complaints. Vice-Mayor Greenlaw reported that as a result of the request from Council at the November 22 meeting regarding the students renting properties in the City the Mayor, the City Manager and the Vice-Mayor met with President Hurley and the Dean of Students Douglas Searcy, and the Presidents Chief of Staff Dr. Martin Wilder. The University is concerned and they are responding by having more police presence in the neighborhoods. There will be one officer on foot on the weekends. She noted that the college receives reports whenever a student’s name shows up at the Police Department and if they appear on a report twice they are brought before the Judicial Review Board and face sanctions. Mayor and City Manager Cameron suggested that orientation be strengthened. The University will explore best practices from other University’s in regards to orientations for off campus living. President Hurley also requested the names and addresses of the city residents who spoke and complained to City Council. City Manager’s Consent Agenda Accepted for Transmittal as Recommended (D11-553 thru D11-558). Following review and as recommended, Councilor Solley moved approval of the City Manager's consent agenda; motion was seconded by Councilor Howe and passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. 17727 Regular Session 12/13/11 Nays (0). None. • Transmittal of FRED Transit Progress Report – November 2011 (D11 553). • Transmittal of the Architectural Review Board and the Board of Zoning Appeals Applications – November 2011 (D11-554). • Resolution 11-103, Adopting Emergency Operations Plan (D11-555). • Transmittal Boards and Commission Minutes o Architectural Review Board – October 17, 2011(D11-556). o Board of Social Services – October 14, 2011(D11-557). o Potomac, Rappahannock Transportation Commission – November 3, 2011(D11-558). Adoption of Minutes (D11-559 thru D11-562). Councilor Howe moved approval of the Work Session minutes of April, 26, May 24, October 25, and November 8, 2011 and Public Hearing minutes of November 8 and 22, 2011 and Regular Session minutes for November 8 and 22, 2011; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). None. Ordinance 11-35, First Read Approved, Prohibiting Public Nuisances and Providing for the Abatement Thereof, by Adopting a New City Code Chapter 59, “Nuisances,” and Relocating Current City Code Chapter 38, “Environment,” Article IV, “Weeds and Wild Growth,” City Code Section 62-4, “Responsibility for Removal of 17728 Regular Session 12/13/11 Refuse,” and City Code Chapter 58, Article V, Division 4, “Inoperable Vehicles” to the New Nuisance Chapter Repealing City Code Section 38- 79(B) as Redundant (D11-563). City Attorney Dooley stated that in June City Council directed staff to review operations and laws on the book to determine if the ordinance could be enhanced to address public nuisances. The nuisances in particular were noise, property maintenance, overcrowding and alcohol violations as they arise in rental units. The group of staff convened several meetings to identify areas that needed improvements. A work session was held on November 22 to discuss staff’s proposals and Council provided feedback. The proposed ordinance is the result of the process. The ordinance is an overhaul of the City Code with respect to public nuisance provisions. The ordinance does not address noise violation and alcohol violations. The noise ordinance was reviewed and revised in January 2010 in response to a Supreme Court decision and all alcohol violations are a matter of state code. There are several public nuisance ordinances scattered throughout the code and this ordinance will bring them all together in a new chapter of the City Code titled Nuisances. The ordinance also provides a general prohibition against public nuisances. This pertains to the public’s safety, health and welfare. It will also clarify and expand the types of public nuisances prohibited, consolidate administration and enforcement provision, it gives authority to address an imminent threat to public health or safety and it increased penalties for violations. She also noted that a number of operation changes that Council requested have been put in place and they are seeing the effects of those changes already. The committee will review again in about 12 months to see if they have been successful at meeting Council’s goal. 17729 Regular Session 12/13/11 Councilor Ellis asked if the inoperable vehicle section would include inoperable boats. Ms. Dooley stated that the definition of an inoperable vehicle has not changed from the existing in the Code because it’s consistent with the Virginia Code. She noted the new section that address outside storage on residential property of abandoned discarded or unused equipement which list several items. She said if the outdoor storage of a boat rose up to the level of public nuisance and have an adverse affect of the neighbor’s health, safety and welfare then it would be addressed by the ordinance. She cautioned Council of focusing the ordinance on those types of conditions. She stated that there are conditions that are annoying, and some that reach the level of having an adverse affect on the health, safety and welfare. It would be decided upon inspection of the property. Councilor Howe stated that if boats are not specifically listed in the ordinance will building codes be able to address those issues as they arise. Councilor Devine noted that the two issues that are not being addressed in the proposed ordinance are the two that they have the most complaints on, which are alcohol and noise violations and she asked what avenues were available for those violations. City Attorney Dooley said they would come under the operations review. She said the staff understands that this is a high priority for Council and that Council would like to hold the land owners responsible. The staff decided that after 3 founded complaints with respect to a rental property the police would make a complaint to City Attorney and the City Attorney would send a letter to the landowner. After repeated complaints the Police are making arrest and this will also be brought to the landowners attention and letting the landowner know they would be held responsible for bringing the property into compliance. 17730 Regular Session 12/13/11 Upon a motion and as recommended, Councilor Devine moved to approve Ordinance 11-35, on first read, prohibiting public nuisances and providing for the abatement thereof, by adopting a new City Code Chapter 59, “Nuisances,” and relocating current City Code Chapter 38, “Environment,” Article IV, “Weeds and Wild Growth,” City Code Section 62-4, “Responsibility for Removal of Refuse,” and City Code Chapter 58, Article V, Division 4, “Inoperable Vehicles” to the new Nuisance Chapter repealing City Code Section 38-79(b) as redundant; motion was seconded by Councilor Howe. Councilor Howe gave a brief statement thanking staff for the quick response and he recognized UMW for meeting with Mayor, Vice-Mayor and City Manager. He noted that there are some great students who do good work throughout the City, but there are a few bad ones that spoil it for all. The motion passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). None. Resolution 11-104 Approved, Increasing the Parking Fees in the Sophia Street Parking Garage (D11-564). Following a brief overview by staff Councilor Solley stated that he would like to incentivize the parking in the garage and he proposed changing the free parking to add an additional hour of free parking. Upon a motion and as recommended Councilor Ellis moved approval of Resolution 11-104, increasing the parking fees in the Sophia Street Parking Garage; motion was seconded by Councilor Howe. Councilor Solley made an amendment to increase the free parking from two (2) hours to three (3) hours. Amendment was accepted and the motion passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). None. 17731 Regular Session 12/13/11 Resolution 11-105 First Read Approved, Amending the Fiscal Year 2012 Budget by Appropriating Fiscal Year 2011 Encumbrances (D11-565). Upon a motion and as recommended Councilor Howe moved approval of Resolution 11-105 on first read, amending the fiscal year 2012 budget by appropriating fiscal year 2011 encumbrances; motion was seconded by Councilor Solley and passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). None. Resolution 11-106 First Read Approved, Amending the Fiscal Year 2012 Budget for Capital and Grant Carryovers (D11-566). Upon a motion and as recommended Councilor Howe moved approval of Resolution 11-106 on first read, amending the fiscal year 2012 budget for capital and grant carryovers; motion was seconded by Vice-Mayor Greenlaw and passed by the following unanimously recorded votes. Ayes (6). Councilors Tomzak, Greenlaw, Devine, Ellis, Howe and Solley. Nays (0). None. Report on the Results of the Bond Sale (D11-567). City Manager Cameron reported that on November 30, 2011 the City successfully sold bonds to finance the court project in the amount of $36.7 million to include outstanding bonds issued in 2001. He said there were three major tasks the City had to complete before the sale, the first was to complete the annual audit, the second was to give presentations to the three rating agencies, and finally preparing the Official Statement. Each of the tasks were very complex and he said that Council was very well served by staff, in particular, Assistant City Manager Whitley, Fiscal Affairs Director Clarence Robinson, Assistant Director of 17732 Regular Session 12/13/11 Fiscal Affairs David MacIndoe and all the members of the Fiscal Affairs audit team. The audit was completed two months early. He said they were supported by the City’s Financial Advisor Mr. Kevin Rotty and Bond Counsel Mr. Chuck Schiemer and City Attorney Dooley. Assistant City Manager summarized the results of the bond sale. He stated that nine separate financial institutions bid on the bonds. The low bidder was Raymond James Financial, with a true interest cost of 3.58% on the combined issue. The total amount issued was $36,665,000. The City will receive $35 million for the construction of the project, plus and additional amount of $356,304 to pay the cost of issuance. He said there will also be an underwriter’s discount of $235,327. The winning firm also bid a premium on the bonds of $1,496,304 which was used to lower the principal amount borrowed to $33.8 million. The true interest cost for the court portion of the bond was 3.64%. In fiscal year 2013, the City will pay $1,386,565 in debt service and each year afterward, the City will pay approximately $2.14 million per year. The total principal and interest for the courts portion is $54,838,103 and it will be paid out over twenty-five years. He also noted that because of the historic lows of the interest the principal and interest savings are about $10 million, over $400,000 saving a year. The refunding bonds were in the amount of $2,805,000. The true interest cost for this portion of the issue is 1.73%. The original issue expires in 2022. The City’s gross savings on this issue is $259,997 over the remaining life of the issue. Councilor Solley congratulated the staff for their work and for saving the City $10 million. City Manager’s Report and Council Calendar (D11-568 thru D11- 17733 Regular Session 12/13/11 569). City Manager Cameron asked if there were any questions regarding the Manager’s report or the Council Calendar. Activities highlighted on the report were as follows: Tour of the City Builds Ambassadors for Fredericksburg in Washington, DC, EDA Approves Ten Downtown Façade Improvement Matching Grants, Arts and Cultural District Incentive Applications Due for 2012, Economic Development and Tourism November Newsletter, Fire Department Training Overview, New Polygraph Examiner at Police Department. Mr. Cameron noted that two long time employees would be retiring at the end of December, Bryant Skinner the lead mechanic for Public Works (26 years) and Chuck Dagenhart Manager of Public Facilities (15 years). He also reported that the City had received an electronic transfer from Virginia Department of Transportation in the amount of $2,010,000 for the debt reimbursement of the Cowan Boulevard project. Adjournment. There being no further business to come before the Council at this time, Mayor Tomzak declared the meeting officially adjourned at 9:17 p.m. Thomas J. Tomzak Thomas J. Tomzak, Mayor Tonya B. Lacey Tonya B. Lacey, CMC, Clerk of Council 17734