City Council

Regular Session 08/27/13 HON. MARY KATHERINE GREENLAW, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. BRADFORD C. ELLIS, VICE -MAYOR, WARD ONE CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. GEORGE C. SOLLEY, WARD TWO HON. FREDERIC N. HOWE, III, WARD THREE HON. BEATRICE R. PAOLUCCI, WARD FOUR Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 August 27, 2013 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, August 27, 2013, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw presiding. Vice- Mayor Bradford C. Ellis. Councilors Kerry P. Devine, Frederic N. Howe, III, Matthew J. Kelly, Beatrice R. Paolucci and George C. Solley. Also Present. City Manager Beverly R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Assistant City Attorney Robert Eckstrom, Planning Director Chuck Johnston, Senior Planner Erik Nelson, Zoning Officer Debra Mathis, Police Chief David Nye, Captain Brian Layton, Budget Manager Amanda Lickey, Assistant Director of Economic Development Richard Tremblay, City Attorney’s Intern Patrick J. Genova and Clerk of Council Tonya B. Lacey. Opening Prayer and Pledge of Allegiance. Council was led in prayer by Councilor Frederic N. Howe, followed by the Pledge of Allegiance led by Mayor Mary Katherine Greenlaw. Officer Recognized. Mayor Greenlaw recognized the presence of Officer John Fesq at this evening’s meeting. Citizen Comment. The following speakers came forward to participate in the 18343 Regular Session 08/27/13 citizen comment portion of this evening's meeting. Tommy Mitchell, 100 Frederick Street, said he and his partner for One Hanover Michael Adams would like to contribute $180,000 towards the Riverfront Park because it adds to the City’s cultural life and because they share the City’s vision for that park. They wanted to donate to help move the project along. Ryguy Mau Muhammedd, 1112 Caroline Street, an advocate for the Mau Mau tribe in Africa. He asked City Council to consider forming a Sister City in Africa near the Mau Mau Territory. He also discussed a Bill on Good Deed Standards Currency each dollar donated is backed by good deeds. He asked Council to look into the Bill and help the community to work together. Robert Duke, 232 Riverside Manor, discussed the need for jobs in the City and asked Council to support the baseball proposal. Charles Mills, 2400 Caroline Street, spoke on the cab fares stating that many had agreed to the $8.00 flat rate. He felt the taxi issues needed to be taken care of because Council had more important issues that needed to be discussed i.e. baseball. He suggested making the rate a flat $8.00 and let the Taxi Board address the taximeters. Sissy Nelson, 11 Lawrence Lane, 22405, spoke in support of the baseball stadium. She said this would be a great outing for her and her many family and friends that visit. Jim Nelson, 11 Lawrence Lane, 22405, also spoke in favor of the baseball stadium. He said this would be a great opportunity for the City. Kerri Barile (D13-331), 3004 Normandy Avenue, owner of Dovetail Cultural Resources, spoke in support of Baseball in the Burg. She was excited about the 18344 Regular Session 08/27/13 opportunity of the team coming to town, so much so, that she offered her services. She also gave a brief history of baseball in the City. Mike Carmody, 313 Princess Anne Street, co-owner of Dovetail Cultural Resources, stated that the opportunity baseball brings is a great one. He said revenue figures are staggering and he urged support of the proposal. Darryl Green, 5321 Jefferson Davis Highway, stated that he hoped the taxi rates would stay about the same. Paula Foster, 6081 Caroline Village Road, 22580, stated that they were fortunate to meet with one of the Council members and she listened and asked many questions and she asked the rest of Council to please do the same. Council Agenda Presented. There were no items were presented to Council. City Manager’s Consent Agenda Accepted for Transmittal as Recommended (D13-332 thru D13-338). Councilor Paolucci pulled item 8B for discussion. Following review and as recommended, Councilor Kelly moved approval of the remaining City Manager's consent agenda items; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). • Ordinance 13-12, Second Read, Granting the Request to Rezone the Following Properties from R-16, Residential, to R-4, Residential: 1210, 1212, 1410, 1412 Kenmore Avenue (D13-332). • Resolution 13-71, Authorizing the City Manager to Execute the Third Performance Agreement Amendment with Fork & Pint Company and 18345 Regular Session 08/27/13 the Fredericksburg Economic Development Authority (D13-334). • Resolution 13-72, First Read, Amending the Fiscal Year 2013 Budget for Final Adjustments (D13-335). • Transmittal of Boards and Commission Minutes • Board of Social Services – July 12, 2013 (D13-336). • Economic Development Authority – July 8, 2013 (D13-337). • Planning Commission – July 31, 2013 (D13-338). Ordinance 13-13, Second Read, Establishing the Fredericksburg Taxicab Board, by Adding a New Division 21 to City Code Chapter 10, “Agencies, Authorities, Boards, Commissions and Committees, Article II, “City-Wide Bodies” (D13-333). Councilor Paolucci asked that this item be pulled because she said the Board she sits on Rappahannock Area Agency on Agency (RAAA) would like to see a member from their board or from disAbility Resource Center (DCR) sit on the Taxi Board to represent the elderly or the disabled. She suggested removing one of the owner or operator spaces and replacing it with an RAAA or DRC member. She also asked when the Board would be starting because she would like to see applications at the next Council meeting for appointment. Councilor Howe stated that he would like to add them as a member rather than removing one of the owner or operators. City Attorney explained that this could be accommodated without adding another seat on the Board. She said the RAAA could be viewed as a customer or they could replace the Mary Washington Hospital or other contractor for taxicab services and she said there was also one undesignated seat that may be filled by a member of Council but, it’s not a requirement. 18346 Regular Session 08/27/13 Councilor Howe said he could agree to appoint the members at the next Council meeting. Councilor Kelly said he felt the RAAA was a critical component to the Board because they provide a lot of services for the elderly and they would bring expertise to the Board as would be the DRB. Councilor Devine agree that they would be a great resource to the Board, but she did not want to do away with the customer position on the Board. Councilor Howe made a statement that the reason for bringing the taxi items forward was based on complaints Council and the Police department had received and personal experience in the City. He said the Board would address rates, standards, certificates of operations and meters. Councilor Howe moved to amend the ordinance to add RAAA as an additional seat on the Board; motion was seconded by Councilor Kelly and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Councilor Kelly moved to approve Ordinance 13-13, on second read, establishing the Fredericksburg Taxicab Board, by adding a new Division 21 to City Code Chapter 10, “Agencies, Authorities, Boards, Commissions and Committees, Article II, “City-Wide Bodies”; motion was seconded by Councilor Ellis and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Adoption of Minutes (D13-339 thru D13-341). Councilor Kelly moved approval of the April 16, June 19, July 1, 2013 Work Sessions, August 13, 2013 Public 18347 Regular Session 08/27/13 Hearing, and August 13, 2013 Regular Session minutes; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Ordinance 13-14, Second Read Tabled, Requiring the Installation of Taximeters through Amendments to City Code Chapter 58, “Motor Vehicles,” Article VII, “Public Vehicles (D13-342). Councilor Paolucci stated that she would like to move to approve the ordinance, but she would like to add that prior to the implementation of the ordinance on January 2014 she would like the Taxi Board to come back with a recommendation on whether to move forward with the meters or other recommendations such as flat, or zoned rates. She explained that she would like the Board’s recommendation before implementing the meters. Councilor Devine agreed that the Taxi Board should have a say in the implementation of the meters so she suggested tabling the vote until the Board has met. She explained that the ordinance is accepting taximeters and she would like to see the Board formed and let them meet and come back with recommendations first. Councilor Paolucci agreed with tabling until Council heard back from the Board. Councilor Devine moved to table Ordinance 13-14 requiring the installation of taximeters until the Taxi Board has been established and has had the opportunity to make a recommendation; motion was seconded by Councilor Solley and passed by the following recorded votes. Ayes (5). Councilors Greenlaw, Devine, Kelly, Paolucci and Solley. Nays (2) Councilors Ellis and Howe. Resolution 13-73, Approved, Granting a Special Use Permit to Thomas H. Mitchell to Construct a Mixed-Use Building Within the 100 18348 Regular Session 08/27/13 Year Floodplain on Property Located at: 108 Hanover Street; 106 Hanover Street; 100 Hanover Street; 0 Sophia Street (Alley) and 718 Sophia Street (D13-342). Upon a motion and as recommended Vice-Mayor Ellis moved to approve Resolution 13-73, granting a special use permit to Thomas H. Mitchell to construct a mixed-use building within the 100 year floodplain on property located at 108 Hanover Street; 100 Hanover Street, 0 Sophia Street (Alley) and 718 Sophia Street; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Resolution 13-74, Approved, Granting a Special Use Permit to Thomas H. Mitchell for a Mixed-Use Building which Exceeds 4,000 Square Feet in Site Coverage in the Commercial-Downtown (C-D) District on Property Located at: 108 Hanover Street; 106 Hanover Street; 100 Hanover Street; 0 Sophia Street (Alley) and 718 Sophia Street (D13-343). Councilor Paolucci asked staff to update everyone on the Fire Marshalls determination. Mr. Nelson stated there had been discussions on the setbacks of the building, the clearance of the alley for firefighting efforts and he said they are a matter of measurements. He said he recognized Council’s will to have appropriate setbacks to the building so moving the building around is not the thing to do. He said they would get into the details more during site plan review, but noted that the information that was provided was adequate for special use permit review. He said they recognize the parameters that they have to work with and intend to address them during 18349 Regular Session 08/27/13 site plan review. He added that for any reason they cannot accommodate what Council expects and what meets the Fire Marshalls requires it would come back to Council. Councilor Paolucci said she understood that one of the options was to move the building forward five feet to give the space in the alley way and another option was to raise the height by 18 inches. She wanted assurances that this would not happen. She asked what other options there were. Mr. Nelson explained that the architect and the owner would have to look carefully at options in order to get the clearance the Fire Marshall requires. Planning Director Johnston said the design of the building itself was an option. He said all they have are conceptual plan they do not have a detailed site plan and he said the owner and architect would address that with their final plans. Councilor Kelly stated that at the last meeting he expressed his concerns about maintaining the historic district and he was concerned that this issue has come up right before Council was about to approve a special use permit. He feels these issues should have come up on the front end of the projects approval. Mr. Johnston said he understood the concerns, but they were following the processes that have been set up and the City decided that the special exceptions and the special use permits were to be approved before the site plan is prepared. He added that if there was an issue the goes outside of the parameters that Council set it would be brought back to Council for review. Councilor Kelly felt as though this project was making a change to the downtown that was degrading the historic character. His concerns where that it is in the middle of downtown, in front of the Riverfront Park and he doesn’t feel it fits the downtown character and he did not think it was not a mixed-use project. He said this area was to be a community area for citizens to walk and have fun. He said this project was not going to 18350 Regular Session 08/27/13 bring that vision and he could not support it. Councilor Devine said she does see residential as being part of the downtown and an important part that keeps the downtown vibrant. She said bringing more people downtown was a plus. She feels that the project was a mixed-use project and she plans to support. Vice-Mayor Ellis also agreed that it was a mixed-use project as much as it could be being that it’s located in the 100 year floodplain. He said an additional 18 inches was not much of an issue for him and he plans to support the project. Councilor Paolucci expressed her concern that if Council had approved this project it would have gone to site plan review and it would have been moved up flush to the sidewalk with the balcony’s over hanging the sidewalks without Council discussion. Mayor asked for clarification because she did not think that was the way it would have been handled. Mr. Johnston said Councilor Paolucci was correct that the bottom portion of the building could have been shifted, but the balconies could not overhang the right of way without coming back to Council for approval. Mr. Nelson also added that the Architectural Review Board approved, in the initial review, a site layout and if the setback was going to change it would have to go back before ARB for approval. Councilor Kelly clarified that residential is important to the downtown, but his issue was with the size and massing of this project and where it’s located. He also noted that majority of the commercial properties along Caroline Street were in the floodplain and with this project they opted to provide parking instead of the retail space. Upon a motion and as recommended Councilor Devine moved to approve Resolution 13-74, granting a special use permit to Thomas H. Mitchell for a mixed-use 18351 Regular Session 08/27/13 building which exceeds 4,000 square feet in site coverage in the Commercial-Downtown (C-D) District on property located at 108 Hanover Street; 100 Hanover Street, 0 Sophia Street (Alley) and 718 Sophia Street; motion was seconded by Vice-Mayor Ellis. Councilor Howe added that he supported the project, but he was concerned with the pushing of the building forward and having the balconies overhang the right-of-way. Mayor Greenlaw stated that she would support the motion. The Riverfront has benefitted every City that has built one, it’s a goal of the City, it’s a goal in the Comprehensive Plan and it’s a popular and healthy trend that people want to live and walk downtown where they can be close to thing. She said this is a good and positive development. The motion passed by the following recorded votes. Ayes (5). Councilors Greenlaw, Ellis, Devine, Howe and Solley. Nays (2) Councilors Kelly and Paolucci. Resolution 13-75, Approved, Granting a Special Exception to Thomas H. Mitchell for Construction of a Mixed-Use Building With a Height of 56 Feet, a Floor Area Ratio of 3.225, a 15% Commercial Ground Floor, and a Density of 40 Residential Units Per Acre on Property Located at: 108 Hanover Street; 106 Hanover Street; 100 Hanover Street; 0 Sophia Street (Alley) and 718 Sophia Street (D13- 344). Upon a motion and as recommended Vice-Mayor Ellis moved to approve Resolution 13-75, granting a special exception to Thomas H. Mitchell for construction of a mixed-use building with a height of 56 feet, a floor area ratio of 3.225, a 15% commercial ground floor, and a density of 40 residential units per acre on property 18352 Regular Session 08/27/13 located at 108 Hanover Street; 100 Hanover Street, 0 Sophia Street (Alley) and 718 Sophia Street; motion was seconded by Councilor Howe and passed by the following recorded votes. Ayes (5). Councilors Greenlaw, Ellis, Devine, Howe and Solley. Nays (2) Councilors Kelly and Paolucci. Resolution 13-76, Approved, Accepting the Report of the Baseball Negotiations Team, and Providing for the Development of the Negotiating Team’s Recommendation Through the Public Hearing and Approval Process (D13-348). City Manager Cameron stated that the negotiating team had completed its work and presented an economic development incentive package for Council to consider. The package provides incentives they believe are necessary to bring a minor league affiliated baseball team to the City. This package also brings with it Diamond Nation an elite baseball training academy and hosting facility. He said they feel the deal is favorable to the City and the Team. The deal utilizes the City’s financial risks and places the burden of performance on the team. In exchange of performance the team receives performance grants equivalent to various taxes produced by the project. He noted that this is not the usual model for a minor league baseball stadium development. He said to his knowledge there isn’t one like it in the Country and it represents a unique public-private partnership. The City’s capital investment would be $7 million and the team’s investment would be $29 million. The City’s capital investment is approximately 19 percent of the total stadium and project development cost. Based on the City’s preliminary analysis they estimate very strong economic impacts beyond the stadium. He said it’s difficult to estimate spillover spending, but he was comfortable reporting that this project would produce incremental tax revenues beyond the stadium of 18353 Regular Session 08/27/13 approximately $2 million annually. This number is based on approximately 400,000 visitors annually. Mr. Cameron reviewed the eleven implementation steps listed on the resolution. Councilor Kelly thanked Councilor Howe, Vice-Mayor Ellis and City Manager Cameron for putting this deal together. He also thanked the citizens for stepping up and speaking out on this project. He said the deal was unheard of in the minor league. He added that the City is working on a multitude of levels of economic development for the City. He said more tourism was needed in the City and he believed this project would bring the tourist. Councilor Howe thanked Mr. Cameron for his support on this project and for a job well done. Councilor Devine congratulated City Manger Cameron for getting this project this far. She said this deal was truly a partnership with the team as well as Diamond Nation and the partnership with Mr. Ron Rosner was also very important. Councilor Solley said he was the only person who voted against the negotiations and his reason for doing so was that he felt the City and the team were so far apart that he didn’t see them coming to a conclusion. He thanked to the City Manager, the negotiating committee, the team and Diamond Nation for coming up with a very different proposal than what was normal. He says it minimizes the risk for everyone and he said he was happy to move forward with this. Councilor Howe thanked Bruce Quinn and Jack Cost for hanging in there with the City. Councilor Howe moved to approve Resolution 13-76, accepting the report of the 18354 Regular Session 08/27/13 Baseball Negotiations Team, and providing for the development of the negotiating team’s recommendation through the public hearing and approval process; motion was seconded by Vice-Mayor Ellis Vice-Mayor Ellis highlighted the accomplishments made thus far: proposal that transfers the risk away from the City’s taxpayers, the City structured a performance based economic development incentive package along with the construction of a parking lot which the City will receive 50 percent of the revenues, the proposal went from a 60:1 debt to income ratio with an annual return on investment of .28 to a debt to income ratio of .13:1 with return on investment of 181 percent, the estimate annual revenues have gone from $500,000 to an estimated $83 million, and the debt service went from $1.8 million per year to $332,000 per year. He said this project makes sense and he noted the support of Mr. Ron Rosner and Former Mayor Lawrence Davies. Mayor Greenlaw stated that she would support the proposed resolution and she said she was very proud of the City Manager and the negotiating team and she welcomed the public-private partnership with the Suns, Diamond Nation and Ron Rosner. The motion passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Ordinance 13-15, Approved, Establishing a New Escalating Fine Schedule for False Burglar Alarms, and Adding Duties of Alarm Companies, through Amendments to the City Code Chapter 34, “Emergency Services”, Article II, “Burglar Alarms” (D13-345). After a brief staff presentation Councilor Devine asked Police Chief Nye how he planned to notify people when they need to come in to compliance. He stated that in the next 18355 Regular Session 08/27/13 mailings sent out by the Treasurer in November and December they will begin notifying people of the changes in the fine, and after that he would be sending certified letters. Upon a motion and as recommended Councilor Devine moved to approve Ordinance 13-15 on first read, establishing a new escalating fine schedule for false burglar alarms, and adding duties of alarm companies, through amendments to the City Code Chapter 34, “Emergency Services”, Article II, “Burglar Alarms”; motion was seconded by Councilor Paolucci and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Fourth Quarter Financial Report (D13-346). Assistant City Manager Whitley reviewed the quarterly financial report and he covered the following: the overall financial results for the General Fund in FY 2013 were very positive for the City. A combination of population growth and recovering economic activity contributed to strong revenue receipts of $80.7 million. In addition, General Fund expenditure activity totaled $79.2 million, which was $1.7 million under budget. The net result is an addition of approximately $1.5 million to the fund balance. The General Fund revenue and transfer receipts fell by about $600,000 over the prior year total of $81.3 million. However, during FY 2012, $2.3 million in revenue represented special activity – the $2 million repayment of the Cowan Boulevard Debt Service from the Virginia Department of Transportation and $300,000 in health insurance proceeds from the Anthem plan. If these special items were removed from the FY 2012 base, revenues grew by approximately $1.7 million, or 2.15%. Real estate taxes revenue fell short of budget by approximately $18,000. 18356 Regular Session 08/27/13 Over the past three years, the City has seen significant growth in the value of personal property the FY 2013 revenue collection was 10.7% higher than FY 2012 and 19.3% higher than FY 2011. The City’s business license taxes are due in March, and the City’s forecasts for this revenue source were relatively conservative given the economic climate at the time. City sales tax May receipts grew 10.8% over May 2012 and June receipts grew 12.8% over June 2012. The City’s meals tax receipts continued to be very strong in FY 2013 – the pace of growth declined, but revenues increased 2.68% over the total from FY 2012. Consumer Utility Taxes – The City’s Consumer Utility tax receipts fell slightly in FY 2013, from $1.83 to $1.795 million. However, both years were higher than FY 2011, which was $1.64 million. Tobacco Tax – The City’s tobacco tax receipts fell during FY 2013, from $578,303 in FY 2012 to $442,569 in FY 2013. Staff believes this was a one-time activity due to credits given for tax stickers bought before the City joined the Northern Virginia Cigarette Tax Board. Rescue Fee-for-Service – total of $762,578 is 6.48% higher than FY 2012 receipts. Building Permit receipts were off significantly in FY 2013 – the total for the year was $480,625 which was 9.46% off of FY 2012 receipts. Total General Fund expenditures increased in FY 2013 by approximately $4.4 million compared to FY 2012. However, overall expenditures were less than budget by $1.7 million. 18357 Regular Session 08/27/13 The amount of General Fund Contingency is $503,095. The balance of the Contingency that remains unused returns to the balance sheet. Resolution 13-77, Approved, Authorizing the Acquisition of an Interest in the Thornton-Forbes Cemetery (D13-347). City Attorney Intern Patrick Genove presented a PowerPoint presentation and as recommended Councilor Kelly moved to approve Resolution 13-77, authorizing the acquisition of an interest in the Thornton-Forbes Cemetery; motion was seconded by Councilor Solley and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). City Manager’s Report and Council Calendar (D13-349 thru D13- 350). 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: ED&T Newsletter, Community-Based Eligibility Worker Program, and City Officer to receive MADD Award Councilor Howe recognized Councilor Kelly for working with the General Assembly on the claw back issue; this this is one of the reasons they were able to get a baseball deal. Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 9:22 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 18358