City Council

Regular Session 03/11/14 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 March 11, 2014 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, March 11, 2014, 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 Cameron, City Attorney Kathleen Dooley, Budget Manager Amanda Lickey, Planning Director Charles Johnston, and Clerk of Council Tonya B. Lacey. Opening Prayer and Pledge of Allegiance. Council was led in prayer by Councilor Frederic N. Howe, III, followed by the Pledge of Allegiance led by Mayor 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 citizen comment portion of this evening's meeting. Hunter Greenlaw, Echo Drive, spoke in favor and stated that he highly endorse the proposed changes in the Commercial-Downtown district. 18551 Regular Session 03/11/14 Lee Griffin, 600 Kenmore Avenue, was pleased with the work done in the City and for the visions of City Council. He said he was also pleased with how this Council listens to the citizens. Larry Wellford, President of Wellford Engineering Associates, 4545 Empire Court, stated that he worked with the UDO everyday and it was important that it be modified. The UDO was not perfect and Council has made changes along the way and he said that was to be commended. He said he had some concerns with the changes being made in the CD zone and he shared those concerns with staff and staff addressed all of his concerns. He said staff has done a great job and he asked that Council support the proposed changes. Amy LaMarca, spoke on behalf of the Economic Development Authority on the HUB Zone Career Fair. She commended the Economic Development staff in particular Amy Perregoy and Karen Hedelt for their work on this event, which was highly successful. This was an opportunity to reach out to people to support bringing job opportunities back into the City. The Career Fair was to support opportunities in the City, the human capital in the City and some of the real estate and incentive programs. She spoke about the Job Board that was created and released on the day of the Career Fair. The Job Board was developed in order to help those businesses try to meet the 35 percent local applicants in order for the business to keep its HUB Zone certification. This job board allows any companies in the 22401 zip code to list jobs on the board for free. Council Agenda Presented. The following items were presented to Council. 7A. Riverfront Taskforce – Councilor Solley 18552 Regular Session 03/11/14 Riverfront Taskforce – Councilor Solley gave an update on the events to date with the Riverfront. He stated that the Taskforce and the Design Team of Rhoadeside and Harwell held an open house at the Marriott Downtown on Saturday March 8. There were approximately 75 people in attendance to see the presentation and made their opinions known. They also completed a survey that the design team will use as a guideline for their design. Councilor Solley noted that all the information was on the City’s website as well as the survey and he encouraged everyone to take the survey. City Manager’s Consent Agenda Accepted for Transmittal as Recommended (D14-108 thru D14-111). Following review and as recommended, Councilor Devine moved approval of the City Manager's consent agenda items; motion was seconded by Vice-Mayor Ellis and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). • Transmittal of the FRED Transit Progress Report – February 2014 (D14-108). • Transmittal of Boards and Commission Minutes o Fredericksburg Arts Commission – January 15, 2014 (D14-109). o Planning Commission – December 11, 2013 (D14-110). o Recreation Commission – January 16, 2014 (D14-111). Adoption of Minutes (D14-112). Councilor Kelly moved approval of the February 25, 2014 Work Session, Public Hearing and 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. 18553 Regular Session 03/11/14 Nays (0). Ordinance 14-13, First Read Approved, Billing for Annual Personal Property Taxes in Two Installments Instead of One (D14-113). Upon a motion and as recommended Councilor Kelly moved to approve Ordinance 14- 13, on first read, billing for annual personal property taxes in two installments instead of one; motion was seconded by Devine; and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Suspension of the Rules. In order to place Ordinance 14-13 on for second read Councilor Kelly moved to suspend the rules; motion was seconded by Vice-Mayor Ellis and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci and Solley. Nays (0). Ordinance 14-13, Second Read Approved, Billing for Annual Personal Property Taxes in Two Installments Instead of One (D14-113). Upon a motion and as recommended Councilor Kelly moved to approve Ordinance 14- 13, on second read, billing for annual personal property taxes in two installments instead of one; 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). Resolution 14-20, Renewing a Lease with American Tower, LLC for the Operation of a Telecommunications Tower and Related Facilities at Powhatan Water Tank (D14-114). Upon a motion and as 18554 Regular Session 03/11/14 recommended Vice-Mayor Ellis moved to approve Resolution 14-20, renewing a lease with American Tower, LLC for the operation of a telecommunications tower and related facilities at Powhatan Water Tank; 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 14-14, First Read Approved, Amending the Commercial Downtown Zoning District Regulations Pertaining to Multi-family Residential Density and the Floor Area Ratio for Nonresidential Uses (D14-115). Planning Director Johnston explained that the proposed amendment for multi-family residential density had been revised based on Council comments to limit the increase multi-family density from 12 to 18 units per acre by right. By standard practice, the minimum threshold for multi-family development is 18 units per acre. Limiting multi-family use at 12 units per acre would preclude multi- family projects. 12 units per acre is the typical beginning density for townhouse development. He also explained that the mixed use for residential and commercial development maximum floor area ratio was currently 3.0. For non-mixed use commercial development, the maximum floor area ratio was currently 3.0. He proposes to reduce the maximum to a floor are ratio of 2.5 for non-mixed use commercial projects. The purpose of making this reduction was to maintain the character in the core downtown area. The amendment would also decrease the maximum allowed density for non-mixed use commercial development, to encourage mixed use and achieve the objectives in the Comprehensive Plan. Councilor Kelly stated that he was concerned with changing the by right use from 18555 Regular Session 03/11/14 12 to 18 units per acre without requiring a special use permit. He said he understood that there was a need for the downtown to grow, but he feels these changes were being rushed through because there was a project on the horizon. He added that the project could move forward now, it would just require a special exception. He said before he could move on with this he would like to have more discussions on what the historic district is to look like in the future. Vice-Mayor Ellis asked for clarification from Mr. Kelly on his concerns with the 18 units per acre in the downtown. Councilor Kelly said he would like to maintain maximum control over any projects coming to the downtown and he didn’t like the idea of making little changes here and there instead of looking at the entire historic downtown. Mayor Greenlaw expressed that she did not agree with Councilor Kelly statement that this was a result of a project coming. She said it was a result of the UDO complete rewrite. She also stated that the Council was defining what they wanted the Historic District to look like by defining the ordinances and what they allow. She said 18 units per acre was a logical number for the area. Vice-Mayor Ellis said he understood Councilor Kelly wanting to look at the downtown holistically, but he added that in order to get people downtown we must make upgrades to the infrastructure and by adding fiber this would allow people to move into the HUB zones. Upon a motion and as recommended Vice-Mayor Ellis moved to approve Ordinance 14-14, first read approved, amending the Commercial Downtown Zoning District regulations pertaining to multifamily residential density and the floor area ratio for nonresidential uses; motion was seconded by Councilor Devine; and passed by the 18556 Regular Session 03/11/14 following recorded votes. Ayes (6). Councilors Greenlaw, Ellis, Devine, Howe, Paolucci and Solley. Nays (1) Councilor Kelly. Ordinance 14-15, First Read Approved, Amending the Commercial Downtown Zoning District Regulations Pertaining to Mixed Use (D14-116 thru D14-117). Planning Director Johnston explained that the UDO currently allows the residential density in the Commercial-Downtown Zoning District for mixed use to allow a maximum of 24 units per acre by right and 36 units per acre by Special Use Permit. The criterion for mixed use is 100 percent of the ground floor to be used for commercial activities with a maximum floor area ratio of 3.0 for mixed-use development. The proposed changes for the mixed use projects of 24 units per acre or less is to replace the requirement for 100 percent ground floor commercial with a requirement that 30 percent (15 percent in the 100 year floodplain) of the ground floor shall be used for retail sales, eating, or personal services establishments. This change would encourage commercial activities that maximize pedestrian activity and to allow for more flexibility on the ground floor for parking and other uses. Projects that have more than 24 units per acre would also have the 30 percent provision applied, in addition to, at least 25 percent of the gross floor area of all buildings on the site plan for mixed-use development shall be either residential or nonresidential uses. This would result in at least 25 percent of the project being used for residential uses and the balance used for non-residential uses or the reverse, 25 percent uses for non-residential uses and the balance for residential uses. Councilor Howe commended staff for coming up with a better solution to get more people interested in developing in the floodplain. He said the 100 percent 18557 Regular Session 03/11/14 development of the ground floor was not practical. Councilor Kelly reiterated that there needed to be more discussions on what the downtown should look like. He did not agree that the changes should be made just to get in line with normal zoning practices. He said there are many areas throughout the City that hotels, restaurant and office spaces could be built. He said the Historic Downtown needed to be regulated more and he did not like the direction the City was going. Councilor Devine disagreed and felt as though the public had been involved through the UDO process, there were public hearings and a group of people working on the UDO. She said the changes were coming from further discussions that were had. Councilor Solley explained that he felt the purpose for mixed use was so that people could live, work and play in close proximity and would not have to drive in order to do that and for this reason he did not understand why the focus was on one structure in a district that was already heavily commercial. He asked if the 18 units per acre was a reasonable density for residential only and why by adding mixed use is 24 units per acre up to 36 units per acre the goal. Mr. Johnston explained that downtown does have a mixed use character to it, but he said this change was geared towards future development. He added that future development without economic encouragement would lead to preponderant of simple use office non-mixed use integrated activities. He feels in order to encourage these mixed use developments the change needed to be made. He also explained that the 18 units per acre for multi-family is the threshold density for the numbers to work economically. He’s encouraging mixed used development because that is what works downtown. Councilor Kelly said he would be more comfortable making decisions like these if 18558 Regular Session 03/11/14 the special exceptions were removed from the table. Councilor Howe asked for clarification on what was being done with special exceptions with the Planning Commission. Mr. Johnston stated that the Planning Commission had planned to discuss this at the February 12 meeting, but it was cancelled due to snow and it was rescheduled for the March 12 meeting. The Planning Commission will discuss the various ways to handle the special exceptions. He also added that the ARB discussed the process review in February and at their March meeting but decided they need to hold a work session to discuss it further. Councilor Paolucci noted that she had received a listing of special exceptions that had been approved since 2005 and there were 24 approved. Since 2010 there had been 13 approved and one was withdrawn out of the 12 there has been only four in the historic district. She stated that she was concern with the historic district as well but she said Council needed to be honest about how many special exceptions had been issued in the historic district. Three were for the Courthouse and one for the Hanover One project. She said Council was the only ones responsible for approving special exceptions. Upon a motion and as recommended Vice-Mayor Ellis moved to approve Ordinance 14-15, first read approved, amending the Commercial Downtown Zoning District regulations pertaining to mixed use; motion was seconded by Councilor Devine; and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Ellis, Devine, Howe, Paolucci and Solley. Nays (1) Councilor Kelly. Presentation of the City Manager’s Budget for Fiscal 2015. City Manager Cameron presented the proposed budget and the total was $84.4 million a 3.6 percent increase over the current year adopted budget. It reflects relatively flat operating 18559 Regular Session 03/11/14 expenses compared to the prior year. Major expenses contribute to rising costs to employee benefits, mandatory obligations for services provided by regional agencies, riverfront park balloon debt service payment to the EDA, and the contribution to the City Public Schools. There were no proposed adjustments to the tax rates; this will make the fourth year without a tax increase. There are no proposed new programs; the City will maintain the current level of services to public safety, public works, parks and recreation, facilities maintenance, economic development and tourism, planning and development services and government administration. He added that this would be a challenge as we live in a growing community. Major changes are City Schools which they are up $350,000, year three of the states mandated contribution plan is up $162,000 in the general fund, the health insurance was up $692,000 in the general fund, the riverfront park debt fund associated with the acquisition of the Masonic Lodge was $750,000, Rappahannock Regional Jail operations was up approximately $400,000 and the transfer to capital was up $465,000. He noted that with the exception of the capital transfer the expenditure increases was offset by modest growth in operating revenues. The revenue forecast show a year over year increase of $1.8 million in total for the general fund operating revenues. Most of the revenue growth comes from property tax, meals tax and sales tax. Mr. Cameron added that he was please to recommend a strong Capital Improvements Program, many of the capital improvements are financed through cash reserves. Some of the projects are finance by recommended bond issue that proposed in 2015 and some are finance through State and Federal revenues. Major projects include Fall Hill Avenue widening and I-95 bridge replacement, technology replacements and enhancements in various departments, implementation of a police camera system, 18560 Regular Session 03/11/14 replacement of a 1986 fire truck, systematic replacement of all self-containing breathing apparatus used by firefighters, updating of the Comprehensive Plan, development of a Stormwater Management Plan, cleaning and renovation of the Rappahannock Canal, College Heights water system improvements, Normandy Village sewer system improvements, William Street system improvements, Charles Street sewer system improvements, Motts Run Water Treatment Plant upgrades, Riverfront Park overhead to underground utility conversion and the completion of the VCR Trail phases I, II, and III. In previous budgets, Mr. Cameron expressed the need to invest and replace aging infrastructure and he believes this recommended budget advances that goal. As recommended by the study done in 2012 the rates for the water will increase 9.5 percent for water and 7.8 percent for sewer service. Mr. Cameron noted that the most valuable assets of the City are the employees and the budget included significant paid cost for the pension plan and health insurance, but the budget does not include a raise for the employees due to no new revenues. He said he would like the Council to work with him to find a way to provided either a cost of living increase or a bonus for the staff. City Manager’s Report and Council Calendar (D14-118 thru D14- 119). 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: “Call Me FRED” the new Regional Tourism Blogger, Restaurant Week 2014 Continues Strong Annual Growth, Special Events Review Committee Approved 113 Events in 2013 and Police Canine and Officer Honored for Outstanding Work. Closed Meeting Approved (D14-120). Upon the motion of Councilor Paolucci, seconded by Vice-Mayor Ellis and passed by the following unanimously 18561 Regular Session 03/11/14 recorded votes, Council approved a closed meeting under the Virginia Freedom of Information Act, Code Section 2.2-3711(A)(7) to consult with the City Attorney about a lawsuit, City of Fredericksburg v. Gables Signs & Graphics, pending in the Fredericksburg Circuit Court, Where consultation in an open meeting would adversely affect the litigating posture of the public body. Ayes (7) Councilors Greenlaw, Ellis, Devine, Howe, Kelly, Paolucci, and Solley. Nays (0). Return to Open Meeting Approved. Upon the motion of Councilor Paolucci, seconded by Councilor Kelly and passed by the following unanimously recorded votes, Council approved a return to an open meeting. Ayes (7) Councilors Greenlaw, Ellis, Howe, Kelly, Paolucci, and Solley. Nays (0). Resolution 14-21 Approved Certifying Closed Meeting. Upon the motion Councilor Kelly approved Resolution 14-21 certifying the closed meeting; seconded by Councilor Solley and passed by the following unanimously recorded votes. Ayes (6) Councilors Greenlaw, Ellis, Howe, Kelly, Paolucci, and Solley. Nays (0). Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 9:46 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 18562