City Council

Public Hearing 08/26/14 CITY OF FREDERICKSBURG, VIRGINIA HON. MARY KATHERINE GREENLAW, MAYOR HON. WILLIAM C. WITHERS, JR., VICE -MAYOR, WARD TWO CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. BRADFORD C. ELLIS, WARD ONE HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street HON. CHARLIE L. FRYE, JR., WARD FOUR Fredericksburg, Virginia 22401 August 26, 2014 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, August 26, 2014, beginning at 7:33 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw, Vice-Mayor William C. Withers, Jr. and Council members Kerry P. Devine, Dr. Timothy P. Duffy, Bradford C. Ellis, Charlie L. Frye, Jr. and Matthew J. Kelly. Also Present. City Manager Beverly Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Assistant City Attorney Robert Eckstrom, Assistant Director of Public Works David King, Clerk of Circuit Court Jeff Small, Assistant Economic Development Director Bill Freehling, and Clerk of Council Tonya B. Lacey. Notice of Public Hearings (D14-333). The Clerk read the notice of the public hearings as they appeared in the local newspaper, the purpose being to solicit citizen input. Ordinance 14-32, First Read Approved, Granting a Fifteen-Year Non-Exclusive License to Extenet Systems, Inc. to Install, Maintain, and Use Telecommunication Cable and Equipment in City Right-of-Way (D14-333). – No speakers. As recommended Councilor Kelly moved approval of 18723 Public Hearing 08/26/14 Ordinance 14-32, on first read, granting a fifteen-year non-exclusive license to Extenet Systems, Inc. to install, maintain, and use telecommunication cable and equipment in city right-of-way; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Suspension of the Rules. In order to place Ordinance 14-32 on for second read Councilor Ellis motioned to suspend the rules; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Ordinance 14-32, Second Read Approved, Granting a Fifteen- Year Non-Exclusive License to Extenet Systems, Inc. to Install, Maintain, and Use Telecommunication Cable and Equipment in City Right-of-Way (D14-333). – Councilor Kelly moved approval of Ordinance 14-32, on second read, granting a fifteen-year non-exclusive license to Extenet Systems, Inc. to install, maintain, and use telecommunication cable and equipment in city right-of-way; motion was seconded by Vice-Mayor Withers and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Adjournment. There being no speakers to come before the Council at this time, Mayor Greenlaw declared the hearing officially adjourned at 8:59 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor 18724 Public Hearing 08/26/14 Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 18725 Public Hearing 08/26/14 [This page intentionally left blank.] 18726 Regular Session 08/26/14 CITY OF FREDERICKSBURG, VIRGINIA HON. MARY KATHERINE GREENLAW, MAYOR HON. WILLIAM C. WITHERS, JR., VICE -MAYOR, WARD TWO CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. BRADFORD C. ELLIS, WARD ONE HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street HON. CHARLIE L. FRYE, JR., WARD FOUR Fredericksburg, Virginia 22401 August 26, 2014 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, August 26, 2014, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw, Vice-Mayor William C. Withers, Jr. and Council members Kerry P. Devine, Dr. Timothy P. Duffy, Bradford C. Ellis, Charlie L. Frye, Jr. and Matthew J. Kelly. Also Present. City Manager Beverly Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Assistant City Attorney Robert Eckstrom, Assistant Director of Public Works David King, Clerk of Circuit Court Jeff Small, Assistant Economic Development Director Bill Freehling, and Clerk of Council Tonya B. Lacey. Opening Prayer and Pledge of Allegiance. Council was led in prayer by Councilor Matthew J. Kelly followed by the Pledge of Allegiance led by Mayor Mary Katherine Greenlaw. Officer Recognized. Mayor Greenlaw recognized the presence of Officer Leo Manster at this evening’s meeting. Presentation from Diamond Nation Regarding Proposed Minor League Stadium and Baseball Tournament and Training Facility in 18727 Regular Session 08/26/14 Celebrate Virginia South (D14-325 thru D14-326). Jack Cust, Managing Partner for the baseball project showed a short video about Diamond Nation and he presented a PowerPoint presentation. In the PowerPoint presentation he discussed the 2013 Baseball Deal, What Went Wrong, the 2014 Baseball Deal, the Fuller Report and the City’s Options. See D14-325 for more information. Presentation from Habitat for Humanity (D14-326.1). Mr. Thomas Carlson, Executive Director presented a PowerPoint presentation that gave a brief history of the Habitat for Humanity. He discussed the new vision, the Restore relocation into the City near Gold’s Gym, A Brush With Kindness (ABWK) projects, doing priority builds in each jurisdiction for law enforcement, firefighters/EMT, teachers and veterans. He also asked for the City’s help with condemned properties, tax delinquent properties and blighted properties. See D14-332.1 for more details. Citizen Comment. The following speakers participated in the citizen comment portion of this evening's meeting. Anne Little (D14-327 thru 329), 726 William Street, requested that City Council reject the current proposed baseball deal she said they do not want the City to spend their tax dollars on a private business. She also spoke to the Fuller Report and how it does not differentiate between City hotels and County hotels as well as City Restaurants and County restaurants. For more information see (D14-327). Dr. Anthony Cantenese, said the baseball idea had possibilities but he spoke against what the City was being presented and stated that it was unacceptable. He said the City needed to consider the present discounted value when making any deals related to the baseball project. He noted that the City giving money to a private business was very 18728 Regular Session 08/26/14 dangerous and said it was a terrible principle to violate. He noted the challenge of how to ensure the benefits come to the City and not the surrounding counties. He suggested moving forward with the original proposal because he felt that was a reasonable proposal. Edward Allison, 1005 Ring Drive, stated that the primary goal of the baseball project was to provide additional revenue for the City, but he wanted to know what it would cost and how the City would pay for it and how that would feed into benefits for the City. Mr. Allison addressed the current outstanding bond principle as well as outstanding projects the City has and he asked Council to please consider that when making any decisions. He also noted that this was a revenue neutral project. Hap Conners, 13705 General Slocum Court, 22407, spoke in support of the baseball project. He offered his support as a CTB member and other vehicles to refine negotiations on the project. He said he thought it was good for the community and it enhances the City’s brand. He said in order to keep people in the area, the area must be creative and this is a way to keep the college students here as well as other young people. The City must bring things here for them to do. He also noted that this was a great opportunity to take advantage of the demographic changes. Tom Byrnes, 209 Fauquier Street, spoke in support of the baseball project. He spoke because there was a lot of misinformation going around. He noted this was a $26 million investment and the City could double its profits in 20 years. He added that since Dr. Stephen Fuller, a top economist stated this was a great project the City should move forward with it. Mr. Byrnes also gave an example of how Spotsylvania County was able to move forward with the Cosner Corner project and to have money put aside for transportation. He said the same could be done for the City. 18729 Regular Session 08/26/14 Roy Gratz (D14-330), 1007 Albert Reynolds Drive, spoke in support of baseball in the City, but he opposed to the government providing excess support to private businesses. He also suggested the City have its own economic analysis done to project the revenues and tax rebates before any decisions are made on this project. See document 14- 330 for more information. Patricia Chen (D14-331), 114 Huntington Hills Lane, spoke against the baseball proposal. She said it was not a good use of the City’s limited resources. She said there are numerous choices for people if they wanted to attend a baseball game, high school, college, Richmond, Woodbridge, Washington, DC and Maryland. See document D14-331 for more information). Michael Hirsch, 200 McConkey Street, spoke in regards to the baseball project. He asked Council not to move forward. He said history has shown that very few publicly funded stadiums have ever given a good rate of return on investments. He said the request of $18 million before the project has begun was cause for great concern. He asked that Council take the much needed time to further collect data and exercise budget restraint. Bobby Dukes (D14-332), 105 Virginia Lane, 22405, he said he and his wife work in the City and spend 90-95% of their disposable income in the City. He spoke in support of Dr. Stephen Fullers work and he asked the Council to give Dr. Fullers report great consideration and he hoped the City would move forward with the project. Public Hearing Conducted. The regular session was recessed in order to conduct the scheduled public hearings and immediately reconvened upon their conclusion. Consideration of Proposal from Diamond Nation Regarding Construction of a Minor League Stadium and Baseball Training and 18730 Regular Session 08/26/14 Tournament Facility in Celebrate Virginia South (D14-346). Councilor Kelly made a motion to continue discussions with Diamond Nation about pruning together a deal for Diamond Nation and moving the Suns to Fredericksburg to commence and bring something back to Council by the next meeting and to direct staff to get the City’s Financial Advisor and Bond Counsel to sign any agreements and bring a report back to Council; motion was seconded by Councilor Ellis. Councilor Kelly noted that he has been involved in this project for about two years and he said he has spent a lot of time reviewing the Winchester model. He also looked at several leagues and talked to owners of other teams and decided this was a good deal for the City. He spoke on the future debt of the City and how taxes would have to be increased in order to pay for these debts and he said the City must come up with ways to make revenue. Councilor Kelly also touched on the unique deal that the team was paying for majority of the project. He discussed the population and how it would double in the next 30 years. He said it would be a plus to have those county residents come in the city and spend their money at the baseball stadium. He explained that there are many other factors that were not considered in the Fuller report that would benefit the City. He said any projects that come to the city must give a maximum return and he believes this project would. Vice-Mayor Withers stated that he was not questioning whether this would be an economic engine for the City. He said the larger question is whether putting such a large amount of money up front was worth the risk. He said this is a great project, but he is not convinced. He expressed his concern with the parameters that Dr. Fuller may have been under when completing the report and another concern was that his report didn’t show any 18731 Regular Session 08/26/14 negatives. Councilor Duffy thanked everyone for all the hard work to this point and he said he has questions with the amount of money that the City would have to put up front. He would like a better since of the costs and he thought a study on a wider scope would be helpful. He agreed that because of the number of financial issues facing the City the City would need public-private ventures to build up and try to meet those needs. Councilor Devine said she appreciated all the public debate that this project has spurred and she said it helps Council to address issues. She noted how different this proposal looked from the original and how Diamond Nation proposed an investment of 45% partner up front whereas before they were proposed to be approximately 23-24% partner. She noted in Diamond Nations proposal that they would be responsible for any future over runs and she asked why not now? She noted that in the August 21 letter it stated they would have scholarship and interns but this was already in the old agreement. Councilor Ellis also agreed that the City was facing revenue shortfalls and said the City must have projects that will generate revenue and the City must be able to differentiate itself from other areas and tap into those disposal incomes. He said if the City does make additional investment into the project he said there was expectations that support additional investment. He noted that there was work to do before the City could get to an agreement, but it has to be viable. He disagreed with those opposing to use public funds in a private investment he said that public-private partnerships is the way of the future. Councilor Frye noted all the work that had been done of the years. He said if additional funds were needed the partners should have come sooner so there would be 18732 Regular Session 08/26/14 ample time to do everything. He felt as though the partners were almost demanding the money. He said in the future there needed to be some collaboration on how to invest in future projects. Vice-Mayor Withers added that he is more in favor of performance base incentive and not up front incentives but he hoped the City and the partners could get an agreement in a reasonable time. Mayor Greenlaw echoed Councilor Devine’s statement on all the Citizens participation. She appreciated the work of Diamond Nation and their partners and for their interest in the City. She said because of the potential opportunities she supported the original agreement and because of that she would like to continue to make this project work. She said it is abundantly clear to everyone that the bottom line is the City’s return on investment. She said while negotiating they would take into considerations the five questions the City Manager proposed. She said they take it serious when considering bonds and how they are going to be paid. She added that there was a limit on how much the City could borrow because it will affect the City’s credit rating. The motion passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Resolution 14-65, Approved, Amending the Fiscal Year 2015 Budget by Approving an Additional Deputy Circuit Court Clerk. (D14- 342). Upon a motion and as recommended Councilor Devine moved to approve Resolution 14-65, amending the fiscal year 2015 budget by approving an additional Deputy Circuit Court Clerk; motion was seconded by Councilor Ellis and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Withers, Devine, Duffy, Ellis 18733 Regular Session 08/26/14 and Frye. Nays (1). Councilor Kelly. Council Agenda Presented. The following items were presented to Council. 7A. Joint Work Session with Planning Commission - Comprehensive Plan Update – Vice-Mayor Withers Joint Work Session with Planning Commission - Comprehensive Plan Update. Vice-Mayor Withers stated there were a lot of projects coming up and he suggested meeting in a joint work session with the Planning Commission to review what’s going on with the Comprehensive Plan. He said he would like to discuss where the City wants to go and how to get there. Vice-Mayor Withers made a motion recommending a joint work session with the Planning Commission to discuss the Comprehensive Plan; motion was seconded by Councilor Kelly. Mayor suggested allowing the City Manager and the Planning Director to come up with the best time to hold this meeting. Vice-Mayor was agreeable to that. Councilor Kelly said he echoed Vice-Mayor Withers comments he said he wants a sustainable Comprehensive Plan that will be unique looking at the sustainability and future economic development opportunities in the City. He said few Comprehensive Plans look beyond land use and zoning. The motion passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). City Manager’s Consent Agenda Accepted for Transmittal as Recommended (D14-334 thru D14-338). Following review and as recommended, Councilor Kelly moved approval of the remaining City Manager's consent 18734 Regular Session 08/26/14 agenda item; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). • Transmittal of the FRED Transit Progress Report – July 2014 (D14- 334). • Ordinance 14-30, Second Read, Combining the Functions of the Rappahannock Area Office on Youth into the Group Home Commission, and Approving an Agreement to Reorganize and Rename the Regional Group Home Commission to Reflect the Combined Function (D14-335). • Transmittal of Boards and Commission Minutes o Board of Social Services – July 10, 2014 (D14-336). o Economic Development Authority – July 14, 2014 (D14-337). o Fredericksburg Clean and Green Commission – June 9, 2014 (D14- 338). Adoption of Minutes. Councilor Kelly moved approval of the August 12, 2014 Public Hearing and Regular Session minutes; motion was seconded by Vice-Mayor Withers and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Appointments to the Group Home Commission – Councilor Timothy Duffy and Assistant City Manager Mark Whitley (D14-339). Councilor Devine moved to appoint Vice-Mayor William C. Withers, Jr. and Vice-Mayor Withers asked that the motion be withdrawn. Councilor Devine agreed to withdraw. 18735 Regular Session 08/26/14 Vice-Mayor Withers stated that he was on a lot of Boards and that he had spoken with Councilor Duffy who agreed to serve. Vice-Mayor Withers moved to appoint Councilor Duffy as the representative to the Group Home Commission; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Councilor Kelly moved to appoint Assistant City Manager Mark Whitley as the City Manager’s recommended representative; motion was seconded by Vice-Mayor Withers and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Appointment to the Main Street Initiative Board – Matthew Kelly (D14-340). Vice-Mayor Withers moved to appoint Councilor Kelly to the Main Street Initiative Board; motion was seconded by Councilor Frye and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Resolution 14-66, First Read Approved, Amending the Fiscal Year 2015 Budget by Appropriating Assets Forfeitures Funding and Police Donations and Grants. (D14-341). Upon a motion and as recommended Councilor Kelly moved to approve Resolution 14-66, on first read, amending the fiscal year 2015 budget by appropriating assets forfeitures funding and police donations and grants; motion was seconded by Vice-Mayor Withers and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). 18736 Regular Session 08/26/14 Resolution 14-67, Approved, Authorizing Use of $1,815,510 of Motor Fuels Tax Funds for Various Transportation Projects. (D14-343). Upon a motion and as recommended Councilor Kelly moved to approve Resolution 14-67, authorizing use of $1,815,510 of motor fuels tax funds for various transportation projects; motion was seconded by Councilor Devine and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Resolution 14-68, Approved, Adopting a Policy to Govern Remote Participation in City Council Meetings by Members Unable to Attend Due to an Emergency or Personal Matter. (D14-344). Upon a motion and as recommended Councilor Devine moved to approve Resolution 14-68, adopting a policy to govern remote participation in city council meetings by members unable to attend due to an emergency or personal matter; motion was seconded by Councilor Ellis and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Resolution 14-69, Approved, Adopting Rules for Conducting Land Use Public Hearing (D14-345). Upon a motion and as recommended Councilor Kelly moved to approve Resolution 14-69, adopting rules for conducting land use public hearing; motion was seconded by Vice-Mayor Withers and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). City Manager’s Report and Council Calendar (D14-347 thru D14- 18737 Regular Session 08/26/14 348). 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: September – A Strong Month for City Meetings, City Retail Occupancies Increase to 94 Percent, ED/Tourism Conducts Training, Mayflower Tours Schedules Civil War-Focused Tours to Fredericksburg, Military Reunion Market Continues to be a City Focus, Active Shooter Training, Building Construction Report for July 2014. Closed Meeting Approved. Upon the motion of Councilor Kelly, seconded by Vice-Mayor Withers and passed by the following unanimously 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 regarding legal matters related to the Diamond Nation August 21, 2014 economic incentive proposal. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Return to Open Meeting Approved. Upon the motion of Councilor Devine, seconded by Councilor Ellis and passed by the following unanimously recorded votes, Council approved a return to an open meeting. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Resolution 14-70, Approved, Certifying Closed Meeting. Upon the motion Councilor Devine approved Resolution 14-70 certifying the closed meeting; seconded by Councilor Ellis and passed by the following unanimously recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 10:54 p.m. 18738 Regular Session 08/26/14 Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 18739 Regular Session 08/26/14 [This page intentionally left blank.] 18740