City Council

Public Hearing 05/10/16 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 May 10, 2016 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, May 10, 2016, beginning at 7:40 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 R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Assistant Economic Development Director Bill Freehling, Planning Services Director Charles Johnston, Zoning Administrator Michael Craig, Development Administrator Marne Sherman, Budget Manager Deidre Jett, and Clerk of Council Tonya B. Lacey. Notice of Public Hearings (D16-173 thru D16-182). The Clerk read the notice of the public hearings as they appeared in the local newspaper, the purpose being to solicit citizen input. Ordinance 16-15, First Read Approved, Setting the Real Estate Tax Rate at $0.77 Per Every $100.00 of Assessed Value of Real Estate for Fiscal Year 2017 (D16-173 thru D16-180). no speakers. Following staff review Councilor Devine moved to approve Ordinance 16-15, on first read, setting the 19325 Public Hearing 05/10/16 real estate tax rate at $0.77 per every $100.00 of assessed value of real estate for Fiscal Year 2017; the motion was seconded by Vice-Mayor Withers and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Liberty Place – Assistant Economic Development Director Freehling gave a brief overview of the Liberty Place mixed-use downtown development. The development is proposed by Tom and Kathy Wack. Liberty Place is a $46 million project in the blocks bordered by Douglas, Amelia, Winchester and William Streets next to the Free Lance-Star property. The project will include 44 residential condominiums which are designed as owner occupied units. There will be 30,000 square feet of Class A office space, which is expected to bring 100 highly paid office jobs to the downtown. Liberty Place will also include two restaurants and a variety of retailers; it will bring vibrancy to the William Street corridor. Liberty Place will also include public infrastructure, widened streets, brick sidewalks, underground utilities, attractive landscaping, a public plaza, colonial satellites, and more. It will also include a 273 space parking garage with two underground parking levels, which is a much needed amenity in this area. The City will lease 119 spaces and another 30 on nights and weekends. Liberty Place – Special Use Permit. Zoning Administrator Mike Craig presented the amendment to the conditions of the Special Use Permit (SUP) in a PowerPoint presentation. The presentation showed the changes in the project to include an increase in residential square footage, a decrease in the number of units, an increase in non-residential square feet and a decrease in restaurant square footage and an increase in office space. The parking garage showed an increased in the square feet and parking 19326 Public Hearing 05/10/16 spaces. He also showed comparisons between the SUP Plan and the site plan and the Generalized Development Plan (GDP) and the elevation approved in the 2014 SUP and the proposed site plan. Mr. Craig also showed the parking component comparison, the increased mass and the Amelia Street frontage comparison. See Doc16-174 for more information. Liberty Place – Right-of-Way Vacation. Development Administrator Sherman presented the right-of-way vacation. The purpose of the amendment to the vacation of the right-of-way was to update what was presented and approved at the August 12, 2014 meeting. In the approved ordinance, it included four conditions: landowner would conduct an archeological study, dedicate additional right-of-way along Winchester and Douglas Streets, final subdivision plats showing dedication and right-of- way to be recorded within 36 months of the August date and the development of the Liberty Place project as shown on the original GDP. The vacation request is similar to what was adopted in 2014. The developer would like to maximize the building potential and the overall use of the site. He is pushing the building out to accommodate 15 additional parking spaces within the garage. The developer continues to request .04 acres of right-of-way to be vacated along the south side of Amelia Street. The acreage equates to about ten feet of vacated right-of-way along Amelia Street. The developer proposes to dedicate the equivalent amount of right-of-way along the two frontages of Winchester and Douglas Streets. The public works department has ruled that this vacation would not adversely affect the ability to maintain existing and planned infrastructure along Amelia Street, but it would reduce the five existing parking spaces to four. Public Works also determined that the right-of way dedication along Winchester and Douglas Streets would 19327 Public Hearing 05/10/16 improve the maintenance and movement along those streets. The Planning Commission voted 4 to 3 to approve the vacation of the land. The proposed ordinance includes two conditions: landowner shall dedicate public right-of-way on Douglas Street and Winchester Street as shown in the plat, by recordation of an approved subdivision plat within 36 months of the date of the approved ordinance and the use of the vacated public right-of-way shall be limited to the development of the Liberty Place project, in substantial accordance with the GDP entitled “Liberty Place,” by Bowman Consulting, Job No. 5425-01-001, dated March 28, 2016, last revised April 29, 2016. Liberty Place – Air-Rights Lease. Mr. Freehling presented the air-rights lease at Liberty Place. The City Council was being asked to enter into a 60-year lease with Liberty Place Partners, LLC for the air space above the Amelia Street right-of-way. The Amelia Street side of the development includes six residential balconies that overhang the right-of-way below. The total encroachment of all six balconies is 258 square feet. The balconies do not over hang the sidewalk but the landscaped area between the building and the sidewalk. An air-rights lease is needed because the balconies are permanent improvements to the structure. Upon execution of the air-rights lease, Liberty Place Partners, LLC would pay an upfront fee of $500 to cover advertising costs associated with the public hearing. The lease includes safeguards to ensure the quality of construction and public safety. After the expiration of the 60-year lease, the agreement would either be renewed or the balconies would be removed. Charlie Payne, Hirschler Fleischer Law Firm, Mr. Payne stated that this had been a long road since the original SUP was approved in August 2014 and the project had evolved since. After working with the City on finding public parking opportunities this 19328 Public Hearing 05/10/16 initiated a redesign process and after submission of the site plans earlier this year staff determined that the design was not in substantial accordance or performance of the submitted GDP. He noted that his client listened to all the suggestions given by the Planning Commission and City Council and he hoped they had found a middle ground on the design. Mr. Payne noted that this was a redevelopment of an underutilized site which generated about $30,000 in tax revenue per year and the redevelopment would generate 2,500 percent more of a return, about $750,000 in tax revenue. The project would generate new jobs, including Class A office space. It would provide needed parking in the area, it would continue the revitalization of William Street corridor and the SUP would allow for a greater mix of residential uses. This project is a $46 million investment in the downtown and he noted this was one of the largest private investments in the City and it would happen in the near term. The project would provide significant infrastructure improvement along Winchester, Amelia and Douglas Streets. The project was redesigned for marketability and for parking purposes. Jack Holland, Principle and Eleanor Krause, Senior Associate and Project Manager for Liberty Place, MV&A Architects, presented a PowerPoint showing the elevations of Liberty Place. See D16-176 for more information. Ms. Krause noted that traditionally through history this area had larger commercial industrial projects on it; because of this they feel this project was appropriate for this site. Ryguy Mau Muhammed, 1112 Caroline Street, requested that there be a ban placed on tipping because he felt workers were using it to extort customers. Michael Everett, 1091 Winchester Street, spoke on several concerns he had with 19329 Public Hearing 05/10/16 this project. He stated that there had been no efforts in softening the look on Winchester Street. He was concerned because Winchester would have the two loading docks, the garage entrance as well as the loading dock of the tap house. He said this would increase the vehicle density on Winchester. He requested the Wack’s to sit down with those who will be affected the most by this traffic. He asked if they could flip the project and put the loading dock and the parking garage to the Douglas Street side. He felt their concerns were not being addressed. He said he would volunteer his time and efforts to meet with the Wack’s and the architects. Jeremy Harrison, 900 Barton Street, spoke in support of Liberty Place and he said since he’s moved here many of his views had changed since he bought his condo in 2007. He said community feedback was important and he said there was much to gain from Liberty Place. This project would help with the many parking issues in the area. He expressed his concern with the City using tax dollars for hiring a second architect to render their opinion on this project. Richard Harrison, 1304 Washington Avenue, spoke in favor of Council approving the Liberty Place project. He also was concerned with the City using taxpayer dollars to hire an architect and he felt it was unprecedented level of meddling in the project. Tom Only, 601 Amelia Street, spoke in favor of the project and he said he appreciated that Mr. Wack and Attorney Payne had taken the time to meet with him and a neighbor to address some of their concerns. He said they were also concerned with traffic and parking. They were appreciative of the softening of the Amelia Street side. He also wanted to be sure what was being approved was what was delivered. He said 19330 Public Hearing 05/10/16 overall he was happy with the changes. Doug Stewart, 307 Amelia Street, said he had known the Wack’s over 30 years and he said they have improved many eyesores in the City over the years such as the gas plant, Mill Race North and the Freeman Beverage Company. As a nearby resident he supports Liberty Place in its full scope. He said this project supports the parking issues in the area. Debby Girvan, 612 Hawke Street, spoke in support of Liberty Place. She said she was appreciative of the work done with the façade to address some of the concerns of the residents. She asked that Council not get caught up in the aesthetics of the project. She said design by committee does not work. She hoped Council would try to address the concerns of the traffic on Winchester Street. She said the City was in need of developments like this in the downtown. Anne Little, 726 William Street, stated that she and Tree Fredericksburg had worked with the Wack’s and the trees would help to mitigate much of the noise, pollution, stormwater and they would add to the aesthetics. She noted that they have added more trees than any other project in the area. She welcomed the development. Warren McIntyre, 1105 Princess Anne Street, stated he has known the Wack’s for over 30 years and they have restored many buildings and made them look good to fit into the community. He said they have shown compromise and they work well with people. He said this project would be good for the City and he hoped the City would support. Gary Blakesly, 1112 Charles Street, stated that he has spent a lot of time in Northern Virginia selling Fredericksburg and the common complaint was, there was not 19331 Public Hearing 05/10/16 enough parking. He said one of the main sources of income in the City is the taxes from the businesses and restaurants and the City must help them grow. He said he plans to bring more people into the City for events. He asked the Council to consider that those people would need places to park and businesses to go to. Danea Peckler, 1410 Prince Edward Street, commended the City for considering other design alternatives. She said this area had traditionally held smaller commercial development. She appreciated Council looking into the impacts. John Moss, 1015 Prince Edward Street, stated his opinion, that Fredericksburg tries to preserve the historic fabric and make it look like Williamsburg, but he added the City was not Williamsburg. He said part of Fredericksburg was bringing new development and businesses to the City. He feels it was important to bring this project to the City. Steven O’hare, 140 Caroline Street, stated that this project was necessary for the City. He said this project was transformative and he asked Council to support it. Ed Whalen, 1707 Princess Anne Street, said this project would bring revenue into the City and the City should look for projects that would help keep the tax base low. He commended the developer and the City for working together on this project. Caleb Lang, 6957 Running Mead Trail, spoke in support of the project. He said the parking was well needed in the area. He also noted that there were many developers who come here and build then leave but the Wack’s live here and will see this project every day. John VanZandt, 700 Hanover Street, spoke in support. He said Tom Wack was a good developer that does good things in the City. He said this was a great project and he 19332 Public Hearing 05/10/16 asked that Council approve the project. Attorney Payne said they respect the neighbors and members of the public and they would do their best to balance both the interest of the developer and interest of the community and he believes this project would accomplish that. Mr. Payne addressed some of the concerns about the parking garage. He said they tried to minimize the impacts of the community by placing awnings on the entrances, using certain grades and elevations to reduce lights and noise. He also noted that Winchester was the most appropriate street to use because it was the only two way street along the corridors. Mr. Payne also said that the most recent drawings would be submitted as part of the application and they would ask that they be supplemented. He said vehicle trips had been extensively looked at by the City and the applicant and there will be about 100-107 additional trips per day. He said evaluating this project in totality it was considered a net extensive positive for the community. Councilor Devine noted that she wished she had seen the elevations presented at the last meeting because all they saw was a sketch. She said they Wack’s were responsive to concerns about parking, amount of office space and residential space. She said she could not support what they saw last week which was very boxy. Councilor Devine explained that the reason the City consulted with an architect was because they were told the applicant had made the changes and the City needed help to see what the developer was doing. She said the positives were the parking, the office space and additional downtown residential units. She said the time taken has gotten the project to a better place. 19333 Public Hearing 05/10/16 Councilor Frye noted that the Council could only speak on the information that they were given and this was the first time they were presented with these changes. He said it was the responsibility of the Council to make sure the City was getting a good project. Vice-Mayor Withers agreed with previous comments and he thanked the Wack’s for working with the City. He said the City knew this was a great project and a project that the City wanted but the design was critical. He also said the City hired an architect to help them to articulate what the Council wanted. He said the project was better because of this. Councilor Ellis thanked the Wack’s for putting their capital at risk. He said the City desperately needed new tax revenue and this project would help in offsetting future tax increases. The parking helps to address some of the parking issues and he was looking forward to the Class A office space. Councilor Duffy said he was encouraged by the design presented and it was critical and important that it was done. Councilor Kelly said Council’s job was to provide the best quality of life for the citizens of the City. He said it was his job to be able to explain to the citizens how their money was spent and how spending the money benefited them and their quality of life. He said overall the project was good and a well-designed project. He was concerned with using tax dollars for the incentives and whether that would be the best use of tax-payers’ dollars. Councilor Kelly also expressed his concern with the parking he said the parking was not going to help in this area because much more parking would be needed. He felt the money spent on the small parking areas and the parking on this project could have 19334 Public Hearing 05/10/16 been used to build a garage. He asked if the project was worth the investment by the City. Councilor Ellis stated that the project was not designed to be a parking garage and it was not the intent to alleviate all the parking issues, the intent was to help alleviate some of the problems. He added that Sedona House had generated enough revenue to build a parking garage, Council needed to be design and built it. Councilor Ellis explained that using tax dollars to raise additional dollars was a good use of taxpayer’s money. Mayor Greenlaw added that this was an excellent project and this is a great contractor that lives here and would live with the results of it. She appreciated their willingness to invest in the community. She said this kind of partnership with a private developer was the way the City must go for parking because it makes sense to put parking under a building that is going to make money for the City. The project had a great return on investment for the City. Amending the Conditions Placed on the Liberty Place Special Use Permit Approved August 12, 2014, Which Increased the Residential Density from 24 to 36 Dwelling Units Per Acre on the Parcel at 605 William Street (GPIN 7789-04-0822) in the Commercial-Downtown (CD) Zoning District. – This item was not acted on and will be on the May 24 agenda for action. Ordinance 16-15, First Read Approved, Vacating a Portion of the Amelia Street Right of Way for the Liberty Place Mixed Use 19335 Public Hearing 05/10/16 Development (D16-178). – Vice-Mayor Withers made a motion to approve Ordinance 16-15, on first read, vacating a portion of the Amelia Street right of way for the Liberty Place mixed use development; motion was seconded by Councilor Ellis and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Ordinance 16-16, First Read Approved, Granting Liberty Place Partners, LLC a Sixty Year Lease for the Air Space Above the Public Right of Way in the 600 block of Amelia Street, for the Construction, Operation, Maintenance and Replacement of 11 Residential Balconies (D16-179). – Councilor Devine made a motion to approve Ordinance 16-16, on first read, granting Liberty Place Partners, LLC a sixty year lease for the air space above the public sidewalk in the 600 block of Amelia Street, for the construction, operation, maintenance and replacement of 11 residential balconies; motion was seconded by Councilor Ellis and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). Ordinance 16-17, First Read Approved, Designating the Block Located Between William, Douglas, Amelia, and Winchester Streets (GPIN#7789-04-0822) As the “Liberty Place Development Project Area” and Adopting Tax Increment Financing in this Area (D16-181 thru D- 182). – 3 speakers. Mr. Freehling presented a PowerPoint presentation which discussed the proposal which explains that Liberty Place, LLC would receive 45 percent of incremental real estate revenue for 10 years. The City would retain all other Liberty 19336 Public Hearing 05/10/16 Place revenues and the parking agreement would remain the same. The tax revenue is expected to generate incremental real estate revenue of about $410,000, other Liberty Place tax revenue would be about $340,000 totaling about $750,000 a year and increasing over time. The $750,000 does not include revenues from the garage or indirect revenue from the workers and residents. The office space will hold 90-120 jobs and the expected income would be $100,000 plus. This project would have an effect on the adjacent developments including the FLS building. The incremental real estate tax revenue would be approximately $410,000 and the developer would receive 45 percent about $185,000 for 10 years. After the 10 years, the City would get 100 percent of the real estate revenue. The incentives would only happen if the project was built. The incentives will be used to help cover some of the additional cost, such as the underground parking and to bring down the rents to bring well-paid office jobs to the downtown. See D16-182 for more information. The EDA stongly endorsed the incentives. Charlie Payne, Hirschler Fleischer Law Firm, added that underground parking was very expensive and partnering with the City and the incentives was a great mutual investment. He added that the City was receiving it at a discounted price. He added that there were many offices that would love to move to the City because it was in the center of the region. Vice-Mayor Withers asked what the percentage of office space that needed to be leased for the financing and he also asked the terms of the leases. 19337 Public Hearing 05/10/16 Tom Wack, 101 Pitt Street, stated that 80 percent of the office and retail had to be leased and the leases would run for 10 years and he was confident they would meet that 80 percent. Mr. Withers said he was struggling with using a TIF for restaurants when there were restaurants already in the area and Mr. Payne noted that they redesigned and eliminated one restaurant and turned it into office space because of this concern. Councilor Frye requested that the developer make an effort to hire within the 22401 zip code for the development of this project. Mr. Payne explained that the Wack’s were long time employers in the City and they do their best to hire within. Vice-Mayor asked were there any arrangement to have the construction employees park in other places while they were working and Mr. Payne said they would work with the City to find the best option. Rupert Farley, 1305 Caroline Street, stated that he was a big fan of mixed use project but he was not a fan of using taxpayer’s money for subsidies or bailouts. He expressed his concern for using taxpayer’s money to pay for parking. Councilor Ellis made a motion approve Ordinance 16-17, on First Read, designating the block located between William, Douglas, Amelia, and Winchester Streets (GPIN#7789-04-0822) as the “Liberty Place Development Project Area” and adopting Tax Increment Financing in this area; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, and Frye. Nays (1). Councilor Kelly. 19338 Public Hearing 05/10/16 Adjournment. There being no speakers to come before the Council at this time. Mayor Greenlaw Declared the hearing officially adjourned at 10:05 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 19339 Public Hearing 05/10/16 [This page intentionally left blank.] 19340 Regular Session 05/10/16 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 May 10, 2016 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, May 10, 2016, 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 R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Assistant Economic Development Director Bill Freehling, Planning Services Director Charles Johnston, Zoning Administrator Michael Craig, Development Administrator Marne Sherman, Budget Manager Deidre Jett, 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 Patrick Swartz at this evening’s meeting. Proclamation National Association of Letter Carriers Stamp Out Hunger National Food Drive (D16-171). Mayor presented a proclamation, 19341 Regular Session 05/10/16 proclaiming May 14, 2016 as National Association of Letter Carriers Stamp Out Hunger National Food Drive Day and she asked for an abundance of community participation in this commendable effort. Paula Schenenmann thanked the Mayor for the proclamation and stated that last year they collected over 72,000 pounds of food and it will stay in the community at the local food bank. Ms. Schenenmann was supported by Postmaster Phil Butler, Robert Gunneal and Alphanso Cologne. Proclamation for Marine Corps Historic Half Day (D16-172). Mayor Greenlaw presented a proclamation, proclaiming Sunday, May 15, 2016, Marine Corps Historic Half Day and she encouraged the citizens of the community to cheer, volunteer and welcome the thousands of participants and visitors to our City. She also urged Fredericksburg citizens to embrace the mission of the Marine Corps Marathon by leading a healthy and active lifestyle, generating community spirit and by supporting the men and women of the United States Marine Corps in this endeavor. Mr. Rick Nealis thanked the City for all it does to support the Marine Corps Historic Half and he said he hoped the event benefits the City’s economy. Public Hearings Conducted (D16-173 thru D16-182). The regular session was recessed in order to conduct the scheduled public hearings and immediately reconvened upon their conclusion. Citizen Comment. The following speaker participated in the citizen comment portion of this evening’s meeting. Rupert Farley, 1305 Caroline Street, stated that he disagreed with the approach Public Works was taking on replacing the traffic lights in the downtown. He suggested 19342 Regular Session 05/10/16 placing black light post on each corner instead of the proposed mast arm. He said they were not historic and neither were the illuminated street signs. Council Agenda Presented. There were no items presented to Council for discussion. City Manager’s Consent Agenda Accepted for Transmittal as Recommended (D16-183 thru D16-186). Following review and as recommended Councilor Kelly moved approval of the City Manager’s consent agenda items; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye and Kelly. Nays (0). • Resolution 16-37, Approving the 2016-2017 Community Development Block Grant Annual Action Plan (D16-183). • Resolution 16-38, Approving the Virginia Juvenile Community Crime Control Plan for Fiscal Years 2017-2018 (D16-184). • Transmittal of a Resolution Assigning $1,250,000 of General Fund Unassigned Balance to a Stabilization Reserve for the Rappahannock Regional Jail, and Adopting a Policy to Govern its Use (D16-185). • Transmittal of Boards and Commission Minutes o Recreation Commission - March 17, 2016 (D16-186). Adoption of Minutes. Councilor Ellis moved approval of the April 26, 2016 Regular Session minutes; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). 19343 Regular Session 05/10/16 Resolution 16-36, Second Read, Appropriating Funds for Fiscal Year 2017 Beginning July 1, 2016 Through June 30, 2017 (D16-187). Councilor Kelly moved to approve Resolution 16-36, on second read, appropriating funds for Fiscal Year 2017 beginning July 1, 2016 through June 30, 2017; motion was seconded by Vice-Mayor Withers. Councilors Duffy and Devine disclosed that they were members of a business, profession, occupation or group of three or more members affected by the transaction, namely they are employees of the Fredericksburg Public School system. Councilors Frye and Ellis disclosed that their spouses are members of a business, profession, occupation or group of three or more members affected by the transaction, namely they are employees of the Fredericksburg Public School system. Councilor Ellis explained that he was voting against the budget because of the negative impact on the teachers. He stated that this would pass on the increased cost of healthcare to the teachers and they would not receive the 1½ cent cost-of-living (COLA). He said he hoped the school board would find a way to give the teachers the COLA increase. Councilor Duffy said he was disappointed that the Council could not close the gap more in the schools budget but he understood because the City’s budget was very lean therefore he could support the budget. Councilor Devine echoed Councilors Ellis and Duffy but stated there were other options in the school boards purview to figure out how to give the teachers what they desire. 19344 Regular Session 05/10/16 Councilor Frye said because there were no real estate increases he could support the budget. The motion passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Withers, Devine, Duffy, Frye, and Kelly. Nays (1). Councilor Ellis. Resolution 16-39, First Read, Amending the Fiscal Year 2016 Budget by Appropriating $150,000 of Fund Balance for the Fredericksburg Area Museum and Cultural Center (D16-188). After staff presentation Councilor Kelly moved to approve Resolution 16-39 on first read, amending the Fiscal Year 2016 budget by appropriating $150,000 of fund balance for the Fredericksburg Area Museum and Cultural Center; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Motion to Suspend the Rules. In order to place Resolution 16-39 on for second read Councilor Kelly moved to suspend the rules; the motion was seconded by Vice-Mayor Withers and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Resolution 16-39, Second Read, Amending the Fiscal Year 2016 Budget by Appropriating $150,000 of Fund Balance for the Fredericksburg Area Museum and Cultural Center. After staff presentation Councilor Kelly moved to approve Resolution 16-39 on second read, amending the Fiscal Year 2016 budget by appropriating $150,000 of fund balance for the Fredericksburg Area Museum and Cultural Center; motion was seconded by Councilor Devine and passed by 19345 Regular Session 05/10/16 the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Resolution 16-40, Granting the Non-Exclusive License to Catesby Payne, D/B/A Fly Fitness Inspiration Studio, LLC, to Provide Guided Bicycling and Running Tour Services in the City (D16-189). After staff presentation Councilor Devine asked how soon the business would be up and running because she wanted to be sure they received a full year license. Ms. Hedelt said she could have the year begin from the date of the signing of the agreement. Councilor Devine moved to approve Resolution 16-40, granting the non-exclusive license to Catesby Payne, D/B/A Fly Fitness Inspiration Studio, LLC, to provide guided bicycling and running tour service and she added that the license would begin from the date of the signing of the agreement; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Ordinance 16-18, First Read, Adopting a Trust for Post- Employment Benefits Other than Pensions (D16-190). After a brief staff summary Councilor Kelly moved to approve Ordinance 16-18, on first read, adopting a trust for post-employment benefits other than pensions; motion was motion was seconded by Councilor Ellis and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Appointment of Citizen Member of the Local Finance Board for the Other Post-Employment Benefits Trust. Vice-Mayor Wither made a motion 19346 Regular Session 05/10/16 to appoint Nancy Collins as the citizen member for the OPEB Trust; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). Resolution 16-41, First Read, Amending the Fiscal Year 2016 Budget by Appropriating $1,000,000 of Fund Balance for the Establishment of a Trust for Other Post-Employment Benefits (D16- 191). After a brief staff summary Councilor Kelly moved to approve Resolution 16-41, on first read, amending the Fiscal Year 2016 budget by appropriating $1,000,000 of fund balance for the establishment of a trust for other post-employment benefits; motion was motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Withers, Devine, Duffy, Ellis, Frye, and Kelly. Nays (0). City Manager’s Report and Council Calendar (D16-192 thru D16- 193). 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: FRED Transit Driver Finishes in 1st Place in 2016 State Roadeo Competition, Fredericksburg Safety Program Manager Wins Risk Management Award, The Treasurer’s Association of Virginia Chooses Fredericksburg as Conference Site, Marine Corp Historic Half and Semper 5ive Comes to Town on May 15, Farmer’s Market Season Begins, Parks and Recreation Summer Brochure, Earth Day Update, New Municipal Lot Underway, Wellness Committee Sponsored Health Assessments and Fredericksburg Police Department 2015 Annual Report. 19347 Regular Session 05/10/16 Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw Declared the meeting officially adjourned at 10:33 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, CMC 19348