City Council

Regular Session 10/11/22 HON. MARY KATHERINE GREENLAW, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR HON. KERRY P. DEVINE, AT-LARGE CITY COUNCIL HON. MATTHEW J. KELLY, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 October 11, 2022 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, October 11, 2022, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw. Vice-Mayor Charlie L. Frye, Jr., Council members Kerry P. Devine, Dr. Timothy P. Duffy, Jonathan A. Gerlach and Jason N. Graham. City Council Absent. Matthew J. Kelly, death in his family. Others Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Director of Planning and Building Services Charles Johnston, Senior Planner Michael Craig, Zoning Administrator James Newman, Development Administrator Marne Sherman, Economic Development Director Bill Freehling, Assistant Director of Tourism Margaret Morris, Tourism Stadium and Sales Manager Victoria Matthews, Budget Analyst Donna Leahy and Clerk of Council Tonya B. Lacey. Opening Prayer and Pledge of Allegiance. Council was led in prayer by Vice-Mayor Charlie L. Frye, Jr. followed by the Pledge of Allegiance led by Councilor Jason N. Graham. 21521 Regular Session 10/11/22 Officer Recognized. Mayor Greenlaw recognized the presence of Lieutenant Rashawn Cowles, at this evening’s meeting. Congratulatory Letter for Eunice Keys Celebrating 102 Years (D22- 350). Mayor Greenlaw read a congratulatory letter to Ms. Eunice Keys in honor of her 102nd birthday. United Way Benefit Golf Tournament Check Presentation. Retired Assistant City Manager Doug Fawcett and Mayor Greenlaw presented a check to the Rappahannock United Way (RUW) in the amount of $12,514.07. This tenth annual tournament was held in early June. This City sponsored golf tournament is held to raise funds for the RUW. There were more than 120 golfers, 30 sponsors and several dedicated volunteers. This donation brings the total funds raised for the RUW during this tenth-year period to $130,000. Mr. Fawcett announced that the next tournament would be Monday, June 12, 2023 at Lee Hill Golf Club. Ms. Janel Donahue, President of the Rappahannock United Way, stated that the City was one of the best partner for being there for those who need in the community. She was elated for the funds raised by the City and she thanked the City for being there for its residents. She also noted that the city was the “TOP DOG”, winning year after year. Consent Agenda Accepted for Transmittal as Recommended (D22- 351 thru D22-356). Councilor Gerlach moved approval of the City Manager’s consent agenda; motion was seconded by Councilor Duffy and passed by the following recorded 21522 Regular Session 10/11/22 votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (0). • Transmittal of the Boards and Commission Minutes. o Architectural Review Board Minutes – May 23, 2022 (D22-351). o Architectural Review Board Minutes – June 13, 2022 (D22-352). o Architectural Review Board Minutes – June 27, 2022 (D22-353). o Architectural Review Board Minutes – July 11, 2022 (D22-354). o Architectural Review Board Minutes – July 25, 2022 (D22-355). o Economic Development Authority – August 22, 2022 (D22-356). Public Hearing (D22-357 thru D22-364). The regular session was recessed in order to conduct scheduled public hearings and immediately reconvened upon their conclusion. Citizen Comment. The following comments were given and/or submitted to be read during the citizen comment portion of this evening’s meeting. Hamilton Palmer, 1500 Caroline Street, spoke on Freedom of Information Act (FOIA) and how some embrace it and others do not. He explained to the public how to request and who they can request it from. He also noted that the City Clerk administers her FOIA responsibilities well. He warned that you may have to pay for City staff to retrieve requested information. He also spoke about the culvert project on Learning Lane, its costs in the amount of $124,823.56 and the hiring of an out of town firm, who’s work did not meet Virginia 21523 Regular Session 10/11/22 stormwater management requirements. He also noted that the consultant charged additional for services that should have been included in the original scope. Council Agenda Presented. The following items were presented to Council for discussion. 8A. Gun Give Back – Vice-Mayor Frye. Gun Giveback. Vice-Mayor Frye Reminded Citizens that any unwanted weapons they have in their homes could be taken to the Fredericksburg Police Department. He also stated that many feel like they have no one to turn to and they contemplate suicide and he offered to be there for them. Adoption of Minutes. Councilor Graham moved approval of the September 27, 2022 Regular Session minutes; motion was seconded by Councilor Gerlach and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (0). Citizen Transportation Advisory Committee Appointments – Jennifer Combs, Brett Bearce (D22-365). Councilor Graham moved to approve the appointments of Jennifer Combs and Brett Bearce to the Citizen Transportation Advisory Committee; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (0). Resolution 22-68, Approved, Approving the Fredericksburg 2023 General Assembly Legislative Program (D22-366). After a brief staff 21524 Regular Session 10/11/22 presentation Councilor Gerlach made a motion to approve Resolution 22-68, approving the Fredericksburg 2023 General Assembly Legislative Program; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (0). Resolution 22-69, Approved, Approving a Performance Agreement with SAJ Entertainment, LLC and the Economic Development Authority for Improvements to the Expo/Convention Center (D22-367 thru D22-368). After a brief staff PowerPoint presentation where Mr. Freehling explained the who, what, where, when, why and the how of the project he turned it over to Mr. Seth Silber, one of the owners of the Fredericksburg Nationals. Mr. Silber talked about the City and the importance of investing into the Expo Center in order for the facility to grow. He said this investment was important in order to attract more businesses to the facility. He explained that this would provide a greater tax base and allow the attraction of more events. Councilor Gerlach said one of the City’s goals is to have a top tier tourism effort and this could not happen without a top tier convention center. He said there must be investment in the future of the City’s tourism. He also noted that in 2019 the City earned nearly $9 million from people nearly an hour away who came here to spend their money. He said these tourism dollars help to keep real estate taxes down. Councilor Graham said after receiving a report from staff, he was heartened by what the City could proffer from this investment and he was in support. 21525 Regular Session 10/11/22 Councilor Graham made a motion to approve Resolution 22-69, approving a Performance Agreement with SAJ Entertainment, LLC and the Economic Development Authority for improvements to the Expo/Convention Center; motion was seconded by Councilor Devine. Councilor Duffy noted that this was an investment needed to keep things as they are, as well as to expand. He recognized the public-private partnership the City has in that area between the Expo Center, baseball team and the stadium. He said the city should be proud. Mayor Greenlaw agreed she said the Silber’s have proven themselves in the success of the stadium and the team and the great asset they have been to the community. She said it was gratifying that they have taken on the Expo Center. The Silber’s have been a great asset to the City. The motion passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (0). City Manager’s Report and Council Calendar (D22-369 thru D22- 370). City Manager Baroody directed the Council’s attention to the Manager’s Update: Community Workshop on Small Area Plan, Fredericksburg Sister Cities Fundraiser for Ukraine, Early Voting, Two-Way Traffic is Coming to Fall Hill Avenue, Washington Avenue and Maury Street, Veterans Day Procession, Parking Garage Fee Increases Begin November 1, Traffic Safety Initiative, Are You Subscribed to Fredericksburg Alerts, COVID-19 Vaccinations, Board and Commission Openings, The Parks, Recreation and Events Fall Catalog, Fall Programs and Fred Focus. 21526 Regular Session 10/11/22 Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 9:14 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council 21527 Regular Session 10/11/22 [This page intentionally left blank] 21528  CITY OF FREDERICKSBURG, VIRGINIA HON. MARY KATHERINE GREENLAW, MAYOR HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO Council Chambers, 715 Princess Anne Street HON. DR. TIMOTHY P. DUFFY, WARD THREE Fredericksburg, Virginia 22401 City Council Work Session October 11, 2022 Middle School Comprehensive Agreement Special Tourism District – Parking, Future of Expo Center Land Donation The Council of the City of Fredericksburg, Virginia held a work session on Tuesday, October 11, 2022, beginning at 5:30 p.m. in the Council Chambers of City Hall. Council Present. Mayor Mary Katherine Greenlaw (6:10 p.m.), Presiding. Vice-Mayor Charlie L. Frye, Jr. Councilors Kerry P. Devine, Timothy P. Duffy, Jonathan A. Gerlach and Jason N. Graham. Council Absent. Councilor Matthew J. Kelly, family death. Also Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Director of Planning and Building Services Charles Johnston, Senior Planner Michael Craig, Development Administrator Marne Sherman, Economic Development Director Bill Freehling, Assistant Tourism Director Margaret Morris, Tourism Stadium and Sales Manager Victoria Matthews, Budget Analyst Donna Leahy and Clerk of Council Tonya B. Lacey. Disclosures. Councilor Duffy disclosed that he was an employee of the Fredericksburg City Public Schools and he was able to participate in the discussions fairly, objectively and in the public interest. Vice-Mayor Frye disclosed that his spouse was an employee of the Fredericksburg City Public Schools and he was able to participate in the discussions fairly, objectively and in the public interest. Middle School Comprehensive Agreement. Assistant City Manager Whitley reported that two of the three major votes on the new middle school was ready for Council’s 1 consideration. The first was the approval of City Council as the appropriating body of the Comprehensive Agreement between First Choice, LLC and the Fredericksburg City Public Schools for the design and construction of the new middle school. This is considered the contract. The second item for approval will be the budget amendment in Fiscal Year 2023 to supplement the budget for the project. Both of these items are on the agenda for public hearing. Mr. Whitley stated that the Council may wish to hold the public hearing open for the Comprehensive Agreement. The third vote would be the bond ordinance and that would come before Council the second meeting in October. Mr. Whitley gave an overview of the new Middle School which will hold 1,100 students, grades 6-8 and it will replace the current middle school and that school will be converted into a new elementary school. The new middle school will be located at the intersection of Idlewild Boulevard and Gateway Boulevard. The City Schools have already been working through an Interim Agreement between the schools and First Choice which allows design to get underway. The first iteration of the Interim Agreement allowed the development of 35% plans which was completed in March at $1.5 million and contained in that agreement was the ability to extend up to 65% plans and on September 12 the schools executed that at the cost of $1.2 million. The design of the school is underway. Mr. Whitley said the major general business term was the cost. The Public-Private Education Facilities and Infrastructure Act (PPEA) envisions a process where the design-build works through a cost through several steps and they are at the first step, which is the Contract Cost Limit (CCL). The CCL is included in the Comprehensive Agreement. They listed a gross Comprehensive Agreement CCL of $75,580,000 and Mr. Whitley said the value of the two interim agreements could be deducted from that amount and it leave a net CCL of $73,075,000. Mr. Whitley explained that once the Comprehensive Agreement was finalized the design team, the City and the schools would continue working to finish the design and to see if there are more savings to be advanced through the project. This process will take the project to the second stage, which is the Guaranteed Maximum Price (GMP). The GMP will need to be established, and it is the not to exceed amount for the design- build team. He said there was a design-build contingency of $3.3 million and it requires 2 approval by the owner before use. There is also an owner’s contingency in the budget, but it is not a part of the contract, it is in the amount of $1.5 million. In the Comprehensive Agreement there is a shared savings clause and it provides that if the project comes in under the GMP amount the savings would be split. The schools would obtain 85% and First Choice 20%, but the First Choice teams amount is capped at $250,000. Mr. Whitley noted there were a few things that had not been negotiated including the design phase so that the GMP could be established. The material price fluctuation clauses and direct purchase clauses were also under negotiations. Mr. Whitley said the project budget was increased from $55.7 million to $74.78 million and it included the $1.5 million owner’s contingency and an additional half a million of City fund balance dedicated to school’s capital and the amounts from the State Construction Grants. There will be a bond issuance for the project and this will require an increase in revenues and will require a real estate tax increase. The new school will also have operating costs but they will not need to budget for those for another two years. The estimated operating costs are $2.425 million. Councilor Graham asked how much the tax increase would be and Mr. Whitley said it would be between $0.04-$0.06. Councilor Duffy asked for an update on the State Construction Grant and Mr. Whitley stated that this was a new program and the eligibility is determined by several requirements and he said the City met all those and the amount of support was based off the lesser or more distressed of two factors, the Local Composite Index (LCI) or the fiscal stress score in a report by the Commission on Local Government. The fiscal stress score is based off the median income, the tax burden and the tax effort as they measure it. The City has always had a low LCI score and the Local Government Commission has always scored the City as above average fiscal stress. Mr. Whitley explained that because of this the City would be eligible for 20 percent for the School Construction Grant ($14 million). He said when the report came out in July it was two years in the rears (2020) and the City was in the below average fiscal stress, and because of that, the State support fell from 20 percent to 10 percent. Mr. Whitley explained that because of the pandemic the City was starting to feel the fiscal stress by the end of that year. He said because of that they are going to ask the State to take a look at the average over the last several years. 3  Mr. Whitley noted that Mr. Baroody would be traveling to Richmond to meet with the Committee at the Board of Education and they are the Committee that would be looking at the suggestion and implementing the grant program. Councilor Devine said the City has been looking at this for some time although the numbers are hard to digest she wanted to thank staff for their work. She said this will be a worthy project. Mr. Whitley stated that staff recommends a first read on the budget, but Councilor Kelly requested that Council postpone action on the Comprehensive Agreement and hold the public hearing open until the next meeting. Mr. Whitley said staff was amendable to this request. Vice-Mayor Frye stated that he was in hopes the schools would consider project labor agreements to give people the opportunity to get certified and have local workers on the project. Special Tourism District – Parking. Mr. Craig presented a PowerPoint presentation and he gave an overview of the Special Tourism and Events District, the Existing Transect Map the Proposed Transect Map and the Proposed Zoning Overlay, Parking Lot Materials, Occupancy vs. Parking Regulations vs. the Transportation Network, Conference Center and Stadium Events, photos of Central Park and Celebrate Virginia and the Planning Commission Recommendations. See Attachment I for more information. Mr. Craig explained that unless there was a capacity of 10,000 we are losing out on mid- sized concerts. Mr. Craig explained how the shared parking would work with multi-events. Councilor Duffy asked if the Council would be updated on the plan to promote transit and other forms of transportation that will reduce parking needs and Mr. Craig said they would. Councilor Graham asked staff if they saw a regularly higher capacity or attendance at the Expo Center would there be a risk of this coming back for increasing parking requirements. Mr. Craig said there is always the risk but the ordinance could be adjusted. Councilor Graham said he would like to cap the parking as much as possible or make it a last resort option. He said he would like to maximize and leverage the transit options we currently have. He also mentioned that he would like to see this in FRED Transit’s strategic planning. 4  Future of Expo Center. Economic Development Director Freehling said this area is seen as a tourism district for the City. he said the stadium was deliberately located where it is because of the synergies with the Expo Center. Mr. Freehling presented a PowerPoint presentation to present a formal proposal for some investments in the Expo Center, which is a large economic driver for the City. He reviewed the Who, What, When Where, When, the Why and the How. He explained that the City would invest $500,000 in the Expo Center. They would invest $250,000 up front out of the Opportunity Fund, and $50,000 a year for five years. The what, is upgrades to the Expos Center HVAC, carpet, chairs, painting, lighting, safety, etc. He explained that the Expo Center has lost events because of the uncomfortable temperatures in the building. They will use $375,000 and invest it in the HVAC system and the remaining monies will be used on chairs, carpet and other subsequent upgrades. SAJ Entertainment will also invest $250,000 upfront. The Economic Development Authority (EDA) is likely to support and invest in an FXBG loan to SAJ Entertainment for the amount of $250,000. The EDA would be repaid over the five subsequent years. This agreement will ensure that Fredericksburg would remain in the name of the facility, they would get a satellite visitor center in two areas to display information on the City. He said having this permanent display would be significant because in 2019 170,000 went through the Expo Center and that is valuable marketing for the City and its tourism efforts. The City would also get placement on the Fred Nats Interstate 95 billboard. This exposes the City to another 100,000 people a day. Mr. Freehling said the facility needed investment because it had not been invested in for about 20 years. He reminded the Council of their priority Number 6, to create a top tier tourism effort and he said the Expo Center was a big part of that. He said in the report that Renaissance Planning did that this facility was a significant economic driver for the City. There is an $800,000 plus tax impact for the City, about $225,000 directly from the Expo Center. Renaissance took a look at what the City’s return on investment would be for the $500,000 investment and they said it would be a positive net value even with modest gains. Mr. Freehling said most localities own their convention centers and they invest in them routinely, but the City does not own this facility and this has been a benefit to the City. He said he believe the Silber Family, the Oakview Group and Marlene Kemp were all fully committed to 5 growing the business alongside the Fred Nats. Mr. Freehling asked the Council to support the five-year performance agreement between SAJ Entertainment, the City and the EDA. Mr. Seth Silber explained that they took over the Expo Center in February 2019 and two weeks later and the COVID pandemic hit and they had to shut down the business. He said they spent a couple of years putting money into it to keep it operating. Mr. Silber said they are optimistic about the future of the facility due to the team they have in place but they have faced tremendous difficulties with the facility, particularly the infrastructure. He explained how hard it is to get events to renew when the facilities HVAC is not working properly. He mentioned the other improvements needed such as décor, AV and other things. He said they cannot make all these improvements on their own. Mr. Silber said if the City is able to assist, this would be a huge boost for the business. Mr. Silber said he was greatly appreciative of the loan through the EDA in the amount of $250,000. He said they would immediately invest the $250,000 from the City and the $250,000 from the loan into the facility. He said the additional $50,000 a year would allow them to continue to make improvements over the next five years. Councilor Graham asked what modest gains were and Mr. Freehling explained that in the Renaissance report there were three different scenarios a three percent attendance growth, a one and a half percent growth and no growth. At three percent attendance growth it pencils out at three, five and seven percent discount rates, at one and a half attendance growth it pencils out at three and five percent discount rate and at zero percent it doesn’t pencil out. Councilor Devine asked for clarification on the conference center name which will have Fredericksburg or FXBG in it and no other governmental entity. She wanted to know if this meant there would not be a private entity in the name as well. Mr. Silber explained that they had considered selling naming rights for the convention center as an additional resource to allow them to invest in the facility. He said they were preliminary inquiries but it was not on the table at the moment but it could potentially bring in a significant source of revenue. He said keeping Fredericksburg or FXBG in the name was something everyone wanted to do. Councilor Duffy asked if the work would require the facility to shut down and Mr. Silber said the work could be done while they are open but they may have to shut down for a weekend or two. He said they were hopeful to get this work done before Christmas. 6  Mayor Greenlaw thanked Mr. Silber and his family for their investment in the community. She said this was a significant asset that lots of people come to visit. Land Donation. Ms. Sherman explained that the land donation was from the Spratt Family. The Spratt family owns several pieces of property along Alum Springs Road and the Blue-Gray Parkway. Much of the land is undevelopable for conventional projects with limited access unavailable from the Blue-Gray Parkway. She noted that the City had accepted a donation immediately east of this property as part of the Fredericksburg Park project. The Spratt’s are offering to donate 1.8 acres to the previous half acre the City already owns. Ms. Sherman said with no objection from the Council she would prepare a resolution for the Council to formally accept the donation. Councilor Gerlach said there was some talk about having a pedestrian walkway over the Blue-Gray Parkway and he asked if accepting this donation would dovetail this sort of project. Ms. Sherman said when they originally considered the donation request that was an option but based on the environmental features and the slopes it is unlikely they would use this tract, but it was an option they wanted to keep open. Ms. Sherman said the only downside to accepting the property was the maintenance. Adjournment. There being no further business to come before the Council at this time. Mayor Greenlaw declared the session officially adjourned at 6:54 p.m. ______________________ Tonya B. Lacey, MMC Clerk of Council City of Fredericksburg 7