City Council

Public Hearing 12/13/22 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 December 13, 2022 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, December 13, 2022, beginning at 8:20 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, attended remotely because he was “unable to attend the meeting due to a temporary medical condition that prevented his physical attendance” under FOIA., Jason N. Graham and Matthew J. Kelly. Others Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Police Chief Brian Layton, Director of Planning and Development Services Charles Johnston, Development Administrator Marne Sherman, Historic Resources Planner Kate Schwartz, Finance Director Robyn Shugart, Assistant Finance Director Richard Lawrence, Budget Analyst Donna Leahy, Economic Development Director Bill Freehling, Assistant Director of Tourism Margaret Morris and Clerk of Council Tonya B. Lacey. 21581 Public Hearing 12/13/22 Notice of Public Hearings (D22-439 thru D22-440). The Clerk read the notice of the public hearings as it appeared in the local newspaper, the purpose being to solicit citizen input. Mary Washington Monument Properties (D22-439 thru D22-440). No speakers. Assistant Tourism Director Morris thanked everyone who helped with this project. She reminded the Council that there was a letter of intent put forward to the Council and executed on August 9. It was paramount that there was preservation of the surrounding property and the house. Ms. Anne Darron of the Washington Heritage Museum (WHM) recognized the combined efforts of the City staff, the Memorials Advisory Commission, the WHM Board Members, staff and volunteers for advancing this vision. She said the WHM appreciates the opportunity, to be stewards of the Mary Washington Monument, Meditation Rock, the Caretakers Lodge and Gordon Cemetery. Ms. Darron was confident the WHM could help to redefine the property as a must see asset in the City by improving the accessibility and interpretation of the site. She said in the coming months the WHM would begin shaping the grounds, improving security and access to the monument and meditation rock, as well as increasing the visibility of the Caretakers Lodge. She said they would engage with professionals for the best methods to preserve and enhance the natural beauty of the site. Ms. Darron said the WHM was working on a small exhibit to be housed in the Connecticut Room of the lodge. She said there were plans underway to honor Mary Washington, highlight the monument and feature biographical information regarding 21582 Public Hearing 12/13/22 her life. Visitors will be able to enjoy a self-guided exhibit at no costs. The monument grounds will remain open to the public throughout the duration of the project. The interpretation of the site will be broadened each year by hosting small varied programs and classes for participants of all ages. The WHM will begin weaving this property into its portfolio of museums and it will be featured on its social media channels and their website. The museum staff will encourage visitors to continue their tour experience at the site. The WHM has identified preservation and beautification projects that the organization will need to undertake at the lodge and grounds. They have also identified reoccurring expenses such as utilities that can be absorbed in their budget, however large scale preservation and maintenance projects will necessitate new revenue streams. The WHM will identify additional grant opportunities, foundations and donors to supplement its current resources. Ms. Darron stated that after completion of the required maintenance projects WHM intends to take advantages of the lodges potential for improved office functionality. Having staff present will increase site supervision and allow staff to efficiently serve the patron who support their mission. She said they were enthusiastic about the challenge ahead. Planning and Building Services Director Johnston led Council through a PowerPoint presentation on the Special Use Permit to allow a museum and the Pitt Street right-of-way vacation. He began with an 1842 plat showing the three parcels, and a current GIS map and a topography map of the property. He also showed a 2022 plat 21583 Public Hearing 12/13/22 of the proposed boundary line adjustment and right-of-way consolidation plat. Mr. Johnston reviewed the proposal with the Council, the circumstances, the Planning Commission’s recommendation and the alternative recommendations. Historic Resources Planner Schwartz brought to the Council’s attention the baseline documentation report of the property, which was included in the Council documents. She said it was a point-in-time overview of every aspect of the property, grounds, the buildings and the overall condition. This will be accompanied by a photo point map, detailed photography of every aspect of the property and it will govern the future review of the condition of the property. This will be the tool they measure against when they review annually to ensure it is being held in good condition and any changes must be approved through an appropriate process. In addition to the property review, the property will remain in the historic district overlay so that any exterior alterations will continue to be under the Architectural Review Board (ARB) purview to approve. She also noted that the property had been called out in several places in the Comprehensive Plan including the historic preservation chapter updated in 2021. City Attorney Dooley noted that it was in 2015 when the Memorials Advisory Commission had written and said something needed to be done because the property had been vacant since 2011. She presented an overview of the two deeds that had been negotiated, the Deed of Gift and the Deed of Easement Agreement. The Deed of gift is the City Council conveying that the Monument property to the Washington Heritage Museum without charge but with certain expectations. 21584 Public Hearing 12/13/22 The second expectation is that the WHM will continue to own and operate the property and WHM has asked for a right of entry to go onto the undeveloped Hitchcock Street right-of-way to clear bamboo on the undeveloped Hitchcock right-of-way. The City Council will convey the property to the WHM and in turn they will grant back to the City the deed of easement which is broken into two major parts: the recreational easement and the historic preservation easement. The open space easement includes all the open areas of the property, with one condition. The easement covers the exterior of the property and buildings. It does not cover the interior of the lodge and the basic obligation is to maintain the property in good condition as it exists today as evidenced in the baseline report and the property will continue to be subject to ARB review. City Attorney Dooley further explained that with the open space easement being subject to certain conditions and the erosion that is occurring on the property and one of the elements of WHM development plan is to hire a civil engineer to advise them on what should be done with the erosion. If they require the temporary removal of those areas from public passage they will be able to implement that recommendation. Ms. Morris stated that this partnership will advance new interpretations and tell a broader story so that more citizens and travelers will be able to relate. It will also link more properties and the story will be magnified. Resolution 22-89, Granting a Special Use Permit to Washington Heritage Museums for a Museum Use at 1500 Washington Avenue, the Mary Washington Monument Caretaker’s Lodge (D22-429 thru D22-440). 21585 Public Hearing 12/13/22 Councilor Devine made a motion to approve Resolution 22-89, granting a special use permit to Washington Heritage Museums for a museum use at 1500 Washington Avenue, the Mary Washington Monument Caretaker’s Lodge, amended version; motion was seconded by Councilor Duffy. Councilors were thankful for the work and for WHM taking on this property to tell the story of this site. The motion passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 22-28, First Read Approved, Authorizing the Vacation of the Portion of the Pitt Street Right of Way that Encroaches on the Mary Washington Monument property (D22-439 thru D22-440). Councilor Devine made a motion to approve Ordinance 22-28, on first read, authorizing the vacation of the portion of the Pitt Street right-of-way that encroaches on the Mary Washington Monument property; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Suspend the Rules. In order to place Ordinance 22-28 on second read Councilor Devine moved to suspend the rules; motion was seconded by Councilor Graham and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). 21586 Public Hearing 12/13/22 Ordinance 22-28, Second Read Approved, Authorizing the Vacation of the Portion of the Pitt Street Right of Way that Encroaches on the Mary Washington Monument property (D22-439 thru D22-440). Councilor Devine made a motion to approve Ordinance 22-28, on second read, authorizing the vacation of the portion of the Pitt Street right-of-way that encroaches on the Mary Washington Monument property; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 22-29, First Read Approved, Authorizing the Gift of the Mary Washington Monument and Caretaker’s Lodge and Associated Grounds to the Washington Heritage Museums, Inc. (D22-439 thru D22- 440). Councilor Devine made a motion to approve Ordinance 22-29, on first read, authorizing the gift of the Mary Washington Monument and Caretaker’s Lodge and associated grounds to the Washington Heritage Museums, Inc.; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Suspend the Rules. In order to place Ordinance 22-29 on second read Councilor Devine moved to suspend the rules; motion was seconded by Vice-Mayor Frye and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). 21587 Public Hearing 12/13/22 Ordinance 22-29, Second Read Approved, Authorizing the Gift of the Mary Washington Monument and Caretaker’s Lodge and Associated Grounds to the Washington Heritage Museums, Inc. (D22-439 thru D22- 440). Councilor Devine made a motion to approve Ordinance 22-29, on second read, authorizing the gift of the Mary Washington Monument and Caretaker’s Lodge and associated grounds to the Washington Heritage Museums, Inc.; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Adjourned. There being no more speakers to come before the Council at this time, Mayor Mary Katherine Greenlaw declared the hearing officially adjourned at 9:02 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, MMC 21588 Regular Session 12/13/22 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 December 13, 2022 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, December 13, 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, attended remotely because he was “unable to attend the meeting due to a temporary medical condition that prevented his physical attendance” under FOIA., Jason N. Graham and Matthew J. Kelly. Others Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Police Chief Brian Layton, Director of Planning and Development Services Charles Johnston, Development Administrator Marne Sherman, Historic Resources Planner Kate Schwartz, Finance Director Robyn Shugart, Assistant Finance Director Richard Lawrence, Budget Analyst Donna Leahy, Economic Development Director Bill Freehling, Assistant Director of Tourism Margaret Morris and Clerk of Council Tonya B. Lacey. 21589 Regular Session 12/13/22 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 Misbah Afzali, 8th Grade Student from Walker-Grant Middle School. Officer Recognized. Mayor Greenlaw recognized the presence of Detective Gloria Mejia, at this evening’s meeting. Annual Financial Report – Andrew Grossnickle of Robinson, Farmer, Cox Associates. Finance Director Shugart recognized Assistant Director of Finance Richard Lawrence and Budget Analyst Donna Leahy. She thanked the entire Finance Department and City staff for their work on the audit. Mr. Andrew Grossnickle with Robinson, Farmer, Cox and Associates reviewed the financial results of the audit with the Council. He said the 2022 audit had an unmodified independent auditors report. He said in this report they listed new significant Governmental Accounting Standards Boards (GASB) procedures. There was one new accounting pronouncement GASB 87 which had an impact on all localities. It required the reporting of leases in a different manner. He also reported that in the Government Auditing Standards Report there were no material weaknesses or significant deficiencies to report. Mr. Grossnickle said the final report related to controls and compliance related to federal reward and it had no material weaknesses or significant deficiencies. Mr. Grossnickle also reviewed the auditors letter and the management letter as well as a few highlights from the report. He reviewed a few financial highlights stating 21590 Regular Session 12/13/22 the total net position for the City’s governmental activities was $125.4 million, an increase of $5.7 million and for business activities (equity) the total net position was $83.4 million, an increase $1.9 million. The governmental funds (fund balance) had a total fund balance of $60.8 million and the main fund of the City, the general fund, reported a balance of $39.4 million and $20 million was unassigned. The governmental fund balances increased by $5 million. Transmittal Approving an Interim Agreement with Ulliman Schutte Construction, LLC for the Upgrade and Expansion of the City’s Wastewater Treatment Plant (D22-434). Assistant City Manager Whitley said the purpose of the Interim Agreement was to start the design and some of the pre-work, which is necessary to get to the Comprehensive Agreement. He explained that there were three major reasons for the upgrade: to invest and replace a lot of the existing Wastewater Treatment Plant (WWTP), the standards to treating the wastewater will be improved and expand the capacity of the plant for future growth. Assistant City Manager Brown gave a little background on the plant stating it was built in the 1950’s and over time there have been improvements to mechanics and operations. Much of the equipment has reached the end of its service life although there have been some improvements over the years. The City operates this facility under a flume discharge elimination system permit issued by the State and with the permit there are requirements that have to be met and part of this project will help meet those needs. The improvements will meet future capacity needs, the new 21591 Regular Session 12/13/22 requirements will be met by the installation of the new equipment and it must be in place by December 2025. In the fall of 2021, the City decided it would not consolidate its operations with Spotsylvania County. the City released a Request for Qualifications (RFQ) in fall of 2022 and two design-build teams submitted application and there was a review and evaluation and determined that they were viable. The city sent them Request for Proposals (RFP) in the summer and in the Fall they made a selection of the firm Ulliman Schutte Construction, LLC and they are working to enter into an Interim Agreement. Mr. Matt Ulliman, CEO introduced the team, Project Director Allen McCullough, Construction Manager Matt Barrett, and the Design Manager Mike Schaeffer with Black & Veatch. Mr. Ulliman said it was an honor to be selected as the City’s trusted partner to design and build this project collaboratively. He said all Ulliman and Schutte do is water quality infrastructure. The mission and core value is to build a better environment not just water quality but for employees, clients, subcontractors, vendors, design partners and the communities where they work on projects. Mr. Ulliman noted that they are the biggest builder of water quality projects in the Commonwealth. He said they work well with Black & Veatch. He said they are committed and focused on designing and building a project that meets the budget, easy to operate, easy to maintain and to be proud of for decades. Mr. Brown stated the interim agreement will involve six tasks: fifteen percent design, fifteen to thirty percent design, thirty to sixty percent design and Contract Cost 21592 Regular Session 12/13/22 Limit (CCL), sixty to eighty-five percent design, equipment as needed and construction as needed. The schedule of the Interim Agreement is scheduled to take 9-12 months. Mr. Whitley said the Interim Agreement may get through the 60-85 percent and have a Contract Cost Limit developed and if everyone is in agreement it may turn over to the Comprehensive Agreement at that point. If the fourth phase of design is not included, then the first three phases totals $17,050,000. If task four is included, then the value will be $19,115,000. The original budget estimate on the project was $101 million and with inflations there has been a major impact on capital projects for local governments. The independent engineers updated the construction costs to $158 million for the project. Mr. Whitley stated that they had a solution for the $158 million and he referenced page 8 of the memorandum (D22-434). He said the State was heavily invested in the project and they plan to ask the State for more support. The City was planning to pay cash and borrow from the Clean Water Revolving fund. There are seven different funding sources for the project. The State awarded a nutrient reduction grant in the amount of $13.58 million. He said they were also looking for other alternative sources of funding, including an increase in availability fees. There was some discussion about the Contract Cost Limit (CCL) and the Guaranteed Maximum Price (GMP) and there was concern expressed about the risk of an increase between the CCL and the GMP. Mr. Whitley explained that’s why there needed to be a good CCL. City Attorney Dooley explained that the CCL, as defined by contract, is the absolute maximum price the owner will pay for the project and the GMP by contract will be lower than the CCL. 21593 Regular Session 12/13/22 Councilor Devine commended staff for identifying over $100 million in grants. She also expressed concern that Dixon Park may be affected during the project. Mr. Brown said they talked to Parks and Recreation to find out what programs would be utilizing the field and what fields they could use and at the conclusion of the project the fields would be restored. Mr. Whitley reminded Council that the full Interim Agreement would be forwarded to them in January. Consent Agenda Accepted for Transmittal as Recommended (D22- 435 thru D22-438). Councilor Kelly moved approval of the City Manager’s consent agenda; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). • Resolution 22-83, Second Read, Fiscal Year 2023 Budget Amendment Authorizing the Appropriation of Fiscal Year 2022 Carryovers and Approving Additional Appropriations for Certain Capital Projects (D22-435). • Resolution 22-87, Adopting 2022 Charter Amendments for the Rappahannock Regional Criminal Justice Academy (D22-436). • Resolution 22-88, Accepting Certain Streets Within the City of Fredericksburg into the City Street System and Petitioning the Virginia Department of Transportation to Accept the Streets into the State Street System (D22-437). • Adopting the 2023 Calendar Year Council Meeting Schedule (D22-438). 21594 Regular Session 12/13/22 Public Hearing (D22-439 thru D22-452). 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. Julie Kay, 1616 Franklin Street, on behalf of Fossil Free Fredericksburg she asked the Council to join them as they celebrate three years since the Council approved the 100 percent clean energy resolution. She said during the past few months she has been reminded of the power of what has been accomplished. Three of those reminders were the scheduling of their third youth climate conference for March 2023, the kickoff meeting which included students from all over and Fredericksburg City Public Schools asked Fossil Free Fredericksburg to join them at their E4 meeting and including several environmental groups. Ms. Kay spoke highly of the hiring of MacKenzie Belliman as the Sustainability Coordinator. Ms. Kay also spoke of the many benefits of having the clean energy plan in place. She was hopeful that the City would adopt the plan that the City Schools have put in place. She said working together will help to document the process. Jane Shelhorse, 808 Sylvania Avenue, spoke about how impressed she was with the Christmas parade and the employees who worked the parade. She said there was 20,000 spectators and she said it was impressive how everyone worked together. She said as she was walking home after the parade you could not tell there had been a 21595 Regular Session 12/13/22 parade. She spoke highly of Parks and Recreation, Public Works and the Police Department. She thanked the Council for their support and the staff for what they do. Jannette B. Martin (D22-441). 3 Browns Lane, spoke in support of legalizing accessory dwelling units (ADU). Cordell Cahill (D22-442). 907 Caroline Street, asked the Council to stop getting rid of affordable housing options. Darin Alleman (D22-443). 702 Hanson Avenue, spoke in support of accessory dwelling units and he spoke of the many benefits. He said it would be in the interest of the city to allow ADUs as a way to slowly but steadily increase density of downtown in order to improve our community and sustainability as a city. Dan Salisbury (D22-444). 1613 Charles Street, spoke in support of accessory dwelling units. He said they are a great way to welcome additional residents and income to the city. Chastaine Perry (D22-445). 201 Princess Anne Street, spoke in support of allowing accessory dwelling units by right in the City. She said there was a clear shortage of housing in the community and ADU’s would allow housing opportunities that are more affordable. Kevin Hughes (D22-446). 811 Marye Street, spoke in support of accessory dwelling units and he said there was significant opportunity in legalizing the development of ADUs. Legalization of ADUs creates a tool that is in the hands of residents, not developers, that can help address housing issues, increase access to housing, increase home values, and build upon the fabric of our city. 21596 Regular Session 12/13/22 Ernest Ackermann (D22-447). 1300 College Avenue, spoke in support of accessory dwelling units. He said they have one on their property and they have been able to provide affordable housing for two people and he said as they age their ADU will be a good place for a relative or a caretaker to live. April Zammas (D22-448). 1900 Washington Avenue, spoke in support of accessory dwelling units. She said shared living and live-work spaces allow for affordability, accessibility and aid in combatting climate issues. Suzy Stone (D22-449). 822 Marye Street, spoke of how accessory dwelling units would benefit the City and residents. She said there was limited supply of infill lots and developable land for additional housing. Allowing ADU’s would help to ease the crunch and potentially allow families to keep elderly family members or adult children. Tom Conway (D22-450). 1400 Caroline Street, voiced his support for accessory dwelling units to be permitted in the city. He said the City was in dire need of affordable housing, and ADU's are a great way to provide it. Marcia Keener (D22-451). 603 Pitt Street, spoke in support of accessory dwelling units as long as there were appropriate guidelines. She said when properly developed and with neighborly considerations, ADUs will help more people enjoy the walkable community and help the City to thrive both environmentally and economically. Calvin Roberts (D22-452). 311 Hawke Street, spoke in strong support of accessory dwelling units in the City. He said he lived in an ADU for years and he has always wanted to put his aging father in an ADU. Mr. Roberts spoke of the severe shortage of housing stock and the rising costs of rent. 21597 Regular Session 12/13/22 Council Agenda Presented. The following items were presented to Council for discussion. 8A. Board and Commissions Updates - Board of Social Services, Central Rappahannock Regional Library, Community Policy Management Team, Fredericksburg Area Museum, Fredericksburg Clean & Green Commission, Fredericksburg Regional Alliance, GWRC/FAMPO, Healthy Generations Area Agency on Aging, Main Street Board. Board of Social Services, – Councilor Duffy stated that there were still struggles of staying fully staffed. Another issue is the extension of the federal public health emergency which allows people to receive services. He noted that when it ends, it will put a critical strain on families who will no longer have access to social services. Central Rappahannock Regional Library, Councilor Devine reported that they were looking at a strategic plan for changes in growth and discontinuing things in the library as things change. She noted that as of January 1 the library was going fine free. She said people will continue to be responsible for any damage to books. Community Policy Management Team, Mayor Greenlaw reported that CPMT was on track and they disperse fund for children with needs. Fredericksburg Area Museum, Councilor Gerlach said they held FAM Fare on Saturday and it was a success. FAM is about to launch a digital exhibit for the Auction Block. The Museum will be closed in January and February while new exhibits are being prepared: Dinosaur, African American Art and Kiwanis Club 100th Anniversary. He also reported that new programs were being planned for 2023. 21598 Regular Session 12/13/22 Fredericksburg Clean & Green Commission, Councilor Duffy said the most recent session of the General Assembly passed a law that gives localities greater power to promote tree canopy and the Clean and Green will be making a formal recommendation to the Council. GWRC/FAMPO, Councilor Graham said the GWRC has had discussions of a Regional Housing Committee and what the framework would look like. He said it was being discussed with the administrators of the localities. He was hopeful the advisory committee would be a way to get more stakeholders to the table. He said there was an update on regional water supply, there was a new requirement that assigns Department of Environmental Quality and we must act on a more regional level. The City’s region consists of Fredericksburg, Stafford and Spotsylvania and they must report to DEQ on a regional level. FAMPO is working on Draft 2075 which will address congestion issues. Finally, he alerted the public to a survey on the East/West mobility study on FAMPO’s website. Main Street Board, noted that there were 120 businesses downtown and Main Street was very active and involved in many events. He listed several of the events they were involved in. He reported that $10,000 in gift cards had been sold and that the Sip and Stroll event draws around 1,300 participants to the downtown. Adoption of Minutes (D22-453 thru D22-454). Councilor Graham moved approval of the August 9, 2022 Work Session minutes, August 16, 2022 Joint City Council/School Board minutes and the November 22, 2022 Public Hearing and Regular 21599 Regular Session 12/13/22 Session minutes; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 22-90, First Read Approved, Amending the Fiscal Year 2023 Budget to Appropriate Funds in the City Grants Fund for a Department of Justice Law Enforcement and Mental Health Wellness Grant (D22-455). After staff presentation Councilor Graham moved to approve Resolution 22-90, on first read, amending the fiscal year 2023 budget to appropriate funds in the City Grants Fund for a Department of Justice Law Enforcement and Mental Health Wellness Grant; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Suspend the Rules. In order to place Resolution 22-90 on second read, Councilor Graham moved to suspend the rules; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 22-90, Second Read Approved, Amending the Fiscal Year 2023 Budget to Appropriate Funds in the City Grants Fund for a Department of Justice Law Enforcement and Mental Health Wellness Grant (D22-455). Councilor Graham moved to approve Resolution 22-90, on second read, amending the fiscal year 2023 budget to appropriate funds in the City Grants Fund 21600 Regular Session 12/13/22 for a Department of Justice Law Enforcement and Mental Health Wellness Grant; motion was seconded by Councilor Duffy and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Disclosures. Councilor Duffy disclosed that he was employed by the Fredericksburg City Schools but he could participate in discussions on the following two school items fairly, objectively and in the public interest. Vice-Mayor Frye disclosed that his spouse was employed by the Fredericksburg City Schools but he could participate in discussions on the following two school items fairly, objectively and in the public interest Resolution 22-91, First Read Approved, Amending the Fiscal Year 2023 Budget for Fredericksburg City Public Schools to Adjust the Increase for Fiscal Year 2023 Salaries for the Fredericksburg City Public Schools (D22-456). After staff presentation Councilor Graham moved to approve Resolution 22-91, on first read, amending the fiscal year 2023 budget for Fredericksburg City Public Schools to adjust the increase for fiscal year 2023 salaries for the Fredericksburg City Public Schools; motion was seconded by Vice-Mayor Frye and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 22-92, First Read Approved, Amending the Fiscal Year 2023 Budget for Fredericksburg City Public Schools to Appropriate Funds 21601 Regular Session 12/13/22 for Capital Projects (D22-457 thru D22-459). After a brief summary from staff Councilor Graham made a motion to approve Resolution 22-92, on first read, amending the fiscal year 2023 budget for Fredericksburg City Public Schools to Appropriate Funds for Capital Projects; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 22-93, Approving an Economic Incentive Agreement with the Economic Development Authority and William Square, L.L.C. (D22-460 thru D22-461). Economic Development Director Freeling presented a PowerPoint presentation and he explained that this was an economic incentive to facilitate the next phase of the William Square project. This project will enhance the hotel and contribute to becoming a top tier tourism destination but assistance is requested from the City to make it happen. The fifth building, the William House, was being considered for the incentive and this building is planned as a three-story building to include restaurant, retail and bank branch on the first floor, offices on the second floor and a rooftop and outdoor venue on the top floor. There were a couple of renderings shown for the project. Mr. Freehling explained that the developer was asking for incentive because the progress had stalled because of high interest rates and construction costs and they are asking for assistance to move the project forward. 21602 Regular Session 12/13/22 The proposed incentive will be performance based and William Square will receive 42 percent of tax revenues from the William House for 10 years and the overall incentive will not exceed $3 million over 10 years. In order to receive the incentive William Square would need to build the William House in substantial conformance to rendering with use groups as proposed, start construction by January 1, 2024, open Barton Street lot as a paid public parking lot for the five-year period between June 1, 2024 and June 1, 2029. Six months before expiration, William House will discuss extension with City, they will accept federal per diem rate for up to 150 rooms nights per year booked at the new hotel by the City, they will reserve the event space, at no venue fee for City use up to 12 times per year, they will partner with City Tourism on displays in the hotel and William House event space and pay all taxes and get appropriate permits. Mr. Freehling explained how the incentive would work and shows that the net to the City over 10 years would be $4.1 million as compared to if the incentive was not done, the net to the City would be $3.7 million. He recommended the approval of the Economic Incentive Agreement with the Economic Development Authority and William Square, LLC. Councilor Kelly noted that this was the largest project in the City and he requested the Council give it two weeks so that the public could have time to comment on the project. Councilor Duffy was supportive of the project but he wanted to know what problems it would pose if it was pushed back a few weeks. 21603 Regular Session 12/13/22 Mr. Freehling said if the project was pushed back it would push the project back a month. Mr. Bill Vakos stated that a delay of a couple weeks would mean they would have to redo the agreement. Councilor Gerlach asked if there was going to be a tenant running the hotel, and if so, how could they guarantee the City the right to book hotel rooms and the use of the event space. Mr. Vakos said the properties would be run by a hotel management groups and they are vendors who operate the space for them and they are bound by the agreement. Mr. Gerlach asked the Council to consider what types of incentive they can offer small business because they drive the economy. He suggested maybe doing something similar to what Richmond is doing for their small businesses. Councilor Frye noted that the City would get nothing if the project is not done and for this reason he was in support of the project. He said he did not want to delay. Mayor Greenlaw said the City was benefitting from all the development at that end of William Street. She noted what an asset the hotel and the event space was to the City. She was not opposed to voting on the project tonight. Vice-Mayor Frye moved to approve Resolution 22-93, approving an Economic Incentive Agreement with the Economic Development Authority and William Square, L.L.C.; motion was seconded by Councilor Devine. Councilor Kelly said he was not voting against the incentives package but against moving the project forward without giving the public the opportunity to speak on the project. 21604 Regular Session 12/13/22 The motion passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. Transmitting a Memo on Increasing Availability Fees for the City Water and Sewer Funds (D22-462). Mr. Whitley asked for Council’s consideration for an increase in availability fees charged for water and sewer. He explained that with Council’s consent they would advertise and hold a first read at the first meeting in January and second read would be at the second meeting in January and fees would go into effect in March. The availably fees are charged to new development to offset costs associated with the increase of capacity. The last rate occurred in fiscal year 2013. This increase would allow revenues to offset inflation and increase capacity cost for the new wastewater treatment plant. Mr. Whitley said they evaluated these rates with the water and sewer rate consultants and they were in agreement with the levels proposed. There is currently a two tier system and most residential meters are 5/8 in size and the water proposal will go from $3,000 to $3,800 and on the sewer it will go from $5,000 to $6,000. There are several medium sized meters and those rates are listed in the staff memo. The 2-inch meter, which is commercial size, he explained that there would be a change in the way they charge. With the increase he said the City was remaining competitive with neighboring jurisdictions. The fiscal impact would vary from year to year because of construction. Mr. Whitley explained that this was a transmittal only. 21605 Regular Session 12/13/22 Transmitting Priorities and Implementation Plan Phase 4 (D22-463 thru 464). Mr. Baroody handed out a detailed description of the priorities, as well as the gantt chart and a comprehensive review of the priorities. He reported that at the conclusion of the work 57 percent of the work requested by Council was completed. Mr. Baroody commended staff on their hard work and efforts. Mr. Baroody reminded the Council that they met in October and worked through an update of their priorities. He stated that they Council had been on this journey since 2016, in which they created a twenty-year plan and every two years they have reviewed those priorities. He provided a smaller version of the work that was done in October, as well as a new implementation plan for the 29 priorities. Mr. Baroody asked Council to review the draft plan and be ready to discuss at the first meeting in January. Vice-Mayor Frye suggested that this would be a good item to approach VML with to see how it could be shared with other jurisdictions. City Manager’s Report and Council Calendar (D22-465 thru D22- 466). City Manager Baroody directed the Council’s attention to the Manager’s Update: Parking Extended in the Downtown Business District, Christmas Parade, Window Wonderland Contest, Fall Leaf Collection, 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. 21606 Regular Session 12/13/22 Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 10:16 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council 21607 Regular Session 12/13/22 [This page intentionally left blank] 21608