City Council

Public Hearing 03/11/25 HON. KERRY P. DEVINE, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR HON. JANNAN W. HOLMES, AT-LARGE CITY COUNCIL HON. DR. WILL B. MACKINTOSH, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO HON. SUSANNA R. FINN, WARD THREE Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 March 11, 2025 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, March 11, 2025, beginning at 8:18 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Kerry P. Devine. Vice-Mayor Charlie L. Frye, Jr., Council members Susanna R. Finn, Jonathan A. Gerlach, Jason N. Graham, Jannan W. Holmes and Dr. Will B. Mackintosh. Others Present. City Manager Timothy J. Baroody, Deputy City Manager Mark Whitley, Deputy City Manager David Brown, City Attorney Kelly J. Lackey, Economic Development Director Joshua Summits, Planning and Building Services Director Michael Craig, Zoning Administrator Kelly Machen, and Clerk of Council Tonya B. Lacey. Notice of Public Hearings (D25-125 thru D25-127). The Clerk read the notice of the public hearings as it appeared in the local newspaper, the purpose being to solicit citizen input. Resolution 25-14, Approved, Granting a Special Use Permit to Dominion Care for an Elementary Through High School Use on a Portion of 1931 Plank Road (D25-125 thru D25-127). Zoning Administrator Machen presented a PowerPoint presentation followed by a PowerPoint presentation from 22467 Public Hearing 03/11/25 Valerie Fleck, Dominion Care’s Director of Education. After a brief discussion Councilor Graham moved to approve Resolution 25-14, granting a Special Use Permit to Dominion Care for an elementary through high school use on a portion of 1931 Plank Road; motion was seconded by councilor Holmes and passed by the following recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Adjourned. There being no speakers to come before the Council at this time, Mayor Kerry P. Devine declared the hearing officially adjourned at 8:33 p.m. Kerry P. Devine Kerry P. Devine, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, MMC 22468 Regular Session 03/11/25 HON. KERRY P. DEVINE, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR HON. JANNAN W. HOLMES, AT-LARGE CITY COUNCIL HON. DR. WILL B. MACKINTOSH, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO HON. SUSANNA R. FINN, WARD THREE Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 March 11, 2025 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, March 11, 2025, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Kerry P. Devine. Vice-Mayor Charlie L. Frye, Jr., Council members Susanna R. Finn, Jonathan A. Gerlach, Jason N. Graham, Jannan W. Holmes and Dr. Will B. Mackintosh. Others Present. City Manager Timothy J. Baroody, Deputy City Manager Mark Whitley, Deputy City Manager David Brown, City Attorney Kelly J. Lackey, Economic Development Director Joshua Summits, Planning and Building Services Director Michael Craig, Zoning Administrator Kelly Machen, 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 Cub Scout Pack 802, Charter Organization Hugh Mercer. Officer Recognized. Mayor Devine recognized the presence of Detective Mejia at this evening’s meeting. 22469 Regular Session 03/11/25 Proclamation for Multiple Sclerosis Awareness Month – Belinda Mattos (D25-116). Mayor Devine presented a proclamation to Ms. Belinda Mattos declaring March as Multiple Sclerosis Education and Awareness Month. Ms. Mattos thanked the Mayor and Council for the proclamation. She introduced members of the Invincibles MS Support Group Linda Parsons, Katie Schaefer and two students who raise funds for the National MS Society by knitting scarves. The students presented a scarf to Mayor Devine, Ms. Mattos and Ms. Parsons. Proclamation Supporting the Repatriation of the Remains of Eliza Monroe Hay (D25-117). Mayor Devine presented a Proclamation to Kathryn Willis and Sue Henderson honoring Eliza Monroe Hay for her service to the nation; favors repatriation of the remains of Eliza Monroe Hay to her native country, and supports efforts for the internment of her remains in the Monroe family plot in Hollywood Cemetery, Richmond, Virginia. Ms. Willis said Fredericksburg was essential to Eliza’s story because she began here and from here, James Monroe launched his career. Eliza served her country and family and through complicated circumstances, she never received money from her father’s inheritance. She died penniless in Paris alone and they are working to bring her home and bury her with her family. Reaffirming the Schwetzingen Germany Sister City Partnership – Lord Mayor Matthias Steffan. Mayor Devine and Lord Mayor Matthias Steffan, reaffirmed the City’s partnership with Schwetzingen, Germany by signing an agreement. 22470 Regular Session 03/11/25 Lord Mayor Steffan thanked the City of Fredericksburg for the warm welcome. He said the City and Schwetzingen are very united. He talked about how the United States brought democracy to Germany and how great the relations are with the United States. He thanked former Mayor Mary Katherine Greenlaw and former Lord Mayor Rene Potl for starting the relationship. He said maybe they could open a new partnership to work with the firefighters. He said he was looking forward to many years of partnership. Matthew Kelly said it has been a great relationship. He said this is no longer a sister city organization it is a family. He said they look forward to their trip later in the year and he looks forward to the continued relationship. Mayor Devine presented a gift to Lord Mayor Steffan, the gift was a blown glass pineapple, made in Jamestown because the first Germans that arrived in Jamestown in 1608 and they were glassmakers, carpenters, and mineral prospectors who helped establish the colonies industries. Presenting of the 2026 Fiscal Year Budget (D25-118). City Manager Baroody presented the Fiscal Year (FY) 2026 budget. He noted that the City continues to have an excellent bond rating from Wall Street, and with a recent 2024 upgrade, all three major rating agencies have the City at one notch below AAA ratings, the highest rating. The city is maintain strong fund balances, and budget conservatively, all while building for the future. The City has maintained a stable departmental leadership in a highly competitive workforce environment. The team stability has been critical in moving forward on the many legacy projects that are underway. 22471 Regular Session 03/11/25 These legacy projects include Enterprise Resources Planning (ERP) $1.5 million, dollar project, Computer Aided Dispatch System (CAD), new middle school $77 million, Water Meters, Motts Water Plant Expansion and Upgrade, Wastewater Treatment Plant Expansion and Upgrades and Fire Station #3. This budget also includes a recommended $.03 real estate tax increase over the current rate, moving the recommended rate to $0.80 of $100 in valuation. The Recommended General Fund budget of $136,755,000 is an increase of $8,841,000, or 6.9% from the FY 2025 original General Fund appropriation of $127,913,000. Budget Drivers that lead to this 6.9% increase for FY 2026 include a recommendation to substantially increased funding for the Fredericksburg City Public Schools, with an increase of $4,000,000. This recommendation supports the opening of the new Gladys West Elementary School, which will be housed in the current Walker- Grant Middle School building on Learning Lane, and the newly constructed Walker- Grant Middle School, located at 2201 Idlewild Boulevard. The City also faces increased costs for the Rappahannock Regional Jail — The FY 2025 budget for the Regional Jail was $3,605,000, and that is increasing in FY 2026 to $5,199,000, a total increase of almost $1.6 million. This budget recommends partially offsetting this amount by utilizing the Jail Stabilization Fund Balance Reserve. There is a major increase in "operating capital" in the General Fund in FY 2026. Spending on operating capital line items is recommended to increase from $717,000 in FY2025 to $1,800,000 in FY2026, which is a reflection of recent cost increases for replacement rolling stock, and the end of pandemic era relief programs such as ARPA. 22472 Regular Session 03/11/25 The recommended budget includes one net new position in the General Fund, as well as five positions in other funds. The new positions included in the Recommended Budget are a Parks Recreation Coordinator, an IT Public Safety position to assist with the massive CAD project, a Fire Fighter/Medic position, and a Purchasing Manager. These are all recommended to be funded on January 1, 2026, with the exception of the Parks position, which in light of the recent City/School's MOU and the good work of the Teen Violence Committee we wish to get underway immediately in FY2026. The City continues as most organizations throughout the nation, to be challenged with significant recruitment and retention challenges. Therefore, the FY 2026 Recommended Budget includes the following • An increase to the City pay scales of 2.5%, which will also be given as a general across-the-board adjustment for all employees. • An increase of 2.5% for all public safety employees, which will advance current employees along the newly increased open-range pay scale. This is to meet the intent of Resolution 23-36, which provides that public safety personnel will see at least 2.5% along the range as established upon budget adoption. • An increase of 1.5% for all non-public safety employees, which will advance current non-public safety employees along the newly increased open-range pay scale. The City Manager's Recommended Budget is a budget that is balanced as of March 2025 for FY 2026. However, there are revenues that will need to be updated as 22473 Regular Session 03/11/25 City Council moves through the budget review process, most notably, the forecasts for the Personal Property Tax. In addition, there are major changes underway at the federal government level, and these changes could significantly affect budget decisions in a variety of ways. There is substantial direct federal support for specific City and School programs, including Head Start, School Nutrition, Community Development Block Grant, and FXBGo! Transit. There is also direct federal support for the mission and operations of the Department of Social Services. In addition to the potential for direct impacts, austerity and employment reductions at the federal level may cause marked disruption to the local economy and impact City revenues. The City must make assumptions regarding the economy 18 months in advance during the budget process for the upcoming fiscal year. The local economy has been impacted by inflation, elevated interest rates, a downward trend in consumer confidence, with pandemic resources depleted, and now significant federal government changes, these are truly uncertain times in local government funding. The City has strategically embedded in the Recommended Budget three different levers aimed at reducing expenditures - if revenues decline. They are deferring the hire of new positions, setting aside funds in a Revenue Stabilization reserve and setting the appropriation level at 90% of total budget pending a midyear review. If adopted, these measures will ensure continued fiscal health even with potential recessionary pressures. 22474 Regular Session 03/11/25 Mr. Baroody assured the Council that their Priorities, and many community needs, are intricately woven into this FY 2026 budget recommendation. (See D25-118 for more information.) Consent Agenda Accepted for Transmittal as Recommended (D25- 119 thru D25-124). Councilor Mackintosh moved approval of the City Manager’s consent agenda; motion was seconded by Councilor Finn and passed by the following recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). o Resolution 25-07, Second Read Approved, Amending the FY 2025 Budget to appropriate funds in the City Grants Fund for a grant for the purchase of a vehicle barrier system and equipment for the Hazardous Materials Team (D25-119). o Resolution 25-08, Second Read Approved, amending the Fiscal Year 2025 Budget to appropriate funds in the Public Facilities Capital Fund for building repairs at the Central Rappahannock Regional Library (D25-120). o Transmittal of the Board and Commission Minutes o Architectural Review Board – January 27, 2025 (D25-121). o Economic Development Authority – December 4, 2024 (D25-122). o Economic Development Authority – December 9, 2024 (D25-123). o Economic Development Authority – January 13, 2025 (D25-124). Public Hearing (D25-125 thru D25-127). The regular session was recessed in order to conduct scheduled public hearings and immediately reconvened upon their conclusion. 22475 Regular Session 03/11/25 Citizen Comment. The following comments were given and/or submitted to be read during the citizen comment portion of this evening’s meeting. Tania Snead, 3604 Aquia Drive Stafford, VA, accused the City of ignoring criminal activity that harmed her business and in December 2024, they had to close their business. She felt that they had been unfairly treated. Jerome Wilson, 3604 Aquia Drive Stafford, VA, stated that he had made three payments made to the courts for Thalheimer and were processed. He said the Clerk of the Circuit Court was certain money was already in the hands of the Talheimer and he spoke with the clerk of the General District Court who stated she was sure the money was sent to Atlantic Union Bank. He said they paid money to the court but they wrote an order saying they were late with the payments. Stephen Kingsley (D25-128), 507 Dunmore Street, spoke in support of the data center project in Celebrate Virginia South. He said this was the perfect location because there were very few residential houses near the proposed site. He said it would not create new students in the area and less traffic than apartments. Mr. Kingsley said as long as the developer addresses the water issue and pipes non-potable water to the site, that it seems like a no-brainer. Sue Sargeant (D25-129), 1318 William Street, told the council to keep in mind that the monopoly, Dominion Resources, has run out of power for data center ‘grid reliability’. She also quoted Mr. Bill Wright, consumer activist in Prince William County, who has lived for years with data centers up against his neighborhood. He was quoted saying, “As if the construction, landscape disruption, noise and pollution associated with 22476 Regular Session 03/11/25 these toxic behemoth wasn’t bad enough, these data centers still have to be plugged into an electrical grid that doesn’t have enough dedicated extension cords to serve them. So we’re going to build those lines, string them over your community, and tack the cost onto your electric bill. Listen. You can almost hear the cries of residents: “WHY WASN”T I TOLD ABOUT THIS?”. Ms. Sargeant also stated that there was no power left in Virginia and it has to be imported from the mid-West according to Gov. Glen Youngkin. She said that PJM, who is in charge of Virginia data center transmission warned that a capacity shortage could affect the grid as early as the second half of 2026. See D25-129 for more information. Council Agenda Presented. The following items were presented to Council for discussion. 8A. Appointments to Parking Advisory Committee and Regional Group Home Commission – Mayor Devine Appointments to Parking Advisory Committee and Regional Group Home Commission – Councilor Graham moved to appoint Councilor Finn to the Parking Advisory Committee and Vice-Mayor Frye to the Regional Group Home Commission; motion was seconded by Councilor Mackintosh and passed by the following recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). 22477 Regular Session 03/11/25 Adoption of Minutes. Councilor Gerlach moved to approve the Public Hearing and Regular Session of January 14, 2025; Regular Session of January 28, 2025; Special Work Session of February 4, 2025, and the Special Session minutes of February 13, 2025; motion was seconded by Councilor Mackintosh and passed by the following recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Fredericksburg Arts Commission Appointment (D25-130). Councilor Holmes moved to appoint Tanya Green to the Fredericksburg Arts Commission; motion was seconded by Councilor Graham and passed by the following recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Technology Overlay District (D25-131 thru D25-132). Ordinance 25-02, Second Read Approved, Establishing the Technology Overlay District to Encourage Data Center Campuses and Related Uses in Large Assemblages of Properties; Amending Generally Applicable Data Center Provisions in the Unified Development Ordinance; and Zoning Map Amendment to Designate Part of Area 1 to Technology Overlay District (D25-131 thru D25-132). Economic Development Director Summits presented a brief PowerPoint and after his presentation, Councilor Graham asked about the edits that were made between first and second read. City Attorney Lackey reviewed the edits which were mostly clerical edits. 22478 Regular Session 03/11/25 Mayor Devine said between the Planning Commissions long meeting and the City Council’s long meeting she was pleased to incorporate the Planning Commission’s recommendations and the publics comments in the final Overlay District Ordinance. She said this was a community effort and she thanked the Planning Commission and staff for all the work that has gone into this project. Mr. Craig suggested that the Council consider on Page 4 of Ordinance 25-02 Subsection (i) to allow a lesser setback if there was a conservation easement. He said the wording was (This lesser minimum shall control if in conflict with subpart 2(a)) and he suggested it read (2a), 2(b), or 2(c). Upon a motion by Councilor Graham, Ordinance 25-02, was approved on second read, establishing the Technology Overlay District to encourage data center campuses and related uses in large assemblages of properties; amending generally applicable data center provisions in the Unified Development Ordinance; and zoning map amendment to designate part of Area 1 to Technology Overlay District with the amendment in Subsection (i) to read (This lesser minimum shall control if in conflict with subpart 2(a), 2(b), or 2(c)); motion was seconded by Councilor Mackintosh and passed by the following unanimously recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Ordinance 25-03, Second Read Approved, Accepting Amended Proffers for the Neon Project in Celebrate Virginia South to Allow a Potential Data Center Project Consistent with the Technology Overlay 22479 Regular Session 03/11/25 District (D25-131 thru D25-132). Upon a motion by Councilor Graham, Ordinance 25-03, on second read, accepting amended proffers for the Neon Project in Celebrate Virginia South to allow a potential data center project consistent with the Technology Overlay District; motion was seconded by Councilor Frye and passed by the following unanimously recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Resolution 25-15, Approved, Authorizing Use of $947,722 of Motor Fuels Tax Funds for Various Transportation Projects (D25-133). Upon a motion by Councilor Gerlach, Resolution 25-15, authorizing use of $947,722 of Motor Fuels Tax Funds for various transportation projects; motion was seconded by Councilor Graham and passed by the following unanimously recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Transmittal of Committing Unassigned General Fund Balances to Various Purposes (D25-134). Deputy City Manager Whitley explained that the City had reserves and the new policy that was adopted last year sets a limit for Unassigned General Fund Balance at 15% of the prior year General Fund revenues. He said they could take some of the reserves and assign them to smaller purposes. He presented three proposals Commitment of Fund Balance – Revenue Stabilization Reserve for $2.5 million. Second proposal was Commitment to Fund “Buy Down” Payments to Pension or OPED Liability or finally Commitment to Capital. 22480 Regular Session 03/11/25 Resolution 25-16, Approved, Planning for the 300th Anniversary Commemoration for the City of Fredericksburg (D25-135). Councilor Gerlach moved to approve, Resolution 25-16, planning for the 300th anniversary commemoration for the City of Fredericksburg and nominated of Mayor Devine and Vice-Mayor Frye to serve on the committee; motion was seconded by Councilor Graham and passed by the following unanimously recorded votes. Ayes (7). Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). City Manager’s Report and Council Calendar (D25-136 thru D25- 137). City Manager Baroody directed the Council’s attention to the Manager’s Update: Happy Women's History Month!, 2025 General Assembly Review, Silver Companies and STACK Infrastructure Announce Data Center Agreement in City, Design Team for Auction Block Memorial Announced, Stay Informed, Utility Scam Alert, Mental Health, Wellness & Safety Resource Fair, Spring Break Camps, CRRL, Traffic Safety Initiative, 2025 Summer Programs, and FXBG Snapshot. Closed Meeting Approved. Upon a motion Councilor Graham moved approval to convene in closed session under Code of Virginia Section 2.2-3711(A)(1) specifically, the Clerk of Council and consultation with legal counsel pertaining to actual or probable litigation, specifically pending circuit court proceedings in which the City Council is named as a respondent, where such consultation in open session would adversely affect the negotiating or litigating posture of City Council pursuant to Virginia Code § 2.2-3711(A)(7); motion was seconded by Councilor Mackintosh and passed by 22481 Regular Session 03/11/25 the following recorded votes. Ayes (7) Councilors Devine, Frye, Finn, Graham, Gerlach, Holmes and Mackintosh. Nays (0). Return to Open Meeting Approved. Councilor Graham moved to return to open session; motion was seconded by Vice-Mayor Frye and passed by the following recorded votes. Ayes (7) Councilors Devine, Frye, Finn, Graham, Gerlach, Holmes and Mackintosh. Nays (0). Resolution 25-17, Approved, Certifying Closed Meeting (D25-138). Upon the motion Councilor Graham, approved Resolution 25-17 certifying the closed meeting; seconded by Vice-Mayor Frye and passed by the following recorded votes. Ayes (7) Councilors Devine, Frye, Finn, Gerlach, Graham, Holmes and Mackintosh. Nays (0). Adjournment. There being no further business to come before the Council at this time, Mayor Devine declared the meeting officially adjourned at 10:28 p.m. Kerry P. Devine Kerry P. Devine, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council 22482