City Council

it southburlington VERMONT MINUTES CITY COUNCIL 2 DECEMBER 2024 The South Burlington City Council held a regular meeting on Monday, 2 December 2024, at 6: 30 p. m., in the Auditorium, 180 Market Street, and by Go to Meeting remote participation. MEMBERS PRESENT: T. Barritt, Chair; A. Chalnick, E. Fitzgerald, M. Scanlan, L. Smith ALSO PRESENT: J. Baker, City Manager; Chief S. Locke, Deputy City Manager; C. McNeil, City Attorney; P. Conner, Director of Planning & Zoning; I Blanchard, Community Development Director; M. Machar, Finance Director; E. Quallen, Deputy Director for Capital Projects; C. Corbin, Deputy Fire Chief; Chief S. Burke, Police Department; J. Pellerin, Deputy City Attorney; A. Matth, Recreation Director; N. Gingrow, IT Director; D. Brayton, HR Director; H. Rees, City Clerk; L. Bresee, Energy Project Manager; P. & J. Travers, D. Peters, W. Coleman, J. B., L. Bailey, Dr. T. Childs, M. Mittag, Isaac, Robert F., B. Britt, N. Senecal, Deborah, A. & B. Cousins, S. Dooley, F. MacDonald, Eliyahu, P. Taylor, M. Lescaze, L. Kupferman, M. Hoffnung, J. Greenwald 1. Pledge of Allegiance: The Pledge of Allegiance was recited. 2. Instructions on exiting building in case of emergency and review of technology option: Ms. Baker provided instructions on emergency exit from the building and reviewed technology options. 3. Additions, deletions or changes in the order of Agenda items: Ms. Baker noted that Agenda item # 13 may not be needed. 4. Comments and questions from the public not related to the agenda: PAGE 1 Mr. Coleman asked the Council to think about the ability to raise revenue which seems to be going down. Mr. Doyle expressed concern that when Mr. Chalnick refused to recuse himself from the Long property discussions, he did not mention that his wife was a former Board member of the Land Trust. He also did not reveal that his recommendations for appointment to the Planning Commission were significant contributors to his election campaign. 5. Announcements, councilors' reports from committee assignments and City Manager' s Report: Council members reported on meetings and events they had attended in recent weeks. Ms. Baker: Noted the passing of Don Turner, State Legislator and Milton Town Manager The closing for the Wheeler Conservation Easement will take place tomorrow. The Police are doing a media push regarding locking vehicles as there have been more vehicle thefts from unlocked cars. 330 people attended the recent fun even at UMall. The Ugly Sweater Contest will take place on 8 December. The Community Dinner will take place on 13 December. 6. Consent Agenda: a. Approve and Sign Disbursements b. Approve Minutes from 1 July, 15 July, 5 August, 19 August, and 21 August c. Appoint members to the Housing Committee d. Authorize the Department of Public Works to award the Hinesburg Road Sewer Rehabilitation Project to J. Hutchins, Inc. e. Accept the deed of easement from 89- 2 Realty Company, LLC, and Burlington Interstate Center, LLC, dated 24 June 2024 for the Pedestrian and Bicycle Bridge over 1- 89 at Exit 14 Mr. Chalnick moved to approve the Consent Agenda as presented. Mr. Scanlan seconded. Motion passed unanimously. 7. FY26 Budget: Receive the City Manager' s Proposed FY26 Budget presentation: CITY COUNCIL 2 December 2024 PAGE 2 Ms. Baker recognized Department heads present and acknowledged their work in creating the proposed budget. The key questions for the Council to consider in receiving the City Manager' s Proposed Budget are: a. Which scenario best meets City Council goals? b. Is anything missing? c. What options can be explored? d. What information does the Council need to recommend a budget to the community Ms. Baker noted that South Burlington is the second largest community in the State with a population of 21, 000, 16. 3% of whom are over age 65. 40% of residents live in single family homes. 63% have a bachelor' s or higher degree. The city has about 195 employees in 14 departments. They are represented by 3 labor groups. Ms. Baker said the Council had asked for a budget that maintains the current level of service, maximizes non- property tax revenues, and has a maximum tax increase of 5. 39%. The Council also asked for several potential scenarios. The three scenarios being presented have tax increases of 5. 19%, 4. 02% and 3. 39%. All scenarios have no new programs. The City Manager and Leadership Team recommend the 3. 39% budget scenario. Assumptions in preparing the budget include: a. 1. 5% Grand List growth b. 20% growth of the TIF Grand List c. Contractual COLA and related step increases d. 18% Workers Compensation increase e. 4% Health Insurance increase ( a savings of $ 374, 000 due to Stop Loss Coverage f. Pension fund decreased contribution of 17% ( a savings of$ 163, 000) g. A 6% increase in property and equipment insurance ( tentative) Mr. Barritt asked why Workers Compensation went up. Ms. Baker said increased salaries and increased staff. With regard to the requested special assessment by Green Mountain Transit, Ms. Baker recommended that if the Council approves this, the funds be taken from the CITY COUNCIL 2 December 2024 PAGE 3 fund balance. Mr. Scanlan noted that the GMT deficit has been reduced from 3, 000, 000 to $ 2, 000, 000. If the Legislature doesn' t come through with aid, there will have to be buyout of employees. a If the Legislature does come through, there may not be a special assessment. Mr. Scanlan noted that one GMT system member community has said they will not support the special assessment, which means it cannot happen. Ms. Baker said the city recommends continuing the Community Outreach Team and the Community Justice Center despite the loss of State support. $ 25, 000 from the opiate settlement will be used to fund new costs for the Community Outreach Team. With a 3. 39% budget increase, the average condo would see a$ 50. 58 increase for the year, and the average single- family home would see a$ 74. 79 increase for the year in municipal property taxes. There would also be a 3. 14% increase in Pennies for Open Space and Pennies for Paths ($ 13, 290 each). With a 5. 39% budget increase, the city would also fully fund the climate consultant, public safety radio replacement and 40% of the Justice Center. With regard to income, Ms. Baker noted that ARPA funds are removed. There are increases in ambulance billing, permitting fees ( 25%), and an anticipated 4% increase in local option taxes. The 4. 4% budget increase anticipates a 5% local option tax increase and additional earned interest plus the items above. Things that have not been included in the proposed budgets include: a. Sunday opening for the library b. Town Meeting TV archiving more meetings c. Increased line striping d. The city' s share in a proposed CCRPC Equity Advisory Ms. Baker stressed that she does not recommend using one-time funds for regular operational budget items. Deputy Manager Locke noted there were other emerging items that were not included in the proposed budgets. The Council will hear about those at the Budget Retreat. They include: a. The South Burlington City Center Collaborative funding request b. Liability Insurance ( currently at 6%) CITY COUNCIL 2 December 2024 PAGE 4  c. Planning funds for a Recreation Center d. A funding request from the Safe Routes to School Task Force With regard to the CIP, Ms. Baker noted that the paving budget has been increased to 1, 200, 000. There is also $ 40, 000 for sidewalks, $ 95, 000 for energy upgrades at DPW, and $ 66, 000 for IT infrastructure. Ms. Baker also showed the climate related CIP with 345, 000 of climate related expenses. Ms. Quallen noted that fleet options include some climate- related elements. Mr. Chalnick asked if the savings in fuel has been calculated in. Ms. Quallen said they haven' t done the full life cycle costs. It was noted that a vast number of the city' s vehicles are very large, and electric is not an option. Mr. Barritt noted that even with the fuel savings there are still such things as tires, inspections, etc. Ms. Baker then noted there will be significant increases in Enterprise Funds. The total annual increase to homeowners would be $ 67. 88. The total anticipated budget is $ 55, 600, 000 of which 64% is for the General Fund. Ms. Baker showed a pie chart of how tax money is distributed within the city. With regard to the TIF district, Ms. Baker said FY26 will see a lot of construction of the remaining TIF projects. She then showed the TIF model. With only the current projects, the deficit is $ 2, 900, 000. With one new building constructed each year, the retire the TIF debt on time with $ city can 1, 200, 000 to the general fund each year. Ms. Baker then enumerated emerging issues facing the city: a. Collective bargaining ( negotiations are in progress) b. Hard to fill employment categories c. Mental health needs of residents d. Need for staff for City Center maintenance e. Increased traffic in City Clerk' s office; complicated elections f. Added climate and data professionals g. Community Justice Center funding h. Updated Form Based Code i. Creation of a parking fund Mr. Smith asked how the city can incentivize use of the private 2- level parking structure. Mr. Chalnick questioned whether the $ 40, 000 for sidewalks is sufficient. CITY COUNCIL 2 December 2024 PAGE 5 Ms. Fitzgerald was concerned with the ability to bring labor to paving projects and with being up front regarding the disruption due to paving. She also cited the need to create a" downtown and the potential need to educate the community culture" regarding addressing the housing needs of the " the middle." Mr. Barritt cited the potential challenge of the school budget and said he liked the 3. 39 budget option. Mr. Scanlan agreed but also urged the Council to discuss policies to increase Local Option Tax and commercial property tax revenues. He highlighted that only 8. 5% of the city' s buildings are commercial, but they contribute 34. 7% of the property tax revenue. The city has designated commercial areas around the airport and Tech Park and should seek additional commercial development in these areas. Mr. Taylor asked how to get cemeteries included in the discussion. Mr. Barritt said to come to the budget retreat. 8. Receive a request from Champlain Housing Trust to re- envision their previous allocation of $400, 000 of ARPA funding to support weatherization at Dorset Commons: Ms. Lescaze said CHT is asking to change the project that received city funding in 2022. The project involves housing preservation/ renovation. She cited some of the issues involved: a. Challenges in infrastructure b. The School District now leases the former City Hall building c. The need for a second access onto Dorset Street d. The designation of some of the land as wetland e. Increased costs Ms. Lescaze said they recognize the benefit of energy upgrades such as replacing the heating system with electric heat and improving hot water efficiency ( removing the natural gas heaters). They are now requesting to return the ARPA funding and present a future request for energy upgrade. Ms. Fitzgerald noted that in 2022 the project was characterized as " shovel ready." She was concerned that there will not be new housing now. Ms. Baker explained the funding situation. In 2022, the City Council allocated 1, 000, 000 for affordable housing projects. There was an RFP, and this project was deemed more shovel ready than others because there was site control. Over the last few years, there have been multiple hurdles, and they are down to the deadline to realize this project. The big shift is that there is not a new housing element. CITY COUNCIL 2 December 2024 PAGE 6 Mr. Chalnick said this proposal would increase the ARPA reserve balance which could be used for a future project. Ms. Fitzgerald asked if there could be a process to evaluate projects which would use those funds. Ms. Baker said that would be an ideal process; however, respondents in 2025 would be very different than in 2022. There is an option to request an RFP as well as other options to look at. Mr. Scanlan said they shouldn' t give up on trying to get new housing. Affordable housing along a major public transit route would fulfill both the City' s housing and emission reduction goals. Mr. Kupferman hoped the new Housing Committee can be included in these discussions. Ms. Baker suggested tasking the Housing Committee with making recommendations to the Council. Council members agreed. 9. Receive a request to construct an Eruv to allow for the carrying on the Jewish Sabbath Burlington with a border running approximately from Queen City Park Road down Swift Street, and then Spear Street to East Terrace, crossing Williston Road to Catamount Drive: Mr. Hoffnung noted the restriction in Orthodox Judaism on transporting an item from one location to another on the Sabbath. The " legal loophole" is to create a" walled city" called an Eruv. The Eruv combines various domains into one domain with nearly fictional walls. This involves cooperation with Green Mountain Power and other utilities to use their poles and wires for small adaptations. This creates a community." They need to lease the right to unify into one community. This has no legal implications except in Jewish law. Mr. Hoffnung noted the bulk of the physical work is complete. Mr. Chalnick noted this basically the definition of " a home." expands Mr. Hoffnung said it needs to be a completely closed loop. The work to achieve this was done by volunteers. Mr. Chalnick moved to grant the request to construct an Eruv with the designated borders. Ms. Fitzgerald asked to include in the motion the words " in compliance with the Green Mountain Power contract." Mr. Smith seconded. Motion passed unanimously. 10. Receive an update on the Northeast Agricultural Trust ( NEAT) and the South Burlington Land Trust ( SBLT) on a joint project at 1720 and 1730 Spear Street currently called the " Long View Project." This follows the Council' s approval of a letter of support outlining contingencies CITY COUNCIL 2 December 2024 PAGE 7  required for the City to allocate public funds to support City ownership and permanent conservation of at least 32. 2 acres and the future development of permanently affordable homes on a subdivided parcel: Ms. Baker reviewed history. She felt that no additional Council action is needed at the this time. She recommended having VHCB take action and then have the Council take whatever action it chooses. Mr. Barritt agreed. Mr. Smith noted that there were 2 conditions that VHCB is imposing that the City couldn' t agree to. He asked whether the city should let them know this. Mr. Barritt said to let VHCB act first. Ms. Baker said the proposed changes occurred after the city made its decision to send a letter in support of the project. Mr. Chalnick asked if the city can attend the meeting and speak. Ms. Baker said Paul Conner is the designee to that meeting which is open to the public. A Council member could go with Mr. Conner. Mr. Chalnick said the language he is seeing is inconsistent with the intent of the Open Space Fund. Ms. Fitzgerald said the Council hasn' t yet discussed this issue. Ms. Baker said that is why the city needs to hear the VHCB discussion and decision. Mr. Chalnick said he wants to attend and speak. Both Mr. Smith and Ms. Fitzgerald said they would like to attend. Mr. McNeil said that having a Council member speak is a borderline issue. Mr. Chalnick said it is important for VHCB to know the City' s position on one of their conditions. Mr. Scanlan said Council members shouldn' t insert themselves into the process and should leave Mr. Conner to attend and then report back. He added that this appeared to be yet another effort to alter the normal process to ensure a desired outcome. Mr. Barrit expressed confidence in Mr. Conner representing the Council and said he would not attend the VHCB session. Ms. Baker suggested a motion from the Council as to what to communicate to VHCB. Mr. Chalnick moved to communicate to VHCB that the City Council would not agree to the use of Open Space Funds with condition 1C as written. Mr. Smith seconded. CITY COUNCIL 2 December 2024 PAGE 8 Mr. Conner asked what about 1C the Council objects to. Mr. Chalnick said it is to build houses on the 6 acres. Mr. Conner said that is for their protection because the City could sell those acres. Mr. Smith said this changes his understanding of what the Council agreed to. The original intent to conserve all of this property. was By taking out the 6 acres, the intent changes. The following language then added was to the motion " unless there is a permanent conservation easement attached to the six acres." In the vote that followed, the motion passed 3- 2 with Mr. Scanlan and Ms. Fitzgerald voting against. 11. Review the significant agenda topics for the Council' s regular meeting on 16 December 2024: a. FY26 Budget: City Council discussion and set public hearing b. Receive an overview and budget request from the South Burlington City Center Collaborative ( SB3C) c. Receive and consider approving a FY25 Workplan from the Recreation and Parks Committee d. Receive a request from Green Mountain Transit on a potential assessment request ( tentative) e. Convene as the Board of Health to appoint Patti Wehman to by the Health Officer and Peter Walsh as the Deputy Health Officer 12. Other Business: There bird bikes all Burlington and South Burlington. are over The batteries may have expired. Mr. Conner said they are being picked up for the winter. 13. Members agreed to strike this item. 14. Consider entering in an executive session for the purpose of discussing confidential attorney-client communications related to pending civil litigation to which body is a party ( 1 V. S. A. 313( a)( 1)( E) and the public F) and specifically the Bourne property: Mr. Scanlan moved that the Council make a specific finding that premature general public knowledge of the Council' s discussion of Pending or Probable Civil Litigation to which the City may be a Party and confidential attorney- client communications made for the purpose of providing professional legal services to the Council would clearly CITY COUNCIL 2 December 2024 PAGE 9 place this body at a substantial public disadvantage. Mr. Smith seconded. Motion passed unanimously. Mr. Scanlan then moved that the Council enter into executive session under 1 V. S. A. Section 313( a)( 1)( E) and ( F) for the purpose of discussing Pending or Probable Civil Litigation to which the City may be a Party and Confidential Attorney- Client Communications made for the purpose of providing professional legal services to the Council, inviting into the session Ms. Baker, Chief Locke, Mr. McNeil and Mr. Conner. Mr. Smith seconded. Motion passed unanimously. The Council entered in an executive session at 9: 43 p. m. Following the executive session, as there was no further business to come before the Council Mr. Smith moved to adjourn. Mr. Chalnick seconded. Motion passed unanimously. The meeting was adjourned at 10: 06 p. m. Clark, chq,,.— CITY COUNCIL 2 December 2024 PAGE 10