City Council

J southburlington VERMONT MINUTES CITY COUNCIL 13 JANUARY 2025 The South Burlington City Council held a regular meeting on Monday, 13 January 2025, at 6: 30 p. m., in the Auditorium, 180 Market Street, and by Zoom. 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; J. Pellerin, Deputy City Attorney; H. Rees, City Clerk; Chief S. Burke, Police Department; M. Machar, Finance Director; T. DiPietro, Public Works Director; E. Quallen, Public Works Deputy Director of Capital Projects; P. Conner, Director of Planning & Zoning; J. Murray, City Librarian; I. Blanchard, Community Development Director; M. Sousa, HR Generalist; A. Brumbaugh, Communications Coordinator; N. Gingrow, IT Director; C. Corbin, Deputy Fire Chief; B. Sirvis, Dr. J. Okech, S. O' Brien, D. Cappell, W. Coleman, E. Schait 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 asked to remove one page from disbursements and to add, between items 14 and 15, an executive session related to the purchase of right- of-way and PAGE 1 a discussion of authorization related to the purchase of right- of-way ( the latter being the item removed from the disbursements). 4. Comments and questions from the public not related to the agenda: There were no comments or questions from the public. 5. Announcements, councilors reports from committee assignments and City Manager' s Report: Council memberspresented their " start of the year" thoughts and reported on meetings and events they had attended in recent weeks. Ms. Baker: Recognized Deputy Fire Chief Chris Corbin as recipient of a Chief Fire Officer certification, now one of 4 to have attained that certification in the State. Three new Firefighters and one new Police Officer were sworn in this week. The new Climate Action Manager joined the staff on this date. The City will meet with Long View Property officers on Friday. The next regular City Council meeting will be in February. The Council will meet with the School Board as Steering Committee on 22 January at 4 p. m. at the School District offices. 6. Consent Agenda: a. Approve and Sign Disbursements b. Receive the FY25 Policy Priorities & Strategies Report# 1 c. Approve the Unified Planning Work Program submittals for 2025 to include ADA Transition Plan for transportation system; plan for implementation of our sidewalk/ path improvements; Mary Street/ Williston Road Scoping; Plan for getting EV charging into existing multi- unit housing; and Active Transportation Plan Part II official map, parallel routes, signage/ marking package for local streets) d. Authorize the City Manager to execute a Utility Agreement with Green Mountain Power, Comcast, and Consolidated for the Pedestrian and Bicycle Bridge over 1- 89 at Exit 13 ( Parcel # 8) CITY COUNCIL13 JANUARY 2025 PAGE 2 Mr. Chalnick moved to approve the Consent Agenda minus the one page of disbursements indicated above. Ms. Fitzgerald seconded. Motion passed unanimously. NOTE: Items on this agenda were heard out of numerical order but will be recorded as they appear on the agenda. 7. Hold a Public Hearing on the Proposed FY26 Budget and Capital Improvement Plan: Mr. Smith moved to open the public hearing. Mr. Scanlan seconded. Motion passed unanimously. Ms. Baker recognized the work of the administrative staff in preparation of this budget. She then provided some city demographics including: City population - 21, 043, 16. 3% of whom are over age 65 Residents with at least a Bachelor' s degree - 63% City employees - 195 in 14 departments 131 volunteers serving the City on committees, etc. 8 City buildings Budget goals for the FY26 budget include: a. Maintaining the current level of service b. Maximizing non- property tax revenues ( including local option taxes) c. Sensitivity to property tax impact d. Addressing State funding shortages e. Providing Sunday hours for the Library f. Providing funding for the City Center Collaborative g. Increased funding for road striping and sidewalks Ms. Baker noted that the proposed budget in a 3. 3% increase in property results taxes which will mean a yearly increase to the condo of$ 49. 59 and to the average single- family home of $ 73. 47. The budget includes a 3. 1% increase in the Pennies for Paths and Pennies for Open Space assessment CITY COUNCIL13 JANUARY 2025 PAGE 3 The general fund budget includes increased in the cost of insurances and a decrease in the allocation to the Pension Fund. There is an increase in the contribution to the Capital Improvement Plan to keep up with preventive maintenance. Ms. Baker showed a pie chart of how property tax monies are distributed. There will also be increases in Utilities costs: 3% in Stormwater, 8% each in Water and Sewer. Ms. Baker then enumerated items not included in the FY26 budget including: a. Exploration for a Recreation Center b. A City Green c. Additional Funds for the City Clerk' s office d. Funding for recommendations for Safe Routes to School e. Parking Fund initiation f. New funding for cemeteries Ms. Baker then reviewed the budget calendar through the Town Meeting Day vote on 4 March 2025. Mr. Smith expressed gratitude to the leadership team and to City staff for meeting the Council' s budget goals and being sensitive to costs. Mr. Barritt asked for public comment. Mr. Coleman: Asked the Council to be mindful that they are " competing" with the School District. Mr. Scanlan echoed Mr. Smith' s gratitude to staff for both the current and proposed budgets and noted that this will be an annual challenge. As there was no further public comment, Mr. Chalnick moved to close the public hearing. Mr. Smith seconded. Motion passed unanimously. 8. Approve Resolution # 2025- 1 to use ARPA Inspired Fund Balance to support Climate Capital Improvement Plan projects in FY26: CITY COUNCIL13 JANUARY 2025 PAGE 4 Mr. Chalnick moved to approve Resolution # 2025- 1 to use ARPA Inspired Fund Balance to support Climate Capital Improvement Plan projects in FY26. Mr. Smith seconded. Motion passed unanimously. 9. Consider the Proposed FY26 General Fund, Capital Improvement Plan, and Enterprise Budgets. Approve Resolution # 2025- 2 approving the FY26 to FY35 Capital Improvement Plan. Approve Resolution # 2025- 3 approving the FY26 City Budget and Enterprise Funds and sending all to the Steering Committee and to the voters on Town Meeting Day 2025: Mr. Chalnick moved to approve Resolution 2025- 2, the FY26 to FY35 Capital Improvement Plan, and Resolution # 2025- 3 the FY26 City Budget and Enterprise Funds and send these to the Steering Committee and to the voters on Town Meeting Day 2025. Ms. Fitzgerald seconded. Motion passed unanimously. 10. Approve the 2025 Town Meeting Day Warning and set the Public Information/ Public Hearing for 3 March 2025 at 6: 30 p. m.: Mr. Chalnick moved to approve the 2025 Town Meeting Day Warning and set the Public Information/ Public Hearing for 3 March 2025 at 6: 30 p. m. Ms. Fitzgerald seconded. Motion passed unanimously. 11. Approve Resolution # 2025- 4 setting the water, wastewater, and stormwater rates and allocation fees for FY26: Mr. Chalnick moved to approve Resolution # 2025- 4 setting water, wastewater, and stormwater rates and allocation fees for FY26. Mr. Smith seconded. Mr. Barritt said he didn' t see reference to the Water Tower bond. Ms. Baker said it is built into the budget. Ms. Machar said it was approved in last year' s resolution, and the Council is now just approving the rates. In the vote that followed, the motion passed unanimously. 12. Receive a briefing on the City' s response to Act 180 ( pre- charge Community Justice Center services) and advocacy around regionalization. Provide direction to staff: CITY COUNCIL13 JANUARY 2025 PAGE 5 Chief Burke noted that pre-charge CJC services were previously funded by the Department of Corrections. The State has now shifted that responsibility to the Attorney General' s Office with no State funding at this time. Chittenden County has four CJC centers; other counties have one. The Chief said the hope has been to keep all the centers functioning. They came up with a strategy which they shared with the Council via a letter. Ms. Baker added that the hope has been to keep the pre- charge services near They are now asking to have the communities. two centers in Chittenden County instead of the one they were told they would have. Chief Burke cited the synergy between CJC and his staff. Offenders come to understand the negative impacts of their actions. Getting to these offenders early in their mistakes lowers the recidivism rate. Ms. Baker asked if the Council would continue to support the role that she and Chief Burke are taking on. The Chief said this will make South Burlington more effective as a community and can help people to make better decisions. Ms. Fitzgerald asked if there are some South Burlington needs that should be addressed over time. Chief Burke said there are some services not needed at this time that could be in the future. Members supported the path being taken by Ms. Baker and the Chief. 13. Receive the City Pension Asset Update and Net Performance Report from the City' s Pension Fund Manager: Ms. Machar provided an overview of the City' s pension plans. The City plan closed to new employees in 2013 ( to the Fire Department in 2018 and to the Police Department in 2019). That plan has a committee comprised of one City Councilor, one from each union, the City Manager, Deputy City Manager, and City Treasurer. All activity goes through SEI to be sure the plan is adequately funded. Mr. Cappell said the value of the City' s Pension Plan as of 12/ 31/ 24 is 47, 300, 000. 00 which represents a gain of $ 4, 800, 000. 00. All active strategies outperformed. 4. 14% was returned on fixed income. Real estate was one of the more challenging elements as interest rates have risen. It showed a - 5. 47%. CITY COUNCIL13 JANUARY 2025 PAGE 6 Mr. Cappell noted that they are responsible for the hiring and firing of managers, and following a review, they fired and hired managers. Once a year they also do a study to determine that assets are appropriately invested. Mr. Cappell then provided a fee summary. He noted that fees are aggregate with the School District whose value is about $ 9, 000, 000. 00. Total fees were about 290, 000. 00 on an annual basis. Fees include: strategic advice, manager research at good pricing, reporting, the cutting of all benefit checks, trustee education, ongoing financial modeling, education of committee members, and a secure client website. Mr. Barritt asked if their structure has ever been attacked. Mr. Cappell said they see stuff come up all the time. They have a security system similar to what banks use, but they need to be prudent all the time. To date, there has been no negative impact to the fund. Mr. Cappell then showed a summary of the plan and noted that more than 50% of growth was based on investments. 14. Receive the City Pension Actuarial Update and FY23 Pension Valuation: Mr. Schait said the plan is a defined benefit plan which pays retired employees a monthly amount. He reviewed funding methods including the unit credit method which was used prior to 1 January 2014 and the Entry Age Normal method which is now required. Mr. Schait noted that 2019 was the final date when no new employees could enter the plan. When that happened, they took a look at the plan. The aim is to have the plan fully funded by 2039 when roughly everyone on the plan will be retired. Mr. Schait noted that the employee contribution this year was 250, 000. He reviewed the funded status of the plan and showed a graph of the funded status over the past 14 years. South Burlington is about 90% funded compared to VMERS which is 75%, the State Teachers Plan which is 61%, and the City of Burlington which is at 67%. Mr. Schait said South Burlington is very well funded and is moving in the right direction. Mr. Barritt asked if mortality rates are improving. Mr. Schait said since COID, there is a pause in releasing tables until they can be analyzed. CITY COUNCIL13 JANUARY 2025 PAGE 7 Mr. Schait then showed a graph of plan participation. He noted that there has been a decrease from 130 to 53 participants in the past 14 years. 59% of participants are not receiving benefits at this time but are no longer employed by the City. 52 people are getting benefits. Mr. Chalnick questioned whether 7. 25% was too aggressive. Mr. Schait said they try to look into the future. They review expectation with SEI. They feel that 7. 25 is a median rate. Mr. Chalnick said he wouldn' t mind seeing 7%. Mr. Barritt said that would increase the City' s contribution. Mr. Barritt asked whether the City could sell the plan to a company that would deal with it as an annuity. Mr. Schait said they could, and there are services for annuity placements. Mr. Scanlan asked where the city stands nationally. Mr. Schait said it is one of the best funded plans nationally. Ms. Baker cited the work of prior Deputy City Manager Tom Hubbard who set the City up for success. 14a. Consider entering Executive Session pursuant to 1 V.S. A. Section 313( a)( 1)( A) and ( 2) for the purpose of discussing securing of real estate purchase or lease options, specifically 1- 89 Bicycle and Pedestrian Bridge right- of-way acquisitions: Mr. Scanlan moved that the Council meet in Executive Session, pursuant to 1 F. S. A. Section 313( a)( 1)( A) and ( 2) for the purpose of discussing securing of real estate purchase or lease options, specifically 1- 89 Bicycle and Pedestrian Bridge right- of- way. Mr. Chalnick seconded. Motion passed unanimously. 14b. Possible discussion of and grant of authorization to the City Treasurer to execute one payment for right- of-way acquisitions relating to the 1- 89 Bicycle and Pedestrian Bridge: Mr. Chalnick moved to authorize the City Treasurer to execute one payment for right- of- way acquisitions relating to the 1- 89 Bicycle and Pedestrian Bridge. Ms. Fitzgerald seconded. Motion passed unanimously. CITY COUNCIL13 JANUARY 2025 PAGE 8  15. Discuss and approve the annual process for the City Manager' s review: Ms. Baker proposed using a form endorsed by ICMA for her annual review by the City Council. She would also complete a self-evaluation and the Leadership Team would provide feedback. An annual evaluation is part of her contract. Mr. Barritt said this worked well last year. Mr. Chalnick suggested anonymous responses from members of the Leadership Team. Mr. Chalnick suggested adding some questions to be answered on a rating scale including: leads by example, treats everyone fairly, supports career growth, and is the Manager highly effective. Ms. Baker was fine with that. Ms. Fitzgerald asked if it is reasonable to ask to see last year' s evaluation. Ms. Baker said she could share that, but it is just the raw data which led to discussion. Mr. Barritt was not in favor of that idea. Ms. Baker suggested forwarding members what was done last year so there is no perception of something being hidden. Members were OK with this. Mr. Smith moved to approve the process for the City Manager' s review as amended. Mr. Chalnick seconded. Motion passed unanimously. 16. Other Business: Mr. Smith questioned the possibility of using pet friendly salt on the multi- use paths. He didn' t know the cost. Mr. Chalnick said it is about 10 times the cost. He suggested possibly looking into a joint effort with the City of Burlington to get a better price. Ms. Baker noted that Mr. DiPietro has said there isn' t a bulk supplier in the area, and the cost would go from $ 88 a ton to $ 5, 000 a ton. Mr. Smith said if there is a strategic way to do this, he would like to do the research. As there was no further business to come before the Council Mr. Chalnick moved to adjourn. Mr. Smith seconded. Motion passed unanimously. The meeting was adjourned at 9: 08 p. m. cA CITY COUNCIL13 JANUARY 2025 PAGE 9