City Council regular meeting — March 10, 2020

Urban Planner Jessica Bernstein said that this is the consideration of an ordinance to amend a previously approved conditional zoning approval (Ordinance No. 4602) for the RAD Lofts Project (Urban Place/Conditional Zone) located at 146 and 179 Roberts Street, to revise conditions related to affordability. This public hearing was advertised on January 3 and 10, 2020. This public hearing was opened on January 14, 2020, and continued at the applicant’s request to February 25, 2020, in order to continue working with staff. On February 25, 2020, at the applicant’s request, the public hearing was continued to this date.

• Proposed condition: At least ten percent of the units shall meet the City’s standards for affordability at 80% Area Median Income or AMI (60.1
• 80% AMI) for a period of ten years from the issuance of the Certificate of Occupancy (CO). The rent and income shall follow the Affordable and Workforce Housing Standards determined annually by the City of Asheville Community Development Department. An Affordable Housing Deed Restriction will be provided by the City and filed and recorded by the applicant/property owner in the Buncombe County Register of Deeds prior to obtaining final CO.
• The project location is within Census Tract 9, an Opportunity Zone area, a designation that was not in place during the original approval nor subsequent amendments.

Background:

• The North Fork Water Treatment Plant is the largest of the three water treatment plants for the City of Asheville water system. The North Fork WTP produces approximately 67% of the water that supplies the City of Asheville’s water distribution system.
• In 2008, the North Fork water storage tank was retrofitted with five baffle curtains to increase the contact time (CT) of the treated water. The CT times are important to the treatment process at North Fork because they aid the disinfection process and are regulated by state and federal agencies.
• Four of the five baffle curtains have fallen to the bottom of the tank and are no longer serving the purpose that they were intended. As a result, the North Fork clearwell must remain above 20’ at all times and be dosed at a higher residual level to meet minimum mandated requirements.
• Geotechnical testing of the North Fork Water Treatment Plant sodium hypochlorite feed area is required to determine the degree of settlement and remediation options. This area supports the weight of two chemical bulk storage tanks that store up to 12,000 gallons each of sodium hypochlorite for use in the plant’s water treatment and disinfection.
• The storage area has exhibited signs of significant settling resulting in cracking of the floor, tank support pads, and the building foundation. Testing of the area will be required to determine what steps are necessary to stabilize and protect the facility for the future.

Vendor Outreach Efforts:

• Through a qualifications-based selection process beginning in August 2014, the City of Asheville selected nine consulting firms to provide on-call professional services for an array of different types of water system projects. Brown and Caldwell was one of the firms selected based on their expertise in areas of water treatment plant construction and upgrades.
• The City of Asheville entered into a master agreement with Brown and Caldwell on June 8, 2015 for on-call professional services valid for three years with the option to renew for two additional years.
• On April 19, 2018, the City of Asheville executed a renewal master agreement with Brown and Caldwell for the additional two years of on-call professional services.
• If approved, the proposed engineering services will be developed into a subcontract under the conditions of the master agreement.
• City of Asheville Water Resources staff determined that utilizing the on-call professional services for General Projects was the best method to deliver this project and Brown and Caldwell was the most qualified of the on-call firms. Committee(s):
• None Pro(s):
• Return the North Fork WTP water storage tank to design parameters and return operational flexibility.
• Decrease the requirement for higher disinfection dosages and costs.
• Reduce the risk of compliance violations.
• Protect and stabilize the North Fork Water Treatment Plant Sodium Hypochlorite Bulk Storage area. Con(s):

None Fiscal Impact:

• Funding for this repair will come from Water Resources capital improvement funding that was previously allocated to NCDOT projects which are delayed and will not require payment in the current fiscal year.

Review:

• Tribute Companies have applied for a Land Use Incentive Grant (LUIG) for their development at 11 Collier Avenue per the LUIG policy adopted by City Council and amended on October 22, 2019.
• The development consists of 54 rental apartments with 100% (54) of the homes proposed serving individuals and families earning between 60.1% and 80% Area Median Income (AMI) for 20 years.
• This project is located in the Asheville Central Business District
• - 11 Collier Avenue (PIN# 9648-38-5770)
• The developer estimates a total development cost of $6.5M.
• Tax Value of the property, to be based on Buncombe County Tax Assessment estimate, is $4,776,599 post completion.
• The project, as presented to staff, meets the following

Eligibility Requirements:

• The proposed development consists of two or more dwelling units for rent;
• At least 10% of the units will meet the affordability standards set by the City of Asheville for households earning 80% or less of the Area Median Income (AMI).
• The affordable units will be affordable to and leased to income-eligible households for at least 20 years.
• The proposed development must be located inside the city limits.
• The proposed development must be located to provide residents convenient access to jobs, schools and services.
• The proposed development must be 70% residential in use based on square footage not to include a parking structure if applicable.
• Per the LUIG Scoring Matrix and based upon the policy, the project will receive 110 total points for affordability and an additional 50 points for location for a total score of 160 points. Per the policy, this will equal 21 years of grants in the amount of the City Property Taxes payable on the Ashland / Coxe Development.

Proposal:

• Affordable Rental Housing
• The proposed project will provide fifty-four (54) units affordable to individuals and families earning between 60.1% to 80% of the area median income for an affordability period of twenty (20) years. Under this category, the project qualifies for 100 points.
• Rental Assistance
• The proposed project will accept 5 Housing Choice Vouchers / Rental Assistance in the community, and possibly consider more. Under this category, the project qualifies for 10 points.
• Superior locational efficiency
• The proposed project is located within .25 mile of a 1⁄2 hour transit stop served by an existing sidewalk , within the Central Business District, within 1 mile from job or urban center, and within a .5 mile from a Transportation Amenity. Under this category, the project qualifies for 50 points.
• Staff have scored the project with 160 points, which qualifies the project for twenty one years (21) of Land Use Incentive Grant. Committee(s):
• Housing & Community Development Committee
• February 11, 2020
• approved
• Finance & HR Committee
• February 25, 2020
• approved Pro(s):
• The proposed project will provide 54 affordable rental housing units to households earning 80% or less of area median income;
• The proposed project will have an affordability period of twenty (20) years;
• The proposed project addresses the pressing need for affordable one-bedroom apartments (54);
• The proposed project should have a significant economic impact. Construction wages and material purchases will positively affect the local and regional economy;
• 54 affordable units located in the central business district (walkability score of 87
• very walkable, bike score of 70
• very bikeable) provides options for our downtown community workers who fall within the 80% AMI incomes.
• Tribute Companies will communicate with the Asheville Housing Authority as the development prepares to come online that they are accepting Housing Choice Vouchers. Con(s):
• Cost estimates are not yet fully developed, and project costs as presented may change as it moves towards development.
• The Collier Development, while not required, offers no parking for its residents and can add to the individual or family transportation costs.

Fiscal Impact:

• The parcel has a combined current tax value of $521,000 and pays city property taxes of approximately $2,235 annually.
• Under the estimated Tax Value of $4,776,599 post completion, the annual city property tax will be approximately $20,487.
• The difference is $18,251 which would be granted to the property owner annually after payment for 21 years.
• For 21 years and 54 affordable units at or below 80% AMI, the city will grant back a total of $383,292 over the 21 years of the LUIG which equals $7,098 per unit of subsidy which is lower than the estimate of up to $80,000 in subsidy for 80% AMI homes as suggested by our Lord Aeck Sargeant consultants and a subsidy cap that has been noted in other LUIG Staff Reports.
• After year 21, the City will receive the approximate $20,487 annually in city tax revenue (depending on future property tax increases, etc.). Please note the City will still receive property taxes of approximately $2,235 in years 1
• 21.

Background:

• In 1993, Asheville City Council adopted Resolution 93-145; granting the City of Asheville Risk Management Division (Risk Management) authority to settle liability claims and lawsuits up to $25,000 on matters including but not limited to property damage, bodily injury, and employment claims while settlements exceeding $25,000 still required Asheville City Council approval.
• Resolution 93-145 only provided administrative settlement authority for those matters under the purview of the City’s Risk Manager. However, other liability claims are handled primarily by the City Attorney, including but not limited to land use, zoning, and code enforcement matters.
• Risk Management and the City Attorney’s Office seek updated settlement authority not to exceed $50,000 per claimant to increase efficiency by expediting claim resolutions.
• The proposed administrative settlement authority limit accounts for inflation since Resolution 93-145 was adopted in 1993, and expands the authority to include those claims managed by the City Attorney.
• Settlements exceeding $50,000 shall continue to require City Council approval. Committee(s):
• Finance and Human Resources Committee
• February 25, 2020
• unanimously adopted to move forward to full Council. Pro(s):
• Increased settlement authority expedites liability claims and lawsuit resolution to support claimants’ return to pre-loss condition and values the amount to keep up with inflation.
• Increased efficiency for Council Meetings as fewer small claims will require the body’s consideration.
• Creates consistency for claimants. Con(s):
• None.

Fiscal Impact:

• There is no fiscal impact to this action. Annually, the Property & Liability Fund is allocated by City Council to utilize for liability claims and lawsuit-related settlements. Other settlements would be funded by specific project budgets or department funds.

Background:

• The $74 million General Obligation Bond Referendum that City of Asheville residents approved in November 2016 included $5.0 million for affordable housing loans.
• Staff initially budgeted all of the G.O. Bond funding in the City’s General Capital Projects Fund, including the $5.0 million for affordable housing loans .
• After discussions with the City’s Controller, staff are recommending that the affordable housing loans be budgeted and accounted for in the City’s Housing Trust Fund in order to better track all of the loan receivables that are part of the City’s affordable housing loan program.
• In order to make this accounting change, a technical budget amendment is required to set up authorization for the loans in the Housing Trust Fund. Pro(s):
• Improves accounting and reporting by consolidating all affordable housing loans in one single fund. Con(s):
• None.

Fiscal Impact:

• There is no overall fiscal impact with this technical budget amendment.

Background:

• On January 31, 2020, FBRMPO issued a call for projects for the Federal Transit Administration FY 2019 Section 5310 and JARC Funds soliciting proposals, and upon evaluating proposals received, FBRMPO will award grant funds through a competitive process to successful applicants.
• The Section 5310 Funding program is used for improving mobility for seniors and individuals with disabilities by removing barriers to transportation services provided in the City of Asheville, and to provide enhanced mobility options to seniors and individuals with disabilities. The City uses 5310 funds to pay for a portion of the City’s existing paratransit service. The total amount of funding available from FY 2019 5310 funds is $303,332 and the City expects to apply for $166,832, which is the maximum allowed under the program. The match for these funds is 20%.
• The 5307 JARC funding source is used to fund a portion of the operating costs of Route 170, which operates fixed-route service from downtown Asheville to the Town of Black Mountain. Route 170 frequency was increased from 5 to 8 trips per day recently with the January 5 launch of increased transit service per the Transit Master Plan.
• The total amount of funding available from FY 2019 5307 JARC funds is $296,270 and the City expects to apply for $231,558, which is 50% of the total cost to operate the route 170 (the match for JARC funds is 50%).
• The City is the designated recipient for the region and oversees and administers the grants after they are awarded to subrecipients by the FBRMPO. The City receives a 10% administrative fee for this effort.The grant application deadline for both grants is March 27, 2020.
• These funds are annual recurring funds that are used to fund existing paratransit services and the Route 170 to Black Mountain. Committee(s):
• None Pro(s):
• Project funding will enable the City of Asheville to use federal funds to help offset the annual operating cost of paratransit and Route 170 fixed-route services. Grant recipients and subrecipients are responsible for their local match.
• The City will also receive $62,700 for oversight and administrative cost which does not require a local match. Of this amount, $33,703 will be used for the administrative cost for the Section 5310 program, with the remaining amount of $29,627 to be used for administering the JARC grant program. Con(s):
• The City is responsible for the 20% and 50% local match for the Section 5310 and JARC Funding programs respectively.

Fiscal Impact:

• The local match will be included in the proposed FY 2020-21 operating budget.

Background:

• The Asheville Police Department (APD) entered into a contractual agreement with LexisNexis ACCURINT (formerly ATACRAIDS) for a local and nationwide crime analysis platform on November 21, 2016. The total annual cost to APD at the onset was $29,600.00 with a 3% annual increase.
• The ACCURINT platform has been extensively used internally by APD officers and crime analysts, used by the Citizen Police Advisory Committee (CPAC), as well as made available to the both the citizens of Asheville and Media via the web based Community Crime Mapper. The platform disseminates crime data in a geospatial map and on a link analysis chart.
• On October 31, 2019, LexisNexis announced its new robust platform known as ACCURINT Virtual Crime Center (AVCC) at an annual cost of $35,000.
• The new AVCC platform and with total contract costs (Nov. 2016 to current date) is now at $124,872.

Vendor Outreach Efforts:

• LexisNexis is the creator, a sole source vendor of (AVCC), which the City of Asheville's Police Department and its citizens are familiar with and have access to since November 2016. The access is through the web based Community Crime Mapper that disseminates crime data in a geospatial map and on a link analysis chart. The Crime Mapper allows its customers to access real-time nationwide public records databases. Accordingly, there is no other vendor or application available for purchase today that has the capabilities included in AVCC.
• Due to sole source justification, no outreach to minority and women owned business conducted. Committee(s):
• None Pro(s):
• Use of a nationwide crime analysis platform, now more robust, extensively used internally by APD and its crime analysts since 2016, as well as, made available to the citizens of Asheville. Con(s):

None Fiscal Impact:

• A $5,000 increase from the 2019 annual cost, i.e., $35,000 per year with a 3% increase annually. The funding for the contract is already included in the adopted Police Department budget.

Streets Division Manager Chad Bandy said that this is the consideration of a resolution to permanently close an unopened right-of-way known as Merritt Park Lane. This public hearing was advertised on February 14, 21, 28 and March 6, 2020. Background:

• N. C. Gen. Stat. sec 160A-299 grants cities the authority to permanently close streets and alleys.
• City of Asheville has petitioned for this closure which is associated with the sale of City-owned property at 360 HIlliard Ave. (PIN # 9648-18-3942) and 9999 Merritt Park Ln (PIN # 9648-18-3669) to Hilliard Park Apartments, LLC for an affordable housing development.
• An unopened portion of Merritt Park Lane crosses the Merritt Place Lane property and runs along its eastern border.
• Upon closure, all of the portion of the unopened right-of-way that crosses Merritt Park property will become the property of Hilliard Park Apartments, LLC and all of the unopened right-of-way along the eastern border of the Merritt Park property will become the property of the City as agreed to by Hilliard Park.
• As part of the purchase agreement, Hilliard Park Apartments has agreed to construct a public greenway which will run along the western border of the 360 Hilliard property as well as the northern portion of the Merritt Park property where the unopened right-of-way currently exists. Upon completion, the greenway area will be deeded back to the City.
• This closure allows maximum land use potential for further development complying with Living Asheville
• A Comprehensive Plan for our Future. This is part of the construction of the affordable housing project at 360 Hillard and the ultimate construction of the greenway.
• An easement for MSD is being reserved within the closure, no other known utilities exist Committee(s):
• Multimodal Transportation Committee -January 22, 2020; Recommended closing the right of way by unanimous vote Pro(s):
• The closure would allow for more efficient use of the existing adjacent properties.
• A portion of the closed right of way on the Merritt Park property will be constructed as a public greenway.
• Meets Council’s goals to promote sustainable high density infill growth that makes efficient use of existing resources, by allowing the construction of the affordable housing at 360 Hillard and allowing for the construction of the new greenway. Con(s):
• None noted.

Fiscal Impact:

• There will be no fiscal impact related to this closure. Mayor Manheimer opened the public hearing at 6:03 p.m., and when no one spoke, she closed the public hearing at 6:03 p.m. Mayor Manheimer said that members of Council have previously received a copy of the resolution and it would not be read.

Vice-Mayor Wisler, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing a member to the Board of Electrical Examiners. David Martin (utility representative) has resigned as a member of the Board of Electrical Examiners, thus leaving an unexpired term until July 1, 2020. The following individual applied for the vacancy: Drew Pike The Boards & Commissions Committee recommended appointing Drew Pike.

Vice-Mayor Wisler, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Multimodal Transportation Commission. Kim Roney (transit representative) has resigned as a member of the Multimodal Transportation Commission, thus leaving an unexpired term until July 1, 2021. David Nutter (greenway representative) has resigned, thus leaving an unexpired term until July 1, 2022. In addition, John Rideout (at-large representative) has resigned, thus leaving an unexpired term until July 1, 2020. The following individuals applied for the vacancy: Dennis Wencel, Shannon Watkins, Amy Jones and Sandy Aldridge. At the recommendation of the Multimodal Transportation Commission, and the Boards & Commissions Committee recommended appointing Dennis Wencel as the at-large representative and to re-advertise for the two remaining seats..