City Council regular meeting — April 13, 2021

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Audit Committee. The terms of Amy Kemp (CPA seat) and Gail Miller expire on May 1, 2021. The following individuals applied for the vacancies: Travis Keever, Tim Kelley and Andrew Emory. The Boards & Commissions Committee recommended reappointing Amy Kemp (CPA seat) and appointing Andrew Emory to the Audit Committee.

Background:

• The City of Asheville will enter into an interlocal agreement with Buncombe County to give authority to conduct feasibility site assessments and issuance of a joint solicitation for onsite solar energy systems.
• Onsite energy systems installed will be a photovoltaic (PV) system. A PV system is a power system in which solar panels will convert sunlight to electricity. Electricity generated will be consumed at the site where they are located. Any additional electricity not able to be used on site will be supplied back to the electricity grid managed by Duke Energy.
• The solicitation will be issued by Buncombe County and will also include sites from Buncombe County, Town of Weaverville, Town of Black Mountain, and UNC Asheville.
• Joining the solicitation with these partners will increase the requested number of renewable systems which may provide all parties with lower prices.
• It also supports Buncombe County Resolution 17-12-06 to transition all of Buncombe County to renewable energy by 2042.
• The City will be responsible for selection of the sites, funds for feasibility assessments, and funds to prepare solicitation documents.
• The City is under no obligation to enter into an agreement with responsive bidders if it is not deemed in the best interest of the City. Committee(s):
• Sustainability Advisory Committee on Energy and the Environment
• March 10, 2021- Support Pro(s):
• Supports Resolutions 11-77 (80% carbon reduction goal), 18-279 (100% renewable energy goal) and 20-25 (climate emergency declaration).
• An interlocal agreement with Buncombe County will increase the requested number of renewable systems which may provide all parties with lower prices. Con(s):

None Fiscal Impact:

• $10,000 has been budgeted from the Green Savings account to prepare solicitation documents for solar systems and $13,172 has already been spent in technical analysis.
• The solicitation will accept “solar leasing” or “energy as a service” responses.
• Solar leasing or energy as a service would require a long-term agreement that translates into a low-to-no upfront cost to install the solar systems with an annual or monthly payment agreed upon with the bidder and recipients.
• Ideally, the annual cost would be at or below the electric utility cost already incurred by these facilities.

Background:

• As part of its ongoing operations, the City enters into various contracts and purchase order agreements throughout the fiscal year.
• Budget funds are encumbered for the full amount of the expected purchase.
• These contracts and purchase orders are often not fully completed and paid in one fiscal year.
• North Carolina General Statutes provide authorization for local governments to reserve the unexpended portion of these prior year commitments and roll those budgets forward to the new fiscal year.
• As a part of the FY 2019-20 annual audit, staff identified prior year commitments and carry-over appropriations to roll forward to FY 2020-21.
• These dollar amounts were deducted from the unassigned fund balance amounts that were reported in the Comprehensive Annual Financial Report.
• The technical budget amendment will provide authorization to officially appropriate these amounts in the FY 2020-21 budget for each of the City’s annual operating funds. It is standard practice for staff to bring forward this technical budget amendment each year at the same City Council meeting in which the external auditors present the annual audit results. Committee(s):
• None Pro(s):
• Provides budget authorization for prior year contracts, purchase orders, and other carry-over appropriations that rolled forward to FY 2020-21. Con(s):
• None.

Fiscal Impact:

• There is no impact on unassigned/available fund balance in the City’s operating funds.

Tracey Greene-Washington, representing CoThinkk, founder of Co-Thinkk, said that they led by African-American & Latinx leaders in Asheville and Western N.C. committed to using our time, talent, and treasure to address some of the most critical issues impacting communities of color. It is important that they are able to do three things

• as a complimentary action, as CoThinkk is presented as one of two potential recipients that will receive a portion of proceeds from the recent settlement. The first is to ensure we create transparency regarding the process that allowed us to reach consensus with the City regarding the donation and our internal CoThinkk process. The second is to clarify the structure of CoThinkk, the amount and what it really costs to do structural change and racial equity work. And, is a calling in of fellow social change philanthropists to be at the table with us as we continue to evolve our collective work that is anchored in equity, liberatory practices, and innovation that will be needed for the future. They are humbled to receive this donation and know that intentional work to implement, do and facilitate structural change necessitates deep investment. She noted that she submitted a letter with all her comments to City Council.

Background:

• To help Buncombe County administer COVID-19 vaccinations in a quicker, more efficient manner, the County recruited area-wide fire departments including the Asheville Fire Department and Harrah’s Cherokee Center Asheville for staffing assistance of operations at the sites.
• During its time onsite, the Asheville Fire Department and Harrah’s Cherokee Center Asheville staff help with appointment registration; administering vaccinations; patient observation education; traffic management; resource management; and logistics support.
• Buncombe County will reimburse the City at hours paid (regular or overtime) plus fringe benefits for all employees assisting in the operations of the County COVID vaccination and testing site
• The agreement ends in June 2021.

Vendor Outreach Efforts:

• Agreement is with Buncombe County Committee(s):
• None Pro(s):
• Receiving reimbursement funds will reduce the impact this assignment has on the Asheville Fire Department and Harrah’s Cherokee Center Asheville compensation and benefits budgets.
• Assisting Buncombe County with their COVID vaccination efforts allows for more vaccines to be administered during the time period set forth in the agreement than could be administered without the participation of the Asheville Fire Department and Harrah’s Cherokee Center Asheville.
• The Asheville Fire Department continues its long relationship with working with Buncombe County to deliver public safety services. Con(s):

None Identified Fiscal Impact:

• The fiscal impact will be neutral because Buncombe County will reimburse the City of Asheville all its compensation and benefits expenses.
• The reimbursements will be around $50,000 each month and will vary depending on actual staffing levels and compensation amounts.

Action(s) Requested: Adoption of a resolution to accept a grant from Dogwood Health Trust in the amount of $50,000 toward the City’s $130,000 agreement with Western Carolina Rescue Ministries, Inc. to provide Code Purple Emergency Shelter Background:

• Code Purple is a longstanding practice where homeless shelter providers exceed regular capacity and waive regular rules on nights when the temperature or windchill are at/below 32 degrees in order to ensure survival of people experiencing homelessness.
• Code Purple is a community-led initiative that has primarily been coordinated by agencies in the Homeless Coalition.
• COVID-19 has created many challenges for homeless service providers and therefore no emergency shelters were able to participate in Code Purple this winter at their facilities.
• Western Carolina Rescue Ministries, Inc. agreed to operate Code Purple in an off-site location.
• In order to meet these extraordinary circumstances, on December 1, 2020, the City of Asheville entered into an agreement with Western Carolina Rescue Ministries, Inc. to provide up to 50 Code Purple beds at First Congregational United Church of Christ (20 Oak Street) for the month of December.
• Funding for this first month of operations in the amount of $42,240 came from Coronavirus Relief Funding (CRF) previously approved by the City Council.
• To continue shelter operations, the City of Asheville entered into an agreement with Western Carolina Rescue Ministries, Inc. on January 1, 2021 for $80,000.
• Buncombe County agreed to provide $40,000 of funding to assist with those costs; the City funded the other $40,000 with previously budgeted affordable housing pay-go funding in the City’s Capital Improvement Program (CIP).
• On February 23, 2021, City Council authorized an amendment to the agreement with Western Carolina Rescue Ministries, Inc. to add $50,000 to continue shelter operations.
• On February 23, 2021, Dogwood Health Trust awarded the City of Asheville $50,000 towards the cost of Code Purple Emergency Shelter.
• This resolution will accept those funds for that purpose. Committee(s):
• None Pro(s):
• Continues the essential operation of Code Purple
• Addresses public health and safety
• Demonstrates community ownership and willingness to partner to address the needs of the homeless Con(s):

None Fiscal Impact:

• As noted above, Code Purple Emergency Shelter costs have previously been funded through a combination of Coronavirus Relief Funding, Buncombe County funds, and City of Asheville CIP funds.
• Accepting these grant funds will offset the City’s allocation of CIP funds for this contract. Motion(s):
• Motion to adopt a resolution accepting a grant from Dogwood Health Trust in the amount of $50,000 toward the City’s $130,000 agreement with Western Carolina Rescue Ministries, Inc. to provide Code Purple Emergency Shelter Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolutions and ordinances on the Consent Agenda and they would not be read.

Mayor Manheimer said that this public hearing was held on March 23, 2021, and due to recent legislation regarding remote meetings, the public hearing comment period remained open for 24 hours after the public hearing. At Mayor Manheimer’s request to provide some summary information, Community Development Program Director Paul D’Angelo said that the Community & Economic Development Department is seeking authorization for the City Manager to submit an amendment to the 2020-21 HUD Annual Action Plan to the U.S. Dept. of Housing & Urban Development authorizing the $1.6 Million in Community Development Block Grant Program Income from the sale of Charlotte Street to be used to purchase 65 Ford Street. He then gave a brief summary of the CDBG Funding (1) The City of Asheville receives approximately $1M in our HUD CDBG Annual Allocation for our Community Partners; (2) The City can't have more than $1.5M (1.5x Spend Rate) on May 1st

• Timeliness Test
• to comply with HUD that we are spending these dollars in the community in a timely manner; (3) The City currently has approximately $2M in our Total Line of Credit; with the $1.6M in CDBG Program Income from the sale of Charlotte Street, our balance is $3.6M; and (4) We need to spend $2.1M by May 1st
• $1.5M for the purchase of 65 Ford St. and $600,000 on our subrecipients already under contract
• to pass the Timeliness Test. He gave a summary of the Timeliness Test is (1) City Staff have discussed this $1.6M in CDBG Program Income since Late Fall 2019 because of the large dollar amount & the HUD Timeliness Test; (2) The original plan was to close on the Charlotte St. sale after May 1st, 2020, to provide more time and hence more options on how we could spend these dollars; and (3) With COVID and normal real estate delays, the City did not receive the $1.6M in proceeds until late December 2020 / early January 2021 and immediately began communicating with City Management about spend options, now very limited with the timeliness test. Mr. D’Angelo then gave a summary of why the purchase of 65 Ford Street (1) The purchase of 65 Ford Street was far enough along in the process with Council approval, due diligence and HUD Environmental to be able to close with this funding on or around April 23, 2021; (2) The purchase is a strategic use of these funds as this purchase meets a national CDBG objective, is an eligible activity, follows a High Priority in the HUD Consolidated Plan, is timely and keeps us HUD Compliant; and (3) HUD has a longstanding policy of reducing the next year's grant allocation of a grantee that continues to be untimely and may take corrective actions as needed to remedy the deficiency including sanctions. Staff recommends the purchase of 65 Ford Street site and use of Community Development Block Grant funds for the following reasons: (1) This $1.5M purchase of 65 Ford Street invests CDBG PI back into the community with the intent of the land being used for affordable housing, including homeownership; (2) This land purchase is an eligible use of CDBG PI, is timely to remain HUD compliant and frees up Affordable Housing Bond dollars that are less restrictive than HUD dollars; and (3) These funds were accounted for in the FY 20/21 HUD Annual Action Plan and staff has been working in tandem with HUD for guidance on this PI and diligently to move this funding into the community and pass the Timeliness Test. Hearing no more public comment, Mayor Manheimer closed the public hearing and said that members of Council have previously received a copy of the resolution and budget amendment and they would not be read. Councilwoman Roney said we have an obligation to invest in Deaverview with Deaverview and we have an obligation to address the harms of urban renewal and red lining with the neighbors, especially the Black community impacted by urban renewal and red lining. We can’t continue harm and displacement by pushing people to the outskirts and outside of access to infrastructure and visibility and outside of the City School System. She understands and hears the complex situation we are in, but this conversation is not over yet because we still have resources to address and we still have issues at hand that are overlapping. She has heard the request for the Asheville-Buncombe County Land Trust to be at the table with us as we continue these conversations. Because of their partnership with us and because guaranteed permanent affordable housing is part of their mission, she would support these actions. Vice-Mayor Smith said that in order to meet the Timeliness Test and since we have limited options, she would support these actions.

Community Development Program Director Paul D’Angelo said that this is the consideration of approving a Mountain Housing Opportunities (MHO) request to extend the maturity dates of a total of five City of Asheville Rental Rehab for Owners and Tenants/ Community Development Block Grant (CARROT/CDBG) loans valued at $683,028 and eliminate yearly interest payments in exchange for an additional 20-year affordability period and rent restrictions raised to 60% AMI from 50% AMI. Background:

• From the early 1990s to the mid-2000s, MHO was committed to developing smaller, scattered site rental housing for some of the most low income households in Asheville.
• Utilizing Section 108 and CDBG loans from the City of Asheville, MHO acquired and renovated six older properties that created 22 affordable units.
• MHO primarily used the Section 108 funded CARROT (City of Asheville Rental Rehabilitation for Owners and Tenants) loan program which provided low interest rates for investors of affordable housing.
• Each of these loans will become due over the next four years.
• Between May 4, 2000 and March 15, 2004, the City of Asheville extended five (5) loans to MHO for the properties listed below: Project Units Original Principal Balance Anticipated Balance on 7/31/2021 Yearly Interest Maturity Date Affordability Period Extension Source 61-63 Annandale 6 $212,450 $187,104.84 5.3% 5/1/2021 5/1/2041 CARROT 65-67 Annandale 7 $231,000 $218,204.29 5.3% 5/1/2021 5/1/2041 CARROT 65-67 Annandale 7* $31,500 $31,500.00 0%* 5/1/2021 5/1/2041 CDBG 6 Trinity Chapel 1 $33,000 $23,631.10 3% 10/1/2023 10/1/2043 CARROT 280 Merrimon 8 $250,000 $222,884.86 2% 3/1/2025 3/1/2045 CARROT This loan does not have an interest rate. 65-67 Annandale utilized both a CDBG and CARROT loan. This is represented as two entries due to two loans on the same unit. These units should not be counted twice when tallying total units
• MHO has found that operating cash from older renovated properties is not sufficient to pay debt service and build replacement reserves for future capital needs due to the high maintenance costs associated with the age of the buildings.
• The properties currently operate at a break-even level.
• Per MHO, the pandemic has exacerbated this issue due to some tenants inability to pay rent.
• Deferring the debt will allow MHO to build the necessary reserves to maintain these aging properties.
• The Community Development Division attempts to work with our development partners who wish to extend their affordability periods, add additional affordable units, etc.
• If rents are raised to 60% AMI, this would apply only to new and future tenants. Existing tenants would not be affected by the increase in AMI. Committee(s):
• Housing & Community Development (HCD)
• March 16, 2021
• Approved unanimously. Pro(s):
• By approving MHO’s request, affordable units are preserved for an additional 20 years while also protecting future program income that may result from the sale of a property or if units are no longer affordable.
• Units accept vouchers. Con(s):
• The City will no longer earn approximately $25,000 annual interest on these loans.
• The interest is received as program income for Community Development Block Grant funding.

Fiscal Impact:

• No effect on the general fund.
• The loans were made using federal funding sources.
• When funds are returned to the City, funds would be reprogrammed for similar purposes.
• A balloon payment will be due at each of the new maturity dates.
• Each of these loans will be set up as no interest and no monthly payments. Mayor Manheimer announced that there were no advanced live call-ins for this item. Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolution and it would not be read.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing an Alternate member to the Board of Adjustment. Due to a discrepancy between the Unified Development Ordinance and Session Laws, City Council should appoint another Alternate member. (Buncombe County now appoints only one Regular and one Alternate member

• not two Alternate members). The following individual applied for the vacancy: Wendy Tabb. The Boards & Commissions Committee recommended appointing Wendy Tabb..

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Mountain Community Capital Fund Operating Committee. The terms of Dee Williams and Lynn Smith, as members of the Mountain Community Capital Fund, expired on April 1, 2021. ‘ The following individuals applied for the vacancies: Gilbert Amengual, Carl E. Alguire and Dane Barrager. The Boards & Commissions Committee recommended reappointing Dee Williams and Lynn Smith.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Public Art & Cultural Commission. Due to the resignation of Valeria Watson, there currently exists a vacancy on the Public Art & Cultural Commission until June 30, 2023. The following individuals applied for the vacancy: Nathaniel Wyrick, Christina O’Donnell, Hilary Chiz, Michael G. Waddle, D. Rae Geoffrey, Robin Ellege, Rodney Moore, Marie West, Tarek Inkidar, Wayne Wheeler, Mark Wilson, Bridget McFarthing, Robert Milnes, Reggie Tidwell, Claire Changery, John Moriarty, Leslie Shaw, Erin Clare, Shirley Whitesides and Whitney Richardson. The Boards & Commissions Committee recommended appointing Shirley Whitesides.