City Council regular meeting — May 11, 2021

Finance Director Tony McDowell, along with Water Resources Director David Melton, said that this is the consideration of an ordinance establishing the Fiscal Year 2021-22 Water Resources fees and charges. Background:

• Fees and charges fully fund the Water Resources Department functions.
• The Department does not receive any funding from the General Fund.
• In 2018 the North Carolina Supreme Court issued an opinion in the case of Quality Built Homes Inc. v. Town of Carthage.
• In this opinion the Court determined that cities were not permitted to charge water and sewer “impact fees.”
• Thereafter, law firms began filing lawsuits against cities throughout the State who had charged these fees in recent years.
• Asheville was also named in two class action lawsuits based upon its Capital Improvement Program (CIP) Fee for water service.
• These lawsuits were settled without any admission of liability by the City.
• The settlement, however, included an agreement to discontinue the CIP fee at the beginning of FY 2020-21.
• The financial impact of this agreement was approximately $2,100,000 for settlements, and approximately $7,500,000 in annual revenue from the CIP fee.
• Water Resources has averaged reinvesting approximately $11,000,000 annually over the past three years in capital improvement projects.
• Loss of the CIP fee revenue has a direct impact on the Department's ability to continue reinvesting in the sustainability of the water system.
• Loss of the CIP fee also impacts the revenue coverage ratio that debt rating agencies, such as Standard & Poor’s and Moody’s, use to evaluate the credit worthiness of the water system.
• The loss of annual revenue and the impact on the ability to reinvest in the water system necessitated a rebuild of the current Water Resources rate model.
• Raftelis Financial Consultants, Inc. was secured to perform the rebuild of the rate model, which was completed earlier this year.
• An attachment was provided of the overview of the rate model realignment proposal for the various customer classes.
• The proposed rates for FY 2021-22 are slightly higher than current charges, but are less than customers were charged in FY 2019-20 prior to the lawsuit settlements.
• Staff will work with the consultants from Raftelis to refine rate realignment recommendations for Council consideration in future years, which will allow the system to meet its financial requirements while continuing to evaluate the differential between the residential and commercial customer classes. Committee(s):
• Finance & Human Resources Committee
• April 21, 2021
• unanimously recommended to move forward to full Council. Pro(s):
• Provides an opportunity to recover the cost of services from those who directly utilize or benefit from the service.
• Provides the revenue to continue much needed reinvestment into the water system to maintain sustainability.
• Provides required debt coverage ratios and credit ratings.
• Allows staff to begin communicating fee changes to customers and stakeholders so they are aware of changes prior to the effective date. Con(s):
• A small increase to current annual costs to customers.
• Additional customer rate increases will likely be required in future years.

Fiscal Impact:

• The bi-monthly impact on the average residential household is shown below. As noted above, detail for all customer classes is included as an attachment to this staff report. 2020 including CIP charge 2021 without CIP charge 2022 proposed fees & charges $65.38 $56.86 $63.29 3.2% Decrease from 2020 to 2022 Mayor Manheimer announced that there were no advanced live call-ins for this item. Mayor Manheimer said that members of Council have previously received a copy of the ordinance and it would not be read.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that on February 23, 2021, City Council adopted an ordinance regulating hotel development standards and part of that ordinance was the formation of a new Design Review Committee to review applicable hotel applications in the Central Business District or the River District. Four members shall be current members of the Downtown Commission, four members shall be current members of the Asheville Area Riverfront Development Commission, and one member will be appointed by the other eight. The following individuals applied for the vacancies by the representations of the Downtown Commission or the Riverfront Redevelopment Commission. From the Downtown Commission: Guillermo Rodriguez, Steven Lee Johnson, Kimberly Hunter, Robin Raines and Bryan Moffitt. From the Riverfront Redevelopment Commission: Jane Mathews, Ben Williamson and Jeremy Goldstein. On April 27, 2021, the Boards & Commissions Committee recommended appointing Robin Raines, Steven Lee Johnson, Kimberly Hunter and Guillermo Rodriguez from the Downtown Commission; and Jane Mathews, Ben Williamson and Jeremy Goldstein from the Riverfront Redevelopment Commission, with the last seat to be filled by a member of the Riverfront Redevelopment Commission at a later date. Councilwoman Turner said that Guillermo Rodriguez currently serves on the Planning & Zoning Commission and the Downtown Commission and since those are two large boards, she spoke with Mr. Rodriguez who said that he would reapply for the Design Review Committee next year.

Background:

• Memorial Stadium Park is a multi-use facility in the heart of downtown Asheville that is used extensively for both recreational and professional activities.
• The playing surface is artificial turf that has exceeded its useful life and is in dire need of replacement.
• This is a maintenance project that will be replacing the existing sub base, playing surface, field drainage system and replacing/relocating the stormwater system.
• This work is being done to ensure safe use of the field.
• Additionally, sidewalks and a ramp will be installed to create accessibility to the concrete seating area on the east side of the stadium.
• This project will start in summer 2021 and be completed in six to eight months.
• Bids were advertised initially on March 10, 2021.
• Three bids were received on the due date of April 1, 2021, but were not opened due to one envelope not being clearly marked regarding the contents.
• This was determined to be an ineligible submission and since this project required three bids, the bids were not opened at that time.
• The project was readvertised on April 7, 2012 and bids were received and opened on April 22, 2012.
• Three bids were received as follows:
• AstroTurf Corporation, Dalton, GA, $908,700
• Sports Fields, Inc., Canton, GA $1,283,580
• Baseline Sports Construction, LLC, Knoxville, TN $1,127,000
• AstroTurf was the lowest responsive, responsible bidder.

Vendor Outreach Efforts:

• Staff performed outreach to minority and women-owned businesses through solicitation processes which included posting on the State Interactive Purchasing System and requiring prime contractors to reach out to Minority & Women-Owned Business Enterprise (MWBE) service providers for subcontracted services.
• There was a 4.6% goal set for this project
• AstroTurf Corp is the prime contractor that reached out to MWBE companies during bidding and has indicated Stiles Trucking (WBE) as a subcontractor. This represents 2.6% of the total dollar amount of the contract to be contracted with minority and women owned businesses. Committee(s):
• The Recreation Board is currently not meeting. Pro(s):
• Safer sports field.
• Field drainage improved.
• Stormwater lines relocated from under the field.
• Old stormwater lines replaced. Con(s):
• Construction will temporarily close the field to activities.

Fiscal Impact:

• Funding for this contract is included in the adopted Parks and Recreation section of the 2016 General Obligation (GO) Bond program.

Background:

• In 2017, the City began working with the Burton Street Community Association Leadership Association to implement their neighborhood plan as a mitigation strategy for the I-26 Connector project.
• The Burton Street Neighborhood Plan identified implementation of design guidelines and policies that aim to preserve or enhance neighborhood character in order to minimize the impacts of renewed development interest in the neighborhood.
• As a first step in preserving neighborhood character, the City will work with BSCLA to hire a consultant to complete an architectural survey of the neighborhood that will ultimately inform a pattern book for the neighborhood.
• Though voluntary in terms of compliance, a pattern book is a helpful resource for prospective developers, real estate professionals and community members when building new infill development that is compatible with the neighborhood.
• BSCLA was awarded a Technical Assistance Grant in the amount of $4,000, which is being donated to the City to fund the project.
• Donated funds will be matched by the Planning & Urban Design Department in the amount of $2,000, for a total project budget of $6,000.
• Planning & Urban Design staff does not anticipate the project budget exceeding the allocated amount of $6,000; however, if additional funding is needed, it will be allocated from the Planning & Urban Design Department's budget.

Comprehensive Plan Consistency:

• This project aligns with the Living Asheville Comprehensive Plan's stated goal of elevating the arts and cultural sectors to strengthen and preserve heritage and history with particular attention to the preservation of areas with historic value to communities of color. Pro(s):
• Funding will be available to research and document historic resources in the Burton Street Neighborhood.
• The City is partnering with BSCLA to assist in achieving the goals and strategies outlined in the Burton Street Neighborhood Plan. Con(s):

None Fiscal Impact:

• This donation requires a match of $2,000 to be allocated from the training line item in the Planning & Urban Design Department budget.

Background:

• The main scope of the project is the resurfacing of 16 streets for a total of 4.45 miles.
• Also included will be repairs to the concrete sidewalk and ADA on four streets
• Cedar Street, Kentucky Drive, Ottari Road and St. Davids Court.
• The contract was advertised on March 5, 2021 and bids were opened on April 1, 2021.
• The following bids were received: Tarheel Paving and Asphalt, Inc. of Hendersonville, NC $1,534,663.86 French Broad Paving, Inc. of Marshall, NC $1,660,316.40 JLS Company, LLC of Hendersonville, NC $1,991,269.60 Harrison Construction of Asheville, NC $2,204,005.10 Bryant’s Land and Developments Industries, Inc of Burnsville, NC $2,575,441.10
• The contract is expected to be available on June 1, 2021 and the contractor has until December 15, 2021 to complete the work.

Vendor Outreach Efforts:

• Staff performed outreach to minority- and women-owned businesses through solicitation processes which include posting on the State’s Interactive Purchasing System and requiring prime contractors to reach out to Minority & Women-Owned Business Enterprise (MWBE) service providers for subcontracted services.
• Staff also checked the NC Historically Underutilized Business and NCDOT MWBE databases for potential contractors.
• Only one company from an identified disparity group was found in the ten-county area and staff directly contacted that company.
• The company did not bid as a prime, but is listed as a subcontractor with several of the prime bidders.
• Two MWBEs, both Black-owned, will be operating as subcontractors on the project.
• Tarheel Paving anticipates expending 3.71 percent ($56,915.00) of the total dollar amount of the contract with these companies. Committee(s):
• None Pro(s):
• Provides for the repair and resurfacing of many poorly rated city-maintained roads.
• Will make the sidewalks more ADA-compliant. Con(s):
• Construction will be disruptive to the neighborhoods and to traffic.
• Efforts will be made to notify the public and minimize disruptions.

Fiscal Impact:

• Funding is provided in the Fiscal Year 2021 Streets Program. This funding is part of our annual resurfacing program and is not bond-funded. The total cost of this contract, including contingency, is $1,764,863.44.

Mayor Manheimer said that this public hearing was held on April 27, 2021, and in accordance with recent legislation amending North Carolina G.S. § 166A-19.24(e), regarding public hearings conducted during remote meetings, written comments for this public hearing were accepted for an additional 24 hours. 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 it would not be read.

Finance Director Tony McDowell, along with Budget Manager Taylor Floyd, said that this is the consideration of an ordinance establishing the fees and charges for Fiscal Year (FY) 2021-22. Background:

• Fees and charges comprise 35% of City-wide revenue and 10% of General Fund revenue.
• In an effort to limit the financial impact of the COVID-19 pandemic some fees were waived, late charges were deferred, and no increases were proposed in FY21.
• An attachment was provided of detailed information for proposed fee adjustments submitted during this year’s annual budget process, including impacts on revenues, customers and service provision.
• Recommendations for changes to Water Resources rates and to formally include existing fee discounts offered to nonprofits for special events are included in separate staff reports.
• Adjustments to fees charged for stormwater and sanitation services are not recommended for adoption at this time.
• Instead, staff recommends a midyear review of stormwater and sanitation services during the next fiscal year (FY22) that includes more detailed information about service needs and financial context.
• Changes recommended for adoption include adjustments to fees and charges for
• transit advertising,
• design and subdivision review in special review areas,
• sidewalk fee-in-lieu payments,
• WNC Nature Center admissions,
• fire safety inspections, and
• monthly on-street, garage, and off-street lot parking.
• All recommended fee adjustments would become effective July 1, 2021, with the exception of changes to parking garage hourly rates.
• Parking garage rate changes would become effective with the completion of the replacement of garage gating equipment which is anticipated to be June 1, 2021. Committee(s):
• Finance & Human Resources Committee
• April 21, 2021
• unanimously recommended to move forward to full Council with the exception of a proposed $1.00 charge for the first hour of parking in garages. The new proposal recommends continuing the first hour of garage parking free of charge. This change will result in a $170,000 decrease in anticipated additional revenue.

Pros:

• Provides an opportunity to recover the cost of services from those that directly utilize or benefit from the service where appropriate, reducing the financial burden of City services on taxpayers.
• Provides additional revenue to help balance the FY 2021-22 budget.
• Allows staff to begin communicating fee changes to the public, customers, and stakeholders so they are aware of changes that will be implemented.

Con:

• A minimal increase in the cost to utilize certain city services.

Fiscal Impact:

• Additional for each proposal are shown in an Attachment A provided to City Council.

Suggested Motion:

• Motion to approve an ordinance amending the fees and charges manual for Fiscal Year 2021-22. Budget Manager Floyd pointed out an error in the fee structure for parking garage, lot and meter fees. He said staff will review (not remove) existing discounted monthly garage parking rates for Vanderbilt and Battery Park residents at the Harrah’s Center garage and monthly lots. In response to to Councilwoman Roney, Assistant Transportation Director Jessica Morriss said that we have not only raised the fee-in-lieu-of for sidewalks to a per square footage charge to cover the actual cost of the sidewalk installation, but have added some additional criteria to make it more difficult for a developer to opt out of building sidewalks or building Americans with Disabilities Act curb cut ramps. When Councilwoman Turner asked if we could raise the fees in the major works category since larger hotels require more staff time to review, City Attorney Branham said that this will require more research to make sure that we are fully prepared and authorized to make such an additional level of delineation. Generally speaking we are allowed to charge these types of fees and he believes the level of the fee has to be based on the project impacts on the surrounding area, as well as being reasonably proportional. If we have a certain project that will have a greater degree of impact, including on the existing infrastructure, etc., then the possibility to charge a larger fee is possible. He said we would need to review that on multiple levels. In response to Vice-Mayor Smith, Transportation Director Ken Putnam said that we are only eliminating coins at the parking garages and that currency will still be accepted by the machines. Mayor Manheimer announced that there were no advanced live call-ins for this item. Mayor Manheimer said that members of Council have previously received a copy of the ordinance and it would not be read.

Finance Director Tony McDowell, along with Water Resources Director David Melton, said that this is the consideration of an ordinance establishing the Fiscal Year 2021-22 Water Resources fees and charges. Background:

• Fees and charges fully fund the Water Resources Department functions.
• The Department does not receive any funding from the General Fund.
• In 2018 the North Carolina Supreme Court issued an opinion in the case of Quality Built Homes Inc. v. Town of Carthage.
• In this opinion the Court determined that cities were not permitted to charge water and sewer “impact fees.”
• Thereafter, law firms began filing lawsuits against cities throughout the State who had charged these fees in recent years.
• Asheville was also named in two class action lawsuits based upon its Capital Improvement Program (CIP) Fee for water service.
• These lawsuits were settled without any admission of liability by the City.
• The settlement, however, included an agreement to discontinue the CIP fee at the beginning of FY 2020-21.
• The financial impact of this agreement was approximately $2,100,000 for settlements, and approximately $7,500,000 in annual revenue from the CIP fee.
• Water Resources has averaged reinvesting approximately $11,000,000 annually over the past three years in capital improvement projects.
• Loss of the CIP fee revenue has a direct impact on the Department's ability to continue reinvesting in the sustainability of the water system.
• Loss of the CIP fee also impacts the revenue coverage ratio that debt rating agencies, such as Standard & Poor’s and Moody’s, use to evaluate the credit worthiness of the water system.
• The loss of annual revenue and the impact on the ability to reinvest in the water system necessitated a rebuild of the current Water Resources rate model.
• Raftelis Financial Consultants, Inc. was secured to perform the rebuild of the rate model, which was completed earlier this year.
• An attachment was provided of the overview of the rate model realignment proposal for the various customer classes.
• The proposed rates for FY 2021-22 are slightly higher than current charges, but are less than customers were charged in FY 2019-20 prior to the lawsuit settlements.
• Staff will work with the consultants from Raftelis to refine rate realignment recommendations for Council consideration in future years, which will allow the system to meet its financial requirements while continuing to evaluate the differential between the residential and commercial customer classes. Committee(s):
• Finance & Human Resources Committee
• April 21, 2021
• unanimously recommended to move forward to full Council. Pro(s):
• Provides an opportunity to recover the cost of services from those who directly utilize or benefit from the service.
• Provides the revenue to continue much needed reinvestment into the water system to maintain sustainability.
• Provides required debt coverage ratios and credit ratings.
• Allows staff to begin communicating fee changes to customers and stakeholders so they are aware of changes prior to the effective date. Con(s):
• A small increase to current annual costs to customers.
• Additional customer rate increases will likely be required in future years.

Fiscal Impact:

• The bi-monthly impact on the average residential household is shown below. As noted above, detail for all customer classes is included as an attachment to this staff report. 2020 including CIP charge 2021 without CIP charge 2022 proposed fees & charges $65.38 $56.86 $63.29 3.2% Decrease from 2020 to 2022 Mayor Manheimer announced that there were no advanced live call-ins for this item. Mayor Manheimer said that members of Council have previously received a copy of the ordinance and it would not be read.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Affordable Housing Advisory Committee. On March 23, 2021, by Resolution No. 21-58, City Council revised the membership of the Affordable Housing Advisory Committee to include a Housing Authority staff member and a person with general housing experience. In addition, Parker Smith (general housing experience)has resigned, thus leaving an unexpired term until September 1, 2023. The following individuals applied for the vacancies: Rodrigo Afanador, Damita Jo Wilder, Eric Howell, Michael Waddle, Joshua Katz, ZaKiya Bell-Rogers, Henry Sannyasa, Cyd Jaggers, Chris Woodward, Jessica Montanez, Shannon M. Watkins, Chris Day, Jessie Figueroa, Kyle Gilliland, Brandy Woodward, Jeffrey Vanderlip and Katleen Hasegawa. The Boards & Commissions Committee recommended appointing Brandy Woodward (HACA staff member), Chris Day (general housing experience) and ZaKiya Bell-Rogers (general housing experience).

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Civil Service Board. The terms of Carol Goins and Carter Webb as members of the Civil Service Board expire on May 11, 2021. No one applied for the vacancies. The Boards & Commissions Committee recommended reappointing Carol Goins and Carter Webb.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that on February 23, 2021, City Council adopted an ordinance regulating hotel development standards and part of that ordinance was the formation of a new Design Review Committee to review applicable hotel applications in the Central Business District or the River District. Four members shall be current members of the Downtown Commission, four members shall be current members of the Asheville Area Riverfront Development Commission, and one member will be appointed by the other eight. The following individuals applied for the vacancies by the representations of the Downtown Commission or the Riverfront Redevelopment Commission. From the Downtown Commission: Guillermo Rodriguez, Steven Lee Johnson, Kimberly Hunter, Robin Raines and Bryan Moffitt. From the Riverfront Redevelopment Commission: Jane Mathews, Ben Williamson and Jeremy Goldstein. On April 27, 2021, the Boards & Commissions Committee recommended appointing Robin Raines, Steven Lee Johnson, Kimberly Hunter and Guillermo Rodriguez from the Downtown Commission; and Jane Mathews, Ben Williamson and Jeremy Goldstein from the Riverfront Redevelopment Commission, with the last seat to be filled by a member of the Riverfront Redevelopment Commission at a later date. Councilwoman Turner said that Guillermo Rodriguez currently serves on the Planning & Zoning Commission and the Downtown Commission and since those are two large boards, she spoke with Mr. Rodriguez who said that he would reapply for the Design Review Committee next year.

Vice-Mayor Smith, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing members to the Human Relations Commission. The terms of Tanya Rodriguez, Anne Greene, Veronica Coit, DeLores Venable and Raynette Waters expire on June 1, 2021. The following individuals applied for the vacancies: Bernie Lee Miller, Alexandra DISclarfani, Brittni Worley, Ricky McGrath, Emma Nichole Worthy, Tim Collins and Amanda Benson-Bremseth. The Boards & Commissions Committee recommended reappointing Tanya Rodriguez, Veronica Coit and DeLores Venable; appointing Emma Worthy; and continuing to advertise for the other vacant seat.