City Council regular meeting — October 22, 2024

Background:

• The Sanitation Division of Public Works manages two contracts as part of the City’s Litter & Cleanliness Program.
• Cleanliness issues such as debris and litter caused by flooding related to Tropical Storm Helene are being addressed through different contracts and are not being addressed by the existing Litter & Cleanliness Program.
• The Sanitation Division of Public Works continues to receive requests to address non-storm related cleanliness issues, particularly for heavily littered hot-spot areas, and expect that to continue throughout the coming year.
• As City roads are cleared of storm-related debris in the coming months, our City contractor will resume regular roadside litter collection of non-storm related litter that accumulates.
• In 2023, City Council adopted resolutions authorizing the City Manager to enter into 2 contracts for the Litter and Cleanliness Program for a total combined project amount not to exceed $500,000.
• The Litter and Cleanliness Program contracts are existing contracts with WNC Landscaping for roadside and hotspot litter collection; and Steri-Clean of NC for biohazardous waste collection.
• The original $500,000 for the program was provided via ARPA grant funding.
• The $500,000 will be expended before the end of FY25.
• The Sanitation Division received $118,640 rolled from FY24 general fund Sanitation accounts in order to continue the Litter & Cleanliness services throughout FY25.
• $118,640 will be added to the Roadside Litter & Hot Spot Collection contract, bringing the contract total to $463,640, and the overall project total to $618,640.
• The biohazardous waste collection contract has approximately 40% of its original funding remaining and does not need additional funding at this time.
• As with the original project resolution, the new resolution will authorize the City Manager to execute any amendments and change orders to adjust the total amount of each individual contract, as well as change orders for individual contract renewals, within the new total project not-to-exceed amount of $618,640.
• The Public Works Sanitation Division will work with Finance and City Management to consider and develop proposals for litter & cleanliness service continuation in FY26 and beyond.

Vendor Outreach Efforts:

• Original funding for this project was provided through a federal grant (ARPA), and followed federal outreach guidelines for the contracting process. Committee(s):
• N/A Pro(s):
• Allows for continuation of litter collection and hot spot cleaning services throughout the City of Asheville Con(s):
• Requires utilizing general fund dollars to supplement the original ARPA-funded program

Fiscal Impact:

• $118,640 from PW Sanitation budget, which were rolled from Sanitation’s FY24 general fund budget and earmarked to support the Litter & Cleanliness Program

Background:

• The HCCA chilled water pump is around 50 years old and original to the building. The pump has required frequent repairs in recent years.
• Replacement of the chilled water pump is included in the HVAC upgrades project which is partially funded from a grant from the Buncombe County Tourism Development Authority’s (BCTDA) Legacy Investment from Tourism grant program.
• This chilled water pump is a ‘single point of failure’ concern as when the pump goes down, air conditioning throughout the building is not possible. Parts for repair of this piece of equipment are very hard to find, and tend to be custom replacements
• Replacement will allow for more energy efficient operation of the chiller and HVAC system as a whole. .

Vendor Outreach Efforts:

• Staff performed outreach to minority and women owned businesses though solicitation processes using the State’s Interactive Purchasing System.
• Five companies participated in site visits to review the project.
• Three companies submitted a bid for the project with Bolton being the lowest responsible bidder in the amount of $105, 405.00.
• Three companies submitted a bid for the project with Bolton being the lowest responsible bidder in the amount of $105,405.00.
• MB Haynes: Asheville, NC, $ 105,395.00, Non responsive due to incomplete ABI Documentation
• Bolton Construction and Service of WNC: Asheville, NC: $105,405.00
• MSS Solutions: Charlotte, NC: $105,655.00
• No responding/bidding companies were MWBE companies Committee(s):
• None Pro(s):
• Greater efficiencies within the HVAC system operations Con(s):
• None.

Fiscal Impact:

• Funding for this work is available in the HCCA Capital Projects Fund.
• 50% of the funding is through a BCTDA grant.

Background:

• At the end of September 2024, the City of Asheville experienced large-scale devastation and destruction as a result of Tropical Storm Helene that has affected residents, businesses and city-owned property and infrastructure.
• The City has and will continue to incur expenses related to Tropical Storm Helene Disaster Recovery and Response.
• On September 28th, the Federal Emergency Management Agency (FEMA) issued a major disaster declaration for the State of North Carolina.
• Through its Public Assistance Program (PA), FEMA provides Federal grant assistance for debris removal, emergency protective measures, and the restoration of disaster-damaged, publicly owned facilities.
• Although FEMA typically covers 75% of the eligible costs, the federal government has increased the cost share in North Carolina for the Helene disaster to 100% for the first 180 days of the incident period.
• To date the City has utilized existing budget allocations to fund contracts, purchase orders, and expenses related to Tropical Storm Helene.
• In order to meet State Statute requirements related to pre-audits and budget authorizations, the UNC School of Government recommends that a City Council adopt a budget amendment for disaster expenses as quickly as possible after expenses start being incurred.
• This first budget amendment will cover initial contracts, purchase orders, and expenses.
• Additional budget amendments will be brought forward to City Council in upcoming meetings. Pro(s):
• Allows the City to budget for initial expenses related to Tropical Storm Helene response and recovery and be in compliance with NC General Statutes related to pre-audits. Con(s):
• None.

Fiscal Impact:

• This will be the first budget amendment to provide budget authorization for Helene expenses; additional budget amendments will be required at future Council meetings. The revenue source for the budget amendments will be Federal Emergency Management Agency (FEMA) reimbursements. The budget amendment in the Special Revenue Fund is for General Fund expenses.

MANAGER TO ENTER INTO A CONTRACT WITH VODA.ai FOR THE LEAD SERVICE LINE INVENTORY Background:

• Water Resources is required to build an inventory per US EPA & NC Department of Environment Quality (NCDEQ) regulations.
• The US EPA and NCDEQ have approved using predictive modeling to help determine service line material.
• Predictive Modeling uses machine learning and artificial intelligence to review water utilities records and public information to determine locations that have a high potential to have lead pipe or galvanized iron pipe requiring replacement or help water utilities prove that they have no lead service lines.
• Predictive Modeling also provides a more precise method to save time and money to develop an accurate inventory.
• Asheville Water Resources Department requests to contract with VODA.ai to use predictive modeling to help reduce the cost of meeting the service line inventory requirements.
• The VODA.ai Contract will not exceed $170,000 for three years.

Vendor Outreach Efforts:

• The City of Asheville is a member of the Sourcewell CO OP.
• The Sourcewell CO OP solicits through a wide range of options via print and online.
• The Sourcewell CO OP provides local governments discount rates for all types of services.
• The vendor was selected through the Sourcewell CO OP to ensure the lowest price possible for the City Water Resources Department. Committee(s):
• NA Pro(s):
• This project is aligned with the City and the Water Resources Department goal of continued investment and improvement of the City’s water system, in order to provide safe and reliable service.
• Predictive Modeling will provide a more methodical approach to the service line inventory project, greatly reduce the amount of invasive & costly methods of inspection and allow Water Resources to build an accurate inventory. Con(s):
• There are no cons with entering into this contract.

Fiscal Impact:

• Funding for this contract was budgeted and is available in the Water Resources Capital Projects Fund.

Background:

• The New Haw Creek Sidewalk Project is partially funded by the 2016 Transportation Bond.
• The City of Asheville entered into a design contract with Mattern & Craig, Inc. in November 2017 for the engineering and design for sidewalks along New Haw Creek Rd.
• Final permitting, easement acquisition, utility coordination and North Carolina Department of Transportation approval have been completed.
• This project will install approximately 1 mile of 6’ wide sidewalk along New Haw Creek Road from Beverly Road to Bell Road, where no safe pedestrian facilities currently exist.
• The scope of work also includes over 2,600 linear feet of stormwater pipe, 10,000 square feet of retaining wall, water line relocation, and complete roadway repaving.
• Due to the lane closure restrictions, and the complications of constructing on an active roadway, construction is expected to take one year, beginning in fall 2024 and completed by the fall of 2025.

Vendor Outreach Efforts:

• Due to the federal funding involved in this project, the Federal Disadvantaged Business Enterprises program is being applied. The federally established goal for this project is 7% participation.
• 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.
• The low bidder also made a good faith effort and performed outreach through advertisement and direct outreach, but resulted in no DBE participation.
• On August 12, 2024 construction bids were advertised and only received two bids.
• The project was readvertised on September 19, 2024 and received three bids.
• The three bids received were from: Waynesville, NC based Appalachian Sitework Inc. for $2,940,901; Cliffside, NC based Site Development Corp. for $3,284,727.50; and Asheville, NC based NHC Constructors, Inc. for $4,618,817
• Appalachian Sitework, Inc. was the lowest, responsive, responsible bidder. Committee(s):
• none Pro(s):
• Connection throughout the area, including a school zone, with safe pedestrian facilities. Con(s):
• Construction impacts to traffic while under construction.

Fiscal Impact:

• Funding for this contract was previously budgeted and is available in the General Capital Projects

Background:

• Debris management is a critical component of disaster recovery. Tropical Storm Helene generated large volumes of debris including fallen trees, construction and demolition debris, and damaged appliances.
• An initial assessment suggests there are 3 million cubic yards of storm debris within the City limits. That represents roughly 140 football fields stacked 10 feet high.
• Removing these materials quickly minimizes health hazards and disruptions to the community’s recovery efforts.
• Because community safety will remain our top priority, a contractor experienced in natural disaster debris removal has been secured.
• In order to dispose of storm debris quickly and safely, it is critical to establish safe sites where the debris can be temporarily taken and managed before it is disposed of at a permanent site.
• Enka Samet, LLC has offered to lease approximately 24 +/- acres of property located at 264 and 274 Enka Heritage Parkway for a mixed debris processing site at a monthly lease rate of $3,500 per acre, which equates to $84,000 per month for a 6-month period for 24 acres +/-, with the option to extend on a month-by-month basis as needed.
• This price point is consistent with area fair market value and the City has confirmed that the expense is eligible for FEMA reimbursement.
• The site is suitable for this purpose, and will meet all permitting requirements per North Carolina Department of Environmental Quality prior to activation.
• Surrounding residents and businesses will be contacted with door-to-door outreach about all new temporary debris sites prior to them becoming operational. Committee(s):
• None Pro(s):
• Provides much-needed land area for debris processing in response to Tropical Storm Helene. Con(s):
• None

Fiscal Impact:

• The monthly cost of the lease is $3,500 per acre, totaling $84,000 per month for 24 acres. For the proposed lease term, the total cost is approximately $504,000 for 6 months. Expenses associated with debris removal and processing are FEMA reimbursable.

Action Summary: Consideration of adoption of a resolution authorizing the allocation of $1 million in Affordable Housing Capital Improvement Plan funds to support Helene Recovery in the form of Home Repair assistance, Rental Assistance, and the respective associated administrative expenses. Background:

• On September 24, 2024, the City authorized a new project configuration for affordable housing at 148 River Ford Parkway (the former Ramada site). As a result, $1 million in City capital funding is no longer needed for this project.
• Tropical Storm Helene caused major damage to residences and businesses. Until federal resources have been allocated to assist in the long-term recovery, the City seeks to use available funding to support immediate recovery efforts.
• The source of these funds is Affordable Housing Capital Improvement Plan (CIP) dollars that came from the City’s General Fund, which has the most flexibility compared to bond funding or federal funding.
• The proposed uses include Home Repair, Rental Assistance, and the respective associated administrative costs for these activities.
• The City will identify experienced non-profit partner organizations to manage the distribution of these funds to the community. Committee(s):
• The Housing and Community Development Committee (HCD) did not meet in October 2024. Pro(s)
• Existing Affordable Housing CIP funds will be made available to support Home Repair in areas that have been impacted by Tropical Storm Helene.
• Existing Affordable Housing CIP funds will be made available to support rental assistance to city residents who have been impacted by Tropical Storm Helene and need additional funds to pay their rent. Residents will be at or below 60% AMI. Con(s)
• These are one time funds.
• Given the magnitude of damage incurred by Helene, $1 million represents a small portion of resources needed to help the community recover.

Fiscal Impact:

• Allocate $1 million in available Affordable Housing CIP funding to home repair, rental assistance, and the associated administrative costs to support Helene Recovery, and prevent vulnerable residents from becoming homeless or having to leave the community permanently.

Action Summary: Consideration of adoption of a resolution authorizing an amendment to the 2018-2019 Annual Action Plan and the 2019-2020 Annual Action Plan to allocate uncommitted Community Development Block Grant (CDBG) funds to support Helene Recovery in the form of Business Restabilization grants; submit to the U.S. Department of Housing and Urban Development (HUD) and if approved by HUD, authorizing the City Manager to approve the Program Structure and Allocations to Partner Organizations and to execute all documents necessary to this effect; and approving a budget ordinance amendment in the CDBG Fund in the amount of $929,070. Background:

• The City of Asheville is an entitlement community and receives formulaic funding through the Community Development Block Grant (CDBG) program from the U.S. Department of Housing and Urban Development (HUD).
• City staff have analyzed account balances for the past 7 fiscal years and determined that $929,070 of our existing, uncommitted funding can be made available for immediate use to support Helene Recovery Efforts.
• Since May 2024, Community Development staff have been analyzing CDBG budgets and spend-down patterns to address timely expenditure of CDBG funds.
• This analysis concluded that, year-over-year, the amount of program income forecasted during annual action plan development is much less than the actual receipts incurred during the plan year, resulting in unspent balances of CDBG funds.
• In 2020, the City received over $1.6 million in CDBG proceeds due to the sale of property at 172 S. Charlotte Street. The City purchased real estate with a sizable portion of these funds, yet additional funding came to the City in the form of CDBG-CV (COVID relief funding) that took priority for expenditure, resulting in unspent balances of CDBG funds.
• Staff has now reconciled the CDBG account and identified funding available to allocate.
• The proposed use of these funds is Business Restabilization Grants, a HUD Eligible “Special Economic Development Activity” that meets the HUD National Objective of “Urgent Need.” These grants will provide assistance to commercial or industrial businesses to replace lost physical capital such as buildings, structures, furniture, fixtures, and equipment.
• The City will identify non-profit partner organizations to manage the distribution of these funds to the community.
• In order to distribute these funds into the community, City Council is being asked to authorize amendments to the 2018-2019 Annual Action Plan and the 2019-2020 Annual Action Plan to provide a concise summary of the actions, activities, and resources.
• The amendments to Annual Action Plans will also identify HUD National Objectives that will be met through these activities, including meeting an urgent need. Committee(s):
• The Housing and Community Development Committee (HCD) did not meet in October 2024. Pro(s)
• Existing CDBG grant funds will be made available to support Business Stabilization in areas that have been impacted by Tropical Storm Helene. Con(s)
• These are one time funds from prior year CIP allocations and program income.
• Given the magnitude of damage incurred by Helene, $929,070 represents a small portion of resources needed to help the community recover.

Fiscal Impact:

• $929,070 in existing CDBG entitlement funds will be allocated to support Helene Recovery.

Action Summary: Consideration of adoption of a resolution to rescind the $1,035,000 Housing Trust Fund allocation and the $1,465,000 Affordable Housing Bond grant awarded to the Housing Authority of the City of Asheville for a tax credit project at Deaverview that is no longer being developed; and reallocate the $1,035,000 to the Housing Trust Fund balance and $1,465,000 in Bond funds to Hurricane Helene related Home Repair Grants to low and moderate-income households; and authorize City Manager to approve the allocation of Bond funds for Home Repair Grants to partner organizations and to execute any and all documents necessary to give effect. Background:

• The Reimagining Deaverview project was envisioned by the Housing Authority of the City of Asheville as an infill multifamily development. The project, which included 82 apartments, was approved for a Low-Income Housing Tax Credit (LIHTC).
• On May 10, 2022, the City Council awarded a $1,465,000 grant from the Affordable Housing Bond funds to support the project (Resolution 22-93).
• On April 25, 2023, City Council approved an additional $1,035,000 from the Housing Trust Fund to fill an additional funding gap for a total of $2,500,000 (Resolution 23-92).
• Due to further funding gaps, the Housing Authority has returned the housing tax credits previously approved for the project, and the development will not be built as planned.
• City staff have been in communication with Housing Authority leadership regarding potential plans to pursue a comprehensive approach to redeveloping City and Housing Authority properties in the Deaverview area. These discussions remain preliminary in nature.
• Staff recommends using the $1,465,000 in previously approved Reimagining Deaverview funding that came directly from the Affordable Housing Bond to fund Home Repair Assistance, prioritizing Hurricane Helene-related damage to homes. These funds will follow statutory requirements for affordable housing bonds.
• The City will identify non-profit partner organizations to manage the distribution of these funds to the community.
• The $1,035,000 returned to the Housing Trust Fund will be available for all eligible uses under the Housing Trust Fund Policy (construction, down payment assistance, rehabilitation, etc.)
• Applications for the next round of Housing Trust Fund loans will open in December 2024 with awards being made in spring 2025. Committee(s):
• The Housing and Community Development Committee did not meet in October 2024. Pro(s):
• Bond funds will be immediately redeployed for home repair for low- to moderate-income homeowners. The remaining funds will revert back to the Housing Trust Fund balance for future use. Con(s):
• These are one time funds.
• Given the magnitude of damage incurred by Helene, the funds previously set aside for the Reimagining Deaveview Project represent a small portion of resources needed to help the community recover.

Fiscal Impact:

• No payments have been made to the Housing Authority of the City of Asheville.
• The $1,465,000 in Affordable Housing Bond funding will be available for grants for capital expenses related to home/housing repair.
• The Housing Trust Fund balance will increase by $1,035,000 for future reallocation. Councilwoman Roney said that in the absence of a community roundtable where we would have seated people with lived experience in addition to our non-profit partners, she knew this Council vote was the last opportunity for accountability and that as an organization we care about equity. But as this is the last time last touch on it, she understood that some partners had already been identified and so she was unclear as to why we hadn't named them. Ms. Reid responded that she had hoped to establish the funding programs and then work with the partners because we had to get to this point to basically state that we are going to use these funds for these purposes. We have been in conversation with certain non-profits because she wanted to be able to deliver. Councilwoman Roney felt that if we had a roundtable then hopefully we could put down some of our personal problems and have human problems together. If it just goes to organizations that may have contentious conversations, it’s another harm potentially happening. So, her hope is that we can create more layers of accountability and transparency. She is going to support this today because we have to get this money into the community and it’s urgent, but there is also urgency in some of the harm caused by our organization. Three individuals spoke about not using 65 Ford Street as a temporary storm debris management site and not to use grinding the debris in residential areas because it will adversely affect the health and safety of the people in the neighborhood; and encouraged Council to think of some non-monetary options. Mayor Manheimer said that members of Council have been previously furnished with copies of the resolutions and ordinance and they would not be read.