City Council regular meeting — February 11, 2025

11, 2025. This motion was seconded by Councilwoman Tuner and carried on a 4-3 vote, with Vice-Mayor Mosley, Councilwoman Roney and Councilwoman Smith voting “no.”

the citizen-led zoning text amendment regarding cottage development standards passed on a 4-3 vote, with Vice-Mayor Mosley, Councilwoman Roney and Councilwoman Smith voting “no.”

11, 2025. This motion was seconded by Councilwoman Tuner and carried on a 4-3 vote, with Vice-Mayor Mosley, Councilwoman Roney and Councilwoman Smith voting “no.” In response to Councilwoman Roney, City Attorney Branham said that on March 11, the two citizen-led zoning text amendments will be re-considered and Council can choose to re-open the public hearing; however, there is no legal requirement to do so.

the citizen-led zoning text amendment regarding cottage development standards passed on a 4-3 vote, with Vice-Mayor Mosley, Councilwoman Roney and Councilwoman Smith voting “no.”

Background:

• A large-scale water system outage occurred at the end of December 2022, beginning of January 2023 that impacted Asheville’s Water Resources service area, and, as a result of the water outage, Asheville City Council voted to form a Water Outage Independent Review Committee (IRC) whose task was to analyze the event and make recommendations for water system improvements, which would reduce the risk of future large-scale outages.
• One recommendation from the IRC was to implement an independent valve assessment of all large transmission main valves within the water system.
• Valve condition assessments within the system have been conducted and will continue to be conducted by dedicated Water Resources staff. This project will supplement internal efforts and be utilized to fully satisfy the IRC recommendation.
• This project addresses existing system water valves ranging from 2 to 36 inches and located throughout the City of Asheville’s Water System.
• Key objectives entail a thorough examination, documentation, and enhancement of the functionality of the elected water valves.
• The work includes, but is not limited to, collecting GPS attribute data, coordinates & pictures for each valve, adjusting the height and aligning valve boxes as needed, exercising and recording the number of turns for each valve, and cleaning valve boxes as necessary.
• There is no definitive project scope of services for the service provider to complete as they will be utilized to support and supplement the existing Water Department valve crew by completing identified tasks as directed and needed.

Vendor Outreach Efforts:

• A qualifications based selection process began on August 13, 2024 by issuance of a request for proposals with the deadline for submission being September 9, 2024.
• Outreach and engagement followed the City’s business inclusion processes.
• Two proposals were received from:
• Hydromax, LLC
• Chandler,IN
• Non MWBE
• Wachs Water Services, Inc.
• Washington D.C.
• Non MWBE
• ABI office audited all proposal documents and noted required compliance.
• A team of pertinent Water Resources Department staff reviewed and scored the proposals based on specified criteria.
• Due to the type of the proposed contract, bids were not required for the proposals but submissions did include proposed rate and fee schedules for various tasks, which were reviewed and scored as part of the submittal criteria.
• Hydromax USA, Inc. received the highest averaged score from the review team and thus was selected as the most qualified service provider.
• No further outreach was undertaken. Committee(s):
• None. 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 through Capital Improvement Projects, in order to provide safe and reliable service.
• Awarding the contract would allow the Water Resources Department to complete the project and satisfy the recommendation from the WOIRC in a timely manner. Con(s):
• There are no cons associated with entering into this contract.

Fiscal Impact:

• $2,500,000 is the maximum value of the proposed contract as the selected service provider can be assigned tasks up to but not exceeding that limit.
• The required funds are available within the Water Resources Department Capital Improvement Project budget.

Background:

• A large-scale water system outage occurred at the end of December 2022, beginning of January 2023 that impacted Asheville’s Water Resources service area, and, as a result of the water outage, Asheville City Council voted to form a Water Outage Independent Review Committee (IRC) whose task was to analyze the event and make recommendations for water system improvements, which would reduce the risk of future large-scale outages.
• One recommendation from the IRC was to implement an independent valve assessment of all large transmission main valves within the water system.
• Valve condition assessments within the system have been conducted and will continue to be conducted by dedicated Water Resources staff. This project will supplement internal efforts and be utilized to fully satisfy the IRC recommendation.
• This project addresses existing system water valves ranging from 2 to 36 inches and located throughout the City of Asheville’s Water System.
• Key objectives entail a thorough examination, documentation, and enhancement of the functionality of the elected water valves.
• The work includes, but is not limited to, collecting GPS attribute data, coordinates & pictures for each valve, adjusting the height and aligning valve boxes as needed, exercising and recording the number of turns for each valve, and cleaning valve boxes as necessary.
• There is no definitive project scope of services for the service provider to complete as they will be utilized to support and supplement the existing Water Department valve crew by completing identified tasks as directed and needed.

Vendor Outreach Efforts:

• A qualifications based selection process began on August 13, 2024 by issuance of a request for proposals with the deadline for submission being September 9, 2024.
• Outreach and engagement followed the City’s business inclusion processes.
• Two proposals were received from:
• Hydromax, LLC
• Chandler,IN
• Non MWBE
• Wachs Water Services, Inc.
• Washington D.C.
• Non MWBE
• ABI office audited all proposal documents and noted required compliance.
• A team of pertinent Water Resources Department staff reviewed and scored the proposals based on specified criteria.
• Due to the type of the proposed contract, bids were not required for the proposals but submissions did include proposed rate and fee schedules for various tasks, which were reviewed and scored as part of the submittal criteria.
• Hydromax USA, Inc. received the highest averaged score from the review team and thus was selected as the most qualified service provider.
• No further outreach was undertaken. Committee(s):
• None. 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 through Capital Improvement Projects, in order to provide safe and reliable service.
• Awarding the contract would allow the Water Resources Department to complete the project and satisfy the recommendation from the WOIRC in a timely manner. Con(s):
• There are no cons associated with entering into this contract.

Fiscal Impact:

• $2,500,000 is the maximum value of the proposed contract as the selected service provider can be assigned tasks up to but not exceeding that limit.
• The required funds are available within the Water Resources Department Capital Improvement Project budget.

Background:

• The Fleet Management Division of the Public Works Department maintains over 1,000 City owned vehicles and pieces of equipment.
• Contracted work is used to supplement existing staff resources at times of high demand or to provide services where the Fleet Division does not have suitable facilities or resources
• Council approved Resolution 24-94 on May 14th, 2024 to enter into a contract based on Request for Proposals (298-RFP-HDRepair-FY24) advertised in February 2024.
• Atlantic Emergency Solutions Inc was awarded a contract effective 7/1/2024.
• The original Contract amount for the initial (1) one year term to be $50,000 with a total not-to -exceed contract amount of $150,000 for all 3 years (if both optional renewals are exercised).
• Since Contract 92500088 went into effect on July 1st, 2024, Fleet has expended approximately $48,000.00 of the predicted $50,000.00 needed for the initial one year term.
• A contract amendment is needed in the amount of $50,000 per year, bringing the total not-to-exceed amount to $100,000 per year, for a total of $300,000 for all 3 years if both optional renewals are exercised.
• Council approved Resolution 24-97 on May 14th, 2024 to enter into a contract based on Request for Proposals (298-RFP-HDRepair-FY24) advertised in February 2024.
• Cummins Inc DBA Cummins Sales & Service was awarded a contract effective 7/1/2024.
• The original Contract amount for the initial (1) one year term to be $60,000 with a total not-to -exceed contract amount of $180,000 for all 3 years (if both optional renewals are exercised).
• Since Contract 92500090 went into effect on July 1st, 2024, Fleet has expended approximately $43,000.00 of the predicted $60,000.00 needed for the initial one year term.
• A contract amendment is needed in the amount of $60,000 per year, bringing the total not-to-exceed amount to $120,000 per year, for a total of $360,000 for all 3 years if both optional renewals are exercised.
• The need for Heavy Truck Repair services has exceeded Fleet expectations.
• Tropical Storm Helene put additional stresses on much of the City’s Trucks and Equipment causing higher needs for Maintenance and Repair than anticipated.

Vendor Outreach Efforts:

• Fleet staff worked alongside ABI Office throughout the Request for Proposals (RFP) and Selection process to ensure opportunities were extended to any and all Vendors.
• The RFP was advertised according to City’s ABI and Purchasing Policies and Procedures.
• Staff performed outreach to minority and women owned businesses through solicitation processes which include posting on the State’s Electronic Vendor Portal (eVP).
• The Asheville Business Inclusion Office’s list of City Vendors for Outreach was consulted for any known relevant vendors before the RFP was advertised.
• No Minority and women owned Business Enterprise (MWBE) vendors were identified during this process. Committee(s):
• None Pro(s):
• Allows third party service work as a supplement to in house staff.
• Allows for a quicker and more efficient process in the repair of downed vehicles.
• Returns City vehicles to service in a timely manner.
• Provides flexibility in service delivery without significant capital investment in equipment or facilities that aren’t used on a daily basis.
• Avoids the cost of transporting inoperable vehicles between vendors to obtain multiple quotes.
• Maintains a healthy working relationship with the Vendor by ensuring timely payments. Con(s):
• None

Fiscal Impact:

• Funding for this contract is available in the Fleet Division’s operating budget.

Background:

• The Street Cut Program is an enterprise fund that: (a) repairs streets when cut by partner organizations for utility installations and repairs and (b) issues permits for disturbances to City right-of-way for non-partner entities.
• The Street Cut Fund has several pieces of equipment in need of replacement, including an asphalt patch truck, a crew cab pickup and excavator.
• The City utilizes debt proceeds in the form of a short-term installment loan to fund the replacement of Street Cut Fund equipment and then charges the partner organizations for the debt service on the loan as part of their quarterly billings.
• Funding for the replacement of this equipment was not included in the annual adopted budget ordinance so a budget amendment is required. Committee(s):
• None

Pros:

• Replacing equipment that has reached its useful service life will allow for less down time thus a faster response and repair of streets.

Cons:

• n/a

Fiscal Impact:

• As noted above, the City will fund these equipment purchases through its planned annual issuance of a short-term installment loan and debt service on the purchases will be paid for through billings to the partner organizations.

Background:

• Code Purple is a longstanding community initiative begun by shelter providers to provide additional capacity with fewer requirements during extreme weather conditions to ensure safety and survival for people experiencing homelessness.
• In FY 2024-2025, the City of Asheville and Buncombe County have each budgeted $50,000 to support Code Purple operations. Buncombe County has requested that the City administer their matching budgeted funds for Code Purple and has initiated an interlocal agreement to that effect. Buncombe County funds have already been budgeted for this purpose.
• The Asheville-Buncombe Continuum of Care has led Code Purple planning efforts and made recommendations about best use of City and County budgeted funds for Code Purple, and established an operational plan with Asheville Buncombe Community Christian Ministry (ABCCM) serving as the primary Code Purple shelter provider.
• At their September 12, 2024 meeting, the CoC Board approved funding as requested by ABCCM, composed of budgeted City and County general funds and City American Rescue Plan Act (ARPA) funds.
• Code Purple shelter is typically available beginning October 15.
• ABCCM’s planned location for men was destroyed by Tropical Storm Helene and an alternate location on 20th Street with comparable capacity was identified for operations that began in November 2024.
• Due to Tropical Storm Helene, Buncombe County was delayed until January 13, 2025 in providing the interlocal agreement reflecting this arrangement.
• Code Purple shelter will be available through April 30, 2025 when the temperature is 32 or below, or 33-40 with precipitation. Code Purple events will be called by the Code Purple Communications Team in accordance with the Code Purple Manual.
• The interlocal agreement will have an effective date retroactive to July 1, 2024 and shall terminate on June 30, 2025.
• On September 24, 2024, via City Council Resolution 24-217, the City Council approved a reallocation of $278,000 in ARPA funds from Ramada to Code Purple. Staff recommends entering into a contract with ABCCM in the amount of $222,000 of ARPA for Code Purple Services, to augment budgeted funds from the City and County to more fully support operational costs this winter as recommended by the CoC. The remaining $56,000 in Code Purple funding will be available for the next Code Purple season (2025-2026).

Vendor Outreach Efforts:

• Funding opportunity was published on the City’s website, announced at CoC and Code Purple planning meetings, and distributed to community partners through the CoC newsletter. Committee(s):
• Asheville-Buncombe Continuum of Care Board
• unanimously voted to approve ABCCM’s funding request at its September 12, 2024 meeting. Pro(s):
• Provides essential, life-saving emergency shelter for people experiencing homelessness during extreme weather
• Facilitates funding partnership with Buncombe County and minimizes administrative burden on shelter provider Con(s):
• None noted

Fiscal Impact:

• $100,000 is available in FY 2025 in the Community & Economic Development operating budget, funded with $50,000 in operating funds and $50,000 in matching funds from Buncombe County..
• For the remaining cost of $222,000, the City will utilize existing ARPA funding.

Background:

• The New Haw Creek Sidewalk Project is part of the 2016 Transportation Bond funded sidewalk improvements.
• This project will install approximately 1 mile of 6’ wide sidewalk along New Haw Creek Rd. from Beverly Rd. to Bell Rd., 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.
• 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 NCDOT approval have been completed.
• Due to the lane closure restrictions, and the complications of constructing on an active roadway, construction is expected to take 18 months, beginning in spring 2025 and completed by the summer of 2026.
• City of Asheville staff publicly advertised for Construction Engineering and Inspection services, as required for a professional service selection process on 4/05/2024.
• Three professional engineering submittals were received and evaluated based on their qualifications, experience and technical approach.
• The evaluation of those submittals, ranked by an evaluation committee, resulted in TranSystems Corporation being the highest ranked firm.
• Negotiations with TranSystems Corporation resulted in an agreed fee of $299,752.69.
• Construction engineering and inspection must be performed in accordance with North Carolina Department of Transportation specifications in order for the Department and FHWA to participate in the costs of a project.

Vendor Outreach Efforts:

• Due to the federal funding involved in this project, the Federal Disadvantaged Business Enterprises program is being applied only to the construction portion of the project.
• The federally established goal for the construction of this project is 7% participation.
• Site Development Corporation, the contractor constructing the project is achieving 8% MBE/DBE participation by utilizing Tree of the Life Construction Inc. from Kings Mountain, NC with concrete sidewalk and curb/gutter installation. 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 Fund.

Background:

• The City entered into a contract with Garbage Pal LLC on September 28, 2024 to protect and preserve human health, lives, and safety in the immediate aftermath of Tropical Storm Helene.
• Garbage Pal provided portable restrooms to many of our public safety first responders and provided portable restrooms and trash receptacles at the water points of distribution.
• The requested amendment to the existing contract is for $43,790 and will bring the total contract price to $133,690.
• The requested amendment will pay previously accrued invoices. The contract will be fully closed out once all remaining invoices are paid.
• All services through this contract have been fulfilled and all equipment has been demobilized.

Vendor Outreach Efforts:

• Due to the immediate need resulting from the storm, staff reached out to multiple vendors seeking pricing and availability. The outreach process included contacting multiple vendors but did not strictly follow business inclusion processes. Committee(s):
• N/A Pro(s):
• The need for a clean environment assisting with lack of water resources due to Tropical Storm Helene.
• Portable facilities in areas facing water shortages provided immediate access to clean water and sanitation Con(s):
• N/A

Fiscal Impact:

• It is anticipated that this contract amendment will be reimbursed by FEMA.

Background:

• The Cityworks software provides a platform for Water Resources, Public Works, and Parks & Recreation asset management, work orders, inventory management, and reporting.
• Cityworks was first selected as a vendor through a competitive selection process in 2016 and is highly integrated with the City’s geographic information system (GIS) program and includes all major physical assets maintained by Water Resources, Public Works, and Parks & Recreation (water mains, valves, hydrants, streets, signs, picnic shelters, etc.)
• Cityworks software is used to manage assets and work activities in the wake of Tropical Storm Helene.
• This software is also utilized to track the use and costs of assets through the preventative maintenance of assets.
• Amending the current contract will provide a fully hosted product for an additional year.
• The fully hosted option allows for better security, data backup, and disaster recovery.
• The amendment also allows for more efficient management of Water Resources, Public Works, and Parks & Recreation physical assets and infrastructure.

Vendor Outreach Efforts:

• No outreach was required as this is amending an existing contract.
• The City of Asheville conducted a competitive procurement process for an asset management software system for both Public Works and Water in 2016 and 2017.
• The asset management system is designed to be used with any other city departments as needed.
• There are a limited number of vendors providing enterprise asset management software, and after reviewing all available options, Azteca Cityworks was selected as the best overall value for the City of Asheville. Committee(s):
• N/A Pro(s):
• Amending the current contract will provide a fully hosted product (software as a service) for an additional year. This allows for better security, data backup, and disaster recovery.
• More efficient management of Water Resources, Public Works, and Parks & Recreation physical assets and infrastructure.
• Automation of work orders and reporting. Con(s):
• None

Fiscal Impact:

• Funding for this contract is available in the Water Resources, Public Works, and Parks & Recreation departmental operating budgets.
• Fiscal Year 2025 Cityworks licensing totaling $116,233.50

Background:

• Buncombe County currently bills and collects City property taxes
• At the August 22, 2023, meeting, City Council approved an addendum to the existing tax collection agreement with Buncombe County to ensure that it fully conforms to the provisions of Chapter 105 of the North Carolina General Statutes, entitled The Revenue Act.
• As part of that compliance, the City Council must, on a monthly basis, approve all property tax releases and refunds that have been approved by the Buncombe County Board of Commissioners.
• City of Asheville refunds and releases for December 2024 are included in the document. Pro(s):
• Ensures compliance with provisions of Chapter 105 of the North Carolina General Statutes, entitled The Revenue Act. Con(s):
• None

Fiscal Impact:

• None.

Suggested Motion:

• Motion to adopt City of Asheville property tax refunds and releases for the month of December, 2024. J. RESOLUTION NO. 25-29
• RESOLUTION TO DECREASE THE MEMBERSHIP OF THE ASHEVILLE HOUSING AUTHORITY FROM ELEVEN TO NINE COMMISSIONERS

Background:

• The Asheville Housing Authority was established by the Asheville City Council via resolution adopted on May 30th, 1940.
• The original membership of the Asheville Housing Authority was set at five commissioners.
• The City Council has authority, pursuant to N.C.G.S. § 157-7(c) to increase or decrease the membership by resolution or ordinance.
• On July 27, 2021, the Asheville City Council increased the membership from five to seven commissioners.
• On January 14, 2025, the Asheville City Council increased the membership from seven to eleven members.
• The City Council now wishes to decrease the membership to 9 commissioners, eliminating the seats currently held by Tilman Jackson and Reginald Robinson. Vendor Outreach Efforts: NA Committee(s):
• NA Pro(s):
• Altering the membership of the commission at this time will increase efficiency, and therefore enhance the capacity of the Authority to perform its duty of providing safe and sanitary dwelling accommodations for persons of low income. Con(s):
• None

Fiscal Impact:

• None

Background:

• The Asheville Housing Authority was established by the Asheville City Council via resolution adopted on May 30th, 1940.
• The original membership of the Asheville Housing Authority was set at five commissioners.
• The City Council has authority, pursuant to N.C.G.S. § 157-7(c) to increase or decrease the membership by resolution or ordinance.
• On July 27, 2021, the Asheville City Council increased the membership from five to seven commissioners.
• On January 14, 2025, the Asheville City Council increased the membership from seven to eleven members.
• The City Council now wishes to decrease the membership to 9 commissioners, eliminating the seats currently held by Tilman Jackson and Reginald Robinson. Vendor Outreach Efforts: NA Committee(s):
• NA Pro(s):
• Altering the membership of the commission at this time will increase efficiency, and therefore enhance the capacity of the Authority to perform its duty of providing safe and sanitary dwelling accommodations for persons of low income. Con(s):
• None

Fiscal Impact:

• None

DEVELOPMENT OF HOUSING AlONG TRANSIT SUPPORTIVE CORRIDORS

Community Development Division Manager James Shelton said that this is the consideration of a resolution authorizing staff to submit an Administrative Action Plan for the CDBG-DR grant to the U.S. Department of Housing and Urban Development (HUD) in order to access up to 5% ($11,250,500) of the total allocation to pay for and reimburse the City for grant-related administrative costs; authorizing the City Manager to execute all documents necessary to give effect to this resolution; and approving a budget amendment in the amount of $225,010,000, for the total amount of the CDBG-DR allocation, noting that these funds are subject to HUD approval of the CDBG-DR Action Plan and are not anticipated to be available for expenditure until later in calendar year 2025. Background:

• On January 16, 2025, HUD announced that the City of Asheville will receive a direct allocation of Community Development Block Grant
• Disaster Recovery (CDBG-DR) funds in the amount of $225,010,000.
• To receive the CDBG-DR funds, the City Council will need to authorize an Action Plan that provides a concise summary of the programs and activities that will be funded to address unmet disaster recovery needs. Staff anticipate bringing that Action Plan to Council for review and approval on April 8, 2025.
• Staff can request access to administrative funds from HUD before submitting the formal Action Plan. These costs include planning and staffing associated with completing and implementing the final CDBG-DR Action Plan.
• This request will allow staff to submit an Administrative Action Plan to HUD and access 5% of the total allocation for administrative costs.
• At the same time, this request includes a budget amendment for the total future allocation of the grant, $225,010,000.
• Receipt of the $225,010 is subject to HUD approval of the City’s CDBG-DR Action Plan and is not anticipated to be available for expenditure until later in calendar year 2025.
• The City will utilize 5% for administrative costs once HUD approves the Administrative Action Plan. The remaining funds will not be spent until after the City Council approves the Action Plan in April and the City Manager executes the grant agreement.

Vendor Outreach Efforts:

• Not applicable Committee(s):
• None, council committees suspended due to ongoing response to Tropical Storm Helene Pro(s):
• Allows the city to be more quickly reimbursed for staffing, planning, and general administration of CDBG-DR related activities Con(s):
• None

Fiscal Impact:

• This action will approve an appropriation of $225,010,000 to the City’s Special Revenue Fund for CDBG-DR reimbursable activities, including up to 5% or $11,250,500 for administrative costs. Mr. Shelton then reviewed the following key takeaways from his presentation: (1) On January 8th, HUD announced that the City of Asheville would receive a direct allocation of CDBG
• Disaster Recovery funding of $225,010,000; (2) The City must now develop an Action Plan that identifies unmet needs and outlines the programs and activities we will fund and submit it to HUD by April 21st. Once the plan is approved by HUD, these funds are anticipated to be available for expenditure in late fall 2025; (3) The City can request access to up to 5% of funding to pay for administrative costs in advance of receiving the full grant amount to pay and reimburse for costs associated with developing the Action Plan and for ongoing program administration; and (4) Requires that we submit an Administrative Action Plan to HUD that indicates our proposed uses of the administrative dollars. Regarding the CDBG-DR administrative costs, (1) Up to 5% of the total grant amount can be used to pay and reimburse for administrative costs of developing the Action Plan and ongoing program administration (a) $11,250,500; and (b) Must budget for the life of the grant = 6 years; (2) Eligible administrative expenses include staff time, consulting fees, public engagement costs, technical assistance, and ongoing administrative costs of overseeing the life of the grant; (3) In order to access the administrative funds, the City must submit an Administrative Action Plan to HUD
• HUD will review and approve the plan within 30 days of receipt; and (4) Requesting early access to these funds is completely optional and we will have full access to them once we receive the full grant agreement, but requesting them early allows us to begin reimbursing for costs we are already incurring like: (a) Consultant services for Action Plan development; and (b) Public engagement costs, like interpretation. When Mayor Manheimer asked for public comments, none were received. Mayor Manheimer said that members of Council have been previously furnished with copies of the resolution and ordinance and they would not be read.

Community Development Division Manager James Shelton said that this is the consideration of a resolution authorizing staff to submit an Administrative Action Plan for the CDBG-DR grant to the U.S. Department of Housing and Urban Development (HUD) in order to access up to 5% ($11,250,500) of the total allocation to pay for and reimburse the City for grant-related administrative costs; authorizing the City Manager to execute all documents necessary to give effect to this resolution; and approving a budget amendment in the amount of $225,010,000, for the total amount of the CDBG-DR allocation, noting that these funds are subject to HUD approval of the CDBG-DR Action Plan and are not anticipated to be available for expenditure until later in calendar year 2025. Background:

• On January 16, 2025, HUD announced that the City of Asheville will receive a direct allocation of Community Development Block Grant
• Disaster Recovery (CDBG-DR) funds in the amount of $225,010,000.
• To receive the CDBG-DR funds, the City Council will need to authorize an Action Plan that provides a concise summary of the programs and activities that will be funded to address unmet disaster recovery needs. Staff anticipate bringing that Action Plan to Council for review and approval on April 8, 2025.
• Staff can request access to administrative funds from HUD before submitting the formal Action Plan. These costs include planning and staffing associated with completing and implementing the final CDBG-DR Action Plan.
• This request will allow staff to submit an Administrative Action Plan to HUD and access 5% of the total allocation for administrative costs.
• At the same time, this request includes a budget amendment for the total future allocation of the grant, $225,010,000.
• Receipt of the $225,010 is subject to HUD approval of the City’s CDBG-DR Action Plan and is not anticipated to be available for expenditure until later in calendar year 2025.
• The City will utilize 5% for administrative costs once HUD approves the Administrative Action Plan. The remaining funds will not be spent until after the City Council approves the Action Plan in April and the City Manager executes the grant agreement.

Vendor Outreach Efforts:

• Not applicable Committee(s):
• None, council committees suspended due to ongoing response to Tropical Storm Helene Pro(s):
• Allows the city to be more quickly reimbursed for staffing, planning, and general administration of CDBG-DR related activities Con(s):
• None

Fiscal Impact:

• This action will approve an appropriation of $225,010,000 to the City’s Special Revenue Fund for CDBG-DR reimbursable activities, including up to 5% or $11,250,500 for administrative costs. Mr. Shelton then reviewed the following key takeaways from his presentation: (1) On January 8th, HUD announced that the City of Asheville would receive a direct allocation of CDBG
• Disaster Recovery funding of $225,010,000; (2) The City must now develop an Action Plan that identifies unmet needs and outlines the programs and activities we will fund and submit it to HUD by April 21st. Once the plan is approved by HUD, these funds are anticipated to be available for expenditure in late fall 2025; (3) The City can request access to up to 5% of funding to pay for administrative costs in advance of receiving the full grant amount to pay and reimburse for costs associated with developing the Action Plan and for ongoing program administration; and (4) Requires that we submit an Administrative Action Plan to HUD that indicates our proposed uses of the administrative dollars. Regarding the CDBG-DR administrative costs, (1) Up to 5% of the total grant amount can be used to pay and reimburse for administrative costs of developing the Action Plan and ongoing program administration (a) $11,250,500; and (b) Must budget for the life of the grant = 6 years; (2) Eligible administrative expenses include staff time, consulting fees, public engagement costs, technical assistance, and ongoing administrative costs of overseeing the life of the grant; (3) In order to access the administrative funds, the City must submit an Administrative Action Plan to HUD
• HUD will review and approve the plan within 30 days of receipt; and (4) Requesting early access to these funds is completely optional and we will have full access to them once we receive the full grant agreement, but requesting them early allows us to begin reimbursing for costs we are already incurring like: (a) Consultant services for Action Plan development; and (b) Public engagement costs, like interpretation. When Mayor Manheimer asked for public comments, none were received. Mayor Manheimer said that members of Council have been previously furnished with copies of the resolution and ordinance and they would not be read.