City Council regular meeting — April 8, 2025

Background:

• The Major Disaster Declaration made by the President of the United States numbered FEMA DR-4827-NC, Tropical Storm Helene, will provide disaster assistance funds to qualifying applicants.
• Disaster Assistance funds for FEMA Public Assistance and other FEMA programs once obligated are passed to the State of North Carolina, Division of Emergency Management for disbursement to local governments.
• While expedited funding has already been received, this funding agreement is required to ensure timely processing of Request for Reimbursements for FEMA related projects.
• This funding agreement is required to receive both Federal and State portions of disaster assistance.

Vendor Outreach Efforts:

• N/A

Council Goal:

• Financially Resilient City

Committee:

• No prior Committee approval.

Pro:

• Required agreement to continue to receive disaster assistance funding related to Tropical Storm Helene. Con(s):
• None

Fiscal Impact:

• Agreement is a required step in continuing to receive disaster assistance funding both on a state and federal level. This includes FEMA funding already approved by the council.

Background:

• Funding for Sidewalk, Pedestrian and Safety Improvements along Patton Ave. was approved through a 2016 Bond Referendum.
• The Patton Ave. Sidewalk Improvements project includes the installation of approx. 0.45 miles of sidewalk, as well as the installation of curb-and-gutter, crosswalks, and bus pads, along Patton Avenue in West Asheville, from its intersection with Louisiana Avenue to its intersection with Druid Drive. Project page
• This project was initially advertised for Bid in February 2023 (#298-PattonSidewalk-FY23). Not enough bids were received and the project did not move forward.
• This project was then rebid in March 2023 (#298-RebidPatton-FY23), but not enough bids were received and the project did not move forward.
• This project was then advertised for bid again on 02/06/2025, and three (3) bids were received from responsive, responsible bidders on 02/27/2025. The Bidders and Bids are listed below. T.P. Howard’s (Fairview, NC)..................................... $955,260.00 Armen Construction (Charlotte, NC)......................... $868,065.00 Appalachian Sitework Inc (Waynesville, NC)............ $743,339.07
• Appalachian Sitework Inc. was deemed the lowest responsive, responsible bidder, and are therefore being recommended for award.
• Construction Anticipated Start Date: June 2025; Construction Anticipated End Date: April 2026.
• Curb and Gutter work may only be performed at night between the hours of 7 PM and 6 AM.

Vendor Outreach Efforts:

• Staff performed outreach to minority and women owned businesses through solicitation processes that included emailing select MWBE vendors after bid issue, posting on the State’s Interactive Purchasing System, and conducting a Pre-Bid meeting with Marcus Kirkman, wherein ABI policy was clearly explained to attendees.
• The recommended Bidder will be utilizing a minority-owned business for Traffic Control, with this participation representing 3.6% ($27,000) of the Total Bid. Committee(s):
• None Pro(s):
• This project directly achieves Council goals and resolutions.
• It will provide a safe, accessible pedestrian route where it is sorely needed: in an area with high vehicular volume, a history of vehicular accidents, where pedestrians have to cross busy streets, driveways, and walk inches from Patton Avenue to access bus-stops and local businesses.
• The need for a pedestrian route here is made even more evident by a well-worn “desire path”, engrained in the mud and turf, in the exact area where sidewalk will be installed. Con(s):
• During Construction, traffic flow will be impacted along Patton Ave, as well as traffic flow in and out of parking lots that serve commercial businesses.
• The impact is mitigated through timing restrictions for certain construction activities (for example, curb and gutter work can only be performed at night), through the installation of https://www.ashevillenc.gov/projects/west-patton-avenue-sidewalk/ traffic control devices, and by providing safe, accessible pedestrian access routes through the construction zone at all times.

Fiscal Impact:

• Funding for this contract is already included in the adopted Capital Improvement Program (CIP).

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 February 2025 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 February 2025. E. MOTION APPROVING THE APPOINTMENT OF PROPOSED SLATE OF DIRECTORS FOR THE ASHEVILLE DOWNTOWN IMPROVEMENT DISTRICT BOARD (THE ENTITY OPERATING THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT This item was removed from the Consent Agenda for discussion and/or an individual vote. F. MOTION AMENDING THE 2025-26 CITY COUNCIL MEETING AGENDA TO (1) CANCEL THE APRIL 17, 2025, AGENDA BRIEFING WORKESSION; AND (2) CANCEL THE THE CITY COUNCIL FORMAL MEETING ON APRIL 22, 2025 Mayor Manheimer asked for public comments on any item on the Consent Agenda, but received none. 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.

(1) CANCEL THE APRIL 17, 2025, AGENDA BRIEFING WORKESSION; AND (2) CANCEL THE THE CITY COUNCIL FORMAL MEETING ON APRIL 22, 2025 Mayor Manheimer asked for public comments on any item on the Consent Agenda, but received none. 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.

Assistant Transportation Director Jessica Morriss said that this is the consideration of a resolution to permanently close an unopened right-of-way (ROW) connected to Morningside Drive between Coventry Circle and Brevard Road. This public hearing was advertised on March 14, 21, 28 and April 4, 2025. Background:

• North Carolina General Statute § 160A-299 grants cities the authority to permanently close streets and alleys. The statute requires City Council to consider whether the closure of the Right-of-Way has a negative impact to the public interest and whether the closure would impede access to parcels, utilities, and other public infrastructure.
• Chris Johnson, Finance and Operations Manager for Nicholson & Sun on behalf of the Owner, Kevin Hole LLC has submitted an application requesting to permanently close approximately 208' of unopened alley ROW on the southernmost portion of the alley accessed from Morningside Drive.
• There are no utility conflicts, nor any transportation connectivity opportunities associated with this unopened right-of-way. Committee(s):
• Technical Review Committee, December 2, 2024, unanimously recommended approval.
• Multimodal Transportation Commission (MMTC)
• Due to the temporary suspension of boards and commissions, the MMTC did not review the request. However, MMTC review is not legally required and the applicant has requested to move forward. Pro(s):
• There are no utility conflicts, nor any transportation connectivity opportunities associated with this unopened right-of-way. Con(s):
• None.

Fiscal Impact:

• This action requires no (additional) City resources and has no fiscal impact. Ms. Morriss said (1) Nicholson & Sun, LLC has petitioned for this closure on behalf of the property owner, Kevin Hole, who owns the properties at 99999 Coventry Cir (963810210800000) and 99999 Brevard Rd (963810327200000); and (2) The unopened right-of-way connects to Morningside Drive, however it is only the southernmost portion of the ROW (~208 feet) that the applicant seeks to close. She used a map, plat and pictures to show the closing. She said the Technical Review Committee (TRC) met on December 2, 2024, recommendation was to approve the closure. Due to the temporary suspension of boards and commissions, the Multimodal Transportation Commission did not review the request. However, MMTC review is not legally required and the applicant has requested to move forward. In response to Councilwoman Ullman, Ms. Morriss said that the Technical Review Committee reviews these closings, with the lens on transportation, utilities, etc. Mayor Manheimer opened the public hearing at 5:52 p..m., and when no one spoke, she closed the public hearing at 5:52 p.m. Mayor Manheimer said that members of Council have previously received a copy of the resolution and it would not be read.

Community Development Division Manager James Shelton said that this is the consideration of a resolution authorizing the City staff to submit the Community Development Block Grant

• Disaster Recovery Action Plan to the U.S. Dept. of Housing & Urban Development for review and approval.

Background:

• The US Department of Housing and Urban Development (HUD) has provided the City of Asheville with a direct allocation of Community Development Block Grant
• Disaster Recovery (CDBG-DR) funds in the amount of $225,010,000 to address unmet needs resulting from the effects of Tropical Storm Helene.
• To receive the CDBG-DR funds, the City must submit an Action Plan to HUD that details what our community’s ongoing unmet needs are as a result of the disaster and what programs and activities we intend to fund to address those needs.
• The City has engaged in an extensive data analysis and community engagement process to identify those unmet needs.
• Based upon the identified needs, as well as what the community and council have identified as priorities for recovery, a Draft Action Plan was developed and posted for public comment on March 4th.
• Public comment was received for 30 days online, via email, and at 3 in-person public feedback sessions.
• All comments were responded to and attached to the plan, changes were made to the Action Plan according to public comment (in alignment with needs, funding availability, and eligibility within the program) and noted as such in the plan.
• City Council must now authorize staff to submit the Action Plan to HUD for review and approval. Committee(s):
• None. Council committees are suspended following Tropical Storm Helene. Pro(s):
• By submitting the Action Plan to HUD, the city can begin the process of implementing the programs that are proposed within the plan once HUD approves.
• Approval at this time will allow the city to submit the Action Plan prior to HUD’s April 21st, 2025 deadline. Con(s):
• None

Fiscal Impact:

• City will receive $225,010,000 in CDBG-DR funds on a reimbursement basis. Funding is already budgeted in the Special Revenue Fund. Mr. Shelton outlined the following key takeaways from his presentation: (1) Since Helene, the City of Asheville has worked to secure resources from FEMA, the State of North Carolina, and others for the long-term recovery. On January 16, 2025 HUD allocated $225,010,000 in CDBG-DR funds to the City and directed the City to develop a CDBG-DR Action Plan; (2) The CDBG-DR Action Plan estimates the City’s unmet needs and describes how the City intends to use CDBG-DR funding to address those unmet needs. A robust community engagement process informed the plan: (a) Over 325 comments were received throughout the process. Each comment has been responded to and included as an appendix in the plan; and (b) The final allocations, as well as programmatic language, were adjusted to reflect these comments and the feedback received will further inform the implementation of the CDBG-DR Action Plan; (3) At this time, staff is seeking City Council’s authorization to submit the CDBG-DR Action Plan to HUD for approval. (a) Best practice is to be intentional and strategic about the programs that we pursue, with a focus on early wins, planning, and long-term resilience. The Plan can be amended as needed; and (b) This Plan will work in concert with the State of NC’s CDBG-DR Action Plan for $1.4B – specifically, recognizing their focus on housing programs and our need to be responsive to economic and infrastructure resilience; and (4) Once the Plan is submitted for approval, we’ll then begin planning our implementation for activating these funds into our community for recovery. He then reviewed the CDBG-DR process overview. The City’s Helene recovery priorities survey’s takeaways shared in February are (1) Strengthen infrastructure
• Focus on water system improvements and climate-adaptive rebuilding; (2) Expand housing solutions
• Increase emergency shelter, rent assistance, and affordable housing development; (3) Support economic recovery
• Focus on business assistance and workforce stabilization; (4) Enhance food security
• Ensure access to essential supplies during crises; and (5) Maintain sustainability focus
• Integrate climate resilience into recovery planning. He then explained the CDBG-DR community engagement sessions (1) Six input sessions throughout February prior to plan development (a) 623 direct comments on our community’s ongoing unmet needs; (b) Key things we heard around each of the CDBG-DR categories: (i) Infrastructure improvements: Parks, water system resiliency, roads, enhancing public spaces; (ii) Economic revitalization: Business and economic diversification and support for small businesses; and (iii) Affordable housing: Need to restore and build new housing units; (2) Draft CDBG-DR Action Plan published on March 4th (a) Public comment collected via publicinput.com/cdbg-dr or email for 30 days (March 4
• April 3); and (b) 3 public feedback sessions held in March on Housing, Economic Revitalization; and Infrastructure; and (3) All comments responded to and attached to final Plan
• Any changes to Plan as a result of comments are noted as such. He gave project stats for the public comment period, along with a sample of public comment participants. Using charts, he explained the alignment with State of North Carolina CDBG-DR Program allocations. Then, using charts, he showed the CDBG-DR Program recommendations and public feedback highlights. The following are proposed allocations in the final plan connection between unmet needs and allocations are in the following program areas: Housing
• $31,000,000; Infrastructure
• $125,000,000; Economic Revitalization
• $52,000,000; Public Services
• $2,000,000, Planning
• $3,759,500; and administration
• $11,250,500. Total $225,010,000. He then reviewed the housing public feedback highlights, along with recommendations as follows: (1) Gap funding for the construction and preservation/rehabilitation of affordable multifamily projects
• Multi-family projects best positioned to reach deeper levels of affordability; (2) State R&R Program: City will pay for hard costs and State will cover administration cost and tim; (3) Projects in City limits are eligible to apply for other State funding programs; (4) Lowered the minimum award to $500,000, and has added language to the Affordable Multi-Family Housing Construction Program to allow for multiple Notices of Funding Opportunities (NOFOs) to be released, which may have different minimum award criteria and allow for smaller unit developments; and (5) Amount increased by $2M as a result of public comment. Changes also made to minimum award amounts and partner selection criteria for deeper affordability. He then reviewed the infrastructure public feedback highlights, along with the recommendations as follows: (1) Water System Improvements
• such as floodproofing and infrastructure hardening to prevent service interruptions; (2) Stormwater management
• may include constructing or rehabilitating flood control structures and implementing green infrastructure; (4) Parks, recreation, and arts and cultural facility improvement to increase community-building within the city; (4) Affordable housing infrastructure
• potential upgrades to water, sewer, and energy systems, as well as site improvements like lighting, sidewalks, and transit access; (5) Commercial district revitalization such as streetscape enhancements, broadband expansion, and public facility upgrades; and (6) Emergency sheltering development & construction. He then reviewed the economic revitalization public feedback highlights, along with the recommendations as follows: (1) The Revitalization of Flooded Commercial Districts Program will provide comprehensive funding to address the recovery of Asheville’s flooded commercial districts. Funding includes, but is not limited to, site development and improvements, improvements to public spaces, facility improvements, flood-proofing, and equipment investments; (2) The Small Business Support Program provides grants and/or loan funds to local small businesses or small business support organizations to target job creation, job retention, and business diversification within the City; (3) The Workforce Development Program addresses an unmet need for skilled labor and specialized training to benefit Asheville’s recovery from Helene and rebuilding efforts. This Program may provide funding for construction trade programs, on-the-job training, and other technical skills; and (4) Amount increased by $2M to respond to public comment. Regarding public services, (1) Provides funds to public or non-profit organizations to reduce and prevent homelessness in the City
• Activities may include rapid-rehousing initiatives and housing counseling services; and (2) Also provides funds to workforce development support organizations to help address barriers to employment within the City
• Activities may include funding for paid training programs, transportation and/or child care stipends while receiving training, and other wraparound services. He then reviewed the planning public feedback highlights, along with the recommendations as follows: (1) the updates to the existing plans may include, but are not limited to: an update to the Wilma Dykeman Riverway Master Plan; updates to the Affordable Housing Plan; a Strategic Plan with recommended updates to the Unified Development Ordinance; neighborhood plans; public works plans, multi-modal transportation planning; and (2) the long-term recovery planning may include: area-specific plans for areas with concentrated damage; infrastructure recovery plans; community connectivity and resiliency plans; housing recovery and resiliency plans; supporting the CoC with emergency shelter planning; and economic recovery and resiliency plans. Each amount increased by $500,000 in response to public comment. Regarding mitigation, (1) Strengthening flood resilience and stormwater management
• Upgrading stormwater systems, expanding green infrastructure, enhancing floodplain restoration, etc.; (2) Increasing infrastructure resilience
• Reinforcing critical infrastructure, enhancing water resiliency, modernizing stormwater infrastructure, etc.; (3) Enhancing housing resilience and community adaptation
• Prioritize historically underserved communities with hazard mitigation efforts; and (4) Supporting economic recovery and risk diversification
• Diversifying local economy, strengthening financial recovery programs, prioritizing flood mitigation in commercial districts, etc. Mitigation efforts will be woven into implementation. He then explained how the City Action Plan maintains compliance with HUD guidance. Councilwoman Roney said that it’s unsurprising to her that food security was a top priority for our neighbors. Back in 2021 at the City Council retreat, Councilwoman Smith joined her in pushing to add neighborhood resiliency in our City Council goals and Councilwoman Smith said something about resilience hubs. She wasn’t sure what that was. After researching that term, she found resiliency hubs are places in your neighborhood
• it can be a spot on your street, the library, a place where you share food and resources
• where we share information. It could look like community centers, faith community centers that have solar with back-up batteries, so that we can have emergency response at the neighborhood level. She didn’t see it explicitly named in our plan but she hears the threads of it in the input. Our plan is kind of vague because we need to move quickly and we have very specific goals. The resilience hub was what people were doing
• they were filling the gap until the government could respond. Also. $1.1 Billion in needs assessment is a hard number to wrap your mind around, but it’s not enough yet it seems like a lot. Among the plans that we have in our community is the climate justice initiative plan and it shows our vulnerability to not only flooding and wildfires, but also landslides. What she heard was please don’t let the plan sit on a shelf. Mr. Shelton responded to Councilman Hess when he asked about child care assistance; and Councilwoman Smith when she asked about assistance for the Gig community
• buskers, and people who do not have brick and mortar businesses. In response to Councilwoman Turner, Mr. Shelton explained that using the funds for capital projects is a best practice as it’s very difficult to make investments in businesses that are strictly for operational costs. Giving a grant though HUD programs can be very stringent for disaster recovery investment. Four individuals spoke to Council in support of the CDBG-DR Action Plan and urged Council to prioritize climate resilience. Mayor Manheimer said that members of Council have previously received a copy of the resolution and it would not be read.

Budget Manager Lindsay Spangler said that this is the consideration of adoption of an ordinance establishing the fees and charges for FY 2025-26. Background:

• Staff reviews fees and charges as part of the budget process each year and brings forward recommendations for adjustments early in the process.
• Fees and charges represent a small portion of General Fund revenues but are the major revenue source for Enterprise Funds.
• Fees and charges made up 31% of total budgeted revenue in the current fiscal year.
• As discussed with City Council at the March 11 Budget Work Session, staff is proposing fee adjustments in Water that represent year two of the three-year rate plan phase-in that began in the current fiscal year.
• Outside of Water, staff is proposing only one other fee adjustment, which is the adoption of a rental fee for the Memorial Stadium Track.
• All other fees will remain unchanged in FY 2025-26.
• More detailed and specific information regarding the fee adjustment was provided as part of this report.
• If approved, fee adjustments will become effective July 1, 2025.
• Proposed changes are based on impacts to revenues, customers, and service provision. Typical household impact of the Water fee changes proposed for FY 2025-26 is below: Bimonthly Usage Bi-Monthly Bill Increase FY26 Annual Increase Residential
• 5/8” (8 CCF) $4.12 $24.72 Commercial
• 5/8” (84 CCF) $32.18 $193.08 Commercial
• 1” (120 CCF) $46.81 $280.86 Manufacturing
• 4” (4,992 CCF) $2,698.62 $16,191.72 Manufacturing
• 8” (26,306 CCF) $16,903.15 $101,418.90 Wholesale
• 8” (18,120 CCF) $9,852.03 $59,112.18 Pro(s):
• Provides for cost recovery 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 support major infrastructure projects in the Water Enterprise Fund.
• Allows staff to begin communicating fee changes to citizens, customers, and stakeholders so they are aware of changes that will be implemented on July 1, 2025. Con(s):
• An increase in the cost of city Water services.

Fiscal Impact:

• Impacts for each recommended change are shown in the document provided. Ms. Spangler outlined the following key takeaways from her presentation as follows: (1) Staff reviews fees and charges as part of the budget process each year and brings forward recommendations for adjustments early in the process; (2) Fees and charges represent a small portion of General Fund revenues but are the major revenue source for Enterprise Funds; (3) Due to the financial impact of Tropical Storm Helene on service users, staff recommends to keep fees and charges changes minimal; and (4) Staff recommendations for FY 2025-26 include: (a) Continuation of the planned water fee increases (year 2 of the 3-year phase in); and (b) An initiation of a fee to rent the Memorial Field Track. Ms. Spangler then showed a chart of the FY 2024-25 General Fund revenues and the FY 2024-25 Enterprise Fund revenues. Regarding the water cost of service study, (1) A Water Cost of Service Study was completed in late 2023 that determined the cost of service by functional area, assessed the rate structure, and made recommendations for multi-year rate adjustments; (2) The results of the Study were discussed with the Policy, Finance, & HR Committee in multiple meetings during last year’s budget process; (3) Staff recommended a three-year phase-in approach to the proposed rate adjustments as the most efficient, effective and equitable approach for our customers since it will eliminate inequity among customer classes sooner, establish needed funding for the capital program, and preserve the City’s debt ratings; (4) City Council adopted year one of the three-year rate adjustments in March 2024 with an effective date of July 1, 2024; (5) Financial Sufficiency
• Ongoing rate adjustments are needed to fund a 5-year capital program initially estimated at $239 million prior to Helene; and (6) Equity / Cost of Service (a) Study found the residential class was subsidizing other customer classes; specifically commercial/manufacturing and wholesale; (b) Therefore, commercial/manufacturing and wholesale customer classes will see higher rate increases relative to other classes; and (c) A 3-year phase-in of the rate adjustments was recommended and shared with system customers during last year’s budget process. The FY 2025 year-one rate adjustment accomplishments are as follows: (1) Issued $26.9M in Water Revenue Bonds in September for the meter replacement project; (2) Increased pay-go capital funding by $2.7M in FY25 to continue infrastructure replacement projects; (3) Added a new Project Manager/Engineer position to design and oversee capital projects; (4) Added a Water Communication Specialist (PIO); and (6) Added four new positions for a South District Crew to improve response time for emergency water main breaks and provide better customer service. The importance of continued rate adjustments are (1) Additional debt issuances are upcoming for projects that are either already underway or planned: (a) $12.5M
• Water Treatment Plant (WTP) Rehab Project; (b) $75M
• WTP treatment enhancements; and (c) $40M
• Mills River Expansion Phase III; (2) Ratings Agencies use metrics such as debt service coverage and reserves to determine ratings for future bonds
• S&P has put Water on a “credit watch with negative implications” pending outcome of rate discussions; and (3) The community rated Strengthening Infrastructure as a top concern in the Helene Recovery Priorities survey. She then reviewed charts of a base rate comparison, the typical customer bill impacts, and the typical user impact. Regarding the Memorial Stadium track fee, (1) Due to the completion of the new track, the Parks and Recreation Department requests to set a fee of $15/hour to rent the track
• This is expected to lead to approx. $1,500 in additional revenue; and (2) This fee allows Parks to remain consistent with the way it manages its other resources. Charging a fee will allow them to better manage the utilization of their facility. When Mayor Manheimer asked for public comments, none were received. Mayor Manheimer said that members of Council have previously received a copy of the ordinance and it would not be read.

Vice-Mayor Mosley, Chair of the Boards & Commissions Committee, said that this is the consideration of appointing alternate members to the Board of Adjustment. The term of John Kledis (alternate) resigned, thus leaving an unexpired term until January 21, 2027. The following individuals applied for the vacancies: Joseph Fitzgerald and James Wornall Jr. The Chair and the staff liaison recommended to appoint James Wornall as the alternate member.

Vice-Mayor Mosley, 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 (current Chair) and Carter Webb expire on May 21, 2025. In addition, City Council must appoint a Chair. Carol Goins and Richard Deavereaux are interested in the seat of Chair. The following individual applied for the vacancy: James Wornall Jr. The Chair recommended reappointment of Carter Webb.