CITY COUNCIL AGENDA Monday, June 4, 2018 5:30 p.m. Closed session as provided by Section 2.2-3712 of the Virginia Code Second Floor Conference Room (Boards & Commissions) 6:30 p.m. Regular Meeting - CALL TO ORDER Council Chambers PLEDGE OF ALLEGIANCE ROLL CALL PROCLAMATIONS CITY MANAGER RESPONSE TO COMMUNITY MATTERS COMMUNITY MATTERS Public comment is provided for up to 16 speakers at the beginning of the meeting (limit 3 minutes per speaker.) Pre-registration is available for up to 8 spaces, and pre-registered speakers are announced by noon the day of the meeting. The number of speakers is unlimited at the end of the meeting. 1. CONSENT AGENDA*: (Items removed from consent agenda will be considered at the end of the regular agenda.) a. Minutes for May 21, 2018 b. APPROPRIATION: Supplemental funding from Charlottesville City Schools for the Charlottesville High School Fieldhouse Renovation Project – $121,775.00 (1st of 2 readings) c. APPROPRIATION: Grant for Construction of Rugby Avenue Trail –$396,450 (1st of 2 readings) d. APPROPRIATION: Fire Equipment Overpayment Reimbursement - $18,712.50 (1st of 2 readings) e. APPROPRIATION: Charlottesville Affordable Housing Fund for repayment of Substantial Rehab loan – $24,000.00 (1st of 2 readings) f. RESOLUTION: Allocation to CRHA for Internet Installation – $150,000 (1st of 1 reading) g. RESOLUTION: Community Civil Rights Pilgrimage Funding Request – $55,000 (1st of 1 reading) h. RESOLUTION: 227 Brookwood Dr. Special Use Permit (SUP) (1st of 1 reading) i. RESOLUTION: Cville Sabroso Festival Funding Request – $2,400 (1st of 1 reading) j. RESOLUTION: V.D.O.T. Recreational Access Funding – McIntire Park Bridge (1st of 1 reading) k. ORDINANCE: Homeowner Tax Relief Grant Program – 2018 (2nd of 2 readings) l. ORDINANCE: Proposed Conveyance of a portion of Water Street Right-of-Way for Charlottesville Technology Center at 230 West Main Street (2nd of 2 readings) 2. PUBLIC HEARING / Close portion of Dice Street (1st of 2 readings) 20 mins ORDINANCE*: 3. PUBLIC HEARING / Utility Rate Report (1st of 2 readings) 30 mins ORDINANCE*: 4. RESOLUTION*: South Rivanna Reservoir to Ragged Mountain Reservoir Water Line Project (1st of 1 reading) 30 mins 5. APPROPRIATION*: Charlottesville Affordable Housing Fund (CAHF) Assistance for the Piedmont Housing Alliance (PHA) Down Payment Assistance Program – $186,125 (1st of 2 readings) 30 mins OTHER BUSINESS MATTERS BY THE PUBLIC *ACTION NEEDED GUIDELINES FOR PUBLIC COMMENT We welcome public comment; it is an important part of our meeting. Time is reserved near the beginning and at the end of each regular City Council meeting for public comment. Please follow these guidelines for public comment:  Each speaker has 3 minutes to speak. Please give your name and place of residence before beginning your remarks.  Please do not interrupt speakers, whether or not you agree with them. Speaking from the audience is not permitted without first being recognized by the Chair.  Please refrain from using obscenities.  If you are here to speak for a Public Hearing, please wait to speak on the matter until the report for that item has been presented and the Public Hearing has been opened.  If you cannot follow these guidelines, you will be asked to leave City Council Chambers and will not be permitted to re-enter. Persons with disabilities may request reasonable accommodations by contacting ada@charlottesville.org or (434) 970-3182. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: Approve Appropriation Presenter: Mike Mollica, Division Manager, Facilities Development Staff Contacts: Mike Mollica, Division Manager, Facilities Development Ryan Davidson, Senior Budget and Management Analyst, Office of Budget and Performance Management Title: Appropriation Supplemental funding from Charlottesville City Schools for the Charlottesville High School Fieldhouse Renovation Project - $121,775.00 Background: The City received a $121,775.00 payment from Charlottesville City Schools, earmarked as supplemental funding to cover the Charlottesville High School (C.H.S.) Fieldhouse Renovation Project budget shortfall. The initial project funding was included and approved as part of the School’s Lump Sum Capital Improvement Program for FY’18; however, the low bid received from Nielson Construction on April 30, 2018, exceeded the remaining project budget by $121,775. Discussion: Charlottesville City Schools has provided the additional funding needed to cover the funding gap. In compliance with Capital Improvement Program Procedures (City Policy # 200-09), this supplemental funding needs to be appropriated to the School’s Lump Sum Capital Improvement Fund that houses the overall project budget. Once the additional funding is in place, the contract phase of the project will move forward. Assuming the appropriation of these funds construction is anticipated to take place in summer 2018. Alignment with Council Vision Areas and Strategic Plan: The project supports City Council’s “Smart, Citizen-Focused Government” vision. It contributes to Goal 3.2 of the Strategic Plan, Provide reliable and high quality infrastructure. Community Engagement: N/A Budgetary Impact: This has no impact on the General Fund. The funds will be expensed and reimbursed to the Capital Improvement Program Fund. Recommendation: Staff recommends approval and appropriation of the funds. Alternatives: Identify alternative funding sources or cancel the project. Attachments: Appropriation APPROPRIATION Supplemental Project Funding From Charlottesville City Schools $121,775.00 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that $121,775.00 is to be appropriated in the following manner: Revenues $121,775.00 Fund: 426 WBS: SH-018 G/L Account: 432085 Expenditures $121,775.00 Fund: 426 WBS: SH-018 G/L Account: 599999 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: Appropriation Presenter: Chris Gensic, Parks and Recreation Staff Contacts: Chris Gensic, Parks and Recreation Brian Daly, Parks and Recreation Ryan Davidson, Senior Budget and Management Analyst Title: MAP Grant for Construction of Rugby Avenue Trail $396,450 Background: The City of Charlottesville, through Parks and Recreation, has received an award from the Virginia Department of Transportation in the amount of $317,160 to assist with efforts to construct a bicycle and pedestrian trail along Rugby Avenue from Sherwood Avenue to McIntire Park west. The City will match this project in the amount of $79,290 from the BikePed fund (CP-083). Discussion: The City of Charlottesville has completed a bicycle, pedestrian and trail master plan that includes a bike/pedestrian commuter trail along the east side of Rugby Avenue. This will improve safe multimodal access into West McIntire Park and will connect to the bicycle and pedestrian bridge that will cross the railroad into East McIntire Park. The City applied for and has been awarded the funding to complete this section of trail. Design work has been completed and approved, this project will move into the construction phase in the near future. Community Engagement: The bicycle, pedestrian and trail master plan was developed with multiple public meetings and was approved by Council to be an addendum to the City Comprehensive Plan. Alignment with City Council’s Vision and Strategic Plan: Construction of this trail will further council goals of being a Connected City by establishing a portion of the bicycle and pedestrian trail system that enhances our residential neighborhoods. Budgetary Impact: This request has no impact on the general fund. The entire local match of $79,290, will be transferred from previously appropriated Capital Improvement Program (C.I.P.) funding sources. The grant award is for $317,160, with a local match of $79,290 for a total appropriation of $396,450. Recommendation: Staff recommends appropriation of grant funds. Alternatives: If grants funds are not appropriated, the Parks Department will need to find another source for the money, or make an additional C.I.P. request through the annual budget process, and the project will be delayed by at least one year. Without assistance from this grant program, more local dollars will have to be expended in order to construct the trail, leaving less money for other improvements to the parks. Attachments: Grant award letter from V.D.O.T. APPROPRIATION MAP-21 Grant for Construction of Rugby Avenue Trail $396,450 WHEREAS, the City of Charlottesville, through Parks and Recreation, has been awarded $317,160 from the Virginia Department of Transportation to construct a bicycle and pedestrian trail along Rugby Avenue; and WHEREAS, the City will match this grant in the amount of $79,290 from the BikePed fund CP-083. NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that the sum of $396,450 is hereby appropriated in the following manner: Revenue $317,160 Fund: 426 WBS: P-00977 G/L Account: 430120 Expenditures $317,160 Fund: 426 WBS: P-00977 G/L Account: 599999 Transfer From $79,290 Fund: 426 WBS: CP-083 G/L Account: 599999 Transfer To $79,290 Fund: 426 WBS: P-00977 G/L Account: 599999 BE IT FURTHER RESOLVED, that this appropriation is conditioned upon the receipt of $317,160 from the Virginia Department of Transportation. This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Requested: Approve Appropriation Presenter: Mike Rogers, Deputy Chief – Operations, Charlottesville Fire Dept. Staff Contacts: Mike Rogers, Deputy Chief – Operations, Charlottesville Fire Dept. Title: Fire Equipment Overpayment Reimbursement - $18,712.50 Background: In 2011 the Fire Department worked in conjunction with City Fleet on the purchase of a new piece of fire apparatus. This purchase was funded through approved funding in the C.I.P. A heart monitor/defibrillator was purchased as part of the equipment compliment from Phillips Healthcare. The fire department was recently notified by Phillips Healthcare that the City has a credit balance relating to this order. Discussion: Upon investigation, it appears that two purchase orders were created and paid but according to Phillips Healthcare, only one monitor/defibrillator was officially ordered and delivered. The remaining funds have been with Phillips Healthcare since that time. The overpayment has been returned to the City and we are asking that they be re-appropriated to be used for a reserve patient stretcher for the department’s ambulance. We do not presently have a reserve stretcher should a primary stretcher have to come out of service. A new stretcher will be ordered with the pending new ambulance, but we will still be in need of a reserve stretcher to serve as a backup. Alignment with Council Vision Areas and Strategic Plan: The original intent of the funding was to support the City’s mission “To provide services that promote equity and an excellent quality of life in our community” by providing funding for fire apparatus and equipment. With this refund being reapplied to this purpose we are better able to equip our responders to deliver emergency services to the citizens, students, business community members, and guests of the City. This refund back to us from the original funding allotment F.Y. 10 also aligns with Goal 2: A Healthy and Safe City, providing funds for life safety supplies and equipment. Community Engagement: N/A Budgetary Impact: There is no impact to the General Fund. The refund monies have already been received and have been placed back into the F.Y. 10 Fire Trucks project account, but need to be appropriated in order to be spent. Recommendation: Staff recommends appropriation of the funds to be used for current day apparatus equipment needs. Alternatives: If funds are not appropriated to be used for present day equipment needs, operational funding may need to be used in lieu of these funds to offset costs with pending apparatus purchases and equipment needs. Attachments: N/A APPROPRIATION Fire Equipment Overpayment Reimbursement $18,712.50 WHEREAS, Phillips Medical Equipment has refunded $18,712.50 to the Fire Department for monies overpaid for medical equipment in FY10; NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that a total of $18,712.50 be appropriated in the following manner: Revenues - $18,712.50 $18,712.50 Fund: 426 P: 00976 G/L Account: 451999 Expenditures - $18,712.50 $18,712.50 Fund: 426 P: 00976 G/L Account: 451999 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA. CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: Approval of Appropriations Staff Contacts: Stacy Pethia, Housing Program Coordinator Presenter: Stacy Pethia, Housing Program Coordinator Title: Appropriation of funds to the Charlottesville Affordable Housing Fund for repayment of Substantial Rehab loan - $24,000.00 Background: On June 8, 2007 the City issued a Substantial Rehab loan of $24,000.00 to Anthony Paul Trace. The funds were provided as a 20-year, zero-interest deferred payment loan with payment due upon sale, or other transference of the property prior to June 1, 2027. Mr. Trace recently sold the property and provided a check to the City in the full amount of the loan. Discussion: The loan satisfaction payment received from Mr. Trace meets the terms of the loan agreement and the funds received need to be appropriated to the Charlottesville Affordable Housing Fund (CAHF) in order to be used for future projects or programs related to affordable housing. Community Engagement: There has been no direct community engagement on this issue, as the payment received from Mr. Trace was made to satisfy the remaining balance of her June 25, 2013 substantial rehabilitation loan. Alignment with City Council Vision and Strategic Plan: Approval of this item aligns with the City Council Vision of ‘Quality Housing for All’ and with the Strategic Plan Goal 1.3 to “Increase affordable housing options.” Budgetary Impact: The loan repayment will increase the amount of available CAHF funds to $238,190.65 for the remainder of FY 2018. CAHF Balance as of 5/8/2018 $129,410.97 1725 Jefferson Park Avenue ADU Payment $ 75,779.68 Loan Repayment – Anthony Paul Trace $ 24,000.00 CAHF Balance after appropriation $238,190.65 Recommendation Staff recommends approval of the appropriation. Alternatives: There is no alternative for appropriation of the funds, as these funds must be returned to their original source. Attachments: N/A APPROPRIATION Charlottesville Affordable Housing Fund Substantial Rehab Loan Payoff – Anthony Paul Trace $24,000.00 WHEREAS, the City of Charlottesville has received funding from the payoff of the Anthony Paul Trace Deed of Trust ($24,000.00); NOW, THERFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that the sum of $24,000.00 be appropriated as follows: Revenues: $24,000.00 Fund: 426 Project: CP-084 G/L Code: 434675 Expenditures: $24,000.00 Fund: 426 Project: CP-084 G/L Code: 599999 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: May 21, 2018 Action: Approve Resolution to Allocate Funds Presenter: Maurice Jones, City Manager Staff Contacts: Maurice Jones, City Manager Title: Charlottesville Redevelopment and Housing Authority – Request for Funding ($150,000) to Support Capital Improvements to provide Internet Services to Public Housing Residents Background: The Charlottesville Redevelopment and Housing Authority (CRHA) has requested from the City $150,000. The purpose of the request is to provide funding for improvements planned to be made by CRHA to its public housing units, specifically: wiring and other facilities for access to high speed broadband internet services within every public housing unit citywide (the “Project”). Discussion: Pursuant to Va. Code 36-19(2) and (3), respectively, CRHA has authority to “provide for the…improvement [or] alteration…of any housing project….” and to “arrange for or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof.” Pursuant to Va. Code 36-7 the City of Charlottesville, through appropriations made by City Council, may donate money to CRHA “to enable or assist such Authority to carry out its purposes.” In 2015, President Obama said, “high-speed broadband is not a luxury, it’s a necessity,” and in 2016, the UN passed a resolution declaring Internet access a human right. Today, access to computers and the Internet are necessary for full participation in America's economic, political and social life. Having adequate home Internet access provides measurable economic and social outcomes through providing people with better access to education, job prospects, health care, government services, and business opportunities. But despite its importance, in communities across the U.S. – including right here in Charlottesville – not everyone has access, or sufficiently robust access, which is primarily due to affordability. That means low-income households are missing out on one of the most important tools to help with their everyday and long-term challenges. The City Council does not need to be involved in the means or methods by which CRHA may choose to undertake the Project If City Council agrees that this is an important Project that it desires to fund, then Council has authority under state law to donate money to CRHA to support the Project. Community Engagement: N/A Alignment with City Council’s Vision and Strategic Plan: This request aligns with the City’s goal to have a community of self-sufficient residents and will assist in the objectives to give public housing residents the necessary tools for school and job success, and financial independence, and will address issues around race and equity so that no one “misses out” because they cannot afford internet access. Budgetary Impact: Funds will come from already appropriated funds in the Capital Improvement Program Contingency Fund. Recommendation: Approve resolution to allocate $150,000 to CRHA should Council choose to do. Staff recommends that CRHA be required to provide a report to Council on or before August 31, 2019, documenting cumulative expenditures by CRHA for the Project. Alternatives: Take no action. Attachments: N/A RESOLUTION High Speed Broadband Internet Services Infrastructure for Charlottesville Redevelopment and Housing Authority - $150,000 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that the following is hereby of $150,000, is hereby paid from currently appropriated funds in the Capital Improvement Program Contingency account to the Charlottesville Redevelopment and Housing Authority: $150,000 Fund: 426 WBS: CP-080 G/L Account: 599999 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 18, 2018 Action Required: vote on resolution Staff Contact: Mike Murphy, Assistant City Manager Presenter: Dr. Andrea Douglas, Jefferson School African American Center Dr. Jalane Schmidt Title: Community Civil Rights Pilgrimage Funding Request – $55,000 Background: The Jefferson School African American Heritage Center seeks $55,000 to support the July 2018 Community Civil Rights Pilgrimage to Montgomery Alabama. Funds will be used for bus rentals, hotels, honorariums and scholarships for students, teachers and underprivileged community members. Discussion: In 2016 the City of Charlottesville formed the Blue Ribbon Commission on Race, Monuments and Public Spaces (BRC), and tasked the BRC with creating a process that would “change the narrative on race” in the City’s public spaces. The Commission’s deliberations and the events of 2017, marked most notably by the violence and unrest which transpired on both July 8 and August 12, 2017, revealed the limited knowledge held by Charlottesville’s residents of the history of racial inequality specific to our community. The frequently voiced notion that racists invaded Charlottesville during the “Summer of Hate” suggests that few have a real sense of the racism that is endemic to Charlottesville’s social fabric. Utmost in last year’s discussion was the pervasiveness of the Lost Cause narrative of the Civil War and how its romanticized falsehoods have defined our public spaces, and inhibited an overall sense of empathy for the negative social conditions, which confront African Americans in our community. Without visible public history to both refute the Lost Cause narrative of the Civil War represented solely by Confederate monuments in our most prominent public sites, i.e., our urban parks, and the revelation of facts regarding our community’s Jim Crow period, it is unlikely that residents and visitors alike will walk away with an accurate interpretation of local or national history. Lynching is a direct act of terrorism that was used to support the Lost Cause narrative and white supremacy well into the 1950s. There has been 4,000 recorded instances of lynching of African American people. Charlottesville’s lynching event is counted among this number, however, few people know of the event’s circumstance. 1 On July 11th, 1898, African American John Henry James was accused of criminally assaulting Miss Julia Hotopp outside of the gate of her home near Charlottesville, when she got off her horse to unlock the gate. He was charged for the assault and arrested. That night he was taken out of the jail and put on a train to be moved to a jail in Staunton for fear of a lynching mob. On the following morning, James was to stand trial in Charlottesville; according to the Alexandria Gazette, “The prisoner left Staunton at 10 o’clock in the morning in charge of Chief of Police Frank Parish and Lucien Watts, sheriff of the county. When the train was nearing Wood’s crossing, about four miles west of Charlottesville, the officers noticed a crowd at the station […]. As soon as the train slowed, a number of men, unmasked, boarded the platforms of the car, front and rear. All were armed with pistols and there seemed to be one hundred and fifty in the crowd.” The mob seized James and when they reached the platform, a rope was thrown over James’s neck. James was then carried about 40 yards to a small locust tree; before being hung to the tree, the mob allowed James to pray for 20 minutes. He was then tied up on the tree and when his body was elevated over the crowd, he was riddled with bullets. The Shenandoah Herald reported that 75 bullets perforated his body. According to the Richmond Planet, “The body of James was left hanging on the tree about two hours. Hundreds of people visited the scene this afternoon. Many of them gathered relics of the occasion, taking some portions of his clothing, etc.” A grand jury met after James’ death and handed down a guilty verdict as if he were still living. The African American newspaper Richmond Planet condemned the lynching, claiming that “Lynchers should be fired upon, and abettors should he placed in the penitentiary. When the law- abiding citizens rally to defend the jails with the same spirit possessed by those who proceed to attack them, lynch-law will go.” Memorializing John James’ lynching is necessary to call attention to Charlottesville’s racial inequality. It is also necessary since it establishes an important point in the continuum of excessive punitive action against African Americans. Consequently, this request is in keeping with the goal to educate youth and adults about historical and structural racism, the consequent internalization of racialized identities, and the framing of narratives to oppress people of color. Project Description Rearticulation of Charlottesville’s public history demands an accurate retelling of a social history that was taught well into the 1980s in local schools. They propose to create a program by which students, teachers and the general public can be exposed to a critical examination of the Lost Cause narrative. By participating in the Equal Justice Initiative (EJI) project, this constituency will further come to terms with Charlottesville’s racial history. One of the less-noted recommendations of the BRC to City Council, which Council unanimously approved, was to place an historical marker which would memorialize the 1898 lynching of Mr. John Henry James. We propose to collect soil from Woods Crossing in Albemarle County, the location of Henry James’ lynching, and take that soil to Montgomery, Alabama, to deliver it to the Equal Justice Initiative National Memorial for Peace and Justice (https://museumandmemorial.eji.org/) on July 12, the 120th anniversary of Mr. James’ murder. The National Memorial for Peace and Justice will open April 26, 2018. https://www.cbsnews.com/news/inside-the-memorial-to-victims-of-lynching-60-minutes-oprah- 2 winfrey/ Its goal is to create a “sober, meaningful site where people can gather and reflect on America’s history of racial inequality.” Travelers hope to make this journey with two buses (approximately 110 people) filled with students, teachers, low income members of our community as well as others from the general public. Over six days and five nights, they will make stops at various institutions that consider American race history. See appendix A for a draft itinerary. Local historians will guide the trip and encourage participants to journal about their experiences. They will return from Montgomery, Alabama, with a lynching memorial module to be installed in a re-designed Justice Park in downtown Charlottesville. Additionally, we will affect Charlottesville curriculum by inviting Civil War historian Kevin Levin to work with social studies teacher so they will be prepared to teach Civil War history during the fall 2018 term. Students from Charlottesville High School will be encouraged to join the trip and thereafter, participate in an essay contest on topics relating to local history of the Civil War and Jim Crow era. Winners would be announced on March 3, 2019, as part of our annual Liberation & Freedom Day observances. The top three winners will receive a prize furnished by EJI. Throughout the project we will establish a community education support committee with representatives from social justice groups including but not limited to Black Lives Matter, Standing Up for Racial Justice, NAACP, UCares, local church leaders, City of Charlottesville, Charlottesville City Schools, Cville Human Rights Commission, Dialogue on Race,Virginia Humanities, Legal Aid and Virginia Organizing who will inform and gain support for the overall project subsequently creating an educational opportunity for the entire community. Budget Additional funds will be sought from private donors and local foundations, University of Virginia Provost’s Office, Charlottesville Albemarle Bar Association, and UCares. Approximately one third of the participants on the tour will pay full cost of trip of $1,500 per person. Bus rental x2 $25,000 Hotel/per diem $63,250 Honoraria $10,000 Museum entry $9300 Publicity $5000 Local Events $5000 Interns $5000 Supplies /t-shirts $3,000 Total $125,550 Community Engagement: Participation in The Equal Justice Initiative Community Remembrance Project was unanimously endorsed by the Blue Ribbon Commission (BRC) on Race and Public Spaces. The BRC offered significant opportunities for community engagement. Council has considered the recommendations of the BRC in several public meetings since they were initially presented on December 19, 2016. Council empowered Dr. Jalane Schmidt and Dr. Andrea Douglas on March 3 19, 2018 to pursue the four elements of participation with EJI. Dr. Schmidt and Dr. Douglas have engaged numerous stakeholders individually and in groups since that time. Alignment with City Council’s Vision and Strategic Plan: This festival supports the City’s Strategic Plan in that it hopes to address issues around racial equity by providing an experience that will help Charlottesville further come to terms with racism. The City will also become the home of a permanent lynching memorial installation that will be featured in Justice Park. Recommendation: Staff has prepared a resolution that allocates $55,000 from the Council’s Strategic Initiatives Account from the $500,000 that was set aside in response to the Blue Ribbon Commission on Race, Monuments and Public Spaces. No new money is required since this is coming from already appropriated funds. Budgetary Impact: Staff is recommending that these funds come from already appropriated funds in the Council Strategic Initiative account that were set aside for Alternatives: Do not provide funding for the pilgrimage. Attachments: Appendix A – Draft Itinerary 4 RESOLUTION Community Civil Rights Pilgrimage Funding Request $55,000 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $55,000 is hereby paid from currently appropriated funds in the Council Strategic Initiatives account in the General Fund to the Jefferson African American Heritage Center in support of the community civil rights pilgrimage. $55,000 Fund: 105 Internal Order: 2000135 5 DRAFT SCHEDULE Charlottesville Community Civil Rights Pilgrimage “Get on the freedom bus, y’all!” July 8-13, 2018 Saturday, July 7: Charlottesville, VA  Gather soil sample from lynching site at Ivy Crossing  Community conversation and screening of An Outrage documentary film about lynching in the South held at Jefferson School African American Heritage Center (JSAAHC)  Pilgrimage attendees’ orientation mtg. at JSAAHC with planners, historians, travelers re: logistics coordination. Sunday, July 8: Appomattox, VA & Dansville, VA  Appomattox National Park, tour  Danville Fine Art & History Museum. Monday, July 9: Greensboro, NC & Charlotte, NC  Presentation by members of Greensboro Truth & Reconciliation Commission  Greensboro International Civil Rights Center and Museum  Levine Museum of the New South tour Tuesday, July 10: Atlanta, GA  Tour Sweet Auburn MLK historic district, Ebenezer Baptist Church, King Center, National Center for Civil and Human Rights Wednesday, July 11: Birmingham, AL  Visit 16th St. Baptist Church  Birmingham Civil Rights Institute Thursday, July 12: Montgomery, AL—120th anniversary of the lynching of John Henry James  Tour Southern Poverty Law Center Civil Rights Memorial Center and visit Dexter Avenue King Memorial Church, where MLK preached and led Montgomery Improvement Association bus boycott.  Tour Dexter Parsonage Museum  Freedom Rides Museum and Rosa Parks Museum  Tour Equal Justice Initiative Legacy Museum & National Memorial to Peace and Justice Deliver Charlottesville lynching site soil sample to EJI staff, retrieve and load Cville’s lynching memorial module onto bus. Friday, July 13: Return from Montgomery, AL to Charlottesville. Charlottesville Public Works department retrieves lynching memorial module from bus. Saturday, July 21: POST-TRIP follow-up:  Meeting of participants at JSAAHC to share from journals, reflect, plan presentation for community. August, date TBA: Public presentations: Pilgrimage participants report back to wider community and donors at dinner 6 Additional Relevant Dates April 23 & Aril 30 Meetings with Rosa Atkins, Charlottesville Schools Superintendent May 4 Meeting with UVA ODE Provost Dr. Martin Marcus Week of May 7 Meetings with private donors and chairman of board of Farmington Country Club June 11-13 Proposed CHS teachers professional development session with Civil War historian Kevin Levin, to prepare for July 2018 pilgrimage and February 2019 EJI essay contest. 7 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Requested: Consideration of a SUP Application Presenter: Matt Alfele, City Planner Staff Contacts: Matt Alfele, City Planner Title: SP18-00006 227 Brookwood Drive Background: Landowner Diane Anderson has submitted an application pursuant to City Code Z.O. Sec. 34-420, seeking approval of a Special Use Permit (SUP) for this property to authorize a Family Day Home for up to eight (8) children. The Subject Property is further identified as Tax Map 25A, Parcel 27. The Subject Property has an area of approximately 0.28 acres and has a zoning designation of “R- 1S (low-density residential, small-lot). The Subject Property contains a single-family dwelling used for residential occupancy by the Applicant. The City’s Comprehensive Plan and Land Use Map for both call for the area to be used and developed for Low Density Residential purposes, at densities no greater than 15 units per acre. Discussion: The Planning Commission discussed this matter at their May 8, 2018 meeting. The discussion of the subject property centered on the use of a sign family home for a Family Day Home. Safe drop off/pick up and outdoor space for children to play were the two (2) points discussed during the meeting. Insuring any future childcare facility at this location be appropriately regulated was also discussed. Alignment with City Council’s Vision and Strategic Plan: If City Council approves the SUP request, the project could contribute to Goal: A Strong, Creative and Diversified Economy, 4.3 Grow and retain viable businesses. 1 Community Engagement: The Planning Commission held a joint Public Hearing with City Council on this matter at their meeting on May 8, 2018. No one spoke during the Public Hearing. On March 5, 2018 the applicant held a community meeting in the NDS Conference Room. The applicant gave an overview of her Family Day Home and the reason she was perusing a SUP. Two (2) members of the public attended the meeting and they were very supportive of the SUP application. They live near the applicant and attended the meeting hoping to secure a spot for their expected newborn. The attendees spoke to the need of more accessible childcare in their neighborhood and the City as a whole. Budgetary Impact: This has no impact on the General Fund. Recommendations: The Planning Commission took the following action: Ms. Keller moved to recommend approval of this application for a Special Use Permit in the R- 1S zone at 227 Brookwood Drive with two (2) additional conditions:  A traffic safety plan shall be keep on file with the City and provided yearly to new families. The safety plan shall address drop-off and pick-up procedures related to automotive traffic.  The Family Day Home shall meet all applicable laws and licensing requirements. Mr. Keesecker seconded the motion. The motion passed 5 - 0. Alternatives: City Council has several alternatives: (1) by motion, approve the attached Resolution granting the SUP with conditions as recommended by the Planning Commission; (2) by motion, deny the attached Resolution granting the SUP with conditions; (3) by motion, request changes to the attached Resolution and conditions, and then approve the SUP; or (4) by motion, defer action on the SUP. Attachments: A. Resolution B. Link to the Staff Report and background information from the May 8, 2018 Planning Commission meeting: http://www.charlottesville.org/home/showdocument?id=61709 (Staff Report starts on page 50) 2 RESOLUTION GRANTING A SPECIAL USE PERMIT FOR A FAMILY DAY HOME FOR UP TO EIGHT (8) CHILDREN AT 227 BROOKWOOD DRIVE WHEREAS, Diane Anderson (“Applicant”) has submitted an application seeking approval of a special use permit to allow a family day home within her home located at 227 Brookwood Drive, Charlottesville, Virginia, such property being further identified on City Tax Map 25A as Parcel 27, consisting of approximately 0.28 acre (“Subject Property”); and WHEREAS, Applicant seeks to establish a family day home serving up to 8 children at the Subject Property, operating between the hours of 7:00 a.m. and 5:30 p.m.; and WHEREAS, the Subject Property is zoned “R-1S” (low-density residential, small lot) and, pursuant to §34-420 of the City Code, a family day home serving 6 to 12 children is allowed pursuant to a special use permit within that zoning district; and WHEREAS, the Planning Commission has reviewed this application as required by City Code Sec. 34-160(b), and following a joint public hearing duly advertised and conducted by the Planning Commission and City Council on May 8, 2018, the Planning Commission voted to recommend that Council should approve the requested special use permit, and recommended certain conditions for Council’s consideration; and WHEREAS, upon consideration of the Planning Commission’s recommendation as well as the factors set forth within Sec. 34-157 of the City’s Zoning Ordinance, the Council finds and determines that granting the requested special use permit, subject to suitable conditions, would serve the public necessity, convenience, general welfare or good zoning practice; now, therefore, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that a special use permit is hereby approved to authorize a family day home within the residence located at 227 Brookwood Drive, subject to the following conditions, exceptions, and/or modifications: 1. The family day home shall serve not more than eight (8) children. 2. The family day home may operate from 7:00 a.m. to 5:30 p.m. 3. The family day home operator shall develop and provide to parents of children cared for in the family day home a safety plan, recommending safety “best practices” for children dropped off and picked up by parents via motor vehicles, and shall review the safety plan with parents on an annual basis. 4. The day home operator shall: (i) obtain, and shall maintain during all times the family day home is operating, any license required by the Commonwealth of Virginia, and (ii) comply with any other applicable requirements of state law or regulations. This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: vote on resolution Staff Contact: Leslie Beauregard, Assistant City Manager Presenter: Fanny Smedile, President, Sin Barreras – Without Barriers, Inc. Title: Cville Sabroso Festival Funding Request – $2,400 Background: Sin Barreras-Without Barriers, Inc. is seeking $2,400 from the City for their annual festival, Cville Sabroso, to be held on September 15, 2018. Starting with the FY 2020 budget cycle, Sin Barreras -Without Barriers, Inc. will go through the Agency Budget Review Team as they have done for their other programming. Discussion: Cville Sabroso is the only Hispanic music and dance festival in Central Virginia, a gorgeously costumed day of Latin music and dance. It has been co-hosted by Sin Barreras and numerous Charlottesville civic entities for five years, supported entirely from volunteer and other donor contributions. In its first several years, it was a small event held at McGuffy Park, but was sufficiently important that on its hosting in 2013, the Mayor of Charlottesville, Satyendra Singh Huja, officially declared September 13, 2013 Cville Sabroso Day. Outgrowing the McGuffy location in 2014, the venue moved to IX Park for 2014 and 2015. Inaugurated by Councilman Bob Fenwick in those years, attendance was estimated at 2,400 people each year. Inaugurated by Councilwomen Kristen Szakos and Kathy Galvin in 2017, because of increasing word-of- mouth publicity, attendance on Sept. 16, 2017 was 4,000 people. For five years Sin Barreras has energetically looked in the Charlottesville community for the approximately $11,000 required to run this event, reaching out to numerous local businesses and banks: BB&T, Wells Fargo, PVCC, Three Notch’d Brewery, Newsplex, Restaurant El Tio, Luminaria Cville, and others. For the last several years as the event has become bigger and bigger, they would now like to be considered for City support, their one major civic celebration of the year. Community Engagement: N/A Alignment with City Council’s Vision and Strategic Plan: This festival supports the City’s Strategic Plan in that it hopes to address issues around racial equity by providing the community with a festival that enhances acculturation of Hispanics in U.S. society, enhances Anglo society appreciation of positive cultural contributions of Latinos to 1 Charlottesville society, and highlights how Latino culture enriches our society as a whole. Recommendation: Staff has prepared a resolution that allocates $2,400 from the general City Festival Support account should Council choose to fund this request. No new money is required since this is coming from already appropriated funds. Budgetary Impact: Staff is recommending, should Council choose to fund this festival, that funding come from the Community Arts and Festival account. Alternatives: Do not provide funding for the festival. Attachments: N/A 2 RESOLUTION Cville Sabroso Festival Funding Request $2,400 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $2,400 is hereby paid from currently appropriated funds in the Community Arts and Festival account in the General Fund to Sin Barreras-Without Barriers, Inc. in support of the Cville Sabroso Festival. $2,400 Fund: 105 Cost Center: 9753005000 3 This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: Resolution Presenter: Brian Daly, Dept. of Parks and Recreation Staff Contacts: Chris Gensic, Dept. of Parks and Recreation Title: V.D.O.T. Recreational Access Funding – McIntire Park Bridge Background: The City has been approved to use Virginia Department of Transportation (V.D.O.T.) Recreational Access funding to construct a trail bridge to support the north-south multi use trail at McIntire Park, which will provide bicycle and pedestrian access into the main portion of the park from Melbourne Road. The estimated project cost is approximately $120,000. V.D.O.T. will fund $60,000 of the project and the City will cover the rest of the cost with the McIntire Park implementation fund. Discussion: Charlottesville Parks and Recreation developed a community supported master plan for the East side of McIntire Park. A major part of the effort to convert the former golf course into a public park area is to provide bicycle and pedestrian access to and through the park. The bridge and trail to be constructed with V.D.O.T. assistance will provide a much needed connection over the tributary of Schenk’s Branch that currently separates the north portion of the park from the south portion of the park Alignment with City Council’s Vision and Strategic Plan: The project supports City Council’s “America’s Healthy City” vision by providing outstanding recreational areas and walking trails, as well as the vision of being a “Connected Community”. It contributes to Goal 3 of the Strategic Plan, for a beautiful and sustainable natural and built environment, and specifically objective 3.3, to provide a variety of transportation and mobility options. Community Engagement: The East McIntire Park Master plan was developed over the course of at least a year with multiple public meetings and opportunities for input, including public hearings, and was approved by City Council. Budgetary Impact: The V.D.O.T. Recreational Access funding will supplement the CIP budget for implementation of the park plan, and save the City $60,000 that can be used to further implement the park plan. Recommendation: Staff recommends approval of the resolution for the V.D.O.T. funding. Alternatives: If the funding is not approved, the entire cost of the bridge and trail will be borne by the City. Attachments: Resolution City of Charlottesville RESOLUTION VDOT Recreational Access Project Endorsement At a regularly scheduled meeting of the Charlottesville City Council held on June 4, 2018, on a motion by _________ seconded by __________, the following resolution was adopted by a vote of __ to __. Whereas, East McIntire Park is owned and is to be developed by the City of Charlottesville as a recreational facility serving the residents of Charlottesville and adjoining localities; and Whereas, the facility is in need of adequate bicycle access; and Whereas, the procedure governing the allocation of recreational access funds as set forth in Section 33.2-1510 of the Code of Virginia requires joint action by the Director of the Department of Conservation and Recreation and the Commonwealth Transportation Board; and Whereas, a statement of policy agreed upon between the said Director and Board approves the use of such funds for the construction of access facilities to publicly-owned recreational or historical areas; and Whereas, the Council has duly adopted a zoning ordinance pursuant to Article 7 (Section 15.2- 2280 et seq), Chapter 22, Title 15.2 of the Code of Virginia; and Whereas, it appears to this Council that all requirements of the law have been met to permit the Director of the Department of Conservation and Recreation to designate McIntire Park as a public recreation area and further permit the Commonwealth Transportation Board to provide funds for access to this public recreation area in accordance with Section 33.2-1510 of the Code of Virginia; and Whereas, the right of way of the proposed bicycle access is provided by the City of Charlottesville at no cost to the Virginia Department of Transportation; and Whereas, the City of Charlottesville hereby guarantees that the necessary environmental analysis, mitigation, and fee simple right of way for this bikeway access project, and utility relocations or adjustments, if necessary, will be provided at no costs to the Virginia Department of Transportation, and Whereas, this Council acknowledges that, pursuant to the provisions of Section 33.2-1510 of the Code of Virginia, this bikeway, once constructed, shall be regulated and maintained by the City of Charlottesville Department of Parks and Recreation; and Whereas, the City of Charlottesville acknowledges that no land disturbance activities may occur within the limits of the proposed access project without the consent of the Department of Transportation as a condition of the use of the Recreational Access Fund. Whereas, the City of Charlottesville hereby guarantees that financing of all ineligible project costs, project costs exceeding the Recreational Access Program project allocation, Recreational Access Program required locality matching funds, if applicable, and all costs exceeding the Recreational Access Program allocation will be provided from sources other than those administered by the Virginia Department of Transportation. Whereas, the City of Charlottesville hereby acknowledges that the Virginia Department of Transportation’s Recreational Access Program may provide up to a maximum of $60,000 for a bikeway access project and requires matching funding up to $15,000 provided by the City of Charlottesville for estimated eligible project costs over $75,000. Now, Therefore, Be It Resolved, that the City Council of Charlottesville hereby requests the Director of the Department of Conservation and Recreation to designate McIntire Park as a public recreational area and to recommend to the Commonwealth Transportation Board that recreational access funds be allocated for a bikeway to serve said recreational area; and Be It Further Resolved, that the Commonwealth Transportation Board is hereby requested to allocate the necessary Recreational Access Program funds to provide a suitable bikeway as hereinbefore described. Be It Further Resolved, that the City Manager and/or his designee(s) be authorized to act on behalf of the City Council to execute any and all documents necessary to secure the maximum amount of funding eligible under the Recreational Access Program. Adopted this 4th day of June, 2018 Charlottesville, Virginia By: ____________________________ Attest CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: May 21, 2018 Action Required: Approval of Homeowner Tax Relief Grant Program Presenter: Todd D. Divers, Commissioner of the Revenue Staff Contacts: Todd D. Divers, Commissioner of the Revenue Title: Homeowner Tax Relief Grant Program – 2018 Background: As part of the FY 2019 Adopted Budget, City Council made several changes to the Homeowner Tax Relief Program, also known as the Charlottesville Housing Affordability Program or CHAP. Attached is an ordinance for Council’s consideration for the Homeowner Tax Relief grant program for low-and moderate-income homeowners for Calendar Year 2018 that is reflective of the changes made as part of the FY 2019 Adopted Budget. The program allows the owners of eligible homeowner-occupied properties grant amounts applied to real estate taxes due on the property for the second half of calendar year 2018. Discussion: Enabling language for the CHAP Program is found in Sec. 50.7 of the City’s Charter, which requires that in determining who are “low and moderate income persons” the City must apply the income guidelines issued by the VHDA for use in its single-family mortgage loan program. Those guidelines also contain limitations on the value of the home in question. Current VHDA guidelines stipulate a maximum income threshold of $90,000 and a maximum home value of $375,000. During this year’s budget discussions, Council made several adjustments to the parameters for the 2018 CHAP Program as follows: 1. Changes to grant values based on income limits CHAP IN PRIOR YEARS Applicant Income $0 - $25,000 $25,001 - $50,000 Grant Amount $525 $375 2018 CHAP Applicant Income $0 - $20,000 $20,001 - $35,000 $35,001 - $50,000 Grant Amount $1,000 $750 $500 2. Changes to home value Maximum value for a qualifying home increased from $365,000 to $375,000 3. Finally, there is also a change regarding those with delinquent taxes. In previous years, homeowners were required to be fully paid by the December 5th billing. Going forward, homeowners will only need to be in an active payment plan as determined by the City Treasurer. Alignment with City Council’s Vision and Strategic Plan: This program aligns with the City’s goal to be an inclusive community of self-sufficient residents and in particular, to increase affordable housing options. Budgetary Impact: Cost of this program is funded with the annual budget appropriation for Fiscal Year 2019 approved by Council. The total budget is $569,500, an increase of $179,500 from FY 2018. Recommendation: Approve proposed ordinance. Attachments: N/A AN ORDINANCE TO ESTABLISH A GRANT PROGRAM TO PROMOTE AND PRESERVE HOMEOWNERSHIP BY LOW- AND MODERATE-INCOME PERSONS WITHIN THE CITY OF CHARLOTTESVILLE WHEREAS, effective July 1, 2006, §50.7 of the Charter of the City of Charlottesville authorizes City Council to make grants and loans of funds to low- or moderate-income persons to aid in the purchase of a dwelling within the City; and WHEREAS, this City Council desires to offer a monetary grant for Fiscal Year 2019, to aid low- and moderate-income citizens with one of the ongoing expenses associated with the purchase of a dwelling, i.e. real estate taxes; and WHEREAS, public funding is available for the proposed grant; NOW, THEREFORE, effective July 1, 2018 and for calendar year 2018, the Charlottesville City Council hereby ordains: Grant—provided. (a)There is hereby provided to any natural person, at such person’s election, a grant in aid of payment of the taxes owed for the taxable year on real property in the city which is owned, in whole or in part, and is occupied by such person as his or her sole dwelling. The grant provided within this section shall be subject to the restrictions, limitations and conditions prescribed herein following. (b)If, after audit and investigation, the Commissioner of Revenue determines that an applicant is eligible for a grant, the Commissioner of Revenue shall so certify to the City Treasurer, who shall implement the grant as a prepayment on the applicant’s real estate tax bill due on December 5, 2018. (c)The amount of each grant made pursuant to this ordinance shall be $1,000 for taxpayers with a household income of $0-20,000, $750 for taxpayers with a household income of $20,001- $35,000, and $500 for taxpayers with a household income from $35,001-$50,000, to be applied against the amount of the real estate tax bill due on December 5, 2018. Any remaining grant amount in excess of what is owed on the taxpayer’s second half bill, but not to exceed the entire annual tax due, shall be remitted to the taxpayer. Definitions. The following words and phrases shall, for the purposes of this division, have the following respective meanings, except where the context clearly indicates a different meaning: (1)Applicant means any natural person who applies for a grant authorized by this ordinance. (2)Dwelling means a residential building,or portion such building, which is owned, at least in part, by an applicant, which is the sole residence of the applicant and which is a part of the real estate for which a grant is sought pursuant to this ordinance. (3)Grant means a monetary grant in aid of payment of taxes owed for the taxable year, as provided by this ordinance. (4)Spouse means the husband or wife of any applicant who resides in the applicant’s dwelling. (5)Real estate means a city tax map parcel containing a dwelling that is the subject of a grant application made pursuant to this ordinance. (6)Taxes owed for the current tax year refers to the amount of real estate taxes levied on the dwelling for the taxable year. (7)Taxable year means the calendar year beginning January 1, 2018. (8)Household income means (i) the adjusted gross income, as shown on the federal income tax return as of December 31 of the calendar year immediately preceding the taxable year, or (ii) for applicants for whom no federal tax return is required to be filed, the income for the calendar year immediately preceding the taxable year: of the applicant, of the applicant’s spouse, and of any other person who is an owner of and resides in the applicant’s dwelling. The Commissioner of Revenue shall establish the household income of persons for whom no federal tax return is required through documentation satisfactory for audit purposes. Eligibility and restrictions, generally. A grant awarded pursuant to this ordinance shall be subject to the following restrictions and conditions: (1)The household income of the applicant shall not exceed $50,000. (2)The assessed value of the real estate owned by the applicant shall not exceed $375,000. (3)The applicant shall own an interest in the real estate that is the subject of the application (either personally or by virtue of the applicant’s status as a beneficiary or trustee of a trust of which the real estate is an asset) and the applicant shall not own an interest in any other real estate (either personally or by virtue of the applicant’s status as a beneficiary or trustee of a trust of which the real estate is an asset). (4)As of January 1 of the taxable year and on the date a grant application is submitted, the applicant must occupy the real estate for which the grant is sought as his or her sole residence and must intend to occupy the real estate throughout the remainder of the taxable year. An applicant who is residing in a hospital, nursing home, convalescent home or other facility for physical or mental care shall be deemed to meet this condition so long as the real estate is not being used by or leased to another for consideration. (5)An applicant for a grant provided under this ordinance shall not participate in the real estate tax exemption or deferral program provided under Chapter 30, Article IV of the City Code (Real Estate Tax Relief for the Elderly and Disabled Persons) for the taxable year, and no grant shall be applied to real estate taxes on property subject to such program. (6)An applicant for a grant provided under this division who is delinquent on any portion of the real estate taxes due on a property to which the grant is to be applied, must be in good standing on a payment plan with the Treasurer’s office with the aim of paying off said delinquency. (7)Only one grant shall be made per household. Procedure for application. (a)Between July 1 and September 1 of the taxable year, an applicant for a grant under this ordinance shall file with the Commissioner of Revenue, in such manner as the Commissioner shall prescribe and on forms to be supplied by the city, the following information: (1)the name of the applicant, the name of the applicant’s spouse, and the name of any other person who is an owner of and resides in the dwelling. (2)the address of the real estate for which the grant is sought; (3) the household income; (4)such additional information as the Commissioner of Revenue reasonably determines to be necessary to determine eligibility for a grant pursuant to this ordinance. (b)Changes in household income, ownership of property or other eligibility factors occurring after September 1, but before the end of the taxable year, shall not affect a grant once certified by the Commissioner of the Revenue, in which case such certified grant shall be applied to the subject real estate. (c)Any person who willfully makes any false statement in applying for a grant under this division shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $25 nor more than $500 for each offense. This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: May 21, 2018 Action Requested: Public Hearing and Ordinance (1st of 2 readings) Presenter: Brian Haluska, Principal Planner, NDS Staff Contacts: Lisa Robertson, Chief Deputy City Attorney Title: Conveyance of Water Street Right of Way (64 sf) and Temporary Construction, Grading and Access Easement for Charlottesville Technology Center at 230 West Main Street Background: Brands Hatch LLC, the Owner of properties at 230 West Main Street (TMP 28-1), the former Main Street Arena (Ice Park), 215 W. Water Street (TMP 28-9), and 218-220 West Main Street (TMP 28- 91) wants to exchange 430 square feet of TMP 28-1 on Water Street for 64 square feet of the Water Street right-of-way in order to facilitate the construction of a new building on the site. The final site plan calls for the three (3) parcels of land to be combined into one parcel. Attached is a drawing dated May 3, 2018 showing the right-of-way to be conveyed (in green) and the land the City would acquire (in red) to add to the Water Street right of way. The Owner is also requesting a temporary construction, grading and access easement from the City on the mall side of the property (shaded in gray) to perform grading as required by the site plan, and to access and use the easeme4nt area for construction equipment and materials during the construction of the building. The construction, grading and access easement would expire upon completion of the grading work. Discussion: The Owner’s attorney, Valerie Long, and the Owner’s engineering team have been working with Brian Haluska and Marty Silman, City Engineer, on the proposed site plan for the project. There is an area on the southeast corner of the building on Water Street where the property line is irregular, making it challenging to construct a building that also meets streetwall requirements. The exchange of land would “square off” the property line for the project. The Owner is also asking the City to convey a temporary construction, grading and access easement to allow the required grading of a portion of the site and to provide vehicular access for construction vehicles. This easement will automatically expire as soon as the construction activity is completed. This easement is consistent with the site plan under review by the City. In accordance with the City’s Sale of City-Owned Property policy, the proposal was submitted to the City Assessor, NDS staff, Public Works, Public Utilities, and Parks and Recreation for review and comment. Engineering – The City Engineer had no substantive issues with conveyance of the 64 square feet of Water Street right of way since it would have minimal impact on the width of Water Street. Traffic Engineer - Brennan Duncan stated there are no traffic issues with the land exchange or granting the construction easement. The transit bus lane and bus stop will need to be reworked, but there are no traffic concerns or cost to the City for this work. Utilities – Jason McIlwee confirmed there are no utilities in the land to be exchanged, but there is a gas line nearby and they cannot build within 10’ of the gas line. He recommends that special attention be given to the location of the gas line when they begin excavation work on the underground parking garage. The Owner’s engineers are aware of the concern and have addressed it in the site plan. Assessor – The assessed value of the right of way owned by City is $6,000; the assessed value of the land owned by Brands Hatch LLC is $40,300. The Owner is not asking for any monetary compensation. Zoning/Planning – Brian Haluska confirmed the property is currently zoned Downtown Corridor with Architectural Design Control and Urban Corridor Parking Overlays. The Owner’s property is being considered for site plan approval. The proposed use is consistent with the City Comprehensive Plan and other applicable land use regulations, and the Owner will not accrue any additional development rights in the event that the Water Street right of way land is conveyed by the City to the Owner. Staff had no objection to conveyance of the temporary construction easement to the Owner. Alignment with City Council’s Vision and Strategic Plan: Approval of the exchange of land and conveyance of the temporary construction easement supports Economic Sustainability of the City Vision, and is consistent with Goal 4.3 (Grow and Retain Viable Businesses) of the Strategic Plan. Community Engagement: A public hearing is being held to give the public an opportunity to comment on the conveyance of City land and the easement. Notice of the public hearing was advertised as required under Virginia Code Sec. 15.2-2272. Budgetary Impact: None. Recommendation: Staff recommends approval of the Ordinance. The City will acquire 430 square feet of private land to expand the Water Street right of way, while losing only 64 square feet of public right of way that is not needed for sidewalk or street right of way in that location. Alternatives: The temporary construction easement is necessary for compliance with the site plan for this project. If the conveyance of land is not approved, the Owner will need to revise the design of the new building. Attachments: Request Letter Drawing Showing Land to be Exchanged and Grading Easement (dated 5/3/2018) Assessor’s Valuation Letter Proposed Ordinance W D S D W D W S S W OMNI HOTEL TEMPORARY CONSTRUCTION, GRADING & ACCESS EASEMENT VIOLET CROWN THEATER 2ND STREET T TEMPORARY CONSTRUCTION, GRADING & L ACCESS EASEMENT UT 64 SF REQUESTED FROM CITY 430 SF GIVEN TO CITY FOR SIDEWALK 5.7' PROPOSED BUILDING IS ±10.4' EXPANSION G FROM EXISTING GAS LINE. 4' W G G D D OHU G S SAN S SAN S OHU MODIFIED SIDEWALK G W G G G W W 10.4' WATER STREET ALONG BUS LANE W D G W D W W U W D S OH W HU O CHARLOTTESVILLE TECHNOLOGY CENTER SCALE 1"=30' 0 30' 60' BOUNDARY LINE ADJUSTMENT & TEMPORARY CONSTRUCTION, GRADING & ACCESS EASEMENT EXHIBIT- 5/3/18 AN ORDINANCE AUTHORIZING THE EXCHANGE OF A PORTION OF THE WATER STREET RIGHT-OF-WAY FOR PARCEL OF LAND OWNED BY BRANDS HATCH, LLC ON WATER STREET WHEREAS, Brands Hatch, LLC (“Owner”) has submitted a site plan for a development project known as the Charlottesville Technology Center, encompassing three (3) properties: (i) 230 West Main Street (former Main Street Arena/Ice Park), designated as Parcel 1 on City Real Estate Tax Map 28; (ii) 218-220 West Main Street, designated as Parcel 91 on City Real Estate Tax Map 28; and (iii) 215 West Water Street, designated as Parcel 9 on City Real Estate Tax Map 28 (together, the “Property”); and WHEREAS, the Owner proposes an exchange of land with the City in order to facilitate the construction of a new building and underground parking garage on the Property in accordance with the site plan submitted to Neighborhood Development Services; and WHEREAS, the Owner proposes to dedicate a narrow strip of land from Owner’s Property (430 square feet adjacent to the Water Street sidewalk) in exchange for acquiring from the City a small parcel of land (64 square feet that is part of the Water Street right of way) and a temporary construction, grading and access easement, as shown on a drawing dated 5/3/2018 by the Timmons Group (“Exhibit Drawing”); and WHEREAS, the site plan also requires significant grading activity for the project around the northern and western boundaries of the Property, requiring a temporary construction, grading and access easement from the City for grading activity and vehicular access to the construction site (shown on the Exhibit Drawing shaded in gray); and WHEREAS, the conveyance of the City-owned right-of-way will promote certain elements of City Council’s Strategic Plan (Grow and Retain Viable Businesses); and WHEREAS, in accordance with Virginia Code Section 15.2-2272, a public hearing was held to give the public an opportunity to comment on the proposed conveyance of the City right- of-way; and, WHEREAS, the Departments of Neighborhood Development Services, Utilities Parks and Recreation, and Public Works were consulted and have no objection thereto; now, therefore, BE IT ORDAINED by the Council for the City of Charlottesville, Virginia that the Mayor is authorized to execute a Deed of Exchange and Temporary Construction, Grading and Access Easement, in form approved by the City Attorney, to convey the above-described portion of right-of-way (64 square foot parcel of land) to Brands Hatch, LLC, and a temporary construction, grading and access easement, which shall expire upon completion of the construction on the Property, and to accept on behalf of the City the above-described land (430 square foot parcel of land) to be dedicated as public right-of-way. The City Attorney is hereby authorized to take whatever steps are necessary to effect the closing of said property exchange and conveyance of the temporary construction, grading and access easement. This page intentionally left blank. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Requested: Public Hearing and First Reading of Ordinance Presenter: Lisa A. Robertson, Acting City Attorney Staff Contacts: Matthew Alfele, NDS Planner Title: Closing of Portion of Alley off Dice Street Background: The Trustees of the Bethel Church of God in Christ, represented by Pastor William Ward, owner of properties at 621 Dice Street and 315 7th Street, SW, and Ms. Rosemaria Bell, owner of property at 313 7th Street, SW, have petitioned the City to close an unaccepted alley adjoining these properties. The subject 12’ wide alley was created in 1923 on a subdivision plat of record in the Charlottesville Clerk’s Office in Deed Book 44, page 308. The subdivision plat was amended in 1926 (Deed Book 53, Page 487) to add several more lots but the boundaries of the alley did not change. In order to ensure clear title to the right-of-way, the owners are seeking adoption of a formal ordinance by City Council evidencing the vacation of any public interest in the subject alley. Bethel Church has one building at 621 Dice Street and another building at 315 7th Street, SW and the alley is between the two buildings. The Church would like to connect their two buildings to provide easier access for the senior members of its congregation, and for people with medical and physical challenges. Discussion: There are no public utilities located in this alley. Closing the alley will offer the adjoining property owners clear title to the center line of the closed portion, solving the access issue for Bethel Church, and adding some land to Ms. Bell’s property. The alley is not accessible by vehicle and will not impede or alter access to any other lot owners in the subdivision. Bethel Church members have been mowing the grass in the alley for many years. The adopted City Council policy for the closing and vacating of streets and alleys states that City Council should consider the following in making their decision as to whether a particular street or alley should be closed: 1. Will vacating the street or alley impede any person’s access to his property, or otherwise cause irreparable damage to the owner of any lot shown on the original subdivision plat? The requested alley vacation will not impede access to any parcel, nor result in any parcel becoming “landlocked”. 2. Are there any public utilities located in the area to be vacated? There are no public utilities located in the subject alley. 3. Will vacation of the street or alley result in an adverse impact on traffic on nearby public streets, or result in undesirable circulation conditions for vehicular movements in and through the subdivision? Since the subject alley has never been accepted into the City street system for vehicular travel, there will be no adverse impact on traffic as a result of the alley vacation. Alignment with City Council’s Vision and Strategic Plan: Not applicable. Community Engagement: A public hearing is being held, and has been advertised as required by law. A sign was posted in the alley to further notify the public about the public hearing. Budgetary Impact: None. Recommendation: Staff recommends approval of the ordinance. Attachments: Request Letter and Petition; Exhibit Drawing; Tax Map Proposed Ordinance to Close a Portion of an Alley off Dice Street AN ORDINANCE CLOSING, VACATING AND DISCONTINUING A PORTION OF A 12’ WIDE ALLEY OFF DICE STREET NEAR 7TH STREET, S.W. WHEREAS, Bethel Church of God in Christ, owner of properties at 621 Dice Street and 315 7th Street, S.W., and Ms. Rosemaria Bell, owner of property at 313 7th Street, S.W., initiated a petition seeking to close a portion of the 12’ wide alley adjoining their properties (approximately 67 feet in length from its origin at Dice Street), hereinafter “Subject Right of Way”; and, WHEREAS, the Subject Right of Way was initially platted in 1923 and again in 1926 as part of a small 10 lot subdivision, and was never accepted by the City as part of the City’s public street system; and WHEREAS, there are no public utility lines located in the Subject Right of Way; and WHEREAS, following notice to the public pursuant to Virginia Code §15.2-2272, a public hearing by the City Council was held on June 4, 2018, and comments from City staff and the public were made and heard; and, WHEREAS, after consideration of the factors set forth within the City Street Closing Policy, adopted by Council on February 7, 2005, this Council finds and determines that the petitioner’s request should be granted. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Charlottesville, Virginia that the City hereby closes, vacates and discontinues the Right-of-Way described as follows: The portion of a 12’ wide alley off Dice Street, running a distance of approximately 67 feet, adjoining City Tax Map Parcels 300028000, 300029000, and 300030000, shown on a subdivision plat, as amended, of record in the Charlottesville Circuit Court Clerk’s Office in Deed Book 53, Page 487. BE IT FURTHER ORDAINED that unless an appeal from Council’s enactment of this ordinance is made to the Charlottesville Circuit Court within thirty (30) days of the date of adoption, the Clerk of the Council shall send a certified copy of this ordinance to the Clerk of the Circuit Court for recordation in the current street closing book. CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Requested: Public Hearing for Utility Rates, 1st of 2 Readings of Ordinance Presenter: Chris Cullinan, Director of Finance Lauren Hildebrand, Director of Utilities Staff Contacts: Chris Cullinan, Director of Finance Lauren Hildebrand, Director of Utilities Title: Proposed Utility Rates for FY2019 Background: The City of Charlottesville owns and operates public utilities for water, wastewater, natural gas, and stormwater. Utility services are essential on a daily basis to us as both individuals and a community. Thoughtful, deliberate planning and sufficient financial resources ensure efficient and orderly maintenance and operation of these systems. This need for investment in our utility systems is not without cost, but our rates must also be balanced with the need for continued affordability for our customers. Each of the City’s utilities is accounted for separately as enterprise funds. Enterprise funds are operated on a self-supporting basis, meaning that each utility is required to cover the full costs of providing its service. The City’s utilities are funded solely through their rates and related fees and charges and are not subsidized with general tax revenues. The utilities do not operate on a for-profit basis. As such, utility rates are calculated annually to bring each fund to a break-even point; however, variable factors, such as weather, usage, and number of customers may result in an unexpected and unanticipated operating surplus or deficit during any given year. If so, the surpluses or deficits are accounted for and remain within their respective utility fund. Discussion: Staff is making three recommendations for utility rates for FY’19: 1. A three year transition plan for UVA from the 1981 Water Agreement to City rates for water and sewer. 2. Changes to the Monthly Service Charge for water and sewer. 3. Proposed utility rates for water, sewer, natural gas, and stormwater. Each of these recommendations is discussed in more detail below. 1. Three year transition plan for UVA from 1981 Water Agreement The 1981 Water and Sewer Agreement between the City and UVA includes the Rivanna Water and Sewer Authority (RWSA) lease for the Observatory Water Treatment Plant and formulas for water and sewer rates UVA pays the City. The 1981 Agreement is in the process of being replaced. RWSA is renegotiating the lease for Observatory Water Treatment Plant. The February 2018 agreement signed as part of Brandon Avenue discussions stated that all UVA facilities brought online or modified after 1/1/18 will pay full City rates. The February 2018 agreement also states UVA and the City will establish a plan for transitioning the water and wastewater rates charged to UVA, for University’s buildings/ facilities constructed and occupied prior to 1/1/2018, to an updated rate structure supported by a professional water rate study. The City has completed the cost of service study. The City has a proposed transition plan over the next three fiscal years from the 1981 Agreement to UVA paying City water and sewer rates. In the first fiscal year (starting July 1, 2018), the University will pay 25% of the difference between the 1981 Agreement and the City rates. In the second fiscal year (July 1, 2019), the University will pay 75% of the difference between the 1981 Agreement and the City rates. In the third fiscal year (July 1, 2020), the University will pay 100% of the City rate. 2. Proposed Changes to the Monthly Service Charge for Water and Sewer For several decades, the City has assessed a monthly service charge for water, sewer, and natural gas to recoup the fixed costs of providing utility services such as customer service, billing, and meter services. The monthly service charge for water is currently $4.00 per month per account. The monthly service charge for water last changed from $1.25 to $4.00 in 2004. The proposed monthly service charge for water is changing in two ways:  The dollar amount is increasing; and  The charge will vary by the size of a customer’s water meter. The proposed monthly service charge reflects a change in how the water utility funds its operation and infrastructure. The proposed changes will not result in net additional revenue to the water utility; rather, the revenues collected from customers will shift from the usage rate portion of their bill to the monthly service charge portion. The reasons for this change include the following:  Improve revenue stability to ensure reliability of service. Like many utilities across the country, the City is using less water due to conservation efforts. While this is beneficial to the environment, the City is highly dependent on revenues generated by water consumption. The City’s fixed costs for providing safe, reliable, and convenient water service (including infrastructure) continue to increase. Coupled together, these trends create financial challenges for utilities.  Improve equity and distribution of costs. Before a customer uses the first drop of water, the City has several fixed costs to provide water service (customer service, billing, meter services, infrastructure). Some of these fixed costs are the same per customer (customer service, billing) while others vary by the size of water meter (meter services, infrastructure).  Modernize and follow industry best practices. As noted above, utilities across the country are working to reconcile the contradictory trends of declining revenues from lower water production and increasing fixed costs. Nationally, utilities are shifting their revenue structures to a higher proportion of fixed fees (some as high as 30%). With the proposed change, the City would be collecting about 11% from fixed fees.  Customers will still be able to control the vast majority of their water bill through their usage. Customers currently have control of 84% of their bill based on their water usage. Under the proposed change, customers will have control over 81% of their bill based on the average customer’s monthly water usage. For the residential water and wastewater customers (94% of all City water customers) the proposed increase totals $2.00 per month (increasing from $4.00 for water to $5.00 for water and $4.00 for wastewater to $5.00 for wastewater). The proposed changes for all customers’ monthly service charges for water and wastewater are as follows: Combined Water and Sewer Monthly Service Charges Water Meter Size Current Proposed $ Change % Change (in inches) 1 5/8 and 3/4 $8.00 $10.00 $2.00 25% 1 $8.00 $25.00 $17.00 213% 1 1/2 $8.00 $50.00 $42.00 525% 2 $8.00 $80.00 $72.00 900% 3 $8.00 $160.00 $152.00 1900% 4 $8.00 $250.00 $242.00 3025% 6 $8.00 $500.00 $492.00 6150% 14 $8.00 $3,274.80 $3,266.80 40835% (1) Approximately 94% of City water customer have a 5/8 or 3/4 inch water meter. 3. Proposed Utility Rates for FY’19 The budgets for each of the utilities have been thoroughly examined for opportunities to minimize costs without sacrificing service. Based on the revenue requirements needed to operate and maintain each utility and the above recommendations, the City is proposing the following rates in the water, wastewater, and gas utility:  $55.95/1,000 cubic feet (cf) of water,  $78.57/1,000 cf of wastewater, and;  $72.96/8,000 cf of natural gas. For the stormwater utility, there are no proposed changes to the current fees. Impact on Average Customer Utility customers continue to conserve water and natural gas, which is both good for the environment and for their utility bill. The average residential water customer is using 400 cubic feet (cf) per month. Similarly, the average residential gas customer is using 4,600 cf. Based on these usage figures and the proposed utility rates, the average residential customer is projected to spend the following per month: Current (based on Proposed rates adopted $ Change % Change (Effective 7/1/18) 7/1/17) Water $25.73 $27.38 $1.65 6.42% Sewer $33.93 $36.43 $2.50 7.36% Natural Gas $47.28 $47.81 $0.52 1.11% TOTAL $106.95 $111.62 $4.67 4.37% For City residential customers who receive water, wastewater, and natural gas (approximately 87% of City residents), their total utility bill is projected to rise by $4.67 per month, or 4.37%. For residential customers who receive just water and wastewater service, their utility bill will increase by $4.15 per month, or 6.96%. The proposed rate report can be found at www.charlottesville.org Administrative Change to Utilities Ordinance In addition, an amendment is proposed to Section 31-3, changing the designation to the Director of Utilities rather than the Director of Public Works, for review of waiver requests to allow structures within the 10-foot setback from water, storm or sanitary sewer lines. The current code language does not take into account that Utilities is now its own department. Alignment with City Council’s Vision and Strategic Plan: City Utilities operations supports City Council’s “A Green City” vision. It contributes to Objective 3.2 of the Strategic Plan, to provide reliable and high quality infrastructure and Objective 3.4, be responsible stewards of natural resources. Community Engagement: The public hearing is being held at the Council meeting, June 4, 2018, to establish the rates for City utility services (water, sanitary sewer and natural gas). These rates would be effective July 1, 2018, if approved by Council June 18, 2018. The notice for the public hearing was advertised in the newspaper May 21, 2018 and May 28, 2018. Budgetary Impact: The approval of the utility rates has no impact of the General Fund. The Utility Funds (water, wastewater, and natural gas) are self-sustaining enterprise funds that are supported by the revenues from customers’ usages. Recommendation: Staff recommends approval of the proposed rates. Alternatives: Maintaining existing rates for water and wastewater would result in a loss within the Water and Wastewater Funds. Keeping FY2018 gas rates will also result in a loss within the gas utility. This would deplete available fund balances for water, wastewater and natural gas, which would violate the City’s long term financial policies by not meet the working capital requirements. If the utilities are not self-sustaining, the funds would either require subsidies from other City funds to maintain levels-of-service or reduced reliability and performance of the utility systems. Attachments: Ordinance At a Glance Utilities Operations Overview AN ORDINANCE AMENDING AND REORDAINING CHAPTER 31 (UTILITIES) OF THE CODE OF THE CITY OF CHARLOTTESVILLE, 1990, AS AMENDED, TO ESTABLISH NEW UTILITY RATES AND SERVICE FEES FOR CITY GAS, WATER AND SANITARY SEWER. BE IT ORDAINED by the Council of the City of Charlottesville, Virginia, that: 1. Sections 31-56, 31-57, 31-60, 31-61, 31-62, 31-153, 31-156 and 31-158 of Chapter 31, of the Code of the City of Charlottesville, 1990, as amended, are hereby amended and reordained as follows: CHAPTER 31. UTILITIES ARTICLE II. GAS DIVISION 2. TYPES OF SERVICE; SERVICE CHARGES Sec. 31-56. Rates - Generally. The firm service gas rates based on monthly meter readings shall be as follows: Basic Monthly Service Charge $ 10.00 First 3,000 cubic feet, per 1,000 cubic feet $8.2781 $8.3944 Next 3,000 cubic feet, per 1,000 cubic feet $7.7814 $7.8907 Next 144,000 cubic feet, per 1,000 cubic feet $6.9536 $7.0513 All over 150,000 cubic feet, per 1,000 cubic feet $6.7880 $6.8834 Sec. 31-57. Same--Summer air conditioning. (a) Gas service at the rate specified in this paragraph (“air conditioning rate”) shall be available to customers who request such service in writing and who have installed and use air conditioning equipment operated by natural gas as the principal source of energy. The air conditioning rate will be $7.3171 $7.3471 per one thousand (1,000) cubic feet of gas used per month. (b) The director of finance may, when it is impracticable to install a separate meter for air conditioning equipment, permit the use of one (1) meter for all gas delivered to the customer, in which instance the director of finance shall estimate the amount of gas for uses other than air conditioning and shall bill for such gas at the rates provided in applicable sections of this division. ... Sec. 31-60. Interruptible sales service (IS). 1 (a) Conditions. . . . (b) Customer's agreement as to discontinuance of service. . . . (c) Basic monthly service charge. The basic monthly charge per meter for interruptible sales service (“IS gas”) shall be sixty dollars ($60.00). (d) Rate. For all gas consumed by interruptible customers the rate shall be $5.8319 $6.1065 per one thousand (1,000) cubic feet for the first six hundred thousand (600,000) cubic feet, and $4.5763 $5.1210 per one thousand (1,000) cubic feet for all volumes over six hundred thousand (600,000) cubic feet. (e) Annual Minimum Quantity. Interruptible rate customers shall be obligated to take or pay for a minimum quantity of one million two hundred thousand (1,200,000) cubic feet of gas annually. Each year, as of June 30, the director of finance shall calculate the total consumption of each interruptible customer for the preceding twelve (12) monthly billing periods, and shall bill any customer that has consumed less than the minimum quantity for the deficient amount at the rate of $4.5763 $6.1065 per one thousand (1,000) cubic feet. Any new customer shall be required to enter into a service agreement with the City prior to the start of service. If an interruptible customer terminates service the annual minimum requirement shall be prorated on the basis of one hundred thousand (100,000) cubic feet per month for each month the customer has received service since the last June 30 adjustment. (f) Contract required. . . . Section 31-61. Interruptible Transportation Service (TS). (a) Generally. ... (b) Rates. The rates for interruptible transportation service (“TS gas”) shall be as follows: (1) $3.6347 per decatherm for a combined IS and TS customer, and (2) (1) $3.2827 $3.4853 per decatherm for a customer receiving only TS gas, and (3) (2) $1.9569 $2.0379 per decatherm, for customers who transport 35,000 or more decatherms per month (“large volume transportation customers”), regardless of whether such large volume transportation customer receives only TS gas, or also receives IS service. (c) Basic Monthly Service Charges. … (d) Special terms and conditions. … 2 (e) Extension of facilities. . . . (f) Billing month. . . . (g) Lost and unaccounted-for gas. . . . (h) Combined IS and TS customer using more than provided or scheduled by customer.... (i) TS Customer providing more gas, or less gas, than customer’s usage. … (j) Other terms and conditions. . . . Section 31-62. Purchased gas adjustment. In computing gas customer billings, the basic rate charges established under sections 31-56, 31-57, 31-60 and 31-61 shall be adjusted to reflect increases and decreases in the cost of gas supplied to the city. Such increases or decreases shall be computed as follows: (1) For the purpose of computations herein, the costs and charges for determining the base unit costs of gas are: a. Pipeline tariffs; b. Contract quantities; and c. Costs of natural gas, in effect or proposed as of March 1, 2016 2017. (2) Such base unit costs are $4.412 $4.4128 per one thousand (1,000) cubic feet for firm gas service and $3.1235 $ 2.7710 per one thousand (1,000) cubic feet for interruptible gas service. (3) In the event of any changes in pipeline tariffs, contract quantities or costs of scheduled natural gas, the unit costs shall be recomputed on the basis of such change in accordance with procedures approved by the city manager. The difference between the unit costs so computed and the base unit costs shall represent the purchased gas adjustment to be applied to all customer bills issued beginning the first billing month after each such change. ARTICLE IV. WATER AND SEWER SERVICE CHARGES ... Sec. 31-153. Water rates generally. (a) Water rates shall be as follows: May-September October-April (1) Monthly service charge. $4.00 $4.00 3 Meter Size (inches) Fee 5/8 $ 5.00 3/4 5.00 1 12.50 1 1/2 25.00 2 40.00 3 80.00 4 125.00 6 250.00 14 1,637.50 May-September October-April (2) Metered water consumption, per 1,000 cu. ft . $62.78 $64.66 $48.29 $49.74 (b) This section shall not apply to special contracts for the consumption of water which have been authorized by the city council. ... Sec. 31-156. Sewer service charges generally. (a) Any person having a connection directly or indirectly, to the city sewer system shall pay therefor a monthly charge as follows: (1) A basic monthly service charge of four dollars ($4.00). Monthly service charge Meter Size (inches) Fee 5/8 $ 5.00 3/4 5.00 1 12.50 1 1/2 25.00 2 40.00 3 80.00 4 125.00 6 250.00 14 1,637.50 (2) An additional charge of seventy four dollars and eighty three cents ($74.83) seventy eight dollars and fifty seven cents ($78.57) per one thousand (1,000) cubic feet, of metered water consumption. (b) Any water customer not discharging the entire volume of water used into the city's sanitary sewer system shall be allowed a reduction in the charges imposed under this section, 4 provided such person installs, at his expense, a separate, City-approved water connection to record water which will not reach the City sewer system. The cost and other terms of City Code section 31-102 shall apply. For customers with monthly water consumption in excess of thirty thousand (30,000) cubic feet, where the director of finance considers the installation of a separate meter to be impracticable, the director may establish a formula which will be calculated to require such person to pay the sewer charge only on that part of the water used by such person which ultimately reaches the city sewers. Sec. 31-3. Construction of buildings near mains. (a) Buildings shall not be constructed within ten (10) feet of any storm or sanitary sewer, water or gas main. For purposes of this section, "main" shall include all structures that are an integral part of the utility system, such as box culverts and manholes. (b) The director of public works utilities may grant written waivers of the restriction imposed by this section with respect to water, storm or sanitary sewer mains, upon a finding that the plans for a proposed building provide adequate safety measures to protect the main during and after construction and adequate access for the city's maintenance, repair or replacement of the main. When such a written waiver is granted, the director of public works utilities may require that the private property owner enter into a recordable agreement promising to maintain that portion of the utility main under the owner's building or within the ten-foot setback. 2. The foregoing amendments shall become effective July 1, 20178. 5 At A Glance L O T T E SV FY2019 CH A R I LL City of Charlottesville E Utility Rate Report 62- -VI R G I NIA - 1 7 The following material provides a brief summary of the rate and fee recommendations for water, wastewater, and natural gas for FY2019. All rates will go into effect July 1, 2018. For a thorough explanation and details of the recommendations please consult the complete Proposed Utility Rate Report FY2019. The table below illustrates the impact on an average City residential customer using 400 cubic feet (cf) of water and wastewater and 4,600 cf of gas per month based on utility rates and charges adopted July 1, 2017 and proposed rates and charges. Current Proposed Based on rates Effective 7/1/18 Change Percent adopted 7/1/17 Water $25.73 $27.38 $ 1.65 6.42% Wastewater $33.93 $36.43 $2.50 7.36% Gas $47.28 $47.81 $0.52 1.11% Total $106.95 $111.62 $4.67 4.37% Specific changes to each utility’s rate are discussed in this report. Water Rates Revenue Requirements to operate and maintain the City’s Water System The chart below depicts the expenses that impact the water rate. Usage Rate Water rates are proposed to increase by $1.63 per 1,000 cf based on the amount of water used which is a 3% increase. Monthly Service Charge The monthly service charge for water is currently $4.00 per month per account. For several decades, the City has assessed a monthly service charge for water, sewer, and natural gas to recoup the fixed costs of providing utility services such as customer service, billing, and meter services. The monthly service charge for water last changed from $1.25 to $4.00 in 2004. The proposed monthly service charge for water is changing in two ways: • The dollar amount is increasing. • The charge will vary by the size of a customer’s water meter. For the residential water customers (94% of all City water customers) the proposed change is $1.00 per month (increasing from $4.00 to $5.00). The proposed monthly service charges for water are as follows: Water Meter Size Current Proposed $ Change % Change (in inches) 5/8 and 3/41 $ 4.00 $ 5.00 $ 1.00 25 % 1 $ 4.00 $ 12.50 $ 8.50 213 % 1 1/2 $ 4.00 $ 25.00 $ 21.00 525 % 2 $ 4.00 $ 40.00 $ 36.00 900 % 3 $ 4.00 $ 80.00 $ 76.00 1,900 % 4 $ 4.00 $ 125.00 $ 121.00 3,025 % 6 $ 4.00 $ 250.00 $ 246.00 6,150 % 14 $ 4.00 $ 1, 637.40 $ 1,633.40 40,835% ( ) Approximately 94% of City water customers have a 5/8 or 3/4 inch water meter. 1 The proposed monthly service charge reflects a change in how the water utility funds its operation and infrastructure. The proposed changes will not result in net additional revenue to the water utility. The revenues collected from customers will shift from the usage rate portion of their bill to the monthly service charge portion. The reasons for the change include the following: Improve revenue stability to ensure reliability of service. Like many utilities across the country, the City is using less water due to conservation efforts. While this is beneficial to the environment, the City is highly dependent on revenues generated by water consumption. The City’s fixed costs for providing safe, reliable, and convenient water service (including infrastructure) continue to increase. Coupled together, these trends create financial challenges for utilities. Improve equity and distribution of costs. Before a customer uses the first drop of water, the City has several fixed costs to provide water service (customer service, billing, meter services, infrastructure). Some of these fixed costs are the same per customer (customer service, billing) while others vary by the size of the water meter (meter services, infrastructure). City of Charlottesville Utility Rate Report FY 2019 02 Modernize and follow industry best practices. As noted above, utilities across the country are working to reconcile the contradictory trends of declining revenues from lower water production and increasing fixed costs. Nationally, utilities are shifting their revenue structures to a higher proportion of fixed fees (some as high as 30%). With the proposed change, the City would be collecting about 11% from fixed fees. Customers will still be able to control the vast majority of their water bill through their usage. Customers currently have control of 84% of their bill based on their water usage. Under the proposed change, customers will have control over 81% of their bill based on the average customer’s monthly water usage. The table below shows the monthly change for the number of water customers with different meter sizes. Water Meter Size # Customers $ Change/month (in inches) 5/8 and 3/4 13,514 $ 1.00 1 273 $ 8.50 1 1/2 232 $ 21.00 2 235 $ 36.00 3 39 $ 76.00 4 15 $ 121.00 6 1 $ 246.00 14 1 $ 1,633.40 Total 14,310 Impact on the Customer In addition to a change to the usage rate and monthly service charge, the impact on a customer’s bill will depend on how much water is consumed. The average single-family household uses 400 cf/month (2,992 gallons/month; approximately 100 gallons/day). To the extent an individual customer’s usage differs from the average will determine the impact of the proposed rate on their bill. The table below shows the monthly impact on water customers at different amounts of usage. Current Proposed Current Proposed Water Composite Water Usage Composite Water Usage $ % Used/Month (cf) Water Charge/month Water Charge/month Change Change Rate/1,000 cf Rate/1,000 cf Minimal User (10th Percentile) 140 $54.32 $7.60 $55.95 $7.83 $0.23 3.00% Small User (25th Percentile) 250 $54.32 $13.58 $55.95 $13.99 $0.41 3.00% Median User (50th Percentile) 400 $54.32 $21.73 $55.95 $22.38 $0.65 3.00% Large User (75th Percentile) 610 $54.32 $33.14 $55.95 $34.13 $0.99 3.00% High Volume User (90th Percentile) 880 $54.32 $47.80 $55.95 $49.24 $1.43 3.00% City of Charlottesville Utility Rate Report FY 2019 03 Wastewater Rates Revenue Requirements to operate and maintain the City’s Wastewater System The chart below depicts the expenses that impact the wastewater rate. Usage Rate Wastewater usage rates are proposed to increase by $3.74 per 1,000 cf based on the amount of water used which is a 5.0% increase. Monthly Service Charge Similar to the monthly service charge for water, the monthly service charge for wastewater is currently $4.00 per month per account. Also like the monthly service charge for water, the monthly service charge for wastewater last changed from $1.25 to $4.00 in 2004. The proposed changes to the monthly service charge for wastewater are similar in scope and rationale as the changes in the monthly service charge for water: • The dollar amount is increasing. • The charge will vary by the size of a customer’s water meter. For the residential wastewater customers (94% of all City wastewater customers) the proposed change is $1.00 per month (increasing from $4.00 to $5.00). The proposed monthly service charges for wastewater are as follows: Water Meter Size Current Proposed $ Change % Change (in inches) 5/8 and 3/41 $ 4.00 $ 5.00 $ 1.00 25 % 1 $ 4.00 $ 12.50 $ 8.50 213 % 1 1/2 $ 4.00 $ 25.00 $ 21.00 525 % 2 $ 4.00 $ 40.00 $ 36.00 900 % 3 $ 4.00 $ 80.00 $ 76.00 1,900 % 4 $ 4.00 $ 125.00 $ 121.00 3,025 % 6 $ 4.00 $ 250.00 $ 246.00 6,150 % 14 $ 4.00 $ 1, 637.40 $ 1,633.40 40,835% (1) Approximately 94% of City wastewater customer have a 5/8 or 3/4 inch water meter. City of Charlottesville Utility Rate Report FY 2019 04 The table below shows the monthly change for the number of wastewater customers with different meter sizes. Water Meter Size # Customers $ Change/month (in inches) 5/8 and 3/4 13,392 $ 1.00 1 264 $ 8.50 1 1/2 224 $ 21.00 2 231 $ 36.00 3 36 $ 76.00 4 12 $ 121.00 6 1 $ 246.00 14 1 $ 1,633.40 TOTAL 14,161 Impact on the Customer In addition to a change to the usage rate and monthly service charge, the impact on a customer’s bill will depend on how much water is consumed. The average single-family household uses 400 cf/month (2,992 gallons/month; approximately 100 gallons/day). To the extent an individual customer’s usage differs from the average will determine the impact of the proposed rate on their bill. The table below shows the monthly impact on wastewater customers at different amounts of usage. Current Current Proposed Proposed Water Wastewater Wastewater Wastewater Wastewater $ % Used/Month (cf) Rate/1,000 cf Usage Rate/1,000 cf Usage Change Change Minimal User (10th Percentile) 140 $74.83 $10.48 $78.57 $11.00 $0.52 5.00% Small User (25th Percentile) 250 $74.83 $18.71 $78.57 $19.64 $0.93 5.00% Median User (50th Percentile) 400 $74.83 $29.93 $78.57 $31.43 $1.50 5.00% Large User (75th Percentile) 610 $74.83 $45.65 $78.57 $47.93 $2.28 5.00% High Volume User (90th Percentile) 880 $74.83 $65.85 $78.57 $69.14 $3.29 5.00% City of Charlottesville Utility Rate Report FY 2019 05 Gas Rates Revenue Requirements to operate and maintain the City’s Natural Gas System The chart below depicts the expenses that impact the gas rate. Usage Rate Gas usage rates are proposed to increase by an average of 1.40% for firm customers. Note: There is no change to the monthly service charge for gas. Impact on the Customer In addition to a change to the usage rate, the impact on a customer’s bill will depend on how much gas is consumed. The average single-family household is a firm gas customer that uses 4,600 cf of gas monthly. To the extent an individual customer is a firm or interruptible customer and their usage differs from the average will determine the impact of the proposed rate on their bill. The table below shows the monthly impact on different types of gas customers at different amounts of usage. Firm Gas Current Montly Gas Bill Proposed Montly % $ Change Customers Used/Month (cf) (based on rates adopted 7/1/17) 1 Gas Bill 1 Change Minimal User 4,000 $42.62 $43.07 $0.45 1.06% Average User 4,600 $47.28 $47.81 $0.52 1.11% Large User 20,000 $155.53 $157.57 $2.04 1.31% High Volume User 60,000 $433.67 $439.63 $5.96 1.37% Interruptable Gas Current Montly Gas Bill Proposed Montly % $ Change Customers Used/Month (cf) (based on rates adopted 7/1/17) 1 Gas Bill 1 Change 100,000 $643.19 $670.65 $27.46 4.27% 1,000,000 $5,389.66 $5,772.30 $382.64 7.10% 2,000,000 $9,965.96 $10,893.30 $927.34 9.31% 4,000,000 $19,118.56 $21.135.30 $2,016.74 10.55% (1) Include monthly service charges. City of Charlottesville Utility Rate Report FY 2019 06 Utilities L O T T E SV CH A R I LL Operations Overview 62- E -VI R G I NIA - 1 7 The Charlottesville Department of Utilities provides the Charlottesville community with safe and reliable natural gas, drinking water, wastewater and stormwater services at a reasonable cost in an environmentally responsible manner. Water Distribution System The City’s water distribution system contains over 1,100 fire hydrants, 3,400 water valves and 183 miles of water main line ranging in size from 2 inch to 18 inch in diameter. Water Distribution System Improvements A Water Prioritization Study was completed in 2009, which identified 48 projects totaling $7 million to be completed. Since 2009, additional projects were identified and added to the list and work has been completed on 65 water projects. These projects aim to improve fire protection, reduce main breaks, improve overall water quality and address the undersized lines. Total length of pipe replaced to date for water projects is approximately 12.6 miles (66,632 linear feet) averaging about two miles (10,000 linear feet) per year. This work is continuing in FY2019. Additional projects include the following: 1. Rugby Road Water Meter Replacements/ Gentry Lane Water Main Installation 2. Emmet Street/ Ivy Road Water Main Replacement 3. High Street Water Main Replacement 4. West Main Street Water Main Replacement Most of the City’s service lines (the lines from the mains to the water meters) are galvanized steel and were installed during residential construction. The City is continuing its service line replacement program as part of the upgrading and replacement of water mains. To date, over six miles (32,000 linear feet) of water service lines have been replaced. System Improvements to Prevent Water Loss Replacing water distribution mains and service lines is an important component in water loss prevention and conservation. Aging pipes are a primary cause of lost water in a system. The City has also performed annual system wide leak detection surveys. With over 180 miles of water lines, 124 leaks were found during the FY2017 through various methods, and 17 of those water leaks were found and fixed during the annual leak audit in FY2017 (Fall 2016). Leak audit surveys were completed in 13 of the past 15 years and will continue annually. The American Water Works Association (AWWA) recommends that all water utility owners perform a water audit every year. This audit is intended to identify sources of non-revenue water and to focus efforts in reducing those water losses. In FY2014 - FY2017, water loss was quantified by more accurate calculations of loss from water leaks, unmetered/unbilled water usage, and water meter error. Based on the water audit recommendations, a water meter calibration and replacement project was implemented starting in FY2014. In 2018, the meter replacement program expanded to include all meters 1.5-inch and above. The meter replacement project replaced 59 large water meters in 2017 and over 150 since the project’s inception. The success of the program has led to increased momentum into FY2019 with approximately 80 meters projected to be replaced in FY2019. Because conventional water meters less accurately measure low flow rates, starting in 2017 highly-sensitive “low-flow” ultrasonic meters are being installed in all applications. Wastewater Charlottesville’s sanitary sewer system extends to most areas of the City and consists of about 171 miles of pipe and 5,700 manholes. In 2009, Utilities awarded a multi-year, multi-million dollar contract utilizing a “find-and-fix” approach for sewer repair and rehabilitation. The work encompasses the rehabilitation of sewer manholes and sewer lines. In addition, crews have been performing CCTV (closed circuit televising) and smoke testing throughout the City system. Any deficient pipes or structures are immediately added to the list for rehabilitation/replacement under the same contract. “Find-and-Fix” rehabilitation projects are unique construction projects. The exact work is not known at the time of bidding, so all potential work items must be included in the bid form (bid form includes over 200 bid items). The Contractor performs the evaluation work during construction (primarily TV inspections), submits the evaluation to the Engineer for 02 Utilities City of Charlottesville review, and the Engineer then decides on the final rehab work within seven days. The work is fast-paced and allows for emergency situations to be addressed within 48 hours. The City estimates savings of over $2 million following this find-and-fix approach. A paper highlighting the City’s effort was presented by City staff at the 2018 WEF Collections System Conference. To date, 41.2 miles or 217,302 linear feet of sewer lines have been replaced or rehabilitated. Stormwater Charlottesville’s stormwater conveyance system is integrated throughout the City’s municipal boundary and consists of approximately 130 miles of pipe and approximately 8,250 structures. Approximately 33% of the stormwater pipes and 28% of the stormwater structures located within the municipal boundary are City owned. Approximately 13 miles of the stormwater conveyance system carry streams that have been piped. The Stormwater Utility is the dedicated funding source for the City’s Water Resources Protection Program (WRPP). The WRPP is designed to rehabilitate the City's aging stormwater conveyance system, comply with federal and state stormwater regulations, address drainage problems, and pursue environmental stewardship. The proposed stormwater utility rate for FY2019 remains unchanged at $1.20/month per billing unit. Each billing unit represents 500 square feet of impervious area or fraction thereof on a property. Stormwater utility fees are billed twice a year to property owners and are received concurrently with real estate tax bills. Utilities have had an active Stormwater Conveyance System Rehabilitation Program since 2010. The City has integrated the sanitary and storm sewer rehab into a single “find-and-fix” construction project with the same contractor completing the work. The work encompasses the rehabilitation, replacement, and repair of pipes and associated structures. In addition, non-routine repairs are completed in a timely manner as they arise, often in response to subsidence in City streets and sidewalks. To date, approximately 10 miles of pipe and 250 structures have been rehabilitated. The City-wide Water Resources Master Plan, completed in 2017, is a drainage improvement and a water quality capital improvement plan (CIP) that ranks and prioritizes projects in reference to available funding. Projects included in the drainage CIP address a combination of historic and recent drainage issues. Projects in the water quality CIP focus on stormwater management retrofits. Work has been initiated on four of the highest ranking water quality improvement projects and seven of the highest ranking drainage improvement projects. 03 Utilities City of Charlottesville Gas System Charlottesville Gas has provided residents of Charlottesville and urban areas of Albemarle County with safe, efficient, reliable, and economical service for over 150 years. Charlottesville Gas has approximately 21,000 customers and maintains 330 miles of gas lines and 270 miles of gas service lines. Charlottesville Gas employees are required by federal safety regulations to satisfactorily pass tests in order to document that employees are trained and qualified to complete a task on a gas facility to protect life and property. A typical Gas employee has to pass over 40 tests. Charlottesville Gas is the only municipality in Virginia participating in the State Corporation Commission (SCC) Enhanced Operator Qualification program with the other investor owned gas utilities. The SCC Enhanced Operator Qualification program provides a more rigorous process for testing Gas employees throughout the state. So far, nine tests have been completed by Gas employees with a 100% pass rate. Utilities have been working with IT to develop different applications to track new gas installations and remediate gas system Abnormal Operating Conditions (AOC’s). Using the Utility Viewer and tablets, Gas staff is able to track and document the location, materials and procedures of any gas installation. It also allows the Leak Survey Technicians and Service Crews to recognize AOC’s in the field and immediately update the Viewer via a tablet. The AOC’s are flagged in the Utility Viewer and repaired in order of importance. In March of 2018, the State Corporation Commission (SCC) performed a meticulous and thorough audit on our Public Awareness Program in accordance with federal regulations. The SCC inspectors did not note any findings which is uncommon in Virginia. The Deputy Director of SCC was so impressed with our program that he invited the City of Charlottesville to headline the presentation “A Path to a Successful Public Awareness Program” at the 2018 SCC Damage Prevention Conference. Charlottesville Gas received first place in the 3CMA 2017 Savvy Awards Category - Special Events-One Time Event for Flicker the Flame’s 10th Birthday Party. Charlottesville Gas also received a 2nd place Savvy Award in the Marketing and Tools Category - Best Use of a Promotional Item for the Flicker the Flame Plush Toy. There has been a 36% reduction in gas line damage caused by third party excavators in the last three years. This is due to the implementation of the outreach program “Dig with Care” and outsourcing the gas line location operation. The program includes a series of “Marty’s Minute” radio spots, annual VA811 Day celebrations, excavation safety training workshops, distributing VA811 kits to local contractors, and outsourcing the utility location process to improve its accuracy. Charlottesville Gas’ mascot, Flicker the Flame, also contributed to spreading awareness about safe digging and calling VA811. 04 Utilities City of Charlottesville Charlo esville Water Conserva on Program 2017 Highlights The Charlo esville Water Conserva on Program educates and provides resources promo ng water efficiency and conserva on. The program u lizes rebates, incen ves, community events, marke ng, and other means to reach the Charlo esville community. Fix a Leak Family 5k: March 2017  Campaign to encourage the community to find and fix leaks in their home  144 registered racers including 25 youth  Promoted Facebook event post reached 5,558 people Imagine a Day without Water Art Contest: Fall 2017  Campaign to encourage kids to think about “Why Does Every Drop Count?”  Joint campaign with RWSA and ACSA  638 art submissions from Charlo esville area  581 online votes helped select the Fan Favorite 2017 WaterSense Partner of the Year Water Sense 2017 PARTN ER OF THE YEAR  City of Charlo esville was honored with a WaterSense Partner of the Year Award in October 2017 for water conserva on ac vi es and ac ons  3rd consecu ve Partner of the Year Award received by Charlo esville 2017 Drought  First drought in almost 10 years triggering drought restric. ons in Charlo esville  Messaging developed and distributed jointly with ACSA & RWSA through various media outlets  Car magnets with water restric on no fica on placed on City vehicles  No fica on yard signs installed on City owned proper es 2017 by the  Numbers  13 public engagement events  50 new Facebook likes  135 new Twi er followers  Over 400,000 impressions from Facebook & Twi er  740 rain barrel rebates have been issues to City residents since the start of the program in 2009; 18 of which were issued in fiscal year 2017  210 WaterSense toilet rebates issued in 2017 (es mated to save City residents 60 million gallons of water)  527 million gallons of water saved from the toilet rebate program since the program started in 2002  1,534 WaterSense labeled faucet aerators distributed in the community  601 WaterSense labeled showerheads distributed in the community  Between fiscal year 2009 and 2017, the average single family has reduced their water usage by 263 cubic feet per month (1,967 gallons per month) F @CvilleWaterConserva on T @CvillePW www.charlo esville.org/waterconserva on CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Requested: Consideration of Resolution Presenter: Bill Mawyer, Executive Director, Rivanna Water and Sewer Authority Staff Contacts: Lauren Hildebrand, Utilities Director Maurice Jones, City Manager Title: South Rivanna Reservoir to Ragged Mountain Reservoir Water Line Project Background: A drought in Central Virginia in 2001 -2002 sparked a ten-year long water supply planning process. The community evaluated many alternatives, including taking water from the James River, but the community decided to stay within our water shed for future water needs. A Community Water Supply Plan was completed and approved in 2012, which required the Rivanna Water and Sewer Authority (RWSA) to construct and operate:  A new earthen dam at the Ragged Mountain Reservoir (completed in 2014);  A waterline from the South Rivanna Reservoir to the Ragged Mountain Reservoir; and  Modifications to raise the Ragged Mountain Reservoir water level an additional twelve feet when community water demand equals 85% of the available water capacity. Discussion: The waterline will be a 9-mile, 36-inch diameter pipe with the capacity to transfer (both directions) untreated water between the South Fork and Ragged Mountain Reservoirs. In addition to the waterline, the project includes an intake structure at the South Rivanna Reservoir, two pump stations, and a pretreatment facility to remove sediment and nutrients at the South Rivanna Water Treatment Plant. Project cost is estimated at $80 million. The current Ragged Mountain Reservoir was completed in 2014. As part of the Community Water Supply Plan, the capacity of the earthen dam was to be increased an additional twelve feet when the community water demand reaches 85% of the available water supply. RWSA plans to update the water demand and water storage data by 2020. Constructing the waterline project and raising the Ragged Mountain Reservoir water level benefits our community in many ways, including the following:  Enhanced Dependability and Redundancy of the Drinking Water System: By connecting the South Rivanna Reservoir and the Ragged Mountain Reservoir, and thus the South Rivanna and Observatory Water Treatment Plants, the system will be capable of providing drinking water to the urban area from multiple facilities. The new waterline will replace the 100-year old water line which currently supplies water to the Ragged Mountain Reservoir from the Sugar Hollow Reservoir;  Increased Water Supply: Completion of the water line and raising the water level at the dam will provide an adequate water supply for the community for at least 50 years; and  Environmental Betterment: With the new waterline in place, we will provide abundant water for people, fish and other wildlife by rapidly filling the Ragged Mountain Reservoir during times of high rainfall, and will be able to maintain adequate water in the rivers during dry times. RWSA has begun preliminary engineering, the route determination, and the easement acquisition process; completion of the initial phase is anticipated in 2021. RWSA has presented four options regarding the timing of the final design and construction of the waterline project for consideration:  Option A: 2022-2030;  Option B: 2027-2035;  Option C: 2032-2040; and  Option D: 2042-2050 Existing RWSA construction debt service payments should decrease in 2032, when additional debt service will have less impact on water cost. Based on the cost allocation for the water supply plan, the City’s share of the future pipeline is 20%; Albemarle County Service Authority’s share is 80%. Alignment with City Council’s Vision and Strategic Plan: The RWSA project supports City Council’s “Green City” vision. The project contributes to Objective 3.2 of the Strategic Plan: providing reliable and high quality infrastructure. Community Engagement: RWSA held numerous public and community meetings during the 10-year long water supply planning process. Budgetary Impact: This decision has no impact on the General Fund. The City’s utility water rate will be calculated based upon the City’s percentage of RWSA’s project and debt service cost. Recommendation: Staff recommends Councilors provide the City representatives on the RWSA Board guidance on timelines for Rivanna Water and Sewer Authority water line project; staff believes Options B (2027- 2035) and C (2032-2040) are the most favorable, and that Options A (2022-2030) and D (2042- 2050) should be eliminated. Option A is not favorable as RWSA has previously set other priorities for capital projects and the debt service cost would increase significantly, thus raising the City rates. The Option D timeline is based far into the future and does not ensure our community will have an adequate water supply. Options B and C are the most advantageous for the City given the need for the dependability and redundancy of the community’s water supply system, and the timing of increased debt service cost for RWSA is most appropriate. Alternatives: Councilors can select a different timeline to design and construct the pipeline. Attachments: Resolution RESOLUTION ADOPTING TIMELINES FOR THE SOUTH RIVANNA RESERVOIR WATER LINE PROJECT AND FOR INCREASING THE WATER LEVEL OF RAGGED MOUNTAIN RESERVOIR WHEREAS, A Community Water Supply Plan was completed and approved in 2012, which required the Rivanna Water and Sewer Authority (RWSA) to construct and operate a new earthen dam at the Ragged Mountain Reservoir, a waterline from the South Rivanna Reservoir to the Ragged Mountain Reservoir and modifications to raise the Ragged Mountain Reservoir water level an additional twelve feet when community water demand equals 85% of the available water capacity; and, WHEREAS, the waterline will be a 9-mile, 36-inch diameter pipe with the capacity to transfer (both directions) untreated water between the South Fork and Ragged Mountain Reservoirs; and, WHEREAS, by connecting the South Rivanna and the Ragged Mountain Reservoirs with a water line, the system will be capable of providing drinking water to the urban area from multiple water treatment facilities, and, WHEREAS, completion of the water line and raising the water level at the dam will provide an adequate water supply for the community for at least 50 years; and, WHEREAS, RWSA has presented four options regarding the timing of the final design and construction of the waterline project: Option A: 2022-2030; Option B: 2027-2035; Option C: 2032-2040; and Option D: 2042-2050; and, NOW THEREFORE BE IT RESOLVED, Options B and C are the most favorable timelines for the South Rivanna Reservoir to Ragged Mountain Reservoir Water Line Project and that Options A and D should be eliminated. ADOPTED by the Charlottesville City Council on this ____ day of _______, 2018. SIGNATURE: _______________________________ Mayor ATTEST _____________________________ Clerk of Council CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: June 4, 2018 Action Required: Approval of Resolution Presenter: Stacy Pethia, Housing Program Coordinator Neighborhood Development Services (NDS) Staff Contacts: Stacy Pethia, Housing Program Coordinator Title: Charlottesville Affordable Housing Fund (CAHF) Assistance for the Piedmont Housing Alliance (PHA) Down Payment Assistance Program –- $186,125 Background: Piedmont Housing Alliance (PHA) has requested Charlottesville Affordable Housing Fund (CAHF) assistance to provide down payment assistance for potential homebuyers in the City of Charlottesville with a specific program focus on the Orangedale and Prospect (O&P) neighborhood. The total amount of assistance being sought for the program is $186,125 (see PHA proposal dated May 16, 2018). Discussion: PHA is requesting CAHF funding to support the continuation of the Home Ownership, Self- Sufficiency and Financial Capability program that the City provided CAHF funding for in May 2015. The program is designed to support first-time buyers, with household incomes less than 80 percent area median income (currently $68,250 for a family of four) who have lived and/or worked in the City of Charlottesville for at least six months. Priority for program funding will be given to current O&P neighborhood residents, but residents from other areas of the City, as well as individuals who have worked in the City for at least six months, may also participate if they meet program qualifications. If approved, the CAHF funds will be used to provide down payment and closing cost assistance (up to 20 percent of the home purchase price) to at least five income qualifying, first-time homebuyers who purchase a home in the O&P neighborhood. This assistance will be provided as a zero-interest, forgivable, deferred payment loan secured through a 10-year deed of trust payable upon resale of the home. In addition to financial assistance, each program participant will receive homeownership counseling and financial coaching to ensure successful homeownership outcomes and financial stability over the long-term. Program participants receiving down payment assistance will also be given access to home improvement grants of up to $12,500 to address critical home repairs or energy-efficiency upgrades through a partnership with the Albemarle Housing Improvement Program (AHIP). Finally, each homebuyer will be encouraged to take advantage of PHA special allocation of $1.75 million in low-interest financing from the Virginia Housing Development Authority, which will decrease the interest rate on their mortgage loan. The proposed program budget is as follows: Activity Budget Amount Down Payment/Closing Cost Assistance (approximately 5 homebuyers) $115,000 Home Repair Grants (approximately 5 homebuyers at $12,500 each) $ 62,500 Program Services/Administration $ 8,625 Total $186,125 While the initial phase of the program (approved for CAHF funding in May 2015) experience some delays due to a lack of qualifying homebuyers and low housing inventory of homes for sale (among other possible factors) in the O&P neighborhood, PHA was able to expend all of the previous CAHF award by September 2017. Of the six homebuyers receiving CAHF assistance through the initial program, two-thirds of those homebuyers purchased homes within the O&P neighborhood. The program was also successful in serving households with incomes below 80 percent area median income (AMI) with half of the homebuyer incomes falling below 50 percent AMI (see table below). Additionally, three of the households purchasing homes in the O&P neighborhood also took advantage of the home repair grants and AHIP services. The first-time homebuyers receiving CAHF support between 2015 and 2017 include:  Single mother with income at 66% AMI ($37,206, working two food service jobs) purchased a $126,000 home on Orangedale Avenue with $22,060 from CAHF and $3,140 from other Piedmont Housing funds in December 2017, and will use $12,500 in repair funds; also saving on monthly payments with use of our low-interest mortgage funds allocation from VHDA; received counseling on budgeting and homebuying process and completed VHDA homebuyer class.  Female-headed household with income at 42% AMI ($23,404) purchased a $111,000 home on Prospect Avenue with $22,200 from CAHF and $12,500 in repair funds in May 2017; received counseling on budgeting and homebuying process and completed VHDA homebuyer class; 20-year employee with UVA hospital food service.  Single mother with income at 36% AMI ($26,972) purchased a $90,000 home on Prospect Avenue using $12,500 in repair funds in December 2016; eligible for CAHF down payment but declined; works as a CNA.  Family of 3 with income at 66% AMI ($47,389) purchased a $150,000 home in the 10 th and Page neighborhood (previously his grandmother’s home) with $30,000 from CAHF in December 2016; received counseling on budgeting and credit, improving credit score from mid 500s to mid 600s, and completed VHDA homebuyer class; works in maintenance for Virginia Supportive Housing.  Female-headed household with income at 64% AMI ($35,740) purchased a $178,000 home in the City’s Meadows neighborhood with $35,740 from CAHF in August 2017; received counseling and completed VHDA homebuyer class; works in the food industry. Alignment with Council Vision Areas and Strategic Plan: Approval of this agenda items aligns directly with the City Council Vision for Charlottesville to provide quality housing opportunities for all. The proposed action also aligns with the Strategic Plan at goal 1.3 which speaks to increasing affordable housing options. Community Engagement: There has been no community engagement related to this request for funding. However, two public meetings to discuss the program were held prior to the initial implementation of the program on July 17, 2014 and September 24, 2014. Budgetary Impact: The proposed project will require $186,125 from FY 2018 CAHF funds. If program funding is approved, the amount of available CAHF dollars will decrease to $43,065.65 for the remainder of FY 2018. CAHF Balance as of 5/8/2018 $129,410.97 1725 Jefferson Park Avenue ADU Payment $ 75,779.68 Loan Repayment – Anthony Paul Trace $ 24,000.00 PHA DPA Program - $186,125.00 CAHF Balance after appropriation $ 43,065.65 Recommendation: Staff recommends approval of the attached resolution. Alternatives: Council could elect not to fund this request and/or to reduce funding; however, both actions would negatively impact our ability to provide increased homeownership in the for lower-income households in the City. Attachments: - PHA proposal dated May 16, 2018 - Four program success stories - City Council Resolution Increasing Home Ownership, Self Sufficiency, and Financial Capability Piedmont Housing Alliance – May 16, 2018 Piedmont Housing Alliance requests $186,125 from the City of Charlottesville for a second round of investment to increase Home Ownership, Self-Sufficiency, and Financial Capability. Specifically, funds will be used to provide down payment and closing cost assistance loans and related home repair grants, home ownership counseling and education, and financial coaching. The outcome for these funds is sustainable home ownership, asset-building, and financial stability among low to moderate income households in the City of Charlottesville with a specific focus on the Orangedale/Prospect neighborhood. Down payment and closing cost funds will be prioritized to assist approximately five households who buy a home in the City-designated Orangedale/Prospect Neighborhood.1 Eligible homebuyers must be first-time homebuyers2, earn 80% or less of the area median income, and must have lived or worked in Charlottesville for at least six months. Priority will be given to current Orangedale/Prospect residents, via targeted outreach. The down payment and closing cost assistance loans may provide up to 20% of the purchase price. We will follow first- mortgage underwriters’ guidelines and apply maximum ratios of 33% housing debt and 43% total debt, with exceptions presented to the City’s Housing Program Coordinator for consideration to further the purpose of this initiative. Repayment will be deferred at 0% interest, secured with a 10-year deed of trust, and payable upon resale of the home. The deed of trust will be forgiven on a proportionate basis over the 10 years. Home improvement grants averaging $12,500 will be available to those households receiving down payment assistance, to be used in connection with AHIP to provide critical home repairs and/or important energy- efficiency upgrades. In addition, we will encourage access to our special allocation of $1.75 million in low-interest mortgage financing from VHDA (Virginia Housing Development Authority), which will save homebuyers interest on their loan. First-time homebuyer success stories supported by CAHF funds, 2015-17:  Single mother with income at 66% AMI ($37,206, working two food service jobs) purchased a $126,000 home on Orangedale Avenue with $22,060 from CAHF and $3,140 from other Piedmont Housing funds in December 2017, and will use $12,500 in repair funds; also saving on monthly payments with use of our low-interest mortgage funds allocation from VHDA; received counseling on budgeting and homebuying process and completed VHDA homebuyer class.  Female-headed household with income at 42% AMI ($23,404) purchased a $111,000 home on Prospect Avenue with $22,200 from CAHF and $12,500 in repair funds in May 2017; received counseling on budgeting and homebuying process and completed VHDA homebuyer class; 20-year employee with UVA hospital food service.  Single mother with income at 36% AMI ($26,972) purchased a $90,000 home on Prospect Avenue using $12,500 in repair funds in December 2016; eligible for CAHF down payment but declined; works as a CNA. 1 City-designated Orangedale/Prospect Neighborhood as presented in the focus group effort in September 2014. 2 See definition on page 4. Should an interested homebuyer not meet this definition, an exception request will be presented to the City’s Housing Program Coordinator for consideration.  Family of 3 with income at 66% AMI ($47,389) purchased a $150,000 home in the 10th and Page neighborhood (previously his grandmother’s home) with $30,000 from CAHF in December 2016; received counseling on budgeting and credit, improving credit score from mid 500s to mid 600s, and completed VHDA homebuyer class; works in maintenance for Virginia Supportive Housing.  Female-headed household with income at 64% AMI ($35,740) purchased a $178,000 home in the City’s Meadows neighborhood with $35,740 from CAHF in August 2017; received counseling and completed VHDA homebuyer class; works in the food industry. Other housing counseling clients who bought in the Orangedale/Prospect neighborhood, but did not use CAHF funds:  Family of 4 with income at 34% AMI ($28,401) purchased a $112,000 home on Orangedale Avenue with our state HOME funds in August 2015; works in housekeeping.  Female-headed household purchased a $114,400 home on Rockcreek Road; slightly over income for CAHF but did receive counseling and completed VHDA homebuyer class.  Family of 3 purchased a $139,500 home on Orangedele Avenue; slightly over income for CAHF but received counseling and completed VHDA homebuyer class. Proposed Budget Based on assisting five homebuyers with 20% down payment assistance on a $115,000 home and an average of approximately $12,500 for home repairs, along with loan program, counseling, education, and outreach expenses, the proposed budget is: Down Payment Assistance Loans: $115,000 Home Repair Grants: $ 62,500 Program Costs - Outreach, Housing Counseling, Loan Program Administration: $ 8,625 TOTAL: $186,125 Note the breakdown of costs is approximate, with less than five percent (5%) allocated for Piedmont Housing Alliance to provide program implementation. Additional families may be assisted if homebuyers qualify for other sources of down payment assistance, allowing us to combine leveraged funds. Organizational Capacity Piedmont Housing Alliance has been building community wealth in the Charlottesville area for 34 years. Our mission is to create housing opportunities and build community through education, lending, and building. Piedmont Housing Alliance combines the case management expertise of a HUD-approved Housing Counseling Agency (HCA) with the financing expertise of a U.S. Treasury-certified Community Development Financial Institution (CDFI) and HUD- approved FHA Secondary Financing Provider to create affordable and sustainable home ownership opportunities for very low to moderate income households. Piedmont Housing has managed $9 million in down payment assistance from a variety of sources to make the dream of home ownership a reality, and has helped 900 families purchase homes through counseling and/or access to affordable home financing. Piedmont Housing Alliance’s certified Housing Counselors work one-on-one with clients to provide a continuum of educational services for economic self-sufficiency, including financial education and coaching, credit and budget counseling, savings and asset-building coaching, pre- purchase counseling and training, and post-purchase counseling. Counselors help clients review their current financial status, credit history, monthly budget, and debt structure, then develop an individualized home purchase strategy and timeline based on each client’s individual needs. We base our counseling and coaching programs on specific models:  Financial Education: FDIC Money Smart and Hands on Banking curriculum https://www.fdic.gov/consumers/consumer/moneysmart/adult.html and http://www.handsonbanking.org/en/  Financial Coaching: NeighborWorks Financial Capability Program http://www.neighborworks.org/Homes-Finances/Financial-Security  Housing Counseling: National Industry Standards for Education and Counseling http://www.homeownershipstandards.com/Home/Home.aspx  Homebuyer Education: Virginia Housing Development Authority (VHDA) Homebuyer Education Class curriculum (all counselors are VHDA-approved Trainers) http://www.vhda.com/Homebuyers/HomeownershipEdu/Pages/HomeownershipE du.aspx#.VQpiqE3wvIU Piedmont Housing attracts federal, state, local and private sources of down payment assistance to help close the home ownership affordability gap. HUD research found that as little as $1,000 of down payment assistance can lead to a 19% increase in the number of low-income households buying a home, and assistance up to $10,000 can lead to a 41% increase in low- income homeownership (HUD 2012 Evidence Matters, “Paths to Homeownership for Low- Income and Minority Households”). Piedmont Housing Alliance administers HOME down payment funds for the Virginia Dept. of Housing & Community Development (DHCD), as well as several Down Payment Assistance programs funded by the City of Charlottesville, Albemarle County, Louisa County, and competitive grant sources such as the U.S. Treasury’s CDFI Fund. Definition of first-time homebuyer An individual who meets any of the following criteria:  An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).  A single parent who has only owned with a former spouse while married.  An individual who is a displaced homemaker and has only owned with a spouse.  An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.  An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA). RESOLUTION Charlottesville Affordable Housing Fund Assistance for the Piedmont Housing Alliance Down Payment Assistance Program $186,125 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $186,125 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund to the Piedmont Housing Alliance for the purpose of providing downpayment assistance in the following manner: Fund: 426 Project: CP-084 G/L Account: 599999 Piedmont Housing Alliance $186,125 This page intentionally left blank.