February 16, 2015 Page 2
BU DGET WORK SESSION
The City Council of the City of Raleigh met in Budget Work Session on Monday, February 16, 2015, at 1:00 p.m. in the City Council Chamber of the Raleigh Municipal Building, Avery C. Upchurch Government Complex, 222 West Hargett Street, Raleigh, North Carolina, with the following present.
Mayor Nancy McFarlane, Presiding – LATE ARRIVAL
Mayor Pro Tem John Odom
Councilor Mary-Ann Baldwin
Councilor Kay C. Crowder
Councilor Bonner Gaylord
Councilor Wayne K. Maiorano
Councilor Russ Stephenson
Councilor Eugene Weeks
Mayor Pro Tem Odom called the meeting to order at 1:03 p.m. All Council members were present except Mayor McFarlane, whose arrival is noted later in these minutes.
FEBRUARY 17, 2015 CITY COUNCIL MEETING – CANCELED DUE TO INCLEMENT WEATHER – CONSENT AGENDA APPROVED; REMAINING ITEMS DEFERRED TO MARCH 3, 2015
Emergency Management Coordinator presented a report regarding the potential impacts of the inclement weather (icy precipitation) predicted for tonight. Mr. Stephenson asked about the City Council meetings scheduled for tomorrow. City Manager Ruffin Hall replied there was an Operations briefing a short time ago and part of the discussion related to the variety of impacts to the community. Staff suggests canceling tomorrow's Council meeting and talking about the potential impacts of the cancellation. Chief of Staff Lou Buonpane distributed copies of tomorrow's agenda and backup from several of the items. There are three Consent Agenda items that are time-sensitive: D1 (Raleigh Union Station Property Conveyance), D2 (Refinancing Water and Sewer Revenue Bonds), and D7.2 (Service Contract – On-Street Parking Program – Duncan Parking Technologies Service).
City Manager Hall explained Council has three options: (1) reschedule tomorrow's meeting for later in the week, (2) act on some items today, or (3) defer all agenda items to March 3, noting that three items are time-sensitive. City Attorney Tom McCormick further explained Option 2. Even though this meeting is designated as a budget work session, it is a special City Council meeting, and Council may add items to the agenda with the consent of all Council members present. Council could add to the agenda for consideration and action the three time-sensitive items the City Manager noted, with the agreement of all Council members.
Ms. Baldwin asked if delaying action on any of the rezoning cases would be problematic. City Manager Hall replied staff talked about the rezoning cases earlier today and part of their determination in what they proposed today is the relationship of citizens trying to attend the Council meeting. From an agenda perspective, he suggests the Council think about the Consent Agenda only for today's discussion. Planning Director Ken Bowers reviewed the rezoning cases relative to timing. Z-1-14 – Falls of Neuse Road could not be scheduled for public hearing tomorrow because signed conditions were not available before the deadline and it would have been postponed for two weeks anyway. Z-22-14 – Creedmoor Road could have been scheduled for public hearing tomorrow, but a two-week delay will not cause any scheduling problems and a public hearing could be scheduled for the first Council meeting in April. Z-23-14/MP-1-14 – Maywood Avenue is the same as Z-22-14. Z-35-13 – Hillsborough Street is on the agenda as a Special Item. There have been no amendments to the case since Council last heard it and no amendments to the conditions. There was a request from the neighborhood for Council to take action on the case, but Council is not under a specific deadline to take action tomorrow. Ms. Crowder asked about rezoning Z-16-14 – Varsity Drive. Planning Director Bowers explained that case is listed under public hearings. The public hearing was opened at the February 3 Council meeting, but Council did not hear from the public because several key attendees, including representatives from North Carolina State University, were unable to attend the hearing. The hearing was held open. The applicant, the university, and other stakeholders are still deliberating over potential amendments to the case. Z-35-14 – Raleigh Beach Road is scheduled for public hearing on tomorrow's agenda. Deferring the hearing for two weeks will not cause any problems.
MAYOR McFARLANE ARRIVED AT 1:12 P.M.
Mayor Pro Tem Odom suggested the Council move forward with the budget work session at this time and address tomorrow's Council meeting in 30 or 40 minutes after the scheduled break. The Mayor, who was now presiding, and the other Council members agreed without objection.
After the Public Utilities portion of the budget work session (approximately 2:47 p.m.), City Manager Hall explained Council's two options with regard to tomorrow's scheduled meeting. Council could (1) consider the Consent Agenda today and defer the remaining items to its March 3 meeting, or (2) reschedule the February 17 meeting for some time in the next five to seven days.
Ms. Baldwin asked the City Attorney to explain the process again for Option 1. Mr. McCormick explained this work session is an actual Council meeting and state law allows Council to add items to the agenda with a consensus vote, either by motion or a ruling by the Mayor without objection.
Ms. Baldwin moved to approve the Consent Agenda and asked to be excused from Item D1 (Raleigh Union Station Property Conveyance). She said she has a standing excusal from this item. Mr. Maiorano pointed out that Council members may want to pull other Consent Agenda items for discussion. He suggested Council take a break for a few minutes and see if there are any others to be pulled. If there are, it might be appropriate to postpone them to the March 3 agenda as well. City Attorney McCormick suggested referring items pulled from the Consent Agenda to the March 3 meeting.
MAYOR McFARLANE CALLED FOR A BREAK IN THE PROCEEDINGS AT 2:51 P.M. THE COUNCIL RECONVENED AT 3:02 P.M.
CONSENT AGENDA
CONSENT AGENDA – APPROVED AS AMENDED
Mayor McFarlane presented the consent agenda indicating all items are considered to be routine and may be enacted by one motion. If a Councilor requests discussion on an item, the item will be removed from the consent agenda and considered separately. She explained the vote on the Consent Agenda will be a roll call vote.
Ms. Baldwin moved Administration's recommendations on the Consent Agenda be upheld. Her motion was seconded by Mr. Weeks and a roll call vote resulted in all members voting in the affirmative. The Mayor ruled the motion adopted on an 8-0 vote.
City Manager Hall clarified that the remainder of the January 17, 2015 agenda will be moved to March 3 and the notification process for the cancellation of tomorrow’s meeting will begin immediately. City Attorney McCormick told the Council a motion was not necessary, as Council had agreed to this by consensus.
The items on the Consent Agenda were as follows:
Water and Sewer Revenue Bonds – REFINANCING – APPROVED; ORDER ADOPTED
Current bond market conditions make feasible the refinancing of outstanding Series 2006A and Series 2006B Combined Enterprise System Revenue Bonds. Refinancing this debt has the potential for gross savings of up to $17M dollars, which is dependent upon continued market conditions. Refinancing at this time will result in a projected reduction in the amount of annual debt service, which in turn will benefit the utilities capital program.
To proceed with the proposed issuance of the refunding bonds presently scheduled for March 12, 2015, it is necessary for Council to adopt an order and to make certain findings and determinations; authorize the filing of an application with the Local Government Commission for the approval of the issuance of the bonds; request the Local Government Commission to sell the bonds to approved underwriters at a private sale in connection with the issuance of revenue refunding bonds by the City; authorize the issuance and sale of Series 2015 Combined Enterprise System Revenue Refunding Bonds; authorize the execution and delivery of documents in support of the refinancing; authorize staff to execute a Twelfth Supplemental Agreement, Preliminary and Final Official Statement, Bond Purchase Agreement, and other related documents in conjunction with the sale; authorize staff to take necessary actions and execute documents deemed necessary by bond counsel to effect the transactions.
Recommendation: Adopt the order and authorize appropriate actions by staff. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes. See Ordinance 395.
Urban Redevelopment Main Replacement Reimbursement – APPROVED; ORDINANCE ADOPTED
During the June 3, 2014 City Council work session, staff presented options for instituting a program to reasonably reimburse developers required to replace existing water and sewer pipes with inadequate capacity. The need for such a reimbursement program was triggered by numerous redevelopment projects occurring in areas of the City where water and sewer pipes are the oldest, and the existing infrastructure never intended to accommodate the flows associated with high density, multi-story redevelopment. The City’s current pipe reimbursement program (formerly called the acreage fee reimbursement program) is targeted for the reimbursement of upsized infrastructure in new greenfield projects without existing infrastructure. The current program remains applicable in circumstances of new development.
Following feedback and input from the City Council, a stakeholder group was formed to develop the elements of a reimbursement policy. The stakeholder group, comprised of representatives from the development community and facilitated by City staff, began meeting in July, 2014. The proposed policy represents the input and feedback of stakeholder group. The policy provides opportunity to partner with the development community for the replacement of older infrastructure in conjunction with redevelopment projects to meet capacity needs as well as the City’s need to replace aged infrastructure, while establishing a methodology for an equitable funding split between existing rate payers, current development projects, and future developments. An ordinance to enact the provisions of the policy was included with the agenda packet.
Recommendation : Adopt the ordinance. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes. See Ordinance 396.
City Code Revision – Water Supply Cross Connection Program
To comply with the Federal Safe Drinking Water Act, the North Carolina Drinking Water Act, and North Carolina State Building Code, the City has established regulations related to cross connections, auxiliary intakes, and system interconnections to protect the public water supply from potential sources of contamination.
Modifications to the existing regulations are proposed to better align the existing City Code with the terms of the Unified Development Ordinance and State and Federal requirements. The modifications will also give staff the flexibility to work with existing non-compliant properties on compliance schedules and provide additional options to bring systems into compliance while still protecting the water supply.
An ordinance to revise the Code as well as relevant portions of the Public Utilities Handbook was included with the agenda packet. Adoption was recommended.
Recommendation : Adopt the ordinance. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes. See Ordinance 397.
ANNEXATION OF CITY PROPERTY – PERRY CREEK ROAD PARK – RECOMMENDATIONS APPROVED AS PRESENTED; PUBLIC HEARING SCHEDULED
State statutes provide for the annexation of property owned in entirety by a municipality by resolution of intent, in lieu of filing a petition. At the request of the Parks, Recreation and Cultural Resources department, it is proposed that the following City property be annexed by the resolution of intent process: Perry Creek Road Park Property, 24.97 acres. The property is contiguous to existing City boundaries.
Recommendation : Adopt the resolution and authorize a public hearing on the proposed annexation for Tuesday, March 17, 2015. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes. See Resolution 59.
PETITION ANNEXATION – RECOMMENDATIONS APPROVED AS PRESENTED; PUBLIC HEARING SCHEDULED
Contiguous Petition Petitioner Acres Proposed Use
Yadkin Bank Property Alicia Daugherty 13.26 Residential
Recommendation : Acknowledge the annexation petition and direct the City Clerk to check the sufficiency of the petitions pursuant to State statutes and, if found sufficient, authorize advertisement for public hearing on April 21, 2015. The City has an annexation agreement with the Town of Wake Forest which requires jurisdictional notification when annexing property within 1,000 feet of an existing annexation boundary. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes.
Service Contract – On-Street Parking Program – Duncan Parking Technologies Service – APPROVED; CITY MANAGER AUTHORIZED TO EXECUTE CONTRACT
A contract for the management of on-street parking was executed with Duncan Parking Technologies in January, 2010. The contract scope provides service to 193 on-street multi-space pay stations covering approximately 1,200 parking spaces. The City subsequently increased the number of pay stations to 199 to service approximately 1,227 spaces. More than $1 million in annual revenue is processed via the pay stations.
An anticipated period of three to five years of useful life from the existing equipment is expected; in advance of this period a competitive procurement process will be undertaken to ensure ongoing cost effectiveness of the program.
The total contract amount for a three year period is $591,371, and comprises two main components: (1) Vendor-hosted services and system maintenance; and (2) hardware/software service and support. Approval of this contract is essential for the continued successful operation of the meter program. Staff recommends approval of this contract for a 36 month period at the cost of $591,371, or $197,124 annually. The vendor offered a one year option in the amount of $215,040; accepting the three year rate results in an annual cost avoidance of $17,916 or $53,748 over the contract term. Funding is appropriated in the operating budget.
Recommendation : Authorize the City Manager to execute the contract. Upheld on Consent Agenda, Baldwin/Weeks – 8 ayes.
P rofessional Services – Crabtree Pipeline – Hazen and Sawyer – Amendment Number Three – APPROVED
Since 2008 the City has a contract with Hazen and Sawyer for professional services for the Crabtree Creek Basin Wastewater System Conveyance Improvements project. Since that time, 16,000 linear feet of 72-inch interceptor and 4,000 linear feet of 60-inch interceptor have been constructed, and 21,000 linear feet of 54-inch interceptor is scheduled to begin construction in 2015 (Crabtree Pipeline). Improvements to the Crabtree Creek Lift Station are scheduled to occur in 2015 and 2016.
Name of Project: Crabtree Creek Basin Wastewater System Conveyance Improvements (Crabtree Pipeline)
Managing Division: Public Utilities – Capital Improvements Division
Request Reason: Contract amendment approval (contract amendment >$150,000)