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MINUTES Regular Council Thursday, February 6, 8:00 PM Waddell Elementary School

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MINUTES

Regular Council

Thursday, February 6, 2020 @ 8:00 PM

Waddell Elementary School

PRESENT: Mayor Frank Friedman, Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers,

Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

ABSENT:

CALL TO ORDER - MAYOR FRIEDMAN

Mayor Friedman called the meeting to order at 8:00 p.m.

PLEDGE OF ALLEGIANCE - MAYOR FRIEDMAN APPROVAL OF THE AGENDA - MAYOR FRIEDMAN

The agenda was approved as presented.

PROCLAMATIONS

None.

PRESENTATIONS

None.

PUBLIC HEARINGS

Adopt Ordinance 2020-02, incorporating the budget amendments for the second quarter of FY 2020.

Finance Director Swink provided the following background on the Ordinance: This budget amendment incorporates the items detailed below:

1. The Police Department was awarded a $17,715 grant from the Virginia Department of

Criminal Justice Services for community policing. The grant is to be used to acquire a mobile community unit and for related supplies and materials. The funds need to be appropriated for the purpose outlined in the grant application (account 01-3101-5897-0).

2. The Planning Department was awarded a $24,000 grant to be matched by the City to be used to develop design criteria for the historic district. The funds need to be appropriated to

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account 01-8110-5920-0.

3. The Police Department provided services to VMI at football games and was reimbursed $1,594 to cover overtime paid to officers. These monies need to be appropriated to account 01-3101-1004-0.

4. There was a cost of $12,787 billed to the City for our share of improvements made by RANA. No funds were budgeted for this purpose; therefore, anticipated savings in the City Manager’s budget need to be appropriated to account 01-8200-5658-0 to cover this expense.

5. Vehicle purchases have exceeded the budgeted amount by $6,903, requiring an additional appropriation to account 06-5000-7005-0.

6. The schools request that $52,000 in funding reserved for capital needs be appropriated to cover three proposed projects. Further details of the projects are included in the attachment.

Financial Implications: Various account numbers in the amounts noted above.

Mayor Friedman opened the public hearing at 8:03 p.m., hearing no public comment, Mayor Friedman closed the public hearing at 8:04 p.m.

Moved by Councilmember David Sigler, seconded by Councilmember Michele Hentz, Manager's Recommendation: adopt Ordinance 2020-02, incorporating the budget amendments for FY 2020.

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

APPROVAL OF MINUTES

None.

CITIZENS' REMARKS AND COMMENTS

Mayor Friedman opened Citizen's Remarks and Comments at 8:05 p.m., hearing none, Mayor Friedman closed Citizen's Remarks and Comments at 8:06 p.m.

CONSENT AGENDA

Request by Richard Hastings for street closure in order to host the Memorial Day Celebration on Monday, May 25, 2020.

Moved by Councilmember David Sigler, seconded by Vice-Mayor Marylin Alexander, approve the street closure request for the Memorial Day Celebration as presented.

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

Approve the FY20 second quarter financial report.

Moved by Councilmember David Sigler, seconded by Vice-Mayor Marylin Alexander, approve the FY20 second quarter financial report.

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Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

UNFINISHED BUSINESS

Discussion on Goals for VDOT Property Development

For several years, City Council has been working to control the future of the VDOT property on Waddell Street at Lexington’s South Entrance Corridor. While no decisions have been made

regarding the type of development that may occur, Council has gathered pertinent information that we desire to share with the Community. The ambition of the City is to successfully sell the property for development.

Council’s goals for the development of the property are: • Property owned by private developer.

• Property developed to highest and best use.

• Development consistent with long term goals of the City. • Property generating long term tax revenue.

• Project has a positive impact on surrounding properties. • Prompt sale of the property to a development partner. The work completed to date includes:

• Feasibility Study completed in April 2018 • Alternatives Analysis completed in July 2018 • Real Estate Control secured in January 2019 • Market Study completed in July 2019 • Appraisal completed in September 2019

The Timmons Group conducted a Feasibility Study for the VDOT property which was completed in April 2018. As part of the study, Timmons reviewed the current zoning and comprehensive plan to identify possible development opportunities. They are multi-family housing, townhouses, office/multi-family, office, retail, light industry, and hotel. The marketability of each of those types of development was assessed.

The City also requested that Timmons study the impact of two potentials - reducing the property size by 0.7 acres for use by the Rockbridge County School System and trading property with the Rockbridge Farmers Co-op. These two groups had proposed these options to the City. The study indicates that allowing the Rockbridge County School System to have 0.7 acres might negatively impact the marketability of the property. Also, trading the VDOT property for all 5 acres of the Co-op property including the Main Street frontage could improve the marketability of the property. However, trading for only the 3 acre parcel of the Co-op property (Waddell Street frontage), would likely negatively impact the marketability of the property.

In July 2018, Timmons completed the Alternatives Analysis. Several scenarios of build-out are analyzed in terms of long-term potential property taxes for the entire 5 acre parcel and for a 4.3 acre

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parcel with 0.7 acres used for Rockbridge County School System. The scenarios evaluated in order of greatest potential real estate tax generated are Office/Multi-family, Office, Light Industrial, and Single Family Residential. It is estimated that the potential real estate tax generated could be reduced by as much as 23% if 0.7 acres is transferred to the Rockbridge County School System.

In January 2019, the Real Estate Control was secured. Lexington has the opportunity to purchase the VDOT property as part of the Governor’s approved budget. Governor Ralph Northam and Senator Creigh Deeds supported this effort because the property could be developed to expand the City’s tax base.

In April 2019, Council and the Industrial Development Authority (IDA) commissioned a Market Study on multi-family rental housing including senior housing. Danter and Associates completed the Market Study in July 2019.

The study includes:

• Analysis of overall Effective Market Area rental housing market • Historical housing trends

• Current market conditions based on 100% field survey of modern apartments • Appropriateness of the site for subject development

• Current and expected economic and household growth conditions • Area apartment demand factors

The Market Study recommendation and findings are summarized as follows:

1. Site can support 200 multifamily units (all ages), 200 multifamily units for active older adults 55+, or up to 150 total units of assisted-living/memory care containing a mix of approximately 65% assisted-living and 35% memory care.

2. The current market rate and tax credit apartment market (for qualified low and moderate income individuals) is 98.8% occupied. The market is clearly limited by supply rather than demand.

3. Conventional rental market is tight, in part, due to 407 seniors at W&L and 394 law students. 4. Given the limited number of traditional apartments available, renters who cannot secure a

conventional apartment must occupy single-family homes, duplexes, and other rentals or live outside the Lexington Effective Market Area and commute.

5. Adding 200 non-age-restricted apartments would result in more rental units available for both student households and non-student households. This would free up single family rentals and duplexes for non-students who cannot afford to buy a home of their own due to high housing prices.

6. There are no market-rate apartment properties designated for older adults 55+ in the market area. All development for older adult occupancy is government subsidized.

7. Adding 200 market-rate units for age 55+ would create few vacancies in the existing modern apartment base since there is a limited number of 55+ households in the existing market-rate and tax credit apartment base.

8. The research indicates that apartments for those 55+ are primarily occupied by households wishing to downsize out of home ownership and the time-consuming routines of outdoor maintenance. As a result, developing this type of unit would keep those residents in Lexington and likely result in a period where more single-family homes are available in the local market for new families.

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households proportionally. Of the 1,621 area households aged 75+ in the Effective Market Area in 2010, 27% were in renter-occupied units and 73% were in owner-occupied units. Therefore, adding senior housing with services will be more likely to put additional owner-occupied homes into the for-sale market.

The City’s Appraisal of the property was completed in September 2019. The State’s appraisal indicates a minor discrepancy in the parcel size. Lexington and the State are currently working to resolve this issue and move towards transfer of the property. It remains City Council’s ambition to engage a developer and sell the property as soon as practical. City Council realizes we do not have the expertise for development of such real estate.

While Council has not committed to housing, preliminary analysis indicates that this may be the type of development that best meets Council’s goals. The next step in this project should be for Council to review the project goals, then present the information described above in a public forum to solicit comments, suggestions, and questions from the community. That input will be considered in determining how to proceed with the marketing and development of the parcel.

Councilmember Sigler thanked City staff for arranging the tours of the VDOT property for City Council and the Industrial Development Authority. Mayor Friedman thanked Councilmember Straughan for drafting the memo on Goals for VDOT Property Development.

Moved by Councilmember Dennis Ayers, seconded by Councilmember Leslie Straughan, adopt the memo on Goals for VDOT Property Development.

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

Councilmember Smith asked if Director Glaeser had anything from Public Works regarding the capacity or challenges of developing the VDOT property. Director Glaeser said that he had not heard back from anyone as far as capacity issues with the property. Councilmember Sigler asked where the City goes from the adoption of the memo and suggested posting the memo to the City's web platforms. Mayor Friedman said that the next steps regarding the property are already published, but he was sure the memo will be reported on in local media.

REPORTS AND COMMUNICATIONS BOARDS AND COMMISSIONS

Blue Ridge Resource Authority – F. Friedman and C. Smith

Councilmember Smith reported the following:

The BRRA will meet Monday, February 10, 2020 at 7:00 p.m. where the budget will be presented. He added that they are anticipating a $5/ton increase on tipping fees. Councilmember Smith said that he will not be in attendance, but he will bring a report to City Council at the nest meeting.

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authority members being in the budget. Councilmember Smith said that it was in the original budget, but it was removed.

Main Street Lexington – L. Straughan

Councilmember Straughan reported the following:

The Economic Vitality Committee met last week and they are working on their first ever "stay-to-stay" weekend which is a way to bring telecommuters to Lexington and encourage them to move here. The committee is working to identify who the target audience is and develop a telecommuter profile.

Planning Commission – L. Straughan

Councilmember Straughan reported the following:

• The Planning Commission met on January 23, 2020

• SP 2020-01: A request by Steele Lexington, LLC, for a site plan approval for the addition of parking spaces at the Lexington House at 130 Houston St, Tax Map #: 29-11-5, 29-11-6, 29-11-9 thru 20 was approved 5-0

• There was a discussion on the community engagement for the draft

Comprehensive Plan. This will probably take place in May and most likely be a public meeting with a brief introduction with stations set up around the room with highlights of each chapter of the Comprehensive Plan.

• They also worked on the Green Infrastructure chapter of the Comprehensive Plan

Regional Tourism Board – D. Ayers

Councilmember Ayers reported the following:

The Tourism Board won't meet again until Wednesday, February 19, 2020 so there will be more to report at our next City Council meeting, but I did want to provide a quick update on the January 24 - 26, 2020 BMX biking event at the Horse Center. The event organizer, BMX USA, shares that there were 951 competitors from 37 states as well as riders from Canada, Australia and Norway. The total weekend attendance was 11,983 with an estimated 2,663 local hotel rooms sold over the three days. BMX USA was very happy with how things went and they are already asking the Horse Center for an extended contract for January events in 2021, 22 and 23. One sticking point to a three year agreement is securing enough rooms and pricing from local hotels for event participants and spectators. (The event organizer has asked our tourism director Jean Clark to assist in securing those blocks of rooms.)

Councilmember Smith said that he attended the BMX USA event and it was something to behold and a great event.

Rockbridge Area Department of Social Services – M. Hentz

Councilmember Hentz reported the following:

• The board will meet the third Wednesday of the month

• RADSS Building Lease Update: the lease that was referenced at the last meeting for a two year extension of the current lease is currently being reviewed by the RADSS lawyers and few items in the lease are still being negotiated.

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• The agreement with Baskerville, the firm chosen to do the space analysis study and the request for proposals, is also being reviewed by the RADSS lawyers.

Rockbridge Area Recreation Organization – D. Sigler

Councilmember Sigler reported the following:

• The board met Wednesday, February 5, 2020

• Winter sports season is concluding and doing very well

• All registrations for spring sports are coming up (softball, baseball, volleyball and river runners)

• Conversations have begun with Alleghany regarding this year's football season

• The RARO pitch count policy is going to be revised to be more refined • There will be signs posted at Brewbaker Annex reminding people to not use

the annex as a dog park given that it is a playing field for children

Threshold – M. Alexander

Councilmember Alexander reported the following:

• The two households that applied for assistance have had their homes inspected to review the needs that were requested and are currently under consideration.

• The agencies that have offered to do varying degrees of repairs have been categorized into the degree of repairs they can assist with

• The second group of surveys were approved to go out to the remaining households in the neighborhood and those responses will be reviewed at the next meeting

• Threshold is also reviewing the draft Housing chapter of the Comprehensive Plan

MAYOR

Mayor Friedman reported the following:

• The Central Shenandoah Planning District Commission met on Monday, February 3, 2020: Mayor Friedman introduced City Manager Halasz, they heard a presentation from Regional Census Director Ron Brown and Elizabeth McCartney delivered the CSPDC annual report.

• On January 28, 2020 the GoVA meeting took place at Eastern Mennonite University and at the meeting the board looked at three different proposals and approved all three: an agriculture enterprise center feasibility study that will be matched by the USDA local food promotion program, an

economic gardening project and an industrial hemp research project. The next GoVA meeting will be at Shenandoah University o May 5, 2020.

• He recommended Mary Harvey-Halseth for the Board of Zoning Appeals. Ms. Harvey-Halseth originally applied to serve on the Industrial Development Authority, but after conversations with her, Mayor Friedman offered her name for the Board of Zoning Appeals. Consideration of Ms. Harvey-Halseth's application will take place at the February 20, 2020 City Council meeting.

• Dan Altman will be back in Lexington to search one last time for the key he informed City Council of back in December 2019 that he believes is at Jordan's Point Park.

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• Washington and Lee's Mock Convention will take place the weekend of February 14 , 2020 • He thanked Councilmembers Smith and Straughan for joining him at Virginia Municipal League's

Legislative Day earlier in the day in Richmond, Virginia and provided an overview of the days events.

Councilmember Straughan said that they were able to see Senator Deeds during the reading of the Senate Bills. She added that Delegate Campbell was in session so they were unable to meet with him, but they did meet with the Secretary of Natural Resources Matt Strickler. Councilmember Smith said that he enjoyed the opportunity to meet with Virginia First Cities and the information was short, but had a lot of meaning and was effective.

CITY MANAGER

• Census Update: As we all know, the census is a very important undertaking that establishes not only the number of citizens living in a community; but also the amount of funding that communities may be eligible for from various Federal and State programs and also apportions the number of members each state has in the US House of Representatives. It is important for us all to participate in this once in 10 year activity. It is estimated that for every person uncounted in the census a community will lose $2,000 annually in revenues from various entities. Also, recently the Weldon Cooper Center estimated that the City of Lexington has added 392 people to our local population since 2010. At $2,000 a year those 392 people potentially create $784,000 in new revenues in Lexington. Let’s count them all! A local, Complete Count Committee is being organized for Lexington, Buena Vista and Rockbridge County. The first meeting will be February 12, 2020, 1:00 to 4:00 p.m. at the Vista Links Clubhouse Pavilion, in Buena Vista. The census also needs part time and full time help and pays between $26 and $40 per hour. Go to 2020census.gov/jobs for more information.

• Finance Director Search: City staff has begun reviewing possible candidates for our Finance Director position. We have received applications from several qualified candidates. Our goal is to select candidates for interview and reach a decision, soon after the closing date for applications on February 24, 2020. We will accept and consider applications until that date, so for those who are interested, you still have until then to get them to our Human Resources Director Robby Bailey.

• Jordan’s Point Park Public Input: Since review and comment on the Jordan's Point Park Master Plan produced requests from City Council and the public for more opportunities for public comment, we have taken several actions to capture more public input. We continue to seek input on the Jordan’s Point Park Master Plan. We have provided ongoing exercises in cooperation with Lexington City Schools in our Grade School and Middle School, we are working with our consultant LPDA to see if we can do some programs and classroom surveys in the High School and there is a link on the City website within the page devoted to the Jordan's Point Park Master Plan. We are most excited to try to get comments from our younger residents, as it is they who will be using the parks in 20 or 30 years – not the majority of us here planning for these improvements.

• Local Jail Costs: While the Rockbridge Regional Jail budget has not been finalized, we should

anticipate that costs may go up substantially. One of the cost centers that has been and is continuously difficult to manage is the number of detainees at the jail. While the jail is capable of housing only a fixed number of detainees, the actual number that we need to house keeps increasing at a rapid pace. This leads to the necessity of leasing beds in other local jail facilities. These leased beds are provided at a premium price and we have 100+ detainees in other facilities at any given time. This translates into $100,000s of additional expenditure that will be shared by the City and our partners Buena Vista and Rockbridge County.

• Budget Progress: City staff – especially our Finance Director, Gary Swink are working hard and continuously on the FY21 budget. Also, others are hard at work in our regional entities such as the Regional Jail, Landfill, Communications Center and Maury Service Authority. While we have not

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received final budgetary input & requests from our regional service providers, it does appear that a number of them are going to require substantial budget or rate increases. We expect to receive final input in the very near future from these entities.

• The Mill Race at Jordan’s Point Park: As you know, there is concern that the old rock walls of the mill race are supported by wooden piers; and it is believed that these piers will decay at an accelerated rate if they are exposed to the air. Some members of the community are quite concerned that a portion of this historic site could be lost. In response to this concern, the City has contracted with McMullan Consulting Engineers to sample and test the wood that remains as footing for many of the stone walls in the mill race. This work is scheduled to occur next Monday or Wednesday (February 10 or 12, 2020). However, the steady rains we have had and that are expected may delay this work. The cost for this review will be $6,700 and the money will come from funds that will not be used for possible grant funded projects.

• Lexington House Apartments: Work continues in preparation for issuing the bonds for the Lexington House Apartments renovations. Currently, the IDA is set to meet and approve the issuance on

February 24, 2020. The closing is then scheduled for March 11, 2020. This is an excellent project for the City and those residents who live in Lexington House and will get nice upgrades to their homes. • Tree Removal at Brewbaker Annex: Some of you may have seen or become aware of the tree removal

that took place at the playing fields at Brewbaker. A dozen or more dead, dying or unhealthy trees that were immediately adjacent to City property were causing damage and posed a potential safety risk to those using the fields or watching play on the fields. With permission from the adjacent land owner these trees were removed this past week by RARO.

• Mock Con Parade: Rocky Trudgeon, RARO Director and other City staff are working to

accommodate the Mock Con Parade scheduled for Friday morning, February 14, 2020. With the rain we are receiving and anticipate, there is some concern that the parade line-up on the Brewbaker playing fields will cause significant damage to the playing fields. We are currently exploring options and hoping for less rain than forecast.

• EMS Response Times: The annual review for Lexington Fire Department EMS response times has just concluded. Of note, the 2019 review has established that the overall response time to EMS calls is the best year ever! Congratulations Lexington Fire Department!

Councilmember Smith said that he attended the Maury Service Authority's most recent work session and after looking at the proposed budget and the forecast over the following few years, it looks like water rates will go up 10% every year.

Resolution 2020-02 Setting the Personal Property Tax Relief Percentage for 2020 at 60%

Commissioner of Revenue Karen Roundy provided the following background on the resolution: Annually, the state provides money for tax relief from personal property taxes as set forth in the Virginia Code and cited in the attached Resolution 2020-02. The figure of 60% relief has worked very well for the City, and has maintained continuity for our revenue streams and consistency for the taxpayer.

Patricia S. DeLaney, City Treasurer and Karen T. Roundy, Commissioner of Revenue have considered the vehicle values as set by NADA and the amount of surplus from previous years and recommend that the rate for tax relief should be continued at 60%.

There are no costs from the City’s budget associated with this program.

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approve Resolution 2020-02 setting the Personal Property Tax Relief Percentage for 2020 at 60%

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

CITY ATTORNEY

City Attorney Jenkins reminded everyone that the hearing on a motion for partial summary judgement for Enfield Water Tower property is February 7, 2020 at 2:00 p.m. in the Rockbridge County Circuit Court.

NEW BUSINESS

None.

CLOSED MEETING

Closed Session in accordance with Section 2.2-3711, Subsection A, (3), Discussion of the acquisition of real estate for a public purpose.

Moved by Vice-Mayor Marylin Alexander, seconded by Councilmember David Sigler, that Lexington City Council convene in Closed Meeting in accordance with Section 2.2-3711, Subsection A, Paragraph 3: of the Code of Virginia, a closed session for the purpose of discussing the acquisition of real estate for a public purpose.

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

Moved by Vice-Mayor Marylin Alexander, seconded by Councilmember Dennis Ayers, that Lexington City Council end this closed meeting and reconvene in open meeting.

Carried by the following votes:

Ayes: Vice-Mayor Marylin Alexander, Councilmember Dennis Ayers, Councilmember Michele Hentz, Councilmember David Sigler, Councilmember Chuck Smith, and Councilmember Leslie Straughan

WHEREAS, the Lexington City Council has convened a closed meeting on this date pursuant to an affirmative

vote in accordance with the provision of the Virginia Freedom of Information Act, specifically Section 2.2-3711, Subsection A, Paragraph 3 of the Code of Virginia, a closed session for the purpose of discussing the acquisition of real estate for a public purpose.

WHEREAS, Section 2.2-3711 of the Code of Virginia requires a certification by this City Council that such

meeting was conducted in conformity with Virginia law;

NOW, THEREFORE BE IT RESOLVED by the Mayor and Council of the City of Lexington, Virginia, that

the Council hereby certifies that, to the best of each member’s knowledge, (1) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to

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which this certification resolution applies, and (2) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Lexington City Council. Carried by the following votes:

Ayes: Marylin Alexander, Dennis Ayers, Michele Hentz, David Sigler, Chuck Smith, Leslie Straughan Nays:

Date Resolved: February 6, 2020

ADJOURNMENT

Mayor Friedman adjourned the meeting at 10:10 p.m.

Mayor Frank W. Friedman, Lexington, VA

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