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HomeMy WebLinkAboutMinutes - City Council - 08/03/2015 CITY COUNCIL 3 AUGUST 2015 The South Burlington City Council held a regular meeting on Monday, 3 August 2015, at 6:30 p.m., in the Conference Room, Audette Public Works Building, Patchen Road. MEMBERS PRESENT: P. Nowak, Chair; H. Riehle, C. Shaw, M. Emery ALSO PRESENT: K. Dorn, City Manager; T. Hubbard, Deputy City Manager; J. Barlow, City Attorney; A. Lafferty, Attorney; P. Conner, Director of Planning & Zoning; I. Blanchard, Project Manager; J. Rabidoux, Public Works Director; T. DiPietro, Stormwater Superintendent; B. Fisher, Wastewater Superintendent, B. Nowak, J. & F. Kochman, S. Dooley, L. Bresee, A. Bortz, B. Servis, K. Ryder, Sen. M. Sirotkin, L. Michaels, M. Esposito, J. Smith, M. Ohlsen, K. Mack 1. Agenda Review: Additions, deletions or changes in order of agenda items: No changes were made to the Agenda. 2. Possible Tour of Sonny Audette Public Works Department Building: Mr. Rabidoux led an indoor and outdoor tour of the building and grounds. 3. Comments & Questions from the public not related to the agenda: There were no issues raised. 4. Announcements and City Manager’s Report: Mr. Dorn: The City has received a 5‐year renewal of its “New Town Center” designation Talks are continuing on the solar project at the landfill. Attorneys will be meeting on Wednesday. The South Burlington Business Association will hold a “Meet Your Councilor” event on 18 September, 4‐7 p.m. The Citifest celebration of South Burlington’s 150th anniversary will be held on 15 August at Veterans Park. Designs for Baycrest Park are being worked on. The 1986 School Annual Report depicts “city center” in an almost recognizable form. Mr. Hubbard: Outlined the events for the Citifest celebration including rides, tours of Wheeler Park, free ice skating, food/beverages, evening fireworks, and a formal ceremony at 4:30. There will be a huge “birthday cake,” gift of the Rotary. Mr. Hubbard recognized the efforts of the Rotary, Maggie Leugers, and all city departments in staging this event. Council members then reported on meetings and events they had attended. 5. Consent Agenda: a. Sign Disbursements b. Approve Minutes of 20 July 2015 Ms. Emery moved to approve the Consent Agenda as presented. Ms. Riehle seconded. Motion passed 4-0. Ms. Riehle asked for an update at the next meeting regarding legal costs in connection with the City of Burlington litigation. 6. Review of Department of Public Works Operations and Programs: Mr. Rabidoux reviewed the make-up of the Department. The 33 employees are divided among stormwater, wastewater, highway, GIS, maintenance. The Department maintains a fleet of 50 vehicles. Mr. Rabidoux noted that the Stormwater Utility is the first such utility in Vermont, and Tom DiPietro often shares experiences throughout New England. The city owns more than 200 “outfalls (pipes that go to a facility), over 80 miles of pipe and over 3200 drains. These numbers change weekly as more developments come on line. Stormwater is regulated by a federal MS4 permit. There are things which the city is mandated to do regarding impaired watersheds. These things will cost about $40,000,000., some of which will be covered by grants. Mr. Rabidoux noted that the Army Corps project in the Spear Street area is ready to go to bid, and there is a grant for $250,000 for work at the Village at Dorset Park. The Wastewater Department has 6 certified operators in the Airport and Bartlett Bay facilities. These facilities handle approximately 4,500,000 gpd combined. The EPA is expected to have new phosphorus measurements coming into play soon. The Highway Department maintains all the roads in the city, including the recreation paths. Mr. Rabidoux noted that a lot of the maintenance work that other communities pay contractors to do is done “in house” in South Burlington. Between grading and structure adjustment, this saves taxpayers about $120,000 a year. The Department recently began doing streetlight maintenance, which will save taxpayers about $40,000 a year. The aerial boom truck which the Department got for $15,000 paid for itself in a month. The Department also purchased a wood chipper, which has paid for itself many times over. The Department also helps CWD repair water lines. They can also install sidewalks and curbs, which other communities have to pay extra for. Mr. Kochman suggested the placing of a sign on Kimball Ave. directing people to the Police Station as it is hard to find, especially at night. Mr. Kochman also asked if there are people dedicated to park maintenance. Mr. Rabidoux said there are a foreman and 2 fulltime park people, 2 seasonal employees (to mow lawns), and a certified arborist. Ms. Emery asked about painting of street lines. Mr. Rabidoux said that they couldn’t do any of that in June due to the amount of rain. They have now completed the 18 crosswalks on Farrell Street, which took 3-4 weeks. Ms. Emery asked about Kennedy Drive. Mr. Rabidoux said they have a quote from a contractor to do that, and the work is authorized. Ms. Nowak asked the number of miles of roads in South Burlington. Mr. Rabidoux estimated about 90. Ms. Nowak also said she was told the CWD is renowned throughout the country. Mr. Rabidoux said this June they won “America’s Best Tasting Water” award for the size of the operation. Mr. Michaels said the Department does an awesome job of snow removal in Queen City Park. Mr. DiPietro then outlined the work being done by the Stormwater Utility including: flow restoration plans for all 5 watersheds (including financing plans), dealing with expired stormwater permits (70 or so in South Burlington), currently working with 5 neighborhoods to take over their stormwater systems when they are up to standard, culvert work, weather station, and providing updates for the Comprehensive Plan, etc. Mr. DiPietro then introduced Dave Wheeler, the new Assistant Stormwater Superintendent. Mr. Fisher reviewed his background leading to his position as Water Quality Superintendent. He stressed that South Burlington has the premier water quality facility in the State. Mr. Fisher noted that the new TMDL should be out very soon (regarding phosphorus). This was appealed and is being worked on with the EPA. Phospherus reduction has been a huge success and is the only “lever” the EPA has. Mr. Fisher explained what will trigger an upgrade, and he felt the city can meet the standard at Airport Parkway. Bartlett Bay may be a different story as it is an older/different design. 7. Consider and possibly approve amended settlement agreement among the parties In Re Highlands Development Co., LLC, and JAM golf, LLC, Docket #194-10-03 Vtec (Vt. Super. Ct. Envtl. Div.); and JAM Golf Long Drive Subdivision Application Completeness, Docket No. 38-3-11 Vtec (Vt. Super. Ct. Envtl. Div.). Possible executive session to discuss pending litigation where the premature disclosure of information would put the City of South Burlington at a substantial disadvantage: Mr. Barlow reviewed the history. Ms. Emery then moved that the Council meet in executive session to discuss pending litigation where the premature disclosure of information would put the City of South Burlington at a substantial disadvantage, the executive session to include Mr. Barlow, Ms. Lafferty, Mr. Conner, Mr. Dorn and Mr. Hubbard. Ms. Riehle seconded. Mr. Shaw questioned the need for an executive session. Mr. Barlow said there could be question regarding negotiation strategies which the Council might not want to discuss in public. The settlement agreement will, however, by made in public. In the vote that followed, the motion passed 3-1, with Mr. Shaw voting against. When the Council returned from executive session, Mr. Emery moved to approve the agreement. Ms. Riehle seconded. Mr. Shaw encouraged members to walk the property at a time when Mr. Chittenden has returned. Members were willing to do that. Mr. Dorn agreed to make arrangements for a “special meeting” of the Council to walk the property in question. Ms. Emery moved to table the motion. Ms. Riehle seconded. The motion to table passed 4-0 8. TIF Policy First Reading: Ms. Blanchard reviewed the history. She noted that the city has looked at TIF districts throughout the country and has drafted a policy that deals with $23,000,000 invested in public infrastructure (roads, stormwater, etc.). The policy provides the regulatory process by which the City Council reviews potential projects. These are projects that would otherwise not be achievable and must be of a design that “builds community,” makes efficient use of land, has a higher energy standard, and addresses transportation (with more orientation to pedestrians, bicyclists, etc.). The elements of the policy include: a. Statement of purpose b. Base eligibility requirements c. Amount of community investment d. Surety requirements e. Review process f. Options for community investment (e.g., a Library) g. Development agreement contents h. Exclusions i. Effective date and sunset date Mr. Dorn said staff will ask for final approval at the next meeting. Ms. Emery asked about underground power lines. Ms. Blanchard said that is part of the Form Based Code; however, she will check on that. Ms. Emery also asked where the parking standards came from. Ms. Blanchard said they were from counts at development projects in various communities. Ms. Emery said she would like to see the Library closer to the top of the list. Ms. Nowak asked for clarity on “due diligence review.” Ms. Blanchard said that reviews can be very time-consuming, and staff has been working with the Form Based Code Committee to streamline the process. They are looking toward standards that are easy to understand. Ms. Nowak said she was concerned that changes don’t happen without city input. Mr. Shaw said he felt that in the T-5 section, there should be an inclusion of potential public space at the top of buildings, where there are views, etc. Ms. Riehle felt the framework will be very helpful and will help meet substantial goals for the city. Ms. Nowak particularly liked the “front‐loading” of incentives. Members were asked to direct any questions or ideas through Mr. Dorn. Ms. Riehle asked the process for approval. Mr. Dorn said they can open the floor for public comment at the next meeting. Members supported that. Mr. Dorn said staff would like something in place so it can be adopted by the first meeting in September. This will give guidance to developers as to what they can and can’t do. Mr. Dorn stressed that this is a very well done project and praised the effort of Ms. Blanchard on what is a very important document. 9. Staff recommendation on possible ballot item authorizing public process in TIF district: Ms. Blanchard said the city will have to specify which TIF projects are on the ballot. She noted that there are only a few times left at which the public can vote on projects. Because of expenses that will be incurred in the next few years, it will be good to know the public is behind the projects. Ms. Blanchard also noted that some projects are very small and can be done with very little exposure to the city. Ms. Blanchard then reviewed some of the printed answers to some of the questions raised by Council members and others. Mr. Dorn said that if the city goes to ballot in November, it will be possible to go to the voters for a bond in March. It might also be possible to do both in November. Ms. Nowak asked about adding projects. Mr. Dorn said projects can be added as long as they are in the plan. Ms. Blanchard added that the city has until March 2022 to incur debt on projects in the plan. Mr. Dorn asked if the Council is “on board” with the 3 projects. Mr. Shaw felt the small projects were good and that the Library is very popular. Ms. Emery asked why City Hall isn’t included. Ms. Blanchard said it is essentially a cent cost, and the current building is still being evaluated. Mr. Dorn added that they are looking at City Hall as being a “second or third tier” project. The TIF would pay only 10% of that cost, and the city has to be sure that private development happens first. The TIF will pay 30% of the Library cost. Ms. Dooley felt the city should acquire land for a City Hall to be sure it is available. Mr. Dorn said that right now there is no development project on the table. The city would like to see what opportunities are available with a partner before making a decision on the location. 10. TIF Reimbursement Resolution: Ms. Blanchard explained the nature of the Resolution. It will allow the City to save reserve funds and recreation fees for other purposes. Funds can be reimbursed when TIF funding is available. Ms. Emery moved to approve the TIF Reimbursement Resolution as presented. Mr. Shaw seconded. Motion passed 4-0. 11. Council Update and Discussion Regarding Inter-Municipal Shared Services Models: Mr. Dorn explained the need for a ballot item to host an “authority” for inter‐municipal shared services. He indicated communities are looking most immediately at stormwater. Other communities are looking at setting up a model, but in lieu of this would look at a shared services model that could do a better job than having communities go it alone. Mr. Dorn noted that any agreement would require approval of the State Legislature. He added they hope to do this at a November vote so there is a chance of enactment in the 2016 Legislative session. Mr. Shaw suggested a better, shorter name for the model. Members favored moving forward on this. 12. Consider additional appointments to Committees: Ms. Nowak noted that although Naa Aku Shika Addo was not appointed to the committee she had requested, she is willing to serve on both the Recreation and Leisure Arts Committee and the City Charter Committee. Ms. Riehle moved to appoint Naa Aku Shika Addo to the Recreation and Leisure Arts Committee and the City Charter Committee. Ms. Emery seconded. Motion passed 4-0. 13. Other Business: a. Items Held From Consent Agenda: There were no items held from the Consent Agenda. b. Review of attendance percentages for various committees: Ms. Nowak read the list of attendance percentages as follows: Planning Commission – 84% DRB – 87% City Council – 91% Natural Resources Committee – 80% Energy Committee – 77% Recreation/Leisure Arts Committee – 86% Library Board of Trustees – 89% Bike/Recreation Committee – 91% Sustainable Agriculture – 54% Chamberlin Neighborhood Committee – 75% Underwood Property Committee – 87% Ms. Nowak also noted individuals with 100% attendance at committee meetings. c. Parking Issues: Ms. Nowak suggested a separate meeting regarding parking issues city-wide, similar to what was done with noise issues. Issues include parking on lawns, unregistered cars parking in the street year after year, trash receptacles left in the street 24/7, etc. Mr. Dorn suggested holding the meeting the 3rd or 4th week in September. d. Other: Mr. Shaw asked to do a “Councilors’ Corner” for the Other Paper. Members were OK with this. Ms. Riehle asked for a discussion one night on late night discussions and setting guidelines for discussions. Ms. Nowak said she will be “more dogmatic” about when to “move on.” Ms. Emery asked where the Council stands with regard to an East Terrace Overlay District. Ms. Nowak said there has to be a survey first, and people also need to know what such a district would mean to them. Mr. Dorn said he was surprised at the last meeting. He had been told that the St. Paul Ordinance was the way to go, and at that meeting it seemed it wasn’t the way. Ms. Emery thought residents just wanted to “tweak” the St. Paul Ordinance about “what is a family?” Mr. Dorn said that is a very big “tweak.” He also didn’t hear a clear message on parking, the overlay district, etc. Ms. Riehle said people see this as a larger issue that has impacted their neighborhood, and they are looking for a “larger way” to address it. Mr. Dorn said staff can put together a draft of a survey this is more general than just the St. Paul issue. Mr. Shaw asked whether the city has the option to have a higher assessment for rental property and whether it might inhibit the sale of property for rentals. Mr. Dorn said the average assessed value is $279,000 with some properties below that and some as high as $400,000. Ms. Nowak questioned how one would deal with an owner who lives in a house and rents out a room or 2. As there was no further business to come before the Council, Mr. Shaw moved to adjourn. Ms. Riehle seconded. Motion passed 4-0. The meeting was adjourned at 10:30 p.m. Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. CITY COUNCIL     20 JULY 2015        The South Burlington City Council held a regular meeting on Monday, 20 July                              2015, at 6:30 p.m., in the South Burlington Fire Station, 575 Dorset Street.  MEMBERS PRESENT: P. Nowak, Chair; H. Riehle, C. Shaw, M. Emery, T. Chittenden  ALSO PRESENT: K. Dorn, City Manager; T. Hubbard, Deputy City Manager; P. Conner, Director of  Planning & Zoning; Chief D. Brent and other members of the South Burlington Fire Department;  J. Rabidoux, Department of Public Works; B. Nowak, S. Dooley, B. Bull, C. Hafter, M. Luters, J.  Kochman, B. Melizia, S. Loyer, S. Merrick, F. Kochman , E. Hoskin  1. Agenda Review: Additions, deletions or changes in order of agenda items:  No changes were made to the Agenda.  2. Tour of Fire Department/Demonstration:  Chief Brent introduced Council members and members of the public to the new fire engine  which arrived last week.  The Chief noted that the new engine provides increased organization,  safety and ergonomics.  Features include side and front airbags and rollover protection.   Everything needed by firefighters is reachable from the ground.  It is anticipated that the new  engine will be in service in 3‐4 weeks.  The old engine will be stripped and traded in.  A demonstration of breathing apparatus followed.  The chief noted that all new recruits are  trained using the techniques demonstrated.  Following the demonstration, the Chief updated Council members on Fire Department activities  and potential needs:  This has been another busy year with 3227 emergency calls (up 177 from the past year).  Calls  are up 33% over a 10‐year period.  The Department responds to approximately 9 calls per day.  The Chief emphasized the importance of the CIP in keeping a good “rolling stock” and for the  replacement of all breathing apparatus.  The number of structures in the city continues to rise.  The city now has the first 5‐story wood  structure in the state.  He stressed the need to recognize the limitations of the department.  In  viewing development in the city, the Chief noted that each project is not a “big deal”; two  dozen projects is another story.  He noted that in responding to Act 250 questionnaires, he has  to assess whether a project will place an “unreasonable burden” on the Department.  There  may come a time when he has to answer “yes” to that question.  CITY COUNCIL  20 JULY 2015  PAGE 2    Ms. Nowak noted that the Chief has said “wouldn’t it be nice to have a CIP for personnel.”  She  said the Council would look for the Chief’s guidance on that.    3. Comments & Questions from the public not related to the agenda:  There were no issues raised.  4. Announcements and City Manager’s Report:  Mr. Hubbard:  Beginning today, the 150th anniversary banners are going up in the city.  Plans for  the Cityfest are progressing.  It will be held on 15 August in Veterans Park.  A “formal” part of  the festivities will take place at 4:30 and will include the revealing of old city documents and the  opening of the time capsule from the Bicentennial.   Construction has begun on the second floor of the Police Station will be used by the VA  and other renters.   The 3 August City Council meeting will be held at the Public Works Building.   The Human Resources Investment Plan will be unveiled to Department Heads this week.   It will come to the City Council in September.  Council members then reported on meetings and events they had attended.  5. Consent Agenda:  a. Sign Disbursement  b. Approve Minutes for 6 July 2015   Mr. Shaw moved to approve the Consent Agenda with a noted spelling correction in the  Minutes.  Ms. Riehle seconded.   Motion passed unanimously..  6. Presentation on Fire, Ambulance and Rescue Services:  This item was covered in Chief Brent’s earlier report.  7. South Burlington Sanitary Sewer “Smoke Test” presentation:  Mr. Rabidoux explained that there is a small portion of South Burlington (Hadley to Proctor;  Route 7 to Rice High School) that discharges sewage to the City of Burlington.  This has been  CITY COUNCIL  20 JULY 2015  PAGE 3    working well in the past.  South Burlington paid Burlington $100,000 a year.  Now, the rate in  Burlington has doubled.    A study has been done as to how to get sewage from this area of South Burlington to the  Bartlett Bay Plant.  The state wants to know exactly how many gallons (roughly 70,000 gpd) this  will involve.  The last step in getting this exact figure is to identify “illegal connections.”  This is  done by a “smoke test.”    Mr. Rabidoux explained that the “smoke” is a non‐toxic, non‐hazardous mist that is injected  into the system.  If it comes out where it shouldn’t, or if there is a break in the system, the city  can then get that flow out of the system.  This has never been done in South Burlington as far  as anyone knows.    Mr. Rabidoux said he felt this is the right financial solution for the city.    Ms. Nowak asked what will happen if an illegal hookup is discovered.  Mr. Rabidoux said that  with anything illegal, it will be discussed with the property owner.    Ms. Riehle asked if this technology could be used in Oak Creek to find out where some of the  hookups go.  Mr. Rabidoux said theoretically it could though the technology hasn’t been  applied in that manner.  It is, however, solving the same kind of problem.  Mr. Hafter noted  they once did this with a whole city in North Carolina.    Ms. Riehle asked the cost of the process.  Mr. Rabidoux said it would be $21,000.    No issues were raised.    8. Council review and discussion of residents’ request for signage related to truck  brake noise:    Mr. Rabidoux said Public Works was first contacted by a resident near Kennedy Drive last year  and asked what we could do.  The resident was informed that the city doesn’t own that road  and can’t legislate what goes on it.  There is a yellow sign that requests drivers not to use those     CITY COUNCIL  20 JULY 2015  PAGE 4  brakes, and the sign was moved to be more obvious.  Mr. Rabidoux said he has an issue with  signs that are not enforceable.  It tends to make other signs meaningless.    Mr. Rabidoux said he has also contacted the Vermont Agency of Transportation.  He read the  State’s response indicating that they will not install brake prohibition signs on state highways as  they are necessary for safety.    Mr. Chittenden asked if reducing the speed limit might help.  Mr. Rabidoux said possibly after  the traffic signal.    Members noted they drive the road frequently and have never noticed the existing sign.    On another issue, Ms. Riehle asked about “temporary signs.”  She asked if the city is responsible  for dealing with them.  Mr. Rabidoux said if it is on a state road, the state is responsible.  He  added that South Burlington has a policy that disallows temporary signs except for political  signs within 2 weeks of an election.  He said his department, if notified, would take care of any  temporary signs on city roads.    Mr. Dorn said he would contact the residents who asked about the air brake signs and tell them  the State’s response.    9. Interview for Volunteer Committees, Boards, and Commissions:    The Council interviewed the following applicant:      Chuck Hafter ………………………………..City Charter Committee.    10. Annual Report to the Council from PACT:    Ms. Merrick reported that PACT is entering its 8th year.  She then reviewed some of the  activities from the previous year including dinners at the Middle School, involvement with the  High School math program, a UVM course “Dollar Enterprise” with all profits being donated,  “alumni” feedback (including one person who hopes to start a similar program in another  community).    CITY COUNCIL  20 JULY 2015  PAGE 5    Mr. Loyer commented on “dialogue night” where participants ask to stay longer to continue  discussions on meaningful topics.    Mr. Loyer also directed attention to the financials.  He stressed that they operate on a very lean  budget. The majority of their funds go to events and insurance.  Ms. Merrick thanked the City  Council for its past support and thanked members who attend the events.    Ms. Nowak asked if there is anything else the city can do to help PACT.  Ms. Merrick said they  will discuss this with the teenagers.  Mr. Chittenden suggested tours of the school for alums  during which they could be asked for contributions.  Ms. Merrick noted there is now a  “mentoring relationship” between the classes of 1967 and 2017.    11. Wheeler Park Management Plan:    Ms. Melizia identified Natural Resources Committee members who worked on the Plan.  She  noted that the plan focuses on the natural area, not on the house and gardens which the city  manager.    The areas that need to be attended to include the forest, wetland, wildlife, invasive species and  trails.      Ms. Melizia introduced Emmett Hoskin, a UVM inters who has worked for the Vermont Youth  Conservation Corps and has a wealth of knowledge.  He was tasked to get the trails in better  condition and is doing a wonderful job.  Mr. Leugers noted that the money that had originally  been for trail work was not available, but when 2 VTrans projects were delayed that money was  redirected to the trail work.  A full crew will be starting work tomorrow under Mr. Hoskin’s  direction.  This will save the city about $23,000.    Mr. Hoskin said he has previous done drainage work and historical restoration in the  Woodstock area and has already been doing some repairs to the trails on his own.  The  remaining work will be focused on restoring areas with drainage issues and making trails more  inviting to walk on.  Some trails have been closed as they were created by animals and go  through the wetland where they shouldn’t be.  A new map is being made and new signage will  be provided.  CITY COUNCIL  20 JULY 2015  PAGE 6    Ms. Melizia advised that on 15 August (during the city’s 150th anniversary celebration) there will  be trail walks for the public.    Mr. Dorn asked how a ½ cent tax for park improvement could enter into the park upkeep.  Ms.  Melizia said this would be very valuable. The Natural Resources Committee has been discussion  this possibility.    12. City Council working session on the East Terrace/Spear Street neighborhood  issues; presentation of neighborhood map representing “St. Paul Ordinance”  compliant overlay district and other matters:    Mr. Dorn reviewed the history.  He indicated that the purpose of this discussion is to determine  what additional information is needed.    Ms. Nowak said she saw two important considerations:    a. Conversion of houses to rental units  b. Nuisances: noise, parking, garbage, more than 4 unrelated occupants of a  rental unit    Ms. Nowak noted that every home in the area would be affected by an “overlay district.”    Mr. Conner then explained the nature of an overlay district.  He said they tried to emulate what  is shown on the St. Paul Ordinance.  It puts an overlay on homes, any portions of which are  within 150 feet of an existing rental unit(s).  One significant difference between the St. Paul and  possible South Burlington ordinances is that the South Burlington ordinance would not  differentiate between students and other renters.    Ms. Nowak said she has asked Mr. Chittenden to spearhead a forum for residents throughout  the city who are concerned with noise and to solicit suggestions on noise mitigation, including  penalties.  Mr. Chittenden said he feels there is a need for steeper penalties. Burlington  penalties are higher, and they have seen a change in behavior.      CITY COUNCIL  20 JULY 2015  PAGE 7    Ms. Nowak noted that with the taking down of the 3 UVM dorms, there will be more students  housed at South Burlington sites, including The Sheraton.  She suggested the possibility of  having someone posted to be sure students get home quietly.  She also stressed that property  owners have a stake in this as well.  They are responsible for their tenants; if tenants cause a  problem, it is the landlords’ problem as well.    Ms. Nowak identified parking as the second difficult problem.  She noted that she has asked Mr.  Shaw and Ms. Emery to look at this issue city‐wide with a group of representatives from various  areas of the community.      Ms. Dooley cited the need to redefine the concept of a “household.”  She suggested possibly  reducing the number of unrelated individuals who can reside in a single family house.  She  recommended adopting the overlay district but noted that existing rentals would be  grandfathered.  Ms. Dooley also noted that in one city, there are now incentives for converting  previous rentals back to single family residences.  Ms. Nowak said she would want to know the  legal ramifications of any actions.    With regard to a rental registry, Ms. Nowak noted the city has 3000 rental units, a number of  which never have passed the state code when built.  Burlington has 9000 rental units and a  staff of 9 to administer them.  South Burlington has only one person who has other  responsibilities as well.  Mr. Conner noted that Burlington has incentives that involve fewer  inspections by the city.    Ms. Nowak felt a limit to the number of unrelated people in a residence is virtually  unenforceable. A landlord can rent to 4, and suddenly there are 6 living there.  There are also  places in the city with several families living together in a small home.  That is legal, no matter  how many cars, etc., while more than 4 students is not.  And having 3 rowdy students is legal.  Ms. Nowak stressed the need to know where the city’s liabilities are and how to make any  action enforceable.    13. Draft employee appreciation policy amendment:    Ms. Emery read the proposed amendment.    CITY COUNCIL  20 JULY 2015  PAGE 8    No issues were raised.    Mr. Shaw moved to approve the amendment as presented.  Ms. Riehle seconded.  Motion  passed unanimously.    14. Other Business:    a. Items Held from the Consent Agenda:    There were no such items.    b. Other Concerns:    Mr. Shaw suggested eliminating items #5, 6 and 7 from the list of issues raised by  Councilors/public that have not been on a prior agenda.  Members agreed.    Mr. Shaw suggested adding a discussion of a crosswalk or improved signalization on West Twin  Oaks Terrace, where he felt a dangerous situation exists for pedestrians.  Members agreed.    15. Consider entering Executive Session to review and discuss applications for City of  South Burlington committee appointments, consider a request from a resident  regarding connection to the City of South Burlington Water System where private  matters of individual health status will be discussed and discuss City Manager’s  evaluation and contract:    Ms. Riehle moved to meet in Executive Session to review and discuss applications for  committee appointments, consider a request from a resident regarding connection to the City  of South Burlington Water System where private matters of individual health status will be  discussed and to discuss the City Manager’s evaluation and contract.  Executive Session to  include the City Manager, Deputy City Manager and guests.  Mr. Chittenden seconded.  Motion  passed unanimously.  Members entered Executive Session shortly after 10:00 p.m.    The Executive Session ended at 11:56 p.m., and members resumed open session.    CITY COUNCIL  20 JULY 2015  PAGE 9    Mr. Chittenden moved to grant a limited exemption to the City’s water ordinance, hook‐up  requirement, to Mr. & Mrs. Thomas Papp in light of extraordinary circumstances beyond their  control with the stipulation that normal City water services be “stubbed” into the house, that  the water that is installed be fully metered to the specifications of the Director of Public Works  and approved by the Director upon installation and that the homeowner pay for all fees for  water and sewerage as if the City water connection had been made.  Mr. Shaw seconded the  motion which passed unanimously.    Ms. Riehle then moved that the Council make the following appointments:     Bike/Pedestrian Committee ……………………………………..Jamieson Goodwin……….3 yr. term                                                                                                               Amanda Holland…………..3 yr. term             Robert Britt ………………….3 yr. term             Donna Leban ………………..2 yr. term           remaining     CCTA ………………………………………………………………………..Thomas Chittenden……….2 yr. term           remaining     City Charter Committee…………………………………………..Peter Taylor…………………..3 yr. term           Chuck Hafter…………………..2 yr. term                                                                                                                           remaining       Development Review Board ……………………………………Tim Barritt …………………….4 yr. term           Matthew Cota     Energy Committee…………………………………………………..Thor Vue ……………………..3 yr. term           Don Cummings ……………3 yr. term            Wayne Maceyka …………3 yr. term            Patti Tashiro ……………….2 yr. term                                                                                                                          remaining        CITY COUNCIL  20 JULY 2015  PAGE 10     Library Board of Trustees ……………………………………….Susie Merrick ……………….3 yr. term           Beth Wood …………………..3 yr. term           Margaret Ann Cross………3 yr. term     Natural Resources Committee…………………………………Melissa Cuke …………………3 yr. term                                                                                                             Patrick Clemins ……………..3 yr. term           Betty Melizia………………….3 yr. term     Pension Advisory Committee…………………………………..Spencer Baker…………………1 yr. term     Planning Commission………………………………………………Bernard Gagnon……………..3 yr. term          Duncan Macdonald…………4 yr. term          Art Klugo…………………………4 yr. term     Recreation & Leisure Arts Committee………………………Mary Olmsted ………………3 yr. term           George Donovan …………..3 yr. term                                             Mike Simoneau………………3 yr. term     Public Art Committee………………………………………………Amanda Holland…………….2 yr. term          Trice Stratmann………………2 yr. term          Mary Olmsted…………………2 yr. term     Red Rocks Park Committee…………………………………….Melissa Cuke …………………..3 yr. term    Mr. Shaw seconded.  Motion passed unanimously.    As there was no further business to come before the Council, Ms. Riehle moved to adjourn.  Mr.  Shaw seconded.  Motion passed unanimously.  The meeting was adjourned at 12:00 a.m.         ________________________________       Clerk           575 Dorset Street South Burlington, VT 05403 tel 802.846.4107 fax 802.846.4101 www.sburl.com       TO: Kevin Dorn, City Manager  FROM: Ilona Blanchard, Project Director  SUBJECT: City Center TIF Investment Policy  DATE: July 31, 2015  BACKGROUND:              Last March, the City Council discussed a framework for a  policy to establish parameters, processes, and guidance City  use of TIF District Financing to directly benefit private  development.    In South Burlington, under City’s development regulations  many developers build their own roads which become public  or private, their own stormwater treatment, undertake their  own wetland mitigation, and build both private and public  parks.    Over the next seven years, the City will have the opportunity  to invest 23.2 million dollars in private sector projects to  provide these items that the City would not provide  elsewhere in South Burlington.      Based on the framework discussed last March, the visioning,  planning and regulatory public outreach and policy work the  City has engaged in over the past few years, and  examinations of the local built environment as well as best  practices and other policies, a TIF District Public‐Private  Partnership Policy has been drafted.    The policy has these main elements which follows the  discussion points covered in the framework:         Background, Continued, Page 2  Statement of purpose  Definitions  Base eligibility requirements  Amount of community investment  Developer capacity criteria  Project surety requirements  Options for direct benefit community investment  Options for destination community investment  Review process  Development agreement contents  Annual reporting requirements  Exclusions  Effective date and sunset date    The policy is distinct from a regulation in that a regulation  sets the lowest common denominator, whereas the policy  would establish a threshold that rewards excellence while  protecting the public interest.    Policy Background    How will the City ensure that public monies spent on private  projects are not subsidizing projects that do not meet the  goals and extensive planning and visioning work of the  public?    How will the City ensure that the tax payers do not  end up paying for improvements that result in no appreciable  tax revenues?  How will the City ensure that we are not  moving tenants from one part of the City to another, raising  tax revenues in one place while lowering them in another?   How will the increment be set aside for community  infrastructure that is critical to the downtown character but  not directly within a private development? Will the process  be transparent and developers be giving an equal opportunity  to qualify for funding?    These are all important questions.  Fortunately, the City is not  alone in administering a TIF District.  49 States enable TIF  Districts.  Many cities have multiple TIF Districts throughout  their communities and use it as a principle form of financing  public infrastructure to obtain community goals.       Background, Continued, Page 3    Many these communities also have established TIF district  policies, applications for funding, and project review  processes.  Independent policy analysis has been conducted  to study these policies and their effects on the community and  broader tax base.      While every state’s enabling statute, regulatory framework,  development pattern and program is different, there are some  commonalities across TIF Districts.  These include the  following:   Funded projects are those that align with and achieve  the community vision or goals.   Projects meet a ‘but for’ statement.  They are projects  that would not be possible without the public support  because they are above and beyond what the market  supports.  The TIF only provides “gap” funding.   Funded applicants are those that are able and capable  of holding up their end of the deal and that provide a  security that they will build their project as planned  and on schedule.   Projects and performance are monitored.    Staff has reviewed the many policy documents related to City  Center visioning which have been either adopted or are in  draft form.  These include the TIF District Plan, the  Comprehensive Plan (draft and adopted), and the adopted  and proposed Land Use Regulations.  The Goal and Criteria  contained in this draft policy have been discussed by the  Planning Commission.    ATTACHMENTS:   City Center Public Private Partnership Policy  RECOMMENDATION:    Listen to the presentation and discuss.    ADDITIONAL  CONSIDERATION:  TIF District Financing funds would be raised through public  financing that is “double barreled”; i.e. bond that are backed  by future TIF District tax increment revenues, but also back       Background, Continued, Page 4  by the full faith and credit of the City; otherwise known as  general obligation bonds against the property tax base.      The direct project investment opportunity (23.2 million  dollars) represents approximately 40% of the potential  increment expenditures.    The City has also identified 31.7 million dollars of potential  increment expenditures as fulfilling downtown infrastructure  needs to create the community envisioned downtown for  which the City has secured the TIF District.  Many of these  projects also provide direct benefit to private projects; e.g.,  Market Street.  Some provide network capacity for new  development but may not be part of a public private  partnership, such as improvements to Midas Drive,  recreational path improvements, water system upgrades;  others create value for adjacent developments such as high  quality parks and public facilities.      These combined represent the remaining approximately 60%  of potential increment expenditures.      City Center Public‐Private Partnership Policy draft 7/31/2015    Page 1 of 11    City Center Public‐Private Partnership 1  Policy draft 7/31/2015 2  Purpose:  The City’s Tax Increment Financing District was approved by the City of South Burlington and 3  the State of Vermont to support development that would not otherwise occur “but for” public 4  investment.  The intention is to support a new urban land development market that results in a South 5  Burlington downtown.  The TIF District Plan includes public projects that directly benefit private 6  development in order to remove financial barriers to the development of a downtown for South 7  Burlington.  This policy outlines the criteria by which projects will be considered eligible for City 8  partnerships to directly benefit from South Burlington TIF District financing.   9  Development proposals supported by public investment are expected to meet not just the development 10  standards as outlined by the City’s adopted land development regulations which apply to all properties 11  but also to demonstrate innovative design, a commitment to sustainable transportation modes and 12  efficient use of land.  A successful proposal requires high quality in building materials, architecture and 13  site design to achieve visual interest and human scale.  Successful projects will place a premium on 14  developing land sustainably and efficiently and enhancing the value and function of adjacent properties.  15  Public investment will foster development that achieves the following goal: 16  A downtown for South Burlington that is diverse, dynamic and 17  people‐oriented; economically vibrant supporting a mix of shopping, 18  dining, housing and workspaces; featuring a safe transportation 19  system that encourages pedestrian, bicycle and transit options while 20  accommodating the automobile; with public open space, art and civic 21  facilities that establish pride and community identity and a built 22  environment that reinforces a culture of conservation and efficiency. 23  Meeting policy criteria does not guarantee the award of Community Investment in a project.  The 24  provision of financial assistance or investment is the sole discretion of the City, and meeting the policy 25  does not guarantee the award of assistance.  Furthermore, the approval or denial of one project is not 26  intended to set a precedent for approval or denial of another project.  The City’s decision to participate 27  in any agreement should be viewed as a contribution that will aide in a sense of community and add 28  long‐term value to the community. 29  Final approval of investment in a development project will be by the City Council.  30  Developers are encouraged to meet with the City early in their planning process. 31  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 2 of 11    I. Definitions 32  Community Investment:  City pledged funding to finance and construct infrastructure that directly 33  benefit a development project.  The maximum potential Community Investment value is the Base Value 34  + Bonus Value + 10% Value as calculated in worksheet X but shall not exceed either the cost of Direct 35  Benefit Infrastructure (including debt costs) or 90% of the total Project Generated Increment, whichever 36  is less.  Community investment may only be used for the infrastructure as described in this policy (see 37  Section VI). 38  Destination Investment.  Several projects have been approved in the TIF District that function as 39  destination infrastructure or improvements and directly aide in the establishment of City Center as the 40  community center for South Burlington.  The City will fund up to 100% of these improvements in order 41  to establish a downtown.  Increment invested in the listed destination projects not counted in the 42  Community Investment in an eligible Development Project. 43  Development Project:  A lot or set of lots on which proposed improvements meet the minimum criteria 44  and for which a developer has applied for the use of Community Investment to build TIF District pre‐45  approved infrastructure in their project.  A development project is all proposed development on this lot 46  or subdivision. 47  Equity Investment:  Cash or un‐leveraged value in land or prepaid costs attributable to the Development 48  Project.  Donated developer or construction management fees shall not be constituted as equity 49  investment. 50  Increment:  Estimated or actual tax revenue generated in accordance with Vermont Statues and placed 51  in a segregated account for the purpose of financing Tax Increment Financing District improvements.  52  Estimates will be generated from the City form included in the application. 53  Project Generated Increment: The calculation of increment amount generated by a project will per a 54  worksheet in the application using values that are updated annually by the City.  Only increment 55  generated from the area of the defined development project that meets the development project 56  criteria 100% is counted as project generated increment. 57  Site Area:  The total area of the Development Project lot or subdivision excluding the area of protected 58  wetlands and wetland buffers. 59  Tax Increment Financing District:  The area approved for Tax Increment Financing by the Vermont 60  Economic Progress Council.  This area is not contiguous with City Center. 61  II. Eligible Development Projects 62  1. Development Project that generate Increment.  63  2. Development Projects which the market does not support and that meet the goals of the 64  Community.  This criteria is met if 100% of the development project meets 100% of the 65  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 3 of 11    following Community Goal Development Project Eligibility Criteria Minimums.  The City Manager 66  may request a due diligence review to ensure this criteria is met. 67  a. Development project belongs to a Transportation Demand Management Organization.  68  (Community Goal:  Sustainable (multi‐modal) and sociable transportation) 69  b. Durable hard surface paths connect across parcel to sidewalks or other paths or transit 70  facilities on other parts of the development project, adjacent properties, and public 71  rights‐of‐way. (Community Goal:  Sustainable (multi‐modal) and sociable transportation) 72  c. Covered and secure bicycle storage is provided. (Community Goal:  Sustainable (multi‐73  modal) and sociable transportation) 74  d. Onsite non‐residential unstructured surface parking does not exceed maximums in 75  Table 1 (parking above maximums may be structured parking and/or an agency 76  managed parking shared or leased facility or on‐street).  (Community Goal:  Sustainable 77  (multi‐modal) and sociable transportation) 78  Table 1 79  Use Maximum Surface Parking Spaces   Retail 2.5 spaces per 1,000 square feet  Office/Mixed Use  Commercial  2.5 spaces per 1,000 square feet  Restaurant, stand alone 3.0 spaces per 1,000 square feet  Hotel 0.7 spaces per room  Places of Assembly 0.1 spaces per maximum permitted occupancy   80  e. Residential parking is sold or leased separately from multifamily units.  (Community 81  Goal:  Sustainable (multi‐modal) and sociable transportation) 82  f. All parking for commercial units is shared and unreserved.  (Community Goal:  83  Sustainable (multi‐modal) and sociable transportation) 84  g. Where requested by public transit providers covered transit accommodations with 85  seating are provided in right‐of‐way or onsite in accordance with service provider’s 86  standards for enroute transit stops.  (Community Goal:  Sustainable (multi‐modal) and 87  sociable transportation) 88  h. Buildings are at least three stories in height in the T‐4 Form Based Code District. 89  (Community Goal: high quality human‐scale, walkable environment) 90  i. Buildings are at least five stories in height in the T‐5 Form Based Code District. 91  (Community Goal: high quality human‐scale, walkable environment) 92  j. Buildings edge Primary Streets, abutting each other with no openings between buildings 93  unless providing for an alley or pathway, in which case the opening is no more than 30 94  feet in width.  Consider zero lot lines on at least one side of a building TBD. (Community 95  Goal: high quality human‐scale, walkable environment) 96  k. Building facades on primary streets are textured and establish interest on public streets, 97  pathways and open space for pedestrians and other users.  This is to be achieved 98  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 4 of 11    through design quality but is not to be interpreted as to require or limit design to a 99  specific style.  Buildings have at a minimum: 100  i. A hierarchy of materials and surface textures distinguish the ground floor from 101  upper floors and the topmost level with the most detail on the ground floor on 102  public streets, pathways and open space and complementary detail on the top.  103  (Community Goal: high quality human‐scale, walkable environment) 104  ii. High quality entrances with legible addresses and appropriate lighting, 105  articulated with frames and transoms and the use as appropriate of a 106  combination of side lights, awnings, indented bays and other embellishments. 107  (Community Goal: high quality human‐scale, walkable environment). 108  iii. Window frames highlighted by changes in materials, color, texture, depth and 109  other embellishments. (Community Goal: high quality human‐scale, walkable 110  environment). 111  iv. Materials that are not “faux”. 112  l. Lighting is consistent across all pathways. (Community Goal: high quality human‐scale, 113  walkable environment). 114  m. 45% of dwelling units have an outdoor porch, patio, balcony or terrace of at least 6 feet 115  in depth. (Community Goal: high quality human‐scale, walkable environment) 116  n. The ratio of developed Floor Area to development project Site Area is at least 1.5.  117  (Community Goal:  resource efficient) 118  o. Project is Energy Star Certified.  Properties or portions of properties are exempt from 119  this minimum criteria if the use is not included in categories that are certified by Energy 120  Star (i.e. Energy Star will only certify a retail space of 5,000 square feet or more; 121  whereas retail spaces smaller than 5,000 square feet may also be efficient but do not fit 122  into a category certifiable by Energy Star).  (Community Goal:  resource efficient) 123  III. TIF Increment Community Investment in Projects 124  1. Community Investment Limit.  In no case may the overall Community Investment value exceed 125  the cost of providing the Direct Benefit Infrastructure Community Investment (see options in 126  section VI) or 90% of the total Project Generated Increment, whichever is less. 127  2. Base Community Investment.  Project Agreements for which both parties have signed in the 128  calendar year as noted in Chart 1 shall be eligible for the corresponding base percent of 129  estimated Project Generated Increment.  This percentage is the base component of total 130  Community Investment for which Development Projects are eligible:   131   132  Chart 1: Base percentage of total estimated project generated increment eligible to become Community 133  Investment 134  Year 2015 2016 2017 2018 2019 2020 2021 2022  Percent 40% 40% 35% 25% 15% 10% 5% 0%   135  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 5 of 11    3. Bonus Community Investment.  Development projects that in addition to the base eligible 136  criteria, meet any of the Bonus Criteria may offset these additional project costs to the 137  developer by increasing the amount of total Community Investment in the Development Project 138  by an additional dollar for dollar of the cost to provide the Bonus item.  For the first Bonus, the 139  additional Community Investment may not to exceed 15% of the total project generated 140  increment, for the second bonus 10%, and for the third bonus 5%. 141  a. Project includes public structured parking signed for and accessible to the public 142  (minimum of 20 spaces) with an entrance within 300 feet of 10 businesses. (community 143  goal: Sustainable (multi‐modal) and sociable transportation) 144  b. Showers and changing facilities for bicycle commuters are provided.  (community goal: 145  Sustainable (multi‐modal) and sociable transportation) 146  c. Publically reviewed and accepted art is included in the project above and beyond art 147  required in Land Development Regulations. (Community Goal: high quality human‐scale, 148  walkable environment) 149  d. Walkway, plaza, and open space paving materials are not “faux”, and are of a higher 150  quality than concrete, such as stone or clay brick. (Community Goal: high quality human‐151  scale, walkable environment) 152  e. Project is LEED Platinum Certified. (Community goal: resource efficiency) 153  4. 10% Increase Community Investment Opportunity. Projects meeting at least one of the 10% 154  Increase Opportunity criteria may increase the Community investment by 10% of the project 155  generated increment.  156  a. The ratio of developed Floor Area to development project site area is at least 2. 157  b. At least 25,000 square feet, or one quarter of the development, whichever is larger, of 158  the development is Class A office. 159  c. 10% of retail floor area is set aside permanently for occupation by businesses registered 160  only in Vermont with no affiliation with an out of state headquarters or corporate office 161  and does not include a local business owner of a franchise or national chain. 162  d. Affordable Housing is 250% above required, managed and includes wrap around style 163  social support services.  164  e. Building(s) is (are) verified by Efficiency Vermont as Net Zero. (Community goal: 165  resource efficiency) 166  f. Existing businesses onsite are accommodated in the new Development Project. 167  (Community goal: resource efficiency) 168  5. Visibility Community Investment.  Development projects meeting the following criteria are 169  eligible for an extra 10% of the project generated increment to be used as Community 170  Investment: 171  a.  At least 10% of the total linear footage of building facade (measured horizontally 172  around the building) is on a primary street corner.  Facades abutting structured parking 173  are not included in the total measurement. (Community Goal: high quality human‐scale, 174  walkable environment) 175  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 6 of 11    b. Existing vehicle traffic volumes are at least 12,000 ADT on one facade of the project.  176  (Community Goal: vibrant downtown) 177  IV. Developer Capacity Criteria 178  The City will only partner with developers that have the capacity to implement the Development 179  Project. 180  1. Individuals requesting TIF assistance in the form of a Community Investment must demonstrate, 181  to the satisfaction of the City, Equity Investment in an amount not less than ten percent (10%) of 182  the project budget and financing for the remainder (or TIF assistance shall not exceed the 183  amount of equity provide by the Developer.  .  10% is the most common) 184  2. Primary lender or equity investor has provided a letter of interest and acknowledgement of the 185  Development Surety (see section V). 186  3. Developer has site control. 187  4. Developer had agreed to provide full Project Development Surety (see section V).  188  5. For Development Projects that involve multiple phases of private capital investment that 189  request an up‐front Community Investment benefiting all phases of the Development Project, 190  the amount of private Equity Investment for a phase of development must be at least twice the 191  portion of Community Investment that directly benefits those phases of the Development 192  Project. (Or a guarantee will be provided for the public revenue relative to each phase’s portion 193  of the overall project) 194  6. Each Development Project eligible for a Community Investment must demonstrate the 195  probability of economic success.  The developer must be able to demonstrate to the City’s 196  satisfaction an ability to construct operate, and maintain the proposed Development Project 197  based on past experience, general reputation, and credit history.  The developers shall initiate 198  this effort by submitting to the City:  199  a. preliminary sales, rental, and other projections and/or pro forma analysis concerning 200  the Development Project.  Existing sales or transfer sales from existing South Burlington 201  businesses must be accounted for any Development Project projection.   202  b. any market and financial feasibility studies, appraisals 203  c. all information provided to private lenders for the Development Project 204  d. any other information or data which the City or its financial consultants may require in 205  order to ensure success of the Development Project. 206  V. Project Development Surety 207  Project Development Surety shall be provided in one or more of the following forms and shall ensure 208  that should the Development Project never or only partially be built, any debt incurred to build the 209  Community Investment is repaid in full in the absence of Project Generated Increment: 210  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 7 of 11    1. Full agreement to have a special assessment placed on the property for the construction of the 211  public infrastructure which would be removed once the project is built and generating taxable 212  revenue. 213  2. A bond in the amount of the Community Investment pledged to be released once the 214  Development Project is completed and generating taxable revenue. 215  3. Letter of credit, cash escrow, or other personal guarantee if financially advisable. 216  VI. Direct Benefit Infrastructure Community Investment Options 217  These projects are eligible for Community Investment as a Direct Benefit.  These projects would 218  otherwise be provided by the private developer (are private responsibilities).  As they are in the TIF 219  District and contained in the TIF District Financing Plan, if approved by the Council, the City may 220  undertake these improvements as Community Investments in order to offset costs incurred to create 221  Development Projects that meet the Community Goals.  The public funding source for these Community 222  Investments will be Project Generated Increment financed debt. 223  1. Garden Street 224  2. Williston Road Streetscape (50%) 225  3. Shared, signed and accessible public structured parking 226  4. Combined stormwater treatment practice 227  5. Wetland mitigation or improvements to existing wetlands 228  6. Park infrastructure to connect a development to Dumont Park as part of an open space 229  requirement 230  7. Other improvements not listed above.  Other improvements may be considered on a case‐by‐231  case basis; for such improvements a year should be added to any schedule to ensure adequate 232  time to obtain approval from the City Council, the State, and the voting public (not guaranteed).  233  The Applicant shall bear all costs of obtaining approval. 234  VII. Destination Investment 235  In special, limited cases, the City may agree to invest additional increment and public funds into 236  Destination Improvements that establish City Center as a downtown.  These limited cases include the 237  following improvements: 238  1. Public facilities that can serve as anchor institutions, such as a community center or civic center, 239  library, recreation center and/or City Hall.  240  2. Dumont – City Center Park Expansion 241  3. Central Urban Park 242  4. Streets surrounding a Central Urban Park which may be closed for park functions and events. 243  5. Bicycle/Pedestrian bridge over I‐89 244  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 8 of 11    VIII. Review Process 245  This process may include public outreach, a public vote and other public involvement and notification. 246  1. Pre‐Application Meeting with City Staff.  Potential applicants are welcome to meet while still in 247  the conception stage and are required to contact the City Manager’s office to set up a meeting 248  with City staff prior to submitting an application. 249  2. Application.  Applicants will submit a full application.  The information in this application is 250  subject to the public records request.  Certain information may be able to be held confidential in 251  accordance with V.S.A. XXXX and if this is so, these parts of the application must be clearly 252  marked as such. 253  3. Preliminary Review.  City Staff will review the application.  Staff may consult with the applicant 254  to gain additional information during this process.  Applications will receive the following 255  recommendations to the City Manager: 256  a. Incomplete; no further action recommended. 257  b. Does not appear to meet minimum eligibility criteria for receiving increment. 258  c. Meets criteria for receiving increment requested (as is, or with conditions). 259  d. Additional material or review would be required to determine if the project merits 260  increment. 261  4. Due Diligence Review.  This may be waived by the City Council at the recommendation of the 262  City Manager for projects that are projected to generate less than $500,000 in Project 263  Generated Increment. 264  a.  Concurrent Development Project Partner Policy Compliance Reviews will be as follows: 265  i. Design Review Committee will review the Development Project and make a 266  recommendation regarding compliance with all portions of Section II related to 267  a high quality/human scale development. 268  ii. A Financial Analysis Committee appointed by the City Manager will review the 269  Development Project and make a recommendation regarding compliance with 270  Developer Capacity requirements (Section IV), any Community Investment that 271  directly correlates with Development Project costs (e.g. Bonus Criteria sec. 272  III. 3.), and/or Community Investment proposed as a direct payment to the 273  applicant for TIF infrastructure that the applicant is constructing.  274  iii. Public Art Selection Committee will review and make a recommendation on any 275  proposed Public Art above and beyond that required by the Land Development 276  Regulations. 277  iv. Staff and/or a Consultant will review the remainder of the application and make 278  a recommendation regarding compliance with the Policy.  Review costs such as 279  outside consultant services will be covered by the applicant in consultation with 280  the applicant.  A fee may be set by the Council for application review. 281  5. Recommendation.  The City Manager will generate a recommendation incorporating all relevant 282  recommendations which will be passed to the City Council with any terms or conditions, the 283  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 9 of 11    staff estimate of Project Generated Increment and Community Investment cost and any other 284  considerations. 285  6. Approval of Terms.  The Council will review the project and recommend whether or not to 286  proceed to a negotiation for a development agreement based on the recommended term sheet. 287  7. Contract.  Negotiation of an agreement and execution by the City Manager if so authorized by 288  the City Council. 289  IX. Development Agreement. 290  The Development Agreement will include  291  1. A site plan and elevation drawings or renderings of the project,  292  2. A funding sources and uses table that identifies the various sources of public and private project 293  funds and how they will be used.   294  3. The Development Agreement will include a schedule for the Development Project construction 295  and completion with clearly identifiable milestones. 296  4. Among all other provisions, the Development Agreement will set forth method and manner for 297  disbursement of funds by the respective parties to pay for eligible project costs as well as the 298  responsibilities, milestones, and remedies of the respective parties in project completion.   299  5. It is the responsibility of the applicant to ensure that every element included in the 300  Development Project is approvable under City and State/Federal Land Use/Environmental 301  applicable regulations and the draft South Burlington land use regulations as of the date of 302  submittal.  Remedies shall also provide for an event in which the applicant violates other 303  contractual arrangements and land use approvals.   304  6. The assignment of Development Agreement rights to any third party assignee will require prior 305  written consent of the City, which may be granted or withheld at the sole discretion of the City.   306  7. Agreements may include financing of Community Investment that may be subject to obtaining 307  voter approval prior to provision of the requested infrastructure.  308  X. Annual Reporting 309  Developers shall provide an annual report to the City no later than 30 days after the end of the City’s 310  Fiscal Year (June 30).  The annual report shall provide:  311  1. An account of all sources and uses of funds to pay private costs of the project.  The City reserves 312  the right to audit the account at its discretion and expense.  313  2. Detail on the developer’s progress towards completing all responsibilities and milestones of the 314  project completion identified in the Development Agreement. 315  3. An accounting of all Vermont firms that have received funds and the amount of funds they have 316  received in the development or construction of the project as required by the State. 317  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 10 of 11    4. An accounting of businesses and types of businesses that have moved into the project, number 318  of employees and how many jobs are new versus moved from other locations and if they have 319  moved from other jurisdictions, which ones. 320  5. Any other information as required in the development agreement. 321  XI. EXCLUSIONS 322  The following, if included will cause a development proposal to be ineligible for Community Investment 323  or fall out of compliance with a Development Agreement.    324  1. The Development Project places extraordinary, unmet demands on City infrastructure or 325  services. 326  2. Community Investment will not be used in projects when the developer’s credentials, in the sole 327  judgment of the City, are inadequate due to past track record in relation to: completion of 328  projects, and or financial stability and are in good standing and responsive to municipal and 329  state laws, or other problems or issues considered relevant by the City.   330  3. The Development Project construction has not met scheduled milestones established in the 331  Development Agreement, and where the City has not agreed to extensions of the schedule. 332  4. Projects that do not receive project land use approvals.  To be eligible for TIF financing a project 333  must receive project land use approvals.  Projects that do not obtain land use approvals shall 334  release the City from any obligations but shall still cause the developer to be responsible for any 335  investments incurred by the public per the public investment development agreement. 336  5. TIF will not be used in projects that would give a significant, competitive advantage over similar 337  projects due to the use of tax increment subsidies.  The City Council may require additional 338  market studies, remedies within the contract or “look‐back” provisions or remedies to ensure 339  that the following are met: 340  a. The intent is not to provide below‐market sales prices or rent subsidies to assisted 341  projects, except as applied to assist affordable housing with wrap‐around services or 342  similar community goals.   343  b. TIF will not be used to increase land sales prices. 344  c. TIF will not be used to increase profit above what the South Burlington market 345  reasonably is expected to provide or otherwise create uneven markets.  346  d. Additional considerations may be given as to whether existing local options tax revenue 347  is substantially impacted by relocation of existing retail development into a TIF project 348  whereby local sales are simply moving from one location within the City to another.  Any 349  market analysis shall include: 350  i.  the population areas that will be drawn from, and  351  ii. South Burlington Businesses which would be competed with by businesses of a 352  similar type to be locating in the project. 353  iii. whether a substantial part of its total products and/or services are either 354  exported from the South Burlington City limits or they would add jobs and 355  City Center Public‐Private Partnership Policy draft 7/31/2015    Page 11 of 11    replace purchases now being made by area residents in areas outside of the 356  City. 357  XII. EFFECTIVE DATE 358  This policy shall take effect upon adoption. 359  XIII. SUNSET DATE 360  This policy shall automatically expire April 1, 2022, unless extended by Council. 361        575 Dorset Street South Burlington, VT 05403 tel 802.846.4107 fax 802.846.4101 www.sburl.com     TO: Kevin Dorn, City Manager  FROM: Ilona Blanchard, Project Director  SUBJECT: City Center Public Improvement Projects – Public Vote  DATE: July 13, 2015  BACKGROUND:    Prior to a public vote, the City Council will need to determine which  projects to put forward in order to request debt and TIF District  Financing authorization.      Several TIF District projects also rely on debt funding for design work in  the proposed FY2016 budget:  City Center Park/Dumont Park and Public  Facilities including the Library, Recreation Center, and City Hall.       In order to save cash on hand for other uses such as recreation outside  City Center or servicing future debt related to the City’s share of City  Center projects it is advisable to use debt for soft costs such as design  and site acquisition.    Using debt for these costs does not require incurring costs immediately.   Reimbursement resolutions can defer actual debt until a time closer to  construction.    A vote is a means to demonstrate whether the South Burlington  community is committed to advancing a project.  This would facilitate  future decisions such as securing land for a library.    A positive vote would place the City in a position so that there are no  barriers to incur TIF District financing in a timely manner so as not to  lose the TIF District.      A positive vote does not require the City to incur debt.  The City Council       Background, Continued, Page 2  would still need to decide that it is a prudent step to incur debt and  when an appropriate time is, if and when the City does incur debt.    FEBRUARY 9, 2015 DISCUSSION  On February 9, Staff asked the Council what information could be  provided to assist in this decision making process.  The following were  noted:   Economic impact of risk to the City – what will the City be on the  hook for (in cents against the grand list)?   Operating costs of each project and where the cost would come  from such as property taxes, fee based offsets, special assessment  districts   What is prospective development (as appropriate for public or  executive session)   Who will the users of projects be?  Will they be the same users  today as tomorrow?   What are the synergies between projects?   What is the cost difference between spacing out the development  of public buildings versus building them at the same time?   What is the best way to bring this forward?   Which projects would the City be expected to fund before funds  are available?  The answers to these questions are included in the attached “TIF  Projects Background” document.  STAFF RECOMMENDATION    Staff recommends the following projects be included in a public vote:    Market Street, a building for the Community Library, and Phase 1 of  Dumont Park.  Combined the estimated debt would be:    All debt combined  $  15,402,608.00   TIF District Financing Portion  $    7,720,892.00   City Portion of Library  $    4,389,552.00   Capital Campaign Portion of the Library  $    3,292,164.00     Library costs combined  $  10,973,880.00        Background, Continued, Page 3    While a vote is recommended at this time, incurring debt is not.  ATTACHMENTS:  TIF Projects Background  RECOMMENDATION: Listen to the presentation and discuss.  ADDITIONAL  CONSIDERATION:  The State requires that if the City is to incur debt financed by the TIF  District, South Burlington will need to do so prior to March of 2017, and  will only have five subsequent years during which to use this financing  tool.  The City may only ask voters to vote on the same proposal to use TIF  District financing twice in a calendar year.    TIF Projects Background City of South Burlington Public Vote Preparation Draft: July 27, 2015 MARKET STREET If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 cent Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 5.5 M – Federal 4 M – TIF District Financing What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund for basic maintenance, electricity for lights (LED), Enterprise Fund for stormwater maintenance City Center Special Assessment District for extra public space cleaning, snow removal, tree care, gardening, Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: Cut through traffic, school access, shoppers west end. Tomorrow: shoppers, residents, visitors. Reduces onsite parking costs. What are the synergies between projects? Catalyst project. Supports retail/service business and residential/office development. Builds identity, expands system capacity for walkers and bikers. What is the best way to bring this project forward? Complete the Land Development Regulation Update. City is committed to this project, so if no development project comes forward, streetscape plans can be scaled back, and a combination of reserve and impact fee funds used. Is this project one that the City would be expected to fund before funds are available? Yes – this project is important to show progress and support private development. Over half of the funds have been secured. Other Considerations: Current TIF revenues are estimated to average 119k over the life of the TIF; This results in a fractional shortfall for interest only payments if no other projects are built, and 1/2 cent shortfall for principal plus interest payment. LIBRARY If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: ¾cent Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 30% – TIF District Increment 40% –Reserve & Impact Fee Funds 30% - Capital Campaign What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund, could tap a special assessment for arts programming, etc. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: residents, some visitors Tomorrow: residents, visitors, employees, businesses What are the synergies between projects? Anchor for retail businesses, residential, programmable park Is there a cost difference between staggering public facilities construction versus building Community Center in one go? Recommended to be earliest public facility, hence library would absorb all base costs - impact is lost synergy. If built on a different site from other public facilities, adds .72 M What is the best way to bring this project forward? Recommend work with Library Trustees, Friends, etc. on a capital campaign; public regarding a vote, and that the City secure a library site 2015 - 2016, initiate design 2016, and secure funding in FY17 depending upon interest rates, etc. Is this project one that the City would be expected to fund before funds are available? A Library would anchor the new downtown and serve as an important community building facility for the City Other Considerations: Community has sought a new library for more than a decade, a prior project was shelved in order to build the Police Station CITY CENTER PARK PHASES: 1 – DUMONT PARCEL; 2 – TRIB 3/SBCC, LLC PARCEL; 3 – CONNECT SAN REMO TO GARDEN STREET If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: Phase 1 - ¼ cent Phase 2 – ¼ cent Phase 3 – ¼ cent Total: ¾ cents Includes only costs which are eligible to be TIF District Financing funded. Estimated Capital Cost Funding Source: 95% - TIF District Increment 5% - Rec Impact Fee What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund for basic maintenance, electricity for lights (LED), Enterprise Fund for stormwater maintenance Special Assessment District for extra cleaning, snow removal, tree care, gardening Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Phase 1- Community Benefit () Phase 2 and 3 - Direct Private Benefit and/or Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: Neighborhood, School District Tomorrow: City wide as integrated into downtown with Phase 2 & 3 – will become premier park for the City. What are the synergies between projects? Anchor for residential, buffer for neighborhood, destination for business employees & visitors. Builds identity, expands system capacity for walkers and bikers. What is the best way to bring this project forward? Recommend phasing development, and pursuing a hybrid construction with VYCC for phase 1, incorporating further phases into public private development agreements. Is this project one that the City would be expected to fund before funds are available? Recommend funding implementation of Phase 1, in consideration of low cost, future reimbursement potential, current benefit to the Barrett Street neighborhood, addresses natural area maintenance needs, and overall placemaking ability of project Other Considerations: Many parts of Phase 1 of this project potentially could be constructed by VYCC potentially lowering cost to less than ¼ cent. CENTRAL URBAN PARK & ADJACENT HIGH QUALITY STREETS If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 ¼ cent Estimated Capital Cost Funding Source: 100% – TIF District Increment What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund for basic maintenance, electricity for street/pathway/structure lights (LED) Enterprise Fund for stormwater maintenance Special Assessment District for extra cleaning, snow removal, tree care, gardening, any site water. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit and/or Direct Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: Residents, visitors Tomorrow: Residents, Visitors, Employees, adjacent retail, residential housing value. Reduces onsite parking costs. What are the synergies between projects? Anchor for retail businesses, residential, Is there a cost difference between staggering public facilities construction versus building Community Center in one go? N/A What is the best way to bring this project forward? Recommend continuing to pursue the acquisition of a site. Is this project one that the City would be expected to fund before funds are available? Only funding for land purchase would be recommended prior to availability of TIF Increment Not recommended at this time for a public vote Other Considerations: RECREATION CENTER If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 ½ cent Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 30% – TIF District Increment 40%– Reserve Funds & Impact Fees 30% – Capital Campaign What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) To meet City needs as growth occurs, reduce maintenance costs of aging current building, and meet unmet demand in the City now. Most operational costs are covered by service fees. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: residents, some visitors Tomorrow: same, plus business employees, better services for all generations including especially under 4 and 55 plus/daytime hours What are the synergies between projects? With Library, City Hall, retail businesses, anchor for residential, business employees. Is there a cost difference between staggering public facilities construction versus building Community Center in one go? Increases costs related to borrowing due to anticipated higher rates, inflation of construction costs. If built on a different site from other public facilities results in lost synergies, adds .72 M to cost What is the best way to bring this project forward? Once location and programming has been set Is this project one that the City would be expected to fund before funds are available? Discussion for a later date Not ready for a vote Other Considerations: City has been exploring recreation facility locations that are not in City Center. CITY HALL If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: (1/10 cent) Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 10% – TIF District Increment 90% – Reserve & Impact Fee Funds (¾ cent) What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) Most costs related to this project would still need to be provided regardless of if this project is completed. Some greater efficiencies of a new building may be obtainable. Some City Hall services are offset by fees. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: residents, developers, committees, office functions not tied to Public Works, Safety or Library. Tomorrow: Same, plus, more community outreach, programs for businesses, first time homebuyers, etc. Easier to access services What are the synergies between projects? If built with the Library/Recreation Dept would have shared access to auditorium, meeting and activity rooms as well as a central lobby area for community information/services and displays. Also anchors downtown as a traffic generator and community builder. Is there a cost difference between staggering public facilities construction versus building Community Center in one go? Increases costs related to borrowing due to anticipated higher rates, inflation of construction costs. If built on a different site from other public facilities, adds .72 M, lost synergies What is the best way to bring this project forward? As funds become available, current building becomes inadequate and demand for services due to City size increases. Is this project one that the City would be expected to fund before funds are available? Not at this time. Other Considerations: The City has some unmet demand and may face more needs as growth occurs, which may be as expensive to meet in the existing building due to the age of the structure and costs to maintain it. GARDEN STREET If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 2 cents Estimated Capital Cost Funding Source: 100% - TIF District Increment eligible Impact Fees are funding design What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund for basic maintenance (plowing, tree trimming), street lights (LED), Stormwater Fund for stormwater maintenance. If well above normal could consider special assessment district. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Direct Benefit for new roadway, Community Benefit and Direct Benefit for Williston Road/Midas portions Who will the users of projects be? Will they be the same users today as tomorrow? Today: residents, bicyclists, Shoppers from U-Mall, Healthy Living, TJ’s, Pier 1, Price Choppers, Chamberlin neighborhood residents to cross Williston Road at White Street Tomorrow: above, plus City Center businesses and residents. Reduces some onsite parking costs by increasing multi-modal accessabilty across Williston Road. What are the synergies between projects? With residential, business development, public buildings if they are located on Garden Street. Builds identity, expands system capacity for walkers and bikers. What is the best way to bring this project forward? As development agreements are secured. Is this project one that the City would be expected to fund before funds are available? City is funding design so it is shovel ready. Recommendation is to wait until a private development project is committed to generating increment as building this roadway would normally be a private sector development requirement. Not ready for a public vote. Other Considerations: Some savings if built at the same time as Market Street. BRIDGE OVER I-89 If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 cent Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 30% - TIF District Increment 70% - Federal Grants What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) General Fund for basic maintenance plowing, general repairs, etc. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: commuters to downtown UVM/UMCV, South Burlington, shoppers, hotel/conference attendees, UVM students Tomorrow: addition of residents and employees of City center, and visitors to City Center. What are the synergies between projects? Residential, business, retail development/ traffic reduction. Creates system capacity for walkers and bikers. Reduces onsite parking costs due to multi-modal transportation system enhancement. What is the best way to bring this project forward? Ask CCRPC to include scoping the project in the Unified Planning Work Program (UPWP). Is this project one that the City would be expected to fund before funds are available? No, City should seek federal, partner funds first. Not ready for a vote Other Considerations: Project has regional importance and is eligible for several Federal grant programs, some of which may require a lower match. WILLISTON ROAD STREETSCAPE If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: ½ cent Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 50% - TIF District Increment 50% - Reserve Fund/Federal/State grants What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) Potentially some additional tree and decorative pedestrian oriented light maintenance. If a larger landscape strip is added between the the sidewalk and the street this could improve snow removal operations on the street. Maintenance would continue to be out of the General Fund as it is now. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Community Benefit and Direct Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: South Burlington residents especially in Chamberlain, City Center, Mayfair neighborhoods, shoppers, hotel/conference attendees, commuters to downtown, Tomorrow: addition of residents and employees of City center, and visitors to City Center. What are the synergies between projects? Creates City Center visibility and identity, creates system capacity for walkers and bikers. What is the best way to bring this project forward? Once impact fees are in place and streetscape is scoped, a design created and funding secured from other sources for the 50% match. Is this project one that the City would be expected to fund before funds are available? Would recommend continuing scoping as part of Williston Road Network Analysis and then explore the use of impact fees for design. Project is not advanced enough for a vote. Other Considerations: Makes transit, walking more viable, reduces car dependency (reduces some parking demand). Depending upon design could include safety improvements. STRUCTURED PUBLIC PARKING If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 2 ¾ cent Estimated Capital Cost Funding Source: 100% - TIF District Increment What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) Operation and maintenance would be funded through user fees, special assessment district Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Direct Benefit unless tied to a public building Who will the users of projects be? Will they be the same users today as tomorrow? Today: No users. All sites have sufficient parking. Tomorrow: residents and employees of City center, and visitors to City Center. What are the synergies between projects? Supports residential, business, retail development, events, public facilities What is the best way to bring this project forward? As development agreements are secured Is this project one that the City would be expected to fund before funds are available? Not ready for a vote Other Considerations: Public parking could be public owned condominiums within private projects and/or integrated into public facility projects. STORMWATER – WETLAND ENHANCEMENT/MITIGATION If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 cent Estimated Capital Cost Funding Source: 100% TIF District Increment What operating costs will there be for the project? What will be the source of these operating funds? (Typical sources include General Fund, Enterprise Funds, fee based offsets, City Center special assessment district) Special assessment for maintenance if treating private sector, Enterprise fund/other if stormwater treatment facility treats runoff from public facilities such as roadways/buildings Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Direct Benefit Who will the users of projects be? Will they be the same users today as tomorrow? Today: None Tomorrow: Private Sector, some facilities/enhancements may have public users also What are the synergies between projects? Supports higher density (more efficient land use) residential, business, retail development What is the best way to bring this project forward? As development agreements are secured Is this project one that the City would be expected to fund before funds are available? Not ready for a vote Other Considerations: Recommend consideration of incorporation of treatments into private projects. MARKET ST, LIBRARY, CITY CENTER PARK PHASE 1 If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 1 ¾ Cents Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: 40% of Library funded from Reserve ($4.4M for which 2 cents have been built into current tax rate, an additional one cent is scheduled into the CIP for FY 17), 30% of Library is estimated to be funded by a Capital Campaign (3.3M or .8 cents) and 30% TIF District Increment (3.3M or .8 cents) 60% of Market Street Federally funded, 40% if expected to be funded by TIF District Increment 5% of City Center Park is Impact Fee funded and the remainder is TIF District Increment Funded.. Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Market Street – Direct Benefit Library – Community Benefit City Center Park Phase 1 – Community Benefit Why first? The City is committed to constructing Market Street. It is our project that is closest to be being shovel ready. By using TIF increment, the City saves Impact Fee funds for other projects. The Library is a project that the City has been discussing for years. If the Community supports a new library, a site can be secured, and design funded now and the library built as funds become available. Building the Library in City Center allows it to anchor the new downtown, taps into funding otherwise unavailable, and may save on interest rates if built in the near term. The City Center Park is one of the least expensive projects. It has the ability to set the tone for quality public space while being a lasting public resource. The first phase may become shovel ready this winter. ALL PROJECTS COMBINED If the estimated TIF increment does not materialize, what will it cost the taxpayer to nearest ¼ cent: 13 ¾ cents Includes only costs which are targeted to be TIF District Financing funded. Estimated Capital Cost Funding Source: Non-TIF: 3 ¾ cents (reserve plus impact fees) plus two cap campaigns of 12 M totla plus Federal Funds Does this project have mainly a direct Private Benefit or mainly a Community Benefit? Mix of Community and Direct Benefit   575 Dorset Street South Burlington, VT 05403 tel 802.846.4107 fax 802.846.4101 www.sburl.com       REGULAR SESSION    To: Kevin Dorn, City Manager From: Ilona Blanchard, Project Director Subject: Declaration of Official Intent of the City of South Burlington to Reimburse Certain Expenditures from Proceeds of Indebtedness Date: July 29, 2015 Background:                              The City is currently expending funds for soft costs related to three TIF projects: two roadways and a park. In the future the City may decide to expend funds on land acquisition or soft costs related to an urban park and a library. While most of these funds would likely be considered non-reimbursable, such as Federal Grant funds and Impact Fees, there is a large demand on some of these funds. The use of a reimbursement resolution would allow the City to save reserve funds and recreation impact fees for other purposes. A Notice of Official Intent (the ‘reimbursement declaration’) will allow these resources to be reserved for other purposes or if needed, used for these soft costs. It provides the City with more flexibility when considering what to fund and when to fund it. An example is that in FY15, the City has used recreation impact fees to fund design work for the Dumont parcel - City Center Park. With a reimbursement resolution, the City will have the option to temporarily use funds that are then reimbursed in a future bond issue. The recreation impact fees that would have been used then can be saved for another purpose. From the South Burlington Bond Counsel: The Internal Revenue Code provides that an issuer may use the proceeds of its tax exempt bonds and notes to reimburse itself for previously advanced project costs only if there is in the record a notice of intent to do so. Once adopted, the Notice of Official Intent permits an issuer to look back 60 days from the date of adoption to identify eligible reimbursable advances. Looking forward, the issuer has up to eighteen months (which may be extended to three years in some circumstances) to identify reimbursable project advances.       Adopting the Notice of Official Intent doesn’t commit the City or the City Council to spend any funds. Its purpose is to keep open the possibility of using proceeds of tax exempt obligations to effect a reimbursement of advances previously made by the City for the TIF initiative. This Notice of Intent addresses reimbursement using future bond proceeds under federal tax law. Attachments:  Declaration of Official Intent of the City of South Burlington to Reimburse Certain Expenditures from Proceeds of Indebtedness Recommendation:  Consider approving declaration   Declaration 2015 - EXHIBIT I(A) DECLARATION OF OFFICIAL INTENT OF THE CITY OF SOUTH BURLINGTON TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS WHEREAS, the City of South Burlington, Vermont (the “Issuer”) intends to construct public parks, a library, public highways, streetscapes and public water, sewer and stormwater improvements incident to the development of the Issuer’s New Town Center Tax Increment Financing District (the “Project”); and WHEREAS, the Issuer expects to pay certain capital expenditures (the “Reimbursement Expenditures”) in connection with the Project prior to the issuance of indebtedness for the purpose of financing costs associated with the Project on a long-term basis; WHEREAS, the Issuer reasonably expects that for that part of the Project consisting of acquisition, design and construction costs, debt obligations in an amount not expected to exceed $40,000,000 (forty million dollars) will be issued and that certain of the proceeds of such debt obligations will be used to reimburse the Reimbursement Expenditures; and WHEREAS, the Issuer declares its reasonable official intent to reimburse prior expenditures for the above-described part of the Project with proceeds of a subsequent borrowing: NOW THEREFORE, the Issuer declares: Section 1. The Issuer finds and determines that the foregoing recitals are true and correct, and that all of the capital expenditures covered by this Resolution were or will be made not earlier than 60 days prior to the date of this Resolution. Section 2. This declaration is made solely for the purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the Issuer to make any expenditure, incur any indebtedness, or proceed with the Project. Section 3. The Issuer hereby declares its official intent to use proceeds of indebtedness to reimburse itself for Reimbursement Expenditures, within 18 months of either the date of the first expenditure of funds by Issuer for such Project or the date that such Project is placed in service, whichever is later (but in no event more than three years after the date of the original expenditure of Issuer funds for such Project), and to allocate an amount not to exceed $6,000,000 (six million dollars) of the proceeds thereof to reimburse itself for its expenditures in connection with the Project. Declaration 2015 - EXHIBIT I(A) Section 4. The Issuer’s debt obligations for the aforementioned purpose will not be “private activity bonds” within the meaning of Section 141 of the Internal Revenue Code of 1986. Section 5. All prior actions of the officials and agents of Issuer that are in conformity with the purpose and intent of this Resolution and in furtherance of the Project shall be and the same hereby are in all respects ratified, approved and confirmed. Section 6. All other resolutions of the legislative body of the Issuer, or parts of resolutions, inconsistent with this Resolution are hereby repealed to the extent of such inconsistency. Section 7. It is hereby found that all discussions and deliberations of the legislative body of the Issuer leading to the adoption of this Resolution occurred at one or more meetings of the legislative body conducted pursuant to public notice and open to public attendance. Section 8. This declaration shall take effect from and after its adoption. DECLARED this _____ day of ______________ , 2015. SOUTH BURLINGTON CITY COUNCIL __________________________________ ________________________________ Pat Nowak, Chair Chris Shaw, Vice Chair __________________________________ ________________________________ Helen Riehle, Clerk Meaghan Emery __________________________________ Tom Chittenden         August 3, 2015    MEMO    TO:  South Burlington City Council  FROM:  Kevin Dorn, City Manager  RE:  Inter‐Municipal Shared Services Model    As we have previously discussed, I have been engaged in discussions with the Towns of Shelburne,  Williston and Colchester about an Inter‐Municipal Shared Services Model whereby certain services  would be provided across municipal boundaries through a collaborative governmental structure.    The general concept is that a new municipality would be created at the request of two or more  communities that could then be the host or provider of services delivered back to the sponsoring  communities.   Economy of scale would be achieved and quality of service would be enhanced under  such a collaborative model.    This structure has recently been approved by the Legislature for the provision of some public safety  services between the cities of Barre and Montpelier.  The Central Vermont Public Safety Authority was  authorized through legislation passed this spring and is now in effect in Central Vermont.  Both Barre  and Montpelier are member communities in the new municipality and can be provided certain specified  services by the CVPSA.  Other neighboring communities can also be provided services by the CVPSA  under contract.    All new municipalities and charters must be approved by the Legislature and Governor.  In this case at  least two host communities must get the approval of their voters to establish such a shared services  municipality before sending the request on to the Legislature.    Attached is a draft of the legislation that would create what we at this time are calling the Central  Chittenden County Public Services Authority.  This legislation is modeled very closely after the legislation  establishing the Central Vermont Public Services Authority.  We have modified the bill so that it  authorizes the provision of a wider variety of services but establishes essentially the same governance  structure.     Under this proposal, Shelburne and South Burlington voters could approve the formation of the CCCPSA  this fall and the legislation could then be taken to the Legislature in January.  The Legislature, having  enacted a virtually identical bill for Central Vermont would reasonably be expected to consider and  complete action establishing the CCCPSA during the coming session which would allow for the  municipality to begin functioning on July 1, 2016.    At that point both Shelburne and South Burlington would be members of the municipality and Williston  and Colchester, or others for that matter, could acquire services from the CCCPSA.      By way of example as to actual function, communities now have a higher obligation to tackle their  stormwater management issues.  The City of South Burlington is well ahead of all other communities in  this regard having established our stormwater utility and enterprise fund years ago.  That function could  be shifted over to the CCCPSA and expanded to provide the same high quality of services under a fee‐ based model to Shelburne, and others thereby avoiding having to set up and manage these programs on  a community‐by‐community basis.    Clearly, there are other municipal services that might recognize an economy of scale by being provided  to a larger population.  Importantly, these would not be the first services to be provided on a regional  basis in Chittenden County.  We just have to look at the CSWD, CWD and CCTA models to see that higher  quality services can be provided most cost effectively to larger populations through a regional service  delivery model.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  1    Formatted: Right Central Vermont Chittenden County Public Safety Services Authority  1.  Purpose and composition  The purpose of the Central Chittenden County Public Services Authority (the “Authority”) is to provide  the member towns  municipalities in the Authority with an affordable, integrated, efficient system of  public safety services (fire, police, ambulance, dispatch) that protects public welfare and provides rapid  responses with highly qualified personnel when emergency situations arise.   2.  Term  The Authority shall continue perpetually.   3.  Powers  The Authority shall have all of the powers and authorityies listed in 24 V.S.A. § 4866 (union municipal  authorities) as the same presently exist, together with any additional powers which may be added  thereto by amendment in the future, all of which powers are incorporated herein by reference. The  Authority shall also have the power:  (1) to operate, cause to be operated, contract, or any of those, for the operation of any and all facilities  for police, dispatch, fire, and ambulance public services, as voted by the Board;  (2) to purchase, sell, own, lease, convey, mortgage, improve, and use real and personal property;  (3) to sue;  (4) to enter into contracts for any term or duration;  (5) to adopt a capital budget and program;  (6) to adopt rules implementing the purposes of the Authority, subject to the requirements of 24 V.S.A.  chapter 59 (adoption and enforcement of ordinances and rules), relating to the functions of the  Authority;  (7) to provide public safety services for the members and others;  (8) to exercise the authority of eminent domain, using the procedures and definition of "necessity" set  forth in 19 V.S.A. chapter 5 (condemnation), to the extent they are applicable. The exercise of eminent  domain shall be approved in advance by the legislative body of the member towns affected by the  proceeding;  (9) to borrow money and issue evidence of indebtedness as provided by 24 V.S.A. chapter 53  (indebtedness) or other provisions of law authorizing general obligations or revenue debt, including 10  V.S.A. chapter 12 (Vermont Economic Development Authority) and 24 V.S.A. chapter 119 (Municipal  Bond Bank);  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  2    Formatted: Right   (10) to establish a budget and assess members in accordance with this chapter and provisions of State  law;  (11) to appropriate and expend monies;  (12) to establish sinking funds for the retirement of bonded or other indebtedness;  (13) to charge members for the cost of providing public safety services;  (14) to exercise any other powers which are necessary or desirable for dealing with public safety  measures, as any member may exercise by general State law or charter;  (15) to establish capital reserve funds;  (16) to accept and administer gifts, grants, and bequests in trust;  (17) to exercise all powers incident to public corporations;  (18) to make payments in lieu of taxes to members hosting Authority facilities;  (19) to appoint an Public Safety Executive Director;  (20) to enter into contracts with banks, insurance companies, or other financial institutions so as to  obtain a letter of credit, bond insurance, or other forms of financial guarantees or credit enhancement  in connection with Authority bonds, notes, or other evidence of indebtedness;  (21) to provide host communities municipalities of Authority facilities with incentive payments, services,  and benefits;  (22) to contract with private businesses, nonprofit corporations, and other governments for the  provision of services associated with the Authority's functions; and  (23) to do all things set forth in or necessary to this chapter.   4.  Sovereign immunity  The Authority shall have the benefit of sovereign immunity to the same extent that a municipality of the  State does. The Authority shall provide liability and other insurance for itself and the members of the  Board. The Authority shall hold harmless and indemnify all members of the Board from all claims of  every kind and nature arising out of or connected with duties as directors, excepting only willful  negligence and criminal conduct.   5.  Definitions  As used in this chapter:  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  3    Formatted: Right (1) "Board" means the Board of Directors of the Central Vermont Public Safety AuthorityCentral  Chittenden County Public Services Authority.    (2) "Authority" means the Central Vermont Public Safety AuthorityCentral Chittenden County Public  Services Authority.  (3) "Members" means those municipalities that comprise the Authority, acting through their respective  legislative bodies that are committed to full participation in the shared net expenses of all services  provided by the Authority, and include the City of South Burlington ies of Barre and Montpelier the  Town of Colchester, the Town of Williston, and the Town of Shelburne. Other municipalities may, at the  Authority's discretion, contract with the Authority for provision of one or more services from time to  time.  (4) "Person" means any individual, partnership, company, corporation, association, unincorporated  association, joint venture, trust, municipality, the State of Vermont or any agency, department, or  subdivision of the State, federal agency, or any other legal or commercial entity.   6.  Authority  All power and authority of the Authority shall be exercised by the Board.   7.  Composition  Each member of the Authority shall have two directors on the Board, and three other directors shall be  elected at‐large by the electorate of the member municipalities. Each director shall be a duly qualified  voter resident of his or her municipality and registered to vote in municipal elections at the time of the  director's appointment or election.   8.  Selection of directors  (a) Directors. The three at‐large directors shall serve staggered terms of three years. The directors  appointed by the respective members shall serve staggered terms of two years. A director shall not  serve more than three full consecutive terms.  (b) Subsequent boards. Any voter in any of the members may be nominated to be elected an at‐large  director by filing a petition signed by 25 voters of the municipalities and filing it with the Secretary of the  Authority before 5:00 p.m. on the sixth Monday prior to the day of election, which shall be the filing  deadline. Votes for at‐large directors shall be tallied by the clerks of the respective members and  certified to the Secretary of the Authority within a week of the day of election. The directors receiving a  plurality of the votes shall be deemed elected after the vote is confirmed by the Board of Directors.  (c) Appointments. The legislative body shall make its appointment by the end of March in the year in  which the term of the preceding director for that member expires. The clerk of each member shall  certify its appointment to the Secretary of the Authority.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  4    Formatted: Right (d) Oath of office. All directors shall take an oath of office similar to that taken by members of legislative  bodies of municipalities, as in 24 V.S.A. § 831. The oath shall be administered by the clerk of the  director's municipality.  (e) The Authority shall pay directors such reimbursement of expenses or stipend as the Board shall  determine.   9. Organizational meeting  (a) Annually, on the first Wednesday in April, the Board shall hold its organizational meeting at a time  and place designated by the Board Chair.  (b) At the organization meeting, the Board shall elect from among its membership a Chair and a Vice  Chair, each of whom shall hold office for one year and until a successor is duly elected and qualified. For  this election, each director present shall cast one vote, except that no director shall be elected Chair for  more than three consecutive terms unless directors representing at least two‐thirds of all votes entitled  to be cast on behalf of all members and comprising at least two‐thirds of all possible directors (including  vacancies) shall so vote.   10. Regular meetings  A schedule of regular meetings of the Bboard shall be established at its annual organizational meeting.  The schedule shall be sent to the clerk of each member for posting.   11. Special meetings  (a) Special meetings of the Board may be called at any time by the Chair and shall be called by the  Secretary upon written request of a majority of the members of the Board directors.  (b) Each director shall be given at least 24‐hours' notice of any special meeting by telephone, written  notice delivered personally, e‐mail, fax, or regular mail. Directors waive the notice requirements if they  attend the special meeting, unless attendance is for the sole purpose of protesting the holding of the  meeting.  (c) No action may be taken at a special meeting which is not warned specifically in the notice.   12. Quorum and rules  (a) To transact business, a majority of all directors who are not all from the same member shall be  present and shall vote in favor of a motion for it to be effective. No proxies shall be allowed. A smaller  number may adjourn to a later date provided notice is given to all members as if such adjourned  meeting were a special meeting.  (b) All meetings of the Board and its committees shall be governed by the small boards sections of the  most recent edition of Robert's Rules conducted in accordance with rules of procedure adopted by the  Board at it organizational meeting.   Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  5    Formatted: Right 13. Vacancy  (a) A director may resign at any time by written notice to the Chair of the Authority. In cases of  municipal directors, notice shall also be given to the legislative body of the municipality represented.    (b) The Board may declare, by written certification to the legislative body of a member, a vacancy for the  position of the director from that member after the director has failed to attend three unexcused,  consecutive meetings of the Board within one year beginning in March and ending in February of the  subsequent year.  (c) Upon resignation, death, certification of vacancy by the Board, or removal from the municipality by a  director, the legislative body of that member shall appoint within 45 days a director for the remainder of  the term of such director. The appointment shall be certified by the clerk of the member to the  Secretary of the Authority.  (d) Each vacancy or withdrawal  resignation of a member shall reduce the number of directors needed  to constitute a quorum or binding vote of the Authority.   14. Officers  The officers of the Authority shall be the Chair and the Vice Chair of the Board of Directors, the  Secretary of the Authority, and the Treasurer of the Authority. There may also be an assistant secretary  and an assistant treasurer.   15. Bond  Within 30 days of their election or appointment, all officers shall post bond in such amounts as shall be  determined by the Board. The cost of such bond shall be borne by the Authority.   16. Public SafetyExecutive Director  The Board shall may appoint an Public SafetyExecutive Director, based on experience and demonstrated  competence, and shall set the salary and benefits for this office. The Public SafetyExecutive Director  shall oversee the operations and hire and supervise the personnel of the Authority.   17. Chair  The Chair shall preside at all meetings of the Board and shall make and sign all contracts on behalf of the  Authority upon approval by the Board. The Chair shall perform all the duties incident to the position and  office.   18. Vice Chair  The Vice Chair shall preside during the absence of the Chair or in the event the Chair elects not to  preside. In either case, the Vice Chair shall have the same duties and authority as the Chair.   Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  6    Formatted: Right 19. Acting chair  When both the Chair and Vice Chair are either absent or elect not to preside, the Board shall designate a  member of the Board to serve as acting chair. In any such case, the acting chair shall have the same  duties and authority of the Chair and shall serve until either the Chair or Vice Chair resume his or her  duties.   20. Secretary  (a) The Secretary of the Authority shall be appointed by the Board. The Secretary, with the approval of  the Board, may appoint an assistant secretary, who shall not be a director of the board.  (b) The Secretary shall have charge and custody of the public records of the Authority and the seal of the  Authority.  (c) The Secretary shall record all votes and proceedings of the Authority, including meetings of the  Authority and meetings of the Board and shall cause to be posted and published all warnings of  meetings of the Authority. The Secretary shall prepare all warnings of meetings of the Authority as  required.  (d) Following approval by the Board, the Secretary shall cause the annual report to be distributed to the  legislative bodies of the members. The Secretary shall prepare and distribute any other reports required  by laws of the State of Vermont and resolutions or rules of the Board.  (e) The Secretary shall perform all the duties and functions incident to the office of secretary or  secretary of a body politic and corporate.   21. Treasurer  (a) The Treasurer of the Authority shall be appointed by the Board. The Treasurer, with the approval of  the Board, may appoint an assistant treasurer, who shall not be a director of the Board. Neither the  Treasurer nor the assistant treasurer may be a director.  (b) The Treasurer shall have the custody of the funds of the Authority and shall be the disbursing officer  of the Authority. When authorized by the Board of Directors, the Treasurer shall sign, make, or endorse  in the name of the Authority all checks and orders for the payment of monies and pay out and disburse  the same.   22. Grand Juror  (a) The Board may appoint a Grand Juror who shall inquire into any person's offenses under the  Authority's rules or applicable law and present them to the proper authority. If the Attorney General or  the State's Attorney is unwilling to prosecute such offenses, the Grand Juror may do so. For these  purposes, the Grand Juror shall have the same authority within the Authority as a State's Attorney.  (b) The Grand Juror shall not be a director.   Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  7    Formatted: Right 223. Open meetings and public records  The conduct of all meetings and the maintenance of all records of the Authority and the Board shall be  governed by the laws of this State relating to open meetings and accessibility of public records.     234. Audit  The Board shall cause an audit of its financial records to be performed annually by an independent  professional accounting firm or a certified public accountant.   245. Committees  The Board shall have the authority to establish any and all committees as it may deem necessary.   256. Removal of officers  An officer may be removed by a vote of a majority of the Board whenever, in its judgment, the best  interest of the Authority will be served.   267. Fiscal year  The fiscal year of the Authority shall commence on July 1 and end on June 30 of each year.   278. Budget appropriation and assessment  (a) Proposed budget.  (1) Annually on or before January 1, the Board shall approve and cause to be distributed to the  legislative body of each member for review and comment an annual report of its activities, including a  financial statement, the budget history of the preceding two years, a proposed budget of the Authority  for the next fiscal year, and a budget projection for the two successive years. The Board may appoint a  budget committee to develop the proposed budget.  (2) The Board shall hold a public hearing on or before February 1 of each year to receive comments from  the legislative bodies of the members and hear all other interested persons regarding the proposed  budget. Additional public hearings may be held if the Board deems it appropriate to do so. Notice of  such hearing(s) shall be as provided in sections 389‐401 of this chapter, except that for additional public  hearings, the time requirements of section 389 shall be reduced by 15 days, and notice(s) need only be  published once.  (3) The Board shall give consideration to all comments received and may make such changes to the  proposed budget as it deems advisable.  (b) Budget adoption, appropriations, and assessment. Annually on or before January 1, the Board shall  approve the budget.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  8    Formatted: Right (1) At the Town Meeting Day elections, the voters of each member shall vote on appropriating the total  sums necessary to operate and carry out the Authority's functions for the next ensuing fiscal year. Ballot  totals from the members shall be totaled together, and the cumulative total will be used to determine  passage of the budget.  (2) Once a budget is approved, the Board shall assess each member for its proportionate share of the  sums so appropriated, less revenues anticipated from the members, and adopt a schedule designating  when such assessments are due and payable by the members.  (3) The members shall include the Authority's assessment as a separate line item on the annual property  tax bills so as to appropriate such sums as the member is apportioned, once voted as described in  section 289 of this chapter.   289. Cost‐sharing formula  (a) Following its initial meeting, the Authority shall be charged with the creation and acceptance of a  memorandum of understanding (MOU) that outlines a cost‐sharing formula between member  municipalities.  (b) The MOU shall then be proposed to the legislative bodies of the member municipalities for adoption.  (c) It is anticipated that the framework of the MOU will include prior historical costs as well as additional  items.   2930. Invoice  After adoption of the budget for the ensuing fiscal year, the Authority shall deliver an invoice to each  member for its share of the net cost of operating the Authority, accompanied by its budget estimates for  the next two years.   301. Collection  (a) Annually, on or before July 1, the Treasurer shall issue and present a warrant to the legislative body  of each member requiring that the amount of such assessment be paid beginning in accordance with the  schedule of payments adopted by the Board.  (b) The legislative body of each member shall draw an order on the municipal treasurer for the amount  of such assessment, and the municipal treasurer shall pay to the Authority Treasurer the amount of such  order.  (c) If any member shall fail to pay when due any assessment against it by the Authority, it shall incur an  additional charge  a penalty to be determined by that the Board which shall not exceed determines will  be reasonable. However, the charge shall not exceed eight percent of the unpaid assessment.  plus  interest. Interest shall also be charged on the unpaid assessment at a rate the determined by the  Board  determines to be reasonable, which shall not not exceeding what may be permitted by general law.   Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  9    Formatted: Right 312. Limitations of appropriations  (a) Appropriations made by the Board for the various estimates of the budget as defined in section 30 28  of this chapter shall be expended only for such estimates; however, by majority vote of the Board, the  budget may be amended from time to time to transfer funds between or among such estimates.    (b) The amount of any deficit at the end of the fiscal year shall be included in the next proposed  operating budget and paid out of the appropriations for that budget year. At the discretion of the Board,  any unencumbered balance may be placed in a reserve fund or returned to the members.   323. Indebtedness  (a) Short‐term borrowing.  (1) The Board may borrow money through the issuance of notes of the Authority for the purpose of  paying current expenses of the Authority. Such notes must mature within one year.  (2) The Board may also borrow money in anticipation of assessment to each member in an amount not  to exceed 90 percent of the amount assessed for each year, and may issue notes of the Authority which  must mature within one year.  (3) The Board may also borrow money in anticipation of grants‐in‐aid from any source and any revenues  other than assessments through the issuance of notes of the Authority. Such notes must mature within  one year but may be renewed as provided by general law.  (4) The Board may also borrow money in anticipation of bond proceeds which have been authorized as  provided in this chapter. These notes shall be issued as provided in 24 V.S.A. chapter 53.  (b) Long‐term indebtedness.  (1) Submission to voters.  (A)(i) On a petition signed by at least ten percent of the voters of the Authority, the proposition of  incurring a bonded debt or other indebtedness to pay for public improvements or of authorizing a long‐ term contract shall be submitted by the Board to the voters thereof at a special meeting to be held for  that purpose.  (ii) In the alternative, when the Board shall determine by resolution passed by the majority of members  present and voting at a duly warned and called meeting that the public interest or necessity demands  improvements or a long‐term contract, and that the cost of the same will be too great to be paid out of  the ordinary annual income and revenue, it shall order the proposition of incurring indebtedness or of  authorizing a long‐term contract to be submitted to the voters of the Authority at a meeting to be held  for that purpose.  (iii) As used in this subdivision (1)(A):  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  10    Formatted: Right "Long‐term contract" means a contract in which the Authority incurs obligations for which the costs are  too great to be paid out of the ordinary annual income and revenues of the Authority in the judgment of  the Board. (bb) "Long‐term contract" shall not include any contract that is subject to annual renewal or  extension at the election of the Authority, or any contract pursuant to which payment by the Authority  shall be subject to annual appropriations in accordance with the annual budget, or any contract for  services or the purchase or lease of equipment, materials, or supplies needed in the ordinary course of  business of the Authority.  (II) "Public improvements" shall include improvements which may be used for the benefit of the public,  whether or not publicly owned or operated.  (iv) Bonded debt or other indebtedness may be authorized for any purpose permitted by 24 V.S.A.  chapter 53 or and 119, and 10 V.S.A. chapter 12, or any other applicable statutes for any purpose for  which the Authority is organized.  (v) The Board may not submit to the voters more than twice in the same calendar year the proposition  of incurring bonded or other indebtedness to pay for the same or similar public improvement or of  entering the same or similar long‐term contract.  (B) Any bonds, notes, or other evidence of indebtedness of the Authority may be sold at par, premium,  or discount, at public or private sale or to the Vermont Municipal Bond Bank, as the Authority acting  through the Board of Directors shall determine.  (2) Warnings of meeting.  (A) The warning of a special meeting of the Authority to incur bonded debt or other indebtedness or to  authorize a long‐term contract shall state:  (i) the object and purpose for which the indebtedness or long‐term contract is proposed to be incurred  or authorized;  (ii) the estimated cost of the improvements or service;  (iii) the amount of bonds or other evidence of indebtedness proposed to be authorized;  (iv) a summary of the terms of any contract proposed to be authorized;  (v) means of raising or apportioning costs entailed thereby for debt service or payments under a long‐ term contract; and  (vi) the places where and the date and time when the meeting shall be held and the hours of opening  and closing the polls.  (B) The Board, in cooperation with the board of civil authority of each member, shall determine the  number and location of polling places. There shall be at least one polling place in each member.  (3) Notice of meeting.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  11    Formatted: Right (A) The Secretary of the Authority shall cause notice of such special meeting to be published in one or  more newspapers of known general circulation in the Authority once a week for three consecutive  weeks on the same day of the week, the last publication to be not less than five nor more than ten days  before such meeting.  (B) Notice of such meeting shall also be posted in at least three public places within each member at  least 30 and not more than 40 days before the meeting and be filed with the clerk of each member and  the Secretary of the Authority prior to posting.  (4) Authorization.  (A)(i) The voters of the members shall vote for or against the issuance of bonds or other indebtedness or  to authorize a long‐term contract based upon the majority of total votes cast by the voters.  (ii) When the majority of total votes so cast favors the issuance of bonds or other indebtedness or to  authorize a long‐term contract, the Authority shall be so authorized as provided in 24 V.S.A. chapter 53  (indebtedness) or other applicable statutes, or to enter into the long‐term contract.  (iii) The ballots cast in each member shall be counted by the election officials of each member,  preserved and secured with the checklist, and thereafter the results shall be certified to the Authority  Secretary within 48 hours.  (B)(i) The Authority may issue such authorized bonds, notes, or other evidence of indebtedness from  time to time in one or more series or separate series, as determined by the Board of Directors, provided  that the aggregate principal amount does not exceed the principal amount for which voter approval was  obtained.  (ii) Such bonds, notes, or other evidence of indebtedness may bear such date or dates; mature at such  time or times not exceeding 40 years from their respective dates; bear interest at such rate or rates  (including variable rates) payable semiannually, monthly, or at such other time as determined by the  Board of Directors; be in such denominations; be in such form, either coupon or registered; carry such  conversion or registration privileges; have such rank or priority; be executed in such manner; be payable  in such medium of payment; at such place or places; be subject to such terms of redemption, with or  without premium; and be declared or become due before the maturity date thereof, as such resolutions  authorizing their issuance may provide.  (5) Assessment.  (A) The cost of debt service or of payments under a long‐term contract shall be included in the annual  budget of the Authority, and shall be allocated among the members as provided in section 278 of this  chapter for the calculation of the annual budget assessment.  (B) The applicable provisions of 24 V.S.A. chapter 53 (indebtedness) or other enabling law under which  debt is incurred or long‐term contracts authorized shall apply to the issuance of bonds or other evidence  of indebtedness by the Authority and for that purpose the Authority shall be deemed a "municipal  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  12    Formatted: Right corporation," the Board shall be deemed a "legislative branch," and the Authority Treasurer shall be  deemed a "municipal treasurer" within the purview of that chapter.  (C) Bonds or other evidence of indebtedness and long‐term contracts shall be signed by the Treasurer  and the Chair of the Board.  (6) Bonds eligible for investment.  (A) Bonds and notes issued by the Authority shall be legal investments for all persons without limit as to  the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity.  (B) Such bonds and notes shall likewise be legal investments for all public officials authorized to invest  public funds.  (7) Tax exemption.  (A) All bonds, notes, or other evidence of indebtedness issued by the Authority are issued by a body  corporate and public of the State and for an essential public and governmental purpose.  (B) Such bonds, notes, and other evidence of indebtedness and the interest thereon and the income  therefrom, and all fees, charges, funds, revenues, income, and other monies pledged or available to pay  or secure the payment of those bonds, notes, and other evidence of indebtedness or interest thereon,  are exempt from taxation except for transfer, inheritance, and estate taxes.  (8) Purchases and disposition of own obligations.  (A) The Authority may purchase bonds, notes, and other evidence of indebtedness of the Authority out  of any of its funds or money available therefor.  (B) The Authority may hold, cancel, or resell the bonds, notes, and other evidence of indebtedness  subject to and in accordance with agreements with holders of its bonds, notes, and other evidence of  indebtedness.  (9) Presumption of validity. After issuance, all bonds, notes, and other evidence of indebtedness of the  Authority shall be conclusively presumed to be fully authorized and issued by all the laws of this State,  and any person or governmental unit shall be stopped from questioning their authorization, sale,  issuance, execution, or delivery by the Authority.  (10) Specific provisions. In connection with the issuance of any bonds, notes, or other evidence of  indebtedness, in addition to the powers it may now have or hereafter have, the Authority may make  such covenants and agreements and exercise such powers as contained in 24 V.S.A. chapter 53.   334. Sinking Fund  (a) The Board may establish and provide for a sinking fund for the retirement of bond issue or other  debt, or to provide security for the payment thereof.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  13    Formatted: Right (b) When so established, the sinking fund shall be kept intact and separate from other monies at the  disposal of the Authority, and shall be accounted for as a pledged asset for the purpose of retiring or  securing such obligations.  (c) The cost of payments to any sinking fund shall be included in the annual budget of the Authority.   345. Capital Reserve Fund  (a) The Board may establish and provide for a capital reserve fund to pay for public improvements,  replacement of worn‐out buildings and equipment, and major repairs of Authority facilities.  (b) Any such capital reserve fund shall be kept in a separate account and invested as are other public  funds and shall be expended for such purposes for which established.  (c) The cost of payments to any capital reserve fund shall be included in the annual budget of the  Authority.   356. Special Authority meetings  (a) The Board may on its own motion call special meetings of the Authority and shall call a special  meeting of the Authority when action by the voters of the Authority is required.  (b) The Board shall call a special meeting of the Authority if petitioned to do so by not less than five  percent of the voters of the Authority.  (c) The Board may rescind the call of the special meeting called on its own motion.  (d) The Board shall endeavor to schedule the time of special meetings to coincide with the time of  annual municipal meetings, primary elections, general elections, or similar meetings when the  electorate within the members will be voting on other matters.   367. Places of meetings  At any annual and special meeting of the Authority, voters of each member shall cast their ballots at  such polling places within the municipality of their residence as shall be determined by the Board in  consultation with the board of civil authority of each municipality.   378. Public informational hearings  (a) No fewer than 310 nor more than 420 days prior to any annual or special meeting of the Authority,  the Board shall hold at least one public informational hearing at which the issues to be voted upon at  the annual or special meeting shall be presented for public comment.  (b) Notice of such public informational hearings shall include a warning published in one or more  newspapers of general circulation in the Authority at least once a week, on the same day of the week for  three consecutive weeks, the last publication to be no fewer than five nor more than ten days before  the public informational hearing.   Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  14    Formatted: Right 389. Warnings required  (a) The Board shall warn an annual or special meeting of the Authority by filing a notice with the clerk of  each member and by posting or causing to be posted a notice in at least three public places in each  municipality in the Authority no fewer than 30 nor more than 40 days before the meeting.  (b) The warning shall be published in one or more newspapers of general circulation in the Authority  once a week on the same day of the week for three consecutive weeks before the meeting, the last  publication to be no fewer than five nor more than ten days before the meeting.   3940. Signing of warning  The original warning of any annual or special meeting of the Authority shall be signed by the Secretary  and Chair of the Board.   401. Warning contents  The posted notification shall include the date, time, place, and nature of the special meeting. It shall, by  separate articles, specifically indicate the questions to be voted upon.   412. Australian ballot  The Australian ballot system shall be used at all annual and special meetings of the Authority.   423. Qualifications and registration of voters  All lLegal voters of the members municipalities shall be legal voters of the Authority. The municipality  shall post and revise checklists in the same manner as for municipal meetings prior to any Authority  meeting.   434. Conduct of meetings  (a) At all special meetings of the Authority, the provisions of Title 17 shall apply except where clearly  inapplicable.  (b) The Authority Secretary shall perform the functions assigned to the Secretary of State under that  title. The Washington Chittenden Unit of the Vermont Superior Court shall have jurisdiction over  petitions for recounts. Election expenses shall be borne by the Authority.   445. Reconsideration or rescission of vote  (a) A question voted on at any special meeting of the Authority shall not be submitted for  reconsideration or rescission except at a subsequent special meeting duly warned for that purpose and  called by the Board on its own motion or pursuant to a petition requesting such reconsideration or  rescission signed and submitted in accordance with subsection (b) of this section.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  15    Formatted: Right (b) Where a petition signed by not less than five percent of the qualified voters of the Authority  requesting reconsideration or rescission of a question considered or voted on at a previous special  meeting is submitted to the Board within 30 days following the date of that meeting, the Board shall  provide for a vote by the Authority in accordance with the petition within 60 days of the submission at a  special meeting duly warned for that purpose.  (c) A vote taken by a special meeting shall remain in effect unless rescinded at a special meeting called  and warned in accordance with this section 38.  (d) A question voted on shall not be presented for reconsideration or rescission at more than one  subsequent meeting without the approval of the Board.   456. Validation of Authority meetings  (a) When any of the requirements as to notice or warning of a special Authority meeting have been  omitted or not complied with, if the meeting and the business transacted is otherwise legal, the  omission or noncompliance may be corrected and legalized by vote at a special meeting of the Authority  called and duly warned for that purpose.  (b) The question to be voted upon shall substantially be: "Shall the action taken at the meeting of the  Authority held on (state date), in spite of the fact that (state the error or omission), and any act or action  of the Authority officers or agents pursuant thereto be readopted, ratified, or confirmed?"  (c)(1) Errors or omissions in the conduct of any prior special meeting which are not the result of an  unlawful notice or warning or noncompliance within the scope of the warning may be cured by a  resolution of the Board by a vote of at least two‐thirds of all the votes entitled to be cast at a regular  meeting or a special meeting called for that purpose, stating that a defect was the result of an oversight,  inadvertence, or mistake.  (2) When an error or omission has been corrected by resolution, all business within the terms of the  action of the qualified voters shall be as valid as if the requirements had been in compliance initially on  the condition that the original action by the Board was otherwise in compliance with the legal exercise  of its corporate powers.   467. Priority  When a special meeting of the Authority is called to act to incur bonded or other indebtedness or to  enter into a long‐term contract and the meeting procedures in this chapter conflict with the procedures  in 24 V.S.A. chapter 53, subchapter 1, the procedures in 24 V.S.A. chapter 53, subchapter 1 shall prevail.   478. Withdrawal of a municipality  (a)(1) Subject to the provisions of subsection (b) of this section, a member may vote to withdraw from  this chapter in the same manner as it votes to adopt the chapter if three years have elapsed since the  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  16    Formatted: Right Authority has become a body politic and corporate and if the Authority has not voted to bond for  construction and improvements, all in accordance with 24 V.S.A. § 4863(g).  (2) The provisions of 24 V.S.A. § 4863(i) and (j) shall apply so that any vote of withdrawal taken less than  one three years from the time the Authority has become a body politic and corporate or any vote of  withdrawal taken after the Authority has voted to bond for construction and improvements shall be null  and void.  (3) The membership of a withdrawing member shall terminate as of one year following a valid vote to  withdraw or as soon after such one‐year period as the financial obligations of the withdrawing member  have been paid to the Authority.  (4) Notwithstanding the provisions of this subsection (a), in the event that the General Assembly of the  State of Vermont shall specifically approve, a member may vote to withdraw from the Authority at any  time.  (b) The financial obligations of a withdrawing member shall include all ongoing costs and assessments of  the Authority until the withdrawing member has entered into a written agreement satisfactory to  counsel for the Authority obligating the withdrawing municipality as follows:  (1) to continue to pay its share of all debts incurred by the Authority for the remaining terms of all bonds  and contracts in existence at the time when the vote to withdraw was taken;  (2) to pay its share, based upon its assessment for the year in which it withdraws, of the defense costs  and judgment rendered in any legal action brought against the Authority arising or accruing in any year  during which it was a member of the Authority;  (3) to pay its share, based upon its assessment for the year in which it withdraws, of all unbudgeted  costs and expenses of the Authority arising out of the activities of the Authority during the withdrawing  member's term of membership, regardless of when such costs and expenses may be discovered; and  (4) to pay all of these additional costs either in a lump sum or in installments at such times and in such  amounts as required by the Board.  (c)(1) After a member has voted to withdraw, the Board shall give notice to the remaining members of  the vote to withdraw and shall hold a meeting to determine if it is in the best interest of the Authority to  continue to exist. All interested parties shall be given an opportunity to be heard.  (2) If the Board determines that it would be in the best interests of the Authority to cease operations,  the Board may prepare and implement a plan for dissolution of the Authority.   489. Admission of additional municipalities  (a) The Board, by the affirmative vote of directors representing at least two‐thirds of all votes entitled to  be cast on behalf of all members and comprising at least two‐thirds of all possible directors (including  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  17    Formatted: Right vacancies), may authorize the inclusion of additional municipalities in the Authority upon such terms  and conditions as it shall deem to be fair, reasonable, and in the best interests of the Authority.  (b) The petitioning municipality shall comply thereafter with the approval procedures specified in 24  V.S.A. chapter 121 (intermunicipal cooperation and services). If a majority of the voters of the  petitioning municipality present and voting at a meeting of such municipality duly warned for such  purpose shall vote to approve the agreement and the terms and conditions for admission, the vote shall  be certified by the clerk of that municipality to the Secretary of the Authority, and the municipality shall  be a member.   4950. Dissolution of the Authority  (a)(1) Upon the affirmative vote of directors representing at least two‐thirds of all votes entitled to be  cast on behalf of all members and comprising at least two‐thirds of the directors present, the Board may  prepare a plan of dissolution for submission to the voters of the Authority at a special meeting of the  Authority duly warned for such purposes.  (2) If the voters of the Authority present and voting at such special meeting of the Authority vote to  dissolve the Authority, the Authority shall cease to conduct its affairs except insofar as may be necessary  to complete the plan of dissolution and conclude its affairs.  (3) The Board of Directors shall cause a notice of the plan of dissolution to be mailed to each known  creditor of the Authority and to the Secretary of State.  (b) The plan of dissolution shall, at a minimum:  (1) identify and value all assets of the Authority;  (2) identify all liabilities of the Authority, including contract obligation;  (3) determine how the assets of the Authority shall be liquidated and how the liabilities and obligations  of the Authority shall be paid, to include assessments against municipalities of the Authority; and  (4) specify that any assets remaining after payment of all liabilities shall be apportioned and distributed  among the municipalities according to the same basic formula used in apportioning the costs of the  Authority to the municipalities.  (c) When the plan of dissolution has been fully implemented, the Board shall certify that fact to the  members whereupon this chapter and the Authority shall be terminated.   501. Amendment of the Authority agreement  (a)(1) Amendments to this chapter may be proposed by a petition signed by five percent of the voters of  the members, or by the Board, by a resolution expressing the intention to amend the chapter.  (2) A copy of such resolution shall be mailed to the legislative bodies of the members and to each  director at least ten days prior to the meeting scheduled to act on the proposal of amendment.  Central Chittenden County Public Services Authority Charter  JB Draft1 4.24.15  18    Formatted: Right (b) Unless a majority of the  two members request, in writing, on or before the date of the meeting  scheduled to act on the amendment, that the Board hold a special meeting of the Authority to vote on  the amendment, the Board may adopt the amendment.  (c)(1) Within ten days of the adoption of the amendment by the Board or by the voters of the Authority,  the Secretary of the Authority shall certify to the Secretary of State each proposal of amendment.  (2) The Secretary of State and the General Assembly shall then proceed as with municipal charter  amendments under 17 V.S.A. § 2645.  (d) No amendment shall substantially impair the rights of the holders of any bonds or other notes or  other evidence of indebtedness or substantially affect any obligations under long‐term contracts of the  Authority then outstanding or in effect, or the rights of the Authority to procure the means for payment,  continuation, or termination thereof.   512. Seal  The Authority shall have a seal designed as the Board requires.   523. Severability  Should any court of competent jurisdiction judge any term, phrase, clause, sentence, or provision of this  chapter to be invalid, illegal, or unenforceable in any respect, such judgment shall not affect the validity,  legality, or enforceability of the chapter as a whole or any other part of this chapter.   534. Ratification  (a) This chapter shall take effect upon the approval by the voters of each member, at its annual meeting;  enactment of the chapter by the General Assembly; and subsequent to the enactment, ratification of  the chapter by each of the legislative bodies of the members.  (b) The legislative bodies of the members shall have authority to ratify ceding of authority over different  services, as the Authority evolves. The Authority shall make formal separate requests of the legislative  bodies for dispatch, police, fire, and emergency services, as the Authority is ready to begin administering  those services, and the legislative bodies of each member shall then vote on ceding such authority to  the Authority.