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HomeMy WebLinkAboutMinutes - City Council - 11/06/2023 CITY COUNCIL 6 NOVEMBER 2023 The South Burlington City Council held a regular meeting on Monday, 6 November 2023, at 6:30 p.m., in the Auditorium, 180 Market Street, and by Go to Meeting remote participation. MEMBERS PRESENT: H. Riehle, Chair; M. Emery,T. Barritt, A. Chalnick, L. Kupferman ALSO PRESENT:J. Baker, City Manager; Chief S. Locke, Deputy City Manager; C. McNeil, City Attorney; T. DiPietro, Director of Public Works; M. Machar, Finance Director; Deputy Fire Chief Francis; N. Gingrow, IT Director; A. Matth, Recreation and Parks Director; I. Blanchard, Community Development Director; L. Bresee, Energy Project Manager; B. Britt, J. Stevens, P. Spitler, E. Sutherland, S. Hirsch, A. Demetrowitz, A. Overnicky, R. Chittenden, M. Senecal, S. Dooley, V. Bolduc, D. Campbell, D. Albrecht, M. Cota, R. Gosselin, Rep. N. Hyman, L. Amler, G. Dolbec, M. Scott, F. Von Turkevich, B. Sirvis, C. Timmons, R. Doyle, L. Bailey, K. Calcagni, C. Trombly, D. Peters, 1. Instructions on exiting building in case of emergency and review of technology option: Ms. Baker provided instructions on emergency exit from the building and reviewed technology options. 2. Additions, deletions or changes in the order of Agenda items: No changes were made to the Agenda. 3. Comments and questions from the public not related to the agenda: Ms. Sutherland said school zones are desperately needed near Tuttle, Orchard, and the High School. She hoped the Council would make school safety a priority. Ms. Riehle noted that at the Steering Committee meeting, there was an agreement between the Council and School Board to create a school safety task force. All the discussions were very positive. 4. Announcements and City Manager's Report: Council members reported on meetings and events they had recently attended. Ms. Baker: Met with Congresswoman Balint regarding City Center funding. There is a Social Worker Intern working with the Library at a table outside the Library on Tuesdays, Wednesdays, and Thursdays. CITY COUNCIL 6 NOVEMBER 2023 PAGE 2 The Dorset Street signal project is moving forward. The right lane near Holiday Inn will be closed for a few weeks during this project. At the end of the project, the lights will be re-programmed. New crosswalks have been installed. One is on Patchend Rd and two are on Williston Road. Public Works will be surveying regarding what they are discharging into the system. Plows are now being put on city trucks in anticipation of winter. The senior holiday meal will be on 8 December at 5:30 p.m. Council members are invited. 5. Consent Agenda: a. Approve and Sign Disbursements b. Approve an agreement with Spear Street Solar for a waiver of the setback requirement c. Award the Wastewater Industrial User Survey contract to Hoyle Tanner& Associates d. Approve the submission of a Step 2 Vermont Clean Water State Revolving Loan Program loan application for the Airport Parkway Solids Handling Improvement Project and name Thomas DiPietro, Director of Public Works,as the City's authorized representative. e. Approve the submission of a Step 2 Vermont Clean Water State Revolving Loan Program loan application for the Bartlett Bay Wastewater Treatment Facility Refurbishment Project and name Thomas DiPietro, Director of Public Works, as the City's authorized representative. f. Approve interim agreements for the maintenance of(1) roads, sidewalks, and the shared use path, and (2)for pump station maintenance at Spear Meadows g. Approve the MS4 Community Grant application to reduce the adverse impacts to water quality from discharge and stormwater runoff. Mr. Barritt moved to approve the Consent Agenda as presented. Ms. Emery seconded. Mr. Chalnick asked for an explanation of items d-g. Mr. DiPietro said items "d" and "e" are the first loan for the work on the sewer treatment plans pursuant to the bond passed by the voters in March. "f" is related to the plowing of roads that are not yet public but are in the warranty CITY COUNCIL 6 NOVEMBER 2023 PAGE 3 period, and the city has agreed to plow them. "g" is an application for a grant to help the city comply with phosphorus control. Ms. Baker said the city will be getting $750,000. In the vote that followed, the motion passed unanimously. 6. Introduce Nick Gingrow, Information Technology Director, and Adam Matth, Recreation and Parks Director: Ms. Baker introduced Mr. Gingrow and Mr. Matth and reviewed their backgrounds. She noted that both men are South Burlington residents. Mr. Gingrow said he has lived in South Burlington for a long time and also worked with Sen. Thomas Chittenden at UVM for a number of years. He noted that Larry King, a former member of the IT team, has moved on, and there is an ongoing search for his replacement. Mr. Matth said he moved to Vermont in 2012. He was with the Lake Monsters for 9-10 years, then in the UVM Athletic Department. He looks forward to bringing people together in exciting ways. 7. Consider an appointment to the Development Review Board: The Council interviewed Gabe Simpson and Charles Johnson for appointment to the Development Review Board (DRB). Following the interviews, the Council agreed to make the appointment at the end of the meeting. 8. Receive a Recommendation from the Affordable Housing and Housing Trust Fund Committees requesting additional funding be allocated to the Housing Trust Fund: Mr. Trombly said this item has been on the committee's agendas for three years. They were "wowed" by the $1,000,000 of ARPA money they received. One thing they could not fund was a "land bank," and they are looking to fund that. The 2 committees have held robust discussions and are making the following 3 requests: 1. Increase the annual contribution to the Housing Trust Fund from $50,000 to $150,000, nondiscretionary and adjusted for inflation CITY COUNCIL 6 NOVEMBER 2023 PAGE 4 2. Make a one-time contribution of$500,000 to start a "land bank." There is a very simple land bank model. Upon sale of the land, the money would go back into the fund. 3. Eliminate impact fees for affordable housing. Mr.Trombly noted that the cost of projects has increased considerably. These requests would help to reduce the overall cost. Ms. Peters said the committees would provide the exact wording that was voted on. She added that the cost to build or buy is staggering. If there wasn't a project one year, there could be $300,000 put in the fund (along with the annual $150,000 contribution). Ms. Riehle asked the difference between the $150,000 and the $500,000. Mr.Trombly said they would be 2 separate funds. He noted that in a short time, they received 5 applications for the $150,000. The additional money would close the gap. Ms. Riehle asked if developers might think the city doesn't need them because it has the money. Mr.Trombly said it is actually the opposite. Other towns would not have the money to fill the funding gap that the $150,000 can fill. Mr. Kupferman noted that the $150,000 has been used to fill in gaps when a developer goes before funding boards. Shortly after ARPA expired, there was land to buy that they couldn't buy. Mr. Trombly noted that when the committee visited the project in Winooski, the cost per unit was $250,000. It is now about $500,000 per unit, which is prohibitive. Mr. Chalnick noted a donation made to the fund. Mr. Trombly said the donation is an 80-unit building, but it has no support services and no on-going funding. The donation money will be used for services. Mr. Kupferman said they need funding for salaries for support staff. Ms. Baker added that she is on the Champlain Housing Trust Board and can talk to the Council regarding how those funds are used. Ms. Riehle asked what the city would need to do to support a land bank. Ms. Baker said there are a number of ways to set it up. Staff could research how other communities have done this and suggest options. CITY COUNCIL 6 NOVEMBER 2023 PAGE 5 Ms. Emery said she thought it was time to increase the Housing Trust Fund since it was set up in 2015. She also favored a revolving trust fund as a good way to get people into the housing market with home ownership. Mr. Chalnick agreed with increasing the Housing Trust Fund. He felt a revolving fund needs more discussion. Ms. Riehle agreed and felt it should be part of the budget discussion. She was not sure about eliminating impact fees. Mr. Trombly said it could be revenue neutral if market value units paid a little more. Ms. Riehle urged the committees to come back with appropriate language. 9. Further Consider a Proposed Residential Rental Ordinance, information on staffing and space planning, and provide direction to staff. The Council could consider warning a first reading of the ordinance for 2 January 2024: Chief Locke reviewed changes made to the proposed ordinance following the last meeting: a. The rate for permanents affordable units was reduced to zero. b. An exemption was added for existing units being used as Airbnb's until that property is sold. They could then no longer be Airbnb's. Chief Locke said a special fund would be created to fund the addition to the Fire Station for an area to deal with reinforcement of the ordinance. This would be paid back from fees in 10 years. Mr. Barritt said there would have to be strict guidelines as to who is eligible for funding. Chief Locke said it is not a substantial amount of money, but it could help someone "get over the finish line." Ms. Emery asked about "home share." Chief Locke said home share would be allowed. It would be required to be registered and inspected as a rental. They would have to pay the cost per unit. The Chief noted that Mr. Chalnick's amendment would eliminate the registration fee and inspection. Mr. Timmons of Home Share Vermont said Burlington has an exemption for owner- occupied units. This is an affordable way to house people, and it would be good to continue this with as few barriers as possible. Mr. Chalnick felt it was intrusive for someone with a roommate or a home share person to have the city come in and inspect, etc. Chief Locke said those were not counted in the modeling. CITY COUNCIL 6 NOVEMBER 2023 PAGE 6 Ms. Emery said he main concern was safety, and the intrusion should not be considered hostile. There should be assurance that smoke alarms are in working order. Renters should also have recourse in case there are concerns that are not being met. Mr. Barritt asked how distinctions can be made between different types of rentals as there are some "grey zones" Ms. Emery said that when there is an inspection, the tenant should be made aware of deficiencies. She added that it is important for people to know the city cares about their well-being. Mr. Chalnick said the effective date should be immediate, not some time in the future. Mr. McNeil said he would be more comfortable using the date the Ordinance goes into effect. Mr. Chalnick said he would like to limit exemptions to locally-owned Airbnb's. Ms. Emery was concerned with people in residential neighborhoods who are now surrounded by commercial properties. Owners are not respecting the residential zoning. There is a lost sense of neighborhood. She felt residents could legitimately say their property values have decreased because of this. Mr. McNeil said there is litigation all over the country. Burlington is being challenged in court. "Primary residence" has been upheld in some places, challenged in others. The city can't rely on a particular precedent and could potentially have a court challenge. The Supreme Court has not made a decision. Mr. Barritt said you can't build a hotel in those areas; what is so different about renting out rooms in your house? He felt that if it isn't allowed in the zoning, the city has a legal right to halt it. Mr. McNeill said this is an Ordinance which is not the same as zoning. Mr. Kupferman asked how many places does this involve. Chief Locke said the city knows of 75 short-term rentals. Mr. Kupferman said they are attempting to create a rental registry and regulate short-term units in the same ordinance. He felt they should be separated. Chief Locke said they are close to getting over the finish line. He felt that Mr. Chalnick's recommendations would allow them to capture the majority of problems. Mr. Chalnick read the language of his recommendations. It provides coverage for people who rent for 30 days or more with access to an entire unit. Ms. Emery felt there should be something to indicate to a renter that a place has not been inspected. CITY COUNCIL 6 NOVEMBER 2023 PAGE 7 All members except for Ms. Emery were OK with Mr. Chalnick's language being inserted. Chief Locke said notification can be covered elsewhere. Mr. Chalnick said he would like this to be self-funded. Ms. Emery said there are some Airbnb's that are charging$350.00 a night. She felt they should be charged $3000.00 a year depending on the nightly rates and as low as $150.00 a year if they are owner-occupied. Mr. Kupferman said he didn't think there is a code enforcement program that will pay for itself. Just the staffing can't be supported by a fee-based program. Members were OK with $1500.00 for non-owner-occupied rentals. Members also agreed that the charge for an affordable unit should be $25.00 for the inspection. Public comment was then heard as follows: Mr. Dolbec: A few units near where he lives are owned by out-of-staters and a rented out. There are traffic issues with renters driving too fast. He is concerned about his young children. There are no background checks on the renters and there is no way to police this. He stressed that the neighborhood is zoned residential and asked why a commercial use is being allowed. He asked the city's support in dealing with this. Mr. Stevens: Airbnb's should be required to get a zoning permit and should be allowed only in mixed residential/commercial zones. They should not be grandfathered. He felt that residents suffer while perpetrators are protected. He cited the need to take a stance against the proliferation of Airbnb's. He cited advertisements that tell property owners they can increase their profits by 300-400%. Out-of-state owners don't care about the community, only the profit, and citizens should not have to bear the results on their quality of life. He felt the ordinance is a good start, but it does not help with the existing issue. Courts have decreed a community has the right to enforce zoning. If an Airbnb doesn't have a zoning permit, they are running a business illegally. The regulations also require a 65-foot setback from a residential area for a commercial use. These commercial uses are actually right in the residential area. Mr. Spitler: He lived across the street from an Airbnb in Shelburne for many years. It was owner occupied. He never knew it was there. When he moved to South Burlington, within 2 months there were 2 Airbnb's on the street. Lights are left on all night shining in his windows. Traffic has increased on their single lane road. His dog has been attacked. There have been so CITY COUNCIL 6 NOVEMBER 2023 PAGE 8 many cars parked on the street that he hasn't been able to get to his home. He tried reaching out to the owners but has had no reply. He implored the city to corral this issue. Ms. Hirsch: Owns an owner-occupied Airbnb which keeps her afloat. She understands the concerns and acknowledges that out-of-state owners have a lack of respect. She is not booked every night, and there have been no complaints from neighbors. Ms. Demetrowitz: Supports the ordinance because it protects long-term renters and assures code compliant homes. There is also a place to turn with concerns. She supported a zero fee for affordable units as they are inspected annually by several agencies. Ms. Overnicky: There are both owner-occupied and non-owner occupied rentals across the street, and there have been no problems. The issue is with management. She felt that if there are issues, owners should lose their permits. She thought there were only about 20-25 non-owner occupied rentals. Mr. Chittenden: Owns an Airbnb in Starksboro to help with taxes. The taxes on his South Burlington home went up 30% with reassessment. This is a generational property, and he can't rent it full time or there would be no place for him to live. Without the added income, he would be forced out of South Burlington. The neighbors in Starksboro love his Airbnb. Ms. Senecal: Cited the importance of funding safety upgrades for long-term rentals. She also thought there should be education as to what safe housing looks like so people know what to ask for. Ms. Dooley: She noted that "congregate care facilities" are not considered in the Ordinance. There are 3 buildings in the Quarry Hill development that are called "congregate care" but are actually apartments with a community room. Mr. Conner said there is no count of how many buildings are "congregate care." They did not count in the density count. She was concerned that the city is exempting these apartments for seniors. Mr. Bolduc: Is concerned with the budget and "inspection fatigue." He suggested inspection sampling of a percentage every year. This would save staff time. Christie: Has an owner-occupied short-term rental. She made $11,000 this year which helps pay for improvements to her home. Some improvements are more costly than what she earns in a year. She said some renters are not getting rich. CITY COUNCIL 6 NOVEMBER 2023 PAGE 9 Mr. Campbell: Operates a short-term rental and lives outside of South Burlington. Supports a rental registry for long and short-term rentals. Most short-term renters do this so they can live and retire here and be near grandchildren. They love this community. Agreed that short-term rentals should end when a property is sold. Has a local manager. Felt the ordinance was fair and enforceable. Mr. Doyle: Liked the progress in the Ordinance. Charges$35.00 a night with a discount for 6 weeks. It is not always fun having people come in and out of his house. Have had people stay with him because their leases have run out before graduation. Hotels are very expensive. He agreed with the safety focus. Mr. Chalnick suggested that there be a sunset of 3 or 4 years so neighbors will know when "the nightmare is over." Ms. Emery agreed. Mr. McNeil noted that if a short-term rental use is stopped for 6 consecutive months, the property can no longer be registered as a short-term rental. Ms. Emery said the argument regarding commercial vs. residential has merit. To allow this to exist indefinitely would be a problem. She favored a sunset of about 3 years. Ms. Baker said staff will bring back what they heard tonight so the Council can then warn a public hearing. Ms. Riehle said if tenants are noisy or disruptive, there is the ability of the city to revoke the right to rent that property. This would allow for relief even during the sunset period. Mr. Kupferman asked what would stop someone from opening a new Airbnb during the sunset period. Ms. Riehle said that can be addressed by the Planning Commission. 10. Introduce the Draft of the Climate Action Plan (CAP)—Government Operations Implementation Plan, and provide direction to staff: Ms. Baker noted that the city had been unable to find a consultant to do this work, so the decision was made to ask Lou Bresee who agreed to do it. Mr. Bresee said the CAP has set rather a rather aggressive target of 95% reduction by 2050. There is money in the CIP (80%of the estimated cost), so the city will not have to start as zero. All the actions involve equipment that will have to be replaced at least twice by 2050. CITY COUNCIL 6 NOVEMBER 2023 PAGE 10 Mr. Bresee then reviewed progress to date including: a. Multiple solar arrays b. Thermophilic digester at Airport Plant c. LED light transition d. Wheeler House insulation e. GMP carbon free f. Hybrid Police cars The following items are scheduled to be addressed by 2030: a. Bartlett Bay Treatment Plant upgrade b. Begin to convert fleet to electric vehicles c. Begin to convert natural gas heating to heat pumps d. Weatherization Mr. Bresee said the work can't be done faster because they can't find people to do the work, and current equipment is aging. Mr. Bresee then showed a pie chart of targets. He noted that the cost of all known technology projects is $45,000,000. Mr. Barritt asked about bio-diesel. Mr. Bresee said they are looking at that. One problem is distribution in Vermont. Mr. Bresee noted that he received ideas from almost all employees. He showed a list of ideas and said that people will be told when their ideas are activated. Mr. Bresee then reviewed actions that are underway including: a. Complete initial version of plan b. Trying to get bids c. Join CATMA d. Replace 3 rooftop units at Public Works e. Get grants for more charging stations f. Get grants to weatherize Fire Station #2 and Wheeler House CITY COUNCIL 6 NOVEMBER 2023 PAGE 11 The hope is that this plan will reduce greenhouse gases. This will have to be monitored every day for the next 25 years. Mr. Chalnick noted that there are robust credits available, up to $40,000 for vehicles. With regard to carbon capture, there is a small-scale business where you can get credit from the government for every ton captured. Ms. Riehle noted there is now a cement that absorbs carbon. Ms. Baker noted the city has been doing much of this for years. This just codifies it and pulls everyone in the same direction. This will be built into the FY25 budget, if the Council says so. It would require $600,000 a year in the budget to meet the goals. 11. Receive an update on the status of TIF projects with a focus on right-of-way and financing: Ms. Blanchard said there is a lot of work that the City Council will need to do over the winter. This is a critical time as the deadline to incur debt is March 31, 2024. Right-of-way acquisition is in various stages with letters having been sent out to owners. The boardwalk is 100%TIF eligible and is anticipated to be completed by the end of 2024. It has a $2,000,000 budget and also uses impact fees. The budget for the Walk/Bike Bridge is much higher than anticipated with steel being the major cost driver as well as soils and inflation. The plan is now for the bridge to be narrower with no separation between bikes and pedestrians. This reduces steel needs significantly. There will still be a lot of landscaping. Ms. Blanchard then showed the bridge alignment. She noted that the Quarry Hill access has been resolved. The U-Mall access has been moved north to align with the existing wall. This eliminates the need for one wall. The budget for this project is now $22,518,400. The city has applied for two grants and is applying for "gap funding." The Williston Road Streetscape has a $2,600,000 budget and is in the right-of-way acquisition phase. It is 50%TIF eligible and has an $800,000 federal grant. The recommendation is to use impact fees for this project. The city is also applying to the State for "gap funding" for the $480,000 gap. The Garden Street budget is $12,801,000. $11,000,000 was approved by voters. The recommendation is to use impact fees to cover the gap at the end of the project. CITY COUNCIL 6 NOVEMBER 2023 PAGE 12 Mr. Chalnick asked what would happen if the gap on the bridge funding can't be filled. Ms. Blanchard said there are many places they can go for funding as this is a regional project. Ms. Baker praised Ms. Blanchard's great job of being aggressive in meetings regarding issues. 12. Discuss and possibly approve shifts in the Council Liaison roles: Following discussion, Ms. Emery moved that Mr. Kupferman be the liaison to the Natural Resources Committee and Mr. Chalnick be the liaison to the Bike/Ped Committee. Mr. Barritt seconded. Motion passed unanimously. 13. Other Business: Ms. Emery moved to appoint Charles Johnson to the DRB. Mr. Barritt seconded. Motion passed unanimously. Ms. Emery cited her disappointment in the Channel 22 report on the City/School Board safety efforts. She suggested a joint statement of what the two boards have agreed to do together. Ms. Baker suggested a Council member take the lead on that effort. As there was no further business to come before the Council Mr. Barritt moved to adjourn. Mr. Chalnick seconded. Motion passed unanimously. The meeting was adjourned at 11:12 p.m. Clerk