Minutes 02/26/2019 - Laserfiche WebLink

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February 26, 2019 Background:  The Capital Improvement Fund includes a project for the design and construction of a new waste management building to be located at the City Operations Center on Frederick Boulevard.  As part of the adoption of the FY 2018 Capital Improvement Fund Budget, City Council appropriated $1,300,000 in bond proceeds for the project.  There is sufficient fund balance within the Waste Management Fund to use cash for the project rather than incurring debt. Discussion:  The ordinance prepared for City Council consideration changes the funding source for the $1,300,000 2018 appropriation from “bond proceeds” to an “operating transfer in” from the Waste Management Fund.  Design for the new waste management building has been completed and, subject to appropriation of the additional funding needed for the project in the FY 2020 budget, it is anticipated that construction will commence during Fiscal Year 2020. Financial Impact:  This is not a new appropriation. It will change the source of funding for a prior appropriation from bond proceeds to Waste Management Fund fund balance. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action: The Finance Department will make the necessary budget adjustment.  Motion by Ms. Psimas, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE MODIFYING THE SOURCE OF FUNDING IN THE CAPITAL IMPROVEMENT FUND BUDGET FOR THE CONSTRUCTION OF A NEW WASTE MANAGEMENT BUILDING.” Ayes: Clark, Glover, Lucas-Burke, Moody, Psimas, Rowe Nays: None 19 - 79 - Adoption of a resolution electing to proceed with negotiations with AHP Development, LLC regarding the potential construction of new City Hall, Parking Garage and public safety facilities, and the redevelopment of vacated properties. Background:  In May 2018, AHP Development, LLC (a subsidiary of Armada Hoffler Properties, Inc.) presented the City with an unsolicited proposal for the construction of new City Hall, parking garage and public safety facilities, and the subsequent redevelopment of vacated properties.  The City received the proposal in accordance with the Virginia Public Private Education and Infrastructure Act of 2001, as amended (“PPEA”).  As required by the PPEA, the City gave public notice of the receipt of the proposal and invited competing proposals.  One additional proposal was received and subsequently withdrawn.  By Resolution R-18-33 adopted on November 27, 2018, City Council directed City staff to analyze the Armada proposal.  Based on City staff’s preliminary analysis, the proposal is worthy of further discussion to determine whether the parties can reach agreement on terms for a binding Development Agreement.  The City and AHP Development, LLC have prepared a draft Memorandum of Understanding to demonstrate their mutual intent to proceed with efforts to negotiate a Development Agreement.