City of Burlington, VT

BURLINGTON CITY COUNCIL

CONTOIS AUDITORIUM, CITY HALL

BURLINGTON, VERMONT

MINUTES OF MEETING

November 4, 2019

MEMBERS PRESENT: Kurt Wright (Council President) – Ward 4

Perri Freeman – Central District

Franklin Paulino – North District

Joan Shannon – South District

Jack Hanson – East District

Sharon Foley Bushor – Ward 1

Max Tracy – Ward 2

Brian Pine – Ward 3

William “Chip” Mason – Ward 5 [left at 9:06 PM]

Karen Paul – Ward 6 [arrived 6:58 PM]

Ali Dieng – Ward 7 [arrived 6:52 PM]

Adam Roof – Ward 8

ADMINISTRATION: Mayor Weinberger

Beth Anderson, CAO

Rich Goodwin, DFO

Eileen Blackwood, City Attorney

Jordan Redell, Mayor’s Office

Olivia LaVecchia, Mayor’s Office

Deanna Paluba, HR

Brian Lowe, IT

Lori Olberg, C/T

Amy Bovee, C/T

Chapin Spencer, DPW

Norm Baldwin, DPW

David White, Planning

Meagan Tuttle, Planning

Todd Rawlings, CEDO

Cindi Wight, Parks & Rec

John Vickery, Assessor

Chris Burns, BED

OTHERS PRESENT: Ralphine O’Rourke

Todd Shurz

Mike Loucy

Ritchie Berger

Carl Fowler

Laurie Allen

Melinda Moulton

Charles Sudbay

Rick Moulton

Staige Davis

Lea Turhune

Ali House

Charlie Messing

Jane Knodell

Steve Goodkind

[Note: Minutes reflect the order of the published agenda.]

1.0 CALL TO ORDER

Council President Wright called the City Council meeting to order at 6:13 PM on November 4, 2019.

1.01 Agenda

MOTION by Councilor Bushor, SECOND by Councilor Tracy, to approve the agenda with the following amendments:

Note materials for Item 5.11 (Shelburne Street Roundabout Necessity and Compensation Hearings)
Remove Item 5.12 (Renters Protections) and place on Deliberative Agenda as Item 6.04
Note information on Item 6.03 (Possible Uses of BT Proceeds)

VOTING: unanimous; motion carried.

2.0 EXECUTIVE SESSION: Restoration of Passenger Rail Service to Downtown Burlington – DPW, City Attorney

City Attorney Blackwood explained the city is in negotiations and there is confidential information that would place the city at a disadvantage if prematurely publicly disclosed. Councilor Pine asked if there are items that can be discussed in open session. City Attorney Blackwood said there is a presentation in open session and a presentation will be given to the TEUC on 11/19/19. Mayor Weinberger noted there are multiple parties involved and there will be other agreements to be negotiated.

MOTION by Councilor Shannon, SECOND by Councilor Bushor, to find that discussion of negotiations and confidential information relative to restoration of passenger rail service to Burlington will put the city at a disadvantage. VOTING: unanimous; motion carried.

MOTION by Councilor Shannon, SECOND by Councilor Roof, based on the findings of premature public knowledge of negotiations placing the city at a disadvantage to go into Executive Session to discuss the restoration of passenger rail service to Burlington and to invite the Mayor, Mayor’s Office, CAO, City Attorney, DPW Director and Assistant Director, and Parks & Rec Director to attend. VOTING: unanimous; motion carried.

Executive Session was convened at 6:21 PM and adjourned at 7:16 PM. The City Council meeting resumed at 7:16 PM and was immediately recessed by Council President Wright to convene the City Council Mayor Presiding meeting. The City Council meeting resumed at 7:26 PM.

3.0 PRESENTATION: Restoration of Rail Service

3.01 Restoration of Passenger Rail Service to Downtown Burlington – DPW

Councilor Mason recused himself due to a professional conflict of interest. DPW Director Spencer and DPW Assistant Director Baldwin gave a presentation on rail on the waterfront and the goals of the city with regard to rail (Amtrak to Burlington at Union Station). VTrans and Vermont Rail Systems (VRS) have said there is need for a second track on the waterfront south of King Street and north of College Street. The greenway (bike path) will need to be relocated to the west side of the track and the sidewalk at College Street realigned. The city is seeking more information from VTrans on train overnight options and impacts. The city will provide input on the project. VTrans will make a presentation on the second rail to the TEUC on 11/19/19. VTrans hopes to start construction in the spring of 2020 on the second track and Amtrak accommodations.

COMMENTS

Ritchie Berger said there is history of VTrans having an ever-changing position on why the second rail is necessary. VTrans wants to provide for VRS and freight trains that will use the second rail as a second railyard in the heart of Burlington. Once the track is built it will be under federal pre-emption. VTrans Secretary Flynn said he will consider the position of City Council.

Carl Fowler said the study looked at locations in Burlington, but the right solution is to use the existing Amtrak facility in St. Alban. VRS needs to accommodate freight trains with the second rail because the railyard is full of tank cars. VRS makes money storing tank cars.

Melinda Moulton noted prior notice of the presentation was not received by stakeholders and pointed out the cost for VRS to overnight Amtrak in the railyard is $50 million. Air quality was measured at 50’, but the track will only be eight feet from the building where air quality standards for healthy air were exceeded. When Amtrak is not in Burlington the siding will be used to build freight trains on the waterfront.

Rick Moulton asked where the money for the second track is coming from because there is no money authorized in the TIGER grant. It does not cost $50 million for the train to go to St. Albans.

Charlie Messing said the green belt will be gone if the track is installed.

Councilor Bushor asked who was at the CCRPC meeting in 2016 and who was the representation for Burlington. Abutters and significant property owners should have been involved in the meetings, but Melinda Moulton was not notified. It seems the process started out flawed and did not follow the normal pattern. DPW Director Spencer said the project committee had representatives from Burlington, VTrans, Regional Planning, and consultants.

Councilor Pine asked the authority of the city in the decision. DPW Director Spencer said the project is led by VTrans. The city is managing the relocation of the bike path to the west side of the track south of King Street to College Street. VTrans will present to the TEUC and people can ask questions there. DPW is preparing a list of questions for VTrans. Councilor Pine asked if the city has any regulatory authority should VRS pursue the second track independently. City Attorney Blackwood advised discussing what the city can and cannot do in Executive Session, but there is federal pre-emption related to transportation uses of rail which may or may not be the final word depending on what is proposed. The City Attorney’s Office is looking at all the issues.

Councilor Tracy asked about the analysis of environmental impact on the area adjacent to the residences and businesses, and maintaining the right-of-way for public safety access. DPW Director Spencer said the city requested the study and the air quality impact analysis. The study was done by CCRPC for VTrans. The emergency access and agreements in place are being reviewed. City Attorney Blackwood advised discussing the agreements in Executive Session.

Councilor Hanson asked if there was any discussion of the option to go to St. Albans. DPW Director Spencer said DPW asked VTrans to look at this and detail the challenges at the presentation to the TEUC on 11/19/19.

Councilor Paulino said it is clear the process will be long and not clear. Hopefully there will be answers at the next meeting.

Councilor Roof asked if VRS can build trains on the track now. City Attorney Blackwood said there are a number of agreements on different sections of the rail. There may not be any restriction on building trains, only on storage. Councilor Roof asked what the role of City Council will be. City Attorney Blackwood said VTrans asked for the city’s perspective and point of view on where Amtrak should be overnighted. The Administration will bring recommendations to City Council for a vote.

Councilor Shannon asked who will pay for the second track. DPW Director Spencer said VTrans indicated the city is only responsible for the relocation of the bike path. Councilor Shannon asked if the second track will be built if other storage options are chosen. DPW Director Spencer said VRS does want to negotiate a train around an Amtrak train at Union Station. Councilor Shannon asked if the area will be fenced by the waterfront or some level of safety provided that is not there now. DPW Assistant Director Baldwin said the number of fence lines along the area will be expanded and gates that control the crossing locations installed. DPW Director Spencer said DPW will ask to see the preliminary plans. Fencing is a component of rail protection. Councilor Shannon commented none of the options for overnighting the train are ideal. More information is needed on the air quality study and proximity to inhabitants of the area, and if St. Albans is doable. DPW Director Spencer said the city will ask VTrans these questions.

Council President Wright said more information is needed on St. Albans and the railyard.

Councilor Dieng mentioned quality of life impacts and failure of trust. DPW Director Spencer said Regional Planning led the study at the request of the city for VTrans. More information on outreach to stakeholders can be requested. City Council was briefed previously on the project by DPW. Councilor Dieng asked if the biggest issue is the overnighting of the train. DPW Director Spencer said both the second track and overnighting are issues.

Councilor Paul pointed out the project has been ongoing since 2017 and asked when input from City Council is needed. DPW Director Spencer said VTrans is seeking to make a decision on the location of the track by the end of the year. An extension can be requested if necessary. Councilor Paul urged getting information to City Council as soon as possible so questions can be asked and answered.

Councilor Freeman said more information is needed on the environmental pollutants that can impact the area in Burlington or in St. Albans.

Mayor Weinberger said staff will continue to work on the city’s interests. Burlington is on the cusp of restoring daily passenger rail service from Burlington to NYC and the Amtrak network. Many have worked toward this goal for decades. The opportunity should not be missed. Having passenger rail service will help with air quality and carbon footprint, and improve the economy as well. The city will do due diligence to ensure no harm to the waterfront and seek the option that minimizes impacts.

4.0 PUBLIC FORUM

Public forum was opened at 7:26 PM.

COMMENTS

Ritchie Berger urged City Council to look at the documents in the notebook submitted by his office and seek more information on the justification for a second track and where Amtrak will overnight because the process has not been transparent.
Carl Fowler asked to postpone public comment until after the presentation and if this is not possible then Mr. Fowler said he will proceed under protest to say the second track, if built, will be used for passenger and freight trains with all the associated impacts (noise, crossings, safety of people on the waterfront). City Council is urged not to support the plan. Mr. Fowler expressed objection to the nature and placement of the hearing given information was not provided.
Laurie Allen stated the VTrans study is flawed. Residents in the Wing Building will be impacted by noise and air pollution. Servicing the train eight feet from the building will make the building uninhabitable. City Council is urged to use the money to upgrade the track to Essex.
Melinda Moulton recalled her work on the waterfront development over the last 30 years on projects to include everyone. Ms. Moulton said she supports rail, but not the second track.
Charles Sudbay spoke of the waterfront being threatened and the CCRPC report being “rigged” from the start in support of the track. Mr. Sudbay spoke against adding a second track.
Rick Moulton said Vermont Rail Systems has indicated the train can overnight any place north of Maple Street. A top priority in the State Rail Plan is upgrade of the seven miles of track to Essex, and this would allow the train to be serviced and overnight in St. Albans which could happen now under current track conditions, but travel speed would be only 25 mph. The Rail Council supported investigating the St. Albans option with NECR, and NECR indicated willingness to pursue the concept with the state so going north is not ‘pie in the sky’.
Staige Davis spoke of the waterfront being the most visited area by pedestrians in Burlington and the highest and best use not being a rail line. Another rail line will devalue properties and be like having a tractor trailer truck running all night pumping septic tanks. The second track is a bad idea for Burlington, tourism, and the aesthetics of downtown.
Lea Turhune spoke of addressing the harm from the mural now and that the task force was not diverse.
Ali House spoke of the mural promoting racism and white supremacy, and needs to be taken down.
Charlie Messing spoke against Amtrak in Burlington, the Champlain Parkway not being a large enough road to accommodate Higher Ground, and against the F-35 airplanes.
Jane Knodell urged City Council to take a long term view and do meaningful reinvestment back into BT with the BT sale proceeds, noting as the company grows if the city reinvests then the taxpayers will benefit.
Steve Goodkind spoke of use of the BT proceeds versus the BT sale proceeds, and misappropriation of $1.6 million from the $6 million in cash BT accumulated from rates, not from the sale.

There were no further comments from the public. Public Forum was closed at 8:03 PM.

5.0 CONSENT AGENDA

5.01 PROCEDURAL: Amend/Adopt Consent Agenda and Take Action(s) as Indicated

5.02 COMMUNICATION: Accountability List

5.03 COMMUNICATION: Rail Track, Melinda Moulton, 10/28/19

5.04 COMMUNICATION: Amtrak, Howard Dean

5.05 COMMUNICATION: ELAP, Lea Turhune, 10/28/19

5.06 COMMUNICATION: Amtrak, Brad Pettengill, 10/28/19

5.07 COMMUNICATION: Resignation, Inspector of Elections, Alex Rose

5.08 COMMUNICATION: VT Music Sector Asset Mapping Project Outreach

5.09 COMMUNICATION: Amendment #15, Clough Harbour Contract, Champlain Parkway

5.10 COMMUNICATION: Department of Corrections Grant Amendment “Safer Communities”

5.11 COMMUNICATION: Shelburne Street Roundabout Necessity and Compensation Hearings

5.12 COMMUNICATION: Renters Protections

5.13 COMMUNICATION: Contract Amendment, Breadloaf Corp., Leddy Facility

5.14 RESOLUTION: Refinance Parking Project Debt

5.15 RESOLUTION: General Obligation Public Improvement Refunding Bonds

5.16 RESOLUTION: BCA Response, ELAP Resolution

MOTION by Councilor Bushor, SECOND by Councilor Roof, to adopt the consent agenda, Items 5.01 – 5.16, and take the action indicated. VOTING: unanimous; motion carried.

6.0 DELIBERATIVE AGENDA

6.01 Green Mountain Transit Board Alternate (term expires 6/30/20)

MOTION by Councilor Hanson to nominate Marcie Gallagher.

There were no other nominations.

VOTING: unanimous; motion carried.

Marcie Gallagher is appointed as alternate on the GMT Board for a term that expires 6/30/20.

6.02 Presentation: BT Update from Todd Schurz and Mike Loucy

Councilor Mason left the meeting. CEO of Schurz Communications, Todd Schurz, and BT General Manager, Mike Loucy, gave an update on BT since the acquisition by Schurz Communications. General Manager Loucy reviewed the depth and expansion of the utility in the past year, noting Northgate was the last major development. The company offers 300-megabyte service and Smart Wi-Fi over 101 linear miles of fiber Customer and employee surveys are done each year for feedback on products and service. In the past year there has been a customer gain of 4% residential and 6% commercial for a total of 47% of the market. BT has high quality staff and according to the employee survey is a great place to work. The company does in-house promotions and offers cross-training and continuing education to employees. Employee parking, health benefits, 401K, and work bonuses are also provided. The company supports city events and provides other community support such as STEM and technical training. The venture capital board for the entrepreneur ecosystem has high caliber people and the Champlain Broadband board of managers has strong leadership. CEO Schurz stressed BT has been everything the company had hoped. More details will be provided in Executive Session.

City councilors asked about the following:

Plans and projections for growth of the company – CEO Schurz said many people throughout the state have reached out to the company. BT is committed first to finishing the buildout in Burlington.
City distribution if the city invests in BT – CEO Schurz said the most likely was to get a return on investment would be the annual dividend.
Decision at local board level versus the parent board level – CEO Schurz said the Schurz Communications board level makes capital allocations and budget approvals which come first through the local boards. The local boards have significant say and input.
Board members and connections to the board – CEO Schurz said all members of Schurz are on the board currently, but if the city invests one or two of those people will drop off.
Protecting the city’s investment if the city invests and growth does not occur – CEO Schurz said there is protection in the Asset Purchase Agreement.
Funding role of the local board – CEO Schurz said the local board is a separate local legal entity with some fiduciary responsibilities.
Completion of service to remaining 120 sites – General Manager Loucy said there are various reasons why the sites have not been accessed as yet, but BT will continue pursuing this. In 2018, BT built out an additional 800 residents in Burlington and another 500+ in 2019. By the end of 2019 there will be less than 1,000 people not reached.
Residents of the anticipated CityPlace development – CEO Schurz said when the CityPlace project comes to fruition BT would be delighted to be the service provider. General Manager Loucy said there have been conversations with the developer. Cambrian Rise is included in the numbers.
Challenges going forward – General Manager Loucy said getting staff to understand and support the goals of the company, and understanding the areas that cannot be accessed today to see if that has changed. The network is very robust. There are no technological challenges. CEO Schurz added staff has done a sterling job of staying focused on the customer. Technology is changing dramatically and how customers are using the technology is changing dramatically so keeping up is a challenge.
Competition for BT – General Manager Loucy said the value proposition is BT can deliver speed reliably, the company and employees are local can are responsive. CEO Schurz said the company is more expensive on video than Comcast because BT does not have the same buying and pricing power, but on internet service BT has a clear value proposition for the customer.
Continue Asset Agreement if city invests – CEO Schurz deferred renegotiating the asset agreement.
BT exceeding expectations – CEO Schurz said the net performance is at expectation, video is not doing as well as high speed data.
Trajectory in five or 10 years – CEO Schurz said expansion should be discussed in Executive Session. According to the results of the customer and employee surveys done each year by the company, BT did the best of all the Schurz companies. General Manager Loucy said a survey of non-subscribers is being done to see why they are not taking BT service, build a strategy to serve these homes and businesses, stay ahead of the curve, and understand customers better rather than make assumptions on price.
Involvement of Faisal Nisar – CEO Schurz said Faisal Nisar serves on the board and is an advisory to the company, but not an owner.
Handling customer calls – General Manager Loucy said cross-training of employees ensures there will be customer service representatives handling calls.
Lessons learned from Hiawatha – CEO Schurz said Hiawatha showed public/private partnerships may work for BT.
Role of BT Ignite – CEO Schurz said Adam Roof is on the investment board representing BT Ignite in an advisory capacity.

There was comment on the public being involved in the decision of use of the BT proceeds, and a request for more information on the fiduciary and advisory roles of the BT local board.

6.03 Possible Uses of BT Proceeds (Executive Session)

MOTION by Councilor Shannon, SECOND by Councilor Bushor, to find that premature disclosure of proprietary information from Schurz and potential negotiations would place Schurz and perhaps the city at a disadvantage. VOTING: unanimous [Councilor Mason not present for vote]; motion carried.

MOTION by Councilor Shannon, SECOND by Councilor Bushor, based on the findings to go into Executive Session to discuss proprietary information and negotiations, and invite the CAO, Mayor, Mayor’s Office, IT (Brian Lowe), outside counsel (Ralphine O’Rourke), BT management (Loucy, Martin, Callahan), and Schurz CEO (Todd Schurz) to attend.

DISCUSSION:

Councilor Hanson said Executive Session should be limited to discussion of reinvestment in BT. Other potential investment possibilities should be discussed in the public realm.

VOTING: unanimous [Councilor Mason not present for vote]; motion carried.

Executive Session was convened at 9:38 PM.

MOTION by Councilor Shannon, SECOND by Councilor Roof, to adjourn Executive Session and reconvene the regular meeting. VOTING: unanimous [Councilor Mason not present for vote]; motion carried.

Executive Session was adjourned and the regular meeting reconvened at 10:50 PM.

MOTION by Councilor Shannon, SECOND by Councilor Paulino, to suspend the rules to only finish the item under discussion. VOTING: unanimous [Councilor Mason not present for vote]; motion carried.

6.04 Renter Protection Recommendations – CEDO, Permitting & Inspections

Mayor Weinberger listed alternate uses of the one time BT funds:

BT liabilities to BERS
Set aside of $100,000 for removing BT equipment from Memorial Auditorium

There was agreement City Council will further discuss other options at a future meeting. Mayor Weinberger said a work session would be helpful. Any questions should be submitted to the Administration in advance.

7.0 COMMITTEE REPORTS

No report.

8.0 CITY COUNCIL – GENERAL AFFAIRS

No report.

9.0 CITY COUNCIL PRESIDENT – COUNCIL UPDATES

No report.

10.0 MAYOR – GENERAL AFFAIRS

No report.

11.0 ADJOURNMENT

MOTION by Councilor Shannon, SECOND by Councilor Roof, to adjourn the meeting. VOTING: unanimous [Councilor Mason not present for vote]; motion carried.

The meeting was adjourned at 10:59 PM.

RScty: MERiordan