Public hearing on Charlottesville enacting a $340 connection fee to natural gas

After a few meetings with relatively light agendas, Charlottesville City Council’s regular meeting for June 3, 2024 will begin at 6:30 p.m. with several recognitions. 

• There is a Mayoral recognition of H.E.R.S. Sports (learn more)
• June 7, 2024 is Gun Violence Awareness Day (learn more)
• June is Men’s Health Month (learn more)
• June is Pride Month (learn more)

One of the items on the consent agenda are the minutes of the May 16 to May 18 trip that three members of Charlottesville City Council took to Champaign-Urbana to learn from transit officials there about hydrogen powered buses. I’m maybe halfway through the story I’m writing but here’s a random quote that I may or may not use. 

“We have 118 buses, 18 or 19 of them are 60 foot articulated buses,” said Karl Gnadt managing director of the Champaign-Urbana Mass Transit District. “The rest are 40 foot standard buses. Twelve of our buses are hydrogen fuel cell and the remainder are diesel-electric hybrids.”

This is the kind of story that takes longer to crank out and takes a lot of time to write. I’m finding pockets to get it done but need at least two more days. 

Anyway, the rest of the consent agenda:

• There’s second reading of the action plan for Community Development Block Grants and HOME Investment Partnership Grants from the U.S. Department of Housing and Urban Development. (staff report)
• There’s first of two readings for a $130,713 payment to the The Local Energy Alliance Program to support their efforts to assist homeowners in making their structures more energy-efficient. (staff report)
• There first of two readings to appropriate $172,182 from the Virginia Department of Social Services to assist people with independent living services and adoption assistance. (staff report)
• Piedmont Housing Alliance is asking for a waiver from having to build a sidewalk on one side of a street in the redevelopment of the Monticello Area Community Action Agency (MACAA) property on Park Street. Their narrative explains their reasoning. This is likely one of the last times Council will have to weigh in on a waiver request, because the new Development Code took that task away from them. (staff report)
• There is the first of two readings to transfer $9 million to the city’s Retirement Fund related to the city’s recent decision to implement collective bargaining and adjust compensation for all employees. For FY25, the city’s payroll will exceed the three percent assumed by the city’s actuary and the city has to pay more into the fund. The city is making up the difference at one time rather than spread it out over years. The funding comes from the surplus in FY23. This reflects a decision already made by Council but worth pointing out. (learn more)
• There is the first of two readings to appropriate $45,567 from the Virginia Department of Social Services to assist the Department of Social Services continue the process of closing out cases of individuals who were temporarily eligible for additional benefits due to the pandemic. (learn more)
• The Tonsler League has requested $10,000 from the Vibrant Community Fund for its summer basketball league outside of the regular budget cycle. This is the first of two readings. (learn more)

There are several public hearings. 

The first and second relate to the city’s various gas, water, and sewer utilities. The city sets rates for its customers and there are proposed rate increases for all three this year. 

The city will also increase the monthly service charge for water and wastewater. 

The stormwater utility fee will remain unchanged at $1.20 per 500 square feet of impervious surface. 

The average residential customer will pay all four $7.94 a month. For those who don’t have natural gas, the average bill would increase $4.36 a month. Details are available in the utility report. 

Please remember every bill represents a different situation and averages are intended to portray a general trend. 

In addition to a rate increase for natural gas, the city is proposing a $340 connection fee for new gas service. To date, connections have been free for structures within 150 feet of a gas line. 

“The funds from this connection fee will finance an expanded energy efficiency program to promote energy savings and reduce greenhouse gas emissions,” reads the staff report. 

The next public hearing continues a recent trend of reprogramming previously reallocated Community Development Block Grant funds. In this case, the city would spend $46,000 on repairs to the playground at Johnson Elementary School. The source comes from closed programs that are only identified by number in the staff report. (learn more)

Then there is the first reading of a resolution for a $5,750,000 forgivable loan to the Piedmont Housing Alliance to pay for infrastructure at the second phase of Kindlewood. That’s the new name given to the redevelopment of Friendship Court. 

“Phase 2 of the project proposes the creation of 104 affordable for-rent and for-sale units, including the [one to one] replacement of 54 of the existing Project- based Section 8 rental affordable units,” reads the staff report.

A minimum of four homes is required to be for-sale units. 

In addition, the Charlottesville Economic Development Authority will consider a proposal to reimburse the Piedmont Housing Alliance for real estate taxes. Council has to approve this as well. (read that staff report)

In this staff report, I see something I don’t think I’ve seen before but I can’t confirm that so I will place it here. There are two key considerations mentioned by Brenda Kelley, the city’s redevelopment director. 

“In the event that the Project is foreclosed upon, the affordability restrictions will terminate,” reads the staff report. “At some point, in order to maintain affordability, the City may have the opportunity to control affordable units in the Project. However, if the City were to take advantage of this opportunity, there will be a cost to the City associated with this.”

The meeting closes out with approval of three telecommunications franchises. Consult the agenda if you want to learn more. (view the agenda)

Before you go: The time to write and research of this article is covered by paid subscribers to Charlottesville Community Engagement. In fact, this particular installment is from the June 3, 2024 Week Ahead edition of the newsletter.