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Council Manager Memo #59 - September 5, 2008

Calendar Details
Monday, September 8
       3:30 pm -
Governmental Affairs Committee, Room 280.  AGENDA: "Hot Water Capture, Cold Water Allocation"; Federal Legislative Strategy Presentation
       5:00 pm - Dinner Briefing, Room 267|
       7:00 pm - Business Meeting, Chamber

Wednesday, September 10
     12:00 pm -
Housing and Neighborhood Development, Room CH-14AGENDA: Community Development Corporations: 1) Compliance Reports, 2) Local Initiatives Support Corporation Update; Initial Foreclosure Strategy Update; FY2008 Compliance Monitoring Report; FY2009 Committee Workplan; Follow up reports: FY07 & FY08 Housing expenditures; Gentrification Status Report


 

Agenda Notes:
Agenda Item #16 – Resolution of Intent of Abandon Two Alleyways off of East Eighth Street
Resource:
       Tom Flynn, 704-432-1396 or
tflynn@ci.charlotte.nc.us

This item is being pulled so that staff can better understand the relationship of this petition to the First Ward Park/ Parking Deck project. The Council approved a framework for this project in June 2008. Staff expects to bring the concept for the park and East Eighth Street back to Council for review and approval in November.

Agenda Item #29K -- South Boulevard Left Turn Lane, Krodel Condemnation
Resource:
       Michael Knox, 704-336-3479 or mknox@ci.charlotte.nc.us

Item 29-K is being pulled for revision and further negotiation and will be brought back to Council at a future date.

 

Information Items:
Doral and Cavalier Apartments Update – Tropical Storm Fay Evacuation
Resource:
       Jennifer Krupowicz, 704-432-0970 or
jkrupowicz@ci.charlotte.nc.us

At Monday's dinner meeting, Chief Jon Hannan will provide Council with an information update on the public safety response to the recent flooding of the Doral and Cavalier Apartments. Additional information about the Doral and Cavalier properties and the status of County's Floodplain Buyout Program is provided below.

Three devastating floods in nine years caused millions of dollars in damage to the Doral and Cavalier Apartments and the belongings of those living there. Previous engineering studies confirmed there is no way to prevent Briar Creek from repeatedly going over its banks and flooding the apartments.

Owners of the Doral and Cavalier Apartments had been approached to participate in Charlotte-Mecklenburg Storm Water Services' Floodplain Buyout Program, which is managed by Mecklenburg County. The owners of the Doral Apartments chose to decline assistance from the Program. The owners of the Cavalier Apartments volunteered for the Buyout Program because future flood damages were estimated at four times the cost of buying them out.

The buyout of the 192 Cavalier apartments is the largest single purchase in the history of Floodplain Buyout Program. The owners' decision to sell was voluntary. The land and buildings were purchased on June 24, 2008 with funds from Charlotte-Mecklenburg Storm Water Services (Mecklenburg County) ($4.2 mil) and a FEMA Pre-disaster Mitigation Grant ($5.4 mil) for a total cost of $9.6 million (including demolition and relocation). Resident relocation had begun but had not been completed before Tropical Storm Fay arrived.

Tropical Storm Fay
       Cavalier
– In anticipation of heavy rainfall, the County posted flood warning notices on residents' doors on Tuesday August 26, 2008. By early morning Wednesday, an evacuation of the 136 occupied units was necessary. All 13 buildings flooded with depths ranging from 18" to 50" in the lower units. After the evacuation, the property was secured by CMPD. The apartment complex offices were open on Friday, August 29 and through the Labor Day weekend staffed by a Consultant team and Storm Water Services staff. Immediate financial assistance has been provided through moving payments, pro-rated rent, and security deposits to 110 tenants so far. These payments ranged from $900 to $1,200 each and would have been due to the tenants as part of the relocation benefits associated with the floodplain buyout. The amount of the relocation payment to each Cavalier resident was not affected by the flooding, but the timing of the payments to residents was expedited because of flood damage. Residents receiving a payment agreed to gather their remaining belongings within 7 days.

       Doral – The Doral Apartments are under private ownership. During this event 75% of the Doral property experienced flooding. Flood depths during last week's storm event ranged from 18" to 58" in 15 of the 20 Doral property buildings causing evacuations from that property as well. Damage at the Doral is still being assessed.

Current Apartment Conditions:
More than 80% of the Cavalier complex is vacant or will be within 7 days. All lower units of the complex are uninhabitable. Some of the upper units have power, but no air conditioning. Because of long-term health concerns and safety concerns, all residents need to vacate within 3 weeks. Assistance has been available to evacuees through the American Red Cross and the Crisis Assistance Ministry.

Mecklenburg County Storm Water Services staff is currently working with the property owners to evaluate the damage to the Doral Apartments. Staff will determine if the damage will be considered as "Substantial" and prevent the owners from making repairs according to the Floodplain Ordinance. In the interim, staff is allowing permits to be issued so non-flooded units (primarily upper) can regain power and be reoccupied.

Flood Insurance:
The previous owners of Cavalier had paid annual flood insurance premiums for residents of the 192 units who requested coverage. Mecklenburg County agreed to continue to offer to pay flood insurance premiums for residents of the complex who signed paperwork requesting flood insurance coverage. Units have $10,000 in content coverage with a $1,000 deductible. At least 10 and as many as 30 Cavalier families who sustained flood damage contend their insurance policies were not in effect at the time of last week's flooding.

County Storm Water Services is reviewing each resident's paperwork with the County's contracted consultant, insurance agent, insurance company, the Federal Emergency Management Agency and the National Flood Insurance Program to determine which agency will honor the insurance claims.

Doral Apartments Re-Zoning Petition:
Rezoning petition #2008-92 was submitted by the property owner, Doral II Limited Partnership. They are requesting rezoning from R22-MF, multi-family residential to MUDD-O, mixed use development district, optional for a mixed-use development of up to 26,682 square feet of commercial uses (of which 13,341 may be restaurants), 350 residential "flats", and 96 townhomes on 18.8 acres on the north side of Monroe Road, between Bramlet Road and Colonnade Drive.   The petitioner is asking for a deferral of the public hearing until October 20, 2008.


Vote on the Merger of Mayor's International Cabinet and Charlotte Sister Cities
Resource:
       Dennis Marstall, 704-336-3980 or
dmarstall@ci.charlotte.nc.us

At the August 25 Dinner meeting, Alan Gordon, Chair, Mayor's International Cabinet, and Terri DeBoo, Charlotte Sister Cities, indicated in their presentation to City Council that you would be asked to approve the merger of the two organizations and create a new Charlotte International Cabinet at the September 8, 2008 City Council meeting. That item has been moved to the September 22, 2008 Council meeting, at the two Chairs' request, so they can complete the Implementation Plan document for City Council's review before you vote on the action item.


Taxicab Rate Increase
Resource:
       Burhan Al-Shaikh, 704-398-6793 or
bal-shaikh@cmpd.org

On September 2, 2008, the Passenger Vehicle for Hire Board approved a mid-year change to the rate schedule for taxis operating in Charlotte. The taxi industry had requested rate changes due to the increase in gas prices over the last year.

The following rate increases are effective November 1, 2008:

Initial Charge
   New: $2.50
   Current: $2.00

Charge per 1/5 mile
   New: $.50
   Currant: $.40

Airport to 277 Loop
   New: $25.00
   Current: $20.00

Minimum Charge from Airport
   New: $14.00*
   Current: $12.00**

* The new airport charge is for any trip from the airport
** Previous charge was a $12 minimum for any trip within a 3 mile radius of the airport

The current $1.00 fuel surcharge will no longer be a part of the rate structure. Drivers had noted that customers complained about paying a fuel surcharge; the rate increase will compensate for the loss of the surcharge.

The Passenger Vehicle for Hire Board held a public hearing on the rate increase on August 5. All of the speakers recommended the rate increase. The Board convened a Rates Committee to review the input and make recommendations to the full board on possible changes to the rate schedule. The Passenger Vehicle for Hire Board also conducted surveys of taxi rates at both the state and national level prior to approving the new rate structure.

Any appeals of the new rate schedule would be directed to Council. The Passenger Vehicle for Hire Board is unaware of any potential appeals.


Certificate of Achievement for Excellence in Financial Reporting
Resource:
       Teresa Smith, 704-336-7906 or
tsmith@ci.charlotte.nc.us

The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the City of Charlotte by the Government Finance Officers Association of the United States and Canada for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2007. This was the twenty-third consecutive year that the City has achieved this prestigious award.

The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The CAFR has been judged by an impartial panel to meet the high standards of the program including demonstrating a constructive "spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the CAFR. Finance is currently preparing the CAFR for fiscal year 2008 and it will be presented to Council once it has been completed including the review by the external auditors.

Transit Bus Order
Resource:
       John Trunk, 704-432-2560 or
jtrunk@ci.charlotte.nc.us

CATS is in the process of finalizing its FY09 order for replacement and expansion buses. With approved funding in the budget in the amount of $9,544,768, plans call for purchasing up to an additional 22 buses in accordance with the CATS Fleet Management Plan.

On August 27, 2007, Council approved contracts with the Gillig Corporation of Hayward, CA and with DesignLine International of Charlotte to provide up to 220 buses to CATS over the next five years. The combined potential value of the two contracts is estimated to be $85 million. The normal practice has been to place the annual bus order in August for delivery within 12 months. At the August 2007 meeting, Council requested that CATS postpone placing any orders until after the result of the sales tax referendum was known.

After the referendum result, in January 2008 Council approved the delayed FY08 purchase of buses in an amount not to exceed $9,274,000. Orders were then placed with Gillig for 16 diesel and 5 hybrid buses. Delivery of these buses is expected in January 2009.


Metropolitan Transit Commission August Meeting Summary
Resource:
       Keith Parker, 704-336-3855 or
kparker@ci.charlotte.nc.us

On Wednesday, August 27, 2008, the MTC had no action items on the agenda, but received information briefings on the following:

Revision of the Fare Policy: Staff presented the MTC with an update to the CATS' Fare Policy. The Fare Policy, originally adopted in September 2001, was last updated in 2006. Under the revised Fare Policy, the following changes are being considered:

  • Staff will set special event fares on a case-by-case basis
  • Staff will have the discretion to temporarily suspend fares in response to operating needs, emergencies or safety concerns
  • Language will be updated to reflect the operation of the LYNX Blue Line
  • Commuter rail/bus rapid transit fares will be established prior to initiation of service
  • Include guidelines that were in effect before the start of CATS:
    • Children five years and younger or under 46 inches tall ride for free
    • Documented use of STS passes on service of equal or lower price
  • Include a section to capture the discount policy enacted by the Charlotte City Council in 1997.

The Revised Fare Policy will be considered for action at the September MTC meeting.

West Corridor Enhanced Bus Project: As part of the 2030 Corridor System Plan adopted by the MTC in November 2006, streetcar was named the Locally Preferred Alternative (LPA) in the West Corridor, with full implementation in 2034. As a near term improvement, CATS developed an enhanced bus option along three parts of the corridor: West Morehead Street/Wilkinson Boulevard, Freedom Drive and West Boulevard.

Enhanced bus service differs from CATS' local and express services because it will have:

  • A higher level of service operating seven days a week with weekday frequency of at least 20 minutes
  • A brand that will clearly identify the Enhanced Bus Program
  • Bus stop locations that will provide a higher level of amenities than at a standard CATS' bus stop, such as a new shelter design, public art, lighting, digital schedule information, as well as weaving a branded identity into the signage and shelter design
  • A dedicated hybrid bus fleet with a painting scheme consistent with the new brand

Staff plans to implement enhanced bus on West Morehead/Wilkinson Boulevard by June 2009, followed by Freedom Drive and West Boulevard by 2014.

Exterior Vehicle Revenue Opportunities: Staff presented the MTC with information regarding exterior advertisement on CATS' vehicles. In 2000, the MTC voted to eliminate exterior advertisements on CATS' vehicles. Exterior advertisements were in existence since the 1980s and in 1986 generated $80,000 in revenue. The last full year that exterior advertisements were allowed, CATS received $152,000. Staff reviewed the exterior advertising programs of transit systems of similar size including ad rates, maintenance issues, etc.

In 2006, the MTC updated the Advertising Policy to allow advertising at future rapid transit stations. Staff worked with the City of Charlotte's Planning staff to develop an ordinance to provide for kiosks at the LYNX stations. During the construction of the LYNX line, provisions were provided for the future installation of kiosks. Staff is currently conducting a RFP for station kiosks and will provide an update of that project at a later date.

Initial estimates indicate that exterior advertisement could generate between $700,000 and $1.4 million annually in revenue (approximately 1 percent of CATS' operating budget). After hearing concerns from legal staff regarding limitations in their ability to control the taste of ads, the MTC directed staff to explore other sponsorships of CATS' services, like the Gold Rush. Staff will present their findings during the budget process.

CEO Report:
1. Ridership:
Ridership for the month of July 2008 increased 40.7 percent across all services compared to July 2007. Regular bus services had a ridership increase of 14 percent, with 6.3 percent of the increase coming from new services associated with the LYNX. Regional Express services and Community Circulators ridership increased considerably at 45.2 percent and 32.3 percent, respectively. Vanpool also experienced a double-digit ridership increase for the month at 14.2 percent. Human Services Transportation increased as well, up 9.5 percent over July 2007. The LYNX Blue Line served over 430,000 trips in July; averaging over 16,900 trips per weekday. Activity Center Circulators was the only service category with a ridership decrease for the month.

2. Bank of America CTC Branch Relocation: The Bank of America branch located inside the Charlotte Transportation Center will relocate to the EpiCenter, which is located next to the Transit Center. Bank of America will continue to pay their lease until it expires in 2010.

3. Pre-FY10-11 Budget Meetings: Staff will hold 10-20 pre-budget meetings between September and October with the public to get input on the growth of the transit system. Staff will also get input for employees, citizen adversary committees, MTC and City Council.

4. Awards: CATS' Marketing and Communications division recently received three AdWheel Awards from the American Public Transportation Association for excellence in marketing the LYNX Blue Line. This is the sixth award CATS has received for Marketing in the past six months.

5. Parking at I-485: Staff continues to work to handle increasing parking demand at the I-485 parking deck. Staff is in the process of getting a permit to pave a parcel of land next to the parking deck. The parcel can hold 85 parking spaces. CATS is also negotiating with nearby businesses to utilize some of their parking.