Regular Meeting

# CITY OF DEMO ## REGULAR CITY COUNCIL MEETING MINUTES ### February 19, 2026 --- ## CALL TO ORDER Mayor Esther Mannheimer called the meeting to order at approximately 9:00 a.m. and welcomed all participants to the February 19, 2026 agenda briefing work session. Mayor Mannheimer noted that all Council members and staff were participating virtually. The meeting was streamed live on the City's YouTube channel and available via telephone at 855-925-2801, meeting code 9633. ## ROLL CALL City Clerk Maggie Burleson conducted roll call. The following members were present: **PRESENT:** - Mayor Esther Mannheimer - Vice Mayor Antanette Mosley - Council Member Bo Hess - Council Member Kim Rooney - Council Member Sage Turner - Council Member Maggie Ullman - Council Member Sheneika Smith **STAFF PRESENT:** - City Manager Debra Campbell - Assistant City Manager Myoka - Assistant City Manager Ben Woody - Assistant City Manager Jay Dundas - City Attorney Brad Branham - City Clerk Maggie Burleson - Finance Director Tony McDowell - Public Works Representative Amy Dillon - Community and Regional Entertainment Facilities Director Chris Coral ## PLEDGE OF ALLEGIANCE The Pledge of Allegiance was not conducted during this work session. ## APPROVAL OF MINUTES Minutes from the February 5, 2026 meeting were not addressed during this work session. --- ## CEREMONIAL ITEMS ### Item 26-121: Presentation — Annual Crime Statistics Report This item was scheduled for the February 24, 2026 regular meeting. ### Item 26-120: Proclamation Recognizing Black History Month This proclamation was scheduled for presentation at the February 24, 2026 regular meeting. ### Item 26-122: Recognition of Volunteer Fire Department Service Awards This recognition was scheduled for the February 24, 2026 regular meeting. --- ## REPORTS ### Mayor's Announcement — Costco Development Withdrawal Mayor Mannheimer announced that Costco had withdrawn its application to build a facility in West Asheville due to significant Department of Transportation requirements for Smoky Park Highway improvements. Mayor Mannheimer reported that she had contacted the Department of Transportation board chair prior to the meeting to explore potential solutions. She commended the City's planning department for their creativity in working with Costco on internal project aspects. ### City Manager's Report City Manager Debra Campbell provided an overview of the meeting format, noting that the agenda briefing would review items for the February 24, 2026 Council meeting, including a 3:00 p.m. Policy, Finance, and Infrastructure work session. She indicated that a closed session would follow the briefing. --- ## PUBLIC COMMENT No public comment was taken during this work session, consistent with the meeting format. --- ## CONSENT CALENDAR Assistant City Manager Jay Dundas reviewed the consent calendar items scheduled for the February 24, 2026 meeting: ### Items 26-80 through 26-110: Consent Calendar Items The following items were discussed for inclusion on the consent calendar: **Item 26-80:** Agreement with XYZ Corp for water system improvements in the amount of $450,000 was scheduled for approval. **Item 26-81:** Grant acceptance from the State Office of Emergency Services in the amount of $125,000 for emergency preparedness equipment was scheduled for approval. **Item 26-82:** Fee waiver for Community Youth Basketball Tournament facility rental and permit fees was scheduled for approval. **Item 26-83:** Professional services agreement with ABC Engineering for sewer rehabilitation design and engineering services was scheduled for approval. **Item 26-84:** Budget transfer of $320,000 for replacement of six police patrol vehicles was scheduled for approval. **Item 26-85:** Acceptance of completed work for Downtown Streetscape Phase 2 project and authorization to release retention was scheduled for approval. **Item 26-86:** Appointment of three members to the Parks and Recreation Commission for four-year terms was scheduled for confirmation. **Item 26-87:** Minutes of the Special Meeting held January 29, 2026 were scheduled for approval. **Item 26-88:** Five-year contract renewal with Valley Waste Management for solid waste collection and disposal services was scheduled for approval. **Item 26-89:** Comprehensive Annual Financial Report for Fiscal Year 2025 as prepared by the independent auditor was scheduled for acceptance. **Item 26-90:** Memorandum of Understanding with Demo County Sheriff for mutual aid and joint operations was scheduled for approval. **Item 26-91:** Purchase authorization for network switches, servers, and cybersecurity equipment for IT infrastructure upgrade was scheduled for approval. **Item 26-92:** License agreement with Verizon Wireless for cell tower installation and operation on city-owned property at 450 Academy Avenue was scheduled for approval. **Item 26-93:** Resolution establishing utility rate adjustments for Fiscal Year 2026 was scheduled for adoption. **Item 26-94:** Donation acceptance of playground equipment valued at $35,000 from the Demo City Lions Club for installation at Rotary Park was scheduled for approval. **Item 26-95:** Task order approval with Environmental Solutions Inc. for Phase I and Phase II environmental site assessments was scheduled for approval. **Item 26-96:** Ratification of emergency repair of water main break on Jensen Avenue performed on January 15, 2026 was scheduled for approval. **Item 26-97:** Amendment No. 2 to Professional Services Agreement with Richards Watson & Gershon for specialized legal counsel was scheduled for approval. **Item 26-98:** Acceptance of infrastructure improvements for Bethel Avenue Extension project and authorization of maintenance acceptance was scheduled for approval. **Item 26-99:** Three-year lease agreement for community center space at 720 Seventh Street was scheduled for approval. **Item 26-100:** Resolution supporting AB 1234 housing legislation to increase housing production and streamline development approvals in California was scheduled for adoption. **Item 26-101:** Authorization for submission of Community Development Block Grant application for $500,000 for neighborhood infrastructure improvements was scheduled for approval. **Item 26-102:** Bid award for Pavement Rehabilitation Project to Valley Paving Inc. as the lowest responsive and responsible bidder was scheduled for approval. **Item 26-103:** Cooperative agreement with Caltrans for traffic signal improvements at the intersection of Academy Avenue and Jensen Avenue was scheduled for approval. **Item 26-104:** Quarterly Investment Report for the period ending December 31, 2025 was scheduled for acceptance. **Item 26-105:** Amendment to Employee Benefit Plan to add vision coverage and update dental plan provisions was scheduled for approval. **Item 26-106:** Authorization for auction of surplus city vehicles and equipment through GovDeals online auction platform was scheduled for approval. **Item 26-107:** Interagency agreement with Demo Unified School District for shared use of recreational facilities and joint programming was scheduled for approval. **Item 26-108:** Resolution declaring the City's intent to issue revenue bonds for water system capital improvements was scheduled for adoption. **Item 26-109:** Two-year contract with West Coast Arborists for annual tree trimming services throughout the city was scheduled for approval. **Item 26-110:** Quarterly status report on the Capital Improvement Program for the period ending December 31, 2025 was scheduled for acceptance. ### Discussion Items from Consent Calendar **Water Department Lead and Copper Rule Compliance (Item F):** Assistant City Manager Dundas noted that the Water Department would conduct investigative work through Ghent to perform potholing to uncover water services for analysis in compliance with EPA lead and copper rules. **C-PACE Program Support (Item G):** Staff highlighted support for Buncombe County's participation in the Commercial Property Assessed Capital Expenditures program, which provides funding for commercial facilities to make sustainability-focused investments. **Firefighter Safety Equipment Grants (Items H and I):** Two grant items were noted: a FEMA grant for wildland personal protective equipment and a donation for fire programs to be spent on personnel and firefighter initiatives. **BUILD Grant Application (Item K):** Staff explained that following the unsuccessful NOFA grant application for a Hilliard Avenue corridor study, the City would pursue a BUILD grant from FHWA. Hilliard Avenue was identified as high priority on the sidewalk gap list. The BUILD grant would require a match similar to the previous NOFA application. **Edwin Place/Cecilia Place Drainage Improvements (Item O):** Assistant City Manager Dundas introduced a contract amendment for drainage improvements in North Asheville affecting Edwin Place, Cecilia Place, and Canterbury Drive. Public Works Representative Amy Dillon explained that the project had been delayed due to complications and cost increases. She reported that two easements remained to be obtained, regulatory permitting was required, and design was 90% complete. The estimated timeline was approximately one year, with permitting being the largest variable. Ms. Dillon noted that the project was on the list for HMGP funding, which could delay the project by up to two years if awarded, though the City had stormwater funds available to proceed regardless. Mayor Mannheimer inquired about barricades currently blocking the sidewalk on Edwin Place. Ms. Dillon explained that an active sinkhole existed due to erosion underneath a rock arch cover, and barricades were placed out of an abundance of caution. She stated that staff would assess temporary repair options and would not wait the full two-year period to address pedestrian access concerns. Council Member Hess requested that temporary repairs be prioritized to improve accessibility for pedestrians using wheelchairs, walkers, or canes. **DOORS Ordinance Item (Item P):** Assistant City Manager Dundas noted that this item related to the DOORS ordinance and would be discussed further in closed session. --- ## PRESENTATIONS AND REPORTS The following presentations were scheduled for the February 24, 2026 meeting: - Second Quarter Financial Report (Finance Department) - Capital Projects Quarterly Report (Walter Eger) --- ## SCHEDULED HEARINGS ### Item 26-111: BRT Station Area Specific Plan — Southeast Growth Area along Kings Canyon Road This public hearing was scheduled for the February 24, 2026 meeting. ### Consolidated Plan Amendment Public Hearing A public hearing for the proposed 2025-2029 Consolidated Plan Amendment to add affordable rental construction as a priority need and goal was scheduled for the February 24, 2026 meeting. --- ## GENERAL ADMINISTRATION ### Item 26-112: Homeless Services Strategic Plan Update This item was scheduled for the February 24, 2026 meeting with recommended action to approve the updated plan and authorize the City Manager to execute related agreements. ### Item 26-113: Fee Schedule Amendment for Development Services An amended Fee Schedule for Development Services, effective April 1, 2026, was scheduled for adoption on February 24, 2026. ### Item 26-114: Consider Establishment of Community Benefit District — Downtown This item was scheduled for the February 24, 2026 meeting with recommended action to direct staff to initiate the petition process for establishment of the Downtown Community Benefit District. ### Item 26-115: Annual Report on Measure P Expenditures The Annual Report on Measure P Expenditures for Fiscal Year 2025 was scheduled for acceptance on February 24, 2026. ### Off-Cycle Fee Increase — Aston Park Tennis Center Assistant City Manager Dundas explained that an off-cycle fees and charges increase for Aston Park Tennis Center was necessary due to the timing of the upcoming season. This item required action in advance of the regular fees and charges review scheduled for later adoption. Community and Regional Entertainment Facilities Director Chris Coral was available for questions. ### Budget Public Comment Assistant City Manager Dundas noted that public comment on the budget was scheduled as a routine part of the budget process. ### Boards and Commissions Appointments Multiple board and commission appointments were scheduled for the February 24, 2026 meeting. Council had previously discussed these appointments at the Policy, Finance, and Infrastructure meeting. --- ## POLICY, FINANCE, AND INFRASTRUCTURE WORK SESSION PREVIEW Assistant City Manager Dundas reviewed the agenda for the February 24, 2026 Policy, Finance, and Infrastructure work session scheduled for 3:00 p.m.: ### CDBG-DR Infrastructure Implementation Presentation Bridget Herring was scheduled to present on Community Development Block Grant Disaster Recovery infrastructure implementation. The Infrastructure Recovery Board had received a version of this presentation previously. The presentation would introduce projects proposed for advancement using CDBG-DR infrastructure funding. ### Single Audit Presentation Cherry Bekaert audit firm and Finance Director Tony McDowell were scheduled to co-present follow-up information on the single audit. ### Budget Update The Finance team was scheduled to provide an update on progress made over the previous month related to the City Manager's proposed budget and any additional information received during that timeframe. Council Member Hess requested that the budget update include information on city-owned property sales, including the "pit of despair," status of engaging a commercial realtor, and potential property sales to generate revenue. Assistant City Manager Dundas confirmed that Finance would address this request in the presentation. ### Parkside Land Hold — Arts and Entertainment Facility Community and Regional Entertainment Facilities Director Chris Coral was scheduled to present on a proposed arts and entertainment facility on the Parkside parking lot (city-owned property on Marjorie Street near City Hall). The presentation would explain the private partner relationship being developed to advance the project. Council Member Hess inquired about community engagement plans, particularly for the Eagle Street area and the Block neighborhood, expressing concern that the proposal felt sudden to residents. Director Coral responded that the main community and public engagement process was scheduled to begin in May, with a six-to-nine-month timeline, potentially extending to June. He explained that current activities involved one-on-one conversations with key stakeholders and community leaders. He noted that broader community engagement was premature until the project's feasibility was better understood. Director Coral clarified that the land hold would be requested before extensive community engagement to facilitate the EDA grant process and work with ATG, the private partner. He explained that the land hold was largely symbolic with no binding commitment, and that future Council action would be required before any contracts were signed or development occurred. He noted similar land holds had been approved in 2008 and 2013, both of which expired without development. Director Coral provided context on the site selection process, explaining that a working group had identified four potential downtown sites that could accommodate the proposed arts and entertainment facility. Through a process of elimination, the Parkside location emerged as the remaining viable site that would not require purchasing land from a private landowner. He emphasized that if community engagement revealed opposition to this location, the project could be reconsidered. Council Member Rooney raised concerns about whether the Block neighborhood had been asked if this development was desired and how it aligned with the Boots in the Block initiative. She emphasized the importance of asking communities first rather than conducting extensive engagement after decisions had been made. Mayor Mannheimer noted that some conversations had occurred with Eastern Valley Street neighborhood residents, which includes the Block area. Director Coral confirmed that preliminary conversations had occurred within the previous month, before the item appeared on the eight-week agenda. He noted that media speculation about the site had occurred over the previous two years, though the City had not confirmed the location while working through site evaluation. ### Board Vacancies The agenda included a link to view all vacant board positions and interested candidates. Appointments were scheduled for formal vote at the regular Council meeting. --- ## EIGHT-WEEK LOOK AHEAD Assistant City Manager Dundas reviewed upcoming agenda items: ### March 10, 2026 Meeting - Budget work session - Rescission of loan to Stewart Street Cottages - Consolidated Plan Amendment adoption - Arts and entertainment facility land hold (subsequently moved to March 24, 2026) ### March 24, 2026 Meeting - Budget work session - Fees and Charges Manual adoption (regular cycle) - Arts and entertainment facility land hold (moved from March 10, 2026) ### Future Budget Work Sessions - April 14, 2026 - May 12, 2026 - May 26, 2026 ### Budget Adoption - June 9, 2026 ### Budget Process Discussion Council Member Rooney inquired about when the first draft budget would be publicly available, noting community concerns about the $30 million gap between revenues and expenses. Finance Director Tony McDowell responded that key decisions would be presented during work sessions regarding spending increases and decreases, revenue changes, and tax rates. He explained that the formal draft budget would be the City Manager's proposed budget presented in May, though significant input would be gathered before that time. Assistant City Manager Dundas added that updates on the projected budget imbalance would be provided throughout the process, allowing Council to track improvements before the recommended budget presentation. Council Member Hess asked whether a budget retreat was planned, noting that one had occurred by this time in the previous year. Finance Director McDowell responded that no traditional budget retreat would be held at the start of the process due to the large budget gap. Instead, educational and level-setting conversations would occur during Policy, Finance, and Infrastructure meetings. He confirmed that Council would be asked about budget objectives and priorities during PFI presentations to ensure alignment with Council goals. --- ## CLOSED SESSION At approximately 1:00 p.m., Council prepared to enter closed session. City Attorney Brad Branham was designated to facilitate the closed session. **MOTION:** Council Member Hess moved that the Asheville City Council go into closed session for the following reasons: 1. To prevent disclosure of information that is privileged and confidential pursuant to the laws of North Carolina or not considered a public record within the meaning of Chapter 132 of the General Statutes, with statutory authorization contained in North Carolina General Statute 143-318.11(a)(1), and the law that makes the information privileged and confidential being North Carolina General Statutes 143-318.10(e). 2. To consult with an attorney employed or retained by the City about matters with respect to which the attorney-client privilege between the City and its attorney must be preserved, including but not limited to the handling or settlement of a claim regarding Smith v. City of Asheville, Case Number 1COL22CV0022, with statutory authorization contained in North Carolina General Statutes 143-318.11(a)(3). **SECOND:** Council Member Ullman seconded the motion. **VOTE:** The motion passed by roll call vote: - Vice Mayor Mosley: Aye - Council Member Hess: Aye - Council Member Rooney: Aye - Council Member Ullman: Aye - Council Member Turner: Aye - Council Member Smith: Aye The vote was 6-0 in favor. --- ## ADJOURNMENT The open session adjourned at approximately 1:00 p.m. to enter closed session. --- **Respectfully submitted,** Maggie Burleson, City Clerk **Approved:** ___________________________ --- *These minutes represent a summary of the agenda briefing work session. The complete meeting video is available on the City's website.*