City CouncilNeal Osborne, Mayor

Bill Hartley, Vice MayorAnthony Farnum, Council Member

Kevin Mumpower, Council MemberKevin Wingard, Council Member

CITY COUNCIL

300 Lee Street, Bristol, Virginia 24201May 26, 2020

6:00 PM

Call to Order Moment of Silence Pledge of Allegiance A. Mayor's Minute and Council Comments B. City Manager's Comments C. Matters to be Presented by Members of the Public- Non-Agenda Items. D. Adoption of agenda. REGULAR AGENDA 1 Public hearing on the City Manager's FY21 Recommended Budget. 2 Resolution confirming preferred casino operator. 3 Amendment to Emergency Ordinance 20-1. 4 Update on Bristol Complete Count Committee. E. Adjournment

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CITY COUNCIL

AGENDA ITEM SUMMARY Meeting Date: May 26, 2020 Department: City Clerk Staff Contact: Nicole Storm,

AGENDA ITEM WORDING:Public hearing on the City Manager's FY21 Recommended Budget.

ITEM BACKGROUND:The City Manager's Recommended Budget was presented on May 12, 2020. The public hearing is anopportunity for citizens to provide input on the budget proposal. Citizens are encouraged to providepublic comment in writing (nicole.storm@bristolva.org) or by telephone (276) 645-7333 in advance ofthe meeting. All public comments made must be no more than three minutes long, and citizens mustprovide their name and address.

PREVIOUS RELEVANT ACTION:Public hearing was advertised in the May 18, 2020 Bristol Herald Courier.

STAFF RECOMMENDATION: DOCUMENTATION: OrderConf (004).pdf Budget Presentation FY21_FINAL.pdf

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Order ConfirmationOrder# 0001093170

Phone:

Client:

2766457329

CITY OF BRISTOL VA

Phone:

Payor :

2766457329

CITY OF BRISTOL VA

BRISTOL VA 24201BRISTOL VA 24201

300 LEE ST CITY HALL 300 LEE ST CITY HALLAddress:Address:

21585632158563Account: Account:

Sales Rep

aperrone_tri

Accnt Rep

bhampton

Ordered By

Nicole Storm

Fax:

EMail: donq@bristolva.org

Tax Amount:

Payment Meth:

$850.60

$0.00

$850.60

Total Amount

Payment Amount

Amount Due PO Number:

1

Affidavits

0

Proofs

0

Tear Sheets

Invoice - Statement

0.00Budget Appropriation Ordinance Public Notice

0001093170-01

Ad NumberCLS Legal LinerAd Type

$0.00Color

2 X 84 liAd Size

Pick Up Number

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Production Method Production Notes

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PositionPlacement # InsertsProduct and Zone

Run Schedule Invoice Text: NOTICE CITY OF BRISTOL, VIRGINIA PUBLIC HEARING

5/17/2020Run Dates

Legal NoticesC-Legal Ads 10TRI heraldcourier.com

PositionPlacement # InsertsProduct and Zone

Run Schedule Invoice Text: NOTICE CITY OF BRISTOL, VIRGINIA PUBLIC HEARING

5/17/2020, 5/18/2020, 5/19/2020, 5/20/2020, 5/21/2020, 5/22/2020, 5/23/2020,

5/24/2020, 5/25/2020, 5/26/2020

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Ad Content ProofNote: Ad size does not reflect actual ad

Page 1 of 205/12/2020 1:18:33 pm

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Order ConfirmationOrder# 0001093170

Page 2 of 205/12/2020 1:18:33 pm

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City of Bristol, VirginiaCity Manager’s RecommendedFY20-21 Budget

Randall Eads, City Manager

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Presentation Overview

• Statutory requirements• Budget summary, all funds• General fund summary• Budget comparison and budget reduction summary• Capital fund detail• Financial policies and next steps

Randall Eads, City Manager

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Statutory requirements

Randall Eads, City Manager

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• § 15.2-2503. Budgets. • The governing body shall prepare and approve

a budget for informative and fiscal planning purposes only, containing a complete itemized and classified plan of all contemplated expenditures and all estimated revenues and borrowings for the locality for the ensuing fiscal year.

Randall Eads, City Manager

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Randall Eads, City Manager

There is no guidebook for local government budgeting during a global pandemic.

Contemplated expenditures and estimated revenues are based on the best data we have: but some things, like COVID-19, are unprecedented.

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Summary, All Funds

Randall Eads, City Manager

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Total revenues, all funds: $68,389,603Total expenses, all funds: $68,389,603

General Fund: 76%$51,845,468

Capital Projects Fund: 14%$9,659,216

Solid Waste Disposal Fund: 8%

$5,812,168

Community Development Block Grant Fund: 1%

$368,785

Transit Fund: 1%$477,056

Asset Forfeiture Fund: <1%

$101,310

Commonwealth Attorney Federal Revenue Sharing

Fund<1%

$125,600

Randall Eads, City Manager

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General fund summary

Randall Eads, City Manager

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Revenue Sources- General Fund:

Randall Eads, City Manager

$34,092,127

$14,532,323

$3,221,018

Revenue from Local SourcesRevenue from Commonwealth of VirginiaRevenue from Federal Government

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General Fund Expenditure Summary

Randall Eads, City Manager

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Budget comparison and reduction summary

Randall Eads, City Manager

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Budget Comparison: FY 20, FY21 Version 1 and FY 21 Final Recommended

Year General Fund Increase/(Decrease) $ over FY 20

Increase/(Decrease) % over FY 20

FY 20 Original Budget

$53,930,744

FY 21 Recommended Version 1

$54,690,671 $759,927 1.4%

FY 21 Final Recommended

$51,845,468 ($2,085,276) (3.86%)

Randall Eads, City Manager

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City Manager’s Recommended Budget, Version 1• City Manager developed a recommended budget in early March 2020

with General Fund revenues and expenses of $54,690,671. Balancing this recommendation required significant reductions, among them:

• Sheriff’s Dept Overtime and IT funding• Reduced inmate housing to $1 million• Transfer to SWDF reduced to $227,480• Reduced city attorney increase• Reduced tourism promotion agencies: CVB to $100,000, BiB to $15,000, and

BCM to $3,500

Randall Eads, City Manager

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Final Recommended Budget

• March 13 enacted Essential Purchases Only policy to address impacts of COVID-19 in current fiscal year.

• To address future fiscal year impacts, we estimated revenue reductions for full or half year and reduced expenditures accordingly.

• Departments were tasked with identifying reductions with a goal of 15%. City Manager and CFO reviewed the reductions and made further adjustments as needed to meet target.

• These reductions will have significant impacts on the types of services and the level of services that we provide to Bristol residents.

Randall Eads, City Manager

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COVID-19 revenue impacts

Lodging Tax 50%Meal Tax 50%

Admission Tax 70%

Local Sales and Use 10%Local Sales and Use 10%

Business License 10%

Randall Eads, City Manager

Full YearPartial Year

Total Impact: $2,593,000

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Changes in expenditures by function

Randall Eads, City Manager

Government Administration ($301,507)

Courts and Judicial Services ($85,862)

Public Safety ($624,787)

Public Works- Streets, Engineering, Fleet ($293,648)

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Changes in expenditures by function

Randall Eads, City Manager

Social Services ($212,907)

Schools ($186,000)

Parks and Rec ($316,556)

Community and Economic Development ($383,285)

Transfers ($193,080)

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Changes in expenditures, FTE impact

Randall Eads, City Manager

Department Impact

Information Technology -0.5 FTE

Purchasing (restructured/combined) -0.67 FTE

Judicial Alternative Sentencing -1.0 FTE

Police Dept -3.0 FTE

Fire Dept -1.0 FTE

Animal Control -0.5 FTE

Public Works (restructured) -0.5 FTE

Social Services -4.0 FTE

Parks and Rec programming -2.5 FTE

Economic Development -1.0 FTE

Community Development -0.5 FTE

Code Compliance -1.0 FTE 22

Bristol Virginia Public Schools

Randall Eads, City Manager

FY20Budget

FY 21 Requested

FY 21 Version 1

FY21 Final Recommended

SchoolsTransfer-Operating

$6,686,010 $6,986,010 $6,772,010 $6,586,010

Schools Transfer-Capital

$-

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Tourism promotion program

FY 20 Budget FY21 Requested FY21 Version 1 FY21 Final Recommended

Discover Bristol/CVB $125,000 $175,000 $100,000 $50,000

Believe in Bristol $20,000 $50,000 $15,000 $7,500

Birthplace of Country Music

$5,000 $125,000 $3,500 $1,750

Randall Eads, City Manager

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The Falls (Phase 2 and 3): Revenue Update

FY 19 Budget FY20Budget FY21 Budget

Total Falls Revenue $470,700 $826,700 $743,402

Total Debt Allocated to the Falls

$1,804,863 $2,043,241 $2,323,241

Revenue Sharing Agreement

$350,000 $350,000 $350,000

Deficit/Revenue Shortfall $(1,684,163) $(1,566,541) $(1,929,839)

FY Reduction of Deficit $117,622 $(363,298)

Randall Eads, City Manager

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Solid Waste Disposal Fund

Randall Eads, City Manager

Collection Rate Remains at $33 (no increase)

Liner Accrual $0 (eliminated due to reduced GF transfer)

Closure and Post-Closure Accrual $146,510

General Fund Transfer $106,410

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Capital Projects Fund

Randall Eads, City Manager

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Capital Projects Fund: Sources

Transfer from General Fund

$468,084

State Funds$2,127,026

Federal Funds

7,064,106

Total Capital Projects Fund

$9,659,216

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Capital Projects Fund: Detail

Sheriff’s Office: Fleet Rotation, Vehicles $90,000

Local $90,000 Total Sheriff’s Office $90,000

Police: Fleet Rotation- Vehicles $220,000

Police: Audio Recorder $30,000

Local $250,000 Total Police $250,000

Fire: Personal Protective Equipment $30,000

Local $30,000 Total Fire $30,000

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Capital Projects Fund: Detail

Capital: Lee Highway Phase 1B $5,687,189

Capital: Shared Use Path, Overhill to Clover $192,916

Capital: Goodson Street Bridge Rehab $392,850

Capital: Drainage Improvements $45,000

Capital: Shared Use Path, Bonham Road $786,578

Capital: Euclid-Bob Morrison Signal $416,348

Capital: MLK Bridge Rehab $712,023

Capital: Fairview Street Bridge Rehab $267,153

Capital: Lee Highway-Old Airport Intersection $306,647

Capital: Oak St Bridge Replacement $482,512

Local $98,084 State $2,127,026 Federal $7,064,106 Total Capital $9,659,21630

Financial policies and next steps

Randall Eads, City Manager

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Financial policies• General Obligation Debt as a Percentage of Assessed Value

• Debt as a Percentage of Operating Expenditures per Fund

• Unassigned Fund Balance

Policy Goal FY17 Actual FY18 Actual FY19 Actual FY20 Projected

FY21 Projected

5% 8.37% 8.38% 8.15% 8.10% 7.95%

Policy Goal

FY 17 Actual

FY18 Actual

FY19 Actual

FY20 Projected

FY21 Projected

Operating Fund

8% 5.7% 5.7% 6.18% 7.18% 8.92%

SWDF 8% 25.54% 33.91% 32.17% 28.29% 36.52%

Policy Goal FY17 Actual FY18 Actual FY19 Actual FY20 Projected

FY21Projected

18% 13.37% 24.3% 27.46% 23.08% 27.07%

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What’s next

• May 26 – Public Hearing; Council may make changes to budget presentation after the Public Hearing

• May 27 & 28 – Two on Two with Council members to discuss the budget in detail

• Week of June 1- potential workshops if needed• June 9 – First Reading of Budget Ordinance• June 23 – Second Reading & Passage of Budget Ordinance

Randall Eads, City Manager

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CITY COUNCIL

AGENDA ITEM SUMMARY Meeting Date: May 26, 2020 Department: City Manager Staff Contact: Nicole Storm,

AGENDA ITEM WORDING:Resolution confirming preferred casino operator.

ITEM BACKGROUND:Resolution confirming selection of preferred casino operator pursuant to direction from the VirginiaLottery Board in compliance with section 58.1-4107 of the Code of Virginia.

PREVIOUS RELEVANT ACTION:Public hearing on preferred casino operator was held on 5/21/20. RFI advertised on 4/20 and 4/27 in theBristol Herald Courier, with responses due back May 8th.

STAFF RECOMMENDATION: DOCUMENTATION: RFI ad 4.20 and 4.27.pdf Bristol RFP - Cover Letter_v3 - SIGNED.pdf Resolution_CASINO OPERATOR.pdf

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The City of Bristol, Virginia is seeking request for information from enterprises with whom the City can select a preferred gaming operator for the development and

operations of a destination resort/casino as described by § 58.1-4107 of the Code of Virginia. The original response and five (5) copies must be received by the issuing office no later than the close of business Friday, May 8th at 5:00pm. Responders shall provide

one (1) additional copy with all information considered proprietary redacted and suitable for public inspection in accordance with § 2.2-3704.01, § 2.2-3705.6, and any

other applicable law of the Code of Virginia. Responses must be sealed, addressed and clearly labeled as follows:

Randall Eads, City Manager/Attorney City Hall

300 Lee Street Bristol, VA 242014

citymanager@bristolva.org Questions regarding requirements set forth in the request for responses must be

submitted in writing to Mr. Randall Eads, City Manager/City Attorney at CityManager@bristolva.org no later than one (1) week prior to the due date. Any questions received after close of business on May 1, 2020 will not be answered.

The full request for information is available on our website at https://www.bristolva.org/casinoRFI.

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Hard Rock International, Worldwide Headquarters

5701 Stirling Road Davie, FL 33314

PH.954-488-7800

Mr. Randall Eads City Manager/Attorney City Hall 300 Lee Street Bristol, VA 24201 May 8, 2020 RE: Bristol, VA Casino RFI Dear Mr. Eads,

Hard Rock, along with its partners Jim McGlothlin and Clyde Stacy are proud to submit this proposal in response to the City of Bristol’s (“City”) Request for Information.

Our master-planned project (“Hard Rock Bristol”) will modernize the approximately 46 acre Bristol Industrial Mall with an Entertainment focused hotel and casino including an abundance of non-gaming and entertainment amenities, a cornerstone of Hard Rock’s Resorts and Casinos. The proposed project will include a 750-room hotel with suites, a fitness center, spa and other amenities found in our luxury hotels. The property will have an energy and music filled gaming floor, surrounded by a mix of dining options including high-end restaurants not currently found in the Bristol region. Further, the project includes meeting and event spaces with breakout rooms and a major indoor / outdoor Hard Rock Live entertainment center that will be able to host indoor concerts up to 3,200 guests and outdoor concerts with capacity for 20,000 people. These spaces will allow for business meetings, showcase exhibitions, and enough space for thousands to attend any type of event, a major catalyst for visitation to the Bristol, VA market.

Additionally, the project will include retail outlets for high-end luxury goods as well as several stores that may sell name brands at discounted prices.

Given the currently distressed national economy, the final number of rooms initially built and the size of the overall facility will depend on the economic realities at the time of licensure and the beginning of construction of Phase 1 but has the capacity to expand to the full scope described above.

We estimate local taxes collected at the project on behalf of the City of Bristol to be between $15 and 20 million dollars per year, including admissions, food, beverage, lodging and merchandise as well as real estate and personal property and machinery and tools taxes. Additionally, the City will collect taxes resulting from the indirect and induced benefits of project and its share of the state gaming tax resulting from the Casino operation, which will be shared with other localities in this region.

The Resort payroll wages will amount to up to $90 million on an annual basis and will help to provide the city a source of new revenue, both to local and regional businesses and add significantly, through indirect spending, to the local and regional economy.

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Hard Rock International, Worldwide Headquarters

5701 Stirling Road Davie, FL 33314

PH.954-488-7800

May 8, 2020

Hard Rock Bristol and its owners will look to find additional ways to cooperate with the City, its school systems, police, and fire departments along with the thousands of citizens of Bristol, Virginia in order to make it a better place to work and live.

Enclosed please find six (6) hard copies of our complete response and one (1) electronic copy of our complete response on USB thumb drive. This response contains highly confidential commercial, financial and technical information proprietary to Hard Rock and its partners and as requested, we have included one (1) additional copy which has the highly confidential information redacted so it can be released in compliance with the Virginia Freedom of Information Act.

On behalf of Hard Rock Bristol, we would like to thank you for this opportunity to submit our response to the City’s Request for Information and remain available to answer any questions you may have. Thank you. Sincerely, Sincerely, Jim Allen Jim McGlothlin Chairman, CEO, and President Chairman and CEO Hard Rock International The United Company Enc.

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RESOLUTION

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRISTOL, VIRGINIA NAMING HARD ROCK INTERNATIONAL, THE UNITED COMPANY, AND PAR VENTURES AS THE PREFERRED CASINO GAMING OPERATOR AND ESTABLISHMENT

WHEREAS, the City Council met on September 11, 2018, to consider the revitalization of the former Bristol Mall location; since its closure in August 2017, the City has lost more than $2.5 million dollars annually in direct and indirect revenues from the Bristol Mall, with no certain means of recovery or future use; WHEREAS, the City Council unanimously approved (4-0 with one absent) the September 11, 2018 resolution supporting a resort and casino at the former Bristol Mall site; WHEREAS, the General Assembly passed legislation allowing the citizens of Bristol to vote by referendum to approve a casino within the city limits of Bristol, and the Governor has approved this legislation; WHEREAS, the legislation requires localities to consider the following factors in selecting a preferred casino gaming operator: (1) The potential benefit and prospective revenues of the proposed casino gaming establishment; (2) The total value of the proposed casino gaming establishment; (3) The proposed capital investment and the financial health of the proposer and any proposed development partners; (4) The experience of the proposer and any development partners in the operation of a casino gaming establishment; (5) Security plans for the proposed casino gaming establishment; (6) The economic development value of the proposed casino gaming establishment and the potential for community reinvestment and redevelopment in an area in need of such; (7) Availability of city-owned assets and privately owned assets, such as real property, including where there is only one location practicably available or land under a development agreement between a potential operator and the city, incorporated in the proposal; (8) The best financial interest of the city; and (9) The percent of ownership in the proposer by a minority-owned business as defined in §2.2-1604. WHEREAS, the City issued a request for information, on April 17, 2020 with a close date of May 8, 2020, requesting information from casino operators to determine which operator would be of the most benefit to the City; 38

WHEREAS, the city received one response to the request for information. The response was from Hard Rock International, Inc., The United Company, and Par Ventures collectively; WHEREAS, Council and city staff have reviewed the proposal and have considered all of the factors required by the legislation; and WHEREAS, after considering all of the factors, city Council and staff recommend Hard Rock International, The United Company and Par Ventures to be the preferred gaming operator within the city limits of Bristol; and NOW, THEREFORE BE IT RESOLVED that City Council and staff approve Hard Rock International, The United Company and Par Ventures to be the preferred casino gaming operator and gaming establishment within the jurisdictional bounds of the City of Bristol. Council therefore direct the City Manager/Attorney to comply with the legislation and regulations to report this finding to the Virginia Lottery Board for pre-qualification approval in order to comply with statutory authority and regulations to allow for a referendum on the matter on November 3, 2020. (SEAL) Attest: Nicole Storm CITY COUNCIL CLERK OF THE CITY OF BRISTOL, VIRGINA By By Clerk Mayor

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CITY COUNCIL

AGENDA ITEM SUMMARY Meeting Date: May 26, 2020 Department: City Clerk Staff Contact: Nicole Storm,

AGENDA ITEM WORDING:Amendment to Emergency Ordinance 20-1.

ITEM BACKGROUND:City Council passed Emergency Ordinance 20-1 on March 30, 2020 due to the COVID-19 pandemic.This amendment will continue the emergency ordinance for an additional 60 days, with a new end dateof July 30, 2020.

PREVIOUS RELEVANT ACTION:

STAFF RECOMMENDATION: DOCUMENTATION: Emergency Ordinance 20-1.pdf

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CITY COUNCIL

AGENDA ITEM SUMMARY Meeting Date: May 26, 2020 Department: City Clerk Staff Contact: Nicole Storm,

AGENDA ITEM WORDING:Update on Bristol Complete Count Committee.

ITEM BACKGROUND:At the direction of Council, city staff formed a census Complete Count Committee in conjunction withBristol Tennessee. Staff will provide an update on the census timeline altered by COVID-19 and thecurrent response rate in the City of Bristol.

PREVIOUS RELEVANT ACTION:

STAFF RECOMMENDATION: DOCUMENTATION:

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