JANUARY 2 2001 MINUTESCITY COUNCIL
MAYOR MEYERA E OBERNDORE At-Large
VICE MAYOR WILLIAM D SESSOMS, JR, At-Large
LINWOOD 0 BRANCH, III, Beach -Dtstrtct 6
MARGARET L EURE, Centervtlle -Dtstrtct 1
WILLIAM W HARRISON, JR, Lynnhaven -Dlstrtct 5
BARBARA M HENLEY, Prtnces, Anne -Dtstrtct 7
LOUIS R JONES, Baystde -Dtstrtct 4
REBA S McCLANAN, Rose Hall -Dtstrtct 3
ROBERT C MANDIGO, JR, Kempsvtlle -Dtstrtct 2
NANCY K PARKER, At-Large
ROSEMARY WILSON, At-Large
JAMES K SPORE, Ctty Manager
LESLIE L LILLEY, Ctty Attorney
RUTH HODGES-SMITH, MMC, Ctty Clerk
"COMMUNITY FOR A LIFETIME"
CITY COUNCIL AGENDA
0~. OUR
CITY HALL BUILDING 1
2401 COURTHOUSE DRIVE
VIRGINIA BEACH VIRGINIA 23456-9005
PHONE (757) 427-4304
FAX (757) 426-5669
EMAIL Ct~'cncl@cttv vtrgtnta-beach va us
January 2, 2001
I CITY MANAGER'S BRIEFINGS
- Conference Room -
11:00 AM
A
B.
Co
SANITARY SEWER RATE INCREASE
Clarence Wamstaff, Director, Department of Public Utilities
NORFOLK WATER SERVICE' Contract Issues
Clarence Wamstaff, Director, Department of Public Utilities
GENERAL BOOTH FIRE STATION
Gregory B. Cade, Chief, Fire Department
II. REVIEW OF AGENDA ITEMS
III CITY COUNCIL COMMENTS
IV INFORMAL SESSION
- Conference Room -
I:00PM
A. CALL TO ORDER - Mayor Meyera E Oberndorf
B ROLL CALL OF CITY COUNCIL
C RECESS TO CLOSED SESSION
Citizens may register to address City Council for a limited time on any item
on the Formal Council Agenda. Speakers may register immediately prior to
the meeting or, in advance, by calling the City Clerk's Office at 42 7-4303.
V FORMAL SESSION
- Council Chamber-
2:00 PM
A. CALL TO ORDER- Mayor Meyera E. Obemdorf
B. INVOCATION:
Reverend Thomas H Britton
Pastor Emeritus
C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
D. ELECTRONIC ROLL CALL OF CITY COUNCIL
E CERTIFICATION OF CLOSED SESSION
F. MINUTES
1 1NFORMAL & FORMAL SESSIONS
2. SPECIAL FORMAL SESSION
December 12, 2000
December 26, 2000
Go
AGENDA FOR FORMAL SESSION
The Consent Agenda will be determined during the Agenda Review Session and considered tn the
ordinary course of business by Ctty Councd to be enacted by one motion.
H
PUBLIC HEARING
o
SALE OF EXCESS CITY OWNED PROPERTY: 1876 Wildwood Drive
( DISTRICT 5 - LYNNHAVEN)
2. FARMERS' MARKET LEASE - Reflections of the Heart
ORDINANCES/RESOLUTION
Ordinance to declare a 1.935 acre parcel of land as EXCESS PROPERTY at 1876
Wildwood Drive, and, authorize the City Manager to convey this property to Morris
Investment Inc. ( DISTRICT 5 - LYNNHAVEN)
°
Ordinance to AUTHORIZE the City Manager to enter into a lease with Laurie Moser t/a
"Reflections of the Heart" for space #11 at The Farmers Market.
°
Ordinance to CREATE and ESTABLISH neighborhood storm water infrastructure
improvements; TRANSFER $1,305,292 from Lynnhaven Drive drainage outfall; ACCEPT
and APPROPRIATE $577,407 in additional state funds from the V~rgima Department of
Transportation (VDOT); and, increase estimated revenues accor&ngly to fund drmnage
~mprovements in various neighborhoods.
.
Resolution to confirm a "Sister City" designation between the Borough of North Down,
Northern Ireland, and the City of V~rg~nia Beach; and further, to ~nwte the Mayor of North
Down to Virgima Beach for the signing ceremony on January 23,2001
5. Refunds:
a. Licenses: $155,158.75
b. Tax: $ 1,206.67
APPOINTMENTS
COMMUNITY SERVICES BOARD - Nominated December 12, 2000.
Vicki E. Short (Family Member)
Helen P. Shropshire 3 years
Unexpired thru 12/31/02
1/1/01 - 12/31/03
lin accordance with Vtrgima State Code, 3~ 37 1-195, information on the
above proposed appomtees ts available tn the Office of the City Clerk]
HUMAN RIGHTS COMMISSION
VIRGINIA BEACH FOUNDATION, INC.-Distribution Committee
VIRGINIA BEACH HEALTH SERVICES ADVISORY BOARD
K. UNFINISHED BUSINESS
L. NEW BUSINESS
M. ADJOURNMENT
If you are physically disabled or visually impaired
and need assistance at this meeting,
please call the CITY CLERK'S OFFICE at 427-4303
Hearing impaired, call: TDD only 427-4305
(TDD- Telephonic Device for the Deaf)
12/28/00slb
AGEN DA\01/02/01
www wrgmla-beach va us
MINUTES
VIRGINIA BEACH CITY COUNCIL
V~rgima Beach, V~rg~nia
January 2, 2001
Mayor Meyera E Oberndorf called to order the CITY MANAGER'S BRIEFING re SANITARY SEWER
RATE INCREASE tn the Council Conference Room, City Hall Butldtng, on Tuesday, danuary 2, 2001,
at 11 OOA M
Counctl Members Present
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts
R Jones, Robert C Man&go, dr, Mayor Meyera E Oberndorf
Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and Rosemary
Wtlson
Counctl Members Absent
Wtlham W Harrtson, Jr
Reba S McClanan
[ON VA CA TION IN HA WAII WITH FAMILY
WILL ~TURN 1/03/01]
[ENR 0 UTE FR OM FAMILY VA CA TION,
AIRLINE DELAY ENTERED CLOSED
SESSION 1 35 P MI
-2-
CITY MANAGER'S BRIEFING
SANITARY SEWER RATE INCREASE
11:00 A.M.
ITEM # 4 7563
Clarence Warnstaff Dtrector of Pubhc Uttltttes, recogntzed members of the Pubhc Utthttes staff tn
attendance Martlyn Crane, Admmtstrattve Staff asststmg wtth the power potnt presentatton, Gary Jones,
Engtneertng Manager responstble for the Ctty's Water and Samtary Sewer Capttal Programs, and, Tom
Leahy, Water Resources Manager (Lake Gaston) Mr Warnstaff advtsed the Water and Sanitary Sewer
Enterprise Fund was created by Ctty Counctl tn 1974 The only source of revenue ts dertved from the
servtces provtded to the customers by Pubhc Uttltttes No subst&es are recetved from the City's tax
generated revenue Thts ss a "stand alone" program The Ctty's Water and Samtary Sewer Utthty dtrectly
supports the Ctty's strategtes to achteve the outcome "Community for a Lifetime "Water and santtary
sewer are core servtces provtded by the Ctty fundamental to achtevtng (1) economtc and soctal prospertty
and (2) healthy, safe, attracttve surroundtngs
To ensure suffictent revenues to achteve the City's desired outcomes, these increased fees wtll address aging
tnfrastructure and meet current/future unfunded real mandates as well as matntatn financtal health It ts
recommended that monthly sanitary sewer service charges be increased.
PROGRAMS
Ensure full compliance with state and federal laws and regulations (Safe
Drinking Water A ct - ADOPTED by Congress tn 19 74 and Clean Water Act
- ADOPTED by Congress tn 1972)
Extend the public utility system to serve existing neighborhoods that use
wells and septic tanks. (Since 1971, the Ctty has completed 131 water
netghborhood projects and 155 santtary sewer netghborhood projects at
a combined cost of$168-MILLION Inyear 2000 dollars, this would equate
to over $235-MILLION)
Design and build major utility facilities to support neighborhoods and
economic development (Wtth the completton of the Lake Gaston ProJect
and improvements to the Norfolk Water system tn accordance wtth the
water services contract, the water uttltty system ts tn the best condttton tn
the entire history of the City)
Acquire privately owned utilities to achteve umform servtce and rates to
all utthty customers (Thts program ts complete Stnce 1977, the Ctty has
acqutred 5 privately owned water utthttes and 6 santtary sewer utthttes
The Indian River Water Company, the last prtvately owned water utthty,
was acqutred tn 2000 )
Invest in aging infrastructure to ensure reffable service and regulatory
compliance (The Aging Infrastructure Pohcy was ADOPTED by Ctty
Counctl September 1999 Approxtmately 50% of the Samtary Sewer Capttal
Improvement Program ts devoted to aging infrastructure)
Operate and maintain the utility system to ensure reliable and dependable
service
Ensure financial health to obtain the highest possible bond rating to
produce cost savings for customers (The Ctty's bond rating was mcreased
from A to AA, thus savmg water and sewer customers mtlhons of dollars tn
debt servtce )
Provide quaffty cusWmer service (The Uttltty operates 24 hours a day,
seven days a week, 365 days a year Crews worked thts Chrtstmas Eve and
Chrtstmas Day)
The proposed recommended adjustment (along wtth current revenues) would support revenue bonds tn the
amount of $96-MILLION ($34-MILLION currently authortzed but not yet sold and $62-MILLION
programmed tn the Capttal Improvement Program for FY 2002 through FY 2006)
January 2, 2001
-3-
CITY MANAGER'S BRIEFING
SANITARY SEWER RATE INCREASE
ITEM # 4 7563 (Continued)
Number of Projects
Type Total %
Neighborhood Projects 2 7 23
Aging Infrastructure Projects 22 18
System Enhancements 40 34
VDOT/Highway Coordination 30 25
TOTAL 119 100%
Projects
Six-Year Program Estimated Cost %
Water $ 34, 095, 000 35
Sanitary Sewer $ 62, 758,026 65
TOTAL $ 96,853,026 100%
Mr Warnstaff ctted means of financmg
*Revenue Bonds $ 70,195, 000
*Pay-As- You-Go $23,448,026
*HRSD $ 3,210, 000
TOTAL $96,853,026
It has been rune years since there has been an adjustment tn the Sanitary Sewer Service charge
Sanitary Sewer Service Charge
Single Family
Effective Date Restdence (per month)
July 1, 1983 $ 9 46
October 1, 1990 $ 9 65
July I, 1991 $ 10 58
duly 1, 1992 $ 1I 38
Mr Warnstaff advtsed the recommendations are for rate increases for each of the next three (3) years:
July 1, 2001 $12.29
July 1, 2002 $13.27
July 1, 2003 $14.34
96% of all customers comprtstng the system are restdenttal Mr Warnstaff ctted an example of a typtcal
restdenttal monthly btlhng The total monthly tncrease tn dollars to the customer would equate to $2.96 and
the total monthly increase as a percentage of current charges would be 8.2% over a period of three years'
The Ctty's utthty tax and the Hampton Roads Santtatton Dtstrtct charge were not tncluded tn thts example
January 2, 2001
-4-
CITY M/INA GER 'S BRIEFING
S/INIT/IR Y SEWER RATE INCREASE
ITEM # 47563 (Continued)
Mr Warnstaff ctted the recommendattons
Conttnue Ctty Counctl's long standtng pohcy to extend pubhc water and
samtary sewer servtce to extsttng netghborhoods
Address agtng tnfrastructure by rebutldtng porttons of the samtary sewer
system
Support economtc development by continuing to bmld the water and
samtary sewer system
Continue comphance wtth unfunded federal mandates
Ensure financtal health to mamtatn the AA water and samtary sewer bond
rattng
Matntam quahty customer servtce
Relattve aging infrastructure, Mr Warnstaff ctted the example of Aragona Village The destgn and
construction standards apphed to this netghborhood decades ago are now deficient The systems are nearing
the end of thetr useful hfe Pubhc Utthttes ts tn the process of basically rebmldmg the samtary sewer
collectton system Thts ts very expenstve Vtrglma Beach ts a relattvely young ctty and much of tts
tnfrastructure ts not old and detertorattng It ts new, however, certatn porttons of the system are old and
need to be rebutlt
There was a water rate decrease of l OC per 1, O00 gallons in 1999. The average restdenttal customer utthzes
6,000 gallons of waterper month At lOC per 1,000 gallons, the savings are 60¢ per month The Ctty's
water and sewer fees tend to be htgher than netghbortng ctttes However, Vtrgtma Beach has the best
servtce/ Mr Warnstaff shall determtne the amount of Pay-As-You-Go that can be reduced, wtthout havtng
an tmpact on the Ctty's Bond Rattng Mr Warnstaff shall provtde the dtfference between the capttal and
operattonal costs The percentage of the Revenue Enterprtse Fund to Capttal and Operattonal wtll be
provided Revenue Bonds are issued under a Master Bond Resolutton and required under thts Resolution
to provtde Pay-As-You-Go funding of a mmtmum of $2-MILLION per year Thts ts bastcally generated
from fees and charges The Ctty ts actually transferring $3-MILLION a year from the Operatmg Budget Thts
ts proposed to be tncreased from $3-MILLION to $3 75-MILLION
The mthtary bases located tn Vtrgtma Beach are water customers of the Ctty of Norfolk Waste water ts
collected on base and pumped, tn most cases, to Hampton Roads Santtatton Dtstrtct
All santtary sewer collectton systems wtll expertence overflows It is not practical or cost effective to
achieve zero overflows. The only way to achteve zero overflows ts to butld the system out of statnless steel
wtth weldedjotnts and crews asstgned datly to cleanmg the system The objecttve ts to mmtmtze the overflow
to a reasonable level This City should not expertence gas bmld up tn the Sanitary Sewer Collection System
However, under federal regulations before any personnel ts sent into a confined space, the presence of toxtc
and hazardous gases tn wet wells, pump stattons and samtary sewer areas must be tested The major danger
tn a santtary sewer collectton system wtth hazardous matertal ts somethtng that ts tntroduced from
bustnesses t e underground leakmg gasohne tanks
For new subdtvtstons, the developer 1s requtred, by Ctty ordinance, to design and build the sanitary sewer
and water collection system to serve that new development Therefore, no dollars are programmed whtch
relate to new residential construction. Developers are requtred to pay the water and santtary sewer
connectton charges Pubhc Works and Pubhc Utthty projects are co-ordtnated t e tn Sandbrtdge a portton
of the Storm Water Dratnage System was tnstalled tn co-ordtnatton wtth Pubhc Works so the streets could
be cut and paved only once
The City owns and operates the Sanitary Sewer Collection and Conveyance System Wastewater ts collected
from homes and businesses tn Virginia Beach and pumped to HRSD HRSD provides the treatment of the
waste Ctty Counctl requested Staff reevaluate thetr recommendatton and gtve opttons wtth the total tncrease
tn one (1) year versus three (3) years A scenarto of a stngle rate tncrease versus three wtll be provtded
January 2, 2001
-5-
CITY MANAGER'S BRIEFING
NORFOLK WA TERSER VICE
12:07P. M.
ITEM # 4 7564
Mr Clarence Warnstaff, Dzrector of Pubhc Uttltttes, advtsed the Norfolk Water Service Contract was stgned
tn 1993 and extends to 2030 (37years) Thts contract requtres the Ctty of Norfolk to recetve water from
Lake Gaston, convey that water through their system, treat the water and dehver that water to Virginia
Beach along our common border The Lake Gaston project became operattonal January 1, 199& The water
servtces' contract ts worktng extremely well Thts ts a very good document that benefits both ctttes Mr
Warnstaff referenced the tssues under constderatton
Allocation of costs related to water transmission capacity
Calculation of Norfolk's water system bond interest rate
Mr Warnstaff dtsplayed a map of the Norfolk Water System wtth the Lake Gaston project If there ts any
problem wtth the pump stattons Western Branch, Lake Prtnce, Stmonsdale or any of the hnes, Norfolk has
the capabthty to draw water from the "tn-town" lakes
Allocation of Costs related to Water Transmission Capacity.
Costs are allocated between Norfolk and Vtrgtma Beach based on each
ctty's use or expected use
Expected use per the Contract ts defined as Contract Capactttes
Average Day 45 MGD
Max Month 59 MGD
Max Day 68 MGD
Max Hour 90 MGD
Relative water transmtsston capactty, water demand on the system ts not untform and vartes by season, day
of the week and ttme of the day Customers create water demand Vtrgtnta Beach contracted for 59 mtlhon
gallons per day tn 1993 Norfolk, at that ttme, dtd not beheve they would be tn a posttton to allocate 68
mtlhon gallons per day to Vtrgmta Beach After dtscusstons with Norfolk, both parttes concluded a change
tn the contract would be requtred The Ctty ts recommendtng a contract wtth Norfolk for thts addtttonal
capactty (9 MGD), amend the contract to ehmtnate maxtmum month hmttatton and contract for addtttonal
water transmtsston capactty The cost of thts addtttonal capactty ts about $800,000 a year Thts cost ts
already mcluded tn the cost of service from Norfolk to Vtrgmta Beach and the current water rate The staff
ts not forecasttng a need to tncrease water rates to accommodate thts addtttonal capactty Norfolk has the
capactty as they have butlt a new pump statton at the Western Branch Reservoir and replaced some of the
raw water transmtsston hnes between Moore's Bridges and Western Branch
Calculation of Norfolk's Water System Bond Interest Rate
Why is this calculation important?
There are three elements of cost tncluded tn the Cost of Servtce
charged by Norfolk Operations andMaintenance, Depreciation
Expense and Return on Investment
Two Year Forecast of Costs (Rates are projected for two years)
True-Up Requirements (Compare projected costs wtth actual
costs and etther a credtt or debtt ts recetved by the Ctty from
Norfolk)
danuary 2, 2001
-6-
CITY MANAGER'S BRIEFING
NORFOLK WA TERSER VICE
ITEM # 4 7564 (Continued)
What is the appropriate way to calculate Norfolk's water system bond
interest rate?
Accrued Interest
Weighted average of outstanding principal
A shared understandmg has been reached Using thts concept offouryears tn revtew (1996, 1997, 1998 and
1999), Vtrgtnta Beach will receive an addtttonal cre&t from Norfolk of $694,194. The total credit Virginia
Beach has recetved because of the "True-Up" prowston has been over $20-MILLION
The Mayor and Counctl Members expressed apprectatton to the team of Clarence Warnstaff, Tom Leahy and
Patrtcta Phtlhps, for thetr dedtcatton to thts tssue
January 2, 2001
-7-
CITY MANAGER'S BRIEFING
GENERAL BOOTH FIRE STATION
12:30 P.M.
ITEM # 4 7565
Gregory B Cade, Chtef - Ftre Department, presented tnformatton relattve the destgn of Fire Station 21
(General Booth) Thts project was first mcluded tn the FY 1998-89 CIP as project #3-968 at a cost of
$1,277,172 Fundmg of the facthty was deferred due to the impact of the recession of the early 1990's Cost
esttmates have been updated to current based on recent fire statton constructton costs and to tnclude
"hardentng" of the facthty for enhanced hurrtcane survtvabthty
13, 774 Square Foot
Built on a 2-acre site (land owned by the City on Ferrell Parkway (to be
renamed March Ftrst as Nimmo Parkway)
Sustain Category H Hurricane Force Winds
Capital Improvement Plan funding $2,539,000
3 Drive-through bays.
Designed to House 2 7 Ftre Department Personnel
6 Rescue Squad Personnel
I Engine
1 Ladder Truck
2 Rescue Squad Untts
Response Times
Reduce response ttmes by 4-6 mmutes
Achieve on-scene response time goal of 5 minutes or less
Qutcker ladder response to rural areas
First on scene to Corporate Landing Business Park
Chtef Cade distributed a copy of the site location and floor plan deptcttng the two elevattons Satd
mformatton ts hereby made a part of the record The bmldmg ts designed by HBA Architects The Fire
Department wtll be holdtng an open meeting wtth the pubhc tn February Surroundtng Civic Leagues and
business owners wtll be tnvtted The destgn should be completed and thts btd submttted by Summer 2001 wtth
constructton commenctng tn October and the Opentng by Summer of 2002 Informatton relattve the
completton of the Sandbridge Fire Station shall be provtded
Concern was expressed relattve the length of ttme projected for constructton
January 2, 2001
-8-
AGENDA RE VIEWSESSION
12:58 P.M.
ITEM 14 4 7566
13
Ordtnance to CREATE and ESTABLISH netghborhood storm
water mfrastructure tmprovements, TRANSFER $1,305,292
from Lynnhaven Drive drainage outfall, ACCEPT and
APPROPRIATE $577,407 tn addtttonal state funds from the
Vtrgmta Department of Transportatton (VDOT), and, tncrease
esttmated revenues accordtngly to fund dratnage tmprovements
tn vartous netghborhoods
Counctl Lady Henley referenced a project not contamed wtthtn the hsttng of Neighborhood Storm Water
Infrastructure Improvements: Sectton of Indian Rtver Road east of Prtncess Anne to the mtersectton of
Newbrtdge This parttcular sectton floods durtng heavy ratns For the past two years, a few houses
approxtmately 'halfway down are vtrtual "tslands" Water completely surrounds these houses E Dean
Block, Director of Pubhc Works, shall review and advise
ITEM # 4 756 7
15 a Refunds:
Ltcenses $155, I58 75
The Ctty Attorney dtstrtbuted a REVISED Ordmance authortzmg Ltcense Refunds totahngo~°'.,:,.'" ~,~:,L"~ 44
$25,223 27 Therefore, the CORRECT total Ltcenses Refunds are o, .,.,,, .,o 75 $40, 752 58
ITEM 14 4 7568
B Y CONSENSUS, thefollowtng shall compose the CONSENTAGENDA:
ORDINANCES/RESOL UTION
11
Ordtnance to declare a 1 935 acre parcel of land as EXCESS
PROPERTY at 1876 Wddwood Drtve, and, authortze the Ctty
Manager to convey thts property to Morris Investment Inc.
(DISTRICT 5- L YNNHA VEN)
12
Ordinance to AUTHORIZE the Ctty Manager to enter tnto a
lease wtth Laurie Moser t/a "Reflections of the Heart" for
space 1411 at The Farmers Market
13
Ordtnance to CREATE and ESTABLISH netghborhood storm
water mfrastructure tmprovements., TRANSFER $1,305,292
from Lynnhaven Drtve drainage outfall, ACCEPT and
APPROPRIATE $577,407 tn addtttonal state funds from the
Virginia Department of Transportation (VDOT), and, increase
esttmated revenues accordmgly to fund dratnage tmprovements
tn various netghborhoods
14
Resolutton to confirm a "Sister City" destgnatton between the
Borough of North Down, Northern Ireland, and the Ctty of
Vtrgtnta Beach, and further, to invite the Mayor of North Down
to Vtrgtnta Beach for the stgntng ceremony on January 23, 2001
1 5 Refunds:
a Ltcenses o~'.,.,, ~ ~ I.,o ~ ° 75 $40, 752 58
b Tax $ 1,206 67
January 2, 2001
-9-
CITY COUNCIL COMMENTS
12:53 P.M.
ITEM # 4 7569
Vtce Mayor Sessoms referenced a ctttzen, who ts a chromc complamer ofjet norse, advtsed htm hts sttuatton
has greatly tmproved Vtce Mayor Sessoms was very tmpressed by thts postttve response Mayor Oberndorf
advtsed the Oceana Operations Task Force forwarded correspondence on November 14, 2000, to all the
Ctvtc Leagues seektng asststance relattve tssues assoctated wtth current operattons at NAS Oceana The
Task Force was estabhshed by the Vtrgmta Beach Ctty Counctl to facthtate meantngful dtalogue between
the community and the Navy Approxtmately 30 days later a reminder was forwarded Comments received
were dtstrtbuted to Members of Ctty Counctl Counctl Lady V~tlson was tmpressed wtth the response of the
Ctvtc Leagues, espectally Shadowlawn Counctl Lady }Vtlson comphmented the Mayor and the success of
here efforts tn thts very trytng sttuatton
ITEM # 47570
Council Lady Parker referenced correspondence and an mvttatton from the Vtrgtma Martne Sctence
Museum re launching of the new outreach truck "Ocean in Motion" Ocean in Motion ts vtrtually a rolhng
aquartum that wtll be sent to schools and pubhc places throughout the state to present educatton programs
on Vtrgtnta's martne envtronment The truck was purchased and outfitted at a cost of $250, 000, whtch was
provided by a very generous benefactor Satd correspondence ts hereby made a part of the record
ITEM # 47571
Mayor Oberndorf advtsed the outgomg Chatr of the Mayor's Committee for the Disabled, Martan Sanders,
ts a dedicated, unselfish human bemg Unfortunately she has completely lost her sight She contacted HRT
to request a handi-ride vehtcle to the Mayor's Committee meeting She was brought to the Central
Library After the busmess meettng and Hohday receptton, an HRT drtver arrtved and called an incorrect
name Mrs Sanders advtsed she was expectmg to be ptcked up and returned to her home The drtver satd
he dtd not have her name, so he could not gtve her a rtde home and left Mrs Sanders had to watt unttl 6 O0
P M to get a rtde wtth Robert Dean, Member of the Commtttee On another occaston, tnstead ofdropptng
Mrs Sanders off at the Beach, HRT left her at Ocean Vtew tn Norfolk Mayor OberndorlCrequested Vice
Mayor Sessoms and Counctl Member Parker, representattves on the Ttdewater Transportatton Dtstrtct
Commtsston, brtng thts matter to the TTDC and later advtse Ctty Counctl accordtngly
January 2, 2001
- lO-
ITEM # 47572
Mayor Meyera E Oberndorf called to order the INFOR31AL SESSION of the VIRGINIA BEACH CITY
COUNCIL tn the Ctty Counctl Conference Room, Ctty Hall Butldtng, on Tuesday, January 2, 2001, at 1 O0
PM
Counctl Members Present
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts
R clones, Robert C Man&go, dr, Mayor Meyera E Oberndorf,
Nancy K Parker, ?tce Mayor Wtlham D Sessoms, dr and Rosemary
Wtlson
Counctl Members Absent
Wtlham W Harrison, dr and Reba S McClanan
danuary 2, 2001
-ll-
ITEM # 47573
Mayor Oberndorf entertamed a motton to permtt Ctty Counctl to conduct tts CLOSED SESSION, pursuant
to Sectton 2 1-344(A), Code of Vtrgmta, as amended, for the followmg purpose
PERSONNEL MATTERS Dtscusston, constderatton or tntervtews ~
prospecttve can&dates for employment, assignment, appointment,
promotton, performance, demotton, salartes, dtsctphnmg, or restgnatton
of spectfic pubhc officers, appointees, or employees pursuant to Sectton
2 1-344 (A) (1)
To W~t
Boards and Commtsstons
Commumty Servtces Board
Human Rights Commtsston
Vtrgtma Beach Foundatton, Inc
Vtrgtnta Beach Health Servtces Advtsory Board
PUBLICLY-HELD PROPERTY Dtscusston or constderatton of the
acqutsttton of real property for a pubhc purpose, or of the dtsposttton off
pubhcly-held real property, where dtscusston tn an open meetmg would
adversely affect the bargaining posttton or negottattng strategy of the
pubhc body pursuant to Sectton 2 1-344(A)(3)
To- Wtt Acqutsttton of Property - Baystde Dtstrtct
Sale of Bonney Road Property
LEGAL MA TTERS Consultatton wtth legal counsel or briefings by staff
members, consultants, or attorneys pertatntng to actual or probable
httgatton, or other spectfic legal matters requtrtng the provtston of legal
advzce by counsel pursuant to Sectton 2 1-344(A)(7)
To-Wtt
Contractual Issue - Sportsplex
Upon motton by Vtce Mayor Sessoms, seconded by Counctl Lady Parker, Ctty Counctl voted to proceed
tnto CLOSED SESSION.
Voting 9-0
Counctl Members Vottng Aye
Lmwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Robert C Man&go, Jr, Mayor Meyers E Oberndorf, Nancy K
Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson
Counctl Members Vottng Nay
None
Councd Members Absent
Wtlham W Harrtson, dr and Reba S McClanan
(Time of Closed Session: 1:01 P.M. to 1:59 P.M.)
Counctl Lady McClanan entered CLOSED SESSION: 1:35 P.M.
January 2, 2001
- 12-
FORMAL SESSION
VIRGINIA BEA CH CITY COUNCIL
January 2, 2001
2:00 P.M.
Mayor Meyera E Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY
COUNCIL tn the Counctl Chamber, Ctty Hall Butldmg, on Tuesday, January 2, 2001, at 2 O0 P M
Councd Members Present
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts
R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera
E Oberndorf Nancy K Parker; Vtce Mayor Wdham D Sessoms, Jr
and Rosemary Wtlson
Counctl Members Absent
Wtlham W Harrtson, dr
[IN HA WAH ON VA CA TION
WITH FAMIL Y]
INVOCATION
Reverend Thomas H Brttton
Pastor Emerttus
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
Vtce Mayor Sessoms, betng a Corporate Officer of Wachovta Bank, DISCLOSED there were no matters on
the agenda tn whtch he has a "personal mterest", as defined tn the Act, etther mdtvtdually or tn hts capactty
as an officer of Wachovta Bank The Vtce Mayor regularly makes thts Dtsclosure as he may not know of the
Bank's tnterest tn any apphcatton that may come before Ctty Council Vtce Mayor Sessoms' letter of January
2, 2001, ts hereby made a part of the record
January 2, 2001
City of Virginia Beach
WILLIAM O SESSOMS JR
VICE MAYOR
(804) 473-3926
FAX (804) 426 5669
4506 ATLANTIC AVENUE
VIRGINIA BEACH VIRGINIA 23451
January 2, 2001
Mrs. Ruth Hodges Smith, MMC
City Clerk
Municipal Center
Virginia Beach, Virginia 23456
Re: Conflict of Interests Act
Dear Mrs. Smith:
As an officer of Wachovia, I am directly and indirectly involved in many of Wachovia's
transactions. However, due to the size of Wachovia and the volume of transactions it handles in any
given year, Wachovia has an interest in numerous matters in which I am not involved and of which
I do not have personal knowledge In that regard, I am always concerned about the appearance of
impropriety that might arise ifI participate in a matter before City Council in which Wachovia has
an interest (e g., having made a secured loan for the purchase of a parcel of property that is the
subject of a rezoning application), but in which I have no personal knowledge of such interest.
Based on the foregoing, in order to ensure my compliance with both the letter and the spirit
of the State and Local Government Conflict of Interests Act (the "Act"), it is my practice to
thoroughly review the agenda for each meeting of City Council for the purpose of identifying any
matters in which I might have an actual or potential conflict. If, during my review of the agenda for
any given meeting of the Council, I identify a matter in which I have a"personal interest," as defined
in the Act, either individually or in my capacity as an officer of Wachovia, I will prepare and file the
appropriate disclosure letter to
be recorded in the official records of the Council.
Thank you for your assistance and cooperation in this matter.
Very truly,you~,
· ' . o , Jr.
Vice Mayor
Item V-E.
- 13-
CER TIFICA TION OF
CLOSED SESSION
ITEM # 4 75 74
Upon motion by Vice Mayor Sessoms, seconded by Councdman Branch, City Council CERTIFIED THE
CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS.
Only pubhc busmess matters lawfully exempted from Open Meetmg
requtrements by Vtrgmta law were discussed tn Closed Sesston to whtch
thts certtficatton resolutton apphes,
AND,
Only such pubhc business matters as were identified tn the motion
convemng the Closed Sesston were heard, dtscussed or constdered by
Vtrgmta Beach Ctty Counctl
Votzng 10-0
Counctl Members Vottng Aye
Lmwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
clones, Reba S McClanan, Robert C Man&go, dr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
danuary 2, 2001
Beso u on
CERTIFICATION OF CLOSED SESSION
VIRGINIA BEACH CITY COUNCIL
WHEREAS. The Virginia Beach City Council convened into CLOSED SESSION,
pursuant to the affirmative vote recorded in ITEM # 47573, Page 11, and in accordance with the
provisions of The Virginia Freedom of Information Act; and,
WHEREAS' Section 2.1-344. of the Code of Virginia requires a certification by the
governing body that such Closed Session was conducted in conformity with Virginia law.
NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby
certifies that, to the best of each member's knowledge, (a) only public business matters lawfully
exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to
which this certification resolution applies; and, (b) only such public business matters as were
identified in the motion convening this Closed Session were heard, discussed or considered by
Virginia Beach City Council.
/,l{uth Hodge~ Smith, MMC
C~ty Clerk
January 2, 2001
- 14-
Item V-F. 1.
MINUTES
ITEM # 47575
Upon motton by Vice Mayor Sessoms, seconded by Councdman Branch, Ctty Councd APPROVED the
Minutes of the INFORMAL AND FORMAl, SESSIONS of December 12, 2000.
Voting 10-0
Councd Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
dories, Reba S McClanan, Robert C Man&go, dr, Mayor Meyera E
Oberndorf Nancy K Parker, Vtce Mayor Wdham D Sessoms, dr and
Rosemary Wtlson
Councd Members Vottng Nay
None
Councd Members Absent
Wdham W Harrtson, Jr
January 2, 2001
Item V-F. 2.
- 15-
MINUTES
ITEM # 47576
Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl APPROVED the
Minutes of the SPECIAL FORMAL SESSION of December 26, 2000.
l/ottng 9-0
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K
Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson
Councd Members Voting Nay
None
Counctl Members Abstatmng
Reba S McClanan
Counctl Members Absent
Wtlham W Harrtson, Jr
Council Lady McClanan ABSTAINED as she was not tn attendance during the City Council Session of
December 26, 2000 Her children hve on the West Coast, therefore she would not be able to attend any
future sesstons durmg the Hohday Season
January 2, 2001
-16-
Item V-G
ADOPT A GENDA
FOR FORMAL SESSION
ITEM # 47577
B Y CONSENSUS, Ctty Councd ADOPTED:
AGENDA FOR THE FORMAL SESSION
danuary 2, 2001
-17-
Item V-H. 1.
PUBLIC HEARING
ITEM # 4 75 78
Mayor Oberndorf DECLARED A PUBLIC HEARING:
SALE OF EXCESS CITY OWNED PROPERTY:
18 76 Wildwood Drive
(DISTRICT 5 - L YNNHA VEN)
There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING
January 2, 2001
- 18-
Item V-H. 2.
PUBLIC HEARING
ITEM # 4 75 79
Mayor Oberndorf DECLARED ,4 PUBLIC HEARING:
FARMERS' MARKET LEASE - Reflections of the HearO
There bemg no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING
January 2, 2001
Item V-I.
-19-
ORDINANCES/RES OL UTION
ITEM # 4 7580
Upon morton by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Counctl APPROVED IN
ONE MOTION, Ordmances/Resolutton 1, 2, 3, 4, 5a (AS REVISED) and 5b of the CONSENTAGENDA.
Voting 10-0
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Mandtgo, Jr, Mayor Meyera E
Oberndorf Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
January 2, 2001
Item V-I. 1.
- 20 -
ORDINANCES/RES OL UTION
ITEM # 4 7581
Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Counctl ADOPTED:
Ordtnance to declare a 1 935 acre parcel of land as EXCESS PROPERTY
at 1876 Wtldwood Drtve, and, authortze the Ctty Manager to convey thts
property to Morris Investment Inc. (DISTRICT 5 - L YNNHA VEN)
Vottng 10-0 (By ConsenO
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
clones, Reba S McClanan, Robert C Mandtgo, dr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vice Mayor Wtlham D Sessoms, dr and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
danuary 2, 2001
AN ORDINANCE DECLARING CERTAIN
PROPERTY EXCESS AND AUTHORIZING
CITY MANAGER TO CONVEY SAME TO
MORRIS INVESTMENT, INC.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
WHEREAS, the City of Virgima Beach acquired ownership of a certain parcel
of real property containing approximately 1.935 acres, located at 1876 Wildwood Drive
(GPIN: 2408-52-4317) in the City of Virginia Beach, Virginia, (the Property) recorded in
Deed Book 1530, at page 0547; and
WHEREAS, the City Council is of the opinion that the Property is in excess
of the needs of the City of Virginia Beach and should be sold to Morris Investments, Inc.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
1. That the following described Property is hereby declared to be in excess
of the needs of the City of Virginia Beach and that the City Manager is hereby authorized to
convey the said property to Morris Investment Co.
All that certain lot, piece or parcel of land situate in the City of
Virginia Beach, Virginia, and designated and described as
"2.000 ACRES" as shown as on that certain plat entitled:
"SURVEY OF A PORTION OF THE JOHN W. POTTER, et al
PROPERTY TO BE CONVEYED TO ATLANTIC MENTAL
HYGIENE CENTER ADVISORY BOARD · LYNNHAVEN
BOROUGH VIRGINIA BEACH, VIRGINIA · SCALE: 1 ''=
100'- JANUARY 11, 1968" a copy of which is attached hereto
as Exhibit A. LESS AND EXCEPT that portion of the
aforesaid property designated and described on the aforesaid
plat as "PROPOSED 15' STRIP OF PROPERTY TO BE
DEDICATED TO THE CITY OF VIRGINIA BEACH,
VIRGINIA FOR STREET WIDENING." Said excepted area
contains approximately 0.065 acres.
IT BEING the same property conveyed to Grantor by
ATLANTIC MENTAL HEALTH CENTER, successor to
ATLANTIC MENTAL HYGIENE CENTER ADVISORY
BOARD INCORPORATED, a Virginia non-stock corporation,
dated October 29, 1975 and recorded in the Clerk's Office ofthe
C~rcuit Court of the City of Virginia Beach, Virginia, in Deed
Book 1530, at page 547 (GPIN: 2408-52-4317).
3 7 2. That Seven Hundred Forty Thousand Dollars ($740,000.00) is to be the
3 8 price of the property.
39
3. Any building site(s) created shall connect to public water and sewer
4 o where available.
41
This ordinance shall be effective from the date of its adoption.
42
Adopted by the Council of the City of Virginia Beach, Virginia, on the 2
4 3 day of 3g. NUg. R¥ ., 2001.
44
45
46
47
CA- 7'I77'~
ORDINSNONCODE\
R-1
PREPARED: November 15, 2000
APPROVED AS TO CONTENT
ghc Works
APPROVED AS TO LEGAL
Department of Law /]
SUMMARY OF TERMS
AGREEMENT FOR THE SALE OF
EXCESS PROPERTY
AT 1876 WILDWOOD DRIVE
OWNER:
BUYER:
SALE PRICE:
City of Vlrglma Beach.
Moms Investments, Inc., a Georgia corporation
$740,000 payable as follows:
$ 5,000 upon execution of Agreement of Sale; and
$735,000 at settlement ~n cash or by certified check.
SETTLEMENT
DATE:
March 31, 2001 unless the City ~s unable to secure a suitable possession
agreement with buyer prior to closing, in the event the City is unable to
relocate the current offices on the Property.
SPECIAL TERMS
AND CONDITIONS:
At the sole option of the City, if the City is unable to relocate the current offices
located on the Property prior to the settlement date, the City and Buyer agree to enter
~nto a possession agreement upon terms and conditions satisfactory to both parties.
City shall be responsible for all costs and expenses related to the Property, including
utihties, ~nsurance and maintenance while the City remains in possession of the
Property after settlement.
The City will have no obhgatlon to close on the Property if ~t has not secured the
aforementioned possession agreement by the proposed settlement date.
o Any building site(s) created shall connect to public water and sewer where avmlable.
LOCATION MAP SCALE · 1" -- 1,600'
/
/
# 1876
GPIN#2408--52-4317
D.B. 260, PG. 547
1.935 ACRES
LOCATION MAP
':SHOWING
EXCESS CITY PROPERTY
'~~_876 WILDWOOD
- '~' 2408-52-4317
j,m lawson asenda.dgn
DRIVE
SCALE: 1" = 100'\
I I I ~ ,,,
PREPARED BY P/W ENG. DRAFT. 16-NOV-2000
SURVEY OF A PORTION OF THE dOHN W POTTER. et O! PROPERTY
TO BE CONVEYED TO .
ATLANTIC MENTAL HYGIENE CENTER ADVISORY BOARD
LYNNHA VEN BORO~H
MRGINIA BEACH, VIRGINIA .
SCALE: I%100' JAHUARY 11,1968
FRANK D. TARRALI., JR., & ASSOClATU
SURVEYOIIS el ENGINEERS
Ikliil~d' F~k'~ffy l .I96e
Prol)erty IMe ~Mn~ed
VIRGINIA BEACH. VIRGINIA
I I - II III I · i i
J.O. 6 TO4 P.S.266, P59
VIRGINIA:
tAe Clerk'. Of/me of tke Circuit Court o/' Virnin,'~
o~ ... , ,~,/'..,1/,','//~., ,,,.
· c~no~J~d~ll I~r~lo annexed, gdmitled 1o record.
c'Prl i[i¢clle
TF'.s'rI,~. JOIIN V. F'E, NTHESS, Clerk
Item V-I. 2.
- 21 -
ORDINANCES/RES OL UTION
ITEM # 4 7582
Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, City Councd ADOPTED:
Ordtnance to AUTHORIZE the City Manager to enter into a lease with
Laurie Moser t/a "Reflections of the Heart"for space #11 at The Farmers
Market
l/otmg 10-0 (By ConsenO
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E
Oberndorf Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and
Rosemary Wtlson
Councd Members Vottng Nay
None
Councd Members Absent
l, Vdham W Harrtson, Jr
January 2, 2001
SUMMARY OF TERMS
LEASE FOR SPACE #11 AT THE VIRGINIA BEACH FARMERS MARKET
LESSOR: City of Virginia Beach
LESSEE: Space 11
Laurie Moser
t/a "Reflections of the Heart"
TERM: January 2, 2001 through December 31,2001
RENT:
Base Rent is $455 per month (payment of rent to begin April 1, 2001).
RIGHTS AND RESPONSIBILITIES OF LESSEE:
Use leased space for retail enterprise consistent with the purpose of the Farmers
Market.
Maintain leased space, including heating and air conditioning units.
Purchase commercial general habdlty insurance
Keep retail space open during hours of Farmers Market operation.
RIGHTS AND RESPONSIBILITIES OF CITY:
Maintain common areas of the Farmers Market and structural elements of the leased
space.
Pay for water, sewer and, in most cases, electrical service.
TERMINATION: City may terminate by providing Lessee sixty (60) days notice.
AN ORDINANCE AUTHORIZING THE CITY
MANAGER TO LEASE A SPACE AT THE
VIRGINIA BEACH FARMERS MARKET
WHEREAS, the City of Virginia Beach has leased spaces in
5 the Farmers Market located at the intersection of Princess Anne and
6 Dam Neck Roads for twenty-three years;
WHEREAS, a space at the Farmer's Market is available for
8 lease, and City staff has identified an existing tenant wishing to
9 lease this space and expand her business; and
10
WHEREAS, a public hearing concerning the proposed lease
11 has been advertised and conducted.
12
13
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
14
That the City Manager is hereby authorized on behalf of
15 the City of Virginia Beach to enter into a lease agreement with
16 Laurie Moser (trading as "Reflections of the Heart") for Space #11
17 at the Farmers Market.
18
19
Adopted by the Council of the City of Virginia Beach,
Virginia, on the 2 day of JANUARY , 2001.
CA7938
F: [DatakATY[Ordin~NONCODE\FM #11 Reflections. ord. wpd
December 15, 2000
R2
APPROVED AS TO CONTENT:
APPROVED AS TO LEGAL
SUFFICIENCY:
Department -of Ag~clitu~re
Item V-L3.
ORDINANCES/RESOL UTION
- 22 -
ITEM # 4 7583
Upon motion by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Councd ADOPTED:
Ordtnance to CREATE and ESTABLISH netghborhood storm water
infrastructure tmprovements, TRANSFER $1,305,292 from Lynnhaven
Drive drainage outfall, ACCEPT and APPROPRIATE $577,407 tn
addtttonal state funds from the Vtrgtnta Department of Transportatton
(VDOT), and, increase esttmated revenues accordingly to fund drainage
tmprovements tn vartous netghborhoods
Votmg I 0-0 (By ConsenO
Councd Members Voting Ave
Llnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
dories, Reba S McClanan, Robert C Mandtgo, Jr, Mayor Meyera E
Oberndorf Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and
Rosemary Wilson
Councd Members Vottng Nay
None
Councd Members Absent
Wdham W Harrison, ,Ir
January 2, 2001
1
2
3
4
5
6
7
8
9
10
AN ORDINANCE TO ESTABLISH A NEW
CAPITAL IMPROVEMENT PROJECT, CIP #7-
063, NEIGHBORHOOD STORM WATER
INFRASTRUCTURE IMPROVEMENTS, TO
TRANSFER $1,305,292 FROM ANOTHER
PROJECT AND TO ACCEPT AND
APPROPRIATE $577,407 IN ADDITIONAL
STATE FUNDS FROM THE VIRGINIA
DEPARTMENT OF TRANSPORTATION TO CIP
#7-063
11
WHEREAS, the establishment of a new Capital Improvement
12 Program ("CIP") Project #7-063, Neighborhood Storm Water
13 Infrastructure Improvements, will improve drainage to various
14 neighborhoods identified throughout the City, and the identified
15 drainage improvements will require $1,882,699 in funding;
16
WHEREAS, CIP Project #7-015, Lynnhaven Drive Drainage
17 Outfall, has excess funding totaling $1,305,292 that is available
18 to be transferred to fund the identified drainage improvements; and
19
WHEREAS, $577,407 is available from the Virginia
20 Department of Transportation as additional funding for these
21 drainage improvements.
22
23
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE
CITY OF VIRGINIA BEACH, VIRGINIA:
24 1. That Capital Improvement Project #7-063,
25 Neighborhood Storm Water Infrastructure Improvements, is hereby
26 established in the FY 2000-2001 Capital Budget.
27
2. That $1,305,292 is hereby transferred from the Storm
28 Water CIP Project #7-015, Lynnhaven Drive Drainage Outfall, to CIP
29 Project #7-063, Neighborhood Storm Water Infrastructure
30 Improvements, to fund drainage improvements within various
31 neighborhoods.
32
3. That $577,407 is hereby accepted from the Virginia
33 Department of Transportation and appropriated to Project #7-063,
34 Neighborhood Storm Water Infrastructure Improvements, to fund
35 drainage improvements within various neighborhoods.
NEIGHBORHOOD STORM WATER INFRASTRUCTURE IMPROVEMENTS (7-063)
Drainage Project List
Project Name
Ocean Shore Ave.
Long Creek Drive
Elgin Road
Pungo Ridge Court
Ewell Road
Elizabeth River Headwaters
Larkspur Ditch
Redwing Ditch
Bridle Creek Blvd.
Duke of Norfolk Quay
Avalon Terrace Ouffall
Cape Henry Towers Ouffall
Casual Court
Strawbridge Ouffall
South Spigel Drive
Sandbridge Rd/Lotus Creek Rd.
Hindsdale Street Ouffall
North Alanton Drive Outfall
Whiting Lane/Little Island Rd.
West Chubb Lake Ave.
Old Carolina Road
Lawson Forrest
Pembroke Manor
Bellamy Manor
Ben Gun Road
Maryland Avenue
Euclid Road Culvert
Baker Road Culvert
Neighborhood(s)
Lynnhaven Beach
Bay Island
Avalon Terrace
Pungo Ridge Estates
Thoroughgood
Carolanne Farms
Larkspur
Corporate Landing, Redwing Lake, Dunwoody
Rosemont Forrest
Green Hill Farms
Avalon Terrace, Avalon Woods
Lynnhaven Beach
Pine Meadows
Strawbridge, Hunt Club Forrest, White Pines
Trantwood
Lotus Gardens
Pembroke Manor
North Alanton
Sandbridge
Chesapeake Beach
Old Carolina Road
Lawson Forrest
Pembroke Manor
Bellamy Manor, Bellamy Woods
Oceana Gardens West
Shadowlawn
County View Mobile Homes
Airport Industrial Park, Mobile Home Park
TOTAL:
# Homes
400
15
10
30
4O
450
700
60
20
25O
250
200
300
15
40
30
30
40
20
30
350
250
200
10
10
200
200
4200
City of Virpinl~ Be~ch Virginia
Dr.~ fi Project
Project # and Title: 7-063 Neighborhood Storm Water Infrastructure Improvements
--.,
CIP Section: Storm Water . Business Area: Undefined. Pflority:
Total Total Budget .... Unapproprl'~ted__.__S ubsequent Years Future
Programmed App~uprlations Year I Year 2 Year 3 Year 4 Year S Year 6 Funding
Funds To Date FY 200t.42 . FY 2002.43 FY 2003-04 FY 2004.46 FY 2006.46 FY 2006-07 Re(luirement
3,674,032 1.882,699 213,394 27,376 181,$82 462,067 614,000 292,926 0
This project provides annual funding for correcting drainage problems in various established neighborhoods and other areas
that fall beyond the scope of normal maintenance but do not meet the criteria to stand as a separate CIP project. New projects
are added to the need list each year based on reported flooding problems and field maintenance reports. Some projects may be
subject to jurisdictional wetland.
Rainfall causes local flooding in many areas of the City. Storm water infrastructure Improvements will be made to Improve the
drainage system to relieve flooding. Without this project, neighborhood streets will continue to experience localized flooding
during heavy rainfall, restricting neighborhood traffic and emergency veldcle response.
This proJect is a new project and will replace the Various Drainage Improvement project (7-020) which was established in lg85
Basis for Estimate FY 2001-02 FY 2002-03 FY 20034)4 FY 2004.46 FY 2006.46 FY 2006-07
o o o 0 o o
Activity .. From - To Amount Fundin,q Source Amount
Design 07/01-06/07 500,000 ~ota~ Programmed Financing 0
S~te AcquisItion 07101-06107 175,000 Future Funding Requirements 3,574,032
Construction 07/01-06/07 2,574,(332
Conbngencies 07101-06107 325.!;~rJ0_
Total Budgetary Cost Estimate 3,574,03;
Total Non-Programmed Costs 0
Total Programmed Costs 3,574,032
;iscal Year 2001-2002 1 Storm Water
Item V-I. 4.
ORDINANCES/RESOL UTION
- 23 -
ITEM # 4 7584
Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ADOPTED:
Resolutton to confirm a "Sister City" destgnatton between the Borough of
North Down, Northern Ireland, and the Ctt. v of Vtrgtnta Beach, and
further, to invite the MaYor o_f North Down to Vtrgtma Beach for the
stgnlng ceremony on January 23, 2001
Vottng I 0-0 (By ConsenO
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Mandtgo, Jr, Mayor Meyera E
Oberndorf Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and
Rosemary Wdson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, Jr
January 2, 2001
WHEREA&
The Sister City concept was inaugurated by the President of the United States, Dwight D.
Eisenhower, in 1956 to establish greater friendship and understanding between the people
of the United States and other nations through the medium of direct personal contact;
WHEREAS:
All succeeding United States' Presidents have endorsed said program to be conducted for
the broad purposes of the exchange of ideas and people between the citizens of the United
States of America and the people of other nations;
WHEREAS..
To implement this program, the City of Virginia Beach has entered into an International
Friendship to affiliate with the Borough of North Down, Northern Ireland, a seaside city
of similar characteristics and mutual interest; and,
WHEREAS:
The Virginia Beach City Council in behalf of her citizens, does recognize and endorse this
program with the hope that it will lead to a lasting friendship between thepeople of the City
of Virginia Beach and the Borough of North Down in Northern Ireland.
NOW, THEREFORE, BE ITRESOL VED: That the Virginia Beach City Council, in behalf of thepeople of the City of Virginia
Beach, does hereby confirm the "Sister City "designation between the Borough of North Down and the City of Virginia Beach
for the purpose of greater mutual understanding, cultural educational and economic exchanges between the people of these
two great cities. The Mayors, or their designees, shall be the official representatives. The City Clerk is hereby directed to
forward an original of this Resolution to the Mayor and the Borough Council of North Down, the Consulate of Belfast in
Ireland and the British Embassy in the United States.
Given under our hands and seals this Second day of January, Two Thousand One.
Linwood O. Branch, III Margaret L. Eure William W. Harrison, Jr. Barbara M. Henley Louis R. Jones
Reba S. McClanan Robert C. Mandigo, Jr. Nancy K. Parker William D. Sessoms, Jr. Rosemary Wilson
Meyera E. Oberndorf
Mayor
35 4. That estimated revenue from the Commonwealth is
36
hereby increased by $577,407.
37
38
Adopted by the Council of the City of Virginia Beach,
Virginia, on the 2nd day of January , 2001.
39
40
41
42
43
44
45
46
47
48
49
Requires an affirmative vote by a majority of the members
of City Council.
CA7930
F:\Data\ATY\Ordin\NONCODE\neighborhood stormwater.ord.wpd
December 5, 2000
R-4
Approved as to Content:
Mana~ment Se '
Approved as to Legal
Sufficiency:
City Attorney/OffiCe
- 24-
Item V-L 5. a.
ORDINANCES/RES OL UTION
ITEM # 4 7585
Upon morton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Council APPROVED, AS
RE VISED:
Refunds:
Licenses:
$155,15&
~., $40,752.58
Votmg 10-0 (By ConsenO
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
January 2. 2001
EORM NO C & 8 REV
AN ORDINANCE AUTHORIZING LICENSE REFUNDS
UPON APPLICATION OF CERTAIN PERSONS AND
UPON CERTIFICATION OF THE COMMISSIONER
OF THE REVENUE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA:
That the following applications for license refunds, upon cerbficat~on
of the Commissioner of the Revenue are hereby approved
NAME LICENSE DATE BASE INTEREST TOTAL
YEAR PAID
CARTWRIGHT ASSOCIATES INC
FOX & ASSOCIATES PARTNERS INC
GORDON D'ANGELO
IKON OFFICE SOLUTIONS INC
JKL AUTOMOTIVE INC
JOHN TOM INC
KCI USA INC
LARKIN JOSEPH T
LEAST COST FORMULATIONS LTD
LOWRANCE KEITH B
11/08/00 AUDIT 7 95 2 17 10 12
06/29/00 AUDIT 6 38 0 80 7 18
1999-2000 11/06/00 10 00 0 00 10 00
11/01/00 AUDIT 11,099 35 1,825 42 12,924 77
11/01/00 AUDIT 116 47 25 55 142 02
11/07/00 AUDIT 319 12 18 98 338 10
11/03/00 AUDIT 1,688 88 267 30 1,956 18
11/08/00 AUDIT 7 20 3 74 10 94
11/06/00 AUDIT 18 15 3 02 21 17
11/08/00 AUDIT 105 05 3 78 108 83
Com~ss~o"6-er of'the Revenue
City AtTorney's Off, ce
This ordinance shall be effective from date of
adopbon.
The above abatement(s) totaling
C~ty of Virginia Beach on the
15,529.31
were approved by the Council of the
day of JANUARY ,20 O1
Ruth Hodges Smith
City Clerk
FORM NO C A 8 REV 3/86
AN ORDINANCE AUTHORIZING LICENSE REFUNDS
UPON APPLICATION OF CERTAIN PERSONS AND
UPON CERTIFICATION OF THE COMMISSIONER
OF THE REVENUE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
That the following apphcahons for hcense refunds, upon cerhficahon
of the Commissioner of the Revenue are hereby approved
NAME LICENSE DATE BASE INTEREST TOTAL
YEAR PAID
ACCOMODATIONS LTD
CLEARWATER INVESTMENT ASSOC LP
COASTAL TECHNOLOGY INCORPORATED
COMMONWEALTH CONSTRUCTION CO INC
DUDLEY THOMAS G
FLEX GYM INC
GUNTER BROTHERS CONCRETE CO INC
HERITAGE LIGHTING CO INC
HYDRA-HOSE & SUPPLY CO INC
LABIDI EMILY S
LARKIN GIRARD C JR
J SCLEANERS & LAUNDRY INC
MANAGEMENT SERVICES GROUP INC
MANDARIN EXPRESS INC
MARLIN BUSINESS FORMS INC
MARX PETER B
MCGHEE GARY
MID ATLANTIC DAIRY QUEEN INC
NAKED FURNITURE OF TIDEWATER
NEW YORK CARPET WORLD INC
SALMONS J HOWARD JR
SCOTT MALINDA A
TIDEWATER AUTO ELEC SERV LLC
MARLOWE CHRISTOPHER V/TANYA
VOITUS ENTERPRISES INC
WOODEN MAN 108 INC
11124/00 AUDIT 1,811 34 135 80 1,947 14
11122100 AUDIT 316 82 82 65 399 47
11/14/00 AUDIT 25 50 4 34 29 84
11/28/00 AUDIT 517 13 0 00 517 13
11/14/00 AUDIT 1,168 73 194 71 1,363 44
02116/00 AUDIT 6 97 0 77 7 74
11/14/00 AUDIT 45 93 0 00 45 93
11/13/00 AUDIT 162 72 27 12 189 84
11/14/00 AUDIT 454 61 78 45 533 06
11117100 AUDIT 10 00 2 58 12 58
11/28/00 AUDIT 17 09 0 00 17 09
11129/00 AUDIT 150 00 3 00 153 00
11/22/00 AUDIT 722 00 267 44 989 44
11121100 AUDIT 29 93 2 24 32 17
11/16/00 AUDIT 478 07 104 29 582 36
11/28/00 AUDIT 426 37 35 73 462 10
11/29/00 AUDIT 10 00 3 50 13 50
11129/00 AUDIT 285 63 21 41 307 04
11/16/00 AUDIT 370 16 61 67 431 83
11/20/00 AUDIT 3,031 96 248 67 3,280 63
11/21/00 AUDIT 1,630 00 189 18 1,819 18
2000 11/28/00 10 00 0 00 10 00
11/07/00 09/05/25 9,380 15 1,736 47 11,116 62
1999 11/30/00 50 00 0 00 50 00
11/28/00 AUDIT 744 79 46 90 791 69
11/20/00 AUDIT 120 45 0 00 120 45
Comrl~ss~on'er olr~e Revenue
Th~s ordinance shall be effective from date of
adopbon
The above abatement(s) totaling
City of V~rg~ma Beach on the
25,223 27 were approved by the Council of the
2 day of JANUARY ,2001
Ruth Hodges Smith
City Clerk
- 25-
Item V-l. 5. b.
ORDINANCES/RES OL UTION
ITEM # 4 7586
Upon motion by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ~4PPROVED:
Refunds:
Tax: $1,206. 67
Votmg I 0-0 (By Consent)
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, ,Ir and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
`ianuary 2, 2001
AN ORDINANCE AUTHORIZING TAX REFUNDS
UPON APPLICATION OF CERTAIN PERSONS
AND UPON CERTIFICATION OF THE TREASURER
FOR PAYMENT
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA:
That the following apphcauons for tax refunds upon certfficauon of the Treasurer are hereby approved'
Tax Type Ticket Exoneration
NAME Year of Tax Number Number
Date
Paid Penalty Int. Total
B & L, LLC 2000 RE(2/2) 00-005112-4
Brown, Ermon B 2000 RE(½) 00-015416-6 EA
Brown, Ermon B 2000 RE(2/2) 00-015416-6 EA
Brown, Ermon B 1999 RE(½) 99-015275-8 EA
Brown, Ermon B 1999 RE(2/2) 99-015275-8 EA
Brown, Ermon B 1998 RE(½) 98-014849-9 EA
Brown, Ermon B 1998 RE(2/2) 98-014849-9 EA
Comlck, Elomse L (Deceased) 2000 RE('/,) 00-026322-6 EA
Yancey, Georgm R 2000 RE(2/2) 00-026322-6 EA
Tolerton & Brown PC 2000 RE(2/2) 00-025879-5
06/05/00 27 69
12/01/99 25 38
05/11/00 25 38
12/02/98 25 38
06/02/99 25 38
12/02/97 25 38
06/02/98 25 38
01/27/00 492 59
06/05/00 444 25
08/04/00 89 86
TOTAL:
$1206.67
Th~s ordinance shall be effective from date of adopuon.
The above abatement(s) totahng
$1,206.67 were approved by
the Council of the C~ty of V~rgmm Beach
on the 2 day of JANUARY 2001
Ruth Hodges Smith
C~ty Clerk
Cer fie to pa3~5~h~ .
John F Atk~n~bn, Treasurer
Appr Ived as to form.
Leshe L. Lllley, C~ty Attorney
- 26-
Item V-J. 1.
APPOINTMENTS
ITEM # 47587
BY CONSENSUS, Ctty Counctl RESCHEDULED the following APPOINTMENTS
HUMAN RIGHTS COMMISSION
VIRGINIA BEA CH HEAL TH SER VICES AD VISOR Y BOARD
.January 2, 2001
Item V-J.Z
-27-
APPOINTMENTS
ITEM # 4 7588
Upon NOMINATION by Vice Mayor Sessoms, Ctty Counctl APPOINTED
Vicki E. Short
(Family Member)
Unexpired thru 12/31/02
Helen P. Shropshire
3 years
1/1/01 - 12/31/03
COMMUNITY SER VICES BOARD
lin accordance wtth Vtrgtnta State Code, 3g 37 1-195, tnformatton on the
above proposed appomtees ts avatlable tn the Office of the Ctty Clerk]
Vottng 10-0
Counctl Members Voting Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
clones, Reba S McClanan, Robert C Man&go, dr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and
Rosemary Wilson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrison, dr
January 2, 2001
- 28 -
ITEM # 4 7589
Mayor Oberndorf entertatned a motton to permtt Ctty Counctl to conduct tts CLOSED SESSION, pursuant
to Sectton 2 1-344(A), Code of Vtrgtnta, as amended, for the followmg purpose
LEGAL MA TTERS Consultatton wtth legal counsel or briefings by staff
members, consultants, or attorneys pertatmng to actual or probable
httgatton, or other spectfic legal matters requtrtng the provtston of legal
advice by counsel pursuant to Sectton 2 1-344(A)(7)
Contractual Issues - Sportsplex
Stumpy Lake -Ltttgatton
Upon motion by Vtce Mayor Sessoms, seconded by Counctl Lady Parker, Ctty Counctl voted to proceed
tnto CLOSED SESSION (2:10 P.M.)
Vottng 10-0
Counctl Members Vottng Aye
Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
Jones, Reba S McClanan, Robert C Mandtgo, Jr, Mayor Meyera E
Oberndorf, Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and
Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Wtlham W Harrtson, dr
(Time of Closed Session: 2:10 P.M. to 3:11 P.M.)
January 2, 2001
- 29 -
CERTIFICATION OF
CLOSED SESSION
ITEM # 4 7555
Mayor Oberndorf RECONVENED the Formal Sesston tn the tn the Counctl Conference Room, Ctty Hall
Butldtng, on Tuesday, January 2, 2001, at 3 12 P M
Upon motton by Counctl Lady Eure, seconded by Counctlman Branch, Ctty Counctl CERTIFIED THE
CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS.
Only pubhc bustness matters lawfully exempted from Open Meetmg
requtrements by Vtrgmta law were dtscussed tn Closed Sesston to whtch
thts certtficatton resolutton apphes,
AND,
Only such pubhc busmess matters as were tdenttfied tn the motion
convening the Closed Sesston were heard, dtscussed or constdered by
Vtrgmta Beach Ctty Counctl
Vottng 9-0*
Counctl Members Vottng Aye
Lmwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R
clones, Reba S McClanan, Robert C Man&go, dr, Mayor Meyera E
Oberndorf, Nancy K Parker and Rosemary Wtlson
Counctl Members Vottng Nay
None
Counctl Members Absent
Vtce Mayor Wdham D Sessoms and Wtlham W Harrtson, dr
*Verbal Vote
January 2, 2001
CERTIFICATION OF CLOSED SESSION
VIRGINIA BEACH CITY COUNCIL
WHEREAS: The Virginia Beach C~ty Council convened into CLOSED SESSION,
pursuant to the affirmative vote recorded in ITEM # 47589, Page 28, and in accordance w~th the
provis~ons of The Virginia Freedom of Information Act; and,
WHEREAS: Section 2.1-344. of the Code of Virginia requires a certification by the
governing body that such Closed Session was conducted in conformity with Virgima law.
NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach C~ty Council hereby
certifies that, to the best of each member's knowledge, (a) only public bus~ness matters lawfully
exempted from Open Meeting reqmrements by Vlrgima law were/Jiscussed in Closed Session to
which this certification resolution applies; and, (b) only such public business matters as were
identified in the motion convening this Closed Session were heard, discussed or considered by
Virglma Beach City Council.
~Cltth Hodges Smith, MMC y Clerk
January 2, 2001
- 30-
Item V-M. 1.
AD JO URNMENT
ITEM # 4 7556
Mayor Meyera E Oberndorf DECLARED the Ctty Counctl Meettng ADJOURNED at 3:15 P.M.
B~;e~r y O Hooks, CMC
Chtef Deputy Ctty Clerk
Ctty Clerk
Meyera E Oberndorf
Mayor
Ctty of Vtrgtnta Beach
Vtrgtnta
.January 2, 2001
OFFICE OF THE CITY MANAGER
(757} 427-4242
FAX (757) 427-4135
TDD (757) 427-4305
January 31, 2001
MUNICIPAL CENTER
BUILDING 1
2401 COURTHOUSE DRIVE
VIRGINIA BEACH VA 23456-9001
The Honorable Meyera E. Oberndorf
and Members of City Council
Dear Mayor Oberndorf and City Council Members:
Subject: Water & Sanitary Sewer Fund Proposed Sanitary Sewer Increase
Attached is a memo from Clarence Warnstaff, Director of Public Utilities, forwarding to me
responses to several questions raised by City Council at the January 2, 2001 briefing. The
questions required additional research and analysis by staff. The research has been completed, and
responses to Council's questions are attached along with an executive summary of the January 2
briefing.
Also attached is a Policy Report on the "Water & Sanitary Sewer Fund, Programs, Policies, &
Fees" which provides additional information on the recommended sanitary sewer rate increase.
With Pride in Our City,
City ~er
cp
Attachments
Water and Sanitary_ Sewer Fund
Programs, Policies & Fees
January 29, 2001
Response to Council inquiries regarding the Sanitary Sewer Rate Increase Briefing on
January 2, 2001.
le
What impact does pay-as-you-go funding have on the bond rating? How much can
we reduce pay-as-you-go and still maintain our AA rating?
Pay-as-you-go funding represents an important source of funding for the water and sewer
Capital Improvement Program (CIP). This produces a number of benefits for the utility
system including lower debt-to-equity ratios, lower annual debt service payments, and
higher debt service coverages. Bond rating agencies look favorably on pay-as-you-go
funding for capital programs. This leads to higher bond ratings, which in turn results in
lower borrowing costs.
A requirement to provide pay-as-you-go capital funding of at least $2 million per year is
contained in the City's Master Water and Sewer Bond Resolution. Current pay-as-you-go
CIP funding is $3 million per year. The City's financial advisor, Government Finance
Associates (GFA), has recommended that pay-as-you-go funding average at least 25% of
the total funding requirements for the water and sewer capital program. The current
water and sewer CIP is approximately $15 million per year. Therefore, pay-as-you-go
funding should average $3.75 million per year to comply with the GFA recommendation.
This level has been incorporated into the proposed rates.
Pay-as-you-go funding is a major contributor to debt service coverage. Reducing pay-as-
you-go funding will decrease coverage. The recommended pay-as-you-go capital funding
will maintain debt service coverage at approximately the same levels that were
demonstrated to the bond rating agencies last summer, when they upgraded the water and
sewer utility credit to "double A" status. Of all the financial factors evaluated by the
bond rating agencies, debt service coverage was the one area in which the utility was least
strong. If pay-as-you-go funding is reduced, debt service coverage will be lower. This
would not be viewed favorably during the next bond rating sessions, and the double A
credit rating would certainly be at risk.
e
The recommendation is for a rate adjustment in each of the next three years; what
would be the recommended rate adjustment if fully implemented this July?
The recommended rate increases (3 increases over the next 3 years) would result in an
increase of $2.96 per month in three years. The recommended rate for full
implementation July 1,2001 (i.e. one increase) is $2.73, a difference of $0.23 versus the
Page 1 of 4
e
e
e
three rate adjustments. A comparison is shown below:
One Increase
Three Increases Difference
Total Increase $2.73 $2.96 ($0.23)
Total Increase to
Customer over $ years
$163.80 $140.16 $23.64
The advantages of a single rate increase is improved liquidity, improved revenue bond
coverage in the earlier years of the five year forecast, and a lower rate during the later part
of the forecast period.
The disadvantages of a single rate increase is slightly lower bond coverage in the later
years of the five year forecast, larger dollar impact on the customer over the five year
forecast, and lower revenues in the later part of the forecast period (which may result in
the need to seek additional rate increases earlier than the recommended rate adjustments).
How much of the proposed rate increase is related to the Operating Budget and how
much to the Capital Improvement Program?
The annual operating budget for the water and sanitary sewer utility includes all
expenditures of the utility including both operating expenses and capital related
expenditures. Funding for projects in the Capital Improvement Program is the primary
reason for the recommended increases. Approximately 18% of the recommended
increase ($0.52 of $2.96) is needed to support operating expenses and exisung debt
service in the absence of any new bond sales (and the projects that the new bond sales
would have funded). The remaining 82% ($2.44) is for new debt service resulting from
new bond sales necessary to support the CIP.
For the water and sanitary sewer revenues, how much is dedicated to capital
expenditures and how much to operating expenditures?
Water and sanitary sewer expenditures for the current year (FY 2000-01) are estimated to
be $76 million. Operation and maintenance expenditures are estimated to be $45 million
($35 million in Virginia Beach and $10 million embodied in the contract payments to
Norfolk). Capital related expenditures are budgeted at $31 million ($12 million for debt
service, $3 million for pay-as-you-go funding, and $16 million embodied in the payments
to Norfolk).
Is a portion of the rate increase for projects already authorized in the CIP?
Yes, a portion of the increase is for bonds authorized but not yet sold. The recommended
Page 2 of 4
increase (along with current revenues) would support revenue bonds in the amount of $96
million ($34 million currently authorized but not yet sold, and $62 million programmed
in future years of the CIP not yet authorized).
Projects in the CIP are authorized up to 12 to 24 months before construction funding
occurs. After the construction money is spent, it is reimbursed by the proceeds of a bond
sale that may take place 12-18 months after that. The first debt service payment on the
bond issue is not incurred until six months after the issue. The net result of this cycle is
that the debt service requirements for projects authorized in the CIP might trail that
authorization by as much as two or three years.
If staff anticipates that a proposed CIP will require an increase in user charges, then that
information would be included when the proposed CIP is presented to City Council. In
the aftermath of the completion of the Lake Gaston project, it had been anticipated that
new water demand and new connections would increase total water and sewer revenue
and that a rate increase for the currently authorized CIP and bonds would not be needed.
However, these expectations have not materialized - - total water and sewer revenues
have been relatively flat for the last several years.
The only way to completely eliminate the possibility that a rate increase would be needed
to support bonds already authorized, would be to enact a rate increase with the adoption
of each new CIP. However, as explained above, this would create the possibility that
revenues from the rate increase would sometimes not be needed for a number of years.
e
"What will Virginia Beach have to do to comply with the new Sanitary Sewer
Overflow (SSO) regulations?"
The proposed Environmental Protection Agency Sanitary Sewer Overflow (SSO)
regulations will establish national regulations for 1) permitting of SSO's, 2) mandatory
operation, maintenance and renewal programs for sanitary sewer systems, and 3) public
notification and enforcement for systems found to be in violation. The objective of the
regulations, which are proposed as part of the National Pollutant Discharge Elimination
System (NPDES), is to eliminate all SSOs. The EPA rules will focus on operation of the
sewer system and require owners to submit a permit application to state or federal
environmental agencies with a Capacity assurance, Management, Operation and
Maintenance (CMOM) Plan to comply with the SSO rules. The SSO rules are currently
undergoing a 120-day public comment phase, with possible promulgation some 180-days
later. Once promulgated, we would have up to 3-years to submit a permit.
Public Utilities will have to work individually, in concert w~th the Hampton Roads
Sanitation District (HRSD), and with adjacent municipalities to develop the CMOM Plan.
Some of the requirements of the SSO roles are already incorporated into existing efforts
to address aging infrastructure and are reflected in the proposed CIP (system evaluation,
Page 3 of 4
e
monitoring, measurement and program development are part of the Infiltration & Inflow
and Pump Station Modifications programs, aimed at reducing SSO's). However, while
these efforts may place the City a little "ahead of the curve" with respect to the new SSO
rules, they will not fulfill all of the new CMOM Plan requirements. Initial tasks that will
have to be accomplished include inventorying of assets, evaluation of gravity sewers
under streams, condition assessment of the assets, evaluation of reported problem areas
and an audit of current practices (i.e., a gap analysis to determine what changes must be
undertaken) ultimately resulting in development of the CMOM Plan, which will be the
single source document for all SSO matters.
Virginia Beach has a relatively young sanitary sewer system and although it does result in
some SSOs, our frequency is much less than older municipalities. However, as this
infrastructure ages, more funds will have to be shifted to renewal and replacement to
ensure compliance with the SSO rules.
Provide a comparison of water/sanitary sewer charges with other surrounding cities.
A comparison of water and sanitary sewer rates as of January 2001 is shown below:
MONTHLY RESIDENTIAL SERVICE BILLING
(6,000 9allonsl800 cubic feet)
Comparative Water and Sanitary Sewer Rates
as of January 2001
Virginia
Beach
Water Services $24.70
Sanitary Sewer $11.38~
Service
TOTAL MONTHLY $36.08
BILLING
Chesapeake Norfolk Portsmouth Suffolk
$19.60 $21.10 $20.56 $21.00
$ 9.58: $11.043 $11.664 $12.645
$29.18 $32.14 $32.22 $33.64
*Chesapeake's water service availability charge includes a minimum of 300 cubic feet of water.
**Suffolk's water service availability charge includes a minimum of 220 cubic feet of water.
1. Virginia Beach charges a fixed rate of $11.38 for residential service.
2. Chesapeake's sanitary sewer service charge is $5.95 for the first 300 cubic feet and 72.5¢ for each
additional 100 cubic feet.
3. Norfolk charges $1.38 per 100 cubic feet.
4. Portsmouth charges $1.94511100 cubic feet for water and $1.45881100 cubic feet for sanitary sewer.
5. Suffolk charges $1.58 per 100 cubic feet of consumption with a minimum of $6.08.
Virginia Beach has the highest water rates and ranks 3rd in sanitary sewer rates. For the combined
bill, Virginia Beach has the highest billing. Recently, the Virginian P~lot reported that Chesapeake
City staff have recommended a 43% increase ~n water rates over the next three years; the total
billing was reported to be $36.65 in FY 2002; $42.05 tn FY 2003; and $45.75 in FY 2005.
Page 4 of 4
WA TER & SANITARY SEWER FUND
PROGRAMS, POLICIES & FEES
PROPOSED SANITARY SEWER RATE INCREASE
The Department of Public Utilities operates and maintains the City-owned water
distribution and sanitary sewer collection utility systems serving the urban areas of
Virginia Beach. The mission is to provide quality public water and sanitary sewer
services at the lowest practical cost and to plan, build, operate and maintain facilities
that meet community needs, environmental responsibilities and regulatory
requirements.
The City's water and sanitary sewer system is a self-sustaining operation, and
operated on an enterprise fund accounting basis. Rates and user charges are
adjusted when it is necessary to insure that revenues will be sufficient to cover the
costs of operations and maintenance of the system as well as debt service on all water
and sewer system bonds. The water and sewer system does not receive property tax
or other tax receipts to subsidize operations.
It is recommended that sanitary sewer charges be increased on July I of each of the
next three fiscal years beginning in 2001. The total increase in water and sewer
charges for a typical residential customer after all three increases are in place would
be $2.96 per month as shown below (based upon an average usage of 6,000 gallons
per month):
Monthly Billing Proposed Monthly Total Monthly Total Monthly
for Billing Increase Increase as a
WaterlSanitary for in Dollars Percentage of
Sewer WaterlSanitary ($) Current Charges
(current) Sewer
(as of July 1,
2004)
I I I I
The impact on the average residential water and sewer customer is an increase of
$0.99 per month (per year), or 2. 7% per year. The cumulative impact of all three
increases in the average residential water and sewer bill would be 8.2%. The last
sanitary sewer rate increase occurred in 1992, nine years ago.
The proposed adjustment (along with current revenues) would support revenue bonds
to fund the Water and Sanitary Sewer Capital Improvement Program (ClP). The
projects listed in the approved CiP include 65 water projects at a cost of $34 million
and 54 sanitary sewer projects at a cost of $63 million. Two thirds of the CIP is
dedicated to the sanitary sewer program and two thirds of the sanitary sewer program
ls devoted to extending service to existing neighborhoods using septic tank systems
and renewing and replacing aging infrastructure in existing neighborhoods.
With the proposed rate adjustments, the following outcomes can be achieved:
le
m
e
o
e
Continue City Council's long standing policy to extend public water and
sanitary sewer service to existing neighborhoods
Address aging infrastructure by rebuilding portions of the sanitary sewer
system
Support economic development by continuing to build the backbone
water and sanitary sewer system
Continue compliance with unfunded federal mandates
Ensure financial health to maintain the AA water and sanitary sewer
bond rating
Maintain quality customer service
If a policy decision is made to defer increasing rates, or not adjust rates as
recommended, or to not increase rates altogether, it will be necessary to dramatically
scale back the Capital Improvement Program. This would significantly impair and/or
preclude the City's ability to achieve the outcomes listed above, especially one and
two.
For additional information, please ca//the Public Utilities Department at 427-4171 or
please visit the Public Utilities web site at www. virqina-beach, va. us/dept/putility.
January 29, 2001
Policy Report
WATER & SANITARY SEWER FUND
PROGRAMS, POLICIES, & FEES - 01/31/01
INTRODUCTION
The City's Water and Sanitary Sewer Utility is a cdtical component of Virginia Beach's strategic
plan to achieve the outcome "Community For A Lifetime."
Water and sanitary sewer service are core services that are fundamental to achieving 1) Economic
and Social Prosperity, and 2) Healthy, Safe, and Attractive Surroundings. Outcome Strategy #35
states that the City will "continue to develop and maintain our publicly owned utility systems and
services to serve the needs of our community." This can be achieved only with continued focus on
existing utility programs, maintaining financial health of the Water and Sanitary Sewer Fund, and
creating a future that emphasizes effectiveness, efficiency, and quality customer service.
It is recommended that monthly sanitary sewer service charges be increased in order to provide
sufficient revenues to address aging infrastructure, meet current and future unfunded federal
mandates, and maintain both the "double A" credit rating and the financial health of the water and
sanitary sewer enterprise fund. This policy report will delineate existing departmental goals and
objectives, summarize the water and sanitary sewer Capital Improvement Program (CIP), identify
the proposed rate adjustments, compare Virginia Beach water and sanitary sewer charges to those
of our neighbor jurisdictions, and assess the impacts if rates are not adjusted.
EXECUTIVE SUMMARY
It is recommended that sanitary sewer charges be increased on July 1 of each of the next three
fiscal years beginning in 2001. The total cumulative water and sanitary sewer service charge
increase for a typical residential customer after the third year would be $2.96 per month as shown
below:
Monthly Billing
for
Water and Sanitary
Sewer Service
(current)
Proposed Monthly
Billing
for
Water and Sanitary
Sewer Service
(as of July 1, 2004)
Total Monthly
Increase
in Dollars
($)
Total Monthly
Increase as a
Percentage of
Current Charges
$36.08 $39.04 I $2.96 8.2%
The impact on a typical residential water and sanitary sewer customer would be an additional
charge averaging $0.99 per month (per year), or an average increase of 2.7% per year in the water
and sanitary sewer bill. The cumulative increase in the water and sanitary sewer bill after three
years, would be 8.2%. The last sanitary sewer rate increase occurred nine years ago, in 1992.
The proposed adjustment (along with current revenues) would support revenue bonds in the
amount of $96 million ($34 million currently authorized through FY 2001, but not yet sold, and $62
million programmed in the CIP for FY 2002 through FY 2006). The projects listed in the ClP include
65 water projects and 54 sanitary sewer projects. Two thirds of the CIP is dedicated to the sanitary
sewer program and two thirds of that is dedicated to extending sewer service to existing
neighborhoods using septic tank systems and rehabihtation of aging sanitary sewer infrastructure
in existing neighborhoods.
The proposed rate adjustments will allow the following outcomes to be achieved:
.
.
.
The City Council's long standing policy of extending public water and sanitary sewer
service to existing neighborhoods which desire and/or need it, will be continued
Aging infrastructure issues will be addressed by rebuilding portions of the sanitary
sewer system
Economic development will be supported by maintaining the water and sanitary
sewer system so that reliable service is available for economic development projects
.
.
Existing and pending unfunded federal mandates will be met
The financial health and AA (double A) credit rating of the water and sanitary sewer
system will be maintained
Quality customer service to Virginia Beach residents will be maintained
If a policy decision is made to defer increasing rates, not increase rates as recommended, or not
increase rates at all, it will be necessary to dramatically curtail the Capital Improvement Program.
Such a reduction in the capital program would significantly impact the outcomes listed above,
especially numbers one and two.
BACKGROUND
The Department of Public Utilities operates and maintains the City-owned water distribution and
sanitary sewer collection utility systems serving the urban areas of Virginia Beach. The mission
is to provide quality public water and sanitary sewer services at the lowest practical cost and to
plan, build, operate and maintain facilities that meet community needs, environmental
responsibilities and regulatory requirements.
The City's water and sanitary sewer system is a self-sustaining operation, and operated on an
enterprise fund accounting basis. Rates and user charges are adjusted when it is necessary to
~nsure that revenues will be sufficient to cover the costs of operations and maintenance of the
system as well as debt service on all water and sanitary sewer system bonds. The water and
sanitary sewer system does not receive property tax or other tax receipts to subsidize operations.
Revenues from water and sanitary sewer charges are reserved for the payment of Water and
Sanitary Sewer Fund obligations and are not used for non-water or non-sewer related purpose.
Payments (or transfers) made from the Water and Sanitary Sewer Fund to the General Fund are
stdctly for the purpose of reimbursement for services provided, such as office rental, building
maintenance, landscaping, Treasurer's support, etc.
CONSIDERATIONS
Major objectives of the water and sanitary sewer utility are described below:
Maintain full compliance with all state and federal laws and regulations
The utility systems are in compliance with all state and federal standards. The federal Safe Drinking
Water Act authorizes the EPA to develop, implement, and enforce drinking water standards.
Additionally, the Clean Water Act authorizes the EPA to develop, implement, and enforce standards
for wastewater collection and treatment. New unfunded federal regulations that increase the cost
of providing service continue to be promulgated.
Extend the public utility system to serve existing neighborhoods that use wells and septic tanks
City Council adopted a resolution in 1982 setting forth the policy for the extension of the public
water and sanitary sewer systems into neighborhoods developed prior to service availability. This
resolution formally established a City Council policy that had been in effect since the 1960's. Since
1971, 131 water and 155 sanitary sewer neighborhood projects have been completed at a
combined cost of $168 million ($235 million in Year 2000 dollars).
Design and build major utility facilities (the backbone system) to support neighborhoods and
economic development
Cdtical components of the water system have recently been completed. With the completion of the
Lake Gaston Water Supply Project and significant improvements to the Norfolk Water System in
accordance with the Water Services Contract, the capacity and reliability of the water supply and
distribution system are at the highest levels that they have ever been in the history of this City. The
Lake Gaston Water Supply is expected to meet water demands for at least the next 20 years.
The CIP includes projects to ensure that adequate water distribution system capacity and sanitary
sewer system capacity is available to support new residential customers and economic
development.
Acquire privately owned utilities to achieve uniform service and rates to all utility customers
This program was completed in 2000 with the acquisition of the last remaining private utility, the
Indian River Water Company (IRWC). IRWC's purchase provided an integrated water utility system
for the City and satisfied a goal made 23 years earlier by the 1977 Mayor's Committee for "...a
coordinated, economical system in the best interest of all citizens." Since 1977, the City has
acquired four other private water utilities serving an estimated 2,000 customers and six sanitary
sewer utilities serving an estimated 20,000 customers.
Invest in aging infrastructure to ensure reliable service and regulatory compliance
City Council adopted the Maintenance and Repair of Aging Infrastructure Policy on September 7,
1999. Approximately 50 percent of the Sanitary Sewer Capital Improvement Program is devoted
to aging infrastructure; additional information is included in the ClP section of this policy report.
Operate and maintain the utility system to ensure reliable and dependable service
The water and sanitary sewer utility provides service to customers seven days a week, 24 hours
per day. The water system and the sanitary sewer systems are operated and monitored
continuously. Customers receive water and sanitary sewer service under all conditions and at all
times (nights, weekends, and holidays). Recently, Alvord, Burdick & Howson's feasibility study
(prepared for the $40 million revenue bond sale, last summer) concluded that the system is well
managed and the facilities are maintained in excellent condition.
Ensure financial health to obtain the highest possible bond rating to produce cost savings for
customers
When the City of Virginia Beach sold $40 million of water and sanitary sewer system revenue
bonds in July 2000, it earned the highest credit ratings ever for its water and sanitary sewer bonds
from the three major rating agencies.
Moody's Investor Service rated the City's new bonds Aa3 (double A three), and upgraded the rating
on existing water and sanitary sewer debt from A1 to Aa3. Standard & Poor's rated the new bonds
AA (double A) and also upgraded its rating on existing water and sanitary sewer debt to AA from
A+. In its first rating ever for Virginia Beach water and sanitary sewer bonds, Fitch IBCA rated both
the new bonds and the existing debt AA+ (double A plus), which is just one notch below Fitch's
highest credit rating.
These ratings placed the July 2000 water and sanitary sewer bond sale in the "AA" category, the
next to highest classification. However, a post sale analys~s indicated that the City's bonds actually
competed very favorably against AAA (triple A) bond sales and indices on that day. Certainly, the
most prominent factor in the improved credit ratings was the completion of the Lake Gaston Water
Supply Project. Other significant factors included Iow debt-to equity ratios, the capacity of the utility
to cash finance the Lake Gaston Project, a manageable Capital Improvement Program combined
with an aggressive pay-as-you-go capital funding policy, progressive policies on infrastructure
maintenance, and the City of Virginia Beach's reputation for conservative and disciplined financial
management.
Provide quality customer service
The utility provides quality customer service through proper maintenance of customer accounts,
bi-monthly meter reading, prompt and accurate bill-rendering and payment processing, and timely
responsive service to customer inquiries. Accurate maintenance of customer accounts is
paramount to the financial integrity of the utility fund, which is operated on a seif-susta~ning basis
and pays water and sanitary sewer fund obligations with revenues generated from water and
sanitary sewer charges.
The Capital Improvement Program
The utility projects listed in the FY 2001 - 2006 CIP includes 65 water projects at a cost of
$34,095,000 and 54 sewer projects at a cost of $62,758,026 for a six-year period total of
$96,853,026. The average annual funding for the water and sanitary sewer capital program is
about $16 million per year.
Water and sanitary sewer projects identified in the CIP are necessary to provide adequate public
sanitary sewer collection services and safe potable water, including water for fire protection, to the
residents and businesses of Virginia Beach. The pdmary components of the water and sanitary
sewer CIP include neighborhood projects, rehabilitation of aging infrastructure, system
enhancements, and VDOT/Highway coordination projects. CIP projects are identified using long
range planning tools, as well as coordination with other City departments, neighboring cities, state
and federal agencies, and the Hampton Roads Sanitation Distdct (HRSD).
Annual reviews and updates to the water and sanitary sewer CIP assure that only necesary
projects are included, that new or updated state and federal regulations are incorporated in the
projects, and that budgets are revised to reflect market trends. A City project manager is assigned
to each ClP project and required to provide monthly cost and schedule updates. This process
results in the ability to prioritize projects so that funding is adjusted and to accelerate or delay
projects to meet the changing environment of the City.
The Water and Sanitary Sewer FY 2001-2006 CIP is summarized below:
Number of Projects
Tw3e Water Sewer Total %
Neighborhood ProJects 12 15 27 23
~ Aging Infrastructure 7 15 22 18
Projects
System Enhancements 27 13 40 34
VDOT/Highway 19 11 30 25
Coordination
Total I 65 I 54 I 119 I 100% I
Six-Year
Pro.qram
Estimated Cost
Water $34,095,000 35
Sanitary Sewer $62,758,026 65
T oral $ 96,853,026 1 O0 %
ClP - Means of Financing
The six-year CIP (FY 2001 to FY 2006) is financed as shown below:
I
Six Year CIP Cost: I $96,853,026
Means of Financing:
*Revenue Bonds $70,195,0004
*Pay-As-You-Go $23,448,026
*HRSD $ 3,210,000
TOTAL $96,853,026
There are $34 million of bonds (through Fiscal Year 2001) that have not been sold. These bond
authorizations provide funding for CIP projects previously authorized, and in various stages
(completed, under construction, or under design). Future capital needs for the water and sanitary
sewer system for the six-year period average $16 million annually, including pay-as-you-go funding
which has been increased from $3.0 million to $3.75 million for fiscal years 2002 through 2007.
Recommended Rate Increase
The City is required by the City's bond resolutions, among other provisions, to establish rates
sufficient to cover operations and maintenance as well as debt service on the water and sanitary
sewer general obligation and revenue bonds.
The consulting engineering firm of Alvord, Burdick & Howson ("AB&H") is the City's water and
sanitary sewer rate consultant. AB&H regularly examines the books and records of the Department
of Public Utilities and conducts a physical inspection of the operating facilities, in order to develop
recommendations for adequate water and sanitary sewer rates. AB&H has conducted a cost of
service study and has developed recommended rates for fiscal years 2002 through 2006. The
analysis included a projection of revenues and expenditures for a period of five fiscal years from
the current year.
The analysis by AB&H also included an allocation of total enterprise fund costs between the water
and sanitary sewer utilities. The analysis indicated that the distribution of water and sanitary sewer
revenues does not match the distribution of water and sanitary sewer expenses. Water revenues
are partially subsidizing sewer expenses. With adoption of the recommended sewer rates, the
imbalance will be reduced to approximately 4%, which is not considered significant for a combined
water and sanitary sewer utility.
The AB&H rate study recommends that the existing sanitary sewer fee, currently $11.38 per month,
be increased 24% over a period of three years (8% each year, on July 1 of 2001, 2002 and 2003).
As indicated above, funding for the Capital Improvement Program is the primary driver behind the
recommended increases. No water rate increases are projected during the five year forecast
period (2002 through 2006). The proposed sanitary sewer rate increases are as follows:
~$8 million in revenue bonds authorized with the adoption of the FY 2001 CIP; $62
million programmed for FY 2002-2006
Effective Date
Typical Single Family Monthly
Sanitary Sewer Service Charge
(existing charge = 11.38 per month)
July 1,2001 $12.29
July 1,2002 $13.27
July 1, 2003 $14.34
Impact on a Typical Water and Sanitary Sewer Bill
At present, and under the proposed rates, a single family residential customer consuming 6,000
gallons in one month would receive a monthly billing as follows:
Current 7-1-2001 7-1-2002 7-1-2003
Water Service $24.70 $24.70 $24.70 $24.70
Sanitary Sewer $11.38 $12.29 $13.27 $14.34
Service
Total Due for Water & $36.08 $36.99 $37.97 $39.04
Sanitary Sewer
For the typical water and samtary sewer residential customer, the proposed increase in monthly
billing would be as follows:
Fiscal Year Amount % Cumulative Cumulative
Amount %
2001 $0.91 2.5 $0.91 2.5
2002 $0.98 2.6 $1.89 5.2
2003 $1.07 2.8 $2.96 8.2
The total amount of the increase for the combined water and sanitary sewer billing over three years
would be $2.96 (8.2%); commercial rates would also increase by a comparable amount.
The recommended rates would provide sufficient revenues (along with the current revenues) to
support the issuance of $96 million in water and sanitary sewer revenue bonds; $34 million
currently authorized but not issued and $62 million programmed in the ClP for FY 2002 through FY
2006.
Comparison of Rates Within Region
The following table compares current ublity rates in V~rg~n~a Beach with those of our neighbor
junsdictions. The calculations are based upon water consumption of 6,000 gallons in nominal
monthly bilhng pedod.
Comparative Water and Sanitary Sewer Rates
as of January 1, 2001
Virginia Chesapeake Norfolk Portsmouth Suffolk
Beach
Water $24.70 $19.60 $21.10 $20.56 $21.00
Service
Sanitary $11.38 $ 9.58 $11.04 $11.66 $12.64
Sewer
Service
Total $36.08 $29.18 $32.14 $32.22 $33.64
Monthly
Billing
PUBLIC INFORMATION
Adoption of new sanitary sewer rates requires the adoption of an ordinance by City Council and a
public hearing. It is recommended that public headngs be conducted and that a formal
presentation be provided to City Council.
ALTERNATIVE COURSE OF ACTION
As noted above, the cost of service analysis identifies the need to increase sanitary sewer rates.
If a policy decision is made to not increase rates, or not increase rates as recommended, or to
defer increasing rates, it will be necessary to dramatically reduce the number of capital projects
currently included in the CIP for FY 2001-2002, and beyond.
RECOMMENDATION
It is recommended that sanitary sewer rates be increased to:
.
.
.
Continue City Council's long standing policy to extend public water and sanitary
sewer service to existing neighborhoods.
Address aging infrastructure by rebuilding portions of the samtary sewer system
Support economic development by continuing to build the backbone water and
sanitary sewer system
Continue compliance with unfunded federal mandates
Ensure financial health to maintain the AA water and sanitary sewer bond rating
Maintain quality customer service
It is recommended that an ordinance be submitted to City Council, as part of the FY 2002 Budget,
to adopt new sanitary sewer rates, consistent with the above, effective July 1 of 2001, 2002, and
2003.
8
Prepared by: ~.~
Clarence Warnstaff, Dire7 of~ublic Utilities
?-- $1--~f
Date
Reviewed by:
C. Oral Lambert Jr., Chief Operating Officer
7~,1.Ol
Date
Attachment: Recommended Monthly Rates
TABLE 28 (1 of 2)
RECOMMENDED WATER AND SEWER RATE INCREASES
CITY OF VIRGINIA BEACH, VIRGINIA
WATER MINIMUM SERVICE AVAILABIUTY CHARGES (RECOMMEND NO CHANGES)
PRESENT
METER SIZE MONTHLY
2 3/4 4.35
3 1 6.25
4 1-1/2 10.96
5 2 16.60
6 3 29.75
7 4 48.50
8 6 96°00
9 8 152.00
10 10 218.00
11 12 4O6.00
WATER RATES 2000-01
12 Pl'ell~ Wat,r Rate $3 55
13 Rec. Incremental Inore~e 0.00
14 Rec. Curnul~rve Inorea~ 0 00
15 Rec. Watar Rnt~ ($/1,000 Gal)
RECOMMENDED ~ATES
NAVY VVHEEUNG CHARGE {RECOMMEND NO CHANGES)
pr'~sent Rate
16 VVheei~ Rsd~ (per 1,000 Gal.) $0.44
SEWI~R MAINTENANCE~ CHARGES
17 Re(=. Annual Percent Sewer Rate Increase
18 Rec. Cumulatwe Percent Sewer Rate Incr.
Over Prele~ Rntl~
19 .. Slngt~anY~ly ~:
b. S~ with two (2) or more fan~
rmxtentml uni~, and tmier parks:
20 1. Fimtur,tortraile~.
21 2. Each additional unit or trader:
PRESENT
MONTHLY
RATE
2(X)O-01
RECOMMEN[)ED MONTHLY RATES
0.00% 8.00~ 8.00~ 8.00~ 0 00~ 0.00%
0.00% 8.00~ 16.64% 25.97% 25 97% 25.97%
$11.38 $12.29 $13.27 $14 34 $14 34 $14.34
11 38 12.29 13.27 1434 1434 1434
8.54 9.22 9.96 10 76 10.76 10.78
RECOMMENDED WATER AND SEVVER RATE INCREASES
CITY OF VIRGINIA eEACH, VIRGINIA
$1~vvI~R MAINTENANCE CHARGES
o. l-lotMm and
PRESENT
MONTHLY
RATE
1. Far the flint room prowled for __nc~__~
22 panty: $11.38
23 2. Each ~ room for occupancy. 4.57
24 1. For the flint apace provided:
25 2. Foreaohaddition,l~~:
RECOMMENDED MONTHLY I~ATES
2OO14= ;i=02~ ~ 2004~ 200S~
$1Z29 $13.27 $14 34 $14.34 $14.34
4.94 5.33 5.76 5.76 5.76
11.38 12.29 13.27 14.34 1434 14.34
4.57 4.94 5.33 5.76 5.76 5.76
a. For .1 nenme~m~al ua~ in which ~
ia ai~o auppliecl publio warm' ~, the
eewer ~ chmge at~dl be de-
·mugh wh~h waMf i ~, as p~
Tap Size
27 3/4 inch
28 1 inch
29 1 1/2 inch
30 2 inch
31 3 inch
32 4 inch
33 6 inch
34 8 inch
35 10 inch
38 12 inch
12.29 13.27 14.34 14.34 14.34
37 1.0-4 c~nmode~:
38 2. Each~cammodeoverfour(4)-
b. For all n(xlreeident/l u~M ,n wh.:h pub-
b= watlr eervice i not ivailble, the
rnonthly ch~ge M be a~ follo~:
11.43 12_34 13.33 14.40 14.40 14.40
14.43 15.58 16.83 18.18 18.18 18.18
28.57 30.86 33.32 35. gg 35.gg 3~.gg
43.3 48.76 50 51 54.55 54 55 54.55
85 91.80 99.14 107.08 107.08 107 08
142 153.36 165.63 178.88 178.88 178.88
285 307 80 332.42 359 02 359.02 359 02
662 714.96 772.16 833.93 833.93 833.93
1,095.00 1,18Z60 1,277 21 1,379 38 1,379.38 1,379.38
1,88000 1,792.80 1,936.22 2"091 12 2"091.12 2.091 12