JUNE 22, 1993 MINUTESit_.v o£ Vir ir
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL
MAYOR MEYERA E OBERNDORF, At Large
VICE MAYOR WILLIAM D SESSOMS, JR At Large
JOHN A BAUM, Black~ater Borough
LINWOOD 0 BRANCH III Vtrgmta Beach Borough
JAMES W BRAZIER, JR, Lynnhaven Borough
ROBERT W CLYBURN, Kempswlle Borough
ROBERT K DEAN, Pnncess Anne Borough
LOUIS R JONES, Bays~de Borough
PAUL J LANTEIGNE, Pungo Borough
JOHN D MOSS, At-Large
NANCY K PARKER, At Large
.[AMES K SPORE, Cdy Manager
LESLIE I LILLEY, C~tv Attorney
RUTH HODGES SMITH, CMC / AAE, City Clerk
CITY COUNCIL AGENDA
281 Cl'l Y tttLL BUILDING
~dl ~NI( /P AL CE~iT ER
VIR(,INIA BEA( H VIRGI~;I -t 21450 9oO5
{804,427 430 ~
JUNE 22, 1993
CITY MANAGER'S BRIEFINGS
- Council Chamber -
Ao
REFUNDING CERTIFICATES OF PARTICIPATION - 1993 RESULTS
David Klinges, Jr., Lehman Brothers
Amanda Delk, Lehman Brothers
B.
INVENTORY REPORT AND STRATEGIC PLAN- HISTORIC RESOURCES
Robert J. Scott, Director of Planning
Mac Rawls, Director of Museums
Robert A. Davis, Planner
Mark Reed, Administrator, Francis Land House
Kim Williams, Traceries
3:30 PM
II.
INFORMAL SESSION
Ao
Bo
CALL TO ORDER - Mayor Meyera E. Oberndorf
ROLL CALL OF CITY COUNCIL
C. RECESS TO EXECUTIVE SESSION
Council Chamber -
4:30 PM
II1.
FORMAL SESSION
- Council Chamber -
A.
Be
C,,
CALL TO ORDER - Mayor Meyera E. Oberndorf
INVOCATION: Reverend Thomas Reynolds
Charity United Methodist Church
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
D. ELECTRONIC ROLL CALL OF CITY COUNCIL
E. CERTIFICATION OF EXECUTIVE SESSION
F. MINUTES
6:OO PM
1. INFORMAL & FORMAL SESSIONS - June 8, 1993
G. PUBUC HEARING
1. ClGARE'I'rE TAXATION - Proposed Increase of Local Tax
H. ORDINANCES/RESOLUTIONS
I ·
Ordinance to AMEND and REORDAIN Section 35-207 of the Code of the City of Virginia
Beach, Virginia, re increase of local tax on Cigarettes.
(Sponsored by Councilmen James W. Brazier, Jr. and John D. Moss)
.
Ordinance to AMEND and REORDAIN Chapter 21, Division 3 of the Code of the City of
Virginia Beach, Virginia, re tow trucks.
.
Ordinance to AMEND and REORDAIN Chapter 30, Article III of the Code of the City of
Virginia Beach, Virginia, re erosion, sediment control and tree protection.
.
Ordinance to AMEND and REORDAIN Ordinance No. 93-2212F re conservation of the
public water supply pending completion of Lake Gaston Pipeline Project.
.
Ordinance approving and accepting terms and conditions of water supply and water
services contracts with the City of Norfolk; authorizing and directing the City Manager to
execute, on behalf of the City of Virginia Beach, such contracts upon subsequent approval
of an appropriate budget amendment providing for the purchase of water from the City of
Norfolk; and, to AMEND and REORDAIN Section 37-47 of the Code of the City of Virginia
Beach, Virginia, re water usage rates.
.
Ordinance to authorize consolidation of landscape maintenance offices, ADD fifty-two
(52) grounds services unit positions to the FY 1993-1994 City Operating Budget and
delete these same positions from the FY 1993-1994 School Operating Budget.
.
Ordinance to AMEND and REORDAIN Chapter 39 of the Code of the City of Virginia
Beach, Virginia, re Storm Water Management Utility.
8. Resolution to adopt a Storm Water Management Utility-Fee Adjustment Policy.
.
Resolution approving the issuance of Refunding Revenue Bonds (Beach-Oxford
Associates Project) in behalf of the Suffolk Redevelopment and Housing Authority, not to
exceed $18,650,000.
CONSENT AGENDA
All matters listed under the Consent Agenda are considered in the ordinary course of business
by City Council and will be enacted by one motion in the form listed. If an item is removed from
the Consent Agenda, it will be discussed and voted upon separately.
.
Resolution authorizing City Manager to enter into agreement with the City of Chesapeake
regarding usage of the Tidewater Detention Home, consistent with the FY 1993-1994
Operating Budget.
.
Ordinance to AMEND and REORDAIN Sections 4-85, 4-87.1, 4-88, 4-90, 4-91, 4-92,
4-92.2, and 4-93 of the Code of the City of Virginia Beach, Virginia, and ADD a new
Section 4-89.1 re bingo games.
.
Ordinance to AMEND and REORDAIN Section 21-205 of the Code of the City of Virginia
Beach, Virginia, re permit fees.
.
Ordinance to AMEND and REORDAIN Section 38-1 of the Code of the City of Virginia
Beach, Virginia, re carrying concealed weapons.
.
Ordinance authorizing the City Manager to execute an Inter-Jurisdictional Agreement
for the Comprehensive Regional Information Management and Exchange System
(CRIMES);
AND,
Ordinance to TRANSFER $10,715 within the FY 1992-1993 DEA Seized Special
Revenue Fund to provide Virginia Beach's portion of the FY 1992-1993 State Criminal
Justice Grant Match and to provide next year's Grant Match by Transferring $28,125
from within the FY 1993-1994 Police Department's operating budget.
.
Ordinance to ACCEPT and APPROPRIATE grants of $19,977 to the Department of
Mental Health, Mental Retardation, and Substance Abuse re services to substance
abusing women and their children and communications training for handicapped
clients.
.
Ordinance to ACCEPT and APPROPRIATE a State grant of $36,750 and TRANSFER
$12,250 for the local match from the Department of Sheriff and Corrections to the
Department of Mental Health, Mental Retardation, and Substance Abuse FY 1993-1994
operating budget re substance abuse treatment for women in the City Jail.
.
Ordinances to APPROPRIATE funds of the General Fund Balance to provide interest-free
loans for the purchase of replacement ambulances:
a. Davis Corner Volunteer Fire Department and Rescue Squad, Inc.
b. Plaza Volunteer Rescue Squad $50~00
$55,000
.
Ordinance to ACCEPT and APPROPRIATE $950 from the Virginia Department of Motor
Vehicles (DMV) to reimburse the Police Department for the design and installation of
"Buckle Up" reminder signs.
10.
Ordinance to ACCEPT and APPROPRIATE $27,053 grant from the State Department of
Criminal Justice re funding support to the Commonwealth's Attorney's Victim Witness
Program.
11.
Ordinance to APPROPRIATE approximately $5,500 estimated revenue of interest earned
on Community Diversion Incentive deposits.
12.
Ordinance to TRANSFER $38,611 within the Department of Mental Health, Mental
Retardation, and Substance Abuse FY 1993-1994 operating budget to continue a
federally funded position re services for developmentally delayed infants.
13.
Ordinance to Charge-Off delinquent accounts of the Department of Mental Health
Substance Abuse totaling $435,571.59.
14. Ordinance authorizing Tax Refunds in the amount of $3,089.31.
J. PUBUC HEARING
1. PLANNING BY CONSENT
a.
Application of ELVA B. LEE for a Variance to Section 4.4(b) of the Subdivision
Ordinance which requires that all lots created by subdivision meet all requirements
of the City Zoning Ordinance and Section 4.4(d) which requires that all lots created
have direct access to a public street, at 1573 Princess Anne Road (PUNGO
BOROUGH).
Recommendation:
APPROVAL
b.
Application of CARROL S. GILES for a Conditional Use Permit for an automobile
re.oair garage (addition) on the South side of Harpers Road, 1.3 miles Southwest
of Oceana Boulevard (1741 Harpers Road), containing 2.25 acres (PRINCESS
ANNE BOROUGH).
Recommendation:
APPROVAL
C.
Application of BAYMARK CONSTRUCTION CORP. for an amendment to the
Courthouse Estates Land Use Plan on the South side of North Landing Road and
the North and South sides of Indian River Road, East of Two Farms Lane,
containing 402.4 acres (PRINCESS ANNE BOROUGH).
Recommendation:
APPROVAL
2. PLANNING
a.
Application of VIRGINIA BEACH FISHING PIER, INC. for enlargement of a
nonconforming use to construct an open deck at 1413 Atlantic Avenue (Ocean
Eddie's) (VIRGINIA BEACH BOROUGH).
b.
Ordinance authorizing modification of the Franchise Agreement between the City
of Virginia Beach and the owners of the 15th Street Fishing Pier to increase the
size of the restaurant.
C.
Application of MCSHORT, INC. for enlargement of a nonconforming use to move
seven (7) mobile units and provide open space on the adjacent parcel at 959
Virginia Beach Boulevard, containing 1.3 acres (LYNNHAVEN BOROUGH).
Recommendation:
APPROVAL
d.
Petition of COLUMBUS CENTER ASSOCIATES for the discontinuance, closure
and abandonment of a portion of Columbus Street beginning at the Eastern
boundary of Constitution Drive and running in an Easterly direction a distance of
650 feet, being 50 feet in width and containing 33,854 square feet (BAYSIDE
BOROUGH).
Deferred Indefinitely:
Deferred for Compliance:
July 9, 1990
December 15, 1992
Recommendation:
ADDITIONAL 180 DAY DEFERRAL
e,.
Application of ALBERMARLE TIMBER, INC. for a Conditional Use Permit for a
firewood .ore.~aration facility in the Agricultural District on the East side of Princess
Anne Road, 800 feet more or less North of Indian River Road (1824 Princess
Anne Road), containing 52 acres (PRINCESS ANNE BOROUGH).
Recommendation:
APPROVAL
Application of R. H. ROSE for a Conditional Change of Zoning District
Classification from I-1 Light Industrial District to I-;~ Heavy Industrial District 1100
feet more or less Southeast of intersection of Southern Boulevard and Sykes
Avenue, containing 3 acres (LYNNHAVEN BOROUGH).
Recommendation:
NO ACTION REQUIRED
g.
Applications of TIDEWATER WESTMINSTER HOMES, INC., re property at
Southwest corner of Shore Drive and Sunstates Court, containing 1.819 acres
(LYNNHAVEN BOROUGH):
Conditional Change of Zoning District Classification from B-2 Community Business
District to B-4 Resort Commercial District;
AND,
Conditional Use Permit for a home for the aged.
Deferred Indefinitely: May 11, 1993
Recommendation: APPROVE BOTH APPLICATIONS
K. UNFINISHED BUSINESS
L. NEW BUSINESS
1. COUNCIL-SPONSORED ITEMS:
a.
Ordinance to AMEND and REORDAIN Section 4-2 of the Code of the City of
Virginia Beach, Virginia re family-oriented billiard facilities.
(Sponsored by Vice Mayor William D. Sessoms, Jr.)
b.
Ordinance to AMEND and REORDAIN Section 21-79 of the Code of the City of
Virginia Beach, Virginia re City Automobile Decals.
(Sponsored by Council Lady Nancy K. Parker)
C.
d.
Ordinance to AMEND and REORDAIN Section 23-45 of the Code of the City of
Virginia Beach, Virginia re peeping toms.
(Sponsored by Councilman James W. Brazier, Jr.)
Ordinance to AMEND and REORDAIN Sections 28.5-9 of the Code of the City of
Virginia Beach, Virginia re smoking.
(Sponsored by Councilman James W. Brazier, Jr.)
M. ADJOURNMENT
CITY COUNCIL RECESS
JULY 14 - 31, 1993
If you are physically disabled, hearing or visually impaired
and need assistance at this meeting,
please call the CITY CLERK'S OFFICE at 427-4305 VOICE OR TDD by MONDAY 9:00 AM
6/15/93/rolm/bp
AGENDA\6-22-93.PLN
MINUTES
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, VIrginia
June 22, 1993
Vice Mayor William D. Sessoms called to order the CITY MANAGER's BRIEFINGS of the VIRGINIA
BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, May 25, 1993, at
4:30 PM.
Council Members Present:
John A. Baum, Linwood O. Branch, III, Robert W. Clyburn, Robert K.
Dean, Louis R. Jones, John D. Moss and Vice Mayor William D.
Sessorns, Jr.
Council Members Absent:
Mayor Meyera E. Oberndorf [ENTERED: 6:00 P.M.]
Returning from U.S. Conference of Mayors'
in New York City
James W. Brazier, Jr.
[ENTERED: 6:00 P.M.]
Paul J. Lanteigne
[ENTERED' 6:00 P.M.]
Nancy IC Parker [ENTERED: 4:45 P.M.]
-2-
CITY MANAGER'S BRIEFINGS
REFUNDING CERTIFICATES OF PARTICIPATION - 1993 RESULTS
4:30 P.M.
ITEM # 36917
Patricia A. Phillips, Director of Finance, advised the $36,700,000 Refunding Certificates of Participation,
Series of 1993, prices on April Ninth. Mrs. Phillips distributed the Final Official Statement and
presentation to Members of City Council, which is hereby made a part of the record.
$36, 700,000 REFUNDING CERTIFICATES OF PARTICIPATION
IN LEASE PAYMENTS UNDER A REAL PROPERTY LF~4SE AGREEMENT
WITH THE CITY OF VIRGINIA BEACH, VIRGINIA
Par Amount $ 36, 700, 000
Ratings Aaa/AAA
True Interest Cost 5. 335%
Gross Savings $ 1,598, 6 79
Average Annual Savings $ 84,141
Fiscal Year 1994 Impact $ 695,503
Net Present Value Savings
$ 750,083
Mrs. Phillips introduced: David Klinges, Jr., Senior Vice President - Lehman Brothers and Amanda Delk,
Senior Vice President - Lehman Brothers. Mr. Klinges is a Member of the Public Finance Department's
Group specializing in Municipal Leasing and has an overall responsibility for Lehman Brothers public
finance activities throughout much of the Mid-Atlantic Region. Mrs. Delk, also with the Infrastructure
Group has been with Lehman since 1985, and has participated in structured refundings for issuers
including Oklahoma Municipal Power Authority, Transmission Agency of Northern California, Puerto Rico
Electric Power Authority, Jacksonville Electric Authority, Arlington County, ITl' and the Brownville, Texas
Public Utilities, as well as others. Both of these individuals worked on the original Certificate of
Participation Financing for the Judicial Center in 1987 and 1990.
Mrs. Delk, utilizing slide displays, advised the first graph, displays the interest rate for the Bond Buyer
Revenue Index from 1980 to present. The graph on the right reflects the Bond Buyer Revenue Index
from January 1, 1993 to present. The ability to pick the lowest point in order to achieve the maximum
amount of savings is very important in doing the refinancing. Historically, the City is at an all time low
in the revenue bond market.
The second chart displays Selected Municipal Financings: Wednesday, June 9, 1993 - Interest Rate
Comparison. The Chart depicts the City of Virginia Beach, Virginia Refunding Certificates of
Participation with Lubbock Health Facilities Corporation -Advance Refunding Hospital Revenue
Bonds, and City of Houston, Texas, Water Convenance System Contract - Certificate of Participation.
Mr. Klinges displayed the chart entitled: Virginia Munkipal Financings: June 2 to June 9, 1993 -
Interest Rate Comparison. This reflects a comparison between the City of Virginia Beach, Virginia,
Refunding Certificates of Participation; Richmond, Virginia, General Obligation Public Improvement
Refunding Bonds; Arlington County, Virginia, General Obligation Public Improvement Bonds; Virginia
Commonwealth Transportation Board - Transportation Revenue Bonds. Mr. Klinges displayed graphs
illustrating the National Distribution of Virginia Beach Series 1993 Certificates and Investor
Distribution of Virginia Beach Series 1993 Certificates.
June 22, 1993
-3-
CITY MANAGER'S BRIEFINGS
INVENTORY REPORT AND STRATEGIC PLAN - HISTORIC RESOURCES
4:42 P.M.
ITEM ii 36918
Mac Rawls, Director of Museums, advised Virginia Beach has experienced one of the longest histories
of Native American, English and African settlement of any City on the North American continent. It is an
area that is rich in Native American and colonial artifacts and historic sites, many of which are now
unmarked by the existence of structures. The absence of a centralized historical residential or commercial
district in Virginia Beach has made it difficult to develop a sense of historic identity among the majority
of its citizens, as well as to develop historic inventories and strategies that identify and help manage the
City's historic resources. In FY 1992, Virginia Beach received $9,000 in matching grant funds to conduct
an inventory of historic structures in the City. As compiled by Fraz~er Associates and published as "A
Reconnaissance Architectural Survey Report for the City of Virginia Beach," this inventory identified
200 homes and other buildings, primarily in the Lynnhaven and Virginia Beach Boroughs, which had not
been previously recorded in any historic surveys. This report was presented to City Council in May 1992.
In FY 1993, the City received $9,500 in State funds to conduct a similar survey of structures in the
southern pan of the City. Notification ora third State grant in the amount of $7,5OO for the FY 1994 has
been received that will allow for professional consultation in the development of an overall strategic plan
which will address management practices and processes relative to the City's historic resources.
Robert A. Davis, Planner, introduced Ka'm Williams - Project Coordinator - Traceries, who completed
Phase II of the survey of structures in the southern part of the City.
Mrs. Williams advised the survey area consisted of the southern half of the City, bounded by the North
Carolina border on the south and by Dam Neck Road on the north. The primary goals entailed identifying
historic resources that are fifty (50) years or older and contributed to the area's historic and architectural
heritage and to compile a complete inventory of these resources for documentation purposes. Traceries
documented 175 historic properties, fifty years or older. Three preliminary information forms were
prepared on three of the properties, whtch were determined eligible to the National Register. A
preliminary information form is the first process involved in designating historical properties.
The Survey of the City of Virignia Beach consisted primarily of three components:
Literature and Archival Study
Onsite examination
Computer Documentation
This was primarily an architectural study and most of the time was spent in the field. Published records
which were located at the Virginia State Library and Archives in Richmond, included: The Beach, A
History of Virginia Beach, Virginia; Old Houses in Princess Anne Virginia; Meet Marshall Parks,
Founder of Virginia Beach; Princess Anne County and Virginia Beach; A th'ctorial History of Virginia
Beach. Another book, Gun Clubs and Decoys of Back Bay and Currituck Sound, was gtven to Traceries
by the author, Archie Johnson.
There were three levels of survey:
(1)
Simply mark on the map whether the building was fifty (50)
years or older and list same according to address.
Reconnaissance level - The building was fifty (50) years or
older and had architectural or historical significance and a
good example of its type, style, or period of construction.
Intensive level - The building really stood out for architectural
or historical reasons and may be potentially eligible for further
formal documentation.
June 22, 1993
-4-
CITY MANAGER'S BRIEFINGS
INFF, NTORY REPORT ,4ND STRATEGIC PLAN - HISTORIC RESOURCES
ITEM # 36918 (Continued)
These levels of survey depended upon certain factors including the date of construction, the level of
architectural significance, the architectural ambition, the degree of representation of the building type
and the threat to the property. In general, all pre-Civil War era resources were surveyed to the intensive
level, as were obsolete building types: taverns, courthouses, etc. As information was being gathered from
the research and onsite investigation, it was reviewed and entered into a computer data base. This data
base is called Integrated Preservation Software Systems and was devised and developed by the National
Park Service in conjunction with the Virginia Department of Historic Resources specifically for cataloging
and analyzing historic resources in the State of Virginia. Of the 175 resources surveyed, over one 'half
of them, ninety-seven were located in an agricultural setting. There are 15 historic resources located
along major transportation corridors. There are 20 historic themes, which have been identified by the
Virginia Department of Historic Resources that pertain to the history of the State of Virginia. There are
9 themes, which have been utilized in the inventory. The most important one being domestic.
Laura Tineschmann, Architectural Historian - Traceries, advised the survey area contatned many farm
complexes. Many of the nineteen century farms retain the original houses, but not many of them retain
the farm buildings. Of the 175 surveyed properties, 97 of them were identified as farm complexes.
Mrs. Tineschmann advised the survey identified three (3) educational buildings in the area. The Pleasant
Ridge School, the Old Charity School and the Creeds Elementary School. The most prevalent
commercial buildings found in Virginia Beach are the small retail stores located along country roads and
at small crossroads communities.
Traceries identified nine properties as being potentially eligible to the National Register of Historic
Places. This is a preliminary review, however, and each of the listed properties requires further research
before a determination of eligibility can be made.
Ferry Farm
Brown's Tavern
Jonathan Woodhouse House
Thomas Lovett House
Pocohantas Hunt Club
Farm, Indian Creek Road
Baxter House
Graham (Ives) House
Issac Murray House
Mrs. Williams advised the Recommendations for further study:
Compilation of On-Site Survey Findings and Review of IPS
Archival Research
Preservation Plan
Mark Reed, Co-ordinator of Historic Resources and Administrator of the Francis Land House, advised
the Educational, Recreational and Cultural Systems Team for the City has identified the need to increase
the efforts in the management of the Historic Resources. The Department of Public Libraries has already
initiated efforts to create a plan for archival presentation. The Departments of Museum and Planning will
be coordinating the creation of a Hiswric Resources Strategic Management Plan that will address the
structures and sites within the City.
June 22, 1993
-5-
CITY MANAGER'S BRIEFINGS
INVENTORY REPORT AND STRATEGIC PLAN - HISTORIC RESOURCES
ITEM # $6918 (Continued)
Mr. Reed outlined the GOALS to accomplish this process:
Inventory and categorize the City's historic resources and identify
management issues that may need to be addressed to assure their
continued existence.
Establish processes for managing historic resources in the City of
Virginia Beach.
Utilize external models to provide guidance for the development of a
historic resource strategic plan.
Refine existing internal historic resource management mechanisms and
identify and implement additional desirable features or programs.
Obtain funding for assistance in planning and implementing an historic
resources strategic management plan.
June 22, 1993
-6-
FORMAL SESION
VIRGINIA BEACH CITY COUNCIL
June 22, 1993
6:00 P.M.
Mayor Meyera E. Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY
COUNCIL in the Council Chamber, City Hall Building, on Tuesday, June 22, 1993, at 6.00 P.M.
Council Members Present:
John A. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D
Moss, Mayor Meyera E. Oberndoff, Nancy IC Parker and Yice Mayor
William D. Sessoms, Jr.
Council Members Absent:
None
INVOCATION: Reverend Thomas Reynolds
Charity United Methodist Church
PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UN~ED STATES OF AMERICA
June 22, 1993
-7-
Item III-E. 1.
CERTIFICATION OF
EXECUTIVE SESSION
ITEM # 36919
Certification was not necessary as no EXECUTIVE SESSION was held.
June 22, 1993
-8-
Item III- F. 1.
MINUTES
ITEM # 3692O
Upon motion by Councilman Moss, seconded by Council Lady Parker, City Council APPROVED the
Minutes of the INFORMAL AND FORMAL SESSIONS of June 8, 1993.
Voting: 11-0
Council Members Voting Aye:
John ,/1. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K, Dean, Louis R. Jones, Paul J. Lanteigne, John D
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
-9-
Item III-F. 1.
ANNOUNCEMENT
ITEM # 36921
Mayor Oberndorf recognized the following Boy Scout in attendance to earn his Citizens Community merit
badge:
TROOP 62
Johnathan Rutledge
Second Class Scout
June 22, 1993
- 10 -
Item III-G.I.
PUBLIC HEARING
ITEM # 36922
Mayor Oberndorf DECLARED A PUBLIC HEARING:
CIGARETTE TAXATION
The following spoke in SUPPORT of Cigarette Taxation:
Pat Ingmire, 2833 Seaboard Road, Phone: 721-5549, represented the American Lung Association
Attorney Hilton Oliver, 4856 Haygood Road, Phone: 490-0126,
The following spoke in OPPOSITION to the Cigarette Taxation:
Page Sutherland, Richmond, Virginia, Phone: 282-4275, represented the Virginia Tobacco Industry
Thomas W.. Harris, 417 Betsy Ross Road, Phone: 497-1857. Mr. Harris presented a petition contaimng
3,300 signatures in OPPOSITION. Said petition is hereby made a part of the record.
Bob McCleskey, 1665 Lake Christopher Drive, Phone: 467-5077
Wally Erb, Phone: 497-7451
Lou Pace, 1908 Hunts Neck Court, Phone: 486-0925
Ann A. Hill, 2077 Princess Anne Road, Phone: 721-6973
There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING.
June 22, 1993
- 11 -
Item III-H. 1.
ORDINANCES/P~SOL UTIONS
ITEM # 36923
A motion was made by Councilman Brazier, seconded by Councilman Moss, to ADOPT, AS REVISED
an Ordinance to AMEND and REORDAIN Section 35-207 of the Code of the City of Virginia Beach,
Virginia, re increase of local tax on Cigarettes.
A SUBSTITUTE MOTION was made by Vice Mayor Sessorns, seconded by Councilman Baum, to DENY
Ordinance to AMEND and REORDAIN Section 35-207 of the Code of the City of Virginia Beach,
Virginia, re increase of local tax on Cigarettes.
Voting:
4-7 (MOTION LOST TO A NEGATI~ VOTE)
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, Louis R. Jones and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
James W. Brazier, Jr., Robert W. Clyburn, Robert IC Dean, Paul J.
Lanteigne, John D. Moss, Mayor Meyera E. Oberndorf and Nancy K.
Parker
Council Members Absent:
None
June 22, 1993
- 12 -
Item III-H. 1.
ORDINANCES/RESOLUTIONS ITEM # 36923 (Continued)
Upon motion by Councilman Brazier, seconded by Councilman Moss, City Council ADOPTED, AS
REVISED:
Ordinance to AMEND and REORDAIN Section 35-207 of the Code of
the City of Virginia Beach, Virginia, re increase of local tax on
Cigarettes. (Sponsored by Counctlmen James W. Brazier, Jr. and John
D. Moss)
This Ordinance shall be effective September 1, 1993, and would result in an increase in the tax of 7 cents
per cigarette pack.
Voting: 8-3
Council Members Voting Aye.
James IV.. Brazier, Jr., Robert W. Clyburn, Robert IC Dean, Louis R
Jones, Paul J. Lanteigne, John D Moss, Mayor Meyera E. Oberndorf
and Nancy K. Parker
Council Members Voting Nay:
John A. Baum, Linwood O. Branch, III, and Vice Mayor William D.
Sessorns, Jr.
Council Members Absent:
None
June 22, 1993
Requested by Councilmembers James W. Brazier, Jr. and John D. Moss
AN ORDINANCE TO AMEND AND REORDAIN
SECTION 35-207 OF THE CODE OF THE
CITY OF VIRGINIA BEACH, VIRGINIA,
PERTAINING TO TAXATION OF
CIGARETTES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 35-207 of the Code of the city of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
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Section 35-207. Levied; amount.
There is hereby levied and imposed by the city, upon each sale
of cigarettes, a tax equivalent to tan (i0~ mille thirteen and one-
half (13.5) mills per cigarette sold within the city, the amount of
such tax to be paid by the seller, if not previously paid, in the
manner and at the time provided for in this article. There shall
be a penalty for late payment of the tax imposed herein in the
amount of ten (10) per centum per month, and interest in the amount
of three-quarters (.75) of one per centum per month, upon any tax
found to be overdue and unpaid.
BE IT FURTHER ORDAINED:
That the following policies are established:
As to the funds received between September 1, 1993 and June
30, 1994, due to this increase in the cigarette tax, such funds
shall be received into the general fund and are hereby appropriated
to CIP Project #2-141 (Economic Development Incentive Fund). For
fiscal years after FY 93/94, all funds that are received from the
increase in the cigarette tax shall be annually appropriated, and
transferred from the general fund to CIP Project #2-141 on a
monthly basis in accordance with appropriate governmental
accounting procedures.
This ordinance shall be effective September 1, 1993.
Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of June , 1993.
CA-5130
\ORDIN\NONCODE \ 35-207A. PRO
R-2
PREPARED: June 22, 1993
APPROVED AS TO
LEGAL SUFFICIENCY
I I I I I I i
- 13 -
Item 111-11.2.
ORDINANCES/RESOL UTIONS
ITEM # 36924
Upon motion by Vice Mayor Sessoms, seconded by Councilman Lanteigne, City Council MOVED
FORWARD prior to the PUBLIC HEARING - CIGARETTE TAXATION:
Ordinance to AMEND and REORDAIN Chapter 21, Division 3 of the
Code of the City of Virginia Beach, Virginia, re tow trucks.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorj;, Nancy IC Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 14 -
Item III-tt.~.
ORDIN,4NCES /RES OL UTIONS
ITEM # 36925
The following WAIVED their right to speak, as they were not OPPOSED to the DEFERRAL:
Britt Lipscomb, 945 Summer Side Court, Phone: 471-0608
Bob Walter, 4226 Thalia Station Circle, Phone: 463-3788
Sam Meekins, 1195 Lance Road, Phone: 461-2874
Meyer Waghalter, 1120 Allendale Drive #D
Upon motion by Vice Mayor Sessorns, seconded by Councilman Lanteigne, City Council DEFERRED
until the City Council Session of July 6, 1993.
Ordinance to AMEND and REORDAIN Chapter 21, Division 3 of the
Code of the City of Virginta Beach, Virginia, re tow trucks.
Vice Mayor Sessoms requested the tow truck representatives contact the Chief of Police as per the City
Manager to schedule a meeting for discussion of this Ordinance.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W
Clyburn, Robert K~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 15 -
Item III-H. 3.
ORDINANCES~MS OL UTIONS
ITEM # 36926
Tuck Bowie, 1709 Oxen Court, Phone: 481-2741, represented the Tidewater Builders Association. Mr.
Bowie expressed concern as certain fee issues wouM have a dramatic impact on their industry Mr.
Bowie requested the opportunity to address those implementation and fee issues prior to any formal
adoption of this ordinance.
Upon motion by Vice Mayor Sessoms, seconded by Councilman Moss, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Chapter 30, Article III of the
Code of the City of Virginia Beach, Virginia, re erosion, sediment control
and tree protection.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James gE. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis I~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf,, Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO AMEND AND REORDAIN
CHAPTER 30, ARTICLE III OF THE CODE
OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, PERTAINING TO EROSION AND
SEDIMENT CONTROL AND TREE
PROTECTION.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Chapter 30, Article III of the Code of the City of
Virginia Beach, Virginia, is hereby amended and reordained to read
as follows:
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Section 30-56. Findings of Council.
The city council has determined that the trees and the lands
and waters comprising the watersheds of the city are great natural
resources; that as a result of erosion of lands by both winds and
water and sediment deposition in waters within the watersheds of
the city, such waters are being polluted and despoiled to such a
degree that fish, aquatic life, recreation and other uses of lands
and waters are being adversely affected; that the rapid shift in
land use from agricultural to nonagricultural uses has accelerated
the processes of soil erosion and sedimentation and tree removal;
and that it is necessary to establish and implement, through the
department of planning, a city-wide coordinated erosion and
sediment control program to conserve and protect the land, water,
air, trees and other natural resources of the city.
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Section 30-57. Definitions.
As used in this article, the following words and terms shall
have the meanings ascribed to them in this section, unless the
context requires a different meaning:
Agreement in lieu of a plan means a contract between the plan-
approving authority and the owner which specifies conservation
measures which must be implemented in the construction of a single-
family residence; this contract may be executed by the plan-
approving authority in lieu of a formal site plan.
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Applicant means any person submitting an erosion and sediment
control plan for approval or requesting the issuance of a permit,
when required, authorizing land-disturbing activities to commence.
Board means the Virginia Soil and Water Conservation Board.
Certified inspector means an employee or agent of the city of
Virginia Beach who (i) holds a certificate of competence from the
Board in the area of project inspection or (ii) is enrolled in the
Board's training program for project inspection and successfully
completes such program within one year after enrollment.
Certified plan reviewer means an employee or agent of the city
of Virginia Beach who (i) holds a certificate of competence from
the Board in the area of plan review, (ii) is enrolled in the
Board's training program for plan review and successfully completes
such program within one year after enrollment, or (iii) is licensed
as a professional engineer, architect, certified landscape
architect or land surveyor pursuant to Article 1 (§ 54.1-400 et
seq.) of Chapter 4 of Title 54.1 of the Code of Virginia 1950, as
amended.
Certified program administrator means an employee or agent of
the city of Virginia Beach who (i) holds a certificate of
competence from the Board in the area of program administration or
(ii) is enrolled in the Board's training program for program
administration and successfully completes such program within one
year after enrollment.
Conservation plan, erosion and sediment control and tree
protection plan, or plan means a document containing material for
the conservation of trees and of soil and water resources of a unit
or group of units of land. It may include appropriate maps, an
appropriate soil and water and tree plan inventory and management
information with needed interpretations, and a record of decisions
contributing to conservation treatments. The plan shall contain
all major conservation decisions to assure that the entire unit or
units of land will be so treated to achieve the conservation
objectives.
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District or soil and water conservation district means the
city of Virginia Beach, a political subdivision of this
commonwealth.
Erosion impact area means an area of land not associated with
current land-distributing activity but subject to persistent soil
erosion resulting in the delivery of sediment onto neighboring
properties or into state waters. This definition shall not apply
to any lot or parcel of land of cnc acrc ten thousand (10,000)
square feet or less used for residential purposes or to shorelines
where the erosion results from wave action or other coastal
processes.
Land-disturbing activity means any land change which may
result in soil erosion from water or wind and the movement of
sediments into state waters or onto lands in the city, including,
but not limited to, clearing, grading, excavating, transporting,
and filling of land, except that the term shall not include:
(1) Minor land-disturbing activities such as home
gardens and individual home landscaping, repairs
and maintenance work;
(2)Individual service connections;
(3) Installation, maintenance or repair of any
underground public utility lines when such activity
occurs on an existing hard surfaced road, street or
sidewalk, provided the land-disturbing activity is
confined to the area of the road, street or
sidewalk which is hard surfaced;
(4) Septic tank lines or drainage fields, unless
included in an overall plan for land-disturbing
activity relating to the construction of the
building to be served by the septic tank system;
(5)Surface or deep mining;
(6) Exploration or drilling for oil and gas, including
the well site, roads, feeder lines and off-site
disposal areas;
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(7) Tilling, planting or harvesting of agricultural,
horticultural or forest crops or livestock feedlot
operations, including engineering operations as
follows: construction of terraces, terrace outlets,
check dams, desilting basins, dikes, ponds,
ditches, strip cropping, lister furrowing, contour
cultivating, contour furrowing, land drainage and
land irrigation;
(8) Repair or rebuilding of the tracks, right-of-way,
bridges, communication facilities and other related
structures and facilities of a railroad company;
(9) Agricultural engineering operations including but
not limited to the construction of terraces,
terrace outlets, check dams, desilting basins,
dikes, ponds not required to comply with the Dam
Safety Act, ditches, strip cropping, lister
furrowing, contour cultivating, contour furrowing,
land drainage and land irrigation;
built, ..................... ~
(ii 10) Disturbed land areas of less than ten thousand
(10,000) square feet in size, except when this
activity takes place in any floodplain area, as
defined in the City ~_Zoning egrdinance [Appendix
Al;
(12 11) Installation of fence and sign posts or telephone
and electric poles and other kinds of posts or
poles;
(13 12) Shore erosion control projects on tidal waters when
the projects are approved by the Wetlands Board of
the city of Virginia Beach, the Marine Resources
Commission or the U.S. Army Corps of Engineers;
(~J~ 13) Emergency work to protect life, limb or property
and emergency repairs; however, if the land-
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disturbing activity would have required an approved
erosion and sediment control and tree protection
plan, if the activity were not an emergency, then
the land area disturbed shall be shaped and
stabilized in accordance with the requirements of
the city engineer.
Local erosion and sediment control program or local control
program means an outline of the various methods employed by ~
district or locality the city of Virginia Beach to regulate land-
disturbing activities and thereby minimize erosion and
sedimentation in compliance with the state program and may include
such items as local ordinances, policies and guidelines, technical
materials, inspection, enforcement, and evaluation.
Owner means the owner or owners of the freehold of the
premises or lesser estate therein, a mortgagee or vendee in
possession, assignee of rents, receiver, executor, trustee, lessee
or other person, firm or corporation in control of a property.
Permit-issuinq authority means the director of public works or
his designee.
Permittee means the person to whom the permit authorizing
land-disturbing activities is issued or the person who certifies
that the approved erosion and sediment control plan will be
followed.
Person means any individual, partnership, firm, association,
joint venture, public or private corporation, trust, estate,
commission, board, public or private institution, utility,
cooperative, county, city, town or other political subdivision of
the commonwealth, any interstate body or any other legal entity.
Plan-approving authority means the director of planning or his
designee, based upon the city engineer's determination of the
adequacy of a conservation plan submitted for land-disturbing
activities on a unit or units of land.
Program authority means the city of Virginia Beach, also
referred to as the city.
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State erosion and sediment control program or state program
means the program administered by the Virginia soil and water
conservation board pursuant to sections 10.1-560 through 10.1-571
of the Virginia Code, including regulations designed to minimize
erosion and sedimentation.
State waters means all waters on the surface and under the
ground wholly or partially within or bordering the commonwealth or
within its jurisdiction.
Subdivision means the same as the term is designated within
section 1.2 of Appendix B of the Code of the city of Virginia
Beach. The term includes resubdivsion and, when appropriate to the
context, shall relate to the process of subdividing or to the land
subdivided.
Section 30-58. Erosion and sediment control program; regulations,
standards and specifications for erosion and
sediment control and tree protection.
(a) The city council hereby adopts the regulations
promulgated by the Virginia Soil and Water Conservation Board
pursuant to section 10.1-562 of the Code of Virginia for the
effective control of soil erosion, sediment deposition and
nonagricultural runoff which must be met in any control program to
prevent the unreasonable degradation of properties, stream
channels, waters and other natural resources. Said regulations,
standards and specifications for erosion and sediment control are
included in but not limited to the "Virginia Erosion and Sediment
Control Handbook, Second Edition, 1980."
(b) The program and regulations provided for in this article
shall be made available for public inspection at the office of the
~ity ^--~ .... director of planning
~ ~&A~ ~a~ ·
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Section 30-59. Approved plan required for issuance of grading,
building, or other permits; security for
performance.
(a) Prior to the issuance of any grading, building or other
permit for activities involving land-disturbing activities, the
applicant shall submit w~ an application with an approved
erosion and sediment control plan and certification that the plan
will be followed.
(b) Prior to the issuance of any grading, building, or other
permit for activities involving land-disturbing activities the
director of planning shall require from the applicant therefor a
reasonable performance bond with surety, cash escrow, letter of
credit, any combination thereof, or such other legal arrangement
acceptable to the city attorney, to ensure that measures could be
taken by the city at the applicant's expense should hc the
applicant fail, after proper notice, within the time specified to
initiate or maintain appropriate conservation action which may be
required of him by the approved plan as a result of his land-
disturbing activity. If the city takes such conservation action
upon such failure by the permittee, the city may collect from the
permittee for the difference should the amount of the reasonable
cost of such action exceed the amount of the security held. Within
sixty (60) days of the achievement of adequate stabilization of the
land-disturbing activity, such bond, cash escrow, letter of credit
or other legal arrangement, or the unexpended or unobligated
portion thereof, shall be refunded to the applicant or terminated.
These requirements are in addition to all other provisions of law
relating to the issuance of such permits and are not intended to
otherwise affect the requirements for such permits.
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Section 30-60. Monitoring reports and inspections of land-
disturbing activities.
(a) With respect to approved plans for erosion and sediment
control and tree protection in connection with land-disturbing
activities which involve the issuance of a grading, building or
other permit, the~ ..... ~..~..~.~ .... director of public works or his
designee shall (1) provide for periodic inspections of the land-
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disturbing activity and (2) may require monitoring and reports from
the person responsible for carrying out the plan, to ensure
compliance with the approved plan and to determine whether the
measures required in the plan are effective in providing for tree
protection and controlling erosion and sediment. The owner,
.... ~ ...... ~ ...... permittee or person responsible for carr ng
out the an shall be yen .... ~ ........ ~ ......... ~...~ ....
~ ..... ~--- ~ -- director
.... ~ ...... notice of the inspection If the -~ .......
of public works or his designee determines that there is a failure
to comply with the plan, notice shall be served upon the permittee
or person responsible for carrying out the plan by registered or
certified mail to the address specified in the permit application
or in the plan certification or by delivery at the site of the
land-disturbing activities to the agent or employee supervising
such activities. The notice shall specify the measures needed to
comply with such plan and shall specify the time within which such
measures shall be completed. Upon failure to comply within the
time specified, the permit may be revoked and the permittee or
person responsible for carrying out the plan shall be deemed to be
in violation of this article and, upon conviction, shall be subject
to the penalties provided for by section 30-75.
(b) Upon receipt of a sworn complaint of a substantial
violation of this article, from the ~--~---~-~ --~ ...... ~--
.... ~ ........... r ...... nt .......
representative of the department of public works, the city manager
or his designee may, in conjunction with or subsequent to a notice
to comply as specified in section 30-60(a) above, issue an order
requiring that all or part of the land-disturbing activities
permitted on the site be stopped until the specified corrective
measures have been taken or, if land-disturbing activities have
commenced without an approved plan as provided in section 30-71 of
this article, requiring that all of the land-disturbing activities
be stopped until an approved plan or any required permits are
obtained. Where the alleged noncompliance is causing or is in
imminent danger of causing harmful erosion of lands or sediment
deposition in waters within the watersheds of the Commonwealth, or
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where such land-disturbing activities have commenced without an
approved plan or any required permits, such an order may be issued
whether or not the alleged violator has been issued a notice to
comply as specified in section 30-60(a) above. Otherwise, such an
order may be issued only after the alleged violator has failed to
comply with a notice to comply. The order shall be served in the
same manner as a notice to comply, and shall remain in effect for
seven (7) days from the date of service pending application by the
~~^ _~ ~A ~ ..... ~ .... director of public works or his
designee or alleged violator for appropriate relief to the circuit
court of the jurisdiction wherein the violation was alleged to have
occurred. If the alleged violator has not obtained an approved
plan or any required permits within seven (7) days from the date of
service of the order, the city manager or his designee may issue an
order to the owner requiring that all construction and other work
on the site, other than corrective measures, be stopped until an
approved plan and any required permits have been obtained. Such an
order shall be served upon the owner by registered or certified
mail to the address specified in the permit application or the land
records of the locality in which the site is located. The owner
may appeal the issuance of an order to the circuit court of the
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Any person violating or failinG, neglecting or refusing to obey an
order issued by the city manager or his designee may be compelled
in a proceeding instituted in the circuit court of the jurisdiction
wherein the violation was alleged to have occurred to obey same and
to comply therewith by injunction, mandamus or other appropriate
remedy. Upon completion and approval of corrective action, or
obtaining an approved plan or any required permits, the order shall
immediately be lifted. Nothing in this section shall prevent the
city manager or his designee from taking any other action specified
in section 30-75.
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Section 30-60.~. Stop work orders by Board; civil penalties.
(a) An aggrieved owner of property sustaining pecuniary
damage resulting from a violation of an approved plan or required
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permit, or from the conduct of land-disturbing activities commenced
without an approved plan or required permit, may give written
notice of the alleged violation to the city and to the Director of
the Board.
(b) Upon receipt of the notice from the aggrieved owner and
notification to the city, the Director of the Board shall conduct
an investigation of the aggrieved owner's complaint.
(c) If the city has not responded to the alleged violation in
a manner which causes the violation to cease and abates the damage
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to the aggrieved owner's property within thirty (30) days followinq
receipt of the notice from the aggrieved owner, the aggrieved owner
may request that the Director of the Board require the violator to
stop the violation and abate the damage to his property.
(d) If (i) the Director of the Board's investigation of the
complaint indicates that the city has not responded to the alleged
violation as required by the local program, (ii) the city has not
responded to the alleged violation within thirty (30) days from the
date of the notice given pursuant to subsection (a) of this
section, and (iii) the Director of the Board is requested by the
aggrieved owner to require the violator to cease the violation,
then the Director of the Board shall give written notice to the
city that the Director of the Board will request the Board to issue
an order pursuant to subsection (e) of this section.
(e) If the city has not instituted action to stop the
violation and abate the damage to the aggrieved owner's property
within ten (10) days following receipt of the notice from the
Director of the Board, the Board is authorized to issue an order
requiring the owner, permittee, person responsible for carrying out
an approved plan, or person conducting the land-disturbing
activities without an approved plan or required permit to cease all
land-disturbing activities until the violation of the plan or
permit has ceased, or an approved plan and required permits are
obtained, as appropriate, and specified corrective measures have
been completed.
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(f) Such orders are to be issued only after a hearing with
reasonable notice to the affected person of the time, place and
purpose thereof, and they shall become effective upon service on
the person by certified mail, return receipt requested, sent to the
address specified in the land records of the city, or by personal
delivery by an agent of the Director of the Board. However, if the
Board finds that any such violation is grossly affecting or
presents an imminent and substantial danger of causing harmful
erosion of lands or sediment deposition in waters within the
watersheds of the Commonwealth, it may issue, without advance
notice or hearing, an emergency order directing such person to
cease all land-disturbing activities on the site immediately and
shall provide an opportunity for a hearing, after reasonable notice
as to the time and place thereof, to such person, to affirm,
modify, amend or cancel such emergency order.
(~) If a person who has been issued an order or emerqency
order is not complying with the terms thereof, the Board may
institute a proceeding in the appropriate circuit court for an
injunction, mandamus, or other appropriate remedy compelling the
person to comply with such order.
(h) Any person violating or failing, neglecting or refusing
to obey any injunction, mandamus or other remedy obtained pursuant
to subsection (g) of this section shall be subject, in the
discretion of the court, to a civil penalty not to exceed two
thousand dollars ($2.000) for each violation. Any civil penalties
assessed by a court under this section shall be paid into the state
treasury.
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Section 30-61. Program administration, plan review and inspection
fee.
At the time an erosion and sediment control plan is submitted,
reasonable fee ~ ~~ ($ ~ 00)
shall be paid. The director of planning or his designee may
determine the amount of fee based upon the anticipated costs
associated with the issuance of grading or land-disturbing permit,
plan review, and anticipated periodic inspection for compliance
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with the erosion and sediment control plan. Such fee shall be
submitted to the director of planning and made payable to the
treasurer of the city of Virginia Beach.
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Section 30-71. Regulated land-disturbing activities; submission
and approval of control plan.
Except as provided in section 10.1-564 of the State Code
(state agency projects), no person may engage in any land-
disturbing activity until he such person has submitted to the
planning department an erosion and sediment control and tree
protection plan for the land-disturbing activity and the plan has
been reviewed and approved by the planning department. Where land-
disturbing activities involve lands under the jurisdiction of more
than one local control program an erosion and sediment control plan
may, at the option of the applicant, be submitted to the Virginia
' Bboard for review approval rather
than to each jurisdiction concerned. Where the land-disturbing
activity results from the construction of a sinqle-family
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residence, an agreement in lieu of a plan may be substituted for an
erosion and sediment control plan if executed by the director of
planning or his designee.
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Section 30-72. Responsibility of property owner when work to be
done by contractor.
For the purposes of sections 30-71 and 30-73 of this article,
when land-disturbing activity will be required of a contractor
performing construction work pursuant to a construction contract,
the preparation, submission and obtaining approval of an erosion
and sediment control and tree protection plan shall be the
responsibility of the owner .
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Section 30-73. Approval or disapproval.
(a) The planning department shall review conservation plans
submitted to it and grant written approval within forty-five days
of the receipt of the plan if it determines that the plan meets the
requirements of the V~rg~n~a .................. crvation b~oard's
regulations and if the person responsible for carrying out the plan
certifies that he will properly perform the conservation measures
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included in the plan and will conform to the provisions of this
article.
(b) When a plan is determined to be inadequate, written
notice of disapproval stating the specific reasons for disapproval
shall be communicated to the applicant within forty-five (45) days.
The notice shall specify such modifications, terms, and conditions
that will permit approval of the plan. If no action is taken by
the plan-approving authority within the time specified above, the
plan shall be deemed approved and the person authorized to proceed
with the proposed activity.
Section 30-74. Changing approved plan.
An approved plan may be changed by the planning department in
the following cases:
(1) Where inspection has revealed that the plan is
inadequate to satisfy applicable regulations; or
(2) Where the person responsible for carrying out the
approved plan finds that because of changed
circumstances or for other reasons the approved
plan cannot be effectively carried out, and
proposed amendments to the plan, consistent with
the requirements of this article, are agreed to by
the planning department and the person responsible
for carrying out the plan.
Section 30-75. Penalty for violation of article.
(a) Violators of this article shall be guilty of a Class 1
misdemeanor ~ -"~~ ~A . f~
(b) Th ppr p i t p it i ing th ity
e a o r a e erR - ssu au or ,
~t ..... ~ ..... the c or the Board may
apply to the circuit court in any jurisdiction wherein the land
lies to enjoin a violation or a threatened violation under this
article without the necessity of showing that an adequate remedy at
law does not exist.
13
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445
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450
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453
454
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458
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471
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478
(c) In addition to any criminal penalties provided under this
article, any person who violates any provision of this article may
be liable to the city or the Board, as appropriate, in a civil
action for damages.
(d) Without limiting the remedies which may be obtained in
this section, any person violating or failing, neglecting or
refusing to obey any injunction, mandamus or other remedy obtained
pursuant to this section shall be subject, in the discretion of the
court, to a civil penalty not to exceed $2,000 for each violation.
A civil action for such violation or failure may be brought by the
locality wherein the land lies. Any civil penalties assessed by a
court shall be paid into the treasury of the locality wherein the
land lies, except that where the violator is the locality itself,
or its agent, the court shall direct the penalty to be paid into
the state treasury.
(e) With the consent of any person who has violated or
failed, neglected or refused to obey any regulation or order of the
Board, or any condition of a permit or any provision of this
article, the Board, the Director of the Board, the director ~ ~"
cnginecr of public works or his designee may provide, in an order
issued by the Board or clty ~..~nccr the director of public works
or his designee against such person, for the payment of civil
charges for violations in specific sums, not to exceed the limit
specified in subsection (d) of this section. Such civil charges
shall be instead of any appropriate civil penalty which could be
imposed under subsection (d).
(f) Upon the request of the -~ ..... ~ .... '-
~ ~,,~ ....... city or the
director of public works or his designee rcqucst, the city attorney
or the Commonwealth's attorney shall take legal action to enforce
the provisions of this article.
(g) Compliance with the provisions of this article shall be
prima facie evidence in any legal or equitable proceeding for
damages caused by erosion or sedimentation that all requirements of
law have been met and the complaining party must show negligence in
order to recover any damages.
14
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480
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482
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485
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499
50O
Section 30-76. Appeals from decisions under article.
Final decisions under this article shall be subject to review
by the court of record of the city of Virginia Beach, provided an
appeal is filed within thirty (30) days from the date of any
written decision adversely affecting the rights, duties or
privileges of the person engaging in or proposing to engage in
land-disturbing activities.
Section 30-77. Conservation plan for erosion impact area.
In order to prevent further erosion a local program may
require approval of a conservation plan for any land identified in
the local program as an erosion impact area.
Section 30-78. Incorporation of Chesapeake Bay Preservation Area
Ordinance and the Southern Watersheds Management
Ordinance.
The provisions of the Chesapeake Bay Preservation Area
Ordinance, and the Southern Watersheds Management Ordinance, and
any future amendments thereto, are hereby adopted and incorporated
by reference as requirements of this article in the areas of the
city to which they apply. Such provisions shall be deemed to be in
addition to, and not in lieu of, the provisions of this article
except in cases of conflict, in which event the more restrictive
provision shall apply.
501
This ordinance shall be effective July 1, 1993.
502
503
Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of June , 1993.
504
505
506
507
CA-5180
\ORDIN\PROPOSED\ 30-056ET. PRO
R-5
PREPARED: June 15, 1993
15
APPROVED ~0 CGI',I[6NTS
SIGNAiU~E
DEPARTMENT
~PPROVED AS TO LEGAL
1993 RECONVENED SESSION
VIRGINIA ACTS OF ASSEMBLY - CHAPTER
An Act to amend and reenact ~ 10.1-560 through 10.1-564, 10.1-566, and 10.1-569 of the
Code of Vtrgmta and to amend the Code of Vtrgtnta by addtng secttons numbered
10.1-561.1 and 10.1-569.1, relattng to eroston and sedtment control, penalttes.
[H 1574]
Approved
Be it enacted by the General Assembly of V~rgima'
1. That §§ 10.1-560 through 10.1-564, 10.1-566, and 10.1-569 of the Code of Virginia are
amended and reenacted and that the Code of Vlrg~ma is amended by adding sections
numbered 10.1-561.1 and 10.1-569.1 as follows'
§ 10.1-560. Detinlhons.--As used in this article, unless the context requires a dffterent
meaning:
"Agreement tn lteu of a plan" means a contract between the plan-approvtng authority
and the owner which spectftes conservation measures which must be tmplemented tn the
construction of a stngle-famtly reszdence, thts contract may be executed by the
plan-approving authortty tn heu of a formal site plan.
"Applicant" means any person submitting an erosion and sediment control plan for
approval or requesting the issuance of a permit, when required, authormng land-d~sturbmg
activities to commence.
"Certtfied inspector" means an employee or agent of a program authortty who (0 holds
a certtftcate of competence from the Board tn the area of pro/ect ,;nspectton or (to ts
enrolled tn the Board's tramtng program for prolect tnspectton and successfully completes
such program wtthtn one year after enrollment
"Certtfted plan reviewer" means an employee or agent of a program authority who
holds a certificate of competence from the Board tn the area of plan revtew, (to ts enrolled
tn the Board's traintng program for plan revtew and successfully completes such program
withtn one year after enrollment, or (rtz) ts hcensed as a professtonal engtneer, archttect,
certtfted landscape archttect or land surveyor pursuant to Article I (3q 54.1-400 et seq) of
Chapter 4 of Title 54.1.
"Certtfted program admtntstrator" means an employee or agent of a program authomty
who (ti holds a certtftcate of competence from the Board tn the area of program
admtnistratton or (tO is enrolled tn the Board's traintng program for program
admtntstratton and successfully completes such program wtthin one year after enrollment.
"Conservation plan," "erosion and sediment control plan," or "plan" means a document
containing material for the conservation of soil and water resources of a unit or group of
units of land. It may include approprmte maps, an appropriate soil and water plan
inventory and management information with needed interpretations, and a record of
decisions contributing to conservation treatment. The plan shall contain all major
conservation decisions to assure that the entire unit or units of land will be so treated to
achieve the conservation objectives.
"District" or "soil and water conservation district" means a political subdivision of this
Commonwealth organized in accordance with the provisions of Article 3 (§ 10.1-506 et seq.)
of this chapter.
"Erosion impact area" means an area of land not associated with current
land-disturbing activity but subject to persistent soil erosion resulting in the delivery of
sediment onto neighboring properties or into state waters. This definition shall not apply to
any lot or parcel of land of one ac-r-e 1o, 0oo square feet or less used for residential
purposes or to shorelines where the erosion results from wave achon or other coastal
processes.
"Land-disturbing activity" means any land change which may result in soil erosion from
water or wind and the movement of sediments into state waters or onto lands in the
Commonwealth, including, but not hmited to, clearing, grading, excavating, transporting and
filling of land, except that the term shall not include:
1. Minor land-disturbing activities such as home gardens and individual home
landscaping, repairs and maintenance work; 2. Indiwdual service connections;
3. Installation, maintenance, or repair of any underground pubhc utility lines when such
achvlty occurs on an existing hard surfaced road, street or s~dewalk provided the
land-d~sturbing activity ~s confined to the area of the road, street or sidewalk which is hard
surfaced;
4. Septic tank hnes or drainage fields unless included ~n an overall plan for
land-disturbing activity relahng to construct]on of the braiding to be served by the sephc
tank system;
5. Surface or deep mining;
6. Exploration or drilhng for o~I and gas Including the well site, roads, leeder hnes and
off-site disposal areas;
7. Tilling, planting, or harvesting of agricultural, horticultural, or forest crops, or
hvestock feedlot operation; including engineering operahons as follows: co~truction of
terraces, terrace outlet, check da~, destltmg b~i~, dikes, ponds, d~tches, strip cropping,
lister furrowing, contour culnvat~ng, contour furrowing, land drainage and land irrigation;
8. Repair or rebuilding of the trac~, right-of-way, bridges, communication facilitms and
other related structures and facihties of a rmlroad company;
9. Agricultural engineering operations ~ncluding but not hm~ted to the co~tmction of
terraces, terrace outlet, check da~, desilt~ng b~i~, d~kes, ponds not required to comply
with the provisions of the Dam Safety Act, A~icle 2 (~ 10.1-604 et seq.) of Chapter 6 of
this title, ditches, strip cropping, lister furrowing, contour cultivating, contour furrowing,
land drainage and land irrigation;
and ~ wh:ch ~ m ~ Sm:th Mounta:n
~ lo. Disturbed land are~ of less than 10,000 square feet in s~ze; however, the
governing body of the .....
...... ~, ~ town ~ d~strmt program authority may reduce this
exception to a smaller area of disturbed land or quali~ the conditmns under which th~
exception shall apply;
~ 11. Installation of fence and sign pos~ or telephone and electric poles and other
kinds of pos~ or poles;
~ 12. Shore erosion control projec~ on hdal waters when the projec~ are approved by
local wetlands boards, the Marine Resources Commission or the United States Amy Co~s
of Engineer; and
~ 13. Emergency work to protect life, limb or property, and emergency repai~;
however, if the land-disturbing activity would have required an approved erosion and
sediment control plan, if the activity were not an emergency, then the land area d~sturbed
shall be shaped and stabilized in accordance with the requiremen~ of the plan-approving
authority.
"Local erosion and sediment control program" or "local control program" mea~ an
outline of the various methods employed by a ~*~'* ~ '"'~"*" program authority to
re.late land-disturbing activities and thereby minimize erosion and sedimentation in
comphance w~th the state program and may include such ~tems ~ local ordinances,
policies and guidehnes, technical materials, ~pection, enforcement and evaluation.
"Owner" means the owner or owners of the treehold ot the premises or le~er es~te
therein, a mo~gagee or vendee in po~ess~on, msignee of renS, receiver, executor, trustee,
levee or other pe~on, tirm or corporahon in control ota property.
"Permittee" means the pe~on to whom the permit authorizing land-dtsturbing activities
is i~ued or the pe~on who ce~ifies that the approved erosion and sediment control plan
will be tollowed.
"Pe~on" means any individual, pa~ne~hip, f~rm, ~ociahon, joint venture, public or
private co~oration, ~ust, estate, commimion, board, public or private institution, utility,
cooperative, county, city, town, or other political subdivision of the Commonwealth, any
mte~tate body, or any other legal enhty.
"Plan-approving authority" means the Board, the
program authortty, or a department of a~,,~j~',,
responsible for determining the adequacy of a conservation plan submitted for
land~sturbmg act~v~hes on a umt or um~ of lands and for appromng plans
"Program authortty" means a dtstrtct, county, ctty, or towtt whtch has adopted a sod
eroston and sedtment control program whtch has been approved by the Board.
"State eroston and sediment control program" or "state program" means the program
administered by the Board pursuant to this article, including regulations designed to
minimize erosion and sedimentation.
"State waters" means all waters on the surface and under the ground wholly or
partially within or bordering the Commonwealth or within its jurisdiction.
~ ~ ~ division ~ a ~ ~ lan~ into ~ ~ ~ !o*~; ~ ~ ~ ~
........... ~ ~ ~ ~ lan~ ~ "Town" means an inco~orated town.
~ 10.1-561. State erosion a~d sediment control program.~A. The Board shah deue~op a
program and promulgate regulations for the effective control of soil ~rosio~, s~d]m~t
deposition and nonagricultural runoff which must be met in any control program to prevent
· e unre~onable degradation of prope~ies, stream channels, wate~ and other natural
resources Jn accordance with the Administrative Proce~ Act (~ ~-6.14:1 et seq.). The re~lations shall:
1. Be b~ed upon relevant physical and developmental information concerning the
wate~heds and drainage b~ins of the Commonwealth, Jflc]uding, but ~o[ limited to, data
relating to ]and use, soils, hydrolo~, geolo~, size of ]and area being disturbed, proximate
water bodies and their characteristics, transpo~atlon, a~d public facilities and se~ices;
2. I~cI~de such su~y of ]~nds ~nd w~[~ ~ m~y b~ d~m~d ~p~ropri~te by the
Board or required by ~ny applicable ]~w to identify areas, including m~l[ijurisdl~tional and
wate~hed are~, with cTltic~] ~TOSlO~ and s~dim~t probI~; ~d
3. Contain conse~aBon standards for various types of soils and ]and uses, which ~hal]
include cr]term, techniques, and methods for the control of erosion and sediment resulting
from land-disturbing activities.
B. The ~oard shalI proutde techntcaI assistance and adutce to. and conduct and
· upe~t,e educatzonaI programs for. dt,t~cts and localities which haue adopted local
control programs.
~ c. The program and regulatio~ shall be available for public J~pection at the
Depa~ment.
D. The Board shall promulgate regulations establishtng mzntmum standards
effectiveness o/ erosion and sediment control programs, and crzteria and procedures /or
reute~zng and eualuattng the effectt~eness o/ eroszon and sedzment control programs.
deueloptng minimum standards for program effecttueness, the Board shall conszder
in/o~atton and ,tandards on which the regulations promulgated pursuant to subsection A
o/ this section are based.
~ E. The Board shah periodically conduct a comprehe~ive review and evaluation to
e~ure ~.~v*~*"~.....~a ~ that ail erosio~ and sediment control progr~ operating under
~he j~risdic[Jo~ of this a~cl~ meet mtnzmum ,tandards of effecttueness [~ controlItng ,otl
erosion, sediment deposttzon and nonag~cultural runoff. The Board shall develop a
scheduIe for conductzng periodic re~tews and e~aIuattons o/ the effectt~eness of erosion
and sediment control programs .
~ F. The Board shall i~ue ce~ifJcates of competence concermng the content,
application and intent of specified subject are~ of this chapter and accompanying
r~l~[Jo~s . [~c[~dt~g program admt~tstratto~, p~an routew, a~d project t~spectton, to
pe~onnel of ~.~! ..........
..... ~ ............. program authortttes and to any other persons who have
completed ~aming programs or in other ways demonstrated adequate knowledge. The
Department shall admintster educatton and tratntng programs for spectfied subject areas of
this chapter and accompanying regulations, and is authorized to charge persons attending
such programs reasonable fees to cover the costs of admmistertng the programs.
~ 10.7-587.1. Certi~catton of local program personnel.--A. The mmtmum standards of
local program effecttveness established by the Board pursuant to subsection D of
70.7-5~J shall provide that wtthin one year following the adoptton of amendments to the
local program adding the provistons of this section, (ii a conse~ation plan shall not be
approved unttl tt is reviewed by a certified plan reviewer; (t0 inspections of land-disturbtng
acttvtties are conducted by a certified inspector; and (u0 a local program shall contain a
certtfted program admtntstrator, a certtfted plan revtewer, and a certtfted project inspector,
who may be the same person.
B. Any person who holds a certt~cate of competence from the Board tn the areas of
plan revtew, project inspection, or program admtntstratton whtch was attatned prior to the
adoptton of the mandato~, certtftcattort pro,'tstons of subsectton A of thts sectton shah be
deemed to satisfy the requirements of that area of certification.
{} 10.1-562. Local erosion and sediment control programs.--A Each district ~n the
Commonwealth ~ or, c-opt as promde(~ m ~ g
~ and ~d~ment c~ntrol program ~ v:ith ~ ~ ~ and ~ f~r
~ ~ ~~ ~*~ shall adopt and administer an erosion and sediment control
program for any area wtthtn the district for which a county, city, or town does not have
an approved erosion and sediment control program .
To caru out i~ program the d~strict shall adopt regulations consistent with the s~te
program. The regulaho~ may be revised from time to time ~ necemau. Before adopting
or revising regulation, the d~strict shall give due notice and conduct a pubhc hearing on
the proposed or revised regulahons except that a pubhc hearing shall not be required when
the district is amending i~ program to Conform to revisions in the state program. However,
a pubhc heanng shall be held if a district proposes or revises regulatio~ that are more
stnngent than the state program. The program and regulahons shall be available for pubhc
inspection at the principal ofhce of the d~strict.
B. In are~ where there ~s no d~stnct, a county, city, or town shall adopt and
admimster ~ an erosion and sediment control program
.............. ~ .......... IS ~ .
C. Any county, city, or town mat has ~ ~ own within a dtstrtct may adopt and
administer an erosion and sediment control' program ~ has
........... , ................. :, ~
Any town, lylng w~t~in a county w~m~ ~as a~opted l~ own erosion an~ sediment
control program, mast ~it~r ma~ adopt i~ own program or become subjec~ to t~e county
program. I~ a town hes within t~e bounSanes o~ more t~an one county, t~e town s~all be
cons]Sere~ ~or t~e pu~oses o~ t~s aNmle to be w~olly wltS~n t~e county zn w~ic~ tSe
larger portion o~ t~e town hes. Any county, city, or town w~t~ an erosxon an8 seS]ment
control program may 8eslgnate ]~ ~epaNment o~ publxc wor~ or a similar local
government 8epa~ent ~ t~e plan-approoxng authority or may designate t~e 8]strlct ~ ~e
plan-approvlng authority ~or all or some o~ t~e conse~ahon plans.
~a ~ n~a oh~,, ~ such ~ ~ ......
..... ' ........... , ............... ~ ~ ~ ....... ~+~ with
~ .... ouo local !nteres~ ~ ~ and ~
.............. ~ ~ ~ Any erosion and sediment control program
adopted by a district, county, city, or town shall be approved by the Board t/ tt ts
consistent with the state program and regulations for erosion and sediment control
E. I/ a review conducted by the Board of a local control program md~cates that the
program authority has not administered, enforced or conducted Its program tn a manner
that satisfies the minimum standards o/ effectiveness estabhshed pursuant to subsection D
o/ ff IO.I-5GI, the Board shall nott~ the program authomty m writing, which notice shall
zdentt~ corrective action required to attain the minimum standard o/ effectiveness and
shall include an offer to provide technical assistance to implement the corrective action.
the program authority has not zmpMmented the corrective action Identified by the Board
within thirty days following receipt of the notice, or such additional period as ts necessa~
to complete the Implementation o/ the corrective action, then the Board shall revoke tis
approval o/ the program. Prior to revoking tis approval o/ any local control program, the
Board shall conduct a formal hearing pursuant to ff ~.14.'12 o/ the Administrative Process
Act. Judicial review o/ any order o/ the Board revoking tis approval o/ ~, local control
program shall he made tn accordance with Article 4 (ff $~.14.'15 et seq.) o/ the
Administrative Process Act.
F. I/ the Board revokes tis approval o/ a local control program of a county, city, or
town, and the locahty ts tn a district, the district shall adopt and administer an erosion
and sediment control program for the locahty.
G. I/ the Board (ti revokes tis approval o/ a local control program of a district, or of a
county, city, or town not in a district, or (t0 ~nds that a local program consistent with
the ,{ate program and regulations has not been adopted by a district or a county, city, or
tom ,which ~ required to adopt and admmtster a local program, the Board shall, after
su~ hea~hgs or consuRattons as tt
-" ' x~ ., .. ., ' deems
'' appropriate wtth the
tn~~,~d~op~ adoot an~ ~--: ..... . vartous local interests
su~ ~~' ~~:' %7. --.~-,~,,,~'ter an approprtare program to be carrte
, ,., ,y,'ctW, or town ......... d out wtthm
--~}~'- ....... ~ ..... ~ uppttcaole, oy the Board.
-,~:~~~~,.q~mked, it, approval of any local control
au~w,l~~~u`~:- '--' ro ra
· .=a~,~~%~J~su*;'~e B~rd ...... P g ,t, the program
~.~~~.~,,,. X,.~prove a replacement prograt~, a~d the Board
[,,.cO~ ~,.~ ~,- a~m~~l:~,{~ finds that (ii the program author
,~)~5~-. .~'~[~,, ,. .-. , ~ tty ts capable
of administering the program tn accordance with the minimum standards of effectzveness
and (zl) the replacement program otherwise meets the requirements of the state program
and regulatzons. The Board shall conduct a formal heartng pursuant to ~ 9~.14.12 of the
Administrative Process Act on any request for approval of a replacement program.
~.. I. Any~.~_~'~'~.~., c~unt¥, ~ ~ ~ program authorzty which admimstem an erosion
and sediment control program may charge applican~ a re~onable fee to defray the cost
of program adm~mstrahon
an ordinance estabhshmg a schedule of fees. The fee shall not exceed an amount
comme~urate with the se~ices rendered, taking into co~ideration the hme, skill and
administratom' expe~e involved
~ ~. The governing body of any county, c~ty or town which (i) is in a district which
hm adopted a local control program, (fi) h~ adopted ~ own local control program, (hi) is
subject to a local control program adopted by the Board, or 0v) administe~ a local control
program, may adopt an ordinance ~ a uniform ~ ~ c~v~l ~ for
provtdzng that violabons of any regulation or order of the Board, any provision of
program, any condition of a permit, or any provision of this a~icle sha,q be sublect to a
civil penalty . ~ ~
,,~,..~.~,~,., ..... ~..~a The civil penalW for any one violation shall ,,~-~* ~ be $100 , except
that the czvil penalty for commencement of land-dtsturbzng activities w~thout an approved
plan as provided in ff 10.1-5~3 shall be ~1,000 . Each day dunng which the violahon is
found to have existed shall constitute a separate offe~e. ~ ~ ~ ~ shall
~ than ~ ~ ~ ~ ~ and In no event shall a series of specihed
violations arising from the same operabve set of fac~ result in civil penalbes which exceed
a total of $3,000 , except that a sertes
/and-dzsturbzng activities without an approved plan for a~y site shall not result zn civil
penalties which exceed a total
Adoption of such an ordinance provtdzng that violations are sub/ect to a civil penalW shall
be in lieu of criminal ~nctio~ and shall preclude the prosecution of such v~olation ~ a
misdemeanor under subsection A of ~ 10.1-569.
~ 10.1-563. Re~lated land~sturbmg activities; submi~on and approval of control
plan.--A. Except ~ provided in ~ 10.1-564, no pe~on may engage in any land~isturbing
activiW until he h~ submi~ed to the d~strict or locahW an erosion and sediment control
plan for the land-disturbing ac~vity and the plan h~ been rewewed and approved by the
plan-approving authority. Where land~sturbing achvities involve lands under the
jurisdiction of more than one local control pro,am an erosion and sediment control plan
may, at the option of the applicant, be submi~ed to the Board for review and approval
rather than to each jurisdiction concerned. Where the land~zsturbtng actzwty results ~om
the const~ctzon of a single-family residence, an agreement tn /ie~ of a plan may be
s~bsttt~ted for an erosion and sediment control pla~ if executed by the plan~pproving
authortt~.
B. The plan-approving authority shall review co~e~ation plans submi~ed to it and
grant written approval wi~in fo~y-hve days of the receipt of the plan if it detemines that
the plan mee~ the requiremen~ of the Board's re~la~o~ and if the pe~on responsible
for carwing out the plan ce~hes that he will properly pe~orm the co~e~ation me~ures
included in the plan and will conform to the provisio~ of this a~icle.
When a plan is determined to be inadequate, wn~en nohce of di~pproval s~ting the
specihc reaso~ for d~sapproval shall be communicated to the applicant within fo~-five
days. The notice shall specify the modifications, te~ and conditio~ ~at will pemit
approval of the plan. If no ac~on is taken by ~e plan-approving authority within the ~me
specified above, the plan shall be deemed approved and the pemon authorized to proceed
wi~ the proposed activin.
C. An approved plan may be changed by the au~oriW that approved ~e plan in
following c~es:
1. Where i~pection h~ revealed that the plan is inadequate to ~fy applicable
regulations; or
2. Where the peson respo~ible /or carwing out ~e approved plan hnds that because
of changed circu~tances or for other re~o~ the approved plan cannot be effectively
carried out, and proposed amendmen~ to the plan, co~istent with the reqmremen~ of th~s
a~cle, are agreed to by the plan-approving authority and the pemon respo~ble for
carrying out the plan.
D. Electrm and telephone utihty companies and railroad companies shall hle general
erosion and sediment control specificabons annually with the Board for review and written
comments. The specihcations shall apply to'
1. Construction, installation or matntenance of electric and telephone utility hnes; and
2. Construcbon of the tracks, rights-of-way, bridges, communication facilities and other
related structures and faohtms of the railroad company.
The Board shall have sixty days in which to comment. Individual approval of separate
projects within subdivisions 1 and 2 of this subsection is not necessary when approved
specifications are followed. Projects not included in subdivisions 1 and 2 of this subsection
shall comply with the requirements of the appropriate local erosion and sediment control
program. The Board shall have the authority to enforce approved specifications.
E. In order to prevent further erosion a local program may require approval of a
conservabon plan for any land identified in the local program as an erosion impact area.
F. For the purposes of subsections A and B of thts section, when land-disturbing activity
will be required of a contractor performing construction work pursuant to a construction
contract, the preparation, submission and approval of an erosion and sediment control plan
shall be the responsibility of the owner.
§ 10.1-564. State agency projects.-- Pray state ageac-y *~"~* ~ a
pr-ojoc4 v::th the Depa~ment for ~ and ~ ~ ~ ~ shall ha-v~
A. A state agency shall not undertake a pro/ect revolving a land-dzsturbmg acttvtty
unless (0 the state agency has submitted annual speciftcattons for tts conduct of
land-disturbing acttvtttes which have been revtewed and approved by the Department as
being consistent with the state program or (t0 the state agency has submitted a
conse~atton plan for the pro/ect which has been revtewed and approved by the
Department.
B. The Department shah not approve a conse~ation plan submitted by a federal or
state agency for a pro/ect mvolvmg a land~isturbmg acttvtty (ii m any localtty which has
not adopted a local program wtth more stringent regulations than those of the state
program or O0 m multtple ]urtsdtcttons wtth separate local programs, unless the
conse~atton plan ts consistent wtth the requirements of the state program.
C. The Department shall not approve a conse~atton plan submitted by a federal or
state agency for a pro/ect involving a land-dtstrtbuttng activity tn one locahty with a local
program with more st~ngent regulations than those of the state program unless the
conse~atton plan ts conststent with the requirements of the local program. If a locality
has not submitted a copy of its local program regulattons to the Department, the
provtstons of subsection B of this sectton shall apply.
D. The Department shall have sixty days tn whtch to comment on any specifications
or conse~atton plan submttted to it for review, and tts comments shall be btndmg on the
state agency and any private business htred by the state agency.
E. As on-site changes occur, the state agency shall submit changes tn a conse~atton
plan to the Department.
F. The state agency responstble for the land-disturbing acttvity shall ensure comphance
with the approved plan or speci~cattons.
~ 10.1-566. Monitoring, repo~ and inspections.--A. The plan-approwng authority or, if a
permit is i~ued in connection with land-disturbing activihes which involve the i~uance of a
grading, building, or other permit, the permit-i~uing au~ority (i) shall provide for periodic
i~pections of the land~sturbing activity and (i0 may require monitoring and repo~ from
the pe~on respo~ible for caruing out the plan, to e~ure comphance with the approved
plan and to determine whether the me,utes required ~n the plan are effecbve in
controlhng erosion and sediment. The owner, ~ ~ ~ pe~tttee, or person
resportstble for caro'trtg otxt the plan shall be glve~ notice of the l~pectlon
~vv~ ..... ...... ~ .... *",j ~ ....... .......... v...j ~ ~ . If the pem~tq~umg authority or plan-approving
authoriW detem~nes that there is a failure to comply w~th the plan, notice shall be se~ed
upon the permittee or pe~on respo~ble for carumg out the plan by registered or
certified mail to the address specified in the permit application or in the plan certlhcahon,
or by dehvery at the site of the land-disturbing activities to the agent or employee
.supervising such activities. Where the plan-approvlng authority serves notice, a copy of the
notice shall also be sent to the issuer of the permit. The notice shall specify the measures
needed to comply with the plan and shall specify the time within which such measures
shall be completed. Upon failure to comply within the time specified, /he permit may be
revoked and the permittee or person responsible for carrying out the plan shall be deemed
to be in violation of this article and shall be subject to the penalttes provided by §
10.1-569.
B. Notwithstanding the above provisions of this section the following may be applied
1. Where a county, city, or town administers the local control program and the
permit-issuing authority and the plan-approving authority are not within the same local
government department, the locality may designate one department to inspect, monitor,
report and ensure compliance. In the event a district has been designated as the
plan-approving authority for all or some of the conservation plans, the enforcement of the
program shall be with the local government department; however, the d~stnct may inspect,
monitor and make reports for the local government department.
2. Where a district adopts the local control program and permit-issuing authorities have
been established by a locality, the district by joint resolution with the appropriate locality
may exercise the responsibilities of the permit-issuing authorities with respect to monitoring,
reports, inspections and enforcement.
3. Where a permit-issuing authority has been established, and such authority is not
vested in an employee or officer of local government but in the commissioner of revenue
or some other person, the locality shall exercise the responsibilities of the permit-issuing
authority with respect to monitoring, reports, Inspections and enforcement unless such
responsibihtms are transferred as provided for m this section.
C. Upon receipt of a sworn complaint of a substant',a! violation of th~s sechon, §
10.1-563 or § 10.1-564 from the d4~4~aat~ enfercement of4m-e~ representattve of the
program authortty or the Board responstble for ensuring program comphance , the chief
administrative officer , or hfs destgnee, of {-t-)- the program authority or the Board ~ o~: ~
tim ,~ .... ~" c-~ o4: + ..... o~m4mg ~ own emsma ~"'~ so~a~ '-'-"~'-'-' p.,,~, ..... , o~ ~ a
conjunction with or subsequent to a notice to comply as specified in subsection A above,
issue an order requiring that all or part of the land-disturbing activities permitted on the
site be stopped until the specified corrective measures have been taken or, t/
land-dtsturbmg acttvttte, have commenced wtthout an approved plan as provtded tn 3$
10.1-563, requtr~ng that all off the land-dtsturbing acttvtttes be stopped until an approved
plan or any requtred permtts are obtatned. Where the alleged noncompliance IS CallSlng or
is in imminent danger of causing harmful erosion of lands or sediment deposition In waters
within the watersheds of the Commonwealth, or where the land-dtsturbtng acttvtttes have
commenced wtthout an approved plan or any requtred permtts, such an order may be
issued whether or not the alleged violator has been issued a notice to comply as specified
in subsection A above. Otherwise, such an order may be issued only after the alleged
violator has failed to comply with a notice to comply. The order shall be served in the
same manner as a notice to comply, and shall remain in effect for seven days from the
date of service pending application by the enforcing authority or alleged violator for
appropriate relief to the circuit court of the jurisdiction wherein the violation was alleged
to have occurred. ~f the alleged vtolator has not obtained an approved plan or any
requtred permits wtthtn ,even days from the date of servtce of the order, the chtef
admtntstrattve offtcer or his destgnee may tssue an order to the owner requtrtng that all
construction and other work on the ,rte, other than corrective measure& be stopped untd
an approved plan and any requtred permits have been obtained. Such an order shall be
served upon the owner by regtstered or certt]ted mad to the address spectfted tn the
permtt apphcatton or the land records off the locality in which the site ts located The
owner may appeal the ts, vance of an order to the ctrcutt court off the iu~sdtctton whereto
th, vtolatton was alleged to have occu~ed. Any person utolattng or ]athng, neglecting or
r,~sing to obey an order tssued by the cht,] admtntstrattue offtcer or hfs destgnee may be
compelled tn a proceeding mstttuted m the ctrcutt court of th, lurisd&'tton whereto the
uiolatton was alleged to have occurred to obey same and to comply therewtth by
tnlunctton, mandamus or other appropriate remedy. Upo~ completion and approval Of
corrective action or obtaining an approved plan or any requtred permtts, the order shall
~mmediately be lifted. Nothing ~n this section shall prevent the chief adm~nistrattve officer
or his destgnee from taking any other action specified in ~ 10.1-569.
§ 10.1-569. Penalties, )njunct~ons and other legal actions.--A. V~olators of §§ 10.1-563,
10.1-564 or § 10.1-566 shall be guilty of a Class 1 misdemeanor and ~ to a ~ nat
B. If a locahty has adopted an ordinance estabhshmg a uniform schedule of civzl
penaltms as permitted by subsectmn t~ j of § 10.1-562, any person who violates any
regulation or order of the Board, any condition of a permit, any prows~on of its program,
or any provision of this artmle shall, upon a f~ndmg of an appropriate general d~strict
court, be assessed a civil penalty in accordance with the schedule. A c~wl action for such
violation may be brought by the locality wherezn the land lies. In any trml for a scheduled
vzolation, ~t shall be the burden of the locahty to show the hab~lity of the wolator by a
preponderance of the evidence. An admission or finding of liabihty shall not be a criminal
conviction for any purpose. Any civil penalties assessed by a court shall be paid into the
treasury of the locality wherein the land lies, except that where the wolator is the locality
itself, or its agent, the court shall dzrect the penalty to be paid into the state treasury.
C. The appropriate permit-issuing authority, o~ a a,o,,.~o, o~ ~,,o~,~,t,, op~r-a-ti~ ~
U~*OL.L &%,.,,*t* luw~ullt*J l~' vv
program the program authority , or the Board may apply to the c]rcmt court in any
jurisdictmn wherein the land hes to enjoin a violation or a threatened wolatlon under §
10.1-563, § 10.1-564 or § 10.1-566 without the necessity of showing that an adequate remedy
at law does not exist.
D. In addition to any criminal or civil penaltms provided under this chapter, any person
who violates any provision of this chapter may be hable to the "-"~]'*" program authority
or the Board, as appropriate, in a c~vfl action for damages.
E. Without hmiting the remedies which may be obtained in th~s sect]on, any person
violating or failing, neglecting or refusing to obey any ~njunct~on, mandamus or other
remedy obtained pursuant to this section shall be subject, in the d~scret~on of the court, to
a civil penalty not to exceed $2,000 for each violation. A civil action for such violation or
failure may be brought by the locality wherein the land lies. Any civil penalties assessed
by a court shall be paid into the treasury of the locality wherein the land hes, except that
where the violator is the locality itself, or ]ts agent, the court shall d~rect the penalty to be
paid into the state treasury.
F. With the consent of any person who has violated or failed, neglected or refused to
obey any regulation or order of the Board, or any condition of a permit or any provision
of this article, the Board, the Director or plan approving or perm~tqssumg authority may
provide, In an order issued by the Board or plan-approving or perm~tqssuing authority
against such person, for the payment of civil charges for violations ~n speciftc sums, not to
exceed the hmit specified in subsection E of this sect]on. Such ciwl charges shall be
instead of any appropriate civil penalty which could be imposed under subsection B or E.
G. Upon request of a
~,~.&~,.J'~.&a~'~lO~l~l~'~&~,~&, O'~ &~'~'~&&~'J~'''"'~]'' ~ ~ a,,,,..., program authority , or the
permit-issuing authority, the attorney for the Commonwealth shall take legal action to
enforce the provisions of this article. Upon request of the Board, the Attorney General
shall take appropriate legal action on behalf of the Board to enforce the provisions of this
article.
H. Compliance with the provisions of this article shall be prima facto evidence in any
legal or equitable proceeding for damages caused by erosion or sedimentation that all
requirements of law have been met and the complaining party must show negligence in
order to recover any damages.
~ 10.1-56~.1. Stop work orders by Board, civil penalttes.~A. An aggrteved owner of
property sustatntng pecuntary damage resulting from a vtolatton of an approved plan or
required permit, or from the conduct of land-disturbing acttvtttes commenced without an
approved plan or requzred permtt, may gtve wrttten nottce of the alleged vtolatton to the
program authority and to the Director.
B. Upon recetpt of the nottce from the aggrieved owner and notification to the
program authority, the Director shall conduct an tnvesttgatton of the aggrieved owner's
complaint.
C. If the program authortty has not responded to the alleged vtolatton tn a manner
whtch causes the vtolatton to cease and abates the damage to the aggrte~ed owner's
property wtthtn thtrty days followtng receipt of the notice from the aggr~exJed owner, the
aggrieved owner may request that the Dtrector requtre the vtolator to stop the vtolatton
and abate the damage to hfs property
D If (t) the DirectorS' trt~,e.~ttgattort of the corttplatrtt trtdtcatc..~ that the prog. rarrt
authortty has not responded to the alleged vtolatton as requtred by the local program,
the program authority has not responded to the alleged vtolatton wtthtn thtrty days from
the date of the nottce gtven pursuant to s.bsectton A of this sectton, and (ti0 the Dtrector
ts requested by the aggrteved owner to requtre the violator to cease the vtolatton, then
the Dtrector shall g~ve written nottce to the program authorzty that the Dzrector
request the Board to tssue an order pursuant to subsectton E of thts sectton.
E. If the program authortty has not tnstttuted actton to stop the vtolatton and abate
the damage to the aggrzeved owner's property wtthzn ten days followtng receipt of the
nottce from the Director, the Board ts authortzed to tssue an order requiring the owner,
permtttee, person responstble for carrytng out an approved plan, or person conducttng the
land-dtsturbtng acttvtttes w~thout an approved plan or requtred permtt to cease all
land-dzsturbzng acttvtttes unttl the vtolatton of the plan or permtt has ceased, or an
approved plan and required permtts are obtatned, as approprtate, and spectfted corrective
measures have been completed.
F. Such orders are to be tssued only after a hearing wtth reasonable nottce to the
affected person of the time, place and purpose thereof, and they shall become effective
upon servtce on the person by certtfted mad, return recetpt requested, sent to hts address
specified in the land records of the locahty, or by personal dehvery by an agent of the
Dtrector. However, tf the Board fznds that any such violatton ts grossly affecting or
presents an tmmtnent and substanttal danger of caustng harmful eroston of lands or
sedtment deposztton tn waters wtthtn the watersheds of the Commonwealth, tt may tssue,
wzthout advance notzce or hearing, an emergency order dtrecttng such person to cease all
land-dtsturbtng acttvtttes on the stte tmmedtately and shall provide an opportunity for a
hearing, after reasonable notice as to the ttme and place thereof, to such person, to
affirm, modtfy, amend or cancel such emergency order.
G. If a person who has been issued an order or emergency order ts not complying
with the terms thereof, the Board may tnstttute a proceedtng tn the appropriate ctrcutt
court for an tn/unctton, mandamus, or other appropriate remedy compelhng the person to
comply with such order.
H. Any person vtolattng or fadtng, neglecting or refusing to obey any tnlunctton,
mandamus or other remedy obtatned pursuant to subsectton G of thts sectton shall be
subject, tn the dtscretton of the court, to a ctvtl penalty not to exceed $2,000 for each
vtolatton. Any czvzl penalttes assessed by a court shall be pard tnto the state treasury
President of the Senate
Approved:
Speaker of the House of Delegates
Governor
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Item III-tt. 4.
ORDINANCES/RESOL UTIONS
ITEM # 36927
Upon motion by Council Lady Parker, seconded by Councilman Moss, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Ordinance No. 93-2212F re
conservation of the public water supply pending completion of Lake
Gaston P~'peline Project.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf,, Nancy IC Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
APPI~VED A.S TO CON'[EMTS
CITY ATTORNEY
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AN ORDINANCE TO AMEND AND REORDAIN
ORDINANCE NO. 93-2212F, PERTAINING
TO THE CONSERVATION OF THE PUBLIC
WATER SUPPLY PENDING COMPLETION OF
THE LAKE GASTON PIPELINE PROJECT
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Ordinance No. 93-2212F, pertaining to the conservation of
the public water supply pending completion of the Lake Gaston
Pipeline Project, be, and hereby is, amended and reordained, and
shall read as follows:
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Section 1. Declaration of emergency.
There is hereby declared to exist within the City of Virginia
Beach an emergency arising out of a shortage of public water
supplies.
Section 2.
Prohibition of new connections to the public
water supply system.
Except as provided in Section 3 of this ordinance, there shall
be no new connections to the City water system until such time as
the Lake Gaston Pipeline Project, including its intake and
conveyancing facilities and their appurtenances, is substantially
complete.
Section 3. Exemptions.
Notwithstanding the provisions of Section 2 of this ordinance,
connections to the City water system will be allowed, but not
required, in the following cases if all other requirements of law
pertaining to such connections have been met:
(a) Lots abutting a City water main on February 11, 1992,
where the owner or his predecessor in title has directly
participated in paying the cost of constructing the main; provided,
however, that the total water demand resulting from development of
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(3) The Director of Public Utilities shall determine,
based upon sound engineering practices and
considerations of public safety, whether the water
distribution system shall be kept in service for
fire protection and system reliability only or
maintained in a dry condition;
(4) The developer shall be responsible for all work
required to obtain the City's final acceptance of
the system and all costs associated therewith,
including, but not limited to, flushing, testing,
repair, replacement, restoration, and inspection.
(5) A performance bond or other surety, in a form
satisfactory to the City Attorney and in an amount
of no less than twenty (20) per cent of the total
construction cost of the water distribution system
shall be required. Such bond or other surety shall
remain in full force and effect until such time as
connection to the City water system is fully
integrated and the water distribution system is
accepted by the City.
Section 5. Deferral of neighborhood water projects.
~ Neighborhood water projects funded in the Capital
Improvements Program ~ .............. -~ ~'~-"' ~ ~' ~'~'~ ~ "'~ ~""
contemporaneous construct~J-~,,, shall not be constructed during the
period in which this ordinance remains in effect; ~ ....... ,
,,.~ '...4. A A ~. '~,~ ,,,,,A ,.~. ,~' ,,.,.~ ',,,.,,. '~ V '~,,- ~. &..~ ,.~y ,....~ '~.,. '~..,. A I, I, ~.,.~
,L.~,.~. '~,.~,L..~,.~J,. '~,...,.,&y ',,.,~v'~ A a.,,,.,-.~. ~ J--AZ
except under the following conditions:
( 1 ) A sanitary sewer proj eot is scheduled for
contemporaneous construction or construction of the
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water distribution system only provides fire
protection or system reliability;
(2) The Director of Public Utilities shall determine,
based upon the application of sound and generally-
accepted engineering practices, whether the water
distribution system is to be maintained in a dry
condition or placed in service for fire protection
or system reliability purposes only; and
(3) Except as otherwise provided in this ordinance,
connections of individual lots to the city water
supply system shall not be permitted.
Section 6. Prohibition of certain uses of the public
water supply.
In accordance with Section 37-21 of the City Code, the City
Manager is hereby authorized and directed to order the prohibition
of the following uses of the public water supply:
(a) Watering of shrubbery, trees, lawns, grass, plants or
other vegetation, except from a watering can or other
container not exceeding three (3) gallons in capacity;
(b) Washing of automobiles, trucks, trailers or any other
type of mobile equipment, except in facilities operating
with a water recycling system approved by the City, or
except from a bucket or other container not exceeding
three (3) gallons in capacity; provided, that any
facility operating with an approved water recycling
system must prominently display, in public view, a sign
stating that such a recycling system is in operation;
(c) Washing of sidewalks, streets, driveways, parking areas,
service station aprons, exteriors of homes, apartments,
commercial or industrial buildings or any other outdoor
surface, except from a bucket or other container not
exceeding three (3) gallons in capacity;
(d) The operation of any ornamental fountain or other
structure making a similar use of water;
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(b) Such plans have expired and re-approval has been
requested, in writing, on or before February 28, 1992, and
construction of the water distribution system serving such
development commences or is bonded by April 30, 1992; or
(c) Such plans pertain to a development which is the subject
of a site plan which has been submitted as of the date of adoption
of this ordinance, where construction of such system commences or
is bonded by April 30, 1992.
Section 10. Conditional use permits.
No conditional use permit granted by the City Council shall
become void by reason of failure to commence the construction or
use authorized by such conditional use permit within the period of
time set forth in Section 221 of the City Zoning Ordinance, if such
failure is the result of the application of the provisions of this
ordinance to the property to which the conditional use permit
pertains. In such cases, use or construction in accordance with
the terms of the conditional use permit must commence within six
(6) months of the date upon which the property becomes eligible for
connection to the City water system or the conditional use permit
shall be void.
This ordinance shall supersede Ordinance No. 92-2212F, adopted
by the City Council of the City of Virginia Beach on April 27,
1993.
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Adopted by the Council of the City of Virginia Beach on the
22 day of June , 1993.
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CA-93-5151
\Ordin\Noncode \Weoamd. orn
R-2
June 10, 1993
-17-
Item III-H. 5.
ORDINANCES~RES OL UTIONS
ITEM # 36928
The following registered in OPPOSITION:
John Parmele, 1316 Yawl Point, Phone: 481-1259
Lou Pace, 1098 Hunts Neck Court, Phone: 468-0925
Harry Bryant, 1033 Thicket Wynd, Phone: 460-3365
Upon motion by Vice Mayor Sessoms, seconded by Councilman Jones, City Council ADOPTED:
Ordinance approving and accepting terms and conditions of water supply
and water services contracts with the City of Norfolk; authorizing and
directing the City Manager to execute, on behalf of the City of Virginia
Beach, such contracts upon subsequent approval of an appropriate
budget amendment providing for the purchase of water from the City of
Norfolk; and, to AMEND and REORDAIN Section 37-47 of the Code
of the City of Virginia Beach, Virginia, re water usage rates.
Voting: 9-2
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, Robert W. Clyburn, Robert K.
Dean, Louis R. Jones, John D Moss, Mayor Meyera E. Oberndorf, Nancy
IC Parker and Vice Mayor William D. Sessoms, Jr.
Council Members Voting Nay:
James W. Brazier, Jr. and Paul J. Lanteigne
Council Members Absent.
None
June 22, 1993
Arr'~k.)VE:D A5 I'O CL..,',',,,. ,c
SIC~ATURE ~
/':" ¥ . ,.. 3
DI~PARTMENT
A~"~PRC)VE~'g AS TO LEGAL
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AN ORDINANCE APPROVING AND ACCEPTING TERMS AND
CONDITIONS OF A WATER SUPPLY CONTRACT AND
WATER SERVICES CONTRACT WITH THE CITY OF
NORFOLK AND AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE, ON BEHALF OF THE CITY OF
VIRGINIA BEACH, SUCH CONTRACTS UPON SUBSEQUENT
APPROVAL OF AN APPROPRIATE BUDGET AMENDMENT
PROVIDING FOR THE PURCHASE OF WATER FROM THE
CITY OF NORFOLK AND TO AMEND AND REORDAIN
SECTION 37-47 OF THE CODE OF THE CITY OF
VIRGINIA BEACH, PERTAINING TO WATER USAGE
RATES
WHEREAS, the City's current contract with the City of Norfolk
for the purchase of surplus water expires on June 30, 1993; and
WHEREAS, prior to completion of the Lake Gaston Water Supply
Project the continued purchase of surplus water from the City of
Norfolk is the only viable means of providing City water to the
citizens of the City of Virginia Beach; and
WHEREAS, upon completion of the Lake Gaston Water Supply
Project it will be necessary for the City of Norfolk to receive
water from Lake Gaston and to store, treat and transmit such water
to the City of Virginia Beach; and
WHEREAS, contracts for the interim purchase of surplus water
from the City of Norfolk and for the storage, treatment and
transmission of water from Lake Gaston have been negotiated, but
require the approval of the respective governing bodies of the
Cities of Norfolk and Virginia Beach; and
WHEREAS, such contracts are in the best interests of the
public health, safety and welfare of the citizens of the City of
Virginia Beach;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That the terms and conditions of the proposed Water Supply and
Water Treatment Contract with the City of Norfolk are accepted and
approved and the City Manager is hereby authorized and directed to
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execute, on behalf of the City of Virginia Beach, the attached
contracts with the City of Norfolk, upon subsequent approval of
this Council of an appropriate budget amendment providing for the
purchase of water from the City of Norfolk;
BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That Section 37-47 of the Code of the City of Virginia Beach,
pertaining to water usage rates, be, and hereby is, amended and
reordained, and shall read as follows:
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Section 37-47. Water usage rates prescribed.
In addition to the charges provided for in section 37-46, each
consumer shall pay for water usage the rate of ~ .... ~-~ ..... ~
d ninoty
¢~~"~ ~"~" ~ ~ three dollars and eleven cents ($3 11)
per thousand (1,000) gallons for 1992-1993, effective July 1, 1992~
three dollars and thirty-eight cents ($3.38) per thousand (1,000)
qallons for 1993-1994, effective July 1, 1993, and three dollars
and sixty-five cents ($3.65) per thousand (1,000) gallons for 1994-
1995, effective July 1, 1994.
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Adopted by the Council of the City of Virginia Beach on the
22 day of June , 1993.
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CA-93-5176
~ORDIN~PROPOSED~37-047X. PRO
.June 9, 1993
R-1
Summary
.
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Virginia Beach-Norfolk Sales Contract
A contract to purchase surplus water from Norfolk for the next four years with two
"one" year options.
Standards for service are established (i.e. operating pressure, water quality, delivery
points, operation of the Norfolk system, etc.).
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Norfolk to sell 30 MGD if available (surplus), i.e. not a firm commttment to sell 30
MGD.
4. A cost methodology is established:
a. utility COSt of service, and
b. water charge based on value of service.
.
Virginia Beach will pay a part of the Norfolk water system cost i.e., that part
dedicated to serving Virginia Beach (based on the 30 MGD).
*Proposed Rate: $1.51 per 1,000 gallons for FY 94
.
Virginia Beach will pay a water charge based on the value of the water over and
above the cost of the water system.
*Proposed Water Charge
FY Per 1000 Gallons
94 60C
95 56C
96 52C
97 48C
.
o
Proposed wholesale rate: $1.51/1000 + $.60/1000 = $2.11 per 1000 gallons
Current Rate: $1.17 per 1000 gallons
.
Norfolk will not serve new raw or treated water customers or increase sales to
existing wholesale customers during the term of the contract or until Gaston ~s
operational.
10.
Norfolk will offer increased surplus water to V~rg~nia Beach ~f available (i.e., more
than 30 MGD).
11.
If Virgxnia Beach's water usage exceeds 30 MGD (annual average), then Virginia
Beach to pay a supplemental water charge for amounts over 30 MGD. The
supplemental water charge is three times the water charge (3 times $.60 per 1,000
gallons = $1.80 Per 1,000 gallons).
Example:
Virginia Beach uses 31 MGD (annual average) in FY 94
Supplemental Water Charge: $657,000
12.
Norfolk may terminate if V~rginia Beach does not pay monthly bill within 120 days or
V~rginia Beach wilfully and continuously breached the contract.
13.
If the contract is terminated, Virginia Beach may receive water for one year (if
avmlable) at two times the contract rates; after one year, at three times the contract
rates.
-2-
Summary
Virgima Beach-Norfolk Water Serwces Contract
.,
A long-term contract (expires 2030) that requires Norfolk to receive, convey, treat,
and deliver to Virginia Beach, water pumped from Lake Gaston.
2. The services contract is not a contract to purchase water.
3. Standards for service (receive, convey, treat, deliver) are established.
4. Virginia Beach is contracting for (leasing) water system capacity
- Raw Water Storage (lakes)
- Raw Water Pumping Stations & Transmission Lines
- Water Treatment Plant
- Treated Water Storage, Pumping, and Transmission
5. Lake Gaston water is for Virginia Beach.
6. Norfolk's water is for Norfolk (i.e., not a contract to purchase water).
7.
Contracting with Norfolk provides Virginia Beach with the lowest possible cost with
the highest reliability.
.
A cost methodology for service (i.e., receiving, conveying, treating, and delivering)
is established.
e
Virginia Beach will pay a part of the Norfolk water system cost; Virginia Beach to
pay for that portion of the water system dedicated to serving Virginia Beach.
10.
Contract becomes effective upon sigmng; all provisions of the contract become fully
operational when Gaston becomes operational and/or Norfolk water system
improvements are completed.
VIRGINIA BEACH
ESTIMATED WATER RATE
FY
Estimated Adjustments~
Rate
Per 1000
gallons
92-93 Existing Rate $3.11
93-94 +27C 3.38
94-95 +27C 3.65
95-96 +27C 3.92
96-97 No change 3.92
97-98 (-31C) 3.61
IChanges in federal water quality standards are expected to require significant water
treatment capital investment which will result in higher costs. These costs are currently
unknown and, therefore, are not included in the five-year for~ast.
Attachment I
VIRGINIA BEACH WATER/SANITARY SEWER
MONTHLY BILLING
Average Residential Bill' 6000 gallons per month
Estimated~
Average
Residential Increase
FY Billing $ Amount
% Increase
92 - 93 $33.44
93 - 94 35.06 $1.62 4.8 %
94 - 95 36.68 1.62 4.6
95 - 96 38.30 1.62 4.4
96 - 97 38.30 0 0
97 - 98 36.44 -1.86 -4.9
ZAn average of $.60 per month increase (1.8%) per year (a total of $3.00 per month, a
9 % increase over a five-year period).
Attachment II
NORFOLK
WATER RATES
Norfolk
Water Customers
(per 1000 gallons)
Current
FY94
FY95
Norfolk
(retail)
Navy
(wholesale)
Chesapeake
(wholesale)
Virginia Beach
(wholesale)
$1.64/1.53
.96
$1.64/1.53
$~.~7
$2.44
$2.06
$2.44
$2.11~
$2.74
$2.29
$2.74
$2.302
~Cost of Service
Water Charge
2Cost of Service
Water Charge
$1.51
.60
$2.11
$1.74
.56
$2.30
Attachment III
- 18 -
Item III-H. 6.
ORDINANCES/RESOL UTIONS
ITEM # 36929
Upon motion by Council Lady Parker, seconded by Councilman Clyburn, City Council ADOPTED:
Ordinance to authorize consolidation of landscape maintenance offices,
ADD fifty-two (52) grounds services unit positions to the FY 1993-1994
City Operating Budget and delete these same positions from the FY
1993-1994 School Operating Budget.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert I~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO AUTHORIZE CONSOLIDATION OF
LANDSCAPE MAINTENANCE OFFICES AND ADD 52 GROUNDS SERVICES UNIT
POSITIONS TO THE FY 1993-94 CITY OPERATING BUDGET
WHEREAS, it is desire of the City Council to consolidate Schools and
City functions where practicable to improve the efficiency and effectiveness of
services and to lower the costs of providing services;
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WHEREAS, the City Manager and the Superintendent of Schools believe that
the consolidation of landscape maintenance functions would improve the
efficiency and effectiveness of landscape maintenance services and would be
beneficial to both the City and Schools;
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WHEREAS, the City Manager and the Superintendent of Schools have signed
the attached Letter of Agreement that effects the consolidation of the landscape
maintenance functions;
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WHEREAS, 52 Grounds Services Unit positions will be deleted from the FY
1993-94 Schools Operating Budget and added to the FY 1993-94 City Operating
Budget in the General Services, Landscape Services Division.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA: That the City Manager be authorized to do all things
necessary to implement the provisions of the attached Letter of Agreement and
proceed with the consolidation of the City and Schools Landscape Maintenance
offices.
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NOW, BE IT FURTHER ORDAINED: That 52.0 Grounds Services Unit positions
be added to the 1993-94 City Operating Budget in the General Services, Landscape
Services Division.
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This ordinance shall be in effect from the date of its adoption.
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Adopted by the Council of the City of Virginia Beach, Virginia on the
day of June , 1993.
APPROVED AS TO CONTENT
Walter C.
O~. ~ Manageme~ and Budget
APi~ROVED AS TO,
i ~Gt\L SU,~f:ICIENC¥/
LETTER OF AGREEMENT
City Manager James K. Spore and School Superintendent Sidney L. Faucette believe that
consolidation of School and City Landscape Maintenance offices will improve the efficiency
and effectiveness of our services and will be beneficial to our clients. Therefore we have
agreed to the following:
·
52 Grounds Services Unit positions will be deleted from the School budget and
added to the City budget for FY 1993-94.
·
$1,806,991 plus $37,971 for general pay increases will be budgeted in the
School budget for Grounds Services and these funds will be transferred to the
City on July 1, 1993. All funds will be placed in appropriate City line item
accounts and monthly expenditure statements will be sent to the School
Superintendent. Any of these funds not spent at the end of FY 93-94 will be
credited to the School budget fund balance.
.
$131,000 will be added to the School budget by the City for grounds services
at three new schools sites; Tallwood High School, Landstown Middle
School/Elementary School, and Corporate Landing Elementary School.
4~
The 52 Grounds Services employees officially become City employees July 1,
1993 (under City's compensation and benefit plans, except employees will
remain on School's health and dental care plans through program year ending
December 31, 1993). The 52 employees will be treated the same as all other
City employees. In addition none of the positions occupied by these employees
will be abolished in FY 93-94.
Copies of School personnel files for the 52 Grounds Services employees will be
provided to the City upon signing of this agreement.
·
The City shall have complete control of the Grounds Services Unit including
supervision and authority to restructure and reorganize as necessary to realize
efficiencies·
·
A Review Committee will be created to evaluate the progress of the
consolidation of the Grounds Services Unit with the City and the quality of
services rendered to the schools during FY 93-94. This Committee shall be
made up of Andrew T. Carrington, W. L. Spence, Jr., David Grochmal and
Edward S. Barnes. The Committee shall meet as needed but at least quarterly.
.
The Grounds Services Unit will relocate from the School Plant facility to the
City's Euclid facility by July 1, 1993.
s K. sPore, City~l~anager
Date ~
e, School Superintendent
- 19 -
Item II!-tL 7.
ORDINANCES/RESOL UTIONS
ITEM # 36930
Lou Pace, 1098 Hunts Neck Court, Phone: 468-0925, spoke in OPPOSITION.
Upon motion by Councilman Baum, seconded by Vice Mayor Sessoms, City Council ADOPTED, AS
REVISED:
Ordinance to AMEND and REORDAIN Chapter 39 of the Code of the
City of Virginia Beach, Virginia, re Storm Water Management Utility.
*On Page 1, Line 24, the word "all" shall be deleted to read:
"..provide benefit and service to att properties within the City..."
Voting: 7-4
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Louis R. Jones, Paul J. Lanteigne, and Vice Mayor William D.
Sessoms, Jr.
Council Members Voting Nay:
Robert K. Dean, John D. Moss, Mayor Meyera E. Oberndorf and Nancy
K. Parker
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 39
OF THE CODE OF THE CITY OF VIRGINIA BEACH,
VIRGINIA PERTAINING TO THE STORM WATER
MANAGEMENT UTILITY
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3O
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That Chapter 39 of the Code of the City of Virginia Beach
be, and hereby is, amended and reordained to read as follows:
CHAPTER 39
STORM WATER MANAGEMENT UTILITY
Section 39-1. Findings and Determinations.
(a) The City of Virginia Beach has a unique topography which
has required development and maintenance of a system of man-made
and natural components of a storm water management infrastructure
to both limit and manage the volume of storm water to control flood
events and to prevent degradation of the City's waterways through
storm water quality management.
(b) Storm water run-off is associated with all improved
properties in the City, whether residential or non-residential and
the individual property impacts of run-off are correlated to the
amount of impervious surface on the property and land-disturbing
activities on property.
(c) The elements of the storm water management infrastructure
provide benefit and service to all properties within the City
through direct protection of property and through control of
flooding of critical components of the infrastructure and through
protection of the City's natural environment.
(d) The costs of monitoring, operating, maintaining, and
constructing the storm water system required in the City, both to
meet new regulations and to address identified flood event needs,
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should therefore be allocated, to the extent practicable, to all
property owners based on their impact on the storm water management
system.
Section 39-2. Definitions.
The following words and terms used in this section shall have
the following meanings:
(a) Equivalent Residential Unit or ERU means the equivalent
impervious area of a single family residential developed property
per dwelling unit located within the City based on the statistical
average horizontal impervious area of a single family residence in
the City. An Equivalent Residential Unit (ERU) equals 2,269 square
feet of impervious surface area.
(b) ERU Rate means the Utility fee charged on an Equivalent
Residential Unit as established by Council ordinance.
(c) Developed property means real property which has been
altered from its "natural" state by the addition of any
improvements such as buildings, structures, and other impervious
surfaces. For new construction, property shall be considered
developed pursuant to this Section upon: (a) Certification of the
final plumbing permit inspection; or (b) Certification of the final
building permit inspection for those facilities not requiring a
plumbing permit.
(d) Impervious surface area means a surface which is
compacted or covered with material that is highly resistant to
infiltration by water, including, but not limited to, most
conventionally surfaced streets, roofs, sidewalks, parking lots,
and other similar structures.
(e) Developed Residential property means a developed lot or
parcel containing at least one but no more than four residences or
dwelling units, and accessory uses related to but subordinate to
the purpose of providing permanent dwelling facilities. Such
property shall include houses, duplexes, triplexes, quadroplexes,
townhouses and mobile homes.
(f) Developed Multi-Family Residential property means
developed property containing more than four residences or dwelling
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units, and accessory uses related to but subordinate to the purpose
of providing permanent dwelling facilities. Such property shall
include apartments and condominiums.
(g) Developed Non-residential property means developed
property which does not serve a primary purpose of providing
permanent dwelling units. Such property shall include, but not be
limited to commercial properties, industrial properties, parking
lots, recreational and cultural facilities, hotels, offices and
churches.
(h) Revenues mean all rates, fees, assessments, rentals or
other charges or other income received by the Utility, in
connection with the management and operation of the system,
including amounts received from the investment or deposit of moneys
in any fund or account and any amounts contributed by the City,
fees-in-lieu-of provided by developers or individual residents, and
the proceeds from sale of Utility bonds.
(i) Storm water Management System or System means the storm
water management infrastructure and equipment of the City and all
improvements thereto for storm water control in the City.
Infrastructure and equipment shall include structural and natural
storm water control systems of all types including, without
limitation, retention basins, sewers, conduits, pipelines, pumping
and ventilation stations, and other plants, structures, and real
and personal property used for support of the system. The system
does not include privately owned farm ditches and other private
drainage systems.
(j) Storm Water Management Utility or Utility means the
enterprise fund created by this section to operate, maintain and
improve the City's storm water management system.
(k) Undeveloped property means any parcel which has not been
altered from its natural state to disturb or alter the topography
or soils on the property in a manner which substantially reduces
the rate of infiltration of storm water into the earth.
(1) Utility Fees means the monthly service charges based upon
the ERU Rate applied to property owners of Developed Residential
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Property, Developed Multi-Family Residential Property and Developed
Non-Residential Property, all as more fully described in Section
39-4.
(m) Agricultural Property means land used for the tilling,
planting or harvesting of aqricultural, horticultural or forest
crops or land used for raising livestock.
Section 39-3. Establishment of Storm water Management Utility.
(a) The Storm water Management Utility is established to
provide for the general welfare, health, and safety of the City and
its residents.
(b) The Utility shall deposit in a separate ledger account
all revenues collected pursuant to this Ordinance. The funds
deposited shall be used exclusively to provide services and
facilities related to the storm water management system. The
deposited revenues shall be used for the following:
(1) Acquisition of real or personal property, and
interest therein necessary to construct, operate and maintain storm
water control facilities;
(2) The cost of administration of such programs, to
include the establishment of reasonable operating and capital
reserves to meet unanticipated or emergency requirements of the
Utility;
(3) Engineering and design, debt retirement,
construction costs for new facilities and enlargement or
improvement of existing facilities;
(4) Facility maintenance;
(5) Monitoring of storm water control devices; and
(6) Pollution control and abatement, consistent with
state and federal regulations for water pollution control and
abatement.
Section 39-4. Imposition of Utility Fees.
Adequate revenues shall be generated to provide for a balanced
operating and capital improvement budget for maintenance of the
Storm water Management System by setting sufficient levels of
Utility Fees. Income from Utility Fees shall not exceed actual
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costs incurred in providing the services and facilities described
in Section 39-3. Effective July 1, 1993, Utility Fees shall be
charged to owners of all developed property in the City.
(a) For purposes of determining the Utility Fee, all
properties in the City are classified into one of the following
classes:
(1) Developed Residential Property;
(2) Developed Multi-Family Residential Property;
(3) Developed Non-Residential Property; or
(4) Undeveloped Propertyvl or
(5) Agricultural Property.
(b) The monthly Utility Fee for Developed Residential
Property shall equal the ERU Rate. Provided, however, where more
than one residence or dwelling unit is located on a single lot or
parcel the owner of the lot or parcel shall be charged a Utility
Fee which is equal to the ERU Rate multiplied by the number of
residences or dwelling units located on the lot or parcel.
(c) The monthly Utility Fee for Developed Multi-Family
Residential Property shall be the ERU Rate multiplied by the
numerical factor obtained by dividing the total impervious surface
area of a Developed Multi-Family Residential Property by one ERU
(2,269). The numbered factor will be rounded to the nearest tenth
(0.1) of a unit.
(d) The monthly Utility Fee for Developed Non-Residential
Property shall be the ERU Rate multiplied by the numerical factor
obtained by dividing the total impervious surface area of a
Developed Non-Residential Property by one ERU (2,269). The
numbered factor will be rounded to the nearest tenth (0.1) of a
unit. The minimum Utility Fee for any Developed Non-Residential
Property shall equal the ERU rate.
(e) The Utility Fee for vacant developed property, both
residential and non-residential, shall be the same as that for
occupied property of the same class.
(f) Undeveloped Property shall be exempt from the Utility
Fee.
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~ Agricultural Property shall be exempt from the Utility
Fee. Provided however, each developed residential unit situated on
a parcel devoted to agricultural use shall be charged a fee equal
to the ERU Rate.
Section 39-5. Billing and Payment, Interest, Liens.
The Utility Fee is to be paid by the owner of each lot or
parcel subject to the Utility Fee. Utility Fees for condominium
units, if requested by the condominium association, shall be
charged to the condominium association. Ail properties, except
Undeveloped Property, shall be rendered bills or statements for
.... t~ Works.
storm water services by the Department of Public "~i~ ~A_
The bills or statements shall include a date by which payment shall
be due. Ail bills or statements shall be mailed at least thirty
(30) days prior to the payment due date stated thereon. Payments
received after the due date of the bill shall be subject to
interest at a rate established by ordinance of the City Council.
(a) Billing for the Utility Fee shall be rendered on a
quarterly basis, in advance, to all chargeable property owners and
shall represent charges for each month of the succeeding quarter of
storm water service, and any unpaid balances and interest on an
account.
(b) Any bill which has not been paid by the due date shall be
deemed delinquent and the account shall be collected by the
Department of Public Utilities Works. Ail payments and interest
due may be recovered by action at law or suit in equity. Unpaid
fees and interest accrued shall constitute a lien against the
property, ranking on a parity with liens for unpaid taxes.
(c) In the event charges are not paid when due, interest
thereon shall commence on the due date and accrue at the rate
established by Ordinance of the City Council until such time as the
overdue payment and interest is paid.
(d) When Developed properties are brought into the Utility,
fees will accrue commencing with the release of the final plumbing
inspection for the property. In the absence of a plumbing
inspection, Utility Fees will accrue commencing with release of the
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final building inspection for the property. A bill will be issued
in the next billing cycle and will be prorated for the number of
full months in which service was provided.
(e) In the event of alterations or additions to Developed
Multi-Family property or Developed Non-residential property which
alter the amount of impervious surface area, the Utility Fees will
be adjusted upon release of the final plumbing inspection. In the
absence of a plumbing inspection, Utility Fees will be adjusted
upon release of the final building inspection. A bill will be
issued in the next billing cycle and will be prorated for the
number of full months in which service was provided.
8ection 39-6. Adjustment of Fees, Exemptions.
(a) Full waiver of the Utility Fee shall be provided to
properties owned by federal, state, and local government agencies
when those agencies own and provide for maintenance of storm
drainage and storm water control facilities.
(b) Any owner who has paid his Utility Fees and who believes
his Utility Fees to be incorrect may submit an adjustment request
to the City Manager or his designee. Adjustment requests shall be
made in writing setting forth, in detail, the grounds upon which
relief is sought. Response to such adjustment requests, whether
providing an adjustment or denying an adjustment, shall be made to
the owner by the City Manager or his designee within sixty (60)
days of receipt of the request for adjustment.
Section 39-7. Severabilit¥.
The provisions of this ordinance shall be deemed severable,
and if any of the provisions hereof are adjudged to be invalid or
unenforceable, the remaining portions of this ordinance shall
remain in full force and effect and their validity unimpaired.
Adopted by the Council of the City of Virginia Beach,
Virginia, on this 22 day of June , 1993.
CA-93-5195
\ORDIN\PROPOSED\39-001ET.ORD
R-2
June 17, 1993
- 20 -
Item III-H. 8.
ORDINANCES/~SOL UTIONS
ITEM # 36931
Lou Pace, 1908 Hunts Neck Court, Phone: 468-0995, spoke in OPPOSITION.
Upon motion by Vice Mayor Sessoms, seconded by Councilman Clyburn, City Council ADOPTED:
Resolution to adopt a Storm Water Management Utility-Fee Adjustment
Policy.
Voting: 7-4
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Louis Pu Jones, Paul J. Lanteigne, and Vice Mayor William D.
Sessoms, Jr.
Council Members Voting Nay:
Robert IC Dean, John D. Moss, Mayor Meyera E. Oberndorf and Nancy
IC Parker
Council Members Absent:
None
June 22, 1993
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A RESOLUTION TO ~DOPT A STORM WATER
MANAGEMENT UTILITY-FEE ~DJUSTMENT POLICY
WHEREAS, pursuant to an ordinance adopted on December 1,
1992, the City Council of the City of Virginia Beach, Virginia, has
established a Storm Water Management Utility; and
WHEREAS, fees charged by the Storm Water Management
Utility are to be calculated based upon the contribution to storm
water runoff generated by developed real property which is subject
to utility fees; and
WHEREAS, the City council desires to adopt a fee
adjustment policy to have application in the administration of the
Storm Water Management Utility.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That the attached Storm Water Utility-Fee Adjustment Policy
shall be implemented by the City Manager or his designee and shall
govern all requests for and determinations concerning storm water
utility fee adjustments.
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ADOPTED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, ON THIS 22 DAY OF June , 1993.
APFPO',/~:) AS TO t ""C'A~
- 21 -
Item III-H. 9.
ORDINANCES~RESOLUTIONS
ITEM # 36932
Upon motion by Vice Mayor Sessorns, seconded by Council Lady Parker, City Council ADOPTED:
Resolution approving the issuance of Refunding Revenue Bonds (Beach-
Oxford Associates ProjecO in behalf of the Suffolk Redevelopment and
Housing Authority, not to exceed $18,650,000.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert I~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy I~ Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
FISCAL IMPACT STATEMENT
CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY
(BEACH-OXFORD ASSOCIATES PROJECT)
Date: May 18, 1993
TO: THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
PROJECT NAMEs
TYPE OF
FACILITY:
Beach-Oxford Associates Limited Partnership, a
Maryland limited partnership
An approximately 365,748 square foot 440-unit
multi-family residential rental project located at
100 Runaway Bay Drive in Virginia Beach, Virginia
1. Maximum amount of financing sought:
$18,650,000
·
Taxable value of the facility's real
property to be constructed in the
municipality
$16,091,240
·
Real property tax per year using
present tax rates
$ 175,394
·
Personal property tax per year
using present tax rates
$ N/A
·
Merchants' capital tax per year
using present tax rates
$ N/A
·
Estimated dollar value per year of
goods and services that will be
purchased locally
$ 540,000
·
Number of regular employees on year
round basis
13
8. Average annual salary per employee
$ 18,417
The information contained in this Statement is based solely
on facts and estimates provided by the Applicant, and the
Authority has made no independent investigation with respect
thereto.
Chairman, City of Virginia Beach
Development Authority
65Z06.1/GRF :~E
RESOLUTION APPROVING THE
ISSUANCE OF REFUNDING REVENUE BONDS
(Beach-Oxford Associates Project)
WHEREAS, the City of Virginia Beach Development Authority
(the "Development Authority"), has considered the application of
Beach-Oxford Associates Limited Partnership, a Maryland limited
partnership (the "Developer") to the Suffolk Redevelopment and
Housing Authority (the "Housing Authority") for the issuance of
the Housing Authority's refunding revenue bonds in an amount not
to exceed $18,650,000 (the "Bonds") to refund all or a portion of
the Housing Authority's $18,650,000 Floating Rate Monthly Demand
Multi-Family Housing Revenue Bonds, Series 1984 (Beach-Oxford
Apartments Project) (the "1984 Bonds") issued to assist ~n the
financing of the acquisition and construction by the Developer of
,
a 440-unit multi-family residential rental project on a 24.5 acre
site which is located at 100 Runaway Bay Drive in the City of
Virginia Beach, Virginia (the "Project") and has held a public
hearing thereon on May 18, 1993; and
WHEREAS, the Development Authority has requested the City
Council (the "Council") of Virginia Beach, Virginia (the "City")
to approve the refunding of the 1984 Bonds and issuance of the
Bonds by the Housing Authority to comply with Section 147(f)(2)
of the Internal Revenue Code of 1986, as amended, and proposed
final Treasury regulations issued thereunder; and
WHEREAS, a copy of the Housing Authority's resolution
approving the issuance of the Bonds, and a copy of the
Development Authority's resolution recommending approval of the
Bonds by the Council, subject to terms to be agreed upon, and a
record of the public hearings held thereon has been filed with
the Clerk of the Council;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIAs
1. The Council of the City of Virginia Beach, Virginia,
approves the refunding of the 1984 Bonds and further approves
issuance of the Bonds by the Housing Authority for the benefit of
the Developer, to the extent of and as required by Section
147(f)(2) of the Internal Revenue Code, to permit the Housing
Authority to refund the 1984 Bonds.
2. The approval of the issuance of the Bonds, as required
by Section 147(f)(2) of the Internal Revenue Code, does not
constitute an endorsement of the Bonds or the creditworthiness of
the Developer, and the Bonds shall provide that neither the City,
the City of Suffolk, the Development Authority nor the Housing
Authority shall be obligated to pay the Bonds or the interest
thereon or other costs incident thereto except from the revenues
and moneys pledged therefor, and neither the faith or credit nor
the taxing power of the Commonwealth, the City, the City of
Suffolk, the Development Authority or the Housing Authority shall
be pledged thereto.
3. This Resolution shall take effect immediately upon its
adoption. Adopted by the Council of the City of Virginia Beach~
dune 22,
Virginia on , 1993.
#6516,T:June l&, 1993:we
AP?ROVED AS -.C LEGAl
- 22 -
Item III-L
CONSENT AGENDA
ITEM # 36933
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council APPROVED in
ONE MOTION items 2, 3, 4, 5, 6, 7, 8 a.b., 9, 10, 11, 12, 13 and 14.
Item 1 was DEFERRED FOR BRIEFING JULY 6, 1993, and Resolution ON JULY 13, 1993, CITY
COUNCIL SESSIONS.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 23 -
Item III-L 1.
CONSENT AGENDA
ITEM # 36934
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council DEFERRED until
the City Council Session of July 13, 1993. A BRIEFING shall be SCHEDULED for the City Council
Session of July 6, 1993.
Resolution authorizing City Manager to enter into agreement
with the City of Chesapeake regarding usage of the Tidewater
Detention Home, consistent with the FY 1993-1994 Operating
Budget.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood 0 Branch, III, James W Brazier, Jr., Robert W..
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 24 -
Item III-L2.
CONSENT AGENDA
ITEM # 36935
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Sections 4-85, 4-87. l,
4-88, 4-90, 4-91, 4-92, 4-92.2, and 4-93 of the Code of the
City of Virginia Beach, Virginia, and ADD a new Section 4-
89.1 re bingo games.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert I~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy I~ Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AFPROVED A5 . '..;, ! ~."L"..~ L
'~JJ~I~IENCY/.~..~,~/~. -.~ Ah,~b FOurth.
SECTIONS 4-85, 4-87.1~ 4-88~ 4-90., J~Y ATTORNEY
4-91~ 4-92, 4-92.2, .,IM'ID 4-93 OF THE
VIRGINIA, AND ADD A NEW SECTION 4-
89.1, PERTAINING TO BINGO GAMES.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Sections 4-85, 4-87.1, 4-88, 4-90, 4-91, 4-92, 4-92.2,
and 4-93 of the Code of the City of Virginia Beach, Virginia, are
hereby amended and reordained and Section 4-89.1 is hereby added to
read as follows:
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Section 4-85. Application of article.
(a) The provisions of this article shall apply to bingo games
and raffles conducted in the city pursuant to sections 18.2-340.1
through 18.2-340.12 of the Code of Virginia.
(b) Definitions. As used in this article the following words
shall have the following meanings:
(1) Organization means any one of the following:
a. A voluntary fire department or rescue squad or
auxiliary unit thereof which has been
recognized by an ordinance or resolution of a
political subdivision where the voluntary fire
department or rescue squad is located as being
a part of the safety program of such political
subdivision.
b. An organization operated exclusively for
religious, charitable, community or
educational purposes, an association of war
veterans or auxiliary units of such veterans
organized in the United States, or a fraternal
association operating under the lodge system.
(2) Bingo means a specific game of chance played with
individual cards having randomly numbered squares
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ranging from one (1) to seventy-five (75), in which
prizes are awarded on the basis of designated
numbers on such cards conforming to a predetermined
pattern of numbers selected at random. Such cards
shall have five (5) vertical rows headed
respectively by the letters B.I.N.G.O., with each
row having five (5) randomly numbered squares.
(3) Raffle means a lottery in which the prize is won by
a random drawing of the name or prearranged number
of one or more persons purchasing chances.
However, nothinq in this article shall prohibit an
organization from using the State Lottery
Department's Pick-3 number as the basis for
determininq the winner of a lottery. For purposes
of this definition, "raffle" shall include
determining the winner of a lottery by use of
prepackaged pull-tab devices which are devices made
completely of paper or paper products with
concealed numbers or symbols that must be exposed
by the player to determine wins or losses and may
include the use of a seal which conceals a number
or symbol that has been designated in advance as
prize winner including but not limited to pull-tab
devices commonly known as tip boards or seal cards.
(4) Instant bingo means a specific game of chance
played by the random selection of one or more
individually prepacked cards, with winners being
determined by the preprinted appearance of the
letters B.I.N.G.O. in any prescribed order on the
reverse side of such card.
(5) Special bingo means a bingo session conducted
pursuant to a separate permit authorizing bingo
games more frequently than two (2) calendar days in
any one (1) calendar week.
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(6) Jackpot means a bingo card played as a part of a
bingo game in which all numbers on the card are
covered, each number being selected at random, and
with no free or "wild" numbers.
(7) Winner-take-all means any bingo game in which all
the gross receipts from players for that game are
paid as prize money back to the players.
(8) Session means a time period during which one (1) or
more bingo games are conducted, such time period
corresponding precisely to the time period
specified by the organization's reported beginning
and ending times.
(9) Gross receipts means the total amount of all money
received from bingo games, instant bingo or raffle
operations before the deduction of any expenses
whatsoever.
(10) Expenses means documented expenditures usually and
customarily associated with the conducting of bingo
games or raffles including but not limited to
supplies, equipment, rental fees, permit fees,
prizes and audit fees.
(11) Games manager or operator is a member responsible
for all workers and for the conduct of each
session, including all record keeping requirements.
(12) Cashier is a member responsible for controlling and
settling game gross receipts and game operating
costs for a session.
(13) Caller is a member responsible for calling bingo
numbers and verifying the call back of a player's
bingo by a floorworker.
(14) Specials custodian is a member responsible for
controlling and settling special packages sold at
the time of admission and floorsales (specials)
during sessions.
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(15) Floorworkers are members responsible for floorsales
(specials) and bingo verification.
(16) Paymaster is a member responsible for awarding
bingo prizes.
(17) Bingo halls or bingo hall operations means any
location, building, premises, or any place where
bingo sessions or raffles are held, conducted or
take place excluding property owned by an
organization.
(18~ Duck race means a game of chance played by
releasing numbered, inanimate toys (ducks) into a
body of moving water. A person who has been
assigned the same number as the first duck to cross
a predetermined point in the water (the finish
line) is the winner. Other prizes may be awarded
on the basis of the order in which the ducks cross
the finish line. Any and all restrictions and
requirements applicable to the conduct of raffles
in this article shall also apply to the conduct of
duck races.
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Section 4-87.1. Membership; eligibility for permit.
Prior to the issuance of any permit, an organization must meet
the following requirements:
(1) Such organization shall have been in existence and met on
a regular basis in the city of Virginia Beach or in a
city adjacent to the City of Virginia Beach, for a period
of at least two (2) years immediately prior to making
application for such permit. Such organization shall
maintain for the current year and at least three (3)
preceding years records (minutes, attendance, etc.) of
all meetings and, in addition for the same period shall
maintain such records pertinent to the maintenance of its
bingo and raffle permits, which records shall be made
available to the officials of the city upon request. The
city manager shall waive the requirement of three (3)
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years' records for organizations in existence for two (2)
but less than three (3) years.
(2) Such organization shall be operated currently and shall
have previously been operated exclusively as a nonprofit
organization and shall have been in existence as such
nonprofit organization for a period of at least two (2)
years immediately prior to seeking a permit.
(3) A permit may be issued to an organization which relocates
its meeting place on a permanent basis from another
jurisdiction in Virginia to this city, provided that such
organization was the holder of a valid bingo and/or
raffle permit at the time of such relocation, maintains
all records pertinent to holding a permit and is
currently otherwise eligible to be issued a permit in
accordance with this chapter. An organization which has
obtained a permit under this article to conduct a raffle
may sell tickets both in and out of this city, and may
conduct its drawinq either in this city or in the
jurisdiction where the majority of tickets were sold.
(4) Any auxiliary or similarly named organization having a
direct relationship with a sponsoring organization shall
obtain a permit prior to conducting bingo sessions. An
auxiliary shall demonstrate to the satisfaction of the
city manager a history of involvement in charitable
activities, other than sponsoring bingo sessions and
lotteries, as a condition precedent to being granted an
original or renewal permit. No more than one auxiliary
of any sponsoring organization shall be eligible for
issuance of a permit.
(5) As part of the application process and prior to being
granted a bingo or raffle permit an organization shall
provide a complete list of its officers and those members
designated by the organization to manage, conduct or
assist in any capacity in the operation of bingo games or
raffles. Information sufficient to establish the bona
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fides of membership may be required by the city manager.
The chief of police or his designee shall conduct a
criminal records check of all officers as well as the
game manager or operator, cashier and paymaster. Members
added after the issuance of a permit shall not be
permitted to serve as games manager, cashier, caller,
specials custodian or paymaster until the permit is
renewed or amended.
(6) No bingo or raffle permit shall be issued to any
organization wherein (a) any officer or (b) any person
designated as bingo game manager or operator, cashier,
caller, specials custodian, floorworker or paymaster has
been convicted of a felony or crime of moral turpitude.
Further, no person shall participate in the manaqement,
operation or conduct of any bingo or raffle if that
person, within the past five years, has participated in
the management, operation or conduct of any bingo game or
raffle which was found by a local permitting authority or
by a court of competent jurisdiction to have been
operated in violation of state law or local ordinance.
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Section 4-88. Annual report of receipts and disbursements;
additional reports.
An annual report of all receipts and disbursements shall be
filed pursuant to section 18.2-340.6 of the Code of Virginia by
every organization conducting bingo games and raffles in the city.
Such annual report shall be filed with the d~-~o.~ cf .~n~ ..... ....
commissioner of the revenue on or before the first day of ~
December of each calendar year for which a permit has been issued.
However, any organization whose gross receipts exceed fifty
thousand dollars ($50,000.00) during any calendar quarter shall be
required to file an additional accounting of its receipts and
disbursements during such quarter no later than sixty (60) days
following the last day of such quarter. Ail such reports so filed
shall be audited by the~~-~~ ~ ~..~..~ ..... commissioner of the
revenue or his designee.
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Section 4-89.~. Independent audit; requirement.
Any organization having annual gross receipts from bingo games
or raffles in excess of two hundred and fifty thousand dollars
($250,000), as shown on its annual financial report, shall attach
to such report an opinion of a licensed independent certified
public accountant that (i) the annual financial report presents
fairly, in all material respects, beginning cash, receipts,
operatinq cost, use of proceeds, and endinq cash; (ii) the proceeds
of any bingo games or raffles have been used, in all material
respects, for those lawful, religious, charitable, community, or
educational purposes for which the organization is specifically
chartered or organized; and (iii) the gross receipts have been used
in all material respects in accordance with the provisions of this
article. However, the requirement for such independent auditor's
opinion may be waived by the commissioner of the revenue, provided
that the organization shall submit the annual report and
supplemental reports required by section 4-88, utilizing the format
and procedures specified by the commissioner of the revenue or his
designee, and provided, further, that such reports are complete and
all moneys are properly accounted for.
Section 4-90. Unannounced audits; securing of records.
Notwithstanding the provisions of this article requiring an
annual or quarterly audit, the director of finanoc commissioner of
the revenue or his designee and the chief of police or his designee
is hereby authorized to perform unannounced audits or secure any
records required to be maintained by the provisions of Section
18.2-340.6, Code of Virginia. Any such official shall have the
authority to go upon the premises on which any organization is
conducting a bingo game for the purpose of carrying out the duties
imposed by this article. The chief officer or treasurer of any
organization which has been issued a bingo or raffle permit shall,
within twenty-four (24) hours after receipt of written notice from
any above named official, make available any records which are not
maintained on the premises where games are conducted.
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Section 4-91. Prize limits.
(a) No organization shall award any prize money or any
merchandise valued in excess of the following amounts:
(1) No door prize shall exceed twenty-five dollars
($25.00). Raffle tickets for any prize exceeding
twenty-five dollars ($25.00) may not be distributed
without charge to players to circumvent this
limitation.
(2) No regular bingo or special bingo game shall exceed
one hundred dollars ($100.00).
(3) No instant bingo prize for a single card shall
exceed five hundred dollars ($500.00).
(aA) No jackpot of any nature, whatsoever, shall exceed
one thousand dollars ($1,000.00), and
(4~) No raffle grand prize or raffle prize of any
nature, whatsoever, shall exceed one hundred
thousand dollars ($100,000.00), nor shall the total
amount of all prizes given away during all raffles
conducted in any one calendar year exceed one
hundred thousand dollars ($100,000.00).
The award of any such prize money shall not be deemed to be
part of any gaming contract within the purview of section 11-14 of
the Code of Virginia.
(b) The total amount of bingo jackpot prizes awarded in any
one calendar day shall not exceed one thousand dollars ($1,000.00).
(c) Bingo games in which all the gross receipts from players
for that game are paid as prize money back to the players shall be
permitted, but there shall not be more than one (1) such game per
calendar day, per organization, and the prize money for any such
"winner-take-all" game shall not exceed one thousand dollars
($1,ooo.oo).
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Section 4-92. Records to be maintained and reports to be filed by
organizations conducting bingo games and raffles.
(a) Each organization shall maintain a record in writing of
the dates on which bingo is played, the number of people in
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attendance on each date and the amount of the receipts and expenses
for the day and prizes paid on each such day. The organization
shall also maintain a record of the name and address of each
individual to whom a door prize, regular or special bingo game
prize, raffle or jackpot from the playing of bingo or raffle is
awarded, as well as the amount of such award. The organization
conducting bingo games or raffles shall also maintain an itemized
record of all receipts and disbursements, including operating costs
and use of proceeds incurred in such games or raffles, utilizing a
uniform accounting system and report format provided by the
director of finance. Said records shall be furnished to the
director of finance or his designee upon request.
(b) Each organization shall maintain a separate checking
account into which shall be placed all receipts from bingo games
and raffles. Monies from other sources shall not be placed or
deposited into such account; neither shall monies from said account
be transferred into any fund or account containing monies from
other sources. Bingo/raffle proceeds may be maintained in an
interest-bearing fund or account, however, such funds shall be
transferred to the checking account prior to disbursement.
Withdrawals from said checking account shall be made only by
utilizing printed, sequentially numbered checks. All disbursements
from such accounts shall be supported by written documentation as
set forth in subsection (a) above. An organization conducting no
more than one (1) raffle per fiscal year with net game receipts not
exceeding five thousand dollars ($5,000.00) shall be exempt from
the requirements of this paragraph.
(c) A sponsoring organization shall be responsible for
maintaining records which support the purchase and sale of regular
bingo cards (handcards and papercards) and instant bingo cards.
(d) All invoices related to the purchase of bingo supplies
shall be kept in date order for three (3) years following the close
of the fiscal year to which the records apply.
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(e) Ail purchases of bingo supplies in excess of ten dollars
($10.00) shall be paid for by check; cash receipts for all other
purchases of supplies shall be retained.
(f) The recordkeeping system shall provide a way to account
for tickets used to control regular bingo handcard sales, regular
bingo papercards purchased and sold, and instant bingo cards
purchased and sold, and prizes awarded on session dates.
(g) All prizes of more than one hundred dollars ($100.00)
shall be paid by checks drawn on the organization's bingo checking
account. Said checks shall be bank checks printed and sequentially
numbered. The organization's checking records shall reflect the
name and social security account number of each such prize
recipient. All other prizes shall be receipted for by the winners,
recording each recipient's printed name, address and social
security number. Any prize winner or recipient who shall provide
a false name, address or social security number when receipting for
payment shall be guilty of a Class 1 misdemeanor.
(h) On an annual basis, and no later than December 31 of each
calendar year, all monies, in excess of fifteen (15) percentum of
the total net receipts (gross receipts minus game expenses) from
bingo or raffles conducted during the past fiscal year, shall be
donated to and/or expended upon charitable activities/projects.
The ~~-
d ....... of finance commissioner of the revenue or his
representative may approve the carryover and accumulation of funds
designated for specific charitable projects. Such accumulation
shall not normally exceed a period of two (2) additional fiscal
years; however, the_~-~-~-~~ ~ f~..~..~ ..... commissioner of the revenue
may approve a longer period in exceptional circumstances. A fiscal
year shall be the twelve-month (12) period from October 1 through
September 30. Complete records of such expenditures shall be
maintained at all times by organizations holding permits to conduct
bingo or raffles.
(i) Should an organization cease for any reason to be
licensed to conduct bingo games or raffles, all accumulated net
receipts (gross receipts minus game expenses) shall be expended for
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appropriate charitable activities or projects not more than ninety
(90) days after termination of the license, and a final report of
all receipts and disbursements as set forth in section 18.2-340.6
of the Code of Virginia shall be filed with the director of finance
not more than one hundred twenty (120) days after said termination.
(j) All required records shall be maintained with the
permanent records of the organization for a minimum of three (3)
years after the close of a fiscal year to which they apply. If any
required records are lost, stolen, or otherwise misplaced or
destroyed, the organization shall notify the director of finance in
writing within two (2) days of discovering the missing records
giving the date of loss, a detailed description of the records
missing, and the circumstances surrounding the missing records.
Section 4-92.2. Instant Bingo.
Any organization qualified to conduct bingo games and
possessing a valid current permit is authorized to conduct instant
bingo as a part of such bingo game, subject to the following
conditions:
(1) Instant bingo may be conducted only at such location and
at such times as are specified in the bingo application
permit for regular bingo games.
(2) The gross receipts in the course of a reporting year from
instant bingo shall not eed ~-~"-~ ..... ~ .... ~~
'°°~' fifty (50) percentum of the gross receipts of an
organization's entire bingo gross receipts.
(3) Any organization conducting instant bingo shall maintain
a record of the date, quantity and card value of instant
bingo supplies purchased as well as the name and address
of the supplier of such instant bingo supplies.
(4) No organization shall sell an instant bingo card to any
individual under sixteen (16) years of age. It shall be
the responsibility of the organization to verify the age
of players.
(5) Organizations shall maintain separate accounting records
for instant bingo games. Such records shall specify
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total receipts from instant bingo and shall be separate
from total gross receipts for bingo games and raffles
during both required quarterly and/or calendar reporting
periods.
(6) Such instant bingo records shall be made available, upon
request to the~-~-~v~ v~ ~..~..~ ..... commissioner of the
revenue.
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Section 4-93. Prohibited practices.
In addition to those other practices prohibited by this
article, the following acts or practices shall also be prohibited:
(a) No part of the gross receipts derived by an organization
permitted to conduct bingo games or raffles may be used for any
purpose other than (i) those lawful religious, charitable,
community or educational purposes for which the organization is
specifically chartered or organized, (ii) prizes and bona fide
operating expenses and (iii) expenses relating to the acquisition,
construction, maintenance, or repair of any interest in the real
property involving the operation of the organization and used
exclusively for lawful religious, charitable, community or
educational purposes. Bingo or raffle revenues may not be expended
for food, beverages or entertainment for game participants or for
adult members of a sponsoring organization.
Except for persons employed as clerical assistants by
organizations composed of or for deaf or blind persons, employees
of corporate sponsors, and members of civic and fraternal groups,
only bona fide members of any such organization who have been
members of such organization for at least ninety (90) days prior to
such participation shall participate in the management, operation
or conduct of any bingo game or raffle. Except as provided herein,
no person shall receive any renumeration for participating in the
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management, operation or conduct of any such game or raffle.
Persons employed by orqanizations composed of or for deaf or blind
persons may receive renumeration not to exceed thirty dollars per
event for providing clerical assistance in the conduct of bingo
qames or raffles only for such organizations. Persons eiqhteen
years of age and under who sell raffle tickets to raise funds for
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youth activities in which they participate may receive nonmonetary
incentive awards or prizes from the orqanization provided that
organization is nonprofit. The spouse of any such bona fide member
or a fire fighter or rescue squad member employed by a political
subdivision with which the volunteer fire fighter or rescue squad
member is associated may participate in the operation and conduct
of a bingo game or raffle if a bona fide member is present.
(c) No member of an organization shall be permitted to
manage, or work any bingo game or raffle for more than three (3)
organizations at any time; however, floor workers shall be exempt
from this exclusion.
(d) No organization shall permit a person not a member to
enter into a contract with, or otherwise employ for compensation
any person, firm, association, organization, partnership, or
corporation or otherwise for the purpose of organizing, managing or
conducting bingo games or raffles.
(e) No organization conducting bingo games or raffles in any
location owned, leased or otherwise controlled by that
organization, shall, for the use of such facilities, expend from
bingo or raffle receipts more than the actual cost of utilities,
maintenance and support services incident to the conducting of such
games. For purposes of this article, auxiliaries and subsidiary
organizations are considered part of the parent organization.
(f) Permission to conduct bingo games between 12:00 midnight
and 6:00 A.M may be denied or revoked by the city manager upon his
determination that the conduct of bingo sessions during such hours
at the specified location is incompatible with public safety and
welfare or constitutes a nuisance.
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(g) No organization may hold bingo games more frequently than
two (2) calendar days in any one (1) calendar week, i.e. Monday
through Sunday, except under a special permit issued pursuant to
section 18.2-340.4 of the Code of Virginia and the provisions of
this article.
(h) No location shall be utilized in whole or in part for the
purpose of conducting bingo games more frequently than two (2)
calendar days in any one (1) calendar week for a single
organization; however, the provisions of this section shall not
apply to the playing of bingo pursuant to a special permit issued
in accordance with law.
(i) No organization shall enter into any contract or
otherwise employ or compensate any member of that organization for
the sale of bingo supplies or equipment.
(j) The sale or gift of instant bingo supplies which have
been tampered with in any way, including seals broken on packets,
shall constitute a class 1 misdemeanor. Immediately prior to or
during a session, seals shall be broken and instant bingo cards
shall be thoroughly mixed and shuffled to insure random
distribution to players.
(k) Nor person under the age of eighteen (18) years shall
participate in any capacity in the operation of any bingo game or
raffle, except as floorworkers.
(1) No individual under the age of sixteen (16) years shall
be permitted to play bingo during designated bingo sessions, nor
shall any individual under the age of sixteen (16) years be
permitted on the premises when bingo is conducted or while bingo
sessions are in process, or any raffle being held, unless
accompanied by a parent or legal guardian, or unless on the
premises solely for the purpose of operating refreshment
concessions. City officials shall have the right to check age and
verify identification.
(m) The destruction of any unsold regular, special, or
instant bingo materials shall be personally witnessed and certified
in writing by at least two officers of the organization, other than
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the treasurer or games manager. The record of destruction shall
specifically identify each item destroyed.
(n) No bingo game or raffle shall be conducted unless all
advertising circulars, signs, posters, billboards or notices of any
other kind which advertise a bingo game or raffle includes the name
and address of the sponsoring organization and the purpose or
activity to which the proceeds derived from the operation of the
game or raffle are to be applied.
(o) No prize shall be awarded to the winner of a bingo game
or raffle other than as advertised by the organization.
(p) The sponsoring organization shall accept only cash in
payment of any charges or assessments for players to participate in
bingo games.
(q) Pull-tab devices as defined in section 4-85 may be sold
only upon the premises owned or exclusively leased by an
organization to which a raffle permit is issued, and at such time
as such premises are not opened to the public, except to members
and their guests.
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Sections 4-88 and 4-90 shall be effective upon adoption of
this Ordiancne.
Sections 4-85, 4-87.1, 4-89.1, 4-91, 4-92.2 and 4-93 shall be
effective July 1, 1993.
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Adopted by the Council of the city of Virginia Beach, Virginia
on the 22 day of June , 1993.
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CA-4713
\ ORD IN\ PROPOSED \ 04-085ET. PRO
R-3
PREPARED: June 4, 1993
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- 25 -
Item III-L3.
CONSENT AGENDA
ITEM # 36936
Upon motion by Vice Mayor Sessorns, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to AMEND and REORD~IN Section 21-205 of the
Code of the City of V~rginia Beach, Virginia, re permit fees.
This Ordinance shall be effective July 1, 1993.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AF?20\:~D AS TO LEGAL
AN ORDIN~NCE TO ~,~END AND REORDATN ~J~E~Y-------
AND
FO~M
CITY OF VIRGINIA BEACH, VIRGINIA, ' ' ' ~C~A~ORNEY
PERTAINING TO PE~ITS FEES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 21-205 of the Code of the City of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
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Section 21-205. Special permits for oversize and overweight
vehicles generally.
(a) The city manager may, in his discretion, upon application
in writing ........ ~^~ by ~ ~^^ ~ ~ ..... ~"- ~"~ (¥ .... 0)
~"---~- -~ ...... ~ ~-~ .... and good cause being shown therefor,
issue a special permit in writing authorizing the applicant to
operate or move a vehicle upon the highways of the city of a size
or weight exceeding the maximum specified in this article. Except
as otherwise specifically provided, every such permit may designate
the route to be traversed and contain any other
requirements or conditions deemed necessary by the city manager.
For permits other than those specified in subsections (b), (c) and
(d), the following processing fees shall be charged:
(1) Annual (blanket) permit ....... $125.00
(2) Mobile crane, annual permit
(first unit) .......... 125.00
(each additional unit) ..... 25.00
(3) House move permit (single instance) . 75.00
(4) Single trip permit .......... 25.00
(b) Special permits to operate or move a vehicle upon the
highways of the city of a weight exceeding the maximum specified in
this article shall be granted without cost where the vehicle is
hauling or carrying containerized cargo in a sealed, seagoing
container bound to or from a Virginia seaport and has been or will
be transported by marine shipment, provided the single axle weight
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does not exceed twenty thousand (20,000) pounds, the tandem axle
weight does not exceed thirty-four thousand (34,000) pounds and the
gross weight does not exceed seventy-eight thousand (78,000)
pounds, and provided the contents of such seagoing container are
not changed from the time it is loaded by the consignor or his
agents to the time it is delivered to the consignee or his agents.
Cargo moving in vehicles conforming to specifications shown in this
subsection but exceeding axle and gross weight limitations shown in
this subsection shall be considered irreducible and eligible for
permits under regulations of the state highway and transportation
commission. The requirement of this paragraph that the container
be bound to or from a Virginia seaport need not be met if the cargo
in the container (i) is destined for a seaport outside Virginia and
(ii) consists wholly of farm products grown in that part of
Virginia separated from the larger part of the commonwealth by the
Chesapeake Bay.
(c) The city manager upon application in writing made by the
owner or operator of three-axle vehicles used exclusively for the
mixing of concrete in transit or at a project site or for
transporting necessary components in a compartmentalized vehicle to
produce concrete immediately upon arrival at the project site, and
having a gross weight not exceeding sixty thousand (60,000) pounds,
a single axle weight not exceeding twenty thousand (20,000) pounds,
and a tandem axle weight not exceeding forty thousand (40,000)
pounds, shall issue to such owner or operator, without cost, a
permit in writing authorizing the operation of such vehicles upon
the highways of the city. No such permit shall be issued
authorizing the operation of the vehicles enumerated in this
subsection for a distance of more than twenty-five (25) miles from
a batching plant; however, the said permit shall not designate the
route to be traversed nor contain restrictions or conditions not
applicable to other vehicles in their general use of the highways.
(d) The city manager, upon application in writing made by the
owner or operator of three-axle passenger buses, consisting of two
(2) sections joined together by an articulated joint with the
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trailer being equipped with a mechanically steered rear axle, and
having a gross weight not exceeding sixty thousand (60,000) pounds,
a single axle weight not exceeding twenty-five thousand (25,000)
pounds and a width not to exceed one hundred two (102) inches,
shall issue to such owner or operator, without cost, a permit in
writing authorizing the operation of such vehicles upon the
highways.
(e) No permit issued under this section providing for a
single axle weight in excess of twenty thousand (20,000) pounds or
for a tandem axle weight in excess of thirty-four thousand (34,000)
pounds shall be issued to include travel on the federal interstate
system of highways.
(f) Each vehicle, when loaded according to the provisions of
a permit issued under this section, shall be operated at a reduced
speed. The reduced speed limit shall be ten (10) miles per hour
slower than the legal speed limit in fifty-five (55), forty-five
(45) and thirty-five (35) miles per hour speed limit zones.
(g) Every permit issued under this section shall be carried
in the vehicle to which it refers and shall be open to inspection
by any officer and it shall be a misdemeanor for any person to
violate any of the terms or conditions of such special permit.
This ordinance shall be effective July 1, 1993.
Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of Sune , 1993.
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CA-5089
~ORDIN~PROPOSED~21-205. PRO
R-2
PREPARED: June 1, 1993
- 26 -
CONSENT AGENDA
ITEM # 36937
Upon motion by Vice Mayor Sessorns, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Section 38-1 of the
Code of the City of Virginia Beach, Virginia, re carrying
concealed weapons.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W..
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D
Moss, Mayor Meyera E. Oberndo~ Nancy IC Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
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AN ORDINANCE TO AMEND AND REORDAIN
SECTION 38-1 OF THE CODE OF THE CITY
OF VIRGINIA BEACH, VIRGINIA,
PERTAINING TO CARRYING CONCEALED
WEAPONS
APPROVED AS TO CONTENTS
.......
- ~- 1SI0~,,iATU RE
g'd),.._~ C~-' ,, ,
D£P/, J'~T/'! ~NT
AF?ROVED AS TO LEGAL
' ' '~CIT~ ~TToRNEY'
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 38-1 of the Code of the City of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
Section 38-1. Carrying concealed weapons.
(a) If any person carries about his person, hidden from
common observation, (i) any pistol, revolver, or other weapon
designed or intended to propel a missile of any kind, or (ii) dirk,
bowie knife, switchblade knife, ballistic knife, razor, slingshot,
i ti kj ............... ~ ~"^ "~-~
spr ngs ck, metal knucks, blac ack, ..... ~ -~ ................ ,
any -~ ............ -~-~ i~ flailing instrument consisting of two (2) or more
rigid parts connected in such a manner as to allow them to swing
freely, which instrument may also be known as a anunchuck" or
ik fighti -~
" ..... ~-u4 " nunchanka, nunchaku, shur en~ or ng chain~ ~
any w~.. ...... ~ ~,.~ ,....~"~-~, or (~iv) any disc, of whatever
configuration, having at least two (2) points or pointed blades
which is designed to be thrown or propelled and which may be known
as a throwing star or oriental dart, or (~-iX) any weapon of like
kind as those enumerated in this section, he shall be guilty of a
Class 1 misdemeanor, and such weapon shall be forfeited to the city
and may be seized by an officer as forfeited, and such as may be
needed for police officers and conservators of the peace shall be
devoted to that purpose, and the remainder shall be destroyed by
the officer having them in charge. For the purposes of this
section, a weapon shall be deemed to be hidden from common
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observation when it is observable but is of such deceptive
appearance as to disguise the weapon's true nature.
(b) This section shall not apply to any person carrying a
concealed weapon in accord with permission granted by a circuit
court pursuant to section 18.2-308 of the Code of Virginia.
¢c) This section shall not apply to:
¢1) Any person while in his own place of abode or
curtilage thereof;
Any police officer, sergeant, sheriff, deputy
sheriff, regular game warden or animal control
officer;
(3) Any regularly enrolled member of a target shooting
organization who is at, or going to or from, an
established shooting range, provided that the
weapons are unloaded and securely wrapped while
being transported;
(4) Any regularly enrolled member of a weapons
collecting orqanization who is at, or going to or
from, a bona fide weapons exhibition, provided that
the weapons are unloaded and securely wrapped while
being transported;
(5) Any person carrying such weapons between his place
of abode and a place of purchase or repair,
provided the weapons are unloaded and securely
wrapped while being transported;
(6) Campus police officers appointed pursuant to
section 23-232 et. seq. of the Code of Virginia;
Any person actually engaged in lawful hunting, as
authorized by the Board of Game and Inland
Fisheries, under inclement weather conditions.
Virgin~ ~
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(d) This section shall not apply to any of the following
individuals while in the discharge of their official duties or
while in transit to or from such duties:
(1) Carriers of the United States mail in rural
districts~i
(2) Officers or guards of any state correctional
institutional
(~) Conservators of the peace~ except that the
following conservators of the peace shall not be
permitted to carry a concealed weapon unless a
permit is obtained pursuant to section 18.2-308 of
the Code of Virginia~
a. Notaries public.
b. Registrars.
c. Drivers, operators or other persons in charge
of any motor vehicle carrier of passengers for
hire.
d. Commissioners in chancery·
(4) Noncustodial employees of the Department of
Corrections designated to carry weapons by the
Director of the Department of Corrections pursuant
to section 53.1-29 of the Code of Virginia;
(5) Law enforcement agents of the Armed Forces of the
United States and federal agents who are otherwise
authorized to carry weapons by federal law while
engaged in the performance of their duties; and
(6) Law enforcement agents of the Untied States Naval
Investigative Service.
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(e) As used in this section:
(1) "Spring stick" means a spring-loaded metal stick
activated by pushing a button which rapidly and
forcefully telescopes the weapon several times its
oriqinal lenqth.
"Ballistic knife" means any knife with a detachable
blade that is propelled by a spring-operated
mechanism.
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Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of June , 1993.
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CA-4124
~ORDIN~PROPOSED~38-00 lX. PRO
R-1
Prepared: June 1, 1993
- 27 -
Item III-L,5.
CONSENT AGENDA
ITEM # 36938
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance authorizing the City Manager to execute an Inter-
Jurisdictional Agreement for the Comprehensive Regional
Information Management and Exchange System (CRIMES);
Ordinance to TRANSFER $10,715 within the FY 1992-1993
DEA Seized Special Revenue Fund to provide Virginia Beach's
portion of the FY 1992-1993 State Criminal Justice Grant
Match and to provide next year's Grant Match by Transferring
$28,125 from within the FY 1993-1994 Police Department's
operating budget.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert I~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy I~ Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
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A~RO, V[D AS TO CONTENTS
JhN ORDIN/M-NCE TO AUTHORIgE THE CITY
MANAGER TO EXECUTE AN INTER- A[,'~G',t~D. $~LEGAL
JURISDICTIONAL AGREEMENT FOR THE SUFr~Ct[NC~( Ai;D FOR~6
(CRIMES) CI~ ATTORNEY
WHEREAS, Code of Virginia, Section 15.1-21, authorizes
political subdivisions in the Commonwealth to enter into agreements
for the joint exercise of powers;
WHEREAS, there exists a need for a computerized communications
network linking the cities in the Tidewater area, for the purpose
of sharing and accessing criminal justice information;
WHEREAS, in recognition of this need, law enforcement
officials and staff members of the Cities of Chesapeake, Hampton,
Newport News, Norfolk, Portsmouth, Suffolk and Virginia Beach have
developed a Charter Agreement for a Comprehensive Regional
Information Management and Exchange System (CRIMES) which provides
for the establishment and operation of such an interjurisdictional
communications network; and
WHEREAS, the participation of this City in CRIMES is
considered desirable and of great potential benefit to law
enforcement and related criminal justice activities both in
Virginia Beach and in its neighboring jurisdictions;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That the Council approves and authorizes the inclusion of the
City of Virginia Beach as a participating political subdivision and
Charter Member of the Comprehensive Regional Information Management
and Exchange System (CRIMES); and
BE IT FURTHER ORDAINED, that the City Manager is directed to
execute, on behalf of the City, the CRIMES Agreement, which is
attached hereto and incorporated herein as if set out in full.
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Adopted by the Council of the City of Virginia Beach,
Virginia, on the 22 day of June
, 1993.
CA-5057
ORD IN \ NONCODE \ CRIMES. ORD
R-2
PREPARED: May 13, 1993
AGREEMENT
COMPREHENSIVE REGIONAL INFORMATION
MANAGEMENT AND EXCHANGE SYSTEM
"CRIMES"
The cities of Chesapeake, Hampton, Newport News, Norfolk,
Portsmouth, Suffolk and Virginia Beach hereby create the
Comprehensive Regional Information and Management Exchange System
("CRIMES") under Section 15.1-21, Code of Virginia, 1950, as
amended, for the joint exercise of powers of participating
political sub-divisions.
SECTION I. DEFINITIONS
A. ~ssociate Member
A user group of the Comprehensive Regional Information
and Management Exchange System ("CRIMES"), e.g.,
Commonwealth Attorneys, Circuit Courts, District Courts,
Probation & Parole, Sheriffs.
B. Charter Member
One of the seven jurisdictions enumerated in the first
paragraph of this Agreement, i.e., the cities of
Chesapeake, Hampton, Newport News, Norfolk, Portsmouth,
Suffolk and Virginia Beach.
C. Chief Administrative O~ficer
The city manager, county administrator, or other chief
administrator of a city or county.
D. Executive Director
The executive director of the Comprehensive Regional
Information Management and Exchange System (CRIMES), who
may also be referred to as Project Manager during the
development of the system.
E. Fiscal year
The twelve-month period beginning July I and ending June
30 of the succeeding calendar year.
F. Governing bodv
_ _
City Council or equivalent legislative body.
G. Jurisdict%og - A city or county.
Crimes Agreement
January 15, 1993
Page 2
I ·
?articipatinq jurisdic~%0~ - A city or county that enters
into the Agreement for the Comprehensive Regional
Information Management and Exchange System (CRIMES).
User qroum
Criminal justice agencies (by definition and title) which
may have occasion to participate in CRIMES. These user
groups may include Commonwealth Attorneys, Circuit
Courts, District Courts, Probation & Parole, Sheriffs,
etcetera.
SECTION II. SCOPE AND OBJECTIVES
A. Scope
To develop and operate a regional criminal justice
information system.
B. Qbjectives
·
Establish a formal communications network among all
participating jurisdictions.
·
Support all aspects of the criminal justice process
through automation.
3. Reduce data entry redundancy.
·
Provide information required by other agencies
(state/federal) through automated interfaces.
·
Improve efficiency and effectiveness of criminal
justice agencies by providing access to accurate,
dependable and timely information.
·
Develop a regional criminal justice information
system utilizing current technology and tools which
will facilitate keeping the system functioning at
a level that continues to meet the needs of the
criminal justice user environment.
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Crimes Agreement
January 15, 1993
Page 3
SECTION III. DURATION
CRIMES shall exist in perpetuity, subject however to the
following conditions:
A. Dissolutio~
CRIMES may be dissolved at any time by agreement of the
governing bodies of all of the Charter Members.
B. Withdrawal
In the event that any member desires to withdraw its
membership from CRIMES, the following procedures shall
apply.
lo
Written notification shall be sent to the Board of
Directors of CRIMES no later than January 1 of the
fiscal year immediately preceding the fiscal year
in which the member intends to withdraw.
·
The Board of Directors of CRIMES shall provide to
the withdrawing member an opportunity to address the
Board as to the reason for withdrawal.
·
The withdrawing member is obligated to pay its
designated pro rata assessment through the end of
the fiscal year prior to withdrawal.
C. Suspension
In the event of nonappropriation or nonpayment of
assessed costs, participation may be suspended at the end
of the period for which funding was provided.
SECTION IV. BOARD OF DIRECTORS
CRIMES shall be governed by a Board of Directors.
A. Composition
The Board of Directors shall be composed of:
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Crimes Agreement
January 15, 1993
Page 4
1. Charter Members
The Chief Aaministrative Officers and the Chiefs of
Police oft_he cities of Chesapeake, Hampton, Newport
News, Norfolk, Portsmouth, Suffolk and Virginia
Beach shall be Directors.
2. Associate Members
When it is deemed appropriate by the Charter
Members, an Associate Member representing any CRIMES
User Group may be identified to serve on the Board
for a term of one year to begin on January 1st each
year. The election of a Director of an Associate
Member shall be the responsibility of the User
Group. Each Director of an Associate Member shall
serve until a successor is elected.
Voting
1. Each Charter Member shall have one vote.
2. Directors may designate representatives to act for
them.
3. A majority vote plus one of the current Charter
Members shall be required for all decisions of the
Board.
4. An Associate Member shall have no vote.
Ce
Meetings
The Board of Directors shall conduct its annual
meeting each year no later than December 20, at
which meeting it shall elect its chairman,
vice-chairman, and such other officers as it may
deem appropriate.
The Board shall fix such other meeting times as it
deems necessary. It shall keep written minutes of
all meetings.
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Crimes Agreement
January 15, 1993
Page 5
D.
·
At any meeting of the Board of Directors, a quorum
shall consist of a majority plus one of the current
Charter Members.
Powers.of the Board
The Board shall have the following powers and duties:
·
To oversee and direct the development of CRIMES to
include decisions regarding all technical and
functional issues and costs as well as the
application of resources and funding toward these
goals.
·
To oversee and be responsible for the operation of
CRIMES following initial development. This shall
include determining the qualifications for staff and
maintaining such necessary personnel to support the
system as well as personnel to address developmental
needs which may arise during the life of the system
to ensure maximum benefit for all user agencies.
To accomplish these ends, the Board shall have the
power to expend the funds appropriated.
·
To promulgate each year a schedule of fixed costs
for maintenance of CRIMES, including equipment and
basic staff, and of variable costs of operation
depending on the number of active participants and
any additional developmental costs.
·
To approve acceptance of grants, gifts, endowments,
donations, subsidies, awards, assistance, bequests,
devises, fees, compensation, bonuses, contributions,
stipends, aids, tuition, and any other property,
real, personal, or mixed, to be used in the
undertaking.
·
To determine additional participating jurisdictions
and user groups and the terms and conditions
applicable to their participation and the expansion
of CRIMES.
·
To designate one of the participating jurisdictions
to serve as fiscal agent.
-5-
Crimes Agreement
January 15, 1993
Page 6
·
To approve contracts to be entered into by its
fiscal agent.
·
To appoint, pursuant to Virginia Code §15.1-20.4,
an Executive Director (Project Manager), and to fix
compensation and prescribe powers and
responsibilities.
·
To enter into agreement with participating
jurisdictions for equipment, necessary personnel,
facilities, technical and administrative assistance
and maintenance services appropriate to the purpose
of CRIMES.
10. To adopt such rules as the Board deems necessary.
11. To appoint committees as necessary to research
and/or address functional and technical issues
related to CRIMES.
12. To retain and compensate legal counsel.
SECTION V. FINANCING AND BUDGET
The Board shall designate one of the participating
jurisdictions to act as the fiscal agent. The Board shall provide
for the manner in which and by whom receipts and disbursements may
be authorized, provided that it shall ensure that the receipts,
disbursements authorization and audit systems of the fiscal agent
are employed.
A. ..Capital Assets and ExDenditures
·
In the event a facility and/or computer
hardware/software and/or staffing is furnished by
a member jurisdiction, the Board of Directors shall
determine the method and amount by which payment
and/or credit shall be given; provided, however,
that such method, and the amount of such payment
and/or credit, shall be subject to the approval of
the governing body of the furnishing member
jurisdiction.
-6-
Crimes Agreement
January 15, 1993
Page 7
·
The Board shall, from time to time as it deems
necessary, approve a schedule of resource
requirements providing for costs and a method of
apportioning such costs among the members and submit
it to the governing bodies of the members for
approval as part of the annual operating budget.
·
The Board shall determine the fee schedule for
additional participating jurisdictions and users.
·
Whenever the Board changes the fiscal agent, the
chief financial officer of the jurisdiction formerly
designated as fiscal agent shall forthwith take all
necessary actions to transfer to the newly
designated jurisdiction the legal ownership and
title of real and personal property acquired as
joint property to be used in the undertaking,
provided that equitable ownership of all such
property shall at all times remain subject to the
action of the Board.
9perating Expenses
Budget. The Executive Director (Project Manager)
shall be responsible for the annual preparation of
an operating budget, and shall submit a budget
proposal to the Board of Directors not later than
November 1st of each year. Upon receipt of notice
of appropriation by the members, the Board shall
make adjustments in the proposed budget as may be
necessary. The operating budget shall be approved,
or adjusted and approved, by the Board of Directors.
·
Appropriations. Each participating jurisdiction
agrees that it shall appropriate each year to CRIMES
a percentage of the net total costs (minus federal
and state grants) which shall be determined by the
base/plus percentage algorithm as follows:
25 per cent of the total costs divided equally
among participating jurisdictions and the
remainder of the costs divided by percentage
based on population of the jurisdiction.
-7-
Crimes Agreement
January 15, 1993
Page 8
C·
·
Payment. Each participating jurisdiction shall make
payments to the fiscal agent quarterly in advance.
Amounts will be determined by the Board of
Directors.
Non-appropriation· No jurisdiction shall have any
liability under this agreement unless and until an
approving ordinance is adopted by the governing body
thereof including an initial appropriation. A copy of
such ordinance shall be filed with this agreement by the
Executive Director.
SECTION VI. OWNERSHIP AND DISPOSITION OF PROPERTY
A·
Real and personal property used in the undertaking which
is contributed by a participating jurisdiction shall
remain the property of such jurisdiction, unless
otherwise provided by written agreement between such
participating jurisdiction and the Board of Directors.
Be
Real and personal property used in the undertaking which
is acquired jointly on behalf of CRIMES after the
commencement of this agreement shall be titled in the
name of the fiscal agent unless otherwise specified by
written resolution of the Board of Directors.
Ce
Dissolution or withdrawal of this cooperative endeavor
shall occur only as provided in Section III. All
property subject to the dissolution or withdrawal shall
be scheduled and valued by or at the direction of the
Board, and one or more members may purchase the interests
of one or more others in such property.
SECTION VII. LIABILITY
The Board of Directors shall procure general liability
insurance in an amount not less than $2,000,000 to protect its
members, officers and employees and the participating
jurisdictions, their officers and employees, and the users of the
System, their officers and employees, provided said users have
contributed funding to CRIMES. Notice of all claims involving
CRIMES or the development or operation of the system which are made
against any participating jurisdiction or user shall be immediately
-8-
Crimes Agreement
January 15, 1993
Page 9
provided to the Executive Director of CRIMES and to the Chiefs of
Police of every participating jurisdiction.
SECTION VIII. A~END~S
ae
Notice of a proposed amendment to this agreement shall
be sent to the Directors by certified mail at least 30
days prior to the meeting at which the proposed amendment
will be voted upon.
Be
This Agreement may be amended at any regular meeting of
the Board of Directors by a vote of a majority plus one
of the current Charter Members.
IN WITNESS WHEREOF, the cities of Chesapeake, Hampton, Newport
News, Norfolk, Portsmouth, Suffolk, and Virginia Beach have caused
this agreement to be executed by their duly authorized officers,
each city executing concurrently on an individual page.
CITY OF NORFOLK
ATTEST:
City Manager
Date
Norfolk City Clerk
CONTENTS APPROVED:
Norfolk Chief of Police Date
APPROVED AS TO FORM AND CORRECTNESS:
Norfolk Deputy City Attorney
-9-
Crimes Agreement
January 15, 1993
Page 10
SIGNATORY PAGE
CITY OF CHESAPEAKE
City Manager
Date
ATTEST:
Chesapeake City Clerk
-10-
Crimes Agreement
January 15, 1993
Page 11
SIGNATORY PA~E
CITY OF HAMPTON
ATTEST:
City Manager
Date
Hampton City Clerk
-11-
Crimes Agreement
January 15, 1993
Page 12
SIGNATORY PAGE
CITY OF NEWPORT NEWS
City Manager
Date
ATTEST:
Newport News City Clerk
-12-
Crimes Agreement
January 15, 1993
Page 13
SIGNATORY PAGE
CITY OF PORTSMOUTH
City Manager
Date
ATTEST:
Portsmouth City Clerk
-13-
Crimes Agreement
January 15, 1993
Page 14
SIGNATORY PAGE
CITY OF SUFFOLK
City Manager
Date
ATTEST:
Suffolk City Clerk
-14-
Crimes Agreement
January 15, 1993
Page 15
SIGNATORY PAGE
CITY OF VIRGINIA BEACH
City Manager
Date
ATTEST:
Virginia Beach City Clerk
-15-
AN ORDINANCE TO TRANSFER $10,715 WITHIN THE FY 1992-93 DEA SEIZED
PROPERTY SPECIAL REVENUE FUND TO PROVIDE VIRGINIA BEACH'S PORTION OF
THE FY 1992-93 STATE CRIMINAL JUSTICE GRANT MATCH AND TO PROVIDE NEXT
YEAR'S GRANT MATCH BY TRANSFERRING $28,125 FROM WITHIN THE FY 1993-94
POLICE DEPARTMENT'S OPERATING BUDGET
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11
12
WHEREAS, the Cities of Chesapeake, Hampton, Newport News,
Norfolk, Portsmouth, Suffolk, and Virginia Beach have entered into an
agreement to develop and utilize a computerized regional criminal
justice information network,
WHEREAS, the State Department of Criminal Justice has
provided grant funds for the development and implementation of such a
system,
WHEREAS, this two year state grant requires that each City
provide matching funds for the grant and Virginia Beach's portion is
FY 1992-93 $10,715
FY 1993-94 $28,125
$38,840
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WHEREAS, funds to provide the FY 1992-93 grant match are
available in the FY 1992-93 DEA Seized Property Special Revenue Fund
and funds for the FY 1993-94 grant match are available within the FY
1993-94 Operating Budget for the Police Department.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA, that in FY 1992-93, $10,715 be
transferred within the DEA Seized Property Special Revenue Fund and
that for FY 1993-94 funds be transferred within the Police
Department's Operating Budget for the purpose of providing the City's
portion of the required grant match.
Adopted by the City Council of the City of Virginia Beach,
Virginia, on the 22 day of $~ne , 1993.
Approved as to Content
~alt'e~ c. Krae'mer, Jr.
Deputy Director
Management and Budget
- 28 -
Item III-L6.
CONSENT AGENDA
ITEM # 36939
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to ACCEPT and APPROPRIATE Grants of $19,977
to the Department of Mental Health, Mental Retardation, and
Substance Abuse re services to substance abusing women and
their children and communications training for handicapped
clients.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert I~ Dean, Louis I~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy I~ Parker and V~ce Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
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13
14
15
16
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27
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35
36
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AN ORDINANCE TO ACCEPT AND APPROPRIATE GRANTS IN THE AMOUNT
OF $19,977 TO THE DEPARTMENT OF MENTAL HEALTH, MENTAL
RETARDATION, AND SUBSTANCE ABUSE TO PROVIDE SERVICES
TO SUBSTANCE ABUSING WOMEN AND THEIR CHILDREN AND TO PROVIDE
COMMUNICATIONS TRAINING FOR HANDICAPPED CLIENTS
WHEREAS, the Community Services Board and the Department of
Mental Health, Mental Retardation, and Substance Abuse are
responsible for the coordination and implementation of mental
health, mental retardation, and substance abuse services;
WHEREAS, the department has received a federal grant in the
amount of $12,000 to provide services to substance abusing women
and their children;
WHEREAS, the department has also received a grant in the
amount of $7,977 from the Knights of Virginia Assistance for the
Retarded (KOVAR) to provide communications training for handicapped
clients;
WHEREAS, the funding requires no local funding match.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA: 1. That funding in the amount of
$12,000 be accepted and appropriated from the federal government to
the Department of Mental Health, Mental Retardation, and Substance
Abuse to provide services to substance abusing women for the
duration of the grant; 2. That a grant in the amount of $7,977 be
accepted and appropriated from the Knights of Virginia Assistance
for the Retarded to the Department of Mental Health, Mental
Retardation, and Substance Abuse to provide communications training
to handicapped clients for the duration of the grant; and 3. That
appropriations be offset by a $12,000 increase in federal revenue
and a $7,977 increase in revenue resulting from private grantor
funds.
Adopted by the city Council of the City of Virginia Beach,
Virginia, on the ~ day of June , 1993.
This ordinance shall be effective from the date of its
adoption.
Approved as to Content
APPROVED AS TO
LEGAL
- 29 -
Item III-I. Z
CONSENT AGENDA
ITEM # 36940
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to ACCEPT and APPROPRIATE a State Grant of $36,750
and TRANSFER $12,250 for the local match from the Sheriff and
Department of Corrections to the Department of Mental Health, Mental
Retardation, and Substance Abuse FY 1993-1994 Operating Budget re
substance abuse treatment for women in the City Jail.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert lc Dean, Louis P~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy lC Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 29 -
Item III-I. 7.
CONSENT AGENDA
ITEM # 36940
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, Ctty Council ADOPTED:
Ordtnance to ACCEPT and APPROPRIATE a State Grant of $36, 750
and TRANSFER $12,250 for the local match from the Sheriff and
Department of Corrections to the Department of Mental llealth' Mental
Retardatton, and Substance Abuse FY 1993-1994 Operating Budget re
substance abuse treatment for women in the City Jail.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch' III, James IV. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
10
AN ORDINANCE TO ACCEPT AND APPROPRIATE A STATE GRANT!~OF
$36,750 AND TO TRANSFER $12,250 FOR THE LOCAL MATCH FROM~~~~_~,
THE DEPARTMENT OF SHERIFF AND CORRECTIONS TO THE
DEPARTMENT OF MENTAL HEALTH, MENTAL RETARDATION, AND
SUBSTANCE ABUSE FY 1993-94 OPERATING BUDGET TO PROVIDE
SUBSTANCE ABUSE TREATMENT FOR WOMEN IN THE CITY JAIL
WHEREAS, the Department of Mental Health, Mental Retardation, and Substance
Abuse is responsible for coordinating substance abuse treatment and the
Department of Sheriff and Corrections is responsible for the care and custody of
inmates at the City Jail;
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12
WHEREAS, both agencies recognize the need to provide intensive substance
abuse treatment to women in the City Jail;
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WHEREAS, the State Department of Criminal Justice Services has approved a
grant of $36,750 and the Department of Sheriff and Corrections has agreed to
provide a local match of $12,250 to the Department of Mental Health, Mental
Retardation, and Substance Abuse for this purpose;
17
WHEREAS, 1.8 addition FTE's are required to implement this program.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA that a state grant of $36,750 be accepted and appropriated,
$12,250 be transferred from the Department of Sheriff and Corrections for the
local match and 1.8 full-time equivalent positions be established in the
Department of Mental Health, Mental Retardation, and Substance Abuse FY 1993-94
Operating Budget for the duration of the grant for the purpose of providing
substance treatment to women in the City Jail.
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BE IT FURTHER ORDAINED that estimated revenue from the Commonwealth be
increased by $36,750.
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Adopted by the City Council of the City of Virginia Beach, Virginia, this
22 day of June , 1993.
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This ordinance shall be effective from the date of its adoption.
Approved as to Content
- 30 -
Item 111-1.8.
CONSENT AGENDA
ITEM # 36941
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinances to APPROPRIATE funds of the General Fund Balance to
provide interest-free loans for the purchase of replacement ambulances:
a. Davis Corner Volunteer Fire Department and Rescue Squad, Inc.
$55,000
b. Plaza Volunteer Rescue Squad
$50,000
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W..
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO APPROPRIATE $55,000 FROM THE GENERAL FUND,
FUND BALANCE FOR THE PURPOSE OF PROVIDING AN INTEREST-FREE
LOAN TO THE DAVIS CORNER VOLUNTEER FIRE DEPARTMENT AND RESCUE
SQUAD, INC. FOR THE PURCHASE OF A REPLACEMENT AMBULANCE
WHEREAS, the Dav,s Corner Volunteer Fire Department and Rescue Squad, Inc. (DCVFD&RS)
has determined that Umt #220, whmh ,s over four years old, requires replacement because of high
mdeage and mmntenance costs resulting from increasing call volume,
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12
WHEREAS, the DCVFD&RS does not presently have adequate funds to purchase a replacement
ambulance because of poor return on prewous fund-rinsing efforts, but would hke the C~ty of V~rgmla
Beach to provide an interest-free loan m the amount of $55,000 00 through its Loans to Rescue
Squads Program from the C~ty's General Fund, fund balance to DCVFD&RS for the purchase of a
replacement ambulance;
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15
WHEREAS, the DCVF&RS has prev,ously had interest-free loans with the C~ty whmh ~t repaid
on-t~me or ahead of schedule, and foresees no devmtlon from that previous performance on future
loans;
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, to appropriate $55,000.00 from the General Fund, fund balance for the purpose of prov~d,ng
an interest-free loan to the DCVFD&RS for the purchase of a replacement ambulance w,th payments
to be made m equal annual installments of $13,750.00 per year begmn,ng July 15, 1994 through
1997 mclus,ve.
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day of
Thru ordinance shall be effective from the date of its adoption.
Adopted by the Councd of the C~ty of V~rg~nm Beach, Virginia on the
June , 1993.
Twenty-second
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APPROVED AS TO CONTENT
DEPARTMENT OF MANAGEMENT AND BUDGET
c:\budget\fy92-93\ordmanc.ems vol. 25 sgh
APPROVED AS TO
AN ORDINANCE TO APPROPRIATE $50,000 FROM THE GENERAL FUND, FUND BALANCE
FOR THE PURPOSE OF PROVIDING AN INTEREST-FREE LOAN TO THE PLAZA
VOLUNTEER RESCUE SQUAD FOR THE PURCHASE OF A NEW AMBULANCE
WHEREAS, the Plaza Volunteer Rescue Squad (PVRS) has determined, based on the Emergency
Medmal Serv,ces F~ve-Year Plan, that an addmonal ambulance ~s needed at a sub-station located at the
Fire Department's Engine Company 1 8 to handle the increasing calls for servme m the high demand
~ntenmty area of Green Run;
WHEREAS, the PVRS does not presently have adequate funds to purchase a new ambulance
because of poor return on a prewous fund-ra~s.ng effort, but would hke the C~ty of V~rgm.a Beach to
provide an interest-free loan m the amount of 950,000.00 through ~ts Loans to Rescue Squads
Program from the City's General Fund, fund balance to PVRS for the purchase of a new International
Ambulance;
WHEREAS, the PVRS has prewously had ~nterest-free loans w~th the City whmh ~t repaid on-
t~me or ahead of schedule, and assuming pomtlve fund drive efforts, foresees no dewatlon from that
prewous performance on future loans;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, to appropriate 950,000.00 from the General Fund, fund balance for the purpose of prowd~ng
an ~nterest-free loan to the PVRS for the purchase of a new Internat.onal Ambulance with payments
to be made ~n equal annual .nstallments of 912,500.00 per year beg~nn.ng June 30, 1994 through
1997 mclumve.
Th~s ord,nance shall be effective from the date of ~ts adoption.
Adopted by the Council of the C~ty of V~rg~n~a Beach, V,rg~ma on the Twenty-second
day of June ,1993.
APPROVED AS TO CONTENT
DEPARTMENT OF MANAGEMENT AND BUDGET
APPROVED AS TO
LEGAL SUFFiCiENCY
c:\budget\fy92-93\ord~nanc.ems vol. 25 sgh ~
- 31 -
Item III-Lg.
CONSENT AGENDA
ITEM # 36942
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to ACCEPT and APPROPRIATE $950 from the Virginia
Department of Motor Vehicles (DMP) to reimburse the Police
Department for the design and installation of "Buckle Up" reminder
signs.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members' Absent:
None
June 22, 1993
AN ORDINANCE TO ACCEPT AND APPROPRIATE $950
FROM THE STATE DEPARTMENT OF MOTOR VEHICLES TO
REIMBURSE THE POLICE DEPARTMENT FOR THE DESIGN
AND INSTALLATION OF "BUCKLE UP" REMINDER SIGNS
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WHEREAS, the State Department of Motor Vehicles has
awarded a grant in the amount of $950 to the Police Department to
reimburse the Department for the costs associated with designing
and installing signs to remind motorists to "Buckle Up,"
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That a $950 grant be accepted from the Virginia
Department of Motor Vehicles, and appropriated to the Police
Department Operating Budget for the reimbursement of the costs
associated with designing and installing "Buckle Up" reminder
signs.
BE IT FURTHER ORDAINED:
That estimated revenues from the Commonwealth of Virginia
be increased by $950.
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Adopted by the Council of the City of Virginia Beach,
Virginia, on the 22 day of June , 1993.
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CA-5178
ORDIN~NONCODE~BUCKLE. ORD
R-2
PREPARED: 06/15/93
- 32 -
Item III-L 10.
CONSENT AGENDA
ITEM # 36943
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to ACCEPT and APPROPRIATE $27,053 Grant from the
State Department of Criminal Justice re funding support to the
Commonwealth's Attorney's Victim Witness Program.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf Nancy IC Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO ACCEPT AND APPROPRIATE A $27,053 GRANT FROM THE STATE
DEPART~T OF CRIMINAL JUSTICE TO PROVIDE FUNDING SUPPORT
TO THE COMMONWEALTH'S ATTORNEY'S VICTIM WITNESS PROGRAM
WHEREAS, this is the third year the City has received a
grant from the State Department of Criminal Justice to support
existing services within the Commonwealth's Attorney's Victim Witness
program,
WHEREAS, these funds are being used primarily to support the
existing position of Victim Witness Assistant,
WHEREAS, this grant requires no city matching funds.
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NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA, that the State Department of Criminal
Justice grant for $27,053 be accepted and appropriated to support the
Commonwealth's Attorney's Victim Witness Program and to continue the
existing grant position.
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BE IT FURTHER ORDAINED, that the FY 1993-94 estimated
revenues from the Commonwealth be increased by $27,053 to reflect this
grant.
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17 the 22
Adopted by the City Council of the City of Virginia Beach on
of June , 1993.
LE, '~.
Approved as to Content
Walter- C, Kr~em~' jr,
Deputy Director
Management and Budget
CRW-C: \OB94\CAV ~ ct im. ord
- 33 -
Item III-L 11.
CONSENT AGENDA
ITEM # 36944
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to APPROPRIATE approximately $5,500 estimated revenue
of interest earned on Community Diversion Incentive deposits.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy IC Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO APPROPRIATE ESTIMATED REVENUE OF INTEREST ON
COMMUNITY DIVERSION INCENTIVE DEPOSITS OF APPROXIMATELY 95,500.00
WHEREAS, the Office of Commumty Correct,ons ,s a State Department of Correct,ons funded
commumty based alternative pumshment program whmh ,s comprised of two budget un,ts, Core
Serwces and Case Management that have a total amended budget of 9316,700.00;
WHEREAS, beg~nmng ~n FY92-93, the State Department of Corrections ,s allowing the C,ty to
keep all ,nterest earned on Commumty Dwers~on Incent,ve (CDI) depos,ts;
10
WHEREAS m order to utd,ze the mterest earned on CDI deposits wh,ch ~s estimated at
~5,500.00, the est,mated mterest has to be appropriated and added to the Office of Commumty
Correct~ons operatmg budget;
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WHEREAS, the Off,ce of Commumty Corrections would hke the C~ty of V~rg~ma Beach to
appropriate the estimated revenue from mterest earned on CDI deposits, 95,500.00, and mcrease the
operatmg budget of the Office of Commumt¥ Correct~ons by the same amount;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, to appropriate the estimated revenue from mterest earned on CDI deposits, 95,500 00, and
mcrease the operatmg budget of the Office of Commumty Correct~ons by the same amount.
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BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA,
to ~ncrease Est,mated State revenue by 95,500 00.
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day of
Th~s ord,nance shall be effective from the date of its adoption.
Adopted by the Councd of the C~ty of V~rgm,a Beach, V~rg,ma on the
June ,1993.
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APPROVED AS TO CONTENT
DEPARTMENT OF MANAGEMENT AND BUDGET
c \budget\fy92-93\cd~ntrst ord vol 29 sgh
APPROVEP '~ "' TO
L~L SUFf:'(:.{ENCY
- 34 -
Item III-L 12.
CONSENT AGENDA
ITEM # 36945
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to TRANSFER $38,611 within the Department of Mental
Health, Mental Retardation, and Substance Abuse FY 1993-1994
operating budget to continue a federally funded position re services for
developmentally delayed infants.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO TRANSFER $38,611 WITHIN THE DEPARTMENT
OF MENTAL HEALTH, MENTAL RETARDATION, AND SUBSTANCE ABUSE
FY 93-94 OPERATING BUDGET TO CONTINUE A FEDERALLY FUNDED
POSITION THAT PROVIDES SERVICES FOR DEVELOPMENTALLY DELAYED INFANTS
WHEREAS, the Community Services Board is responsible for the
coordination and implementation of mental health, mental
retardation, and substance abuse services;
10
11
WHEREAS, the department received federal funding during FY 92-
93 for a Educator position to provide services for developmentally
delayed infants;
12
13
WHEREAS, the position's current funding terminates on
September 30, 1993;
14
15
16
WHEREAS, sufficient federal funding exists within the
department's FY 93-94 Operating Budget to continue the position
through June 30, 1994.
17
18
19
20
21
22
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA, that $38,611 be transferred within the
Department of Mental Health, Mental Retardation, and Substance
Abuse FY 93-94 Operating Budget to continue a federally funded
position that provides services for developmentally delayed infants
until June 30, 1994.
23
24
Adopted by the City Council of the City of Virginia Beach,
Virginia, on the 22 day of June , 1993.
25
26
27
28
29
This ordinance shall be effective from the date of its
adoption.
Approved as to Content
_~ III I I
APPROVED AS "FO
Item III-L 13.
CONSENT AGENDA
ITEM# 36946
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance to Charge-Off delinquent accounts of the Department of
Mental Health Substance Abuse totaling $435,571.59.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K, Dean, Louis R. Jones, Paul J. Lantetgne, John D.
Moss, Mayor Meyera E. Oberndorf Nancy I~ Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO CHARGE-OFF
DELINQUENT ACCOUNTS OF THE
DEPARTMENT OF MENTAL HEALTH
SUBSTANCE ABUSE
WHEREAS, it is standard accounting procedure to allow for a charge-off of
6 uncollectible accounts, and
WHEREAS, an earnest and diligent effort has been made by the Department
of Mental Health/Substance Abuse to collect its overdue accounts, and
10
WHEREAS, various overdue accounts receivable for the years 1987 through
1991 for the Department of Mental Health/Substance Abuse totaling $435,571.59 are
11 deemed to be uncollectible.
12
NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE
13 CITY OF VIRGINIA BEACH, VIRGINIA that $435,571.59 of accounts receivable as
14 represented above be charged-off as uncollectible accounts as of June 30, 1993.
15
Adopted by the Council of the City of Virginia Beach, Virginia on the __22_
16 day of June
, 1993.
APPROVED AS TO
LEGAL SUFFICIENCY
"$~G~A~U ~E /
- x_.-- - 'UEPA-RT~'t'ENI
Item III-L 14.
CONSENT AGENDA
ITEM # 36947
Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED:
Ordinance authorizing Tax Refunds in the amount of $3,089.31, upon
application of certain persons and upon certification of the City
Treasurer for payment.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera £. Oberndo~ Nancy 32. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
~ ,o. c.^. ~ 6/~5/93 EMC
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 applications for tax refunds upon certihcatlon of the Treasurer are hereby approved.
Tax Type Ticket Exonera- Date Penalty Int.
NAHE Year of Tax Number tion No. Paid
Total
Sears Mortgage Corp 93 RE(l/2
Christian Broadcast Ntwk 93 RE(l/2
Effie Mae & Marvin Lovitt 93 RE(l/2
First Nat'l Bank of Gainsevll 93 RE(l/2
Colsolvo, Markowitz & Webb 93 RE(l/2
Life Savings Bank FSB 93 RE(l/2
Life Savings Bank FSB 93 RE(l/2
Life Savings Bank FSB 93 RE(l/2
Life Savings Bank FSB 93 RE(l/2
Mabel R Elliott 93 RE(l/2
Mabel R Elliott 92 RE(l/2
Mabel R Elliott 92 RE(2/2
Mabel R Elliott 91 RE(l/2
Mabel R Elliott 91 RE(2/2
Mabel R Elliott 90 RE(l/2
Mabel R Elliott 90 RE(2/2
Lake James Homes Assoc 92 RE(l/2
Lake James Homes Assoc 92 RE(2/2
114151-4 11/24/92 21.80
20734-9 12/4/92 267.55
69967-4 10/29/93 15.96
8855-7 11/24/92 126.01
99378-4 2/9/93 1,228.55
78895-2 12/5/92 89.81
85885-9 12/5/92 89.81
37700-3 12/5/92 89.81
27125-1 12/5/92 89.81
33838-7 1/25/93 121.82
33628-2 11/21/91 109.00
33628-2 11/21/91 16.00
33421-2 11/13/91 124.42
33421-2 11/13/91 118.97
32979-1 11/14/91 127.09
32979-1 11/14/91 122.56
20774-1 3/23/93 168.47
20774-1 3/23/93 161.87
Total
3,089.31
This ordInance shall be effective from date of adoption.
The above abatement(s) totaling
$3,089.31 were approved by
the Council of the C~ty of Virginia
Beach on the 22day of June, 19.93
Ruth Hodges Smith
City Clerk
Certirt,_,R.~,,~as to~__~paymer~1~ /
John l] ~tkin~on~..-T'~asurer
Approved as to form:
- 37 -
Item III-J.l..
PUBLIC HEARING
ITEM # 36948
PIMNNING
Mayor Meyera E. Oberndorf DECLARED a PUBLIC HEARING on:
PLANNING BY CONSENT
(a) ELVA B. LEE
VARIANCE
(b) CARROL S. GILES
CONDITIONAL USE PERMIT
(c) BAYMARK CONSTRUCTION CO~.
AMENDMENT/COURTHOUSE
EST,4TES LAND USE PLAN
PLANNING
,
(a) VIRGINIA BEACH FISHING PIER, INC.
ENL,4RGEMENT OF
NONCONFORMING USE
(b) 15TH STREET FISHING PIER
FRANCHISE ,4 GREEMENT
(c) MCSHORT, INC.
ENLARGEMENT OF A
NONCONFORMING USE
(d) COLUMBUS CENTER ASSOCIATES
STREET CLOSURE
(e) ALBERMARLE TIMBER, INC.
CONDITIONAL USE PERMIT
(f) R. H. ROSE
CONDITIONAL CHANGE OF
ZONING DISTRICT
CLASSIFIC,4 TION
(g) TIDEWATER WESTMINSTER HOMES, INC.
CONDITIONAL CHANGE OF
ZONING DISTRICT
CLASSIFIC,4 TION
June 22, 1993
- 38 -
Item III-J.l.a.
PUBLIC HEARING
ITEM # 36949
PLANNING BY CONSENT
Upon motion by Councilman Lanteigne, seconded by Councilman Baum, City Council APPROVED the
application of ELVA B. LEE for a Variance to Section 4.4(b) of the Subdivision Ordinance which
requires that all lots created by subdivision meet all requirements of the City Zoning Ordinance
Appeal from Decisions of Administrative officers in regard to certain
elements of the Subdivision Ordinance, Subdivisions for Elva B. Lee.
Property is located at 1573 Princess Anne Road. PUNGO BOROUGH.
The following condition shall be required:
1. A 15-foot or greater ingress/egress easement is required for
the residual parcel.
The OWNER OR LEGAL REPRESENTATIVE of the Owner, has reviewed the condition for
APPROVAL and has signed a STATEMENT OF CONSENT. Said STATEMENT OF CONSENT is
hereby made a part of the proceedings.
This Ordinance shall be effective in accordance with Section 107 (]) of the Zoning Or&nance.
Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-second of June_, Nineteen
Hundred and Ninety-Three.
Voting: 11-0
Council Members Voting Aye:
John A. Baton, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
STATEMENT OF CONSENT
APPLICANT:
ELVA B. LEE
APPLICATION:
Variance -
1573 Princess Anne Road
(PUNGO BOROUGH)
DESCRIPTION:
Section 4.4(b), Subdivision Ordinance
(lots created by subdivision meet requirements of the CZO)
Section 4.4(d), Subdivision Ordinance
(direct access to a public street)
CITY COUNCIL SESSION:
June 22, 1993
THE UNDERSIGNED OWNER OR LEGAL REPRESENTATIVE FOR THE OWNERS,
(or Agent for the Owner), HAS REVIEWED THE CONDITIONS FOR APPROVAL
(REQUIREMENTS) RECOMMENDED BY THE VIRGINIA BEACH PLANNING COMMISSION TO
THE VIRGINIA BEACH CITY COUNCIL FOR AFFIRMATIVE ACTION ON THIS DATE AS THEY
APPLY TO THE REFERENCED APPLICATION FOR AMENDMENT TO THE ZONING MAP OF
THE CITY OF VIRGINIA BEACH, VIRGINIA, AND HEREBY ACCEPTS AND AGREES TO:
.
A fifteen (15)-foot or greater ingress/egress easement is required
for the residual parcel.
By:
Attorney/Agent
Date:
- 39 -
Item III-J. l.b.
PUBLIC HEARING
ITEM # 36950
PLANNING BY CONSENT
Upon motion by Councilman Dean, seconded by Council Lady Parker, City Council ADOPTED an
Ordinance upon application of CARROL S. GILES for a Conditional Use Permit:
ORDINANCE UPON APPLICATION OF CARROL S. GILES FOR A
CONDITIONAL USE PERMIT FOR AN AUTOMOBILE REPAIR
GARAGE (ADDITION) R06931831
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon application of Carrol S. Giles for a Conditional Use
Permit for an automobile repair garage (addition) on the south side of
Harpers Road, 1.3 miles southwest of Oceana Boulevard. Said parcel is'
located at 1741 Harpers Road and contains 2.25 acres. PRINCESS
ANNE BOROUGH.
The following conditions shall be required:
A ten (lO)-foot landscaping strip is required along this site's
frontage on Harper's Road with landscaping as specified in
Section 5.5 of the Site Plan Ordinance.
The front of the storage yard shall be screened with Category
I plant material and a chain link fence with interwoven solid
slats. This screening is currently existing. Category I plant
material and a chain link fence with the slats is also required
along the Western property line from the beginning of the
proposed addition South approximately seventy-five (75') feet.
(Note: Because the City Zoning Ordinance requires that bulk
storage yards and automobile repair garages be completely
enclosed with Category VI screening, a variance is needed from
the Board of Zoning Appeals. If the variance is approved,
Condition #2 will apply.)
3. No outside auto repair work or outside storage parts will be
permitted where it may be seen by the public from the highway.
All outdoor lights shall be shielded to direct light and glare
onto the premises and focused away from all adjoining
property. Any outdoor lighting ,fixtures shall not be erected any
higher than fourteen (14') feet.
The utilization of Best Management Practices for controlling
stormwater runoff which are reasonably applicable to the
development of the site and in keeping with the
recommendations for the proposed Back Bay/North Landing
River Management District.
6.
The fifty (50')-foot landscaped setback to the fence, as shown
on the submitted site plan, shall be measured from the edge of
the existing pavement on Harpers Road. If Harpers Road is
widened in the future, the fence will be relocated so that it will
always be fifty (50') feet from the paved portion of Harpers
Road.
June 22, 1993
Item III-J. I. b.
PUBLIC HEARING
ITEM # 36950 (Continued)
PLANNING BY CONSENT
The OWNER OR LEGAL REPRESENTATIVE of the Owner, has reviewed the conditions ,for
APPROVAL and has signed a STATEMENT OF CONSENT. Said STATEMENT OF CONSENT is
hereby made a part of the proceedings.
This Ordinance shall be effective in accordance with Section 107 (JO of the Zoning Ordinance.
Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-second of June, Nineteen
Hundred and Ninety-Three.
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis 1~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy K Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
STATEMENT OF CONSENT
APPLICANT:
APPLICATION:
DESCRIPTION:
CITY COUNCIL SESSION:
CARREL S. GILES
Conditional Use Permit -
Harpers Road/Oceana Boulevard
(PRINCESS ANNE BOROUGH)
Automobile repair garage (addition)
June 22, 1993
THE UNDERSIGNED OWNER OR LEGAL REPRESENTATIVE FOR THE OWNERS,
(or Agent for the Owner), HAS REVIEWED THE CONDITIONS FOR APPROVAL
(REQUIREMENTS) RECOMMENDED BY THE VIRGINIA BEACH PLANNING COMMISSION TO
THE VIRGINIA BEACH CITY COUNCIL FOR AFFIRMATIVE ACTION ON THIS DATE AS THEY
APPLY TO THE REFERENCED APPLICATION FOR AMENDMENT TO THE ZONING MAP OF
THE CITY OF VIRGINIA BEACH, VIRGINIA, AND HEREBY ACCEPTS AND AGREES TO:
.
A ten (10)-foot landscaping strip is required along this site's
frontage on Harper's Road with landscaping as specified in Section
5.5 of the Site Plan Ordinance.
.
The front of the storage yard shall be screened with Category I
plant material and a chain link fence with interwoven solid slats.
This screening is currently existing. Category I plant material and
a chain link fence with the slats is also required along the Western
property line from the beginning of the proposed addition South
approximately seventy-five (75') feet. (Note: Because the City
Zoning Ordinance requires that bulk storage yards and automobile
repair garages be completely enclosed with Category VI screening,
a variance is needed from the Board of Zoning Appeals. If the
variance is approved, Condition #2 will apply.)
.
No outside auto repair work or outside storage parts will be
permitted where it may be seen by the public from the highway.
.
All outdoor lights shall be shielded to direct light and glare onto the
premises and focused away from all adjoining property. Any
outdoor lighting fixtures shall not be erected any higher than
fourteen (14') feet.
.
The utilization of Best Management Practices for controlling
stormwater runoff which are reasonably applicable to the
development of the site and in keeping with the recommendations
for the proposed Back Bay/North Landing River Management
District.
.
Date:
The fifty (50')-foot landscaped setback to the fence, as shown on
the submitted site plan, shall be measured from the edge of the
existing pavement on Harpers Road. If Harpers Road is widened
in the future, the fence will be relocated so that it will always be fifty
(50') feet from the paved portion of Harpers Road.
- 41 -
Item III-J.l.c.
PUBLIC HEARING
ITEM # 36951
PLANNING BY CONSENT
Richard "Tuck" Bowie, represented the applicant
Upon motion by Councilman Dean, seconded by Vice Mayor Sessorns, City Council ADOPTED an
Ordinance upon application of BAYMARK CONSTRUCTION CORPORATION for an amendment to
the Courthouse Estates Land Use Plan:
ORDINANCE UPON APPLICATION OF BA YMARK CONSTRUCTION
CORPORATION FOR AN AMENDMENT TO THE COURTHOUSE
ESTATES LAND USE PLAN Z06931388
BE ~ HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon application of Baymark Construction Corp., for an
amendment to the Court House Estates Land Use Plan. The current land
use plan allows for a maximum of 4,878 mixed residential units,
commercial uses and public sites. The proposed land use plan allows for
a maximum of 1467 single family units and open space areas. Said
proeprty is loated on the south side of North Landing Road and the north
and south sides of Indian River Road, east of Two Farms Lane. Said
parcel contains 402.4 acres. PRINCESS ANNE BOROUGH.
The following condition shall be required:
The subject site shall be developed in conformance with the
attached site plan entitled "Conceptual Land Use Plan, Court
House Estates" dated March 30, 1993, the Corridor Landscape
Plan entitled "Site Details" undated and the development
ordinance entitled "Courthouse Estates Development
Ordinance" dated April 30, 1993.
The City will have a tasteful sign indicating this will be the future home of the Southeastern Connector
Roadway.
The OWNER OR LEGAL REPRESENTATIVE of the Owner, has reviewed the condition for
APPROVAL and has signed a STATEMENT OF CONSENT. Said STATEMENT OF CONSENT is
hereby made a part of the proceedings.
This Ordinance shall be effective in accordance with Section 107 09 of the Zoning Ordinance.
Adopted by the Council of the City of Virginia Beach, Virginia, on the Twen~_ -second of June, Nineteen
Hundred and Ninety-Three.
June 22, 1993
It¢tn III-J. 1. c.
PUBLIC HEARING
ITEM # 36951 (Continued)
PLANNING BY CONSENT
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf,, Nancy K~ Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
STATEMENT OF CONSENT
APPLICANT:
BAYMARK CONSTRUCTION CORP.
APPLICATION:
Amendment to Land Use Plan
North Landing Road/Indian River Road
(PRINCESS ANNE BOROUGH)
DESCRIPTION:
Courthouse Estates Land Use Plan
CITY COUNCIL SESSION:
June 22,1993
THE UNDERSIGNED OWNER OR LEGAL REPRESENTATIVE FOR THE OWNERS,
(or Agent for the Owner), HAS REVIEWED THE CONDITIONS FOR APPROVAL
(REQUIREMENTS) RECOMMENDED BY THE VIRGINIA BEACH PLANNING COMMISSION TO
THE VIRGINIA BEACH CITY COUNCIL FOR AFFIRMATIVE ACTION ON THIS DATE AS THEY
APPLY TO THE REFERENCED APPLICATION FOR AMENDMENT TO THE ZONING MAP OF
THE CITY OF VIRGINIA BEACH, VIRGINIA, AND HEREBY ACCEPTS AND AGREES TO:
,
The subject site shall be developed in conformance with the
attached site plan entitled "Conceptual Land Use Plan, Court House
Estates" dated March 30, 1993, the Corridor Landscape Plan
entitled "Site Details' undated and the development ordinance
entitled "Courthouse Estates Development Ordinance" dated April
30, 1993.
Owner
Item III-J. 2. a.
PUBLIC HEARING
ITEM # 36952
PLANNING
Attorney R. J. Nutter, 4425 Corporation Lane, Phone: 671-6000, represented the applicant
Upon motion by Councilman Branch, seconded by Vice Mayor Sessoms, City Council ADOPTED the
application of VIRGINIA BEACH FISHING PIER, INC. for the enlargement of a nonconforming use.
Application of Virginia Beach Fishing Pier, Inc., for the enlargement of
a nonconforming use to construct an open deck at 1513 Atlantic Avenue
(Ocean Eddie's). VIRGINIA BEACH BOROUGH.
Resolution authorizing the enlargement of a nonconforming use located
at the oceanfront and 15th Street, Borough of Virginia Beach (VIRGINIA
BEACH FISHING PIER)
The following conditions shall be required:
The proposed improvements are to be constructed substantially
as shown on the rendering displayed to City Council and on file
in the Resort Programs Office of the City.
No music shall be generated on or broadcast onto the deck
addition.
The only signage associated with the increase will be
substantially as shown on the rendering displayed to City
Council and on file in the Resort Programs Office of the City.
The deck addition will be closed between 10:00 PM and
8.'00 AM.
This Ordinance shall be effective in accordance with Section 107 69 of the Zoning Ordinance.
Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-second of June, Nineteen
Hundred and Ninety-Three.
June 22, 1993
Item III-J. 2.a.
PUBLIC HEARING
ITEM # 36952 (Continued)
PLANNING
Voting: 11-0
Council Members Voting Aye:
John ,4. Baton, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K Dean, Louis I~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy K, Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
Items J.2.a. and J.2.b were voted upon together.
June 22, 1993
RESOLUTION AUTHORIZING THE
ENLARGEMENT OF A NONCONFORMING USE
LOCATED AT THE OCEANFRONT AND 15TH
STREET, BOROUGH OF VIRGINIA BEACH
(VIRGINIA BEACH FISHING PIER)
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12
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21
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27
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WHEREAS, Virginia Beach Fishing Pier, Inc., hereinafter
referred to as the Applicant, is the owner of the Virginia Beach
Fishing Pier, located at the Oceanfront and 15th Street, Borough of
Virginia Beach, in the RT-1 Resort Tourist District; and
WHEREAS, the Applicant desires to construct an eight (8)
foot by one hundred and five (105) foot cantilevered open deck on
the south side of the existing pier structure to serve as an
outdoor dining patio for the existing restaurant; and
WHEREAS, the present use of the property does not conform
to the provisions of the City Zoning Ordinance because fishing
piers and restaurants are not permitted uses within the RT-1 Resort
Tourist District; and
WHEREAS, pursuant to Section 105(d) of the City Zoning
Ordinance, the City Council may authorize the enlargement of a
nonconforming use if it finds that the use as enlarged is equally
appropriate or more appropriate to the zoning district than is the
existing nonconformity;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That the City Council hereby finds that the proposed Virginia
Beach Fishing Pier and restaurant, as enlarged, is equally
appropriate or more appropriate to the RT-1 Resort Tourist District
than is the existing pier and restaurant.
29
30
31
32
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That the City Council hereby authorizes the enlargement of the
Virginia Beach Fisher Pier and restaurant as stated hereinabove.
33
34
ADOPTED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, ON THIS 22 DAY OF June , 1993.
35
36
37
38
CA-5183
ORDIN\NONCODE\FISHING. RES
R-1
PREPARED: 06/10/93
APPROVED~A~.~O CONi'ENI'$
DEPARTMENT
AS TO
Item III-J. 2. b.
PUBLIC HEARING
ITEM # 36953
PLANNING
Upon motion by Councilman Branch, seconded by Vice Mayor Sessorns, City Council ADOPTED:
Ordinance authorizing modification of the Franchise Agreement between
the City of Virginia Beach and the owners of the 15th Street Fishing
Pier to increase the size of the restaurant.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert ~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
Items J.2.a. and J.2.b were voted upon together.
June 22, 1993
AN ORDINANCE AUTHORIZING MODIFICATION OF THE
FRANCHISE AGREEMENT BETWEEN THE CITY OF
VIRGINIA BEACH AND THE OWNERS OF THE 15TH
STREET FISHING PIER
10
11
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13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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36
WHEREAS, the franchise agreement ("Agreement") between
the City of Virginia Beach and the owners of the 15th Street
Fishing Pier, dated October 1, 1990, permits, among other uses, the
operation of "one restaurant with a maximum area of 4,600 square
feet";
WHEREAS, such owners have applied for an enlargement of
a nonconforming use in order to construct an open deck on the south
side of the pier to serve as an outdoor dining patio for the
existing restaurant;
WHEREAS, the size of the existing restaurant is below
that permitted by the Agreement but, with the addition of the
proposed deck, will increase the size of the restaurant to one
hundred and ninety (190) square feet larger than the maximum size
permitted by the Agreement; and
WHEREAS, the owners of the pier have, therefore,
requested, in conjunction with their application for enlargement of
a nonconforming use, that the Agreement be modified to increase the
maximum permissible size of the restaurant from 4,600 square feet
to 4,800 square feet.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That City Council hereby authorizes modification of the
franchise agreement between the City of Virginia Beach, Virginia,
and the owners of the 15th Street Fishing Pier, dated October 1,
1990, to increase the maximum permissible size of the restaurant
from 4,600 square feet to 4,800 square feet.
Adopted by the Council of the City of Virginia Beach,
Virginia, on the ~ day of
,'I'11TI l~
CA-5166
ORDIN\NONCODE\FISHPIER.ORD
R-1
PREPARED: June 16, 1993
, 1993.
APPROVED AS TO
ill
Item III-J. 2. c.
PUBLIC HEARING
ITEM # 36954
PLANNING
Attorney Charles Salle, 192 Ballard Court, represented the applicant
Letter from Captain J. W. Craine, Jr., U.S. Navy, Commanding Officer - Naval Air Station Oceana,
advising this application lies within the AICUZ high noise zone 3. Said letter is hereby made a part of
the record.
Upon motion by Councilman Brazier, seconded by Councilman Baum, City Council ADOPTED a
Resolution upon application of MCSHORT, INC. for an enlargement of a nonconforming use.
Application of McShort, Inc., a VA Corporation for the enlargement of
a nonconforming use on certain property located 959 Virginia Beach
Boulevard. LYNNHAVEN BOROUGH.
Resolution authorizing the enlargement of a nonconforming use located
at 959 Virginia Beach Boulevard. Property of McShort, Inc., Borough
of Lynnhaven.
Voting: 10-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James IV.. Brazier, Jr, Robert W..
Clyburn, Robert ~ Dean, Louis R Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf and Nancy K. Parker
Council Members Voting Nay:
None
Council Members Abstaining:
Vice Mayor William D. Sessoms, Jr.
Council Members Absent:
None
Vice Mayor Sessoms ABSTAINED as he has a business relationship with the applicant.
June 22, 1993
WILLIAM D SESSOMS JR
VICE MAYOR
C~ity of Virginia
809 GREENTREE ARCH
VIRGINIA BEACH ViRGiNIA 23451
(804) 455-5732
June 30, 1993
Mrs. Ruth Hodges Smith, CMC/AAE
City Clerk's Office
Municipal Center
V~rginia Beach, Virginia 23456
Re: Abstention Pursuant to § 2.1-639.14(E), Code of Virginia
Dear Mrs. Smith:
At the June 22, 1993, meeting of City Council, the Council, by a vote of 10-0,
approved the application of McShort, Inc. for the enlargement of a nonconforming use on
certain property located at 959 Virginia Beach Boulevard. The subject site contains 2.7 acres
upon which 55 mobile homes are located. Central Fidelity Bank (CFB), of which I am an
officer, financed the origmal project via its Commercial Loan Department. As you may
recall, and as the minutes of Council should reflect, I orally declared an interest in the
transaction and abstained from participating in Council's discussion and vote on the
application. The purpose of this letter is to confirm, in writing, the declaration which I made
on June 22, 1993.
Accordingly, I respectfully request that you record this declaration in the official
records of City Council as a supplement to my oral declaration.
Thank you for your assistance and cooperation in this matter.
Very tmly yo~s,
~iam D. Sessoms, Jr.
Vice-Mayor
WDS,Jr./clb
RESOLUTION AUTHORIZING THE
ENLARGEMENT OF A NONCONFORMING USE
LOCATED AT 959 VIRGINIA BEACH BLVD.
PROPERTY OF McSHORT, INC. , BOROUGH
OF LYNNHAVEN
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WHEREAS, McSHORT, INC., hereinafter referred to as the
Applicant, is the owner of a mobile home park located at 959
Virginia Beach Blvd., Borough of Lynnhaven, in the A-12 Apartment
District; and
WHEREAS, the Applicant desires to enlarge the said mobile
home park by adding additional acreage to it; and
WHEREAS, the present use of the property does not conform
to the provisions of the City Zoning Ordinance because the existing
mobile home park exceeds the allowed density; and
WHEREAS, pursuant to Section 105(d) of the City Zoning
Ordinance, the City Council may authorize the enlargement of a
nonconforming use if it finds that the use as enlarged is equally
appropriate or more appropriate to the zoning district than is the
existing nonconformity;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF VIRGINIA BEACH, VIRGINIA:
That City Council hereby finds that the proposed mobile home
park of the Applicant, if enlarged as proposed by the Applicant,
would be equally appropriate to the A-12 Apartment District than
is the existing nonconformity.
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That the City Council hereby authorizes the enlargement of the
Applicant's mobile home park as proposed by its application and in
accordance with all building, site plan and other requirements of
the City of Virginia Beach.
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ADOPTED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, ON THIS 22 DAY OF June , 1993.
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CA-5184
ORDIN \NONCODE \MCSHORT. RES
R-1
PREPARED: 06/10/93
/,~'P£-. ~'V%/~O CON]'ENI'$
SIGNATURE
,,
DEPARTMENT
~,PPROVED AS TO LEGAL
SUFFICLENCY AI~D FORM
- 47 -
Item III-J. 2. d.
PUBLIC HEARING
ITEM # 36955
PLANNING
Upon motion by Councilman Jones, seconded by Council Lady Parker, City Council DEFERRED AN
ADDITIONAL 180 DAYS FOR COMPLIANCE the Petition of COLUMBUS CENTER ASSOCIATES
for the discontinuance, closure and abandonment of a portion of Columbus Street beginning at the Eastern
boundary of Constitution Drive.
Petition of Columbus Center Associates for the discontinuance, closure
and abandonment of a portion of Columbus Street beginning at the
eastern boundary of Constitution Drive and running in an easterly
direction a distance of 650 feet. Said street is 50 feet in width and
contains 33,854 square feet. More detailed information is available in the
Department of Planning. BAYSIDE BOROUGH.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W. Brazier, Jr., Robert W..
Clyburn, Robert ~ Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members l/'oting Nay:
None
Council Members Absent:
None
June 22, 1993
Item llI-J. 2. e.
PUBLIC HEARING
ITEM it 36956
PLANNING
Upon motion by Councilman Dean, seconded by Councilman Moss, City Council DEFERRED
INDEFINITELY an Ordinance upon application of ALBERMARLE TIMBER, INC. for a Conditional
Use Permit:
ORDINANCE UPON APPLICATION OF ALBERMARLE TIMBER, INC.,
FOR A CONDITIONAL USE PERMIT FOR A FIREWOOD
PREPARATION FA CILITY
Ordinance upon application of Albermarle Timber, Inc., for a Con&tional
Use Permit for a firewood preparation facility on the east side of
Princess Anne Road, 800 feet more or less north of Indian River Road.
Said parcel is located at 1824 Princess Anne Road and contains 52
acres. PRINCESS ANNE BOROUGH.
The Director of Planning and the City Clerk shall notify the applicant by letter that he must contact
Councilman Dean and advise he will be present to represent his application during the City Council
Session.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis 1~ Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy IC Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
- 49 -
Item III-J. 2.f
PUBLIC HEARING
ITEM # 36957
PLANNING
NO ACTION REQUIRED AS PLANNING COMMISSION DEFERRED FOR 60 DAYS the Application
of R. H. ROSE for a Conditional Change of Zoning District Classification from I-1 Light Industrial
District to I-2 Heavy_ Industrial District 1100 feet more or less Southeast of intersection of Southern
Boulevard and Sykes Avenue, containing 3 acres (LYNNHAVEN BOROUGH).
ORDINANCE UPON APPLICATION OF R~ H. ROSE FOR A CHANGE
OF ZONING DISTRICT CLASSIFICATION FROM I-1 TO 1-2
Ordinance upon application of R. H. Rose for a Change of Zoning
District Classification from I-1 Light Industrial District to 1-2 Heavy
Industrial District on certain property located 1100 feet more or less
southeast of the intersection of Southern Boulevard and Sykes Avenue.
The proposed zoning classification change to 1-2 is for industrial land
use. The Comprehensive Plan recommends use of this parcel for
industrial use in accordance with other Plan policies. LYNNHAVEN
BOROUGH.
June 22, 1993
Item III-J. 2.g.
PUBLIC HEARING
ITEM # 36958
PLANNING
Dr. Sam gE. Ray, Jr., 1431 Brunswick Avenue, Phone: 423-6938, 426-2394
Manning Merritt, represented Tidewater Westminister Homes. Mr. Merritt requested approval for 109
units with the provision that only 87 can now be hooked up, and the additional 22 units would have to
be connected to an approved well water system.
Captain Les Fenlon, 2224 Scallop Road, Phone: 481-2501, represented the Great Neck Association of
Civic Leagues
Michael J. Barrett, 1829 Eden Way, represented the Vintage Investment Corporation
Upon motion by Councilman Brazier, seconded by Vice Mayor Sessoms, City Council ADOPTED
Ordinances upon application of TIDEWATER WESTMINSTER HOMES, INC. for a Conditional
Change of Zoning District Classification and a Conditional Use Permit:
ORDINANCE UPON APPLICATION OF TIDEWATER WESTMINSTER
HOMES~ INC. FOR A CONDITIONAL CHANGE OF ZONING DISTRICT
CLASSIFICATION FROM B-2 TO B-4 Z06931389
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon application of Tidewater Westminster Homes, Inc., for
a Conditional Change of Zoning District Classification from B-2
Community Business District to B-4 Resort Commercial District on
certain property located at the southwest corner of Shore Drive and
Sunstates Court. The proposed zoning classification change to B-4
Resort Business District is for commercial facih'ties to serve visitors to
the resort area. The Comprehensive Plan recommends use of this parcel
for Retail/Service use in accordance with other plan policies. Said parcel
contains 1.819 acres. LYNNHAVEN BOROUGH.
The following condition shall be required:
1. An Agreement encompassing proffers shall be recorded with the
Clerk of Circuit Court.
AND,
ORDINANCE UPON APPLICATION OF TIDEWATER WESTMINSTER
HOMES~ INC. FOR A CONDITIONAL USE PERMIT FOR A HOME
FOR THE AGED R06931832
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon application of Tidewater Westminster Homes, Inc. for a
Conditional Use Permit for a home for the aged on certain property
located at the southwest corner of Shore Drive and Sunstates Court. Said
parcel contains 1.891 acres. LYNNHAVEN BOROUGH.
The following condition shall be required:
1. Prior to any building permit being issued, all billboards shall
be removed.
Jun e 22, 1993
- 51 -
Item III-J. 2.e.
PUBLIC HEARING
ITEM # 36958 (Continued)
PLanNING
This Ordinance shall be effective in accordance with Section 107 69 of the Zoning Ordinance.
Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-second of June. Nineteen
Hundred and Ninety-Three.
Voting: 11-0
Council Members Voting Aye:
John A. Baton, Linwood 0 Branch, III, James W. Brazier, Jr, Robert W.
Clyburn, Robert K. Dean, Louts R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndoff, Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
FORM NO P S lB
OF OuR NF1~°~
City o£ Virginia Beach
~-o~c~ co~s~o~c~
In Reply Please Re[et to DF-3337
DATE: May 4, 1993
TO: Leslie L. Lilley DEPT:
Gary L. Fentres~~
TIDEWATER WESTMINSTER HOMES
Proffer Agreement
FROM: DEPT:
RE:
City Attorney
City Attorney
Enclosed is a copy of the proffer agreement submitted by the
referenced applicant. The proffer agreement is acceptable as to
legal form.
GLF / dhh
Enclosure
THIS AGREEMENT, Made this 12th day of April, 1993, by and
between GSH Great Neck Associates, a Virginia General Partnership,
Vintage Investment Corporation, and Salvatore Fiore and Yvette
Fiore, husband and wife, current fee simple owners and Tidewater
Westminster Homes, Incorporated, who has contracts to purchase the
interest of GSH Great Neck Associates, Vintage Investment
Corporation, and Salvatore Fiore and Yvette Fiore, collectively,
(hereinafter known as Grantor), and the CITY OF VIRGINIA BEACH,
municipal corporation of the Commonwealth of Virginia, (hereinafter
referred to as Grantee)
W I T N E S S E T H:
WHEREAS, the Grantor has initiated an amendment to the Zoning
Map of the City of Virginia Beach, Virginia, by petition of the
Grantor addressed to the Grantee, so as to change the
classification of the Grantor's Property from B-2 (Community
Business District) tb B-4 {Resort Commercial District), on certain
property on the south side of Shore Drive and the west side of
Sunstates Court in the Lynnhaven Borough of the City of Virginia
Beach, Virginia, more particularly described hereinafter as
follows:
PARCEL ONE: ALL THAT certain lot, piece or parcel of land,
with the buildings and improvements thereon, lying, situate
and being in the City of Virginia Beach, Virginia, and being
known, numbered and designated as Lot 3 (1.075 acres,
46,827.59 sq. ft.) as shown on that certain plat entitled,
"Subdivision of Parcel ~A' David I Levine and Gale M Levine
(M.B. 187, at page 26) Property of Sunstates Properties,
Lynnhaven Borough, Virginia Beach, Virginia," dated February
3, 1986 and made by Stephen I. Boone & Associates, Land
Surveyors, said plat being recorded in the Clerk's Office of
the circuit Court of the City of Virginia Beach, Virginia, in
Deed Book 2499, at page 786.
It being the same property conveyed to the Grantors herein,
by deed from Sunstates Properties, Inc., a Delaware
Corporation, dated November 7, 1986 and recorded immediately
prior hereto.
PARCEL TWO: ALL THAT certain parcel of land, together with
the appurtenances thereunto belonging, lying, situate and
being in the Lynnhaven Magisterial District, City of Virginia
Beach, Virginia, fronting on Shore Drive and more particularly
bounded and described as follows:
Beginning at a point in the Southern line of the right-of-
way of the Shore Drive, which point is located South 63
degrees, 42 minutes, 40 seconds West, one hundred-fifty (150)
feet measured along the Southern line of the right-of-way of
the Shore Drive from the Western line of the right-of-way of
the Shore Drive from the Western line of the property now or
formerly Seaview Hotel and Beach Corporation, from said point
extending South 18 degrees, 19 minutes, 06 seconds, East
150.44 feet to a point; thence South 74 degrees, 58 minutes,
30 seconds, West, 129.34 feet to a point; thence North 18
degrees, 07 minutes, 40 seconds, West, 124.92 feet to the
Southern line of the right-of-way of the Shore Drive; thence
along the line of the right-of-way of the Shore Drive, North
63 degrees, 42 minutes, 40 seconds, East, one hundred thirty
(130) feet to the point of beginning.
IT BEING the same property conveyed to Vintage Imports, Ltd.
by deed from Fine Investment Company, Incorporated, dated
February 28, 1980, recorded June 13, 1980, in Deed Book 2016,
Page 501.
PARCEL THREE: ALL THAT certain parcel of land, together with
the appurtenances thereunto belonging, lying, situate and
being in the Lynnhaven Borough of the City of Virginia Beach,
Virginia, and designated as Parcel "1" on that certain plat
entitled "Resubdivision of Subdivision of Parcel 'A' David
I. and Gale M. Levine (M.B. 187, Pg. 26), Property of
Sunstates Properties", made by Stephen I. Boone & Associates,
P. C., dated February 3, 1986, and recorded in the Office of
the Clerk of the Circuit Court of the City of Virginia Beach,
Virginia, in Deed Book 2499, at page 786.
IT BEING a portion of the same property conveyed to Sunstates
Properties, Inc., a Delaware corporation, by deed from David
I. Levine and Gale M. Levine, dated July 15, 1985, recorded
July 15, 1985, in Deed Book 2426, Page 809.
--2--
WHEREAS, the Grantee's policy is to provide only for orderly
development of land, for various purposes, including homes for the
aged, disabled and handicapped, through zoning and other land
development legislation; and
WHEREAS, the Grantor acknowledges that the competing and
sometimes incompatible uses conflict and that in order to permit
differing uses on and in the area of the subject property and at
the same time, to recognize the effects of the changes and the need
for various types of uses, including those listed above, certain
reasonable conditions governing the use of the property for the
protection of the community that are not generally applicable to
land similarly zoned B-4 are needed to cope with the situation to
which the Grantor's rezoning application gives rise; and
WHEREAS, the Grantor has voluntarily proffered in writing in
advance of and prior to the public hearing before the Grantee, as
part of the proposed amendment to the Zoning Map, in addition to
the regulations provided for in the existing B-4 zoning district
by the existing Comprehensive Zoning Ordinance, the following
reasonable conditions relating to the physical development and
operation of the property to be adopted as a part of said amendment
to the new Zoning Map relative to the property described above,
which have a reasonable relation to the rezoning and the need for
which is generated by the rezoning; and
WHEREAS, said conditions having been proffered by the Grantor
to be effective upon the rezoning of the property and allowed and
accepted by the Grantee as part of the amendment to the Zoning
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Ordinance, such conditions shall continue in full force and effect
until a subsequent amendment changes the zoning on the property
covered by such conditions; provided, however, that such conditions
shall continue despite a subsequent amendment if the subsequent
amendment is part of the comprehensive implementation of a new or
substantially revised zoning ordinance, unless, notwithstanding the
foregoing, these conditions are amended or varied by written
instrument recorded in the Clerk's Office of the Circuit Court of
the City of Virginia Beach, Virginia, and executed by the record
owner of the subject property at the time of recordation of such
instrument; provided, further, that said instrument is consented
to by the Grantee in writing as evidenced by a certified copy of
ordinance or resolution adopted by the governing body of the
Grantee, after a public hearing before the Grantee advertised
pursuant to the provisions of the Code of Virginia, Section 15.1-
431, which said ordinance or resolution shall be recorded along
with said instrument as conclusive evidence of such consent.
NOW, THEREFORE, the Grantor, for themselves, their successors,
assigns, grantees, and other successors in title or interest,
voluntarily and without any requirement by or exaction from the
Grantee or its governing body and without any element of compulsion
of quid pro quo for zoning, rezoning, site plan, building permit
or subdivision approval, hereby makes the following declaration of
conditions and restrictions as to the physical development and
operation of the property and governing the use thereof and hereby
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tenders the following covenants running with the said property,
which shall be binding following the approval of Grantor's rezoning
Petition by Grantee upon the property and upon all parties and
persons claiming under or through the Grantor, its heirs, personal
representatives, assigns, grantees and other successors in interest
or title, namely:
1. The following uses shall be prohibited on the
property'.
a) Attached dwellings;
b) Home occupations;
c)
d)
Hotels and motels;
Multiple family dwellings, except for homes for the
aged or disabled.
The Grantor covenants and agrees that (1) the Zoning
Administrator of the City of Virginia Beach, Virginia shall be
vested with all necessary authority on behalf of the governing body
of the City of Virginia Beach, Virginia to administer and enforce
the foregoing conditions, including (i) the ordering in writing of
the remedying of any non-compliance with such conditions, and (ii)
the bringing of legal action or suit to ensure compliance with such
conditions, including mandatory or prohibitory injunction,
abatement, damages or other appropriate action, suit or
proceedings; ( 2 ) the failure to meet all conditions shall
constitute cause to deny the issuance of any of the required
building or occupancy permits as may be appropriate; (3) if
aggrieved by any decision of the Zoning Administrator made pursuant
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to the provisions of the City Code, the CZO or this Agreement, the
Grantor shall petition to the governing body for the review thereof
prior to instituting proceedings in court; and (4) the Zoning Map
shown by an appropriate symbol on the map the existence of
conditions attaching to the zoning of the subject property on the
map and that the ordinance and the conditions may be made readily
available and accessible for public inspection in the office of the
Zoning Administrator and in the Planning Department and that they
shall be recorded in the Clerk's Office of the Circuit Court of the
city of Virginia Beach, Virginia and indexed in the name of the
Grantor and Grantee.
WITNESS following signatures and seals:
GSH GREAT ~SOCIATES
/
By:
'"~Jac~ ,onIH Pope -
General Partner
VINTAGE INVESTMENT CORPORATION
By
Andrew S. Fine
President
TIDEWATER WESTMINSTER
HOMES, INC.
-~ V Salvatore ~6re
By
Y~ette Fiore
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The foregoing agreement dated the 12th ~y of__ April, 1993,
by ~~d'~_.,~2~/ _//~ ,~/~--- , General Partner of GSH GREAT
Notary Publtc
My Commission Expires:
STATE OF VIRGINIA
CITY OF
-~ My Commission Expires:
D
The foregoing agreement dated the 12th day,of April, 1993,
was acknowledged before me this /~u day of 6~, 1993
by ~6.~c~. ~ ~z-~ , President of'VINTAGE INVESTMENT
CORPORATION.
Notary Pu~ic
z_ STATE OF VIRGINIA
w CITY OF
The foregoing agreement dated the 12th day of April, 1993,
was ~cknowledged before me this /~ day of _~04/~-. 1993
by ~-~;%_-~.u;. f~, . ~'~.. , President of TIDEWATER
My Commission Expires:
Notary Pubi~
STATE OF VIR. GINIA
CITY OF
The foregoing agreement dated the 12th day of April, 1993,
was acknowledged before me this /~t~ day of ~/~k(, 1993
by .~lul}~,¢ ~ORL · ' '
~ UNotary P~blic
My Commission Expires
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STATE OF VIRGINIA
CITY OF
The foregoing agreement dated the 12th day of April,
was acknowledged before me this /JH~day of
by ~/~!~ ~c' ~ c~L .
/
~ ~6tary P~lic
My Commission Expires:
1993,
1993
-8-
Item III-J.K 1.
UNFINISHED BUSINESS
ITEM # 36959
Councilman Baum referenced his comments on May Eleventh relative the Planning Commission's proposed
recommendations for revising the Comprehensive Plan in the southern part of the City.
Councilman Baum expressed concern relative the application to the Planning Commission of eighteen (18)
units proposed on thirty acres on Charity Neck Road.
June 22, 1993
Item III-L.l.a.
NEW BUSINESS
ITEM # 36960
COUNCIL-SPONSORED ITEMS
Upon motion by Vice Mayor Sessorns, seconded by Councilman Moss, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Section 4-2 of the Code of the
City of Virginia Beach, Virginia re family-oriented billiard facilities.
(Sponsored by Vice Mayor William D. Sessoms, Jr.)
Voting: 11-0
Council Members Voting Aye:
John A. Baton, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy IC Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO AMEND AND REORDAIN
SECTION 4-2 OF THE CODE OF THE CITY
OF VIRGINIA BEACH, VIRGINIA,
PERTAINING TO FAMILY-ORIENTED
BILLIARD FACILITIES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 4-2 of the Code of the City of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
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Section 4-2. Minors prohibited in poolrooms and billiard rooms;
exceptions.
(a) No person under the age of eighteen (18) years shall
enter or frequent any public poolroom or billiard room in the city
and no person in charge or control of any such place shall permit
any person under such age to be or remain therein. The proprietor,
manager or other person in charge of such place shall have posted
conspicuously at the entrance thereto a sign in bold letters, not
less than two (2) inches in height, as follows: "NO MINORS UNDER
18 YEARS OF AGE ALLOWED."
(b) The provisions of this section shall not apply to family
billiard centers. For the purposes of this subsection, a "family
billiard center" is defined as a licensed establishment for the
playing of billiards, when such establishment:
(~_1) Is illuminated throughout its interior at a level of
forty (40) footcandles.
(~) Has no partitioned or closed off areas, other than those
for toilet facilities, office space or storerooms, and
all playing areas and billiard tables are visible from
public way or street.
(~) Has a window or windows open to view from a public way or
street, having a minimum of one hundred (100) square feet
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of glass area, which windows shall not be permanently
covered or otherwise obstructed.
(~) Contains only regulation size (minimum measurements four
and one-half (4%) feet by nine (9) feet) billiard tables,
which shall not be of the "coin-operated" type, and such
center shall contain a minimum of ten (10) such tables.
(6_5) Has separate restroom facilities for both sexes.
The operator cr ^-~ ......
.... ~~ of such center must have a
certificate of approval from the police department.
(c) Any person violating this section shall be guilty of a
Class 3 misdemeanor. In case of a second or any subsequent
conviction of the proprietor or other person in charge of a
poolroom or billiard room for violating this section, the permit
for the operation of the establishment may be revoked, in addition
to the fine imposed. In any prosecution for a violation of this
section, proof of presence of a minor in such poolroom or billiard
room shall constitute prima facie evidence of knowledge on the part
of the proprietor or other person then in charge.
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Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of June , 1993.
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CA-5085
~ORDIN~PROPOSED~04-002. PRO
R-1
PREPARED: April 26, 1993
APPROVED AS TO CONTENi..
DEPARTMENT
Item III-L.l.b.
NEW BUSINESS
ITEM # 36961
COUNCIL-SPONSORED ITEMS
Upon motion by Council Lady Parker, seconded by Vice Mayor Sessorns, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Section 21-79 of the Code of
the City of Virginia Beach, Virginia re City Automobile Decals.
(Sponsored by Council Lady Nancy I~ Parker)
Voting: 11-0
Council Members Voting Aye:
John A. Baurn, Linwood O. Branch, III, James W. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndo~ Nancy K. Parker and Vice Mayor
William D. Sessorns, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
AN ORDINANCE TO AMEND AND REORDAIN
SECTION 21-79 OF THE CODE OF THE
CITY OF VIRGINIA BEACH, VIRGINIA,
PERTAINING TO CITY AUTOMOBILE
DECALS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 21-79 of the Code of the City of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
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Section 21-79. Issuance of decal to members of volunteer fire
companies or rescue squads and auxiliary policemen.
City automobile decals shall be issued to members of the
various volunteer fire companies and rescue squads, to allx]]]ary
policemen and to volunteer police chaplains of the city, without
the payment of any tax or fee therefor, in accord with the
following provisions:
(1) The city treasurer shall issue a city automobile decal to
each active member of the various volunteer fire
companies and rescue squads, to each active auxiliary
policeman~ and to each active volunteer police chaplain,
and to each such volunteer who, althouqh presently
inactive, has completed ten (10) or more years of active
service in the city, who shall submit a letter from the
chief of his fire company or rescue squad or, in the case
of auxiliary policemen and volunteer police chaplains,
from the chief of police, stating that he is an active
member of the company or squad or is an active auxiliary
policeman or volunteer police chaplain, or that, if
inactive, he has completed ten (10) or more years of
active service.
(2) Each such member of a volunteer fire company or rescue
squad, auxiliary policeman and volunteer police chaplain
shall, at the time of issuance, agree with the treasurer
to return to the treasurer the city automobile decal
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issued to him, if and when such member, auxiliary
policeman or volunteer police chaplain becomes inactive
prior to completinq ten (10) or more years of active
service.
(3) The chief of each volunteer fire company and rescue squad
and the chief of police shall submit to the treasurer the
names and lenqth of active volunteer service of members,
auxiliary policemen and police chaplains who become
inactive.
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This ordinance shall be effective July 1, 1993.
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Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of June , 1993.
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CA-5050
~ORDIN~PROPOSED~21-079.PRO
R-2
PREPARED: March 30, 1993
Item III-L.l.c.
NEW BUSINESS
ITEM # 36962
COUNCIL-SPONSORED ITEMS
Upon motion by Councilman Brazier, seconded by Councilman Moss, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Section 23-45 of the Code of
the City of Virginia Beach, Virginia re peeping toms.
(Sponsored by Councilman James W.. Brazier, Jr.)
Voting: 11-0
Council Members Voting Aye:
John A. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert K. Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy K. Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
Requested by Councilman James W. Brazier, Jr.
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AN ORDINANCE TO AMEND AND REORDAIN SECTION 23-
45 OF THE CODE OF THE CITY OF VIRGINIA BEACH,
VIRGINIA, PERTAINING TO PEEPING TOMS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
That Section 23-45 the Code of the City of Virginia Beach
be, and hereby is, amended and reordained to read as follows:
Section 23-45. Peeping toms.
(a) If any person enters upon the property of another and
secretly or furtively peeps, spies or attempts to peep or spy into
or through a window, door or other aperture of any building,
structure or other enclosure of any nature occupied or intended for
occupancy to be occupied as a dwelling, whether or not such
building, structure or enclosure is permanently situated or
transportable, and whether or not such occupancy is permanent or
temporary, such person shall be guilty of a Class 1 misdemeanor.
(b) If any person enters upon the property of another and
secretively or furtively peeps, spies or attempts to peep or spy
into any bathroom, dressing room or other enclosure occupied or
intended to be occupied for purposes of dressing or undressing, or
in which a person may reasonably be expected to expose his or her
genitals, pubic area or buttocks, or in which a female may
reasonably be expected to expose her breasts, without the knowledge
and consent of the person or persons occupying such room or other
enclosure, such person shall be guilty of a Class 1 misdemeanor.
(c) If any person, whether present or not, violates the
provisions of subsections (a) and (b) of this section by employing,
causing to be employed, or attempting to employ any device or
instrument designed for purposes of creatinq a videotape,
photoqraph, negative or other visual recording of the person or
persons occupying any dwelling, room or enclosure referred to in
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subsections (a) or (b) of this section, or if any person shall
possess any such videotape, photograph, negative or other visual
recordinG, such person shall be guilty of a Class 1 misdemeanor.
(d) A violation of subsection (c) of this section shall be
separate and apart from, and in addition to, a violation of
subsections fa) or (b) of this section.
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Adopted by the Council of the City of Virginia Beach,
Virginia, on this 22 day of June , 1993.
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CA-5197
T: ~ORDIN~NONCODE~23-045. PRO
R-2
DATE: June 17, 1993
Item III-L.l.d.
NEW BUSINESS
ITEM # 36963
COUNCIL-SPONSORED ITEMS
Upon motion by Councilman Brazier, seconded by Councilman Moss, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Sections 28.5-9 of the Code of
the City of Virginia Beach, Virginia re smoking.
(Sponsored by Councilman James W.. Brazier, Jr.)
Voting: 11-0
Council Members Voting Aye:
John ,4. Baum, Linwood O. Branch, III, James W.. Brazier, Jr., Robert W.
Clyburn, Robert IC Dean, Louis R. Jones, Paul J. Lanteigne, John D.
Moss, Mayor Meyera E. Oberndorf, Nancy IC Parker and Vice Mayor
William D. Sessoms, Jr.
Council Members Voting Nay:
None
Council Members Absent:
None
June 22, 1993
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Requested by Councilmember James W. Brazier, Jr.
AN ORDINANCE TO AMEND AND REORDAIN
SECTIONS 28.5-9 OF THE CODE OF THE
CITY OF VIRGINIA BEACH, VIRGINIA,
PERTAINING TO SMOKING.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
That Section 28.5-9 of the Code of the City of Virginia Beach,
Virginia, is hereby amended and reordained to read as follows:
Section 28.5-9. Compliance oversight and enforcement.
(a) The department of public health and/or any other
department designated by the city manager shall perform an
evaluation for compliance with all requirements of this chapter in
the course of an otherwise mandated inspection.
(b) Any law enforcement officer may issue a summons for
violation of any provision of this chapter.
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Adopted by the Council of the City of Virginia Beach, Virginia
on the 22 day of Juna , 1993.
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CA-4700
\ORDIN\ PROPOSED \ 28-5-9. PRO
R-1
Prepared: June 16, 1993
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~tcm H~-L.~
NEW BUSINESS
ITEM # 36964
Mayor Oberndorf referenced telephone call during the Formal Session tonight, June 22, 1993, from Louis
Guy, Director of Public Utilities, advising the Norfolk City Council ADOPTED the Water Contract by
a vote of 6-0.
June 22, 1993
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NEW BUSINESS
ITEM # 36965
Councilman Moss extended congratulations to the Mayor, and all personnel of NAS OCEAN~I, who did
a superb job in preventing the closure.
June 22, 1993
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Item III-L. 4.
NEW BUSINESS
ITEM # 36966
Councilman Dean advised the projected FY 1994/1995 DEFICIT: $24,204,865.
June 22, 1993
Item III-M. 1.
ADJOURNMENT
ITEM # 36967
Mayor Oberndorf DECLARED the Meeting ADJOURNED at 9:20 P.M.
Beverly O. Hooks, CMC
Chief Deputy City Clerk
Ruth Hodges Smith, CMC/AAE
City Clerk
William D. Sessoms, Jr.
Vice Mayor
Meyera E. Oberndorf
Mayor
City of Virginia Beach
Virginia
June 22, 1993
WATER SERVICES CONTRACT
TABLE OF CONTENTS
1.0 Definitions ........................................
1.1 Adjusted for Losses ...........................
1.2 Average Day Demand ............................
1.3 Books and Records .............................
1.4 Contract Allocation Capacities .................
1.5 Embedded Effective Average Annual Interest
Cost of Norfolk Utilities Department Water
System Debt ...................................
1.6 Gaston Pipeline ...............................
1.7 Gaston Water ..................................
1.8 Lake Gaston ...................................
1.9 Master Bond Resolution ........................
1.10 Maximum Hour Demand ...........................
1.11 Maximum Day Demand ............................
1.12 Maximum Month Demand ..........................
1.13 Permits .......................................
1.14 Safe Yield ....................................
1.15 Termination Payments ..........................
1.16 Total Annual Raw Water Demand .................
1.17 Total Reservoir Storage .......................
1.18 Treated Water Safe Yield ......................
1.19 Virginia Beach Contract Capacities ............
1.20 Virginia Beach Water Distribution System ......
1.21 Water Sales Contract ..........................
1.22 Year/Annual ...................................
2.0 Water Treatment, Delivery Services and
Obligations .......................................
3.0 Delivery Points and Measurement ....................
4.0 Quality and Pressure of Water Delivered to
Virginia Beach ....................................
5.0 Standards for Virginia Beach .......................
6.0 Rates and Charges ..................................
6.1 Method of Rate Determination ..................
6.1.1 Operation and Maintenance Expense ......
6.1.2 Depreciation Expense ...................
6.1.3 Return on Rate Base ....................
6.1.4 Rate Base ..............................
6.2 Rates .........................................
6.2.1 Fixed Capacity Charge ..................
6.2.2 Demand Char§e ..........................
6.2.3 Supplemental Demand Charge .............
6.2.4 Commodity Charge ........................
6.3 Biennial Adjustment of Rates ..................
6.4 Determination of Rates and Charges ............
Page
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7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0
Reduced Water Usage By Virginia Beach ..............
Payment and Billing ................................
Curtailment ........................................
Force Majeure and Hold Harmless ....................
Operations .........................................
Effective Date .....................................
Term of Contract ...................................
Breaches Related to Treated Water Safe Yield .......
Breaches Related to Contract Capacities ............
Other Breaches .....................................
Termination by Norfolk .............................
Termination by Virginia Beach ......................
Source and Priority of Payments ....................
19.1 Source of Payment .............................
19.2 Characterization of Charges under
This Contract .................................
19.3 Maximum Amount and Final Payment
Date of Termination Payments ..................
19.4 Method of Making Termination Payments .........
19.4.1. Issuance of Bonds ....................
19.4.2. Insurance ............................
19.4.3. Letter of Credit .....................
19.4.4. Reserves .............................
19.5 Rate Covenant .................................
19.6 Copy of Amendments or Supplements .............
19.7 Master Bond Resolution Incorporation
by Reference ..................................
General Terms and Conditions .......................
20.1 Books and Records ............................
20.2 Notice of Designee ...........................
20.3 Waivers ......................................
20.4 Compensation .................................
20.5 No Verbal Agreement ..........................
20.6 Assignment ...................................
20.7 Dispute Resolution ...........................
20.8 Venue ........................................
20.9 Contract Interpretation ......................
20.10 Captions .....................................
20.11 Notices ......................................
20.12 Binding on Successors ........................
20.13 Amendment ....................................
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WATER SERVICES CONTRACT
THIS contract, made as of this 14th day of July, 1993, by
and between the CITY OF NORFOLK, a municipal corporation of the
Commonwealth of Virginia, hereinafter referred to as "Norfolk"
and the CITY OF VIRGINIA BEACH, a municipal corporation of the
Commonwealth of Virginia, hereinafter referred to as "Virginia
Beach";
WITNESSETH:
WHEREAS Norfolk now owns and operates a system of
reservoirs, treatment plants, water mains and appurtenant
facilities capable of storing, pumping, treating and transmitting
raw water; and
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WHEREAS Virginia Beach plans to construct a pipeline through
which it can transport raw water from Lake Gaston to Norfolk's
raw water facilities, at a location satisfactory to both parties;
and
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WHEREAS Virginia Beach wishes to obtain from Norfolk
storage, pumping, treatment and transmission services for its raw
water from Lake Gaston; and
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WHEREAS it is deemed of mutual benefit by the parties for
Norfolk to provide these services to Virginia Beach;
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NOW, THEREFORE, for and in consideration of the premises and
the mutual agreements herein contained and other good and
valuable consideration, Norfolk and Virginia Beach do hereby
covenant and agree as follows:
26 1.0 Definitions.
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1.1 "Adjusted for losses" means modifying the volume of
water referred to on the basis of the loss factor of the Norfolk
water system related to providing service to Virginia Beach
including conjunctive uses. The loss factor is deemed to be 10%
for purposes of this contract. The maximum volume of treated
water that Norfolk is obligated to deliver to Virginia Beach per
year under this Contract shall be the maximum volume of raw water
which Virginia Beach can supply to the Western Reservoirs
multiplied by 0.9.
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1.2 "Average day demand" means the total amount of treated
water delivered by Norfolk to Virginia Beach during a given year
divided by the number of days between the annual meter readings,
usually 365. The maximum permissible annual average day demand
under this contract shall be 45 million gallons per day (mgd).
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1.3 "Books and records" means the audited financial reports
and statements of Norfolk and Virginia Beach.
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1.4 "Contract allocation capacities" means, for purposes of
Virginia Beach's cost allocation calculations and rate
determinations only, a maximum hour capacity of 91.0 mgd, a
maximum day capacity of 68.25 mgd, and a maximum month capacity
of 59.8 mgd.
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1.5 "Embedded effective average annual interest cost of
Norfolk Utilities Department water system debt" means the ratio,
expressed as a percentage, of each year's interest payments,
including the estimated annual amortized interest to be paid upon
debt instruments that pay at reduced interest rates and/or defer
interest payments to maturity, such as certain short-term notes
and original issue discount, compound-coupon, stepped-coupon,
zero coupon or capital appreciation bonds, to the average of the
outstanding principal balance for all existing debt related to
the water system of the Norfolk Utilities Department for the
applicable rate year.
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1.6 "Gaston pipeline" means the water pipeline that extends
from Lake Gaston discharging to Norfolk's water facilities,
including associated intake, pumping and metering facilities,
constructed, owned, operated, and maintained by Virginia Beach.
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1.7 "Gaston water" means treatable raw water (i.e., capable
of being rendered potable according to all standards mandated by
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federal or state law, rule or regulation by any or all treatment
processes required by the Norfolk Utilities Department to render
Norfolk's raw water potable under the same standards) provided by
Virginia Beach from Lake Gaston to Norfolk.
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1.8 "Lake Gaston" means the lake located partially in
Brunswick County, Virginia, from which Virginia Beach is entitled
to draw water for delivery through the Gaston pipeline.
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1.9 "Master Bond Resolution" means the Master Water and
Sewer Revenue Bond Resolution providing for the issuance from
time to time of one or more series of water and sewer system
revenue bonds of Virginia Beach, adopted by the City Council of
Virginia Beach on February 11, 1992, pursuant to which Virginia
Beach has issued and will issue from time to time water and sewer
system revenue bonds, as amended or supplemented and in effect
from time to time, and any successor or additional indenture,
trust agreement or resolution pledging the revenues of Virginia
Beach's water and sewer system.
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1.10 "Maximum hour demand" means the greatest rate of
treated water delivered by Norfolk to Virginia Beach at the
delivery points provided for in paragraph 3 over a one (1) hour
period on any given day of the year. The maximum permissible
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maximum hour demand under this contract shall be 90.0 mgd at the
delivery points provided in paragraph 3.
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1.11 "Maximum day demand" means the greatest rate of
treated water delivered by Norfolk to Virginia Beach at the
delivery points provided for in paragraph 3 over a 24-hour
period, beginning at midnight, in a given year. The maximum
permissible maximum day demand under this contract shall be 67.5
mgd, at the delivery points provided in paragraph 3.
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1.12 "Maximum month demand" means the greatest rate of
treated water delivered by Norfolk to Virginia Beach at the
delivery points provided for in paragraph 3 during a calendar
month in a given year. The maximum permissible maximum month
demand under this contract, expressed on a daily basis according
to the number of calendar days in a given month, shall be 58.5
mgd, at the delivery points provided in paragraph 3.
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1.13 "Permits" means the permits granted to Virginia Beach
by the U.S. Army Corps of Engineers and others (including, but
not limited to federal, state, regional and local governing
and/or permitting bodies and/or agencies) allowing construction
and operation of the Gaston pipeline and similar authorizations
that may replace or augment the permits, and all other permits,
certifications, and other authorizations to Norfolk allowing
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construction, operation, maintenance, and expansion of the
Norfolk or Virginia Beach water systems that are necessary to
render performance under this contract.
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1.14 "Safe yield" means the maximum sustainable rate of
usable raw water supply which is available during known drought
conditions; wherever the term "safe yield" is used in this
contract, it shall have the meaning set forth in this sentence in
addition to any other definition or description.
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For purposes of this contract, Virginia Beach's safe
yield shall be the maximum sustainable rate of raw water supply
that Virginia Beach can, with its then existing equipment and
facilities, deliver for its own use, under its existing permits
and contracts, through the Virginia Beach meter located at or
within two (2) miles of the discharge end of the Gaston pipeline,
less evaporation, conjunctive uses, and leakage losses deemed to
be 3% under this contract. Based on current permits and
contracts, Virginia Beach's raw water safe yield will be 48.5 mgd
(50 mgd less 3%).
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For purposes of this contract, Norfolk's safe yield
shall be the maximum sustainable rate of raw water supply which
is available to Norfolk from its raw water supply that is owned
and freely-alienable by Norfolk. Except for rate determinations,
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water supplied by a third party and wheeled, untreated, shall not
be included in Norfolk's safe yield. The current safe yield for
Norfolk is approximately 79 mgd. Norfolk agrees to review and,
if necessary, adjust its safe yield in the event of a change in
raw water sources, withdrawal capacity or permits or if future
significant drought conditions provide an additional data base
for evaluation.
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For the purposes of this contract, the combined system safe
yield shall be the sum of Norfolk's safe yield, Virginia Beach's
safe yield, and the contributed safe yield of any other Norfolk
contract customer.
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1.15 "Termination Payments" means all Termination Payments
payable under Paragraphs 17 or 18 of this contract.
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1.16 "Total Annual Raw Water Demand" shall be the sum of the
raw water pumpage measured at the pumping stations, on an annual
basis, from Norfolk's Intown and Western Reservoir systems, minus
any transfers of water from the Western Reservoir system to the
Intown Reservoir system.
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1.17 "Total Reservoir Storage" shall be the actual quantity
of water in the Norfolk's Intown and Western reservoir systems.
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The capacity of that system is the total volume when the
reservoirs are all filled to spillway elevation.
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1.18 "Treated water safe yield" means safe yield less any
raw water commitments or conveyances and a loss factor of the
Norfolk water system.
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For purposes of this contract, Virginia Beach's treated
water safe yield shall be its safe yield determined in
subparagraph 1.12 above times .938.
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For purposes of this contract, Norfolk's treated water
safe yield shall be its safe yield determined in subparagraph
1.12 above less any raw water commitments or conveyances times
.943.
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1.19 "Virginia Beach contract capacities" means an annual
average day rate of 45.0 mgd, maximum month rate of 58.5 mgd,
maximum day rate of 67.5 mgd and maximum hour rate of 90.0 mgd.
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1.20 "Virginia Beach water distribution system" means the
system of water facilities located wholly in Virginia Beach
subsequent to metered delivery points provided for in paragraph
3.
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1.21 "Water Sales Contract" means the water sales contract
between Norfolk and Virginia Beach dated July 14, 1993, providing
for the sale of surplus water.
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1.22 "Year" means a fiscal year ending on the final day of
the fiscal year adopted by the Norfolk Utilities Department,
unless otherwise specified within this contract. "Annual" means
based on this fiscal year.
176 2.0 Water Treatment, Delivery Services and Obligations.
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2.1 Norfolk agrees to receive and store Gaston water
provided by Virginia Beach to a location satisfactory to both
parties, transport the water through Norfolk's raw water system,
treat the water, provide clear well storage, pump and transport
the treated water to the metered points of delivery for the
Virginia Beach water distribution system, and perform all related
acts to provide treated water to Virginia Beach in accordance
with this contract. Virginia Beach agrees to pay for these
services and to provide Gaston water, as set forth below.
Virginia Beach further specifically understands and agrees that
this contract is a water services contract, not a contract for
the sale of treated water, and that the right of Virginia Beach
to receive treated water under this contract is dependent on
Virginia Beach's ability to provide Gaston water as provided
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herein. Moreover, Virginia Beach understands and agrees that it
is solely responsible for performing all acts necessary to
provide Gaston water as provided herein, including, but not
limited to, obtaining all necessary permits from governmental
agencies, and constructing, operating and maintaining the Gaston
pipeline to a discharge point satisfactory to Norfolk and
Virginia Beach. Norfolk agrees to obtain all permits required to
construct, operate, maintain or expand Norfolk's water system in
conjunction with performance of this contract; provided, however,
in obtaining or retaining any permit, Norfolk shall only be
required to use its best efforts in good faith and by all
reasonable legal means. Virginia Beach and Norfolk agree to
cooperate and assist each other in obtaining the permits.
Norfolk shall keep and maintain its water facilities in good
working order in accordance with generally accepted standards for
the operation and maintenance of a water system.
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2.2 Except as otherwise provided in this contract, Norfolk
shall deliver treated water to the Virginia Beach water
distribution system in such amounts as required by Virginia
Beach, up to a total annual average amount of 45.0 mgd, but not
to exceed 0.9 times the maximum sustainable rate of Gaston water
which Virginia Beach is capable of delivering to Norfolk for
Virginia Beach's use.
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2.3 The rates at which Norfolk is obligated to deliver
treated water to Virginia Beach under this contract (measured at
the delivery points provided for in paragraph 3) are as follows:
annual average day rate of 45.0 mgd, maximum month rate of 58.5
mgd, maximum day rate of 67.5 mgd, and maximum hour rate of 90.0
mgd (the Virginia Beach contract capacities).
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2.4 Norfolk shall prudently, efficiently and economically
manage and coordinate the use and operation of the raw water
resources including the Norfolk reservoirs, the Blackwater and
Nottoway Rivers, Gaston water, Norfolk wells and any other raw
water sources available to Norfolk. At any time after Norfolk
commences delivering treated water to Virginia Beach under this
contract, Virginia Beach shall, upon Norfolk's request, supply
Gaston water to Norfolk each month, within Virginia Beach's
permit limitations, in sufficient quantities to meet the Virginia
Beach monthly demand, adjusted for losses for so long as one of
the following conditions exists: (1) the total reservoir storage
is less than 90% of capacity and the total annual average raw
water demand is less than 75% of the combined system safe yield,
or (2) the total reservoir storage is less than 95% of capacity
and the total annual average raw water demand is between 75% and
85% of the combined system safe yield, or (3) the total reservoir
storage is less than 97% of capacity and the total annual average
raw water demand exceeds 85% of the combined system safe yield.
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Further, Virginia Beach shall supply additional Gaston water
above the Virginia Beach current month demand if requested by
Norfolk; provided, however, Virginia Beach shall not be required
to supply an amount of Gaston water in any consecutive 36 month
period in excess of the amount of treated water delivered to
Virginia Beach by Norfolk pursuant to this contract, during such
36 month period, adjusted for losses or in excess of its permit
limitations.
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2.5 Requests for Gaston water shall be made by the Director
of Utilities of Norfolk or his designee to the Director of Public
Utilities of Virginia Beach or his designee, in oral, written or
electronic form. Norfolk shall deliver to Virginia Beach written
confirmation of any oral, written or electronic request within 48
hours of making such request.
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2.6 Norfolk shall supply to Virginia Beach, on a monthly
basis, a written record of the metered total number of gallons of
treated water delivered to Virginia Beach each day and maximum
daily and hourly rates of delivery, including time of occurrence.
Virginia Beach shall supply to Norfolk, on a monthly basis, a
written record of the metered total number of gallons of Gaston
water supplied each day to Norfolk. The forms of the record
shall be satisfactory to both parties.
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2.7 Norfolk shall wheel up to 9.7 mgd of Gaston water (10
mgd delivered to Norfolk less losses of 3%) on behalf of Virginia
Beach to the intake of the Western Branch Pumpin9 Station for the
benefit of the City of Chesapeake ("Chesapeake"). Arrangements
between Norfolk and Chesapeake for the subsequent withdrawal, raw
water pumping, and raw water transmission are to be the subject
of separate contractual negotiations between Norfolk and
Chesapeake. Virginia Beach shall pay for the wheelin9 of the
Gaston water for the benefit of Chesapeake on a cost of service
basis, based on the principles set forth in paragraph 6.0, which
costs shall be limited to the facilities used to wheel Gaston
water for the benefit of Chesapeake. Should Norfolk and
Chesapeake fail to execute such an agreement within two (2) years
of the execution of this contract, Norfolk shall, at the request
of Virginia Beach, design and construct the additional facilities
Norfolk deems necessary for the withdrawal, pumpin9 and
transmission of the Gaston water to "Red Top" to meet Virginia
Beach's contractual obligation to Chesapeake to deliver up to 9.7
mgd to "Red Top." At completion of the additional facility
construction, Norfolk shall notify Virginia Beach of the total
cost, (including capitalized return of 1.25 times the interest
cost of debt associated with the design and construction of the
associated facilities) and Virginia Beach shall pay such amount
to Norfolk within 30 days. An example calculation of such amount
is shown in Table 12 of Exhibit B. Operation and maintenance
- 13 -
285
286
287
288
289
290
291
292
expense shall be paid by Virginia Beach to Norfolk. Should such
facilities not be utilized to supply Gaston water to Chesapeake,
the Chesapeake demand charge calculation shall be based on a
demand of 0.404 mg/hr (9.7 mgd). It is specifically agreed that
the failure of Chesapeake to pay Virginia Beach for any reason
shall not be a defense or reason for Virginia Beach to fail to
pay Norfolk for the wheeling of Gaston water for Chesapeake or
the additional facility construction.
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
2.8 Norfolk shall exercise due care and shall adhere to
generally-accepted engineering practices in the planning,
construction, operation, maintenance, and expansion of its water
system in order to meet its obligations under this contract.
Norfolk shall not use, sell, assign, or otherwise commit to
supply water in excess of Norfolk's safe yield, transmission or
treatment capacity except as provided in this subparagraph.
Norfolk may sell water, pursuant to a written contract, in excess
of its safe yield on an interruptible basis to industrial
customers having installed and permitted alternate water sources
available, with the consent of Virginia Beach, such consent not
to be unreasonably withheld. Norfolk shall terminate or restrict
the supply of water to such interruptible customers (in
accordance with the terms of each contract) in order that Norfolk
can meet its obligations to Virginia Beach under this contract.
- 14 -
308 3.0 Delivery Points and Measurement.
309
310
311
312
3.1 Norfolk agrees to deliver treated water to Virginia
Beach in accordance with this contract at the delivery points
set forth in Exhibit A attached hereto, and at such additional
points as may be mutually agreed upon by the parties.
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
3.2 Unless otherwise agreed by both parties, Norfolk shall
construct, own and maintain treated water meter vaults, meters,
and all associated facilities located at the delivery points.
All treated water meters, master meters and associated equipment
will be capable of indicating, totalizing and recording total
flow, as well as maximum day and maximum hour rates of flow and
their times of occurrence. The system of meters measuring
treated water delivered by Norfolk to the Virginia Beach water
distribution system shall additionally be capable of indicating,
totalizing and recording the flow (as well as maximum day and
maximum hour rates of flow and their times of occurrence) to
Virginia Beach and to Norfolk's wholesale customer(s) being
provided treated water through the Virginia Beach water
distribution system. In absence of data to the contrary, it
shall be presumed that the maximum month, maximum day and maximum
hour rates of flow of all such wholesale customers and Virginia
Beach occur simultaneously. Virginia Beach understands that
Norfolk may have redundant meters at certain locations, but will
- 15 -
331
332
333
334
335
336
337
338
339
340
341
342
343
operate only one (1) set of meters at a time. Virginia Beach
agrees that all of the actual cost of such treated water metering
facilities attributable to service to Virginia Beach, including
direct costs and applicable overheads for engineering, design,
telemetry equipment, radio, telephone and electric service, shall
be assigned to the Virginia Beach rate base. Norfolk agrees to
design, construct and maintain all meters in a prudent and cost
effective manner. All metering facilities used to measure
Virginia Beach usage shall be designed by engineers designated by
Norfolk who are selected from a list of at least three (3)
engineers who are satisfactory to Virginia Beach and Norfolk.
Each master meter shall be tested at least once every two (2)
years.
344
345
346
347
348
349
350
3.3 Virginia Beach agrees to provide Norfolk's employees
and agents ingress and egress across property owned by Virginia
Beach to all of Norfolk's premises inside Virginia Beach's
boundaries to install, operate, inspect, test, and maintain
pipelines, pump stations, and facilities, and to read meters
owned or maintained by Norfolk within the city limits of Virginia
Beach or on property controlled by Virginia Beach.
351
352
353
3.4 Virginia Beach shall install and operate raw water
meter or meters capable of measuring the amount of water being
delivered from the Gaston pipeline to Norfolk including
- 16
354
355
totalizing and recording total flow and daily rates of flow.
Each meter shall be tested at least once every two (2) years.
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
3.5 It shall be the duty of each party to this contract to
notify the other party in the event that any meter is registering
inaccurately or malfunctioning, so that any such meter can be
promptly tested and repaired or replaced. Each treated water
meter shall be operated and maintained so as to record within the
accuracy prescribed by current American Water Works Association
standards applicable to the type of meter in service. Each raw
water meter shall register not less than 97% and not more than
103% of the water that actually passes through it for its design
flow range. Each party will give the other seven (7) calendar
days' notice prior to any routine or independent meter test so
that each party may arrange to have a representative present. If
said representative is not present at the time set in such
notice, the testing and repair may, notwithstanding any other
provision of this subparagraph, proceed in the absence of said
representative. Either party has the right to request a meter be
tested with the other party having the right to witness such
test. If either party requires that an independent testing
service be used, such party shall pay the cost of said testing
service if the meter is found to be within the above stipulated
accuracy limits. If the meter is found to be registering outside
of those limits, the party owning the meter shall pay the cost of
- 17 -
378
379
said testing service. Each meter shall be tested at least once
every two (2) years.
380
381
382
383
384
385
3.6 Virginia Beach may, at its own expense, install
telemetering equipment at Norfolk's metering facilities or at
Norfolk's water treatment plants providing service to Virginia
Beach which will allow Virginia Beach to receive "real time data"
from Norfolk's metering equipment so long as such telemetering
equipment does not interfere with Norfolk's operation in any way.
386 4.0 Quality and Pressure of Water Delivered to Virqinia Beach.
387
388
389
390
391
4.1 Norfolk shall provide the necessary water treatment
facilities, operational practices and related services to ensure
that the quality of treated water delivered to Virginia Beach
pursuant to this contract shall meet all potable water standards
mandated by federal and state law, rule or regulation.
392
393
394
395
396
397
398
4.2 Norfolk shall optimize its treatment facilities,
operational practices and chemical feed rates to minimize, to the
extent practicable, any unregulated water quality problems. If
notified by Virginia Beach of unregulated water quality problems
in its system, not attributable to the Virginia Beach water
distribution system or the operation thereof, Norfolk shall
adjust its treatment practices, operational practices, and
- 18 -
399
4OO
401
402
403
chemical feeds to attempt, to the extent practicable, to
alleviate said water quality problems; provided, however, Norfolk
shall not, pursuant to this subparagraph 4.2, be required to
construct any new facilities or reconfigure any existing
facilities.
404
405
406
407
408
4.3 Except as provided in subparagraphs 4.2 and 4.4,
Virginia Beach shall bear the sole responsibility for maintaining
water quality beyond the delivery points provided for in
subparagraph 3.1 herein within the Virginia Beach water
distribution system.
409
410
411
412
413
414
415
416
417
418
419
420
421
4.4 In the event Virginia Beach will be unable to meet,
within its water distribution system, any legal and regulatory
disinfection by-product standards adopted by the United States
Environmental Protection Agency or the Commonwealth of Virginia,
depending solely on the treatment then provided by Norfolk,
Virginia Beach shall notify Norfolk of such fact. Thereafter,
with Norfolk's concurrence, which shall not be unreasonably
withheld, Norfolk and Virginia Beach shall select and Norfolk
shall employ a consultant or consultants. Such consultant or
consultants shall determine the best, most reasonable way to meet
legal and regulatory disinfection by-product standards applicable
to Virginia Beach. If the study shows that the best, most
reasonable way to meet the legal and regulatory disinfection
- 19 -
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
by-product standards is for Virginia Beach to change its usage
patterns and/or to provide modifications to its transmission,
storage and/or pumpin~ facilities within the Virginia Beach water
distribution system, then Virginia Beach shall do so at its sole
expense. If the study shows that the best, most reasonable way
to meet the legal and regulatory disinfection by-product
standards is to provide localized treatment within the Virginia
Beach water distribution system, then Virginia Beach shall
construct, own, operate and maintain such facilities. If the
study shows that the best, most reasonable way for Virginia Beach
to meet the legal and regulatory disinfection by-product
standards is for part or all water in the Norfolk water system to
receive additional treatment, Norfolk shall provide the
additional treatment with the cost of such treatment bein~
allocated as any other treatment cost. In the event Virginia
Beach constructs, owns, operates and maintains such additional
treatment facilities, the reasonable costs of such facilities,
includin9 return on rate base, depreciation and operation and
maintenance expense, shall be designated by the same cost
categories as provided in paragraph 6.0 which Norfolk uses to
determine the amount of the annual fixed capacity charge, demand
charge and commodity charge for Virginia Beach based on Norfolk's
costs. Virginia Beach shall allocate Virginia Beach's treatment
costs between Virginia Beach and Norfolk as treatment costs of
facilities providin9 service to Virginia Beach in the manner
- 20 -
447
448
449
450
451
452
453
454
455
456
457
458
459
460
provided in paragraph 6.0. Virginia Beach shall receive a credit
on Norfolk's billings to Virginia Beach each year for Norfolk's
share of Virginia Beach's treatment costs. Norfolk's net annual
charges to Virginia Beach shall consist of (1) the appropriate
charges by cost category developed by Norfolk for Virginia Beach
based on Norfolk's costs as provided in paragraph 6.0 plus (2)
Virginia Beach's share of Virginia Beach's treatment costs by
cost category less (3) the total of Virginia Beach's treatment
costs by cost category. An example application of this provision
is illustrated in Table 11 of Exhibit B. The economic criteria
used in determining the "best, most reasonable way to meet the
legal and regulatory disinfection by-product standards" shall be
the lowest total cost to the combined Norfolk/Virginia Beach
systems.
461
462
463
464
465
466
467
468
469
470
Notwithstanding any of the foregoing provisions of this
subparagraph 4.4, if Virginia Beach without Norfolk's consent,
which consent shall not be unreasonably withheld, introduces into
its treated water distribution system any foreign water, i.e.,
any water other than that treated by Norfolk, it shall be
Virginia Beach's sole obligation to meet any such legal and
regulatory disinfection by-product standards within the Virginia
Beach water distribution system; but, nevertheless, Virginia
Beach will continue to be responsible for the payment to Norfolk
for any costs incurred by Norfolk pursuant to this subparagraph
- 21 -
471
472
473
4.4. Norfolk shall not be relieved of its responsibility to
continue to operate the facilities then constructed to meet
disinfection by-product standards.
474
475
476
477
478
479
480
4.5 The pressure of treated water delivered to Virginia
Beach at the delivery points provided for in subparagraph 3.1
herein shall be nominally 60 pounds per square inch under normal
and reasonably foreseeable operating conditions. Virginia Beach
shall bear the sole responsibility for maintaining water pressure
beyond the delivery points provided for in subparagraph 3.1
herein and within its water distribution system.
481 5.0 Standards for Virginia Beach.
482
483
484
5.1 Virginia Beach shall operate the Virginia Beach water
distribution system so as to prevent back flow to the Norfolk
water system under normal operating conditions.
485
486
487
488
5.2 Each city reserves the right to make inspection of the
other's facilities which may affect the quality or pressure of
water or the operation of the respective water systems upon two
(2) working days' notice.
- 22 -
489 6.0 Rates and Charges.
490
6.1 Method of Rate Determination.
491
492
493
494
495
496
497
498
499
The annual rates charged by Norfolk for rendering treated
water service under the terms of this contract shall be based
upon the utility basis of cost of service principles established
by the American Water Works Association. Under the principles of
the utility basis of cost of service allocations, Virginia Beach
will be charged for treated water service in a manner which
recovers its allocable share of operation and maintenance
expense, depreciation expense and return on rate base associated
with the water system owned and operated by Norfolk.
5O0
6.1.1 Operation and Maintenance Expense.
501
502
503
504
505
506
507
508
509
Virginia Beach shall pay its share of annual common to
all expenses of the Norfolk water system, including appropriate
departmental and city general overheads and payments in lieu of
real estate and tangible personal property taxes paid by the
Norfolk Utility Department, but excluding payment to the City
General Fund, operation and maintenance expenses associated with
retail service in the City of Norfolk including but not limited
to retail distribution facilities, retail meters and services,
fire hydrants and other non-common to all operation and
- 23 -
510
511
512
513
514
515
maintenance expenses all as illustrated in Table 1 of Exhibit B.
In determining the payment in lieu of real estate and tangible
personal property taxes, the property values shall be as assessed
by the appropriate assessing authority and the tax rate shall be
the rate imposed upon other such property owners in Norfolk in
the year for which rates are being calculated.
516
6.1.2 Depreciation Expense.
517
518
519
520
521
522
523
524
525
526
527
528
529
Virginia Beach shall pay an annual depreciation expense
associated with the Virginia Beach rate base as defined in
subparagraph 6.1.4 excluding construction work in progress.
Annual depreciation expense associated with the Virginia Beach
rate base shall be computed using depreciation rates set forth in
Table 3 of Exhibit B of this contract unless subsequently revised
as set forth below. Such annual depreciation expense shall be
computed based on the straight line method, which reflects
projected average service lives for specific types of facilities.
Such straight line annual depreciation rates shall not be revised
without an independent review by a consulting firm, of Norfolk's
choice, recognized as having experience and expertise in water
utility ratemaking.
- 24 -
530
6.1.3 Return on Rate Base.
531
532
533
534
535
536
Virginia Beach shall pay to Norfolk an annual return on
the Virginia Beach rate base. The annual rate of return to be
applied to the Virginia Beach rate base shall be computed by
multiplying the embedded effective average annual interest cost
of Norfolk Utilities Department water system debt for the
applicable rate year by 1.25.
537
6.1.4 Rate Base.
538
539
540
541
542
543
544
Rate base for the purposes of this contract means the
original costs of the Norfolk water system less accrued
depreciation (as shown on Norfolk's books and records). Rate
base shall include construction work in progress, expenditures
which have been paid by Norfolk at the time of rate
determination, and general facilities related to the Norfolk
water system.
545
546
547
548
549
550
The rate base shall be allocated between Virginia Beach
and Norfolk based on the contract allocation capacities and safe
yield of Virginia Beach compared to the capacities of the Norfolk
water system facilities serving Virginia Beach and the combined
system safe yield. Ail facilities in the Norfolk water system
providing service or benefit to Virginia Beach, including raw
- 25 -
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
water supply, storage and transmission, treatment, pumping,
storage, and treated water transmission mains, meters, and
administrative and general facilities shall be included in rate
base subject to allocation to Virginia Beach. Excluded from rate
base subject to allocation to Virginia Beach shall be: fire
hydrants; retail meters and services; all transmission and
distribution facilities not used to serve Virginia Beach; land,
land rights and general plant related to excluded items; and
contributed capital if (i) contributed by the federal government
before 1970, or (ii) contributed after the effective date of this
contract by an entity other than Norfolk for the benefit of the
facilities in the Norfolk water system providing service or
benefit to Virginia Beach rate base. An example of development
of Virginia Beach rate base is reflected on Table 2 of Exhibit B.
Where an asset has been out of service for more than two (2)
years, it will be removed incrementally from the Virginia Beach
rate base and expensed over a period of three (3) years, but in
no event for a period longer than the remaining term of this
contract. The parties agree that future engineering studies
and/or alterations or additions to the Norfolk water system may
require changes in the designation of facilities providing
service or benefit to Virginia Beach. Allocations of the various
elements of rate base to Virginia Beach shall be based on the
contract allocation capacities and safe yield of Virginia Beach
compared to the respective capacities of Norfolk's system
- 26 -
576
577
578
579
580
581
582
583
facilities serving Virginia Beach and the combined system safe
yield as illustrated on Table 2 of Exhibit B. The portions of
the rate base allocated to Virginia Beach shall be referred to in
the contract as the "Virginia Beach rate base." Virginia Beach
rate base shall include, in addition to the above, an allowance
for working capital equal to 12.5 percent of the Virginia Beach
allocated share of annual operation and maintenance expenses of
the Norfolk water system.
584
6.2 Rates.
585
586
The annual rates for treated water service under the terms
of this contract shall consist of the following elements:
587
6.2.1 Fixed Capacity Charqe.
588
589
590
591
592
Virginia Beach shall pay an annual fixed capacity
charge sufficient to recover depreciation expense and the return
on the Virginia Beach rate base. This fixed capacity charge
shall be payable in equal monthly amounts during the year or
years for which rates are applicable.
- 27 -
593
6.2.2 Demand Charge.
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
Virginia Beach shall pay an annual unit demand charge
per million gallons per day applied to the measured maximum
hourly demand of Virginia Beach. Measured maximum hourly demand
is the Virginia Beach coincidental maximum hourly demand on the
Norfolk water system measured in terms of millions of gallons per
day by all treated water delivery meters serving Virginia Beach
during the applicable fiscal year minus 1.04 times the
coincidental maximum hourly demand of Norfolk's wholesale
customers in Virginia Beach. The annual unit demand charge shall
be based on the common to all operation and maintenance expense
of the facilities providing service to Virginia Beach, excluding
the energy portion of power costs, chemical costs, sludge
disposal, and other costs which vary directly with volume of
treated water produced. The annual unit demand charge per mgd
shall be 1.01 times the result of dividing the common to all
operation and maintenance expense described in the preceding
sentence by the sum of the Virginia Beach and Norfolk
noncoincidental maximum hourly pumpage outputs at the Norfolk
treatment plants providing service to Virginia Beach as
subsequently defined in this subparagraph. The maximum hourly
demand of Virginia Beach at such Norfolk water treatment plants
shall be computed as 1.01 times the coincidental maximum hourly
demand measured at all of the meters located at the Virginia
- 28 -
617
618
619
620
621
622
623
624
625
626
627
628
629
630
Beach delivery points, less 1.05 times the coincidental maximum
hourly demand of Norfolk wholesale customers in Virginia Beach.
The maximum hourly demand of Norfolk (and Norfolk's wholesale
customers) shall be measured by deducting the demand of Virginia
Beach each hour at the treatment plants providing service to
Virginia Beach from total pumpage outputs each hour at such
treatment plants and determining the hour with the greatest
difference. The demand charge shall be payable in equal monthly
amounts during the year for which rates are applicable.
Determination of the demand charges shall be as illustrated in
Tables 1 and 4 of Exhibit B. Supplemental information about the
development of non-coincidental demand and computation of annual
demand charges to Virginia Beach is presented in Table 6 of
Exhibit B.
631
6.2.3 Supplemental Demand Charge.
632
633
634
635
636
637
638
639
In the event that Virginia Beach's maximum hourly
demand exceeds its contract hourly demand rate of 90 mgd,
Virginia Beach shall pay a supplemental demand charge for that
portion of its maximum hourly demand which exceeds 90 mgd. The
amount of the supplemental unit demand charge shall be equal to
two (2) times the unit demand charge determined pursuant to
subparagraph 6.2.2 of this contract. A sample application of
such charges is set forth on Table 7 of Exhibit B.
- 29 -
640
6.2.4 Commodi ty Charqe.
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
657
Virginia Beach shall pay a commodity rate per 1,000
gallons of treated water. This charge shall be sufficient to
recover the energy portion of power costs, chemical costs, sludge
disposal, and other costs which vary directly with the volume of
treated water produced. The Virginia Beach commodity charge
shall be 1.01 times the amount determined by dividing the total
variable cost described in the preceding sentence for the Norfolk
water treatment plants providing service to Virginia Beach by the
total treated water volume output of such Norfolk water treatment
plants, in thousands of gallons. Total Virginia Beach monthly
commodity charges shall be based on the quantity of water
delivered to Virginia Beach (measured at the metering points
provided for in paragraph 3) each month less 1.04 times the
amount of water delivered to Norfolk's wholesale customers
located in Virginia Beach. Determination of the commodity
charges shall be as illustrated in Tables 1, 4 and 5 of Exhibit
B.
658
6.3 Biennial Adjustment of Rates.
659
660
661
Norfolk shall develop projections of rates applicable to
Virginia Beach for treated water service on a biennial basis
based on a cost of service study prepared by an independent
- 30 -
662
663
664
665
666
667
668
669
670
671
672
673
674
675
676
consulting firm as provided for in subparagraph 6.4. The
projections of rates, along with a copy of the cost of service
study, shall be submitted to Virginia Beach not less than 120
days prior to the beginning of the two (2) year period. Virginia
Beach shall be billed monthly for treated water service by
Norfolk using the projected rates applicable to water use
beginning with the first day of the applicable fiscal year and
for the remainder of the two (2) fiscal years. Such projections
of rates, however, may be revised at any time, upon 60 days'
advance notice, during the two (2) fiscal years by Norfolk should
unexpected significant increases or decreases in Virginia Beach's
allocated portion of Norfolk's water system costs occur during
the fiscal years; however, Norfolk shall not adjust Virginia
Beach's rates more than once during the two (2) year period
unless it also adjusts rates to its own retail customers.
677
678
679
680
681
682
683
684
685
Within four (4) months after the end of the second fiscal
year, Norfolk shall complete and submit to Virginia Beach a
true-up schedule of rates and annual billings applicable to the
previous two (2) fiscal years which reflects an allocation of
costs of service as set forth in subparagraph 6.1 based on actual
cost and experience incurred by the Norfolk water system as shown
in the audited books and records of Norfolk. Any resulting
credits or payments applicable to treated water service resulting
from this true-up shall be divided into twelve equal payments or
- 31
686
687
688
689
690
credits to be paid or applied during the second fiscal year.
Determination of the true-up is illustrated in Table 5 of Exhibit
B. Any challenge to the validity of the true-up must be made
within six (6) months after receipt of the true-up schedule by
Virginia Beach.
691
6.4 Determination of Rates and Charqes.
692
693
694
695
696
697
698
699
700
701
702
703
Rates and charges as described in this contract shall be
determined according to the cost of service principles set forth
herein. A cost of service study which illustrates cost of
service principles and allocations has been performed by Black &
Veatch, which study has been reviewed by both parties and is
attached hereto as Exhibit B. The parties recognize, however,
that changes in circumstance may require different allocations
and different cost determinations in future cost of service
studies. The rates and charges and the true-up shall be
determined by an independent consulting firm, of Norfolk's
choice, that is recognized as having experience and expertise in
the determination and design of cost of service water rates.
704 7.0 Reduced Water Usaqe By Virginia Beach.
705
706
7.1 If Virginia Beach receives reduced quantities of
treated water from Norfolk because Virginia Beach has developed
- 32 -
707
708
709
710
711
712
713
714
715
716
or acquired additional treated water supplies, Virginia Beach
shall, nevertheless, thereafter, for the duration of this
contract, pay the annual fixed capacity charge, and the commodity
rate for the actual treated water delivered to Virginia Beach.
In addition, for a period of three (3) years, Virginia Beach
shall pay the annual demand charge determined pursuant to
subparagraph 6.2.2 applied to the greater of its hourly demand
for the year or the highest maximum hour demand computed in
accordance with subparagraph 6.2.2 experienced during the five
(5) years immediately preceding the reduction.
717
718
719
720
721
722
723
724
725
726
727
728
729
730
7.2 If Virginia Beach receives reduced quantities of
treated water from Norfolk, as provided in subparagraph 7.1
above, and then desires to increase its maximum hour demand, it
must give one (1) fiscal year notice of such proposed increase if
the proposed increase will exceed 110% of the previous year's
maximum hour demand. Such notice shall specify the new, higher
maximum hour demand Virginia Beach proposes to exert on the
Norfolk water system during the fiscal year following the
one-year notice period. Virginia Beach shall pay the demand
charge determined in subparagraph 6.2.2 applied to the maximum
demand included in the notice for the one-year notice period, but
shall not increase its maximum hour demand to the level included
in the notice until the second fiscal year. An example of how
this provision would operate is included at Table 8 of Exhibit B.
- 33 -
731
732
This provision shall not be deemed to allow Virginia Beach to
increase its maximum hourly demand above 90 mgd.
733
734
735
736
737
7.3 The provisions of paragraph 7 shall not apply if and to
the extent that Virginia Beach is required to acquire facilities
to provide additional treated water supplies on a long term or
permanent basis because of Norfolk's continued inability to meet
its treated water delivery obligations.
738 8.0 Payment and Billing.
739
740
741
742
8.1 Norfolk agrees to render a statement of charges monthly.
Payment is due upon receipt of statement and shall be from the
same sources, in the same manner and in the same priority as set
forth in paragraph 19 of this contract.
743
744
745
746
747
748
749
750
751
8.2 Virginia Beach agrees that, in the event Virginia Beach
fails to pay the charges in full within 30 days of the receipt of
a billing statement therefore, Norfolk shall be deemed to have
loaned the unpaid sum to Virginia Beach. Virginia Beach agrees
that, in the event Virginia Beach fails to pay the charges in
full within 30 days, Virginia Beach shall pay to Norfolk the
billed charges plus interest at the rate of .83% per month for
each month, or portion thereof, including accrued prior interest
charges which remain unpaid.
- 34 -
752
753
754
755
756
757
758
759
760
761
762
763
764
765
766
767
768
769
770
8.3 If, upon any inspection or test, any metering equipment
is found to be out of service or the percentage of inaccuracy of
any metering equipment is found to be in excess of the standards
described in subparagraph 3.5 herein, registration thereof as
well as charges for water based thereon shall be corrected, by
agreement of the parties based upon the best data available, for
a period extending back to the time when such inaccuracy began,
if such time is ascertainable and, if such time is not
ascertainable, then for a period extending back one-half (1/2) of
the time elapsed since the last date of test and repair, but in
no event further back than a period of six (6) months. The
amount and rates of water delivered during such period may be
estimated (i) by correcting the error, if the percentage of the
error is ascertainable by calibration tests or mathematical
calculation; or (ii) if the error is not ascertainable by
calibration tests or mathematical calculation, by estimating the
quantity and rates of delivery by reference to deliveries during
the preceding periods under similar conditions when the meter or
meters were registering accurately.
771
772
773
774
775
8.4 Virginia Beach agrees that, in the event that any
portion or all of Norfolk's water system is rendered partially or
totally non-useful or non-usable during the term of this
contract, by reason of some natural or other circumstance, or by
reason of Norfolk's inability to obtain or to retain any permit
- 35
776
777
778
779
780
781
782
783
784
785
786
787
788
required to construct, operate, maintain or expand Norfolk's
water system in conjunction with performance of this contract,
which prevents Norfolk from performing any or all of its
obligations under the contract, the payments required to be made
by Virginia Beach to Norfolk under paragraphs 6 and 8 shall
nevertheless continue to be made as though no such event had
occurred. Norfolk agrees that it will use its best efforts to
restore its water system to full use or usefulness by making
necessary repairs or by providing adequate replacements or by
seeking in good faith and by all reasonable legal means to obtain
or to retain any such permit and to resume the performance of its
obligations as quickly as may be possible following such an
event.
789 9.0 Curtailment.
790
791
792
793
794
795
796
797
798
The parties acknowledge that supply or treatment problems
may occur which prevent or limit Norfolk's ability to deliver
treated water to Virginia Beach and/or Norfolk's other treated
water customers. In the event that the conditions which prevent
or limit Norfolk's ability to deliver treated water to Virginia
Beach are applicable to other of Norfolk's customers, Norfolk
agrees that it will seek and, to the extent permitted by federal
and state laws and regulations and national security constraints
as declared by an official of the United States, enforce the
- 36 -
799
800
801
802
803
804
805
806
807
808
809
imposition of treated water curtailment upon all affected
customers, retail, wholesale or otherwise, in order that all such
treated water customers will be similarly affected. Virginia
Beach and Norfolk agree that, if water supplies or services are
curtailed in accordance with the procedures set forth above, they
will cooperate by imposing conservation measures upon their
respective customers. Norfolk and Virginia Beach agree that
neither shall be required to impose curtailments of water supply
which would violate any of the requirements imposed by the State
Water Control Board and other state and federal agencies and
laws.
810 10.0 Force Majeure and Hold Harmless.
811
812
813
814
815
816
817
818
819
820
821
10.1 Norfolk shall not be liable to Virginia Beach for any
act, omission, or circumstances occasioned by or in consequence
of any act of God, strikes, lockouts, acts of the public enemy,
wars, blockades, insurrections, riots, acts of terrorism,
epidemics, landslides, lightning, earthquakes, fires, storms,
floods, washouts, arrests, restraints of the rules and people,
civil disturbances, explosions, breakage or accident to machinery
or lines of pipe, the order or directive of any court or
governmental authority which has been resisted in good faith by
all reasonable legal means, and any other cause, whether of the
kind herein enumerated or otherwise, not reasonably within the
- 37 -
822
823
824
825
control of Norfolk and which by the exercise of due care and
diligence Norfolk is unable to prevent or overcome. Failure to
prevent or settle any strike or strikes shall not be considered
to be a matter within Norfolk's control.
826
827
828
829
830
831
832
833
834
835
836
837
10.2 In case of breaks in the mains, or malfunction of
pumping machinery, or other water works equipment, or the
occurrence of any other event which makes it necessary
temporarily to reduce pressure or cease delivery of water to
Virginia Beach, previous notice of one (1) week will, if
practicable, be given. In no case shall any claim for damage due
to reduced water service or pressure be made by Virginia Beach,
and Virginia Beach shall hold Norfolk harmless from any
third-party suit arising from, or related to, reduced water
service or pressure on the Virginia Beach water distribution
system unless Norfolk's negligence was the cause of the reduced
water service or pressure.
838
839
840
841
842
843
10.3 Virginia Beach agrees to hold Norfolk harmless and
indemnify Norfolk against any claims or losses arising from
receipt of Gaston water by Norfolk or delivery by Norfolk of
treated water to Virginia Beach, unless Norfolk's negligence or
failure to comply with the requirements of subparagraph 4.1 was
the cause of the damage which gave rise to the claim or loss.
- 38 -
844
845
846
10.4 Virginia Beach agrees to hold Norfolk harmless and
indemnify Norfolk from any act or omission of any representative,
agent, or employee of Virginia Beach.
847 11.0 Operations.
848
849
850
851
An advisory committee consisting of the Utilities Directors
from Norfolk and Virginia Beach and/or their respective designees
shall meet regularly to facilitate communications and day-to-day
operations necessary for the performance of this contract.
852 12.0 Effective Date.
853
854
855
856
857
858
859
860
861
862
12.1 This contract shall become effective upon execution by
both parties. The following provisions within the contract,
however, shall not become operational until a date designated by
the Utilities Director of Norfolk that is within thirty days
after the Gaston pipeline is fully operational: paragraphs 2.0,
3.0, 4.0, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, and all subparagraphs
pertaining to these paragraphs. "Fully operational" means
capable of delivering Gaston water on a sustainable basis for the
benefit of Virginia Beach to Norfolk at a point agreeable to both
parties at a rate of 48 mgd.
- 39 -
863
864
865
866
12.2 Norfolk shall not be obligated to provide the Virginia
Beach contract capacities under this contract until February 1,
1998, or in accordance with subparagraph 12.4, whichever is
later.
867
868
869
870
871
872
873
874
875
876
877
In the event that the Gaston pipeline is fully operational
prior to the date that Norfolk can provide the Virginia Beach
contract capacities, then Norfolk shall receive, store, treat and
transmit Gaston water to Virginia Beach to the extent that
Norfolk has the capacity to provide such services, as determined
by the Utilities Director of Norfolk based upon facilities in
service. In such event, the rate base shall be allocated as if
the contract capacities were in place. Norfolk's obligation to
receive, store, treat and transmit Gaston water is conditioned
upon the payment of all rates and charges specified in the Water
Sales Contract.
878
879
880
881
882
883
884
885
12.3 In order to provide Virginia Beach contract capacities
under this contract, Norfolk will need to proceed with the
engineering design and construction of (a) the hydraulic
improvements at the water treatment plant serving Virginia Beach
("the Plant Hydraulic Improvements"), with a pre-design cost
estimate of $35 million, and (b) process improvements (the
"Process Improvements") which are not required to provide the
Virginia Beach contract capacities under this contract but are
- 40
886
887
888
889
890
891
892
893
894
895
896
897
898
899
900
901
902
903
904
905
906
907
908
909
910
required by regulations promulgated by the United States
Environmental Protection Agency pursuant to the federal Safe
Drinking Water Act (42 U.S.C. 300f, et seq.) with a pre-design
cost estimate of $20 million. The Plant Hydraulic Improvements
are a part of the total hydraulic improvements necessary to
provide the Virginia Beach contract capacities under this
contract. The total pre-design cost estimates of such hydraulic
improvements, as set forth in Exhibit D, is $102,252,907. Norfolk
shall (i) cause the Plant Hydraulic Improvements and the Process
Improvements to be designed and to be bid as one (1) contract for
the Process Improvements only and as a second contract for both
Improvement projects and (ii) require that each bidder bid on
both contracts in order to be considered for the award of a
contract for either project. Virginia Beach shall pay to Norfolk
the incremental engineering costs associated with the preparation
of two (2) contract documents, instead of one (1), within thirty
days of the receipt of the bids. Norfolk agrees to notify
Virginia Beach, in writing, of the receipt of the bids for both
improvement projects. Within thirty days of the receipt of such
notice (which notice shall not be sent prior to October 1, 1993
or later than April 1, 1994) Virginia Beach shall notify Norfolk
in writing as to whether to award the contract for the Process
Improvements or the contract for both the Process and Plant
Hydraulic Improvements. If Virginia Beach notifies Norfolk to
award the contract for both Plant Hydraulic and Process
- 41
911
912
913
914
915
916
917
918
919
920
921
922
923
924
925
926
927
Improvements then, Virginia Beach shall also notify Norfolk, in
writing, within one (1) year from the date that Norfolk gives its
contractor notice to proceed with the Process Improvements,
whether or not to proceed with the Plant Hydraulic Improvements.
Authorization by Virginia Beach to proceed with the Plant
Hydraulic Improvements shall also constitute authorization for
Norfolk to proceed with all of the hydraulic improvements, as set
forth in Exhibit D, necessary to provide the Virginia Beach
contract capacities under this contract. In the event that
Norfolk, with Virginia Beach's authorization, awards a contract
for the construction of both Plant Hydraulic and Process
Improvements and Virginia Beach terminates this contract under
subparagraph 18.2 then, the additional costs of the Process
Improvements, if any, resulting from their construction in
combination with the Plant Hydraulic Improvements, as determined
by the separate bids, shall be paid to Norfolk by Virginia Beach
as additional costs under subparagraph 18.2.
928
929
930
931
932
933
934
12.4 If Norfolk awards a contract for the construction of
the Process and Plant Hydraulic Improvements, with Virginia
Beach's authorization, Norfolk shall not be required to provide
the Virginia Beach contract capacities under this contract until
(i) four (4) years after Norfolk gives its contractor notice to
proceed with the Process Improvements if Virginia Beach
authorizes the construction of the Plant Hydraulic Improvements
- 42 -
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949
within one (1) year from the date of such notice to proceed or
(ii) three (3) years after the completion of the Process
Improvements if Virginia Beach's authorization for the Plant
Hydraulic Improvements is provided more than one (1) year after
the date Norfolk gives its contractor notice to proceed and at
least one (1) year prior to the scheduled contract completion
date of the Process Improvements, or (iii) four (4) years after
the completion of the Process Improvements if Virginia Beach's
authorization for the Plant Hydraulic Improvements is provided
less than one (1) year prior to the scheduled contract completion
date of the Process Improvements. If Virginia Beach does not
give authorization for the construction of the Plant Hydraulic
Improvements within the time periods specified in this
subparagraph then Norfolk may terminate this contract pursuant to
subparagraph 17.1c.
950 13.0 Term of Contract.
951
952
This contract shall be for a term beginning on the effective
date as provided in paragraph 12.0, and ending June 30, 2030.
953 14.0 Breaches Related to Treated Water Safe Yield.
954
955
14.1 If Virginia Beach's treated water average day demand
(measured at the metering points) exceeds the lesser of 45 mgd or
- 43 -
956
957
958
959
960
961
962
963
964
965
99.0% of its treated water safe yield, Virginia Beach must reduce
its treated water usage such that it does not exceed the lesser
of 45 mgd or 99.0% of its treated water safe yield. In such
event, Virginia Beach shall institute adequate measures to ensure
that its demand does not exceed the lesser of 45 mgd or 99.0% of
its treated water safe yield. In addition, in such event,
Norfolk may restrict the amount of treated water Virginia Beach
may receive to ensure that the usage of Virginia Beach does not
exceed the lesser of 45 mgd or 99.0% of its treated water safe
yield.
966
967
968
969
970
971
972
973
974
975
14.2 If the Virginia Beach average day demand (measured at
the metering points) exceeds the lesser of 45 mgd or 99.0% of its
treated water safe yield, for a fiscal year, then it shall pay a
supplemental charge for all usage above the lesser of 45 mgd or
99.0% of its treated water safe yield in addition to all other
charges provided in this contract. The supplemental charge shall
be at the rate of $4.00 per 1,000 gallons multiplied by the sum
of 1 plus .05 times the number of years since 1990. Table 9 of
Exhibit B includes an example of how this supplemental charge
shall be calculated.
976
977
978
14.3 If the combined treated water average day demand of
Norfolk and all of its treated water customers, (measured at the
treatment plants) excluding Virginia Beach and any other
- 44
979
980
981
982
983
984
985
986
987
988
989
990
991
992
993
994
995
996
customers for which and to the extent that Norfolk wheels and
treats raw water (adjusted for losses), exceeds Norfolk's treated
water safe yield, then Norfolk must reduce its usage and that of
its treated water customers, other than Virginia Beach and any
other customers for which and to the extent that Norfolk wheels
and treats their raw water (adjusted for losses), such that their
combined treated water usage does not exceed Norfolk's treated
water safe yield. In addition, in such event, Norfolk shall at
the request of Virginia Beach, to the extent permitted by federal
and state laws and regulations and national security constraints
as declared by an official of the United States, restrict the
amount of treated water that Norfolk and its customers may
receive to ensure that the combined usage of Norfolk and its
customers (excluding Virginia Beach and any other customers for
which and to the extent that Norfolk wheels and treats their raw
water (adjusted for losses)) does not exceed Norfolk's treated
water safe yield. This subparagraph shall not apply to
interruptible sales allowed pursuant to subparagraph 2.8.
997
998
999
1000
1001
1002
14.4 If the combined treated water average day demand of
Norfolk and its customers (excluding Virginia Beach, any other
customers for which and to the extent that Norfolk wheels and
treats raw water, adjusted for losses, and interruptible sales
allowed pursuant to subparagraph 2.8) at the treatment plants
exceeds Norfolk's treated water safe yield for a fiscal year,
- 45
1003
1004
1005
1006
1007
1008
then it shall pay a supplemental charge to Virginia Beach for all
use above Norfolk's treated water safe yield. The supplemental
charge shall be equal to $4.00 per 1,000 gallons multiplied by
the sum of 1 plus .05 times the number of years since 1990.
Table 10 of Exhibit B includes an example of how this
supplemental charge shall be calculated.
1009
1010
1011
1012
1013
14.5 The provisions of this paragraph 14 shall not apply
unless and until the party entitled to compensation shall notify
the other party that the first party is of the opinion that there
is a breach related to treated water safe yield as provided in
paragraph 14 for the then current or preceding fiscal year.
1014 15.0 Breaches Related to Contract Capacities.
1015
1016
1017
1018
1019
1020
1021
1022
1023
1024
If Virginia Beach's average day, maximum month, maximum day,
or maximum hour demand exceeds the capacities contracted for in
this agreement as set forth in subparagraphs 2.2 and 2.3, then
Virginia Beach shall reduce its treated water demands to the
average day, maximum month, maximum day, and maximum hour
capacities for which it has contracted in this agreement. To
ensure that the necessary reductions do occur, Virginia Beach
agrees to institute adequate conservation measures. In addition,
in such event, Norfolk may restrict the rate at which Virginia
Beach may receive water to ensure that the demands of Virginia
- 46 -
1025
1026
1027
Beach do not exceed the average day, maximum month, maximum day,
or maximum hour capacities for which Virginia Beach has
contracted.
1028 16.0 Other Breaches.
1029
1030
1031
1032
1033
1034
1035
1036
1037
1038
1039
1040
1041
1042
1043
1044
1045
1046
1047
If either party breaches any term of this contract, the
other party shall give written notice of the breach, identifying
the provision(s) of this contract which are being breached. The
breaching party shall have six (6) months from the date of the
notice within which to cure the breach. In the event the breach
remains uncured for six (6) months, then the breaching party
shall pay to the other, for each 30 days or portion thereof the
breach remains uncured, in addition to all other payments due
under this contract, an amount, beginning with the seventh month,
equal to 10% of the total charge for water on a monthly basis due
by the City of Virginia Beach to Norfolk. This 10% amount shall
increase to 50% should the breach remain uncured for an
uninterrupted period of twelve months. It is, however,
specifically agreed and understood that no payment provided for
in this paragraph shall be required so long as the party in
breach is making a continuous, good faith effort to cure the
breach. The provisions of this paragraph shall not apply to the
conditions, breaches and circumstances provided for in paragraphs
6 and 14.
- 47 -
1048 17.0 Termination by Norfolk.
1049
1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064
1065
1066
1067
1068
1069
1070
17.1 Norfolk may terminate this contract only if one (1) of
the following events occurs:
a. Gaston pipeline is not 50% complete by June 30, 1998
with (i) all permits and approvals still in force for the
construction in progress and (ii) all permits and approvals
necessary to withdraw water from Lake Gaston and have the
pipeline fully operational as defined in paragraph 12.
b. Gaston pipeline is not 100% complete and fully
operational, as defined in paragraph 12, by June 30, 2000, witl
all permits and approvals still in force.
c. Virginia Beach does not give authorization for the
construction of the Plant Hydraulic Improvements prior to Janu;
1, 1997.
d. Virginia Beach does not pay in full a statement as
provided in subparagraph 8.1 of this contract within 120 days (f
receipt unless the unpaid portion of such statement has been
submitted to the dispute resolution process set forth in
subparagraph 20.7 or, the dispute resolution process having
failed to resolve the controversy regarding the unpaid portion of
such statement, such unpaid portion is the subject of litigation
between Norfolk and Virginia Beach contesting its validity;
provided, however, in all events, the payments as demanded by
- 48
1071
1072
1073
1074
1075
1076
1077
1078
1079
1080
1081
Norfolk will continue to be paid, unless and until the litigation
has been concluded, including all applicable appeals.
e. Virginia Beach has a total and permanent loss of
ability to deliver Gaston water to Norfolk, including, bu~ not
limited to, equipment failure or destruction, or the loss of any
required permit, approval, or authority. Such loss shall be
deemed to be permanent if it continues for twenty-four
consecutive months.
f. Virginia Beach has wilfully and continuously breached
any term of this contract which significantly affects the ~
operation of this contract.
1082
1083
1084
1085
1086
1087
1088
1089
1090
1091
1092
1093
17.2 In order for termination by Norfolk to become ~
effective, Norfolk must notify Virginia Beach that one of the
specific bases for termination referred to in subparagraph 17.1
has occurred. Notice of termination on the basis of subparagraph
17.la must be provided on or before December 31, 1998; notice of
termination on the basis of subparagraph 17.1b must be provided
by December 31, 2000; notice of termination on the basis of
subparagraph 17.1c must be provided within one (1) year frown the
date that the basis for termination arises; and as to ~
subparagraph 17.1f, Norfolk shall within thirty days notify
Virginia Beach whenever Norfolk determines that Virginia Beach is
in breach of this contract and that such breach, if continued,
- 49 -
1094
1095
1096
1097
1098
1099
1100
1101
1102
1103
1104
would constitute an event for which Norfolk could terminate this
contract under said subparagraph. Termination shall be effective
60 days after such notice is provided unless the basis for
termination has been submitted to the dispute resolution process
set forth in subparagraph 20.7 or, the dispute resolution process
having failed to resolve the controversy regarding the basis for
termination, such basis for termination is the subject of
litigation between Norfolk and Virginia Beach, in which event,
termination shall be effective 60 days after a basis for
termination has been determined in accordance with such dispute
resolution process or litigation and, if applicable, any appeals.
1105
1106
1107
1108
1109
1110
1111
1112
1113
1114
1115
1116
1117
17.3 Upon termination of this contract by Norfolk after the
Gaston Pipeline is fully operational, Virginia Beach may receive
water from Norfolk (in amounts to be determined by Norfolk) for
three (3) years after the effective date of termination, if
Norfolk has sufficient surplus water available, provided,
however, if there is a then existing surplus water contract
between Norfolk and Virginia Beach, then the terms of the surplus
water contract shall govern. Virginia Beach agrees to pay for all
such surplus water at a rate equal to two (2) times the sum of
the charges which would be applicable under this contract.
Virginia Beach specifically understands and agrees that, except
as specifically stated in the first sentence of this
subparagraph, Virginia Beach shall not be entitled to receive any
- 50 -
1118
1119
water under the terms of this contract after the effective date
of termination of this contract.
1120
1121
1122
1123
1124
Virginia Beach agrees that, during the term of this
contract, it will take such action as is necessary to provide all
of the treated water needs of its citizens and those receiving
treated water from Virginia Beach which are in excess of Virginia
Beach's treated water safe yield.
1125
1126
1127
1128
1129
1130
If Virginia Beach receives water from Norfolk which
is not provided for under the terms of this contract or another
written contract between the parties, Virginia Beach agrees to
pay for all such water received at a rate equal to three (3)
times the sum of the charges which would be applicable under this
contract.
1131
1132
1133
1134
1135
1136
1137
1138
1139
17.4 In the event that this contract is terminated by
Norfolk under subparagraph 17.1 prior to the date that Virginia
Beach receives services under this contract and prior to the date
Virginia Beach authorizes the construction of the Plant Hydraulic
Improvements, Virginia Beach shall pay Norfolk the amounts set
forth in paragraph 18.1 as if Virginia Beach had terminated the
contract. In the event that this contract is terminated by
Norfolk under subparagraph 17.1 prior to the date that Virginia
Beach receives services under this contract and after the date
- 51 -
1140
1141
1142
1143
1144
1145
1146
1147
1148
1149
1150
1151
1152
1153
1154
1155
1156
1157
1158
1159
1160
1161
1162
1163
Virginia Beach authorizes the construction of the Plant Hydraulic
Improvements, Virginia Beach shall pay Norfolk the amounts set
forth in paragraph 18.2 as if Virginia Beach had terminated the
contract. In the event that this contract is terminated by
Norfolk under subparagraph 17.1, after the date that Virginia
Beach receives services under this contract, or by Virginia Beach
under subparagraph 18.3c, Virginia Beach shall pay to Norfolk an
amount equal to the rate base allocated to Virginia Beach under
the most recent cost of service study, provided such facilities
are not necessary for Norfolk to provide service to Norfolk or
customers of Norfolk with contracts for the sale of water,
including Virginia Beach. It is expressly understood and agreed
that Virginia Beach's rights to services under this contract
shall not be considered in making the determination of whether
the facilities are necessary under this subparagraph. In the
event Norfolk needs part, but not all, of the facilities
allocated to Virginia Beach, Virginia Beach shall pay an amount
equal to the part of the rate base allocated to Virginia Beach
which is not needed by Norfolk as provided herein. Virginia
Beach shall pay such amounts set forth in this subparagraph in
not more than ten (10) equal annual installments beginning twelve
months from the effective date of termination. In addition, with
each such installment of principal, Virginia Beach shall pay a
return on the unpaid balance equal to the return on rate base
- 52 -
1164
1165
determined by subparagraph 6.1.3 for the immediately preceding
fiscal year.
1166
1167
1168
1169
17.5 Upon the effective date of termination, except as
provided in subparagraph 17.3 hereof, Norfolk shall have no
further obligations or responsibilities to Virginia Beach with
respect to any provision of this contract.
1170 18.0 Termination by Virginia Beach.
1171
1172
1173
1174
1175
1176
1177
1178
1179
1180
1181
1182
1183
1184
1185
18.1 Virginia Beach may terminate this contract at any time
prior to authorizing construction of the Plant Hydraulic
Improvements pursuant to subparagraph 12.4 by providing written
notice. Such termination shall be effective 90 days after the
notice is provided. In the event of such termination by Virginia
Beach, Virginia Beach shall be obligated to pay to Norfolk all of
Norfolk's actual costs incurred between January 1, 1990, and the
effective date of termination, to complete the projects set forth
in Exhibit C to meet its obligations under this contract, to the
extent such projects are required to meet the obligations of this
contract and are not, at such time, needed to serve Norfolk or
the customers of Norfolk with contracts for the sale of water,
including Virginia Beach. Virginia Beach shall pay such costs in
not more than five (5) equal annual installments beginning on the
effective date of termination. In addition, with each such
- 53 -
1186
1187
1188
installment of principal, Virginia Beach shall pay a return on
the unpaid balance equal to the return on rate base determined by
subparagraph 6.1.3 for each immediately preceding fiscal year.
1189
1190
1191
1192
1193
1194
1195
1196
1197
1198
1199
1200
1201
1202
1203
1204
1205
1206
1207
1208
1209
18.2 Virginia Beach may, by written notice, terminate this
contract at any time after notifying Norfolk to proceed with the
Plant Hydraulic Improvements pursuant to subparagraph 12.4 and
prior to receiving services pursuant to this contract, if
Virginia Beach believes that the Gaston pipeline will not become
fully operational. Such termination shall be effective 90 days
after the notice is provided. In the event of such termination
by Virginia Beach, Virginia Beach shall be obligated to pay to
Norfolk all of Norfolk's actual costs incurred between January 1,
1990, and the effective date of termination, to construct the
facilities set forth in Exhibit D to meet its obligations under
this contract, to the extent such facilities are not, at such
time, needed to serve Norfolk or the customers of Norfolk with
written contracts for the sale of water, including Virginia
Beach. In addition, such costs incurred to construct the
facilities set forth in Exhibit D shall include all costs
incurred after the effective date of termination with respect to
such construction projects in progress on the date termination
notice was given; provided, however, such additional costs shall
be the lesser of (i) the additional cost to complete any such
project or (ii) the cost to place the facilities being
- 54 -
1210
1211
1212
1213
1214
1215
1216
1217
1218
1219
1220
1221
1222
1223
1224
1225
1226
1227
1228
1229
1230
1231
1232
constructed or modified in good working order with reduced
capacity so long as, in the case of the modification of a
facility, the capacity is not less than it was before the
modification was undertaken. In addition, Virginia Beach shall
pay any termination or other contract charges associated with
terminating any such construction projects as a result of the
termination of this contract. Virginia Beach shall pay all costs
referred to in the three (3) preceding sentences in not more than
ten (10) equal annual installments beginning on the effective
date of termination, provided, however that any termination or
completion costs shall be paid in not more than nine (9) equal
annual installments beginning one (1) year after the effective
date of termination. In addition, with each such installment of
principal, Virginia Beach shall pay a return on the unpaid
balance equal to the return on rate base determined by
subparagraph 6.1.3 for each immediately preceding fiscal year.
Within sixty days after the effective date of termination,
Norfolk shall provide Virginia Beach with a close out plan for
all construction work in progress including (i) a description of
the work, (ii) the percentage of completion, (iii) the scheduled
completion date, (iv) the costs to date, (v) the estimated cost
to complete and (vi) the estimated capacity upon close out of
construction.
- 55 -
1233
1234
1235
1236
1237
1238
1239
1240
1241
18.3 Except as provided in subparagraphs 18.1 and 18.2,
Virginia Beach may terminate this contract only if one (1) of the
following events occurs:
a. Norfolk has a permanent and total loss of ability to
wheel and treat Gaston water for 24 consecutive months.
b. Norfolk has wilfully and continuously breached any term
of the contract which significantly affects the operation of this
contract.
c. the events described in subparagraph 17.1e.
1242
1243
1244
1245
1246
1247
1248
1249
1250
1251
1252
1253
1254
1255
In order for termination by Virginia Beach to become
effective pursuant to this subparagraph 18.3, Virginia Beach must
notify Norfolk that one of the specific bases for termination
referred to in this subparagraph 18.3 has occurred. Termination
shall be effective 60 days after such notice is provided unless
the basis for termination has been submitted to the dispute
resolution process set forth in subparagraph 20.7, or, the
dispute resolution process having failed to resolve the
controversy regarding the basis for termination, such basis for
termination is the subject of litigation between Norfolk and
Virginia Beach, in which event, termination shall be effective 60
days after a basis for termination has been determined in
accordance with such dispute resolution process or litigation
and, if applicable, any appeals.
- 56
1256
1257
1258
1259
1260
Upon the effective date of termination by Virginia Beach
other than for events specified in subparagraph 18.3c, Virginia
Beach shall have no further obligations or responsibilities to
Norfolk under this contract except to pay any outstanding amounts
due for service provided under this contract.
1261 19.0 Source and Priority of Payments.
1262
19.1. Source of Payment.
1263
1264
1265
1266
1267
1268
1269
1270
1271
1272
1273
1274
1275
1276
Virginia Beach shall make payments of all charges for
treated water service pursuant to Paragraphs 6 and 8, as well as
charges upon termination of this contract pursuant to Paragraph
17 or 18 and any other charges payable under this contract,
solely from revenues received by Virginia Beach from charges paid
by users of its water and sewer system and available to it for
such purposes for so long as Virginia Beach operates its water
and sewer system on a combined basis; provided, however, if
Virginia Beach determines to operate its water system separate
and apart from its sewer system, then such charges may be paid
solely from revenues of its water system. The charges payable
under this contract shall not be deemed to create or constitute
an indebtedness or a pledge of the faith and credit of the
Commonwealth or of any county, city, town or other political
- 57 -
1277
1278
subdivision thereof, including Virginia Beach, for purposes of
any Constitutional, statutory or charter limitation.
1279
19.2. Characterization of Charqes under This Contract.
1280
1281
1282
1283
1284
Virginia Beach agrees that the demand charge, supplemental
demand charge, commodity charge, fixed capacity charge and
Termination Payments shall be deemed to be a part of the annual
operating expense of the Virginia Beach water and sewer system,
or the water system, as applicable.
1285
1286
1287
1288
1289
Subject to the following paragraph, the demand charge,
supplemental demand charge, commodity charge, fixed capacity
charge and Termination Payments shall be paid prior to the debt
service on any water and sewer revenue bonds or double barrel
bonds of Virginia Beach.
1290
1291
1292
1293
1294
1295
1296
Virginia Beach and Norfolk acknowledge and agree that (i)
the payment of the fixed capacity charge shall be on parity with
the payment of debt service on the Prior Parity Bonds (as defined
in the Master Bond Resolution) and Virginia Beach's Water and
Sewer System Revenue Bonds, Series of 1992, and (ii) the payment
of the Termination Payments shall be subordinate to the payment
of debt service on such bonds.
- 58 -
1297
1298
1299
1300
1301
1302
1303
1304
1305
1306
1307
1308
1309
1310
1311
1312
1313
Other than as set forth in the preceding sentence, Virginia
Beach agrees that so long as this contract is in full force and
effect it will not issue any water and sewer revenue bonds or
double barrel bonds (including bonds refunding Prior Parity Bonds
and Virginia Beach's Water and Sewer System Revenue Bonds, Series
of 1992 and bonds issued under Subparagraph 19.4.1 hereof) the
debt service on which will be payable prior to or on parity with
its payment obligations hereunder (i.e., the demand charge,
supplemental demand charge, commodity charge, fixed capacity
charge and Termination Payments). Virginia Beach further agrees
that it will not amend or supplement the Master Bond Resolution
or enter into any successor indenture, trust agreement or
resolution pledging the revenues of its water and sewer system,
or its water system, as applicable, in such a way that will
subordinate or adversely affect the pledge or the dignity thereof
securing its payment obligations hereunder (including the
Termination Payments), without the written consent of Norfolk.
1314
1315
1316
1317
1318
1319
1320
19.3. Maximum Amount and Final Payment Date of Termination
Payments. The total amount of Termination Payments pursuant to
Paragraphs 17 and 18 shall not exceed $102,252,907 (the "Maximum
Termination Amount") as shown on Exhibit D, or such higher amount
as shall be Norfolk's actual costs to construct the facilities
set forth in Exhibit D, in which event Norfolk shall advise
Virginia Beach of such higher Maximum Termination Amount and
- 59 -
1321
1322
1323
provide appropriate documentation supporting the same. The final
payment in full for the Termination Payments shall not be later
than July 1, 2009.
1324
1325
1326
1327
1328
1329
1330
19.4. Method of Makinq Termination Payments. Other than as
set forth in Subparagraphs 19.1 and 19.2, the Termination
Payments may be paid by Virginia Beach pursuant to one or more
methods, including, without limitation, those methods more fully
described below; provided, however, that if Virginia Beach
desires a method other than as set forth below, Norfolk shall
consent to such method.
1331
1332
1333
1334
1335
1336
19.4.1. Issuance of Bonds. Norfolk acknowledges the
right of Virginia Beach to issue either its revenue or general
obligation bonds, the proceeds of which will finance the costs of
making the Termination Payments. Norfolk acknowledges that the
determination as to whether to issue such bonds is within the
complete control of Virginia Beach.
1337
1338
1339
1340
1341
1342
19.4.2. Insurance. Norfolk agrees that Virginia Beach
may substitute insurance for its obligations to make Termination
Payments. If (i) the insurer is one whose municipal bond
insurance policies are rated in the highest category by a
national rating service, or the insurer has the highest
policyholder rating accorded insurers by a national rating
- 60
1343
1344
1345
1346
1347
service, or (ii) Norfolk approves the nature, provider and form
of such insurance, which approval shall not be unreasonably
withheld, such insurance shall satisfy Virginia Beach's
obligations to make Termination Payments, and Virginia Beach
shall be relieved of any further liability therefor.
1348
1349
1350
1351
1352
1353
1354
1355
1356
1357
1358
1359
19.4.3. Letter of Credit. Norfolk agrees that
Virginia Beach may substitute a letter of credit for its
obligations to make Termination Payments. If (i) the letter of
credit issuer is rated by a national rating service within its
two highest rating categories and the letter of credit itself is
rated within the two highest rating categories by a national
rating service, or (ii) Norfolk approves the nature, provider and
form of such letter of credit, which approval shall not be
unreasonably withheld, such letter of credit shall satisfy
Virginia Beach's obligations to make Termination Payments, and
Virginia Beach shall be relieved of any further liability
therefor.
1360
1361
1362
1363
1364
1365
19.4.4. Reserves. Norfolk agrees that Virginia Beach
may set aside reserves from its utility funds or other available
funds with an independent third party reasonably agreeable to
Norfolk and solely and irrevocably dedicate or pledge such funds
to the payment of the Termination Payments. Such dedication or
pledge may offset the outstanding liability of Virginia Beach for
- 61 -
1366
1367
1368
the payment of the Termination Payments. Norfolk acknowledges
that the determination as to whether to establish such reserves
is within the complete control of Virginia Beach.
1369
1370
1371
1372
1373
1374
1375
1376
1377
1378
19.5 Rate Covenant. Virginia Beach shall fix, charge and
collect such rates, fees and other charges for the use of and for
the services furnished by its water and sewer system, or its
water system, as applicable, and shall, from time to time and as
often as shall appear necessary, revise such rates, fees and
other charges so that revenues received from its water and sewer
system, or its water system, as appropriate, shall be sufficient
in each year to pay all amounts due hereunder and all other
operation and maintenance expenses of its water and sewer system,
or its water system, as applicable.
1379
1380
1381
1382
19.6 Copy of Amendments or Supplements. Virginia Beach
agrees that it will provide Norfolk a copy of any amendment,
supplement or successor to, or replacement for, the Master Bond
Resolution promptly upon the execution and delivery thereof.
1383
1384
1385
1386
1387
19.7 Master Bond Resolution Incorporation by Reference.
Virginia Beach agrees that the requirements pertaining to the
operation of its water and sewer system, or water system, as
applicable, that are set forth in the following sections of the
Master Bond Resolution are hereby incorporated by reference,
- 62
1388
1389
together with any definitions in the Master Bond Resolution
necessary to give meaning to defined terms used in such sections:
1390
1391
1392
1393
1394
1395
1396
1397
1398
Section 805.
Section 806.
Section 807.
Section 808.
Section 809.
Section 810.
"Operation and Maintenance,"
"Free Service, Competing Service, Billing and
Enforcement of Charges,"
"Sale and Encumbrance of System,"
"Insurance,"
"Damage, Destruction, Condemnation and Loss
of Title," and
"Records and Accounts; Inspections
and Reports."
1399
1400
1401
1402
Virginia Beach covenants that the requirements contained in
such sections will remain in full force and effect for the life
of this contract regardless of whether any bonds remain
outstanding under the Master Bond Resolution.
1403 20.0 General Terms and Conditions.
1404
1405
1406
1407
20.1 Books and Records. Norfolk agrees to furnish to
Virginia Beach an annual audited financial report of the Norfolk
Department of Utilities which may be included as part of the
City's Comprehensive Annual Financial Report. Each city shall
- 63 -
1408
1409
1410
allow the other to inspect its books and records pertaining to
the water utility systems, provided that inspections occur during
normal business hours after two (2) work days' notice.
1411
1412
1413
1414
1415
1416
20.2 Notice of Desiq~ee. Where this contract permits
performance by a designee of the Director of Utilities of either
city, and performance is actually to be rendered by this
designee, the name of the designee shall be submitted to the
Director of Utilities of the other city in writing prior to such
performance.
1417
1418
1419
1420
1421
1422
1423
20.3 Waivers. Any waiver at any time by either Norfolk or
Virginia Beach of its rights with respect to a default or breach
of this contract or with respect to any other matter arising in
connection with this contract shall not be deemed a waiver with
respect to any subsequent default or matter. Any delay short of
the statutory period of limitation in exerting or enforcing any
right shall not be deemed a waiver of such right.
1424
1425
1426
1427
1428
1429
20.4 Compensation. In the event that part or all of the
Norfolk water system is taken (voluntarily or involuntarily) by
an entity other than Norfolk and Norfolk is compensated for such
system, or Norfolk is otherwise compensated for all or part of
its water system whether by condemnation or otherwise, it is
specifically agreed that all such compensation shall inure to
- 64 -
1430
1431
Norfolk and that Virginia Beach shall have no right to or
interest in such compensation.
1432
1433
1434
1435
1436
1437
20.5 No Verbal Agreement. This contract contains all
commitments and agreements of the parties with respect to storage
treatment and transmission of Gaston water supplied by Virginia
Beach, and no verbal or written commitments other than this
contract shall have any force or effect regarding these water
services.
1438
1439
1440
20.6 Assignment. This contract shall not be assigned or
transferred by either party without prior written consent of the
other party.
1441
1442
1443
1444
1445
1446
1447
1448
1449
1450
1451
20.7 Dispute Resolution. If a dispute arises between
Norfolk and Virginia Beach under this contract (including, but
not limited to, disputes concerning paragraphs 14, 15, 16, 17 and
18), the parties shall seek to resolve the matter by utilizing
the following sequence of mechanisms for dispute resolution
before either party seeks or takes legal action in a court:
non-binding discussions between the Norfolk Utilities Director
and the Virginia Beach Utilities Director and non-binding
discussions between the Norfolk City Manager and the Virginia
Beach City Manager. Wherever this contract provides that any
issue or fact be determined by a party, a consultant and/or the
- 65 -
1452
1453
1454
1455
1456
agreement of the parties and any party disputes such
determination or the parties cannot agree, then, after resort to
the dispute resolution process specified in this subparagraph,
either party may institute legal action to resolve such issues in
any manner provided for in law or in equity.
1457
1458
1459
1460
1461
1462
1463
20.8 Venue. Norfolk and Virginia Beach agree that this
contract shall be enforceable in Norfolk, Virginia, and if legal
action is necessary to enforce it, exclusive venue shall lie in
Norfolk, Virginia. If legal action is necessary, Norfolk and
Virginia Beach further agree that each city will request that the
trial judge be from outside both cities and not associated with
either city.
1464
1465
1466
1467
20.9 Contract Interpretation. In interpreting the various
provisions of this contract in a court of law, any said court
having jurisdiction shall apply the laws of the Commonwealth of
Virginia to interpret the terms and provisions of this contract.
1468
1469
1470
20.10 Captions. The captions to the various clauses of this
contract are for informational purposes only and shall not alter
the substance of the terms and conditions of this contract.
1471
1472
20.11 Notices. Any notice required under this contract
(other than the requests for raw water described in subparagraph
- 66
1473
1474
1475
1476
1477
1478
1479
1480
1481
2.5 herein) shall be in writin9 and shall be sufficient and
deemed provided if delivered in person to the City Manager or
mailed by United States Certified Mail, postage prepaid, to the
followin9 addresses:
Norfolk
City Manager
City Hall Buildin9
Civic Center
Norfolk, Virginia 23510
Virginia Beach
City Manager
281 City Hall Municipal Center
Virginia Beach, Virginia 23456
1482
1483
1484
20.12 Bindinq on Successors. This contract shall inure to
the benefit of and be bindin9 upon all successors and assigns of
each of the parties hereto.
1485
1486
1487
1488
1489
1490
1491
1492
20.13 Amendment. This contract shall be amended only in
writin9 and signed by City Managers of Norfolk and of Virginia
Beach. No amendment or modification to this contract or any
waiver of any provision hereof shall be effective unless in
writin9 signed by the city managers of Norfolk and of Virginia
Beach. This contract shall be 9overned by, construed, and
enforced in accordance with the laws of the Commonwealth of
Virginia.
1493
1494
1495
1496
IN WITNESS WHEREOF, Norfolk has caused this contract to be
signed in its name and on its behalf by James B. Oliver, Jr.,
City Manager, and its corporate seal to be hereto affixed and
attested by its City Clerk, pursuant to Ordinance No. 37,303
- 67 -
1497
1498
1499
1500
1501
1502
1503
1504
1505
1506
1507
1508
1509
1510
1511
1512
1513
1514
1515
adopted by its Council on the 22nd day of June, 1993; and
Virginia Beach has caused this contract to be signed in its name
and on its behalf by James K. Spore, its City Manager, and its
corporate seal to be hereto affixed and attested by its City
Clerk, pursuant to Ordinance No. 93-2241 adopted by its Council
on the 22nd day of June, 1993.
CITY OF NORFOLK
ATTEST:
City Clerk
APF~OYED AS~O ~ORM:
City Attorney --
D~~AS TO/~*0~E~:
Director of Utilities'
1516
1517
1518
1519
1520
1521
1522
ATTEST:
C~ty Clerk~
CITY OF VIRGINIA BEACH
ity Mana
- 68 -
1523
1524
1525
APPROVED AS TO FORM:
C~t~'~[~-o rney '~
1526
1527
1528
APPROVED AS TO CONTENT:
Director of Publi
- 69
EXHIBIT A
VIRGINIA BEACH MASTER METERS
NUMBER
~3
#3A
~4B
~5B
#6
#6A
~7
~8
#8.1
~8.2
~10
~10A
~10B
LOCATION
Wesleyan Drive
Wesleyan Drive
Davis Corner North
Davis Corner South
Military Highway
Military Highway
Sand Pit Station
Newtown Road
Newtown Road
Newtown Road
Northampton Blvd. & Wesleyan Dr.
Northampton Blvd. & Wesleyan Dr.
Northampton Blvd. & Wesleyan Dr.
~IZE
10"
10"
16"
16"
10"
!0"
,
Note:
i ·
Meters 8, 8.1 and 8.2 are currently in design for
replacement.
2. This listing is based on meters in service as of 7/1/92
TABLE 2 (Page I of 2) 16-Jun-93
Line
No. Oescrtptlon
WATER SERVICES CONTRACT
EX)(IBIT B
TABLE 2
ALLOCATION OF RATE BASE Fiscal Year 1995
(1) (2) (3) (4) (5) (6) (7)
Development of Rate Base
(8) (g)
Allocable
To Virginia
9 W~)/LP to Moores Bridges
10 Subtota 1
Raw Water Pumping Stations
Il Wells
12 Nottoway & Blackwater
13 In lown/l~oores 8rtdges
14 Western Branch I1 (1)
15 WB 12 / Lake Prince - Fl)
16 Stmonsdale
17 Subtotal
Treatment
18 Hoores Bridges Plant
19 371h Street Plant
26 Subtotal
Treated Water Storage
21 Distribution
22 Moores 8ridges Plant
23 3711~ Street Plant
24 Subtotal
Treated Water Trans. & Dist.
25 Servtng Virginia Beach
26 Other
27 Subtotal
Treated water Pumping
28 OIstribution
29 Hoore$ Bridges Plant
30 371h Street Plant
31 Subtotal
Haters & Installations
32 Virginia Beac~
33 Other Than Virginia Beach
34 Subtotal
3S F ire Hydrants
36 Water 01st. Operations Center (m)
37 Total End of Fiscal Year
Total End of Previous Fiscal Year
39 Average(h)
40 Working Capital (l)
41 Total Rate Base
42 Rate of Return (J)
43 Annual Return (k)
~2,059,712 5,353,07¢ 16,706.639 17.830,000 15.78S.960 558.929 49,763,670 49,763,670 26.955.321 (c)
26.284,179 6,902.933 19,3B1.246 23,481.000 16,935,930 817,206 56.g00,969 50,535,218 27,447.454
69.121 46.90.4 22.127 0 0 1.0(0~ 21.I18
2,372,908 514.444 1,B58.464 0 0 24,214 1,834.251
390.1S1 2,.752 150.399 0 0 4.036 146.363 146'363' 93~356(b)-
723.622 360,784 362.837 0 1.045,427 7,062 1.401.202 560.481 303.594
690,96S 553,434 131,531 1,113.676 6.272.566 11,098 7.512.675 7.512.675 4.069,366
426.569 213.674 212,915 0 2.456,756 0 2,669,671 2.669,671 1.702,851
4.68Z,355 1,938.082 2,744,273 1,113.676 9,774,749 47,418 13,585,280 10,889,190 6,169,168
12,981,399 4,663,590 8,317.808 15,08Z.229 37.635,400 71,632 00.963.806 60.963,8436 38,885,792 (d)
8,137,324 1,926,231 6,211,093 5,530,846 2,090,856 114,005 13,718,790 -
21,118,723 6,589,821 14,528,902 20,613,075 39.726,256 185,637 74,682,596 60,963,806 38,&85,792
1.724.370 415.796 1.308.574 0 0 0 1.308.574
1.)4~.557 4~i,430 885.127 0 0 0 885.127 8~5'127 ~7'2~9 (e)
927,690 66,908 860,782 0 0 0 860.782
3,998.617 944,135 3.054.483 0 0 0 3,054.483 885.127 567,229
4,340.565 629,356 3.711.Z08 7,166.950 1,777.221 0 12.655,385 12.655.385 12,022.616 (f)
30.194,967 6.004,722 24,190,245 32,364.011 36.506.338 0 93.060,594 -
34,535,532 6.634.079 27.901.453 39,530.961 38.283,565 0 105,715,979 12.655.385 12,022,616
1.300.825 81,533 1.21g.29'Z 0 0 12.107 !.207,185
411,662 365.409 46,253 1,100,000 4,390,797 4,036 5,533,014 5,533~014 3,545:805 (e)
260,146 230.172 29.974 0 0 2,018 27,956 -
1,972,632 677,114 1.295.519 I.IO0,(XX) 4,390,797 18,160 6,768,156 5,533.014 3,545,805
59,527 23,497 36.030 4OO.000 1,0OO.OOO O 1,436.030 1,436,030 1,436,030 100~ Direct
8,105.131 3,126,218 4.978,914 0 2,658,997 7,062 7.630,848 -
8,164,658 3,149,715 5.01¢,943 400,000 3,658.997 7,062 9,066.878 1,436,030 1.436.030
766,148 448,138 318,010 0 0
0 318.010 -
500.000 5,070,325 0 5.570,325 666,830 633,4Bg (f)
108,877,715 28,953.794 79,923.921 83,007,896 124,270,000 1,701,000 290,500,817 156,248,251 96,898,127
270,000,000
95,000,000
95,949,064
951,557
96.900,620
9 76~
9.457,501
Construction ~or Less FY 1995
Original Accumulated Work In Capital Contributed Rate Virginia Beach
Cost Depreciation OCLD Progress Improve. Plant OCLD Base (n) Beach Portion
$ $ $ $ $ $ $ $ $
Raw Water Supply
I Wells 190.297 90.585 90.712 0 0 25.222 74,490
3 Burnt Hills Reservoir 625.399 240,260 385,139 0 0 63.560 321,578 321.578 130.515
4 In Town Reservoirs 525.426 61.000 464,425 1,269,184 Z.770,3M 9.080 4,494,913 4.494,913 2,867,082
5 Subtotal 7,354,870 1.669,779 5.685,092 1.269.184 6.429.381 625.516 12.756.141 12.683,651 6,190,545
Raw Water Storage & Transmission
6 BW/Nottoway to Lake Prince 3,335.390 1,216,1BS 2,119,20S 5,541,000 0 106,943 7,553.262
.
.
7 In Town Reservoirs 480,279 216,312 263,968 0 522.714 1S.133 771,$48 771'548 492'132 (b)
8 Western Branch to 371h Street 408,797 117,363 291,434 110,000 627,256 136,201 892,489 -
TABLE ] (Page 2 of 2) 16-Jun-93
Line
WATER SERVICES C~TRACT
EXHIBIT B
TABLE 1
ALLOCATION OF OP£RATION ANO HAINTEHANC[ EXPENSE
Fiscal Year lgg5
(I) (2) (3) (4) (5) (6)
Total O&H Allocation Adjusted
Operation Allocation ~Justed Of For Gen Exp
and Of For Engineer. Allocation Eng &
Haintenance General General And DIr. Of Dir Off
Item Expense (a) Expenses (b) Expenses Office (c) PILOT (d) & PILOT
S $ $ $ $ S
DIVISION OF WATER DISTRIBUTION
42 Transmission Mains -Vtrgtnta Beach (k) 234,$I4
43 T & DMains - Other (k) 1,724,482
44 Storage 56.602
45 Treated Water Puq)lng 125,419
46 Peters and Installations - Virginia Beach (1) 12.226
47 Peters and Installations - Others (1) 1,210.330
48 Fire H~rants 496,934
49 Total Water Distribution
DIVISION OF WATER ACCOUNTS
50 Direct Expense - Virginia Beach
51 Direct Expense - Other
52 Total Water Accounts
.53 GENERAL ALLOCAT IONS
54 ENGINEERING DIVISION
SS OIRECTIOR'S OFFI~
56 PAYHENT IN LIEU OF TALES (PILl7[)
57 PAYI'iENT TO CI1~' G~NF:JLAL FUll)
56 TOTAL OPERATION ~ HAINTEILAffC~ EXPENSE
59 Total Maximum Hour Non-coincidental Oemnd- mgd
60 Unit Demand Cost - $/mgd
61 Unit Demand Charge at Virginia Beach Peter - $/mgd
62 Total Poores Bridges Treated Water Output - 1,000 gal.
63 Unit Cmmmodity Cost at Treatmnt Plant - $/1,0G0 gal.
64 Unit Coamdity Charge at Virginia :)each Hater - $/%,000 gal.
(7) (8) (9)
Allocable To Vtrglnia Beach
~.~nd Co~lty
Total Portion Portion
$ $ $
~.247 263,760 60.588 324,348 324,:~8 324.348
215,064 1,939,546 445,528 - 2,385,074 -
7,05g 63.661 14,623 18'062 96,347 -
15,641 141.060 32,403 16,663 190,126
1.525 13.750 3,159 16.909 16~909 16~g09
150,943 1,361.273 312,694 1.673,967 -
61,974 558,907 128,385 - 687,292 -
3,860,506 481,452 4,341,958 997,380 34.725 $.374,063 341.257 341,257 0
45,000 - 45,000 10,337 - 55,337 55,337 55.337 -
2,697,558 - 2,697,558 61g,64g - 3,317,207 - -
1,351,034 (1,351,034) -
2.177.520 - 2.177.520 (2.177.520) - -
1,251,280 - 1,251.280 (1,251,280) - - -
1,34~.854 - 1.3~4,854 (1,344.854) - - -
7,231.062 - 7.231.062 - 7.231.062 - -
35,539.5g0 0 35.539.590 0 (0) 35,539.590 13.942.855 8,100,216 5.842,640
142.44 (e)
56.8~a (f)
57.437 (g)
25,995,000 (h)
O. 2248 (1)
0.2270 (J)
MOTES:
(a)
(b)
(c)
(d)
Col. I - Total C)&Jq for Flscal Year lg95.
Distribution wtthin 01visions based on
all Colum I costs other than power,
chemicals, and sludge disposal costs.
Distribution based on all Column 3 costs
other than power, chemicals, and sludge
disposal COSTS.
Distribution based on Table 2, Column 7,
Allocation of Rate Base to Above Ground Plant
within Norfolk.
(e) Current use non-coincidental peak hour
demand of Norfolk and Virginia Beach at
tkx)res Bridges (and any o~her treatment
plants serving Vtrgtnla Beach) assumed
rot Illustration purposes.
(f) Line 58 dlvtded by Line Sg
(g) Llrm ~ m~ltiplted by 1.01 to adjust for
treated ~ater transmission losses
(h) Current use totQ1 annual water pumped at
I'bgo. res Bridges [and any other,treatment
plants serving Vtrgtnla Beach) assumed
[or illustration purposes
(I) Line 58 dlvtded by Line 62
(J) Line 63 mltlplied by 1.01 to adjust for
treated ~ter transmission losses
(k) Virginia 8each allocated O~ costs based on
OCLD value of m~tns serving Virginia Beach.
(I) Virginia Beach allocated 11 of meter and
installation O&~ costs as an allowance, for
illustration purposes, of demand metering
maintenance costs
TABLE 2 (Pa~e 1 of 2) 16-dun-93
Line
~o. Description
Raw Water Supply
I Wells
2 Western & Lake Prince Reservoirs
3 Burnt Hills Reservoir
4 In Town Reservoirs
5 Subtota 1
Raw Water Storage & Transmission
6 BW/Notteway to Lake Prince
7 In Town Reservoirs
8 Western Branch to 371h Street
9 ~43/LP to Hoores Bridges
10 Subtota 1
Raw Water Puq)ing Stations
11 Wells
12 Nottoway & Blackwater
13 In Town/Hoores Bridges
14 Western Branch Il (11
lS WB 12 / Lake Prince -
16 S tm:msd~ le
17 Subtota 1
Treatment
18 Hoores Bridges Plant
19 37th Street Plant
20 Subtotal
Treated Water Storage
21 Distribution
22 floores Bridges Plant
23 37th Street Plant
24 Subtotal
Treated Water Trans. & Dist.
25 Serving Vtrglnla Beach
26 Other
27 Subtotal
Treated Water Pumping
28 Oi sir ibut ion
29 Ho~res 6rtdges Plant
30 37th Street Plant
31 Subtotal
I~eters & Installations
Vtrginta Beach
33 Other Than Vlrglnla Beach
34 Subtotal
35 Fire Hydrants
36 Water 01st. Operations Center (m)
37 Total End of Fiscal Year
3a Total End of Previous Fiscal Year (gl
39 Average(h)
40 Working Capital (11
41 Total Rate Base
42 Rate of Return (J)
43 Annual Return (k)
WATER SERVICES CONTRACT
EXHIBIT 6
TABLE 2
ALLOCATION OF RATE BASE Fiscal Year 1995
(11 (2) (3) (4) (51 (61 (71 (8) (9)
Oevelopmnt of Rate Base
..................................................................... A1 locab le
Construction I'aJor Less FY 1995 To Virginia
Orlgln~l Accu~mlated Work In Capital Contributed Rate Vlrglnia Beach
Cost Oepreclatlon OCLO Progress Improve Plant C)C~O Base (n) Beech Portion
S $ $ $ $ $ $ $ $
190,297 90,585 99.712 0 0 25.222 74.490
625,399 240,260 385.139 0 0 63,560 321,578 321,578 130,515
525.426 61.000 464,425 1.269,184 2.770,384 9,080 4,494,913 4,494,913 2,867,082
7,354,870 1,669,779 5.685,092 1.269,184 6.429.381 625,516 12,758,141 12.683.651 6,190,545
3,335,390 1.216.185 2,119,205 5,541,000 0 106,943 7,553,262
480,279 216,312 263.968 0 522.714 15,133 771.548 771:548 492:132 (b)
408,797 117,363 291,434 110,000 627,256 136,201 892,489
22,059,712 5,353,074 16,706.639 17,830,000 15,785,960 558,929 49,763,670 49,763:670 26,955,321 (C)
26.284,179 6.902,933 19,381,246 23,481,000 16.935,930 817,206 58,980,969 50,535.218 27.447,454
69,121 46,994 22,127 0 0 1.009 21,118 - -
2,372,908 514,444 1,858.464 0 0 24,214 1,834.251
399,151 248.752 150,399 0 0 4.036 146,363 146'363' 93:358 (b)
723,622 360,784 362.837 0 1,045,427 7,062 1,401,202 560,481 303,594
6~,965 553,434 137.531 1.113,676 6,272,566 11.098 7,512.675 7,512.675 4.069,366
426.589 213,674 212,915 0 2,456,756 0 2,669.671 2,669,671 1.702,851
4,682,355 1,938,082 2,744,273 1,113,676 9,774,749 47,418 13,585,280 10,889,190 6,169,168
12.981,399 4,663,59~ 8;317,808 15.082,229 37,635,400 71,632 60,963,806 60.963.806 38.885,792 (d)
8,137,324 1,926,231 6,211.093 5,530,846 2.090.856 114,00~ 13,716.190 - -
21,118,723 6,589,821 14,528,902 20.613.075 39.726,256 185.637 74,682.596 60,963,806 38,885,792
1.724.370 415.796 1.308.574 0 0 0 1,308.574
M5:127
.
1,.~6.557 4~1,430 ~5.127 0 0 0 885.127 567'229 (e)
927,6~0 66,908 860,782 0 0 0 860.782 - -
.........................................................................................
3,998.617 944,135 3.054,483 0 0 0 3,054,483 885,127 567,229
4,340,565 629,356 3.711.208 7.156.950 1.777.227 0 12.655,385 12,655.385 12.022,616 (f)
30.194.967 6,004,722 24,190.245 32,364,011 3~,506.338 0 93,060,594 - -
1,300.825 81.533 1,219.292 0 0
411,662 385.409 46,253 1,100.000 4,390.797
260,146 230,172 29.974 0 0
1,972,632 677,114 1.295,519 I, 100,000 4,390,797
zz.107 1.207.185
4.036 5.533.014 5.533:014 3.645:805 (e)
2,018 27.956 -
18.160 6,768.156 5,533,014 3,645,805
59,527 23,497 36.030 400,(X)0 !.000.000 0 1.436.030 1,436,030 1,436,030 100~ 01reck
8.105.]31 3,126,218 4,978,914 0 2,658,997 7,062 7,630.848 -
8,164.658 3,149,715 5,014,943 400,000 3,658.997 7,062 9,066,878 1,436,030 1,436,030
7G6.148 448,138 318,010 0 0 0 318,010
- 500.000 5.070.325 0 5,570.325 666,830 633,489 (f)
106,877,715 28,953,794 79,923,921 88,007.896 124,270,000 1,701,000 290,500,817 156,248,251 96.698,127
270,000,000
95,000.000
95,949,064
951,557
96.900,620
9 76~
9,457,501
TABLE 2 (Page 2 of 2) 16-dun-g]
(a)
(b)
(c)
(d)
(e)
(g)
(h)
(~)
(k)
(1)
(.)
(n)
(o)
WATER SERVXCES CONTRACT
Allocated to Virginia Beach on Safe Yteld basis [see N. ote
Virginia Beach - 48.5 / (79 - 8 + 48 5) (°q~.59%
Allotted ,o Virgini, Beach on Pext.~ Day basis (.e ,o. (o)]7~~:
Vtr0~nta BeAch - 68.25 / ~07 -
All:ted to Virginia B.~ on ~xim. ~nth basis [see
Virginia Beach - 59.8 J [~ + (1.3 ~ 8.0)] -
All=ted 'o Virginia B.ch on ~t= ~y ~,1, [see ,o,, (O)]Tg
Vlrglnta Beach - 68.25 / 107 -
Vtrgtnla Beach - gl.o / 14Z -
Dtrect Allocation to Vtrgtnta B~ as ~tually agreed
Virginia Beach - 95 ~
~su~d ~or illustration ~r~ses
Avera~ oF Lines 37 a~ 38
1~ 5 ~ent of total Virginia ~h D~nd a~ C~lty Char~es (Table
~lqhted average of t~ ~e~ed~d~t of $44.Sg2.7~X at 6 g329~ a~ the ~-95 capital ~pe~ltures of $2)2.277.B96
assu~ to be debt financed at B 0~) Is ~ual to 7 81~ The Rate o~ Return ts c~lcul~ted as 7 Bl~ mlttplied by I 25.
or 9 76~
LI~ 4~ ~ltlplled by Line 42
40~ of ~stern Br~h Pu~ S~tlon II all.able to Vlr~tnla
~ter Dist. ~rattons ~nter all,able to Vl~lnta ~ch based on value of mlns se~lng Virginia Beach.
I~lude% ~LD plant ~pltalized as of cur~nt fts~l )ear. const~ctton ~rk tn p~g~ss, a~ cur~nt y~r's initiated
capl~l t~r~e~nts, but ~clu~s ~D contributed plant
All,itoh calculations ~s~ on ~ntract tl~ (In ~). ~tually ~greed esttmt~ losses ~t subJ~t to
~liltles Oestgn limits ~e~ k~n or estlmted If un~n
Location Est Losses Avg Day Pex Penth ~x Day
VA 8each Input 0 0% 50 O0
Raw Water Trans. 30~ 48.50
Raw Water P Plant 80~ 46 O0 59 80
Treated Water P Plant 9.0~ 45 50 68 25
Treated Water P Peters 10 0% 45.00 M.50 67 50
NorfOlk ~lfe Yleld
- Total Supply - 7g O0
In Town Reservoirs - 8 O0
Raw Water Ptpellne -
Plant serving VA Beach -
Pex Hour Notes
Contract Allocation Capacity
gl 00 Contract Allocation Capacities
gO OO Contract Limits
100.00
]07 O0
Engineering Estimate
Engineering Estimate
Oeslgn Capacity Estimate
142.00 Estimated design capacities
ttoores Brt~es WTP
TABLE 3 (Page I of 2)
Line
No Descr lpt ion
RAW WATER SUPPLY
Wells
2 Western & Lake Prince Reservoirs
3 Burnt Hills Reservoir
4 In Town Reservoirs
RAW WATER STORAGE AJ<D TRANS.
5 BW/Nottoway to Lake Prince
6 In Town Reservoirs
7 Western Branch to 371h Street
8 WB/LP to Hoores Bridges
RAW WATER PU~ING STATIONS
9 Wells
10 Nottoway & Blackwater
11 In Town/Hoores Bridges
12 Western Branch I1 (J)
13 14) 12 / Lake Prince - ~
I4 Slaonsdale
TREATMENT
15 Hoores Bridges Plant
16 371h Street Plant
TREATED WATER STORAGE
17 Distribution
18 Hoores Bridges Plant
19 371h Street Plant
TREATED WATER TR,ad(S & OIST
20 Serving Virginia Beach
21 Serving Others
TREATED WATER PUHPING
22 O I str tbut ion
23 Hoores Bridges Plant
24 371h Street Plant
METERS
25 Virginia Beach
26 Other Than Virginia Beach
27 FIRE HYDRANTS
28 WATER DIST. O~ERATIONS CENTER (k)
Subtotal
RAW WATER SUPPLY
30 Wells
31 Western & Lake Prtnce Reservoirs
32 Burnt Htlls Reservoir
33 In Town Reservoirs
RAW WATER STORAGE ANO TRANS.
34 BW/Nottoway to Lake Prince
3S In Town Reservoirs
36 Western Branch to 371h Street
37 WD/LP to Hoores Bridges
RAW WATER PUHPING STATIONS
Wells
39 Nottoway & Blackwater
40 In Town/Hoores Bridges
41 Western Branch Il (J)
42 k~ 12 / Lake Prince -
43 Stmonsdale
TREATHENT
44 Hoores Bridges Plant
45 371h Street Plant
TREATED WATER STOILAGE
46 Distribution
47 Hoores Bridges Plant
48 371h Street Plant
TREATED WATER TRANS. & 01ST
49 Serving Virginia Beach
50 Serving Others
TREATED WATER P~ING
5% Otstrtbutton
52 Hoores Bridges Plant
53 371h Street Plant
HETERS
54 Virginia Beach
SS Other Than Virginia Beach
56 FIRE HYDRANTS
57 WATER DIST. OPERATIONS CENTER (k)
58 Subtotal
59 TOTAL
WATER SERVICES CONTRACT %6-Jun-93
EXHIBIT B
TABLE 3
ALLOCATION OF DEPRECIATION EXPENSE
Fiscal Year 1995
(1) (2) (3) (4)
Annual Allocable
Original Composite Annual To Virginia
Cost Depr Depreciation Virginia Beach
Less Land Rate (gl Expense (ti Beach Portion
$ ~ $ $ $
Fiscal Year 1989
]90,295 1.77% 3,372
.
3,997,813 O 86% 34,543 34'543
477,596 0 79% 3,764 3,764
70,525 % 05% 741 741
3,326,641 I 07% 35,520
.
463,940 1.151 5,329 $'329
373.763 0 49% 1,849
.
21,202.857 1.15% 242.993 242'993
69,120 3 29% 2,271 -
2,368,090 2 84% 67.291
.
399,145 I 88% 7,499 7'499
723,611 2 84% 20,548 8,219
690.955 I 49% 10,276 10,276
397,116 2.59% 10,305 10,305
12.970.954 2 32% 301,196 301.196
8,130.728 I 58% 128.695 -
1.718,224 2 81% 48.315
.
1,346,538 2 08% 28,024 28'024
927,677 1.53% 14,173 -
4,340,503 I 15% 49,858 49.858
30,194,540 I 19% 359,206 -
·
,ii.650 I 85% ~.~Ol 7:~01 ,:871 (,)
2~. 142 2 80% 7,277 - -
59,527 2 98% ],776 1.776
8.1o5.oi6 2 55% 207.o12 -
766.137 2 60% 19.934 - -
- o (fl
· 58% 1,658,36S 712.123 436,503
105,281.921 I
3,65~,997
3,78~.568
5.~41,000
522.714
737,258
33,615.960
29~,427
7,386.242
606,758
52,217,629
7,621,702
8,944,177
64,070,349
5.49~,797
1.400,000
2,658,997
5,52~,325
204,077,896
309,359.817
FY 1990-94 Capital Improvements (hi
1,528
473
3:399 (bi
I31:62~ (c)
4,452
5,566
6,573
I92.118 (d)
.
17:959 (e)
.
47.365 (fi
o
1,776 100% Direct
!.67% 92.535
].671 8.729 8:729 s:~ (bi
i 67% 12.312
1.671 501.387 58I:387 304:O84 (c)
. .
o
2 ,o, is.169 Is. I69 9.67s
i67, ,72.o34 B72.o34 s58.22B
I 25%
1
. .
- - o (el
o .
111.802 111,802 106,212 (f)
800,879
2 50% ]37:270 I37:270 87:969 Ce)
o
2 5O%
2
2 50~
35.OOO 35,000 35.0OO 100% Direct
66.47S
i38:008 16:s2I 15:695
3,245.410 2,020,008 1,261,026
TABLE 3 (Page 2 of 2) WATER SERVZCES CONTRACT 16-Junog3
NOTES.
(al Allocated
(b) Allocated
(c) Allocated
(d) Allocated
(el Allocated
(fl Otrect A1
to Vtrgtnta Beach on Safe Yield basts [see Note (1)].
Virginia Beach - 48.5 / (79 - 8 + 48.5) · 40.5g%
to Virglnia Beach on I~xlmum Oay basis [see Note (1)]
Virginia Beach - 68.25 / 107 - 63.79~
to Vlrgtnla Beach on ~aximumHonth basis [see Note (1)].
Vtrgtnia Beach - 59.8 / [%00 + (Z.3 * 8 0)] - 54
to Vtrglnla Beach on Raximum Oay basis [see Note (1)]
Virginia Beach - 68.25 / 107 - 63 79%
to Virginia Beach on ~aximum Hour basis [see Note (1)]
Virglnia Beach · gl 0 / 142 - 64 08~
location to Virginia Beach as mutually agreed
Virginia Beach - 9S 00%
(gl The coq)ostte depreciation rate ts dertved from detailed depreciation rate schedules of the uttllty In actual application
tn the future, detailed Individual depreciation rates will be utilized
(h) Includes plant assets capitalized as of current ftscal year but excludes construction work in progress.
(1) Net of contribution depreciation
(J) 40% of Western Branch Pump Station I! allocable to Virginia Beach
(k) Water Dist. Operations Center allocable to VIrglnta Beach based on value of mains servtng Virginia Beach.
(1) Allocation calculations based on Contract flows (in m~d). mutually agreed estimated losses not subject to change, and
facilities design limits where known or estimated if unknown
Location Est Losses Avg 0ay ~ax ~nth
VA Beach Input 00~ 50 OD
Raw Water Trans. 3 O% 48.50
Raw Water P Plant 8 0% 46 OD 59 80
Treated Water P Plant 90~ 45.50
Treated Water P Peters lO 0% 45 O0 58 50
Norfolk Safe Yield
- Total Supply 79 OD
- ]n Town Reservoirs 8 OD
Raw Water Pipallne lO0 O0
Plant serving VA Beach
~ax Day ~ax Hour Notes
68.25
67.50
107 O0
Contract Allocation Capacity
9! O0 Contract Allocation Capacities
90 O0 Contract Limits
Engineering Estimate
Engineering Estimate
Oestgn Capacity Estimate
142 O0 Estimated destgn capacities $
Hoores Bridges WTP
TABLE 4 (Page I of 1) 16-Jun-93
Line
NO.
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 4
CHARGES TO VIRGINIA BEACH
F~scal Year 1995
Fixed Capacity Charge:
Annual Return on Rate Base (Table 2)
Annual Depreciation Expense (Table 3)
Total Annual Fixed Capacity Charge
Monthly Payment
$9,457,501
1,697.579
$11.155,079
$929.590
Demand Charge:
Maximum Hour Demand of the Year (al
Unit Demand Charge {Table 1}
Total Annual Demand Charge
Honthly Payment
77.0
$57,437
$4,422,649
$368.554
Conmodtty Charge:
10
11
12
13
Charge per Thousand Gallons of Use (Table 1)
Total Annual Comnodity Charge:
14,052,000 Thousand Gallons {b) @ $0.2270
Interest on Working Capital (c)
Net Annual Cost (Lines 3, 7, 10, and 11)
Average Unit Cost {d}
$0.2270
$3,189,804
($23,789)
$18,743,743
$1.333g
NOTES:
(al
The coincidental maximum hourly demand of Virginia Beach at the meters.
net of deliveries to the Navy w~thln V~rg~n~a Beach, ~s conl~uted below.
Table 6 provides supplemental information supporting the computation of
Virginia Beach's demand and the calculation of the Demand Charge.
Coincidental maximum hourly demand measured
at all V~rg~n~a Beach metering points -
80.0 mgd
Less coincidental maximum hourly demand of Norfolk
Wholesale Customers ~n V~rg~n~a Beach x 1.04:
2.8g {Assumed) x 1.04 -
3.0 mgd
Virginia Beach maximum hour demand at the meters -
77.0 ~d
(b) Net of deliveries to the Navy within Virginia Beach.
(c)
Annual interest rate (assumed to be 5.0 percent for this
illustration) on Working Capital t~mes 50 percent of
Working Capital {Table 2, L~ne 40).
(d) Line 12 divided by metered volume of 14,052,000 thousand gallons.
TABLE 5 (Page 1 of 1) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 5
EXAJ4PLE APPLICATION OF SUBPARAGRAPH 6.3
ADJUSTHENT OF TOTAL BIENNIAL CHARGES TO VIRGINIA BEACH
Line
NO.
1
2
3
4
5
6
7
8
9
10
11
Co~uted Costs (FY 1995):
Annual Fixed Capacity Charge (Table 4)
Annual Demand Charge {Table 4)
Con~odlty Charge:
14,052,000 Thousand Gallons {a} @ $0.2270 (Table 4)
Total Annual Cost {b)
Interest on Working Capital {c)
Net Annual Cost
Total Billings Rendered for Service During the Year {d}
Overcharge {Undercharge)
Net Overcharge {Undercharge)
tlonthly True-up Payment Due (el
Average Unit Cost {fl
FY 1994 (d}
$10,758,572
3,817,652
2,952.867
$17,529,091
(lg.600)
$17,509,491
$18o300,000
$790,509
-
$1.2460
FY 1995
$11,155,079
4,422,649
3,189,804
$18.767,532
{23.789)
$18.743,743
$18,300.000
($443,743)
346,766
$28.897
$1.3339
NOTES
(b)
Net of deliveries to the Navy within Virginia Beach.
Does not include additional costs and charges which may be
appropriate, but not reflected in this illustration.
{c) Annual interest rate (assumed to be 5.0 percent for this
illustration) on Working Capital times 50 percent of
Working Capital {Table 2. Line 40).
{d) Assumed for illustration purposes.
{el Net Overcharge {Undercharge) divided by 12 months would
be applied in FY 1997.
{f} Line 6 d~vided by metered volume of 14,052.000 thousand gallons.
TABLE 6 (Page 1 of 2) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 6
SUPPLEMENTAL INFORMATION ON THE APPLICATION OF SUBPARAGRAPH 6.2.2
The coincidental maximum hourly demand of Virginia Beach at the Norfolk
treatment plants providing service to Virginia Beach is:
Coincidental maximum hourly demand measured at
all Virginia Beach metering points times 1.01
80.00 (Assumed) x 1.01 80.80 mgd
Less coincidental maximum hourly demand of
Norfolk Wholesale Customers in Virginia
Beach x 1.05
2.89 (Assumed) x 1.05 3.03 mgd
Virginia Beach maximum hourly demand at
treatment plants 77.77 mgd
The maximum hourly demand of Norfolk and its other customers at Norfolk
treatment plants providing service to Virginia Beach is determined as:
Total pumpage rate of Norfolk water treatment
plants in the hour in which Norfolk's and its
other customers' use is greatest - Assume
107.60 mgd
Less coincidental hourly demand at all
Virginia Beach metering points x 1.01 in the
same hour in which Norfolk's and zts other
customers' use is greatest - Assume
45.96 mgd
Norfolk's and its other customers' maximum
hourly demand at treatment plants
61.64 mgd
Total non-coincidental maximum hourly demand at the Norfolk treatment
plants providing servzce to Virginia Beach:
Norfolk and its other customers
Virginia Beach
Norfolk Wholesale Customers in V~rginia Beach
61.64 mgd
77.77 mgd
3.03 mgd
Current Use Demand 142.44 mgd
TABLE 6 (Page 2 of 2) 16-Jun-93
Assume that, in fiscal year 1995, the demand portion of total operation and
maintenance expense is $8,100,216 as shown in Table 1, Line 58, Column 8.
The Virginia Beach demand charge at the meters is:
($8,100,216)
(1.01) = $57,436 per mgd
142.44 mgd
Virginia Beach maximum hourly demand at the metering points:
77.77 mgd
- 77.00 mgd
1.01
Annual Demand Charge to Virginia Beach
77.00 mgd x $57,436 per mgd - $4,422,591
Monthly Payment ~ $368,549
TABLE 7 (Page 1 of 1) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 7
EXAMPLE APPLICATION OF SUBPARAGRAPH 6.2.3
Assume that in fiscal year 2005 Virginia Beach maximum hourly demand was
95 mgd.
Demand to which supplemental demand charge would apply equals 95 mgd minus
90 mgd, or 5 mgd.
The total supplemental demand charge would be 5 mgd at two times the unit
demand charge developed pursuant to subparagraph 6.2.2, the determination
of which is illustrated on Exhibit B, Table 1, Line 61.
TABLE 8 (Page 1 of 1) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 8
EXAMPLE APPLICATION OF SUBPARAGRAPH 7.2
Assume that in fiscal year 1997 Virginia Beach maximum hourly demand was
75 mgd. Also assume that in fiscal year 1998, due to having acquired
additional treated water supplies as referred to in subparagraph 7.1,
Virginia Beach reduces its maximum hourly demand to 60 mgd and remains at
that level through fiscal year 2005. Assume that in fiscal year 2005
Virginia Beach gives notice of a desire to increase its maximum hour
demand in 2007 to 75 mgd (an increase in excess of 10Z). Then in fiscal
year 2006 Virginia Beach must pay the demand charge determined pursuant
to subparagraph 6.2.2 applied to the 75 mgd specified demand but shall not
increase its maximum hourly demand to the 75 mgd level until fiscal year
2007. The maximum hourly demand could increase to 66.0 mgd (ll0Z x 60.0
mgd) in fiscal year 2006.
TABLE 9 (Page 1 of 1) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 9
EXAMPLE APPLICATION OF SUBPARAGRAPH 14.2
Assume that in fiscal year 2005 Virginia Beach treated water safe yield is
45.5 mgd. Then it is entitled to withdraw at its treated water delivery
meters a total of 45 mgd times 365 days, or 16,425,000 thousand gallons
during the year. Also assume that Vzrginia Beach actually withdrew
17,000,000 thousand gallons during the year, or an excess of 575,000
thousand gallons. It then exceeded its allowable withdrawal by 575,000
thousand gallons.
In addition to all other charges provided for in the contract for wheeling
and treating water, Virginia Beach would pay an additional amount of $4.00
times 575,000 thousand gallons times [1 +(0.05 x 15)] equals $4,025,000.
TABLE 10 (PaEe 1 of 1) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 10
EXAMPLE APPLICATION OF SUBPARAGRAPH 14.4
Assume that in fiscal year 2005 Norfolk treated water safe yield is 71.8
mgd. Then it is entitled to withdraw from its treatment plants 71.8 mgd
times 365 days or 26,207,000 thousand gallons during the year. Also assume
that Norfolk actually withdrew 27,000,000 thousand gallons for use by
Norfolk and its customers who rely on Norfolk's treated water safe yield
during the year, or an excess of 793,000 thousand gallons.
Norfolk's compensation amount due to Virginia Beach would be $4.00 times
793,000 thousand gallons times [1 + (0.05 x 15)] equals $5,551,000.
TABLE 11 (Page 1 of 2) 16-Jun-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 11
EXAMPLE APPLICATION OF SUBPARAGRAPH 4.4
Assume that, in year 2003, Virginia Beach is unable to meet disinfection
by-product legal standards within a portion of its system and notifies
Norfolk of the fact. A subsequent consultant's report indicates that the
lowest total cost to the combined Norfolk/Virginia Beach system results in
Virginia Beach having to construct, own, operate and maintain treatment
facilities to serve the affected portion of its system.
Further assume that Virginia Beach debt f~nances $2.0 million at 8Z for
30 years to construct the required treatment facilities which come on
l~ne in 2005. Annual depreciation is determined to be $66,700. Current
year operation and maintenance expenditures (O&M) total $250,000 of which
$100,000 is assumed to be for power and chemzcal costs.
Under the terms of this agreement, Virginia Beach shall receive a credit
for the allocable portion of Virginia Beach's treatment plant costs in the
current fiscal year 2005 which is the Norfolk system's responsibility.
Virginia Beach's total treatment costs would be assigned to appropriate
Norfolk treatment cost categories constituting each Norfolk rate and charge
as follows:
Basis of Assignment
$100,000 Commodity
$150,000 Demand
$250,000 Subtotal O&M
$66,700 Depreciation
$193,330 Return (a)
$260,030 Subtotal
$510,030 Total Costs
(a) Return is computed as 0CLD plant times a
rate of return equal to 8Z times 1.25.
TABLE 11 (Page 2 of 2) 16-Jun-93
After calculation of rates and charges, Virginia Beach (VB) would receive a
credit each year for Norfolk's allocated share of Virginia Beach's costs.
Assume Virginia Beach's demands at the meters during the fiscal year, excluding
the Navy within Virginia Beach, are 40.0 mgd and 80.0 mgd for average day and
peak hour, respectively. Maximum day allocation capacity limit is 68.25 mgd.
Accordingly, the results of the recalculation are summarized as follows:
Assumed Computed Costs:
1. Annual Fixed Capacity Charge (a)
2. Plus VB's Allocated Share of VB Depreciation:
$66,700
x 68.25 mgd =
107 mgd
3. Less VB's Annual Total Depreciation
4. Plus VB's Allocated Share of VB Return:
$193,330
x 68.25 mgd -
107 mgd
5. Less VB's Annual Total Return
6. Annual Demand Charge (a)
7. Plus VB's Allocated Share of VB Demand Costs:
$15o,ooo
x 80.8 mgd =
142.44 mgd
8. Less VB's Annual Total Demand Costs
9. Commodity Charge (a)
10. Plus VB's Allocated Share of VB Commodity Costs:
$100,000
x 14,746,000 Mgal (b) =
25,995,000 Mgal
$11,155,079
42,545
(66,700)
123,316
(193,330)
$4,422,649
85,088
(150,000)
$3,189,804
56,726
11. Less VB's Annual Total Commodity Costs
(100,000)
12. Total Annual Cost
$18,565,177
13. Average Unit Cost (Line 12 / 14,746,000 Mgal)
$1.2590 /Mgal
NOTES:
(a) Computed 1995 treatment costs, for Norfolk plants servzng Virginia
Beach and allocated to Virginia Beach prior to the addition of
V~rginia Beach's treatment costs, are used as 2005 allocated costs
for illustration purposes.
(b) Mgal equals 1,000 gallons.
TABLE 12 (Pa§e 1 of 1) 16-3un-93
WATER SERVICES CONTRACT
EXHIBIT B
TABLE 12
EXAMPLE APPLICATION OF SUBPARAGRAPH 2.7
Assume the following: on July 1, 1995 the City of Norfolk is requested to
initiate the design and construction of facility improvements to transport
the Chesapeake Gaston water to "Red Top"; the design contract was executed
on September 1, 1995; construction was initiated on 3uly 1, 1996 and
completed on September 1, 1997; the bond interest rate for construction was
7.2Z; and equal monthly payments to the engineer and contractor.
Engineering
Capitalized return on engineering
During design
$150,000/2 x 1.25 x 7.2Z x 10/12 =
During construction
($150,000 + $5,625) x 1.25 x 7.2Z x 14/12
Facility construction
Capitalized return on construction
14/12 x 1.25 x 7.2Z x $975,000/2 ~
Total Payment
$150,000
$5,625
$16,341
$975,000
$51,188
$1,198,154
(Pa§e 1 of 1) 16-Jun-93
.
,
WATER SERVICES CONTRACT
EXHIBIT B
SUPPLEMENTAL NOTES
Tables 1-12 are illustrative only. Some figures were not directly
obtainable from readily available records of the City for the
purposes of the illustration. In actual application under
contract terms, actual records should be used where available and
if not directly available, sound estzmates wall be required.
During the term of the contract, situations regarding types of
costs incurred and conditions of service are lzkely to change.
The illustrations should be conszdered to be a "living" document
subject to adoustment as circumstances change.
In Table 1, power costs are broken into demand and energy portions
in anticipation that in the future purchased power may consist
both of these elements rather than following past practice in
which all power costs are energy related.
In Table 1, sludge disposal costs are, in this illustration,
assumed to be directly commodity related. If in the future, a
demand element is found to exist, a line for such an element should
be added.
In Table 2, Note (i), the calculation represents approximately 45
days operation and maintenance expense as Virginia Beach's
responsibility for working capital.
In Table 2, Note (j), system embedded debt service cost is used as
a surrogate measure of the portzon of total debt, related to
facilities used and useful in serving Virginza Beach, to be used
in the rate of return calculation. In application under contract
terms, actual records should be used where available and, if not
directly available, sound estimates will be required.
Exhibit C
Water Project Listing
.
·
.
.
.
·
·
·
·
Kempsville 54" transmission main
Design - complete
Construction - complete
Kempsville 42/36" transmission main
Design - complete
Construction - Davis Corner
segment completed
Moores Bridges Water Treatment Plant
Hydraulic Design
Moores Bridges Pumping Station ~2
Design - completed
Western Branch Pumping Station ~2
Design - estimate
Simonsdale Booster Station ~2
Design - estimate
4th Stage of 48" Raw Water Pipeline
Design - estimate
Metering & Telemetry System Improvements
Design -
Construction
Kempsville Road 42" Transmission Main
Design
$ 70,350
$ 1,650,000
$ 167,000
$ 450,000
$ 3,000,000
$ 215,557
$ 700,000
$ 500,000
$ 100,000
$ 400,000
$ 3,500,00O
$ 300,000
$ 11,052,907
Note: Assumes no facilities are required for the transmission or
pumping of Lake Gaston water to the City of Chesapeake by the
City of Norfolk within three years of start-up of the Lake Gaston
pipeline. These estimates are based on the best available
information as of this date (9-9-92) and Virginia Beach will be
advised of the actual costs as they become available.
Exhibit D
Water Project Listing
·
·
·
·
·
~
·
·
Western Branch Pumping Station ~2
Construction
Simonsdale Booster Station ~2
Construction
Kempsville Road 42/36" Treated Water Main
Construction
Moores Bridges Pumping Station
Improvements - Construction
4th Stage - 48# Main
Construction
Moores Bridges Treatment Plant
Hydraulic Improvements - Construction
Kempsville Road 42" Transmission Water
Main o Construction
Construction Contingency
Design and Construction from Exhibit C
$16,500,000
$ 3,500,000
$ 6,900,000
$ 9,300,000
$ 4,000,0O0
$38,000,000
$ 3,000,000
$10,000,000
$11,052,907
$102,252,907
Note: These estimates are based on the best available information
as of this date (9-9-92) and Virginia Beach will bwe advised of
the actual costs as they become available.
WATER SALES CONTRACT
TABLE OF CONTENTS
1.0 Definitions ........................................
1.1 Average Day Demand ............................
1.2 Books and Records .............................
1.3 Contract Allocation Capacities ................
1.4 Gaston Pipeline ................................
1.5 Gaston Water ...................................
1.6 Lake Gaston ....................................
1.7 Maximum Hour Demand ...........................
1.8 Maximum Day Demand ............................
1.9 Maximum Month Demand ..........................
1.10 Permits .......................................
1.11 Safe Yield ....................................
1.12 Surplus Water .................................
1.13 Virginia Beach Water Distribution System ......
1.14 Water Services Contract .......................
1.15 Year/Annual ...................................
2.0 Sale of Water ......................................
3.0 Delivery Points and Measurement ....................
4.0 Quality and Pressure of Water Delivered to
Virginia Beach ....................................
5.0 Standards for Virginia Beach .......................
6.0 Rates and Charges ..................................
6.1 Rates .........................................
6.2 Supplemental Demand Charge ....................
6.3 Supplemental Water Charge .....................
6.4 Biennial Adjustment of Rates ..................
7.0 Payment and Billing ................................
8.0 Temporary Curtailment ..............................
9.0 Force Majeure and Hold Harmless ....................
10.0 Operations .........................................
11.0 Term of Contract ...................................
12.0 Termination by Norfolk .............................
13.0 Termination by Virginia Beach ......................
14.0 General Terms and Conditions .......................
14.1 Books and Records ............................
14.2 Waivers ......................................
14.3 Compensation .................................
14.4 No Verbal Agreement ..........................
14.5 Assignment ................................
14.6 Dispute Resolution .................... i .... ii
14.7 Venue ........................................
14.8 Contract Interpretation ......................
14.9 Captions .....................................
14.10 Notices ......................................
14.11 Binding on Successors ........................
14.12 Amendment ....................................
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WATER SALES CONTRACT
THIS contract, made as of this 14th day of July, 1993, by
and between the CITY OF NORFOLK, a municipal corporation of the
Commonwealth of Virginia, hereinafter referred to as "Norfolk"
and the CITY OF VIRGINIA BEACH, a municipal corporation of the
Commonwealth of Virginia, hereinafter referred to as "Virginia
Beach";
WITNESSETH:
WHEREAS Norfolk and Virginia Beach have entered into an
agreement dated the 14th day of July, 1993, for the wheeling and
treating by Norfolk of raw water transported by Virginia Beach
from Lake Gaston; and
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WHEREAS Norfolk is prohibited by its City Charter from the
sale of any but surplus water; and
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WHEREAS Virginia Beach desires to purchase water from the
surplus supply of Norfolk; and
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WHEREAS Norfolk's water system currently has a surplus
supply, over the amount required to supply its own inhabitants
and to meet its obligations under the other agreements into which
Norfolk has entered for the sale of surplus water; and
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WHEREAS it is deemed to be of mutual benefit to the parties
for Norfolk to sell a portion of its surplus water to Virginia
Beach;
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NOW, THEREFORE, for and in consideration of the premises and
the mutual agreements herein contained and other good and
valuable consideration, Norfolk and Virginia Beach do hereby
covenant and agree as follows:
28 1.0 Definitions.
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1.1 "Average day demand" means the total amount of treated
water delivered by Norfolk to Virginia Beach during a given year
divided by the number of days between the annual meter readings,
usually 365. The initial permissible annual average day demand
under this contract shall be 30 million gallons per day (mgd) at
the delivery points provided in paragraph 3.
35
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37
1.2 "Books and records" means the audited financial reports
and statements of the City of Norfolk and all records of Virginia
Beach related to water usage.
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1.3 "Contract allocation capacities" means, for purposes of
Virginia Beach's cost allocation calculations and rate
determinations only, a maximum hour capacity of 60.7 mgd, a
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42
maximum day capacity of 45.5 mgd, and a maximum month capacity of
39.8 mgd.
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1.4 "Gaston pipeline" means the water pipeline that extends
from Lake Gaston discharging to Norfolk's water facilities,
including associated intake, pumping and metering facilities
constructed, owned, operated, and maintained by Virginia Beach.
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1.5 "Gaston water" means treatable raw water (i.e., capable
of being rendered potable according to all standards mandated by
federal or state law, rule or regulation by any or all treatment
processes required by the Norfolk Utilities Department to render
Norfolk's raw water potable under the same standards) provided by
Virginia Beach from Lake Gaston to Norfolk.
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1.6 "Lake Gaston" means the lake located partially in
Brunswick County, Virginia, from which Virginia Beach is entitled
to draw water for delivery through the Gaston pipeline.
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1.7 "Maximum hour demand" means the greatest rate of
treated water delivered by Norfolk to Virginia Beach at the
delivery points provided for in paragraph 3 over a one (1) hour
period on any given day of the year. The maximum permissible
maximum hour demand under this contract shall be 60 mgd at the
delivery points provided in paragraph 3.
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1.8 "Maximum day demand" means the greatest rate of treated
water delivered by Norfolk to Virginia Beach at the delivery
points provided for in paragraph 3 over a 24-hour period,
beginning at midnight, in a given year. The maximum permissible
maximum day demand under this contract shall be 45 mgd, at the
delivery points provided in paragraph 3.
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1.9 "Maximum month demand" means the greatest rate of
treated water delivered by Norfolk to Virginia Beach at the
delivery points provided for in paragraph 3 during a calendar
month in a given year. The maximum permissible maximum month
demand under this contract, expressed on a daily basis, according
to the number of calendar days in a given month, shall be 39 mgd,
at the delivery points provided in paragraph 3.
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1.10 "Permits" means the permits granted to Virginia Beach
by the U.S. Army Corps of Engineers and others (including, but
not limited to federal, state, regional and local governing
and/or permitting bodies and/or agencies) allowing construction
and operation of the Gaston pipeline and similar authorizations
that may replace or augment the permits, and all other permits,
certifications, and other authorizations to Norfolk allowing
construction, operation, maintenance, and expansion of the
Norfolk or Virginia Beach water systems that are necessary to
render performance under this contract.
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1.11 "Safe yield" means the maximum sustainable rate of
water supply which is available during known drought conditions.
For purposes of this contract, Norfolk's safe yield shall be the
maximum sustainable rate of water supply which is available to
Norfolk from its water supply that is owned and freely-alienable
by Norfolk. Except for rate determinations, water supplied by a
third party and wheeled, untreated, shall not be included in
Norfolk's safe yield. The current raw water safe yield for
Norfolk is approximately 79 mgd. Norfolk agrees to review and,
if necessary, adjust its safe yield in the event of a change in
raw water sources, withdrawal capacity or permits or if future
significant drought conditions provide an additional data base
for evaluation.
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1.12 "Surplus water" means the difference between the safe
yield of the Norfolk water system, as expressed in mgd of treated
water after adjusting for losses, and the total of (i) the amount
of treated water required to supply the persons and entities in
Norfolk and (ii) the amount of treated water required by
Norfolk's United States government customers.
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1.13 "Virginia Beach water distribution system" means the
system of water facilities located wholly in Virginia Beach
subsequent to ~etered delivery points provided for in paragraph
3.
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1.14 "Water Services Contract" means the water services
contract between the City of Norfolk and City of Virginia Beach
dated July 14, 1993, providing for the wheeling and treating of
Gaston water.
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1.15 "Year" means a fiscal year ending on the final day of
the fiscal year adopted by the Norfolk Utilities Department,
unless otherwise specified within this contract. "Annual" means
based on this fiscal year.
116 2.0 Sale of water.
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2.1 Norfolk agrees to sell and deliver to Virginia Beach an
annual average day demand of 30 mgd of Norfolk's treated surplus
water. It is expressly understood and agreed by both parties
that if, in the opinion of Norfolk, using generally accepted
engineering and water management practices, the surplus water
supply available to Norfolk is less than that required to meet
the obligation specified in this paragraph, the amount of water
which Norfolk is obligated to sell and deliver to Virginia Beach
and to the City of Chesapeake (currently 3.75 mgd maximum day
demand) shall be reduced so that the sale of surplus water to
Virginia Beach and the City of Chesapeake shall not limit, in any
way, the availability of water for persons and entities in
Norfolk and Norfolk's United States government customers. There
will be no reduction in the surplus water sold and delivered to
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Virginia Beach under this contract except for (a) increased
demand by persons and entities in Norfolk and Norfolk's United
States government customers and (b) reduction in safe yield. In
the event of a reduction in surplus water, Norfolk agrees to
allocate the surplus water on an equal percentage basis, based on
usage of the then current firm surplus water contract customers
(other than persons and entities in Norfolk and Norfolk's United
States government customers) in proportion to such customers
usage during the immediately preceding year. Norfolk shall
notify Virginia Beach, in writing, as soon as practicable in
advance of a reduction in the amount of surplus water it may
receive, which notice shall contain the following: the amount of
surplus water Virginia Beach may receive; the revised contract
allocation capacities; the revised maximum hour demand; the
revised maximum day demand and the revised maximum month demand.
Norfolk agrees that any reduction in surplus water, in response
to (a) and (b) above shall not exceed the actual amount of
increased use or reduction in safe yield. When possible, Norfolk
will provide appropriate notice and set the effective date of
reduction to coincide with the beginning of a year. Virginia
Beach agrees that, upon receiving written notice from Norfolk, it
shall, within 60 days, initiate adequate conservation measures to
reduce its treated water demands to the average day, maximum
·
month, maximum day and maximum hour limitations set forth in the
notice provided by Norfolk.
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Should Norfolk have more than 30 mgd of surplus water
available, Norfolk will offer such increased surplus water to
Virginia Beach for the remainder of this contract and subject to
all of the terms and provisions hereof. If Virginia Beach does
not accept such increased surplus water within 60 days after
receipt of written notice thereof, then Norfolk shall be entitled
to dispose of such increased surplus as it sees fit.
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2.2 The delivery rates at which Norfolk is obligated to
deliver treated surplus water to Virginia Beach under this
contract (measured at the delivery points provided for in
paragraph 3) are as follows: annual average day rate of 30 mgd,
maximum month rate of 39 mgd, maximum day rate of 45 mgd, and
maximum hour rate of 60 mgd.
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2.3 Norfolk shall exercise due care and shall adhere to
generally-accepted engineering and water management practices in
the planning, construction, operation and maintenance of its
water system in order to meet its obligations under this
contract. Except as provided in the last paragraph of
subparagraph 2.1, Norfolk shall not serve new raw or treated
water wholesale customers or increase sales to existing wholesale
customers other than Norfolk's United States government customers
until the expiration of this contract or until the Gaston
pipeline is operational, whichever first occurs. If the Gaston
pipeline becomes fully operational before the end of the term of
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this contract, these restrictions shall apply to treated water
customers until Virginia Beach contract capacities are in place
under the Water Services Contract.
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2.4 Virginia Beach has access to certain wells (the
"Wells") from which it may withdraw ground water for supplemental
drought relief provided water use restrictions have been
implemented pursuant to a water conservation and management plan.
In the event that the Governor of the Commonwealth of Virginia
should declare, pursuant to Chapter 3.2 of Title 44 of the Code
of Virginia, that a state emergency or a state of emergency
exists as a result of a natural disaster or a man-made disaster,
Norfolk agrees to receive and store water provided by Virginia
Beach to Norfolk's reservoir system from the Wells, to transport
the water through Norfolk's raw water system, treat the water,
provide clear well storage, pump and transport the treated water
to the metered points of delivery for the Virginia Beach water
distribution system, and perform all related acts to provide this
treated water to Virginia Beach in the manner set forth in this
contract. Virginia Beach agrees to pay for these services in the
manner set forth in paragraph 6 of this contract, including,
specifically, those incremental increased treatment costs,
incurred because of the quality of Well water, except that there
shall be no wa~er charge. In the event that the use of water
from the Wells causes or will cause Norfolk or Virginia Beach to
be out of compliance with any Federally mandated water quality
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208
standard, then Virginia Beach and Norfolk will use their best
efforts in good faith and all reasonable legal means to obtain a
variance or other appropriate temporary waiver of compliance
prior to discontinuing the use of water from the Wells.
209 3.0 Delivery Points and Measurement.
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213
3.1 Norfolk agrees to deliver treated surplus water to
Virginia Beach in accordance with this contract at delivery
points as set forth in Exhibit A attached hereto, and at such
additional points as may be mutually agreed upon by the parties.
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219
3.2 Unless otherwise agreed by both parties, Norfolk shall
construct, own and maintain treated water meter vaults, meters,
and all associated facilities located at the delivery points.
Virginia Beach understands that Norfolk may have redundant meters
at certain locations, but will operate only one (1) set of meters
at a time.
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226
3.3 It is anticipated that, during the term of this
contract, new meters will be installed such that all treated
water meters and associated equipment will be capable of
indicating, totalizing and recording total flow, as well as
maximum day an~ maximum hour rates of flow and their times of
occurrence. Virginia Beach agrees that all of the actual cost of
such treated water metering facilities attributable to service to
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Virginia Beach, including direct costs and applicable overheads
for engineering, design, telemetry equipment, radio, telephone
and electric service, shall be assigned to the Virginia Beach
rate base. Norfolk agrees to design, construct and maintain all
metering facilities in a prudent and cost effective manner. All
metering facilities used to measure Virginia Beach usage shall be
designed by engineers designated by Norfolk who are selected from
a list of at least three (3) engineers who are satisfactory to
Virginia Beach and Norfolk. Each master meter shall be tested at
least once every two (2) years.
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244
It is further understood and agreed that, until the new
meters provided for in this subparagraph are installed, estimates
of maximum hourly and daily demand shall be made using the
equipment available at the time of estimation and the best
estimating techniques available to the parties. Such estimates
shall be used as if they were metered demands; provided, however,
that no default shall be declared and no penalty shall be imposed
based on estimated demand for usage.
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249
3.4 Virginia Beach agrees to provide Norfolk's employees
and agents ingress and egress across property owned by Virginia
Beach to all of Norfolk's premises inside Virginia Beach's
boundaries to install, operate, inspect, test, and maintain
pipelines, pump stations, and facilities, and to read meters
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251
owned or maintained by Norfolk within the city limits of Virginia
Beach or on property controlled by Virginia Beach.
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273
3.5 It shall be the duty of each party to this contract to
notify the other party in the event that any meter is registering
inaccurately or malfunctioning, so that any such meter can be
promptly tested and repaired or replaced. Each treated water
meter shall be operated and maintained so as to record within the
accuracy prescribed by current American Water Works Association
standards applicable to the type of meter in service. Each party
will give the other seven (7) calendar days' notice prior to any
routine or independent meter test so that each party may arrange
to have a representative present. If said representative is not
present at the time set in such notice, the testing and repair
may, notwithstanding any other provision of this subparagraph,
proceed in the absence of said representative. Either party has
the right to request a meter be tested with the other party
having the right to witness such test. If Virginia Beach
requires that an independent testing service be used, it shall
pay the cost of said testing service if the meter is found to be
within the above stipulated accuracy limits. If the meter is
found to be registering outside of those limits, Norfolk shall
pay the cost of said testing service.
3.6 Virginia Beach may, at its own expense, install
telemetering equipment at Norfolk's metering facilities or at
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277
Norfolk's water treatment plants providing service to Virginia
Beach which will allow Virginia Beach to receive "real time data"
from Norfolk's metering equipment so long as such telemetering
equipment does not interfere with Norfolk's operation in any way.
278 4.0 Quality and Pressure of Water Delivered to Virqinia Beach.
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283
4.1 Norfolk shall provide the necessary water treatment
facilities, operational practices and related services to ensure
that the quality of treated water delivered to Virginia Beach
pursuant to this contract shall meet all potable water standards
mandated by federal and state law, rule or regulation.
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295
4.2 Norfolk shall optimize its treatment facilities,
operational practices and chemical feed rates to minimize, to the
extent practicable, any unregulated water quality problems. If
notified by Virginia Beach of unregulated water quality problems
in its system, not attributable to the Virginia Beach
distribution system or the operation thereof, Norfolk shall
adjust its treatment practices, operational practices, and
chemical feeds to attempt, to the extent practicable, to
alleviate said water quality problems; provided, however, Norfolk
shall not, pursuant to this subparagraph 4.2, be required to
construct any new facilities or reconfigure any existing
facilities.
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300
4.3 Except as provided in subparagraphs 4.2 and 4.4,
Virginia Beach shall bear the sole responsibility for maintaining
water quality beyond the delivery points provided for in
subparagraph 3.1 herein within the Virginia Beach water
distribution system.
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319
320
4.4 In the event Virginia Beach will be unable to meet,
within its water distribution system, any legal and regulatory
disinfection by-product standards adopted by the United States
Environmental Protection Agency or the Commonwealth of Virginia,
depending solely on the treatment then provided by Norfolk,
Virginia Beach shall notify Norfolk of such fact. Thereafter,
with Norfolk's concurrence, which shall not be unreasonably
withheld, Norfolk and Virginia Beach shall select and Norfolk
shall employ a consultant or consultants. Such consultant or
consultants shall determine the best, most reasonable way to meet
legal and regulatory disinfection by-product standards applicable
to Virginia Beach. If the study shows that the best, most
reasonable way to meet the legal and regulatory disinfection by-
product standards is for Virginia Beach to change its usage
patterns and/or to provide modifications to its transmission,
storage and/or pumping facilities within the Virginia Beach water
distribution system, then Virginia Beach shall do so at its sole
expense. If t~e study shows that the best, most reasonable way
to meet the legal and regulatory disinfection by-product
standards is to provide localized treatment within the Virginia
- 14
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
Beach water distribution system, then Virginia Beach shall
construct, own, operate and maintain such facilities. If the
study shows that the best, most reasonable way for Virginia Beach
to meet the legal and regulatory disinfection by-product
standards is for part or all water in the Norfolk water system to
receive additional treatment, Norfolk shall provide the
additional treatment with the cost of such treatment being
allocated as any other treatment cost. In the event Virginia
Beach constructs, owns, operates and maintains such additional
treatment facilities, the reasonable costs of such facilities,
including return on rate base, depreciation and operation and
maintenance expense, shall be designated by the same cost
categories as provided in paragraph 6.0 which Norfolk uses to
determine the amount of the annual fixed capacity charge, demand
charge and commodity charge for Virginia Beach based on Norfolk's
costs. Virginia Beach shall allocate Virginia Beach's treatment
cQsts between Virginia Beach and Norfolk as treatment costs of
facilities providing service to Virginia Beach in the manner
provided in paragraph 6.0. Virginia Beach shall receive a credit
on Norfolk's billings to Virginia Beach each year for Norfolk's
share of Virginia Beach's treatment costs. Norfolk's net annual
charges to Virginia Beach shall consist of (1) the appropriate
charges by cost category developed by Norfolk for Virginia Beach
based on Norfolk's costs as provided in paragraph 6.0 plus (2)
Virginia Beach's share of Virginia Beach's treatment costs by
cost category less (3) the total of Virginia Beach's treatment
- 15 -
347
348
349
350
351
352
costs by cost category. An example application of this provision
is illustrated in Table 9 of Exhibit B. The economic criteria
used in determining the "best, most reasonable way to meet the
legal and regulatory disinfection by-product standards" shall be
the lowest total cost to the combined Norfolk/Virginia Beach
systems.
353
354
355
356
357
358
359
360
361
362
363
364
365
Notwithstanding any of the foregoing provisions of this
subparagraph 4.4, if Virginia Beach without Norfolk's consent,
which consent shall not be unreasonably withheld, introduces into
its treated water distribution system any foreign water, i.e.,
any water other than that treated by Norfolk, it shall be
Virginia Beach's sole obligation to meet any such legal and
regulatory disinfection by-product standards within the Virginia
Beach water distribution system; but, nevertheless, Virginia
Beach will continue to be responsible for the payment to Norfolk
for any costs incurred by Norfolk pursuant to this subparagraph
4.4. Norfolk shall not be relieved of its responsibility to
continue to operate the facilities then constructed to meet
disinfection by-product standards.
366
367
368
369
370
4.5 The pressure of treated water delivered to Virginia
Beach at the delivery points provided for in subparagraph 3.1
herein shall b~ nominally 60 pounds per square inch under normal
and reasonably foreseeable operating conditions. Virginia Beach
shall bear the sole responsibility for maintaining water pressure
- 16 -
371
372
beyond the delivery points provided for in subparagraph 3.1
herein and within its distribution system.
373 5.0 Standards for Virginia Beach.
374
375
376
5.1 Virginia Beach shall operate the Virginia Beach water
distribution system so as to prevent back flow to the Norfolk
water system under normal operating conditions.
377
378
379
380
5.2 Each city reserves the right to make inspections of the
other's facilities which may affect the quality or pressure of
water or the operation of the respective water systems upon two
(2) working days' notice.
381 6.0 Rates and Charges.
382 6.1 Rates.
383
384
385
386
387
388
389
390
Rates for the surplus water sold pursuant to this
contract shall be the sum of a water charge, fixed capacity
charge, demand charge, commodity charge and other charges
provided for in this contract. The water charge shall be $.60
per 1,000 gallons of surplus water reserved for the 1994 fiscal
year, $.56 per°l,000 gallons of surplus water reserved for the
1995 fiscal year, $.52 per 1,000 gallons of surplus water
reserved for the 1996 fiscal year and $.48 per 1,000 gallons of
- 17 -
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
surplus water reserved for the 1997 fiscal year, for an average
of $.54 per 1,000 gallons of surplus water reserved over the
initial four (4) year term of this contract. Should Virginia
Beach elect to exercise its option to extend the term of this
contract for either one (1) or two (2) additional years, as
provided for in subparagraph 11.1 of this contract, the water
charge shall be $.56 per 1,000 gallons of surplus water reserved
for the 1998 fiscal year and $.58 per 1,000 gallons of surplus
water reserved for the 1999 fiscal year. The fixed capacity
charge, demand charge and commodity charge shall be determined on
a cost-of-service basis as described in paragraph 6 of the Water
Services Contract using contract allocation capacities provided
for in this contract; provided, however, (i) the demand charge
shall be based on an assumed maximum hourly demand at the rate of
60 mgd, unless Norfolk can demonstrate that such demand exceeds
the rate of 60 mgd, and (ii) construction work in progress and
all facilities completed after July 1, 1991 shall be allocated to
Virginia Beach as set forth in the Water Services Contract,
rather than the contract allocation capacities. A cost of
service study and rate determination illustrating the rate
determination method to be used in this contract is attached to
this contract as Exhibit B, Tables 1-5.
- 18
413
6.2 Supplemental Demand Charge.
414
415
416
417
418
419
420
421
422
423
424
In the event that Virginia Beach's maximum hourly
demand exceeds its contract maximum hourly demand rate of 60 mgd
or the rate set forth in any notice provided for in paragraph 8,
whichever is less, Virginia Beach shall pay a supplemental demand
charge for that portion of its maximum hourly demand which
exceeds 60 mgd or the rate set forth in any notice provided for
in paragraph 8, whichever is less. The amount of the
supplemental unit demand charge shall be equal to two (2) times
the unit demand charge determined pursuant to this contract.
Sample applications of such charges are set forth in Table 6 of
Exhibit B.
425
6.3 Supplemental Water Charge.
426
427
428
429
430
431
432
433
434
435
In the event that Virginia Beach's usage exceeds the
amount set forth in any notice provided for in paragraphs 2.1 and
8, Virginia Beach shall pay a supplemental water charge for that
portion of its usage which exceeds the amount set forth in such
notice, provided, however, if the reduction is not effective at
the beginning of the year, Virginia Beach's usage shall be
adjusted for seasonal usage variations. Such seasonal water
usage variations shall be determined by averaging the comparable
water sales to Virginia Beach for the preceding years beginning
July 1, 1992, expressed as a percentage of total use. An example
- 19
436
437
438
439
440
441
442
443
444
445
446
of such adjustment is contained in Table 7 of Exhibit B. The
amount of the supplemental unit water charge shall be equal to
three (3) times the water charge set forth in subparagraph 6.1 of
this contract. The supplemental water charge will be applied
when: (i) Virginia Beach, after the date of receipt of a notice
pursuant to paragraph 8, exceeds any such reduced allowance for
the duration of such reduction; or (ii) Virginia Beach during the
entire fiscal year exceeds 10,950 mg (i.e., 30 mgd x 365) or such
other annual amount established pursuant to paragraph 2.1.
Sample applications of such a charge are set forth in Table 7 of
Exhibit B.
447
6.4 Biennial Adjustment of Rates.
448
449
450
451
452
453
454
455
456
457
458
459
Norfolk shall develop projections of rates applicable to
Virginia Beach for water sales under this contract on a biennial
basis based on a cost of service study prepared by an independent
consulting firm, of Norfolk's choice, that is recognized as
having experience and expertise in the determination and design
of cost of service water rates. The projections of rates, along
with a copy of the cost of service study, shall be submitted to
Virginia Beach not less than 120 days prior to the beginning of
the two (2) year period. Virginia Beach shall be billed monthly
for treated surplus water by Norfolk using the projected rates
applicable to water use beginning with the first day of the
applicable fiscal year and for the remainder of the two (2)
- 20 -
460
461
462
463
464
465
466
467
fiscal years. Such projections of rates, however, may be revised
at any time, upon 60 days' advance notice, during the two (2)
fiscal years by Norfolk should unexpected significant increases
or decreases in Virginia Beach's allocated portion of Norfolk's
water system costs occur during the fiscal years; however,
Norfolk shall not adjust Virginia Beach's rates more than once
during the two (2) year period unless it also adjusts rates to
its own retail customers.
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
Within four (4) months after the end of every biennial
fiscal year, Norfolk shall complete and submit to Virginia Beach
a true-up schedule of rates and annual billings, prepared by an
independent consultant of Norfolk's choice as described above,
applicable to the previous two (2) fiscal years which reflects an
allocation of costs of service based on actual cost and
experience incurred by the Norfolk water system as shown in the
audited books and records of Norfolk. Norfolk and Virginia Beach
understand and agree that Norfolk will have to develop new
accounting and operational procedures to allocate costs of
service and, until such procedures are implemented, Norfolk shall
use its best efforts in good faith to allocate costs based upon
the best available data, or upon reasonable estimates, if
necessary. Norfolk further agrees to use its best efforts in
good faith to implement proper accounting and operational
procedures which will enable Norfolk to allocate costs of service
as soon as is reasonably possible. Any resulting credits or
- 21
485
486
487
488
489
490
491
payments applicable to treated water service resulting from this
true-up shall be divided into twelve equal payments or credits to
be paid or applied during the second fiscal year. Determination
of the true-up is illustrated in Table 8 of Exhibit B. Any
challenge to the validity of the true-up must be made within six
(6) months after receipt of the true-up schedule by Virginia
Beach.
492 7.0 Payment and Billing.
493
494
495
496
497
498
499
7.1 Norfolk agrees to render a statement of charges monthly.
Payment is due upon receipt of statement and shall be from the
same sources, in the same manner and in the same priority as set
forth in paragraph 19 of the Water Services Contract. Virginia
Beach agrees to pay Norfolk the entire water charge for the 1994
fiscal year within thirty days following the execution of this
contract.
500
501
502
503
504
505
506
7.2 Virginia Beach agrees that, in the event Virginia Beach
fails to pay the charges in full within 30 days of the receipt of
a billing statement therefore, Norfolk shall be deemed to have
loaned the unpaid sum to Virginia Beach. Virginia Beach agrees
that, in the event Virginia Beach fails to pay all charges in
·
full within 30 days, Virginia Beach shall pay to Norfolk the
billed charges plus interest at the rate of .83% per month for
- 22 -
507
508
each month, or portion thereof, such billing, including accrued
prior interest charges, remains unpaid.
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
7.3 If, upon any inspection or test, any metering equipment
is found to be out of service or the percentage of inaccuracy of
any metering equipment is found to be in excess of the standards
described in subparagraph 3.5 herein, registration thereof as
well as charges for water based thereon shall be corrected, by
agreement of the parties based upon the best data available, for
a period extending back to the time when such inaccuracy began,
if such time is ascertainable and, if such time is not
ascertainable, then for a period extending back one-half (~) of
the time elapsed since the last date of test and repair, but in
no event further back than a period of six (6) months. The
amount and rates of water delivered during such period may be
estimated (i) by correcting the error, if the percentage of the
error is ascertainable by calibration tests or mathematical
calculation; or (ii) if the error is not ascertainable by
calibration tests or mathematical calculation, by estimating the
quantity and rates of delivery by reference to deliveries during
the preceding periods under similar conditions when the meter or
meters were registering accurately.
528
529
530
7.4 Virginia Beach agrees that, in the event that any
portion or all of Norfolk's water system is rendered partially or
totally non-useful or non-usable during the term of this
23 -
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
contract, by reason of some natural or other circumstance, or by
reason of Norfolk's inability to obtain or to retain any permit
required to construct, operate, maintain or expand Norfolk's
water system in conjunction with performance of this contract,
which prevents Norfolk from performing any or all of its
obligations under the contract, the payments required to be made
by Virginia Beach to Norfolk under paragraphs 6 and 7 shall
nevertheless continue to be made as though no such event had
occurred; except that (i) subject to the provisions of
subparagraph 11.2, Virginia Beach shall only pay a water charge
on the amount of water delivered to it and (ii) in the event of a
reduction in surplus water, Virginia Beach shall pay in
accordance with the notice of such reduction in surplus water as
provided in subparagraph 2.1. Norfolk agrees that it will use
its best efforts to restore its water system to full use or
usefulness by making necessary repairs or by providing adequate
replacements or by seeking in good faith and by all reasonable
legal means to obtain or to retain any such permit and to resume
the performance of its obligations as quickly as may be possible
following such an event.
551 8.0 Temporary Curtailment.
552
553
554
The parties acknowledge that facility or equipment failures
or drought problems may temporarily reduce or limit Norfolk's
ability to deliver surplus water. In the event of facility or
- 24
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
equipment failure, Norfolk shall notify Virginia Beach in advance
of a reduction in the amount of surplus water it may receive.
Virginia Beach agrees that, upon receiving such notice from
Norfolk, it shall immediately reduce its treated water demands to
the average day, maximum month, maximum day and maximum hour
limitations set forth in the notice provided by Norfolk. To
ensure that the necessary reductions do occur, Virginia Beach
agrees to institute adequate conservation measures immediately.
In the event of drought, Norfolk shall notify Virginia Beach in
advance of a reduction in the amount of surplus water it may
receive. Virginia Beach agrees that, upon receiving notice from
Norfolk, it shall within 60 days, initiate adequate conservation
measures to reduce its treated water demands to the average day,
maximum month, maximum day and maximum hour limitations set forth
in the notice provided by Norfolk. In addition, in the event of
such a reduction, under this paragraph 8 or subparagraph 2.1,
Norfolk may restrict the rate at which Virginia Beach may receive
water, using generally accepted engineerin9 and water management
practices, to ensure that the demands of Virginia Beach do not
exceed the average day, maximum month, maximum day or maximum
hour limits set forth by Norfolk in its notice.
576
577
578
In the event Norfolk's surplus water is temporarily reduced
or limited by ~acility or equipment failures Norfolk will
exercise its best efforts, consistent with good management
- 25
579
580
practices, to avoid the curtailment of water to Virginia Beach
and to alleviate the situation on a system-wide basis.
581 9.0 Force Majeure and Hold Harmless.
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
9.1 Norfolk shall not be liable to Virginia Beach for any
act, omission, or circumstances occasioned by or in consequence
of any act of God, strikes, lockouts, acts of the public enemy,
wars, blockades, insurrections, riots, acts of terrorism,
epidemics, landslides, lightning, earthquakes, fires, storms,-
floods, washouts, arrests, restraints of the rules and people,
civil disturbances, explosions, breakage or accident to machinery
or lines of pipe, the order or directive of any court or
governmental authority which has been resisted in good faith by
all reasonable legal means, and any other cause, whether of the
kind herein enumerated or otherwise, not reasonably within the
control of Norfolk and which by the exercise of due care and
diligence Norfolk is unable to prevent or overcome. Failure to
prevent or settle any strike or strikes shall not be considered
to be a matter within Norfolk's control.
597
598
599
600
601
9.2 In case of breaks in the mains, or malfunction of
pumping machinery, or other water works equipment, or the
occurrence of ~ny other event which makes it necessary
temporarily to reduce pressure or cease delivery of water to
Virginia Beach, previous notice of one (1) week will, if
- 26 -
602
603
604
605
606
607
608
practicable, be given. In no case shall any claim for damage due
to reduced water service or pressure be made by Virginia Beach,
and Virginia Beach shall hold Norfolk harmless from any third-
party suit arising from, or related to, reduced water service or
pressure on the Virginia Beach water distribution system unless
Norfolk's negligence was the cause of the reduced water service
or pressure.
609
610
611
612
613
614
9.3 Virginia Beach agrees to hold Norfolk harmless and
indemnify Norfolk against any claims or losses arising from
delivery by Norfolk of treated surplus water to Virginia Beach,
unless Norfolk's negligence or failure to comply with the
requirements of subparagraph 4.1 was the cause of the damage
which gave rise to the claim or loss.
615
616
617
9.4 Virginia Beach agrees to hold Norfolk harmless and
indemnify Norfolk from any act or omission of any representative,
agent, or employee of Virginia Beach.
618 10.0 Operations.
619
620
621
622
An advisory committee consisting of the Utilities Directors
from Norfolk and Virginia Beach and/or their respective designees
shall meet regularly to facilitate communications and day-to-day
operations necessary for the performance of this contract.
- 27 -
623 11.0 Term of Contract.
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
639
11.1 This contract shall be for a term beginning July 1,
1993, and ending when (i) the Gaston pipeline becomes fully
operational, as determined by the Water Services Contract, and
Norfolk is obligated to wheel and treat Gaston water, but subject
to the provisions of subparagraph 11.2; or (ii) June 30, 1997,
whichever is sooner. Subject to the conditions of (i) of this
subparagraph, Virginia Beach shall have the option two (2) times
to extend the term of the contract under (ii) of this
subparagraph for an additional year (that is, two (2) one (1)
year extensions), provided Virginia Beach notifies Norfolk of its
intent to extend the term of this contract at least 30 months
prior to the date upon which the term of this contract would
otherwise expire. After the termination of this contract, except
as provided in subparagraphs 11.2 and 12.3, Virginia Beach shall
not be entitled to receive any of Norfolk's surplus water under
the terms of this contract.
640
641
642
643
644
645
646
11.2 If this contract is terminated under (i) of
subparagraph 11.1, Virginia Beach shall continue to pay Norfolk
through June 30, 1997, or through such date to which this
contract has been extended under (ii) of subparagraph 11.1,
without interruption, the water charge set forth in subparagraph
6.1 based on 30 mgd of surplus water reserved (or such lesser
amount as Norfolk may fix by reason of reduction in surplus water
- 28 -
647
648
649
650
651
652
or such greater amount agreed to by Virginia Beach by reason of
increase in surplus). Virginia Beach shall be billed for and
shall pay the water charge in the manner prescribed in
subparagraphs 7.1 and 7.2. For the purpose of this subparagraph
the provisions of subparagraphs 6.1, 7.1 and 7.2 shall survive
the termination of this contract.
653 12.0 Termination by Norfolk.
654
655
12.1 Norfolk may terminate this contract only if one (1) of
the following events occurs:
656
657
658
659
660
661
662
663
664
665
666
667
a. Virginia Beach does not pay in full a statement as
provided in subparagraph 7.1 of this agreement within 120
days of receipt unless the unpaid portion of such statement
has been submitted to the dispute resolution process set
forth in subparagraph 14.6 or, the dispute resolution
process having failed to resolve the controversy regarding
the unpaid portion of such statement, such unpaid portion is
the subject of litigation between Norfolk and Virginia Beach
contesting its validity; provided, however, in all events,
the payments as demanded by Norfolk will continue to be
paid, unless and until the litigation has been concluded,
including all applicable appeals.
- 29
668
669
670
671
672
673
674
675
b. Virginia Beach has wilfully and continuously
breached any term of this contract which significantly
affects the operation of this contract. Norfolk shall
within thirty days notify Virginia Beach, in writing,
whenever Norfolk determines that Virginia Beach is in breach
of this contract and that such breach, if continued, would
constitute an event for which Norfolk could terminate this
contract.
676
677
678
679
680
681
682
683
684
685
686
687
688
12.2 In order for termination by Norfolk to become
effective, Norfolk must notify Virginia Beach that one of the
specific bases for termination referred to in subparagraph 12.1
has occurred. Termination shall be effective 60 days after such
notice is provided unless the basis for termination has been
submitted to the dispute resolution process set forth in
subparagraph 14.6, or, the dispute resolution process having
failed to resolve the controversy regarding the basis for
termination, such basis for termination is the subject of
litigation between Norfolk and Virginia Beach, in which event,
termination shall be effective 60 days after a basis for
termination has been determined in accordance with such dispute
resolution process or litigation and, if applicable, any appeals.
689
690
691
12.3 Upon termination of this contract before the Gaston
pipeline is fully operational, Virginia Beach may receive water
from Norfolk (in amounts to be determined by Norfolk) for three
- 30 -
692
693
694
695
696
697
698
699
700
701
702
703
704
(3) years after the effective date of termination, if Norfolk has
sufficient surplus water available and so long as there is no
other surplus water contract between Norfolk and Virginia Beach.
Virginia Beach agrees to pay for all such surplus water at a rate
equal to two (2) times the sum of the charges which would be
applicable under this contract, provided that the water charge
shall be two (2) times the average water charge set forth in
subparagraph 6.1 for the years preceding the termination of this
contract. Virginia Beach specifically understands and agrees
that, except as specifically stated in the first sentence of this
subparagraph, Virginia Beach shall not be entitled to receive any
water under the terms of this contract after the effective date
of termination of this contract.
705
706
707
708
709
710
711
712
If Virginia Beach receives water from Norfolk which is
not provided for under the terms of this contract or another
written contract between the parties, Virginia Beach agrees to
pay for all such water received at a rate equal to three (3)
times the sum of the charges which would be applicable under this
contract, provided that the water charge shall be three (3) times
the average water charge set forth in subparagraph 6.1 for the
years preceding the termination of this contract.
713
714
715
The parties acknowledge that the rates set forth in this
subparagraph are designed to terminate service hereunder to
Virginia Beach upon the expiration or termination of this
- 31
716
717
718
contract and are not intended to be indicative of rates which
would otherwise be established in arm's length negotiations
between a water utility and a customer.
719
720
721
722
723
724
12.4 Upon the effective date of termination, except as
provided in subparagraph 12.3 hereof, Norfolk shall have no
further obligations or responsibilities to Virginia Beach with
respect to any provision of this contract. After the termination
of this contract, Virginia Beach shall not be entitled to receive
any of Norfolk's water under this contract.
725 13.0 Termination by Virginia Beach.
726
727
728
Virginia Beach may terminate this contract only if Norfolk
has wilfully and continuously breached any term of the contract
which significantly affects the operation of this contract.
729
730
731
732
733
734
735
736
737
In order for termination by Virginia Beach to become
effective pursuant to this paragraph, Virginia Beach must notify
Norfolk. Termination shall be effective 60 days after such
notice is provided unless the basis for termination has been
submitted to the dispute resolution process set forth in
subparagraph 14.6, or, the dispute resolution process having
failed to resolve the controversy regarding the basis for
termination, such basis for termination is the subject of
litigation between Norfolk and Virginia Beach, in which event,
- 32 -
738
739
740
termination shall be effective 60 days after a basis for
termination has been determined in accordance with such dispute
resolution process or litigation and, if applicable, any appeals.
741
742
743
744
Upon the effective date of termination by Virginia Beach,
Virginia Beach shall have no further obligations or
responsibilities to Norfolk under this contract except to pay any
outstanding amounts due under this contract.
745 14.0 General Terms and Conditions.
746
747
748
749
750
751
752
14.1 Books and Records. Norfolk agrees to furnish to
Virginia Beach an annual audited financial report of the Norfolk
Department of Utilities which may be included as part of the
City's Comprehensive Annual Financial Report. Each city shall
allow the other to inspect its books and records pertaining to
the water utility systems, provided that inspections occur during
normal business hours after two (2) work days' notice.
753
754
755
756
757
758
759
14.2 Waivers. Any waiver at any time by either Norfolk or
Virginia Beach of its rights with respect to a default or breach
of this contract or with respect to any other matter arising in
connection with this contract shall not be deemed a waiver with
respect to any subsequent default or matter. Any delay short of
·
the statutory period of limitation in exerting or enforcing any
right shall not be deemed a waiver of such right.
- 33
760
761
762
763
764
765
766
767
14.3 Compensation. In the event that part or all of the
Norfolk water system is taken (voluntarily or involuntarily) by
an entity other than Norfolk and Norfolk is compensated for such
system, or Norfolk is otherwise compensated for all or part of
its water system whether by condemnation or otherwise, it is
specifically agreed that all such compensation shall inure to
Norfolk and that Virginia Beach shall have no right to or
interest in such compensation.
768
769
770
771
772
773
14.4 No Verbal Aqreement. This contract contains all
commitments and agreements of the parties with respect to the
sale and transmission of surplus water by Norfolk to Virginia
Beach, and no verbal or written commitments other than this
contract shall have any force or effect regarding these water
sales.
774
775
776
14.5 Assignment. This contract shall not be assigned or
transferred by either party without prior written consent of the
other party.
777
778
779
780
781
782
14.6 Dispute Resolution. If a dispute arises between
Norfolk and Virginia Beach under this contract, the parties shall
seek to resolve the matter by utilizing the following sequence of
mechanisms for dispute resolution before either party seeks or
·
takes legal action in a court: non-binding discussions between
the Norfolk Utilities Director and the Virginia Beach Utilities
- 34 -
783
784
785
786
787
788
789
790
791
Director and non-binding discussions between the Norfolk City
Manager and the Virginia Beach City Manager. Wherever this
contract provides that any issue or fact be determined by a
party, a consultant and/or the agreement of the parties and any
party disputes such determination or the parties cannot agree,
then, after resort to the dispute resolution process specified in
this subparagraph, either party may institute legal action to
resolve such issues in any manner provided for in law or in
equity.
792
793
794
795
796
797
798
14.7 Venue. Norfolk and Virginia Beach agree that this
contract shall be enforceable in Norfolk, Virginia, and if legal
action is necessary to enforce it, exclusive venue shall lie in
Norfolk, Virginia. If legal action is necessary, Norfolk and
Virginia Beach further agree that each city will request that the
trial judge be from outside both cities and not associated with
either city.
799
800
801
802
14.8 Contract Interpretation. In interpreting the various
provisions of this contract in a court of law, any said court
having jurisdiction shall apply the laws of the Commonwealth of
Virginia to interpret the terms and provisions of this contract.
803
804
805
14.9 Captions. The captions to the various clauses of this
·
contract are for informational purposes only and shall not alter
the substance of the terms and conditions of this contract.
- 35 -
806
807
808
809
810
811
812
813
814
815
816
817
818
14.10 Notices. Any notice required under this contract
shall be in writing and shall be sufficient and deemed provided
if delivered in person to the City Manager or mailed by United
States Certified Mail, postage prepaid, to the following
addresses:
Norfolk
City Manager
City Hall Building
Civic Center
Norfolk, Virginia 23510
Virginia Beach
City Manager
281 City Hall Municipal Center
Virginia Beach, Virginia 23456
14.11 Binding on Successors. This contract shall inure to
the benefit of and be binding upon all successors and assigns of
each of the parties hereto.
819
820
821
822
823
824
825
826
14.12 Amendment. This contract shall be amended only in
writing and signed by City Managers of Norfolk and of Virginia
Beach. No amendment or modification to this contract or any
waiver of any provision hereof shall be effective unless in
writing signed by the city managers of Norfolk and of Virginia
Beach. This contract shall be governed by, construed, and
enforced in accordance with the laws of the Commonwealth of
Virginia.
827
828
829
830
IN WITNESS WHEREOF, Norfolk has caused this contract to be
signed in its name and on its behalf by James B. Oliver, Jr.,
City Manager, and its corporate seal to be hereto affixed and
attested by its City Clerk, pursuant to Ordinance No. 37,303
- 36 -
831
832
833
834
835
836
adopted by its Council on the 22nd day of June, 1993; and
Virginia Beach has caused this contract to be signed in its name
and on its behalf by James K. Spore, City Manager, and its
corporate seal to be hereto affixed and attested by its City
Clerk, pursuant to Ordinance No. 93-2241 adopted by its Council
on the 22nd day of June, 1993.
837
838
839
840
841
842
ATTEST:
CITY OF NORFOLK
C~-ty Manage
City Clerk
843
844
845
APPROVED AS TO FORM:
City Attorney
846
847
848
APPROVED AS TO CONTENT:
Director of Utilities
849
850
851
852
853
854
ATTEST:
City Clerk
City ~~er -
37
855
856
857
APPROVED AS TO FORM:
Cit~ ~t~ ~rney '
858
859
860
T CONTENT:
APPROVED AS ~
Director of
- 38 -
EXHIBIT A
VIRGINIA BEACH MASTER METERS
NUMBER
~3
~3A
#4B
~5B
#6
~6A
~7
~8
#8.1
~8.2
#10
~10A
~10B
LOCATION
Wesleyan Drive
Wesleyan Drive
Davis Corner North
Davis Corner South
Military Highway
Military Highway
Sand Pit Station
Newtown Road
Newtown Road
Newtown Road
Northampton Blvd. & Wesleyan Dr.
Northampton Blvd. & Wesleyan Dr.
Northampton Blvd. & Wesleyan Dr.
SIZE
10"
lO"
16"
16"
l0"
10"
l0"
l0"
20"
20"
l0"
l0"
l0"
Note:
I ·
·
Meters 8, 8.1 and 8.2 are currently in design for
replacement.
This listing is based on meters in service as of 7/1/92.
TABLE I (Page ! of 2) 1G-Jun-93
Line
14o Item
!
2
3
4
5
6
7
8
9
10
!1
12
13
14
15
16
17
18
19
21
22
23
24
25
26
27
28
31
32
35
37
DIVISION OF WATER PRODUCTION
Raw Water Supply
Wells
WATER SALES CONTRACT
EXNIBIT B
TABLE 1
ALLOCATION OF OPERATION AND HAINTENANCE EXPENSE
Fiscal Year 1992 [1]
(2) (3) (4) (5) (6)
Total O&H Allocation
Operation Allocation Adjusted Of
and Of For Engineer. Allocation
Halntenance General General And Dlr Of
Expense {a) Expenses (b) Expenses Office (c) PILOT (d)
$ $ $ $
(7) (8) (9)
O&~
Adjusted
For Gen. Exp Allocable To Virginia Beach
Eng & ...............................
Dlr. Off Demand Co~nodtty
& PILOT Total Portion Portion
S $
Western Br. & Lake Prince - Hoores Bridges
Western Branch - 37th Street
Burnt Hills Reservoir
In Town Reservoirs
Total Raw Water Supply
Raw Water Pumping and Transmission
Wells
Power - Oemand 0
Power - Energy 81,141
Chemicals 0
All Other 48,603
Notto~ay/Bloclmater to Lake Prtnce
Po~r - Omnd 0
Power - Energy 416,720
Chemicals 17,206
All Other 249,612
Western Branch/L~e Prince - I~oores Bridges
Power - Demand 0
Power - Energy 355,067
Chamtcals 14,660
All Ot~er 212,683
Western Branch - 37th Street
Power - Oemand O
Power - Energy $32,600
Chemicals
All Other 319,O24
Slmonsdale
Pc~er - Demand 0
Power - Energy 182,710
Chemicals 7,544
All Other IO9,442
Total Raw Water Pumping and Transmission 2,569,002
Treatment Plants & Pumping
Moires Bridges Plant
Power - Oemand
Power - Energy
Chemicals
Sludge Disposal
All Other
Total Hoeres Bridges Plant
37th Street Plant
Pc~er - Demand
Power - Energy
Chemicals
Sludge 01sposal
All Other
Total 37th Street Plant
Total Treatment Plants & Pumping
Total Water Production
1,192 149 1,340 308 1,648 1,648 1,648 -
51,736 6,452 58,188 13,366 71.554 71,554 71,554 -
17,245 2.151 19,396 4,455 23,851 23,851 23,851 -
5.144 642 5,786 1,329 7,115 7,115 7,115 -
29,056 3.624 32,680 7,507 44,144 84,331 84,331 M,331 -
104,374 13,017 117,390 26,965 44.144 1&8,5OO 188,500 188,5OO 0
- 0 o 0 0 0
.
- 81,141 - 81,141 81,141 - 81'141
0 - 0 0 0
6:061 54.664 12:557 - 67.221 67.221 67:221
- 0 - 0 0 0
.
- 416,7~0 - 416.720 416,720 - 416'720
- 0 - 0 0 0
.
0 - 0 - -
532,600 - 532,600 - -
39:786 21.991 - - 21,991 -
358,810 82-421 * 441,231 -
0 - 0 0 0
.
182,710 - IBZ,710 18~.710 182'710
3'649' 7,544 - 7.544 7,544 7. 544
123.091 28:275 151:366
I
- 151.366 151.366 -
117.150 2,686,152 242,689 26,196 2.955,037 1.959,215 884.168 1,075,O48
0 0 - 0 0 0
o
1.223,822 1.223.822 - 1,223,$22 1.223,822 1,223'822
2,278,949 2,278,949 - 2,278,949 2,278,949 2,278.949
3.447.947 430:0013,877,947 890:793 643:759 5.412:499
5.412,499 5.412.499 -
";:;ii:;;; .... ";:;;;:;;; .... .... ";:;;;:;;; ";:;G:;;;
0 0 - 0 -
407,941 407,941 - 407,941 -
759,650 759,650 - 759,650 - -
0 0 0 - -
1.149.316 143:334 1.292.649 296:931 312:758 1.902.338 - -
2,316,906 143.3'.4 2,460.240 296,931 312.758 3.069,928 0 0 0
9,931,624 573,334 10,504,959 1,187.724 956,516 12,649.199 9,579,271 5;412,499 4,166.771
'G:;;;:;;; .... ;;;:;;; ";:;;;:i;;
TABLE ! (Page 2 of 2) 16-Jun-93
Llne
No. Item
55
~3
~4
56
~8
6o
61
62
63
64
DIVISION OF WATER DISTRIBUTION
Transmission ~alns - Vtrgtnla Beach (k)
T & 0 Mains - Other {k)
Storage
Treated Water Pumping
Peters and Installations - Virginia Bea~ (1)
Peters and Installations - Others (1)
Fire H~rants
Total Water Distribution
DIVISION OF WATER ACCOUNTS
Direct Expense - Virginia Beach
Direct Expense - Other
Total Water Accounts
GENERAL ALLOCATIONS
ENGINEERING 0IVISION
DIRECT{3R' S OFFICE
PAYNENT IN LIEU OF TAXIS (PILOT)
PAYI'IENT TO CI1~' GENERAL FUND
TOTAL OPERATION A~ MAINTENAN~ EXPENS~
lotal flaxt~nm Hour Non-coincidental Oemand- mgd
Unit {~nd Cost - $/mgd
WATER SALES CONTRACT
EXHIBIT B
TABLE 1
ALLOCATION OF OPE~TION AND MAINTENANCE EXPENSE
Fiscal Year lgg2 [1]
(1) (2) (3) (4) (S) (6) (7) (8) (9)
Total O&N Allocation Adjusted
Operation Allocation Adjusted Of For Gen Exp Allocable To Virginia Beach
and Of For Engineer Allocation Eng & ...............................
Maintenance General General And Otr Of Dtr Off Demand Commodity
Expense (al Expenses (bi Expenses Office (c) PILOT (d) & PILOT Total Portion Portion
S $ $ $ S $ S $
207.s24 2S.BB~ 231.40S 53.61S 2B7.020 ZB7.O2O 2B7.o20
1,36a.2o~ 170.632 ~,s38.~2 3sJ.da) - 1.892,32s -
71,485 8,g15 80,401 18,46g 31,804 130,673 -
84,885 10,586 95,471 21.930 29,340 146.741 - -
9.891 1,233 11o124 2.555 13.679 13'679 13'679
979oi69 122.114 1,I01,283 252.973 1.354.256 -
4O2,O24 55.137 452,161 103,865 - 556,O26 -
....................................................................................... .
3,123,187 389.499 3,512.686 806.890 61,144 4,380.720 300,699 300,699
40,CXX)
2,178,756
2.218.756
1,O93.0OO
1,761,63S
1,012.298
1,0~,000
28.751.876
40,000 9,188 - 49.188 49,18~ 49.188 -
2,178.756 500,476 - 2.679.232 - -
2.218.756 509,665 2.728.421 49.18~ 49,188 0
(i,o93,ooo) -
1,761.635 (1.761,63S) ....
1,012,298 (1,012,298) - - -
,,o&e.oeo - (l.O~8,oeo) - - -
- 5.850.000 - 5.850.0OO - -
Unit Oemand Charge at Vtrgtnta Beach Peter - S/mgd
Total Hoores 8rtdges Treated Water Output - 1,000 gal.
Unit Coam~tty Cost at Treat]merit Plant - $/1,O00 gal
Unlt Cmmaodlty Charge at Vtrginla Beach Meter - $/1,OO0 gal.
NOTES.
Iii Fiscal Year 1992 buckler is reflected for Illustration purposes
The effective date of the Sales Contract Is beginning FY 1994.
(al Col. I - Total C~M for Fiscal Year 1992.
(bi 0istrtbutlon within Divisions based on all Column I costs
otl~er than power, chemicals, and sludge disposal costs.
(c) Distribution based on all Column 3 costs other than
po~er, chemicals, and sludge disposal costs
(d) Distribution based on Table 2, Allocation of Rate Base
to above ground plant within Norfolk.
(e) Treated water demand a.t Hoores Bridges assumed for
Illustration purposes [see Note (u) on Table 2].
~02.67 (el
66,573 (fl
67,239 (gl
18,737.000 (hi
o 2798 (il
0 2826 (j)
(f) Line 58 divided by Line
(g) Llne 60 multiplied by I 01 to adjust for
treated water transmission losses
(hi A~sumed for illustration purposes.
(!) Line 58 divided by Line 62
(J) Line 63.~ltlplted by ! 0I to adjust for
treated water transmission losses.
(k) Virginia Beach allocated O&H costs based on
0CLD value of mains serving Virginia Beach
(1) VIr91nta Beach allocated 1% of meter and Installation O&H
costs as an Illustration of demand metering ma lnten~nce.
TABLE 2 (Page I of 2)
Line
No. Description
Raw Water Supply
I Wells
2 Western & Lake Prince Reservoirs
3 Burnt Hills Reservoir
4 In Town Reservoirs
5 Subtotal
Raw Water Storage & Transmission
6 BW/Nottoway to Lake Prince
7 In Town Reservoirs
8 Western Branch to 371h Street
g I,B/1.P to Hoores Brtdges
10 Subtotal
Raw Water Pumping Stations
11 Wells
12 Nottoday & Blacl~water
13 In Towll~OOFe:S Brl~ges
14 Western Branch - 371h Street
15 143/LP - Hoores Bridges
16 Sleo~sdale
17 Subtotal
lreatmnt
18 Poores Bridges Plant
19 371h Street Plant
o
Treated Water Storage
21 Otstrlbut !o~
22 Itxn'es 6rt~es Plant
23 371h Street Plant
24 Subtotal
Treated Water Trans. & 01st.
Serving VIrgtnla Beach
Other
27 Subtotal
Treated Water Puq)lng
Distribution
29 Poores Brt~ges Plant
371h Street Plant
31 Subtotal
)'eters & Installations
Virginia Beach
33 Other Than Virginia Beach
34 Subtotal
35 F ire H)~lrants
36 Water Olst. Operations Center (r)
37 Total End of Fiscal Year
41
42
43
WATER SALESO3flTRACT
EXHIBIT B
TABLE2
ALLOCATIOflOFRATEBASE Fiscal Year IC~J2 El]
(11 (2) (3) (4) (S) (6)
Existing Plant OCLI) Less Contributions (s)
(7)
HaJor
Cepttal
16.-Jun-g3
(8) (9) (1o) (111
Constructed Plant
Alloc to Virginia Notes
Vlrglnta Beach ..............
Total Beach Portion Exist. Const
Allot to Virginia Construction
Ortglnal Accu~lated Vtrglnla Beach Wark In
Cost Depreciation Total Beach Portion Progress (t) Improve
S S $ S S S S S $ $
190,297 90. f~35 74,4g0 74,4c~) 30,234 0 0 0 0 0 (a) (g)
6,013,748 1,277,933 4,208,163 4,208,163 1,709,.011 0 103,850 103,850 103.850 42.148 (a) (g)
625,39g 240.260 321,578 321,578 130.522 0 0 0 0 O (a) (g)
525,426 61,000 455.345 455,345 269.068 634,CX~ 726.950 1.360.958 1,360,958 868,088 (b) (h)
7,354,870 1,669,779 5,059,576 5,059,576 2,137,835 634,008 830,800 1,464,808 1.464,808 910,23~
3,335,390 1,216,185 2,012,262 2,012,262 816,738 1,103,381 0 1,103,~I 1,103,381 447,816 (a)
44)0,279 216,312 248,834 248,834 147,038 0 0 0 0 0 (b)
408,797 117,363 155,233 109,227 25,963 135.:90
22,059,712 5,353,074 16,147,710 1&,147:710 11,027:846 $,2S1.g6! 3,686,679 9,938,6.40 9,938:640 S,383:430 CC)
26,264,179 6,902,933 18,564,039 18,408,806 11,991,623 7,464,56g 3.712,642 11,177,211 11,042,021 '5'831'2'S6
69,121 4~.994 21.118 21,118 8.571 0 0 0 0 0 (a)
2,372,gOa 514.444 1,834,2S1 1,834,251 744,4436 0 0 0 0 0 (a)
399,151 248.752 148,363 146,363 86,487 0 0 0 0 O (b)
434,173 216,471 213.465 - 0 0 0
980,4]4 697, 74~ 26,8,743 26.8,743 183:534 809,09S 0 809,095 80g:0'95 418:260 (C)
426,589 213,674 212,915 212.915 145.407 0 0 0 0 0 (C)
.............................................................................................. ! .....
4,682,3.55 1,93a,082 2,696,855 2.483.3g0 1,168,487 80g,Og5 0 809.095 80g,095 438,260
12,9~1.399 4,663,5gO 8,248.177
8,137,324 i,926,231 6,O97,08a
21,118.723 6.589.8Z1 14,343.26S
8,246,177 4,872,741 10.155,489 4,413.629 14,569,118 14.569,118 g,292,g19
- 4,844.107 1,038,501 5,8.82.608 - -
8.246,177 4,872.741 14,g99.59G 5,45~,130 20,451,726 14,56g,118 9,292,919
(cs) (j)
1,724,370 415.796 1,308,574
1,346..557 461.430 8,85.127
927,690 66,CX38 e, GO, 78Z
3,998,617 944,135 3.O54,463
&65:127 523:300 0 0 0 - -
0 0 0 0 0
0 0 0 - -
M5,127 57..3,300 0 0 0 0 0
(e)
4.340,565 629,356 3,711.208 3,711.208 3,525.64a 4,273,309 &82,72t 5,156.03S 5.1~,035 4,~8,233
~,I~,~7 6,~,7~ 24,1~.245 ~.6~,483 5,613,~6 ~,271.~1 -
~,535,5~ 6,6~,079 27,~1,453 3,711.2~ 3,5~,~ 32,931,7~ 6,495.824 ~,427.616 5,1~,035 4,6~,233
(f)
1.3cx).825 81.533 ].2o7.]85 o o o
411,662 365,409 42,217 42:217 24:g59 168,800 2.180.852 2.3,49.652 2.349:652 1.50S:763
260,14~ 230,172 27.956 0 0 0 - -
1,972,632 677,114 1,277,359 42,217 24,959 1~8,800 2,180,852 2,349,652 2.349.652 1,505.763
(e)
59,527 23,497 36.030 36,030 36,030 0 259,625 259,625 259,625 259,625
8,105,131 3,126,218 4,971,851 0 0
8,164,658 3,149,715 5,007,881 36,030 36,030 0 259,625 259,625 259,625 259,625
766,148 448.138 318,010 - 0 0 0
- - 0 0 360,166 1,298,127 1,658,293 218.397 207,477
108,877,715 28,953,794 78.222.921 38.872,531 24,280.622 $7,368,026 20,230,000 77,598.026 35.868,751 23,343,759
Total End of Previous Fiscal Year (m)
Average (n)
Working Capital (o)
Total Rate Base
Rate of Return (p)
Annual Return (q)
lO0~ 0irect
(r) (1)
25,000,0G0
24,640,311
891,101
25,531.412
9 511%
2.428,293
Total
22,671.679 47,312.1g0
891,101
22.671.879 48.~3.291
9 511% 9 511q,
2,1S~,322 4,584,615
TABLE 2 (Page 2 of 2) ]6-Jun-g3
NATER SALES CONTRACT
NOTES'
Eli Fiscal Year 1992 budget is reflected for illustration purposes. The effective date of the Sales Contract is beginning FY 1994.
(al Existing Plant OCLD Less Contributions allocated to Virginia Beach on Norfolk Treated Water Safe Yield basis [see Notes (u) and (w)].
Virginia Beach - (30 / 0.9g)/[(7! x 0.g4)*(8 x 0 gg)]- 40.59%
(b) Existing Plant OCLD Less Contributions allocated to Virginia Beach on Haxlmum Da), basis [see Note
Virginia Beach - 45 5 / 77.0 - S9.09%
(c) Existing Plant OCLD Less Contributions allocated to Virginia Beach on )taxlmum Honth basis [see Notes (u) and
Virginia Beach - [39 8 - (3 30 x ! 3)] / 52 - 68.29%
(d) Existing Plant OCLD Less Contributions allocated to Virginia Beach on Haximum Da), basis [see Note (u)] Virginia Beach - 45 $ / 77 0 - 5g 09~
(el Existing Plant OCLD Less Contributions allocated to Virginia Beach on t~axlmum Hour basis [see Note (u)] Virginia Beach - 60 7 / 102 67 - 59 12%
(fl Existing Plant OCLD Less Contributions allocation direct to Virginia Beach Virginia Beach - gS 00%
(gl Constructed Plant allocated to Virginia Beach on Services Contract Virginia Beach - 48 S / (7g - 8 * 48 S) - 40
(h) Constructed Plant allocated to Virginia Beach on Services Contract Virginia Beach - 68 25 / 107 - 83
(il Constructed Plant Allocated to Virginia Beach on Services Contract Virginia Beach - 5g B / IZOD .fl 3 x al]- S4
(J) Constructed Plant allocated to Virginia Beach on Services Contract
Virginia Beach - 68 25 / 107 - 63 7g~
(k) Constructed Plant allocated to VIrglnla Beach on Servtces Contract
Vtrgtnta Beach - gl 0 / 142 - 64 08%
fl) Constructed Plant allocation direct to Vtrglnta Beach per Servtces Virginia Beach · 9S 00~
(m) Assumed for illustration purposes.
(n) Average of Lines 37 and 38.
(o) 12.5 percent of total Virginia Beach Demand and Cmmodlty Charges (Table 5).
(p) The t~elghted average of the embedded debt of $44,892.72! at $.g3Z9~ and the !g90-92 capital expenditures
of S77,589,000 (assumed to be debt financed at 8 0%), ls equal to 7.609~ multiplied by ! 25, or 9
(q) Line 41 mzltlplled by Line 42.
(r) Water Dist. Operations Center allocable to Vtrglnta Beach based on value of mains serving VA. Beach
(s) E~isting plant OCLI) at FY 198g.
(t) Includes plant assets capitalized in FY 1990 and FY 1991.
(u) Allocation calculations based on Sales Contract flows (m~gd). mutually agreed estimated losses not subject to change, and
estimated existing facilities limits
Location Est. Losses Avg Day ~ax Honth ~x 0ay
VA Beach Input 0 0~ 33 3
Raw Water p Pump Station 30~ 32 3
Raw Water ~ Plant B 0~ 30 7 3g 80
Treated Water ~ Plant 90~ 30 3 45 SO
Treated Water ~ ~eters lO 0~ 30 0 39 00 45 OD
Hoores Bridges Treated Water 77 00
48' Raw Water Transmission 52 OD
Safe Yield basis [see Notes fy) and (w)].
I~aximum Day basis [see Note fy)]
Haxlmum Honth basis [see Notes fy) and (w)]
Haxlmum Oay basts [see Note (v)]
Haxtmum Hour basts [see Note (v)]
Contract.
Contract Allocation Capacity
60 70 Contract Allocation Capacities.
$O O0 Contract Limits
I02 67 Engineering Estlmate
Engineering Esttmate
(v) Allocation calculations based on Services Contract flows (mgd), ~utually agreed estimated losses not subject to change, and
estimated existing facilities limits
Location Est Losses Avg 0ay Hax Honth
VA Beach Input 0 0% 50 00
Raw Water e Pump Station 3 0~ 48 SO
Raw Water ~ Plant 8 0~ 46 OD 59 80
Treated Water ~ Plant 9 0~ 45 50
Treated Water ~ I~eters lO 0% 45 00 58.50
Hoores Bridges Treated Water
48' Raw Water Transmission %00 O0
(w) Raw Water Allocation calculated based on the fo)lowing allocation
Treated Water Lake Wrlg~t
Norfolk 28 05 3 05
VA Beach 30 30 3 30
Others IS 15 ! 65
I'~x Day I~x Hour Notes
Contract Allocation Capacity
68 25 91 OD Contract Allocation Capacities
67 50 g0 00 Contract Limits
107.00 142.00 Engineering Estimate.
Engineering Estimate
of treated water safe yield at the plant
Notes
Proportlonol share of raw
water at Hoores Bridges
treatment plant
~x Hour Notes
TABLE 3 (Page ! of 2)
L ina
No Descr lpt ion
WATER SALES CONTRACT
EXHIBIT B
TAJ)LE 3
ALLDCATION OF DEPRECIATION EXPENSE Fiscal Year 1992
(11 (21 (3) (4)
Annual Allocable
Original Composite Annual To
Cost Depr Depreciation Virginia
Less Land Rate (mT Expense (n) Beach
RAW WATER SUPPLY
I Wells 190.295
2 Western & Lake Prince Reservoirs 3,997,813
3 Burnt Hills Reservoir 477.596
4 In Town Reservoirs 70.525
RAW WATER STORAGE AND TRANS.
5 BW/Nottoway to Lake Prince 3.326,64I
6 In Town Reservoirs 463.940
7 Western Branch to 371h Street 373.763
8 W~/LP to P~)ores Bridges 21,202.857
RAW WATER PUMPING STATIONS
9 Wells 69,120
10 Nottoway & Blackwater 2,368,090
11 In Town/Hoards Bridges 399,145
12 Western Branch - 371h Street 434,167
13 WI)/LP - Hoards Bridges 980.400
14 Stmonsdale
TREATMENT
15 Hoards Bridges Plant 12,970.954
16 371h Street Plant 8.130.728
TREAlED WATER STOP, AGE
17 Distribution 1.718.224
18 Hoards Bridges Plant 1.346.538
%9 371h Street Plant 927,677
TREATED WATER TRANS & OIST
20 Serving Virginia Beach 4,340,503
21 Serving Others 30.194.540
TREATED WATER PLPd)ING
22 Distribution 1.298.812
23 Hoores Bridges Plant 411.656
24 371h Street Plant 260.142
METERS
25 Virginia Beach 59,527
26 Other Than Vtrglnta Beach 8.105,016
27 FIRE HYDRANTS 766,137
28 WATER OlSl. OPERATIONS CENTER (p)
29 Subtotal 10S.281.921
RAW WATER SUPPLY
30 Wells
-
31 Western L Lake Prince Reservoirs 103,850
32 Burnt HIlls Reservoir
--
33 In Town Reservoirs 1,360,956
RAW WATER STORAGE AND TRANS
34 BW/Nottoway to Lake Prince 1,103,381
35 In Town Reservoirs
.
36 Western Branch to 371h Street I3S,190
37 14)/LP to tsoores Brtdges 9.938,640
RAW WATER PUI'LOING STATIONS
38 Wells -
39 Nottoway & Blackwater
40 In Town/Hoards Bridges -
41 Western Branch - 371h Street
--
42 WB/LP - Hoores Bridges 809,095
43 Slmonsdale
IREAT~ENT
44 Hoards Brtdges Plant 14.569,118
45 371h Street Plant 5.882.608
TREATED WATER STORAGE
46 Distribution
47 ltoores Bridges Plant
48 371h Street Plant
TREATED WATER TRANS & OIST
49 Serving Vlrgtnla Beach 5,156.035
SO Serving Others 34.271,581
TREATED WATER PUMPING
51 Distribution
52 I~oores Bridges Plant 2.349.652
53 371h Street Plant
HETERS
54 Vlrglnta Beach 259.625
55 Other Than Vtrglnia Beach
56 FIRE HYDRANTS
57 WATER DIST OPERATIONS CENTER (pT 1,65~.293
58 Subtotal 77.598.026
59 TOTAL 182.879.947
Exlstlng Plant
I 77% 3,372 3,372
0 86% 34,S43 34,543
0.79% 3,764 3,764
I 05% 741 741
1 07% 35.520 35,520
I 15% 5,329 5,329
0 49% 1.849
.
I 15% 242.993 242'993
3 29% 2.271 2.271
2 84% 67,291 67,291
I 88% 7,499 7,499
2 84% 12.329
.
1 89% 18,495 18'495
2 59% 10,305 10,305
2 32% 301,196 301.196
I 58% 128,695 -
2 81% 48.315
.
2 08% 28.024 28'024
I 53% 14,173 -
I 15~ 49.658 49.858
I 19% 359.2O6 -
3 00% 38.998
.
I 85% 7,601 7'601
2 80% 7,277 -
2.96% 1,776 1,776
2 55% 207.012 -
2 60% 19.934 -
.
I 58% 1.658.365 820,577
FY 1990-92 Capital lmproveeents (o)
16-Jun-g3
(ST
Virginia
Beach
Portion
$
14.020
438 b
3.149
165:948 (c)
27.312
4.431
7,037
177.979 (d)
o
]6:568 (el
47,365 (r)
4:494 (eT
1,776 100% OlrKt
0 (fl
501.385
0
I 0O% 13:610 13:610 8,681
I 67, 18.426 18.426 7.479 (gl
o (h
)
I 67% 2:258
] 67% 165.975 165:975 89:903 (1)
o
- 0
250% 20:227. 20:227 10:9560 II))
I 67% 243,304 243.304 155.192 (J)
I 67% 98.240
.
- o (k)
.
I 25% 64.450 64.450 61,228 (11
I 25% 428,395
2so% 58:741 s8:741 37:644
250%6,491 6,491 6.491 100% Direct
2so%4I:457 5:460 s:187
'i:i;~:;i~~97.7~, 3s3.182
2.820.978 ,.416.3o,
TABLE 3 (Page 2 of Z) ~6-~un-g3
(bt Exlstlng Plant Depreciation
Virginia Beach - 45 5 /
(ct Existing Plant Depreciation
Virginia Beach - [39 BO
(d) Existing Plant Depreciation
Virginia Beach - 45 S /
t~,TER ~LES CONTRACT
NOTES:
Et! Fiscal Year t992 budget is reflected for illustration purposes, The effective date of the Sales Contract is beginning FY lvga.
(at Existing Plant Depreciation allocated to Virginia Beach on Norfolk Treated Water Safe Yield basis [see Notes (q) and (s)].
Virginia Beach - (30 / 0.99)/[(7! x 0 94) + (8 x 0 99)] o 40 59~
allocated to Virginia Beach on ~xlmum Day basis [see Note (q)].
77.O - 59 09%
allocated to Virginia Beach on I~axtmum P~nth basis [see Notes (q) and (s)]
- (3 30 x !.3)3 / 52 - 68 29~
allocated to Virginia Beach off I~aximul Oay basis [see Note (q)]
77 0 - 59 09%
(et Existing Plant Depreciation allocated to Virginia Beach on laaxlmum Hour basis [see Note (q)].
Virginia Beach - 60 7 / 102 67 - 59.12%
(f) Existing Pla~t Depreciation allocation direct to Virginia Beach. Virginia Beach - 9S 00%
(g) Constructed Plant Depreciation allocated to Vlrglnta Beach on Virginia Beach - 48.5 / (79 - 8 + 48 5) -
(h) Constructed Plant Depreciation allocated to Virginia Beach on Virginia Beach - 68 25 / 107 -
(it Constructed Plant Depreciation allocated to Virginia Beach on Virginia Beach - Sg 8 / [100 * (1 3 x 8)] -
(J) Constructed Plant Depreciation allocated to Vtrglnla Beach on Virginia Beach - 68.25 / 107 -
(k) Constructed Plant Oeprectatton allocated to Vlrgtnta Beach on Vlrginia Beach - 9[ O I taZ -
Services Contract Safe Yteld basis [see Notes (r) and (s)]
40 59%
Services Contract ~axlmum Day basis [see Note (rtl.
63.79%
Servlces Contract HaxtmumHonth b~sls [see Notes (r) and (s)],
54 17%
Services Contract P~xlmum Oay basis [see Note (rtl.
63
Services Contract {~axlmum Hour basis [see Note (rtl
64 oat
(1) Constructed Plant Depreciation allocation direct to Virginia Beach per Services Contract Virginia Beach - 95
(mt The composite depreciation rate is derived from detailed depreciation rate schedules of the utility
the future, detailed Individual depreciation rates w111 be utilized.
(n) Net of contribution depreciation
(o) Includes construction work In progress and plant assets capitalized tn FY 1990 and FY 1991.
In actual application In
(pt Water 01st. Operations Center allocable to Vtrglnia Beach based on value of mains servtng Vlrglnta Beach.
(q) Allocation calculations based on Sales Contract flows (mgd), mutually agreed estimated losses not subject to change, and
estimated exlsttng fac lilt les limits
Location Est. Losses Avg. Day fl~x ~onth Plax Oay
VA Beach Input 0.0% 33.3
Raw Water P P~ Station 3 0% 3Z 3
Raw Water P Plant 8.0~ 30 7 39 80
Treated Water P Plant 9.0~ 30 3 45.50
Treated Water t Haters 10 0% 30 0 39.00 45 O0
Hoores Bridges Treated Water 77 O0
48' Raw Water Transmission 5Z O0
~x Hour Notes
Contract Allocation Capacity.
60.70 Contract Allocation Capacities.
60 O0 Contract Limits.
10Z.67 Engineering Esttmate
Engineering Esttmate
(r) Allocation calculations based on Services Contract flows (~gd)o mutually agreed estimated losses not subject to change, and
estimated existing facilities 11mits
Locatlon Est Losses Avg Day t~ax Honth Hex Day
VA Beach Input 00~ 50 OD
Raw Water P Pumi) Statlon 3 0% 48 SO
Raw Water P Plant 8 0% 46 OD 59 80
Treated Water P Plant 9 0% 45 50 68.25
Treated water P Peters lO 0% 45 O0 58.50 67 50
Hoores Bridges Treated Water 107 O0
48' Raw water Transmission 100 O0
I~x Hour Notes
Contract Allocation Capacity.
91 O0 Contract Allocation Capacities
g0 O0 Contract Limits
142 O0 Engineering Estimate
Engineering Estimate
(st Raw Water Allocation calculated based on the following allocation of treated water safe yield at the plant.
Treated Water Lake Wright Notes
Norfolk 28 05 3 05 Proportional share of raw
VA Beach 30 30 3 30 water at Hoores Bridges
Others 15 15 I 65 treatuent plant
Total 73 50 8 O0
TABLE 4 (Page 1 of 1) 16-Jun-93
Line
Ho.
IO
11
12
13
14
WATER SALES CONTRACT
EXHIBIT B
TABLE 4
CHARGES TO VIRGINIA BEACH
Ftscal Year lgg2 [1]
Fixed Capacity Charge:
Annual Return on Rate Base (Table 2)
Annual Depreciation Expense (Table 3)
Total Annual Fixed Capacity Charge
Monthly Payment
$4,584,615
884,566
$455. 765
Demand Charge:
Maximum Hour Demand (n~jd)
Unit Demand Charge (Table 1)
Total Annual Demand Charge
Monthly Payment
60.0
$67,239
$4,034.340
$336,195
Com~tty Charge:
Charge per Thousand Gallons of Use (Table 1)
Total Annual Conmodtty Charge:
10,950,000 Thousand Gallons (al @ $0.2826
$0.2826
$3,094,470
Water Charge:
Charge per Thousand Gallons of Use {b)
Total Annual Water Charge:
]o,gs0,000 Thousand Gallons {a} @ $0.6000
Total Annual Cost (Lines 3, 7, 10, and 12) {c)
Average Unit Cost (d}
NOTES:
(b)
(c)
(d}
$0.6000
$6.570.000
$19.167,992
$1.7505
Fiscal Year lgg2 budget is reflected for illustration purposes.
The effective date of the Sales Contract is beginning Fiscal Year lg94.
Net of deliveries to the Navy withtn Virginia Beach·
Per subparagraph 6.1, water charge ts $0.60 per 1,000 gallons in FY 1994.
Assume the same water charge for Fiscal Year 1992 illustration.
Does not include additional costs and charges which may be
approprtate, but not reflected tn thts tllustration.
Line 13 divided by metered volume of 10,950,000 thousand gallons.
Users Plant Output ~ Losses Hetered Use
~i{-it~) 7,677 ng 41.04 ~{ 6,979 mg
11.060 59.0 10.950
·
TABLE 5 (Page 1 of 1) 16-Jun-93
WATER SALES CONTRACT
EXHIBIT B
TABLE 5
ESTII~ATED ANNUAL CtIARGES TO VIRGINIA BEACH
Fiscal Year 1992 [1]
Line
No.
1
2
Computed Costs (FY 1992}:
Annual F~xed Capacity Charge (Table 4)
Annual Demand Charge (Table 4)
Con~nod~ty Charge:
10,950,000 Thousand Gallons (al @ $0.2826 (Table 4)
Water Charge:
10,950,000 Thousand Gallons (al @ $0.6000 (Table 4)
Total Annual Cost (b)
Average Unit Cost (c)
$5,469,182
4,034,340
3,094,470
6,570,000
$19.1670992
$1.7505
NOTES:
[1] Fiscal Year 1992 budget is reflected for illustration purposes.
The effective date of the Sales Contract is beginning F~scal Year 1994.
(al Net of deliveries to the Navy within Virginia Beach.
{b) Does not include additional costs and charges which may be
appropriate, but not reflected tn this illustration.
{c) Line 5 divided by metered volume of 10,950,000 thousand gallons.
Users Plant Output % Losses Hetered Use
Norfolk {Net) 7,677 n~j 41.0~ 10~ 6,979 mg
VB {30 n~jd) 11,060 mcj 59.0~ 1% 10,950 n~j
Total 18,737 n~j 100.0~ 17,929 n~j
TABLE 6 (Page 1 of 1) 16-Jun-93
WATER SALES CONTRACT
EXHIBIT B
TABLE 6
EXAMPLE APPLICATION OF SUBPARAGRAPH 6.2
Illustration 1:
Assume that, in fiscal year 1997, Virginia Beach's maximum hourly demand is
65 mgd.
Demand to which supplemental demand charge would apply equals 65 mgd minus
60 mgd, or 5 mgd.
The total supplemental demand charge would be 5 mgd at two times the unit
demand charge developed pursuant to subparagraph 6.1, as illustrated in
Exhibit B, Table 1, Line 61.
Illustration 2:
Assume that in fiscal year 1997, Virginia Beach's maximum hourly demand for
the first 9 months is 59 mgd while contract demand of 60 mgd is in place.
Furthermore, pursuant to paragraph 8, assume Norfolk reduces Virginia
Beach's allowable maximum hourly demand to 50 mgd for the remaining three
months. During the three months of reduced demand, Virginia Beach
experiences an actual demand of 54 mgd.
The supplemental demand charge would apply to 54 mgd minus 50 mgd, or 4
mgd. The total supplemental demand charge would be 4 mgd at two times the
unit demand charge developed pursuant to subparagraph 6.1.
TABLE 7 (Page 1 of 2) 16-Jun-93
WATER SALES CONTRACT
EXHIBIT B
TABLE 7
EXAMPLE APPLICATION OF SUBPARAGRAPH 6.3
Illustration 1:
Assume that in fiscal year 1997 Virginia Beach's annual average day usage
is 35 mgd and that Norfolk did not exercise (i) the provisions of
paragraphs 2.1 and 8.
A supplemental water charge would apply because (ii) in total for the year
Virginia Beach had anticipated that it could use 10,950 million gallons of
treated water (30 mgd x 365 days) but used 12,775 million gallons (35 mgd x
365 days). The number of days in fiscal year 1997 is 365.
The total supplemental water charge would be 1,825,000 thousand gallons at
three times the unit water charge developed pursuant to subparagraph 6.1.
Illustration 2:
Assume that in fiscal year 1997, Virginia Beach's average day water usage
for the first nine months was 28 mgd while contract demand of 30 mgd is in
place. Furthermore, pursuant to paragraph 8, assume Norfolk temporarily
reduces Virginia Beach's allowable water use demand to 25 mgd for the
remaining three months. During the three months of reduced water usage,
Virginia Beach experienced an actual average day use of 27 mgd.
In total for the year, Virginia Beach had anticipated that it could use
10,495 million gallons of treated water (30 mgd x 274 days + 25 mgd x 91
days) and used only 10,129 million gallons (28 mgd x 274 days + 27 mgd x
91 days). No supplemental water charge would apply.
Illustration 3:
Assume that in fiscal year 1997, Virginia Beach's average day water usage
for the first four months was 33 mgd while contract demand of 30 mgd is in
place. Furthermore, pursuant to paragraph 2.1, assume Norfolk reduces
Virginia Beach's allowable water use demand to 28 mgd for the foreseeable
future. During the eight months of reduced water usage in fiscal year
1997, Virginia Beach experienced an actual average day use of 29 mgd. A
review of Virginia Beach's monthly usage patterns for the preceding two
fiscal years indicated that, on the average, 40Z of Virginia Beach's total
annual usage occurs in the first four months of the year.
TABLE 7 (Page 2 of 2) 16-Jun-93
A supplemental water charge would apply because, although (a) in the first
four months of the fiscal year, Virginia Beach's water usage of 4,026
million gallons (33 mgd x 122 days) had not exceeded its average historical
percentage of usage of 40Z or 4,380 million gallons (30 mgd x 365 days x
0.4) for the first four months of the year; and (b) in total for the year
Virginia Beach had anticipated that it could use 10,512 million gallons of
treated water (30 mgd x 365 days x 0.4 + 28 mgd x 365 days x 0.6), Virgznia
Beach used a total of 11,073 million gallons (33 mgd x 122 days + 29 mgd x
243 days) for the fiscal year.
A supplemental water charge would apply to 561 million gallons
(11,073 mg - 10,512 mg). The total supplemental water charge would be
determined as 561,000 thousand gallons at three times the unit water charge
developed pursuant to subparagraph 6.1.
TABLE 8 (Page 1 of 1) 16-Jun-93
WATER SALES CONTRACT
EXHIBIT B
TABLE 8
EXAMPLE APPLICATION OF SUBPARAGRAPH 6.4
Assume that by the fourth month after the end of fiscal year 1995, the
second fiscal year that projected rates have been in effect, Norfolk
completes and submits to Virginia Beach the following true-up schedule
of rates and annual billings which are applicable to the prevzous two
fiscal years. The monthly true-up payment applies to fiscal year 1997.
Line
No. Computed Costs (d): EY 1994 FY 1995
! Annual Fixed Capacity Charge S9,140,974 S9,332,252
2 Annual Demand Charge $5,044,334 S5,296,551
Commodity Charge:
3 @ 10,950,000 Thousand Gallons (a)
Water Charge:
4 @ 10,950,000 Thousand Gallons (a)
5 Total A~uual Cost (b)
6 lnterest on Uorking Capital (c)
7 Nat Annual Cost
Total Billings Rendered for Service
8 During the Year
9 Overcharge (Undercharge)
10 Net Overcharge (Undercharge)
1! Monthl7 True-up Payment Due (e)
12 Average Unit Cost (f)
$3,251,091 $3,413,654
$6,570,000 $6,132,000
$24,006,399 $24,174,457
(25,923) (27,219)
$23,980,476 $24,147,238
$25,000,000 $25,000,000
$1,019,524 $852,762
- Sl,872,287
- $156,024
$2.1900 $2.2052
NOTES:
(a) Net of deliver:es co the Navy within Virginia Beach.
(b) Does not include additional costs and charges which may be
appropriate, but not reflected :n ch~s ~llustration.
(c) Annual interest rate (assumed to be 5.0 percent for chis
illustration) times 50 percent of Working Capital.
(d) Assumed for illustration purposes.
(e) Net Overcharge (Undercharge) divided by 12 months which applies
in FY 1997.
(f) Line 7 divided by metered volume of 10,950,000 thousand gallons.
Plant
Users Output Z Losses Metered Use
Norfolk ([let) 7,677 mg 61.02 10.02 6,979 mg
VB (30 mgd) 11,060 mS 59.0l 1.02 10,950 mg
Total 18,737 mg 100.01 17,929 mg
TABLE 9 (Page 1 of 2) 16-Jun-93
WATER SALES CONTRACT
EXHIBIT B
TABLE 9
EXAMPLE APPLICATION OF SUBPARAGRAPH 4.4
Assume that, in year 1995, Virginia Beach is unable to meet disinfection
by-product legal standards within a portion of its system and notifies
Norfolk of the fact. A subsequent consultant's report indicates that the
lowest total cost to the combined Norfolk/Vzrginia Beach system results in
Virginia Beach having to construct, own, operate and maintain treatment
facilities to serve the affected portion of its system.
Further assume that Virginia Beach debt finances $2.0 mill~on at 8Z for
30 years to construct the required treatment facilities which come on
line in 1997. Annual depreciation is determined to be $66,700. Current
year operation and maintenance expenditures (O&M) total $250,000 of which
$100,000 is assumed to be for power and chemical costs.
Under the terms of this agreement, Virginia Beach shall receive a credit
for the allocable portion of Virginia Beach's treatment plant costs in the
current fiscal year 1997 which is the Norfolk system's responsibility.
Virginia Beach's total treatment costs would be designated by appropriate
Norfolk treatment cost categories constztuting each Norfolk rate and charge
as follows:
Basis of Designation
$100,000 Commodity
$150,000 Demand
$250,000 Subtotal O&M
$66,700 Depreciation
$193,330 Return (a)
$260,030 Subtotal
$510,030 Total Costs
(a) Return is computed as OCLD plant times a
rate of return equal to 8~ times 1.25.
TABLE 9 (Page 2 of 2) 16-3un-93
After calculation of rates and charges, Virginia Beach (VB) would receive a
credit each year for Norfolk's allocated share of Virginia Beach's costs.
Assume Virginia Beach's demands at the meters during the fiscal year, excluding
the Navy within Virginia Beach, are 30.0 mgd and 60.0 mgd for average day and
peak hour, respectively. Maximum day allocation capacity limit is 45.5 mgd.
Accordingly, the results of the recalculation are summarized as follows:
Assumed Computed Costs:
,
.
Annual Fixed Capacity Charge (a)
Plus VB's Allocated Share of VB Depreciation:
$66,700
x 45.5 mgd =
77 mgd
Less VB's Annual Total Depreciation
$5,469,182
39,414
(66,700)
,
Plus VB's Allocated Share of VB Return:
$193,330
x 45.5 mgd =
77 mgd
Less VB's Annual Total Return
114,240
(193,330)
,
,
Annual Demand Charge (a)
Plus VB's Allocated Share of VB Demand Costs:
$15o.ooo
x 60.7 mgd -
102.67 mgd
Less VB's Annual Total Demand Costs
$4,034,340
88,682
(150,000)
.
11.
12.
Commodity Charge (a)
Plus VB's Allocated Share of VB Commodity Costs:
$1oo,ooo
x 11,060,000 Mgal (b) =
18,737,000 Mgal x
Less VB's Annual Total Commodity Costs
Total Annual Cost
$3,094,470
59,028
(100,000)
$12,389,325
13. Average Unit Cost (Line 12 / 11,060,000 Mgal)
NOTES:
$1.1202 /Mgal
(a) Computed 1992 treatment costs, for Norfolk plants serving Vzrginia
Beach and allocated to Virginza Beach prior to the addition of
Virginia Beach's treatment costs, are used as 1997 allocated costs
for illustration purposes.
(b) Mgal equals 1,000 gallons.
(Page 1 of 1) 16-Jun-93
·
WATER SALES CONTRACT
EXHIBIT B
SUPPLEMENTAL NOTES
Tables 1-9 are illustrative only. Some figures were not directly
obtainable from readily available records of the City for the
purposes of the illustration. In actual application under
contract terms, actual records should be used where available and
if not directly available, sound estimates wzll be required.
During the term of the contract, situations regarding types of
costs incurred and conditions of service are likely to change.
The illustrations should be considered to be a "l~v~ng" document
subject to ad3ustment as circumstances change.
In Table 1, power costs are broken into demand and energy portions
in anticipation that in the future purchased power may consist of
both of these elements rather than following past practice in
which all power costs are energy related.
In Table 1, sludge disposal costs are, in this illustration,
assumed to be directly commodity related. If ~n the future, a
demand element is found to ex~st, a line for such an element
should be added.
In Table 2, Note (o), the calculation represents approximately
45 days operation and maintenance expense as Virgznia Beach
responsibility for working capital.
In Table 2, Note (p), system embedded debt service cost is used as
a surrogate measure of the portion of total debt, related to
facilities used and useful in serving Virginia Beach, to be used
in the rate of return calculation. In application under contract
terms, actual records should be used where available and, if not
directly available, sound estimates will be required.