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APRIL 21, 2005 MINUTES PUB HEAR CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" ITY COUNCIL MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 HARRY E. DIEZEL, Kempsville - District 2 MARGARET L. EURE, Centerville - District I REBA S. McCLANAN, Rose Hall - District 3 RICHARD A. MADDOX, Beach - District 6 JIM REEVE, Princess Anne - District 7 PETER W SCHMIDT, At-Large RON A. VILLANUEVA, At-Large ROSEMARY WILSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 SPECIAL FORMAL SESSION CITY HALL BUILDING I 240 i COURTHOUSE DRIVE ViRGiNIA BEACH, VIRGINIA 23456-8005 PHONE: (757) 427-4303 FAX (757) 426-5669 EMAiL:Ctycncl@vbgov.com JAMES K SPORE, City Manager LESLIE L. LILLEY. City Attorney RUTH HODGES SMITH, MMC, City Clerk 21 April 2005 I. SPECIAL FORMAL SESSION - Bayside High School Auditorium - 6:00 P.M. A. CALL TO ORDER - Mayor Meyera E. Oberndor[ 1. READING OF THE MAYOR'S CALL FOR FORMAL SESSION II. ROLL CALL OF CITY COUNCIL III. PUBLIC HEARING A. BIENNIAL 2005-2006/FY 2006-07 OPERATING BUDGET and FY 2005-2006/2010-2011 CAPITAL IMPROVEMENT PROGRAM IV. ADJOURNMENT MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 21April2005 Mayor Meyera E. Oberndorf called to order the SPECIAL FORMAL SESSION of the Virginia Beach City Council re a PUBLIC HEARING for the Biennial 2005-2006/FY 2006-07 Operating Budget and FY 2005-2006/2010-2011 Capital Improvement Program on Thursday, April 21, 2005, at 6:00 P.M. in the Bayside High School Auditorium, 4960 Haygood Road. Council Members Present: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Absent: None Councilman Schmidt left at 6:30 P.M. due to a business appointment. -2- MAYOR'S CALL TO SPECIAL SESSION: ITEM # 53826 The Mayor read the CALL TO SPECIAL FORMAL SESSION: "THE HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL on Thursday, April 21, 2005, at 6:00 P.M. in the Bayside High School Auditorium, 4960 Haygood Road. The purpose of the SPECIAL FORMAL SESSION: PUBLIC HEARING: Biennial 2005-2006/FY 2006-07 Operating Budget and FY 2005-2006/2010-2011 Capital Improvement Program Sincerely, s/Meyera E. Oberndorf Mayor" The Mayor further advised Catheryn Whitesell, Director - Management Services, requested the Mayor emphasize: This PUBLIC HEARING will cover the following subjects related to the RESOURCE MANA GEMENT PLAN: Proposed FY 2005-06 and FY 2007-076 Operating Budget AND Capital Improvement Plan $ 246,366,586 $ 1,105,574,499 Issuance of General Obligation Bonds - maximum amount of $ 55,200,000 Issuance of Storm water Utility Revenue Bonds - maximum amount of $ 2,420,000 Issuance of Water and Sewer Revenue Bonds - maximum amount of $ 16,997,000 Proposed increase in Water Usage and Service Availability rates Proposed increase in Storm water Management Fees Proposed increase in Sanitary Sewer Service Fees The "proposed Real Estate Tax Rate caused by Increased Assessments" is advertised for the Public Hearing April 26, 2005, in the City Council Chamber. April 21, 2005 I City of Virgi:r1ia Beach MEYERA E. OBERNDORF MAYOR April 13, 2005 MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9000 (757) 427-4581 FAX (757) 426-5699 MOBERNDO@VBGOVCOM THE HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEA CH CITY COUNCIL on Thursday, April 21, 2005, at 6:00 P.M. in the Bayside High School Auditorium, 4960 Haygood Road. The purpose of the SPECIAL FORMAL SESSION: PUBLIC HEARING: Biennial 2005-2006/FY 2006-07 Operating Budget and FY 2005-2006/2010-1011 Capital Improvement Program Sincerely, ~ Meyera E. Oberndorf Mayor cc: Mayor and Members of City Council James K. Spore, City Manager Leslie L. Lilley, City Attorney Ruth Hodges Smith, MMC. City Clerk Charles W. Meyer, Chief Operating Officer Susan Walston, Chief of Staff David Sullivan - Chief Information Officer Diane Roche, Assistant to the City Manager for Communications and Media Relations J - 3 - Item IV. ITEM # 53827 Mayor Oberndorf DECLARED the PUBLIC HEARING: Biennial 2005-2006/FY 2006-07 Operating Budget and FY 2005-2006/2010-2011 Capital Improvement Program The following registered to speak: Chris Hendricks, President - Ocean Park Civic League, 3832 Suny Road, Phone: 464-4587, distributed statement, which is hereby made a part of the record.. Mr, Hendricks spoke in support ofth creation of Open Space at Pleasure House Point. Mr, Hendricks submitted suggestions to combine a large number of financial instruments to obtain the open space at Pleasure House Point. Barbara Yates, 318 24th Street, Phone: 428-8052, Vice President - Resort Beach Civic League, spoke in opposition to the combined Virginia Beach Middle School and requested the City reduce the requested funding of $54. 6-MILLION by $20-MILLION, thus a 1500-student school could not be constructed. Mrs, Yates requested the implementation phase of the 19'h Street Corridor Plan commence this year. Barbara Clark, 4111(Jh Street, Phone: 332-3567, President _16th and Arctic Community Association and Vice President of the Lakewood Civic Association, urged support of the first phase of the 19'h Street Corridor Plan, Judy Connors, Member - Board of Zoning Appeals, referenced her appointment to the Shore Drive Advisory Commission in 1998. March 2000, the City Council adopted the Shore Drive Corridor Plan. Ms, Connors left the area in 2001 and resigned from the Commission although maintaining Virginia Beach as her permanent residence, Ms. Connors urged funding the recommended projects developed by the Shore Drive Advisory Commission, Stephen LaFond, 400 16th Street, Phone: 422-1956, small businessman and homeowner on 16th and Arctic, Barclay Cottage Bed and Breakfast, was in support of the 19'h Street Corridor Plan. Iva Nash, 540 Cedar Lane, Phone: 486-3146, President - Virginia Beach Education Association, spoke in support of the Virginia Beach Schools Biennial 2005-2006/FY 2006-07 Operating Budget. The Virginia Beach Public Schools is the third largest non-military employer in the Hampton Roads area and serves the second largest group of children in the Commonwealth. Virginia Beach ranks below the State average in per pupil disbursements for operations, Maryanne Nixon, 607 16th Street, Phone: 428-4277, President of the Resort Beach Civic Leagues, spoke in support of the 19'h Street Corridor Plan, to include a continuous sidewalk for the safety of all citizens and visitors. Matt Falvey, represented Virginia Beach Restaurant Association, 2216 Sunvista Drive, Phone: 363-0056, spoke in support of the 19'h Street Corridor Plan Scott Seeley, 412 20th Street, Phone: 425-1761, requested rejection of the proposed Oceanfront Central Park at its current location and buying land from the homeowners who do not wish to sell, The empty city-owned land, (Dome and Library site) on 19'h Street could be utilized for this park Jill Bryne, 412 20th Street, Phone: 425-1761, spoke in opposition of the proposed Oceanfront Central Park, and not receiving notices of these proposals April 21, 2005 - 4 - Item IV. ITEM # 53827 (Continued) Louise Stone, 412 23rd Street, Phone: (703) 929-5845, distributed statement re Stop Eminent Domain of Homes for a Park. Said statement is hereby made apart of the record. Ken Jobe, represented the Council of Civic Organizations and the Croatan Civic League, 304 Croatan Road, Phone: 428-0328. The Civic Leaguesfavor a tax rate of$l, 04. Mr. Jobe expressed concern re the shortage of police, adequate salaries for teachers and affordability housing. Michael Johnson, 612 Shoreham Court, Phone: 348-1531, spoke in support of the 19'h Street Corridor Plan William Bailey, 4841 Rosecroft Street, Phone: 495-0637, represented the Virginia Beach Professional Firefighters, Mr, Bailey expressed concern re firefighter staffing (hiring 10 firefighters per year), pay compression and the pay plan, There is a shortage of paramedics, firefighters and police officers Herb Jones, 2313 Sandpiper, Phone: 721-1103, distributed Resolution in support offundingfor open space, (Requesting one penny of the tax rate be retained as a dedicated funding source to continue the open space program). This Resolution had been previously distributed in 2004 Carolyn McPherson, Executive Director - Samaritan House, Post Office Box 2400 #226, Phone: 631-0710, spoke in support of affordable housing. Ms, McPherson requested the Department of Housing and Neighborhood Preservation's budget be changed so the federal funds intended for housing not be used for administrative, general management, indirect costs and code enforcement, All of these funds should be utilized for housing. Attorney Thelma Carroll, 5903 Clear Springs Road, Phone: 420-5055, represented Empower Hampton Roads, which urged the creation of the Community Housing Trust Fund. This will assist in the provision of more housingfor workingfamilies below the $44,000 household income mark. Attorney Carroll presented a check in the amount often dollars ($10.00) to establish this fund. Robert Goodwin, Inlynnview Civic League, 909 Pillow Drive, Phone; 481-3524, distributed statement which is hereby made a part of the record. Mr. Goodwin expressed concerns re specific fund reserves, school supplies and increasedfundingfor cleaning and dredging of debris in the lakes, Sergeant Dave Squires, 5125 Clearwater Place, Phone: 474-7427, Police Officer since 1992, expressed concern re compression issues and requested a fair and reasonable pay plan. Sergeant Squires read correspondence from Vice Detective Jason Scott Peters, Charles "Chip" Condon, 333 Edwin Drive, Phone: 572-8911, President - Police Supervisors Association and a 28-year city employee and requested support of the public safety pay plan. Curtis Karvala, Chair - Lakewood Civic League Tax Relief Committee, 1529 Seafarer Lane, Phone: 481-1930, distributed a handout which is hereby made a part of the record. On page 39 of the Executive Summary, Mr. Karvala has made observations. There appears to be even more 'millions available for tax reductions. Ray Bach, President of Virginia Beach Police Benevolent Association, MeadowlarkDive, Phone: 481-5535, requested support of the public safety pay plan and compression Apri121,2005 -5- Item IV. ITEM # 53827 (Continued) Sam Jerrome, 4432 Paul Jones Lane, Phone: 219-2762, Police Officer for seventeen (17) years, requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department, Ronald Graham, 5344 Hickory Ridge, Phone: 499-9991, thirty-eight year resident, spoke in opposition to the Bus Rapid Transit (BRr), and the funds expendedfor Town Center. Mr. Graham urged increased pay for public safety and teachers James Bishop, 908 Donation Drive, Phone: 460-0369, advised real estate is a good investment, Ed Kunkel, 4128 South Plaza Trail, Phone: 340-4128, expressed concern re the $6-Million Stormwater Bond Chris Epperson, 2620 Loudon Street, Phone: 613-3055, 20-year resident and Police Officer requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department. Albert A, Pesente, 3905 Heron Place Court, Phone: 498-8574, 19-year resident, expressed dissatisfaction with city services Robert D. 0 'Connor, 240 52nd Street, Apartment A, Phone: 428-0902, advised the current Operating Budget is $1,339,000,000. The Operating Budgetfor Fiscal Year 2005-06 will be $1,563,000,000 or an increase of$164, 000, 000, an 11.7% increase. The Operating Budget for Fiscal Year 2006-07 is $1,683,000,000, thus for these three years, the increase is $284,000,000, The funding is escalating. Mr. 0 'Connor urged support of the public safety pay plan, Chris Muhitch, 820 Virginia Beach Boulevard, Phone: 219-2700, Police Officer, urged support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department Steve Miller, 820 Virginia Beach Boulevard, Phone: 291-2700, Police Officer, requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department Kort Miller, 4721 Overman Avenue, Phone: 961-7528, referenced page 27 of the Executive Summary of the Biennial 2005-2006/FY 2006-07 Operating Budget re analyzing major investment decisions before making long term cost commitments, Mr, Miller spoke in opposition to the Bus Rapid Transit (BRr) and relief of the real estate tax increase Daryl Plude, represented the Virginia Beach Fraternal Order of Police, 926 Independence Boulevard, Phone: 435-8074, requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department John E, Creekmore, 2713 West Gibbs Road, Phone: 421-7372, resident of Blackwater. Mr, Creekmore requested the real estate tax rate be $1,04, provide for the Senior citizens and support the public safety plan Darl D. Anderson, 4425 Jeanne Street, Phone: 373-1407, expressed opposition to real estate tax rate, The rate is not being increased because of the increase in assessments, John Moss, Chair- Virginia Beach TaxpayersAlliance, 4109 Richardson Road, Phone: 363-7745, expressed concern re the 60% increase in spending. The real estate tax rate should be established at $1.04 or less, April 21, 2005 - 6- Item IV. ITEM # 53827 (Continued) Lynn Sparrow, 1413 Cherry Court, Phone: 481-1415, homeowner of twenty-six years, requested real estate tax rate should be established at $1.04 or less, Lieutenant Kenny Miller, 2404 Rachel Court, Phone: 646-4145, only African American Lieutenant in the City, police officer for twenty-one years. Lieutenant Miller requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department Robert Dean, Communications Director - Virginia Beach Taxpayers Alliance, 1204 Shawn Drive, Phone: 426-6606, and 44-year resident. Mr. Dean advised producing the Cox Cable ad: "No more than $1,04 or out the door". 84.4% of the real estate tax base is comingfrom residents, The Oceanfront hotels provide 1.9%. Commercial and industrial only provide 13.7% James Johnson, 333 Edwin Drive, Phone: 572-8911, Police Officer, requested support of the public safety pay plan and the issue of compression provided by the Police Benevolent Association, the Sergeants Association and the Fire Department There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. April 21, 2005 - 7 - Item V. ADJOURNMENT ITEM # 53828 Mayor Meyera E. Oberndorf DECLARED the Special Formal City Council Session ADJOURNED at 8:10 P.M. ~~o~~~r't~-- Chief Deputy City Clerk ~:f:~~-- City Clerk Meyera E. Oberndorf Mayor City of Virginia Beach Virginia April 21, 2005