APRIL 17, 2008 SPECIAL FORMAL
CITY OF VIRGINIA BEACH
"COMMUNITY FOR A LIFETIME"
CITY COUNCIL
MAYOR MEYERA E. OBERNDORF, At-Large
VICE MAYOR LOUIS R. JONES, Bayside - Dtstrict 4
WILLIAM R. DeSTEPH, At-Large
HARRY E. D1EZEL, Kempsville - District 2
ROBERT M. DYER" Centerville - District I
BARBARA M. HENLEY, Princess Anne - District 7
RE'BA S. McCLANAN, Rose Hall - District 3
JOHN E. UHRIN, Beach District 6
RON A. VILLANUEVA, At-Large
ROSEMARY WILSON, At-Large
JAMES L. WOOD, Lynnhaven -District 5
SPECIAL FORMAL SESSION
CITY HALL BUILDING
2401 COURTHOUSE DRIVE
VIRGINIA BEACH, VIRGINIA 23456-8005
PHONE: (757) 385-4303
FAX (757) 385-5669
E-MAIL: Ctycncl@vbgov.com
CITY MANAGER - JAMES K SPORE
UTY ATTORNEY - LESUE L. UUEY
('llY nERK - RUTH HODGES SMITH, MMC
17 APRIL 2008
I.
SPECIAL FORMAL SESSION
- Green High School -
6:00 PM
A. CALL TO ORDER - Mayor Meyera E. Oberndorf
1. READING OF THE MAYOR'S CALL FOR FORMAL SESSION
B. ROLL CALL OF CITY COUNCIL
II. BUDGET PUBLIC HEARING
A. PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN
1. FY 2008-09 and 2009-2010 Operating Budget
2. FY 2008-2009 and 2009-2010 Capital Improvement Program
III. ADJOURNMENT
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MINUTES
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
17 April 2008
Vice Mayor Jones called to order the Virginia Beach City Council for the purpose of a PUBLIC
HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL YEAR
2008-09 and FISCAL YEAR 2009-2010 OPERATING BUDGET and FISCAL YEAR 2008-2009 and
FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM, Thursday, April 17, 2008, at
6:00 P.M., at Green Run High School Auditorium, 1700 Dahlia Drive.
Council Members Present:
William R. "Bill" DeSteph Harry E. Diezel, Robert M Dyer, Barbara M
Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, John E. Uhrin, Ron
A. Villanueva, Rosemary Wilson and James L. Wood
Council Members Absent:
Mayor Meyera E. Oberndorf
[Entered: 6:05 P.M' detained
with conference call with the
Governor re transportation}
April 17, 2008
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ITEM # 57516
Vice Mayor Jones read the Mayor's Call for Formal Session:
April 11, 2008
"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 17, 2008, at 6:00 PM in
the Green Run High School Auditorium, 1700 Dahlia Drive,
The purpose of this SPECIAL FORMAL SESSION:
Public Hearing:
PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN
FY 2008-2009 and 2009-2010 Operating Budget,
including proposed City Code amendments, tax rate
revisions, utility and general obligation bonds
and
FY 2008-2009 and 2009-2010 Capital Improvement
Program
Sincerely,
s/Meyera E. Oberndorf
Mayor "
April 17, 2008
City e>t Virgir1ia. Bea.ch
VBgov.com
MEYERA E. OBERNDORF
MA'l'OR
Aprilll,2008
MUNICIPAL CENTER
BUILDING 1
2401 COURTHOUSE DRIVE
VIRGINIA BEACH, VA 23456-9000
(757) 385-4581
FAX (757) 385-5699
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 callfor a SPECIAL FORMAL SESSION of the VIRGINIA
BEACH CITY COUNCIL on Thursday, April 17, 2008, at 6:00 PM in the Green Run High School
Auditorium, 1700 Dahlia Drive.
The purpose of this SPECIAL FORMAL SESSION:
Public Hearing:
PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN
FY 2008-2009 and 2009-2010 Operating Budget, including proposed City
Code amendments, tax rate revisions, utility and general obligation bonds
and
FY 2008-2009 and 2009-2010 Capital Improvement Program
Sincerely,
~
Meyera E. Oberndorf
Mayor
cc: Members of City Council
James K. Spore, City Manager
Leslie L. Lilley, City Attorney
Ruth Hodges Fraser, MMC, City Clerk
Susan D. Walston, Chief of Staff
Robert S. Herbert, Chief Development Officer
David L. Hansen, Chief of Finance and Technology
Mary Hancock, Media and Communications Administrator
Kevin Fairley, Director of Multimedia Services
Catheryn Whitesell, Director of Management Services
I i III
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PUBLIC HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL
YEAR 2008-09 and FISCAL YEAR 2009-2010 OPERATING BUDGET and FISCAL YEAR 2008-
2009 and FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM
ITEM # 57517
The Vice Mayor opened the April 17, 2008, Public Hearing with the following statement:
"The City Council hereby declares a Public Hearing open on the matters of the
proposed Fiscal Year 2008-09 Operating Budget, the proposed Fiscal Year 2008-09
Capital Improvement Program, the proposed issuance of General Obligation Bonds in
the estimated maximum amount of $68,700,000 and the proposed issuance of Water
and Sewer Revenue Bonds in the estimated maximum amount of $13,000,000, the
proposed issuance of Storm Water Utility Revenue Bonds in the estimated maximum
amount of $6,000,000, the extension of the lodging tax sunset, the increase in the
cigarette tax rate, the increase in the personal property tax rates, the increase in
storm water management fees, the increase in water and sewer fees, and administrative
fee increases or establishment, including false burglar alarms, fire inspections, yard
waste containers, abatement of nuisances, rental inspections and inoperable vehicles. "
The following registered to speak:
Thomas Coghill, 804 Surfside Avenue, Phone: 422-3425, President - Tidewater Bicycle Association,
representing the 6,000 to 7,000 serious bicycle riders in the City. Mr. Coghill expressed concern re an
ad in the Virginian Pilot encouraging individuals to ride bicycles in the most unsafe fashion possible
(without a helmet). Bicycle helmets prevent 85% of all head injuries, Mr. Coghill requested the paved
loop in the Princess Anne Commons be built, Mr. Coghill presented his Statement and a report on
"Bicycle-Motor Vehicle Accidents in the City of Virginia Beach 2004-2007", which is hereby made a
part of the record.
George Bryant, 2320 Dodd Drive, Phone: 434-0825, 40-year resident ofWolfsnare Plantation. He
explained that less spending would equal lower taxes,' expressed concern re fee increases, Many of the
current economic problems have substantially reduced the net worth of most property owners and
investors. This was brought about through an artificially inflated real estate market, Assessments
should drop back to the 2005-2006 level,
Keith Arnold, 1704 Eastborne, Phone: 404-8956. resident of Virginia Beach. current Supervisor of the
Fire and Life Safety Education Program, which is being consideredfor elimination. Since its inception
over thirty-five (35) years ago. the Life Safety Office has provided citizens and visitors of Virginia Beach
vital information on emergency procedures, poison prevention, water safety, burn prevention. fire
safety, child passenger safety and bicycle safety. Programs have been presented to citizens of all ages,
preschool through senior citizens with positive outcomes, Last year, almost 1,000 presentations were
conducted by this office to approximately 75,000 citizens. All staffmembers are nationally certified.
Constance Hollands, 1089 Kindley Lane, Phone: 498-4154, consumer of Mental Health Services through
the Department of Human Services, suffers from deep depression. Mental Health /Substance Abuse
provides medicine and other services to treat her illness. In March 2009, she will receive her Masters
in Business Administration and September 2009 will be enrolled in a program to obtain her Doctorate.
There are approximately ninety (90) persons on a waiting list for support of housing. Ms. Hollands
requested support and enhancement of the Operating Budget for the Human Services Department,
Carolyn Wood, 4421 Blackbeard Road, Phone: 692-9358, President - Virginia Beach affiliate of NAMl,
(National Alliance on Mental Illness), as well as a Member of the NAMI State Board, expressed concern
re the current hiringfreezefor Human Services. Post Traumatic Stress Disorder will lengthen this
waiting list. This is the signature illness of the Global War on Terrorism.
April 17, 2008
I I II
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PUBLIC HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL
YEAR 2008-09 and FISCAL YEAR 2009-2010 OPERATING BUDGET and FISCAL YEAR 2008-
2009 and FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM
ITEM # 57517 (Continued)
Lisa Kania, 5432 Whitehurst Avenue, Phone: 651-7187, spoke re Mental Health. Requested funding
and additional staff in the Department of Human Services, Her son is bipolar and utilizes these
services.
Lee Norton, 857 St. James Drive, Phone: 499-8336, Vice President - Old Donation Creek Waterway
Association, represented seventy-eight (78) members of waterfront properties from Pembroke Shores,
Old Donation, Saw Pen Point and Hudgins Shores, The Association has been committed to restoring
the viability of the Lynnhaven River Waterway. She expressed appreciation to Vice Mayor Jones, Jim
Hansen and Phillip Rohers for their proactive efforts in addressing the challenges facing these important
waterways, The Boat owning membership stands unanimous and united re their pledge to support the
City's boat tax initiative.
Ken Pravetz, 4305 Shrew Trail, Phone: 641-1110, President - Virginia Beach Professional Firefighters
Association, advised the proposed Operating Budget eliminates the current pay system without
implementing a new one. The Operating Budget includes $1.9-MILLION for awarding outstanding
performance. This plan assumes competence or incompetence are equally spread across the City,
This will unmotivate the workforce due to limitedfundsfor the program. Representativesfrom all
parts of the community spoke re pay compression and implementing a pay plan, The final phase
is waitingfor City Council's adoption. The plan includes a structured system to reduce compression,
isfiscally responsible and afair replacement for the Merit system, Mr. Pravetz expressed opposition
to the elimination of the Fire and Life Safety Education Program
Ray Bach, 2300 Trant Lake Drive, Phone 481-5535, President - Virginia Beach Police Benevolent
Association, Police officer for thirty (30) years, expressed concern re the health care and questioned
why the employee must absorb all the increases. The GASB 45 has decreased to approximately
$ 150-MILLION
Patrick Gough, 2831 Majestic Oak, Phone: 468-4270, spoke on behalf of the Police Supervisors
Association. A 1.5% general increase in July, with the current economy, all of the increase
will be eaten up by the cost of living and fifty (50) new fees which may be imposed during the year.
The Operating Budget includes $1.9-MILLION for awarding outstanding performance may only
pertain to approximately 20% of the employees.
Katherine Wilfong, 1406 Palermo Court, Phone: 615-3377, mother of a 31-year old son, diagnosed with
Paranoid Schizophrenia. stressed the importance for access to treatment. Ms. Wilfong requested
the vital services of the Mental Health Substance Abuse Division of Human Services,
Hank Karzun, 1320 Smith Cove, Phone: 519-9088. retired Engineer, resident of Bays ide for thirteen (13)
years. Ms. Karzun is concerned re losing the quality of life in Virginia Beach. In spite of efforts to
increase revenue through increased tourism, the tax base, property taxes have doubled during this
period. Almost all the shore lines of Lake Smith are now developed. The beach oceanfront has been
conceded to the tourists. Bayshore is full of homes and there is no parking. Norfolk has three (3) parks
on the Beach with free parking. Income for retirees is limited.
John Moss, 4109 Richardson Road, Phone: 363-7745, Virginia Beachfamilies need their morale lifted
and are under tremendous financial stress. Over the last seven (7) years, the City Council has increased
spending re taxes almost 9% annually, Your votes have been downsizing the personal living standards of
beach families. The Virginia Beach Taxpayers Alliance has petitioned City Council to further reduce the
City Manager's Budget and establish a tax rate of 80t.
April 17, 2008
i I I !II
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PUBLIC HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL
YEAR 2008-09 and FISCAL YEAR 2009-2010 OPERATING BUDGET and FISCAL YEAR 2008-
2009 and FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM
ITEM # 57517 (Continued)
Herb Verhaagen, President, Back Bay Wildlife Guild, parent organization of the Atlantic Wildfowl
Heritage Museum at the DeWitt Cottage, 1113 Atlantic Avenue, Phone: 587-7281. The Guild will be
unable to operate the Museum unless additional City funds are provided. The Guild is requesting their
City funding be increased by $24,100, for a total of $51,038.
Robert D. 0 'Connor, 204 52nd Street, Phone: 428-0902, requested information re the contemplated
headquarters hotel. Mr, 0 'Connor requested the justification for the use of the Public/Private
Education Facilities and Infrastructure Act of2002 to build a headquarters hotel, The totalfor the
Convention Center - Headquarters Complex would be $400-MILLION Mr. 0 'Connor inquired
how the extra $25-MILLION to pay for this complex would be secured each year,
John W. Wilson, Jr" 444 Goodspeed Road, Phone: 491-8953, Immediate Past President and Current
Board Member - North Virginia Beach Civic League, spoke in support of full funding of the 6rt Street
Pump Station andfunding commencing this Fall. Mr. Wilson's statement is herby made a part of the
record.
Billy Almond, 209 - 7(jh Street, Phone: 235-0731, resident of the North End, representing the Resort
Advisory Commission, requested continued support for the 6rt Street Pump Station Project, This is not
about flooding, but it is about water quality
Darl Anderson, 4425 Jeanne Street, Phone: 373-1407, spoke in opposition to the increase in personal
property taxes on businesses from $1,00 to $1.90 (almost doubling). Elimination of the BPOL tax would
be more of a benefit, Additionalfunds do not need to be expended on the tourist industry, Tourism is not
a profit to the City of Virginia Beach. $1.2-BILLION has been expended on tourism in the last few years:
new Convention Center, widening Laskin Road, as well as other new projects.
Eric Custer, 3409 Petunia Crescent, Phone: 430-2116, resident of Virginia Beach, member - Green Run
Homes Association Board of Directors, representing nearly 5,000 households and 16,000 residents,
Tropical Storm Ernesto in September 2006 exposed flaws and weaknesses in the City's Flood
Management System that directly and adversely impacted Green Run Homeowners. The City budgets
only $21.2-MILLION for stormwater management for the entire City, $15. 6-MILLION is revenue
receivedfrom storm water fees and the remaining is receivedfrom State funding.
Robert Dean, 1204 Shawn Drive Phone: 427-6606, 47-year resident of Virginia Beach. The City Page
Ad is a waste of taxpayer dollars, This information could be posted on the City's Webpage or as an
insert. Mr. Dean's statement is hereby made a part of the record Mr. Dean stated examples of
misleading information re the real estate tax burden, Mr. Dean expressed opposition to the Bridge from
the privately-owned Pembroke Mall to the privately-owned Town Center Food Court, Mr, Dean
advised, for the last five (5) years, his average real estate assessments increased 22. 6%.
Donna Morris, 208 8th Street, Phone: 491-1770, Chairman - Community Services Board. Ms. Morris
expressed appreciation for the support to the Department of Human Services and the unique multiple
partner project, Biznet Village. This support is in the way of preserving funds critical in serving the
most fragile citizens. Human Services is compacted by this year's Operating Budget constraints and
has been reduced by over $l-MILLION However, some of the new positions added are covered by
fees and other funding sources.
April 17, 2008
II I ,II
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PUBLIC HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL
YEAR 2008-09 and FISCAL YEAR 2009-2010 OPERATiNG BUDGET and FISCAL YEAR 2008-
2009 and FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM
ITEM # 57517 (Continued)
William Bailey, 4841 Rosecroft Street, Phone; 288-5761, expressed appreciation for fully supporting
the Virginia Beach School Systems' Operating Budget re raises for the teachers and the Capital
Improvement Program Projects, Mr. Bailey spoke re the Public Safety Pay Plan. In the last 2 years,
compression adjustment Phases 1 and 2 have been completed,' however there is one more step required.
The third step is projected at $3,4-MILLION The public safety plan should be put into effect and
compression ended. There are minimal raises for employees and the City is not contributing anymore
to the Health Insurance, There is no consolidation of services.
Sandy Linkous, 5225 South Lake Road, Phone: 464-1947, 40-year resident of the Bayside District, the
United States is sinking into a Recession, There is a dramatic increase in gasoline, diesel, other hydro-
carbons andfood costs, While the Federal Government has taken some action regarding the financial
crisis, little action is being taken to reduce energy costs. The City can no longer conduct business as
usual and try to satisfy the wants of the many, The Blue Ribbon Task Force gave a list ofrecommended
changes, The City has done little to decrease expenses; however plans to add new fees and dramatically
increase many existing fees,
Marlayne Castelluzzo, 5189 Stratford Chase Drive, Phone: 474-4346, spoke re the City Manager's
Budget Proposal of a 3,5-MILLION foot bridge at Town Center (Town Center Parking Garage to the
new 2-story Sun Trust Bank Building andfrom there to Pembroke Mall), The Special Tax District has
been recommended to be reducedfrom 50~ to 45~ per $100, a 10% reduction. Ms. Castelluzzo requested
the late Maurice Jackson, not only donated funds to Virginia Beach, he donated countless hours and
enlisted hundreds of others to follow his example. If ever there was a citizen whose name should appear
on a Virginia Beach venue, it is this unselfish humanitarian: "The Maurice Jackson 24th Street Park".
Chandler Scarborough. 1248 Green Garden Circle, Phone 621-4919, President - Green Run Homes
Association. Green Run is an aging community. City services have not kept pace. City Council, along
with City staff, has done much to implement the recommendations, including employee merit pay, of the
Blue Ribbon Task Force. Those recommendations included City Council working with stakeholders
to create a strategic plan clearly identifYing stakeholder priorities for the City. The needs of many
neighborhoods are not being met by this Operating Budget, He urged reexamination of budget priorities
to do more to support neighborhoods to address aging infrastructure and to increase police presence.
Chris Wiemken, 1405 Westworth Drive #104, Phone: 422-2845, representing the Green Run Community
to address the issue of security. People do not feel safe in their homes, complaining about gun fires,
break-ins, drug houses and hordes of teens, instillingfear, Neighborhood preservation and safe
community must be more than a slogan, must be backed by more resources for police and infrastructure.
Heidi Danicus, 631 Orangewood Drive, Phone: 431-2712, advocate for neighborhood andfamily.
Increasedfocus is being given to the growth of youth gangs and violence, There is talk of economic
recession and economic downturns which historically lead to increased crime. The size of the Virginia
Beach police force has not kept pace with its population growth.
James Hodges, 3548 Poppy Crescent, Phone: 427-5246, the funds utilizedfor the Pedestrian Bridgefrom
Town Center to Pembroke Mall, should be utilizedfor additional police protection. His house has been
robbed twice in thirty (30) years, It took the Police over 30 minutes to arrive.
April 17, 2008
I i III
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PUBLIC HEARING re the PROPOSED BIENNIAL RESOURCE MANAGEMENT PLAN: FISCAL
YEAR 2008-09 and FISCAL YEAR 2009-2010 OPERATING BUDGET and FISCAL YEAR 2008-
2009 and FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM
ITEM # 57517 (Continued)
Reid Greenmun, 2405 Cliff Cutter Drive, Phone: 615-4533, resident of Sawyers Lake, requested the tax
rate be lowered to 80~. In the past few years, this City Council has had multiple surpluses and "year-
after-year", he and members of the Virginia Beach Taxpayers Alliance have requested these funds be
set aside, However, this surplus was expended. Mr. Greenmun requested the priorities be reorganized.
Tax relief is needed. Mr. Greenmun requested membership in the Hampton Roads Partnership and
Hampton Roads Economic Development Alliance be eliminated and stop funding the Chamber of
Commerce. Maintain future surpluses for tax relief
William Walker, 1128 Blackburn Lane, Phone: 431-2466, current resident of Lake Trant,
referenced the appeal process re real estate assessments. Mr. Walker purchased his home in March
1999 for $412,000. In 2005, the home was assessed at $660,000 and in 2007 was raised to $923,000.
Mr. Walker distributed a statement concerning his appeal to the Board of Equalization and data
re assessments in his neighborhood and others. Said statement is hereby made a part of the record.
Beryl Gittens, 2441 Seven Kemps Road, Phone: 430-2506, Volunteer - Green Run Home Association,
urged the boat tax remain in the Operating Budget,
Pastor Joe Flores, 701 Bolero Court, Phone: 456-2007, advised great admiration for the City Manager.
The core of the problem in Green Run and safety in Virginia Beach stems from the negligence of care,
concern, attention and resources in the Lake Edward areas and those surrounding communities. This is
where gangs, drugs and violence are incubated. Pastor Flores applauded the efforts of the Green Run
Homes Association.
Linwood Branch, 720 Winwood Drive, Phone: 428-6141, supported the implementation of the three (3)
Strategic Growth areas, encouraged moving forward and communicating the importance of economic
development to the citizens.
Warner Athey, 2161 Vista Circle, Phone: 481-7866, advised the restaurant tax in Virginia Beach is
higher than New York City. Food is a necessity
There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING.
Mayor Oberndorf expressed appreciation to the speakers.
April 17, 2008
1.1 'II
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ITEM # 57518
ADJOURNMENT
Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:48 P.M.
a~__d__:__~~/~
Beverly 0. Hooks, CMC
Chief Deputy City Clerk
~~
uth Hodges Fraser, MMC
City Clerk
Meyera E. Oberndorf
Mayor
City of Virginia Beach
Virginia
April 17, 2008
- 8 -
ITEM # 57518
ADJOURNMENT
III I
Mayor Meyera E, Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:48 P.M.
(/J. <__e~_Y~!.I~
;:;:;:;:t'HOoks, CMC
Chief Deputy City Clerk
r:{:__~~~
~ges Fraser, MMC
City Clerk
-- ---,--
Meyera E.
Mayor
City of Virginia Beach
Virginia
April 17, 2008